Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1920-03-03
A Serious Question Is Raised

Senator Fernald has called for
Congressional investigation of the
United States Grain Corporation,
saying that if reports concerning it
are true "it ought to be indicted for
grand larceny
Attorney General Palmer is now an
avowed candidate for Democratic
nomination as President and 50 of
course a very busy man. especially
aS he is scarcely refreshed from his
hQrculean efforts TO reduce the cost
Of living In this he received the as
>istance Of d virtual embargo on our
food products by European countries
- possibly he will have the strength
10 take up this proposed quest as to
what actually enters into the price OF
flour.
The federal grand jury at Spokane
makes lengthy report from which
the following is taken:-
The majority of the mills in the
northwest arc owned by J. half dozen
concerns and each in turn has a grain
company. which is differed and operated
ny the men who own the milling con-
Germs.
r rom great mass Of testimony
presented before the grand jury we be-
lievc that S. per cent of the 1919 wheat
crop of this State, estimated at 42.GG-
30 bushels, went into the hands of these
hAlf dozen grain commands and
purchased prior to October Is, before
any material advance in price.
The banks Of this State arc honey
combcd with warehouse receipts. Spo-
kane banks at one time were carrying
100000 worth of warehouse receipts
and it is usual to find that small coun-
Try bank has loaned 100000 on wheat
receipts. Having bought virtually all Of
Washington in. these grain companies
have been able to advance the price by
sales to each other and through mani
pulations Of the grain market conferred
at Minneapolis and by other methods.
wheat was purchased around 3207. the
grain companies are selling the wheat
to their own milling concerns at the
prevailing market price, which. at pres
ent. Is from g to $40 per bushel for
serting the right to manufacture -four
on the basis Of the price paid for wheat
"A price which is the result OF their
own acts OF manipulation.
The BY products OF dour. bran and
shosts are = necessary food for dairy
cattle and the prices now demanded
for thoee byproducts mean destruction
Of the dairy industry.
Cndef regulations existing In 1913.
mnleEo were prohibited from making
moro than 3 cents . ton on mill feeds:
. fair price On carload lots was 6xed
By th1 United Stats feod administrator
are ssllinS in Spokans II II Der ton,
carload lots, and 80 at coast points,
"fhs Pacific Grain O., the successor
Of the NJ H Housef Grain Co., the, Pa
cihc Coast Elevator Co. ana the PUGET
Sound Warehouse and Elevator CO. arc
owned and operated IN connection With
headquarters ct Portland. Orc.
These corporations Were owned BY
NJ. II. Houser,- vice president Of tho
Southwestern district. xt the time he
becanae vice president, he made some
kind OF . transfer OF his interests In
these concerns. ana does not, at this
INF :p ocrr: - o Sae the on GIFTED state,
Grain Corporation for the northwestern
district and the ofices Of the above
nnned, being located in building
owned by n. II. Houser in Portland.
ore. 1t IL, by reason thereof, the belief
OF the grand jurors that he, Houser. Ii
The real party in interest In the milling
that by reason Of his connection with
The United States Grain Corporation. he
mas been able to manipulate and oper-
aye them to an immense profit to him
s"if and associates.
To Illustrate any concerted plan Of