Mr. MULLOY. I assume at least as stock of No. 1 Hard wheat was credited with that amount?

Mr. GUINANE. You knew the price on that?

Mr. MULLOY. The trade was made between Mr. Thornton and Bunge of New York, not with me.

Mr. GUINANE. But you knew it was about 9 or 10 cents under the regular market price?

Mr. MULLOY. I didn't look up the market on the day of the transaction.

Mr. GUINANE. Do you know as a matter of fact that any wheat from the elevator passed to Bunge other than a credit account?

Mr. MULLOY. Mr. Guinane, it has been brought out in testimony, wheat of like kind was commingled, so there was no physical transaction until we loaded the wheat out on vessel.

Mr. GUINANE. You say you handled a lot of this Canadian wheat for export?

Mr. MULLOY. Yes, sir.

Mr. GUINANE. Why was duty paid at Duluth and Minneapolis if it was for export?

Mr. MULLOY. I am not familiar with the exports of wheat; I don't know about that. I have never exported a bushel of wheat.

Mr. GUINANE. Did it strike you as funny duty was paid on that wheat for consumption entry in the United States when there was no reason for it, if the wheat was going to be exported?

Mr. MULLOY. Mr. Guinane, I cannot answer that because I am totally unfamiliar with exports of wheat other than I knew we had a small quota with Canada. I do not know the mechanics.

Mr. GUINANE. Senator, if you have no further questions, I have no further questions right now.

Mr. STANTON. Duty on this wheat would have been over, for over a million bushels, that would have been something over $75,000 duty, according to my calculations. Is it customary for Bunge to pay sums of money like $75,000 or more where there is no need to pay it?

Mr. MULLOY. I wouldn't think so.

Mr. STANTON. You have no idea what the reason was they would pay it?

Mr. MULLOY. All I can say is I am not familiar with that transaction prior to the time I bought it from Minneapolis.

Mr. STANTON. Do you know this Sample grade wheat you shipped to Galveston was to be mixed off with wheat belonging to others as well as Bunge?

Mr. MULLOY. No, sir.

Mr. GUINANE. Mr. Mulloy, when did this conversation with your New York office of Bunge first take place concerning the shipment of wheat to Galveston?

Mr. MULLOY. You are speaking of the spring wheat?

Mr. GUINANE. The spring wheat.

Mr. MULLOY. I would say it was probably in March of 1952; however, I cannot be absolutely accurate on that.

Mr. GUINANE. About March of 1952?

Mr. MULLOY. That's right.

Mr. GUINANE. I want to show you a photostatic copy of a piece of paper here and ask you to read it and identify it and tell us what it is.

Mr. MULLOY. It's a purchase contract.

Mr. GUINANE. Speak a little louder, please.

Mr. MULLOY. It's a purchase contract that the Kansas City office has made from Bunge of Minneapolis of 50,000 bushels of Sample grade Northern Spring wheat at $2.15 a bushel delivered, Mobile, Ala.

Mr. GUINANE. And is there any other reading on there?

Mr. MULLOY (reading):

Official grades and official rates, shipment quick, bill to us at Mobile, Ala., care of Makley Export Corp. for the Alabama Grain Elevator, you to furnish extra copy of the extra bills of lading, guaranteed not tough or condemned.

Mr. GUINANE. Turn over to the next photostat, please.

Mr. MULLOY. This is a purchase dated May 10, 1952, purchased from Bunge Corp., Minneapolis, 80,000 bushels of Sample grade Northern Spring wheat at $2.35 a bushel, delivered Galveston for export. There is a notation on there:

This wheat grown in USA, official grades, official weights, ship to us at Galveston, care Stone Forwarding Co., for Galveston elevator B; please furnish extra copy of bill of lading, we to furnish permit.

Mr. GUINANE. Now, that statement "grown in the USA," that appears in the other photostat that you didn't read?

Mr. MULLOY. It is scratched out there.

Mr. GUINANE. Who scratched that out?

Mr. MULLOY. I don't know.

Mr. GUINANE. Who put it on.

Mr. MULLOY. Someone in my office in Kansas City.
Mr. GUINANE. Did you put it on yourself?

Mr. MULLOY. No, sir.

Mr. GUINANE. Why was that put on when you knew this was Canadian frost-damaged wheat?

Mr. MULLOY. Because it's a standard form there to put it on everything.

Mr. GUINANE. A standard form to notify a purchaser he is buying good United States wheat to go under the international wheat program? Mr. MULLOY. No, sir; it doesn't go on our sales. This is purchases. Mr. GUINANE. I would like to offer these for the record, sir. The CHAIRMAN. It will be made a part of the record. (The documents referred to above are as follows:)

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