The Washington times., 1920-03-06
CAPITAL STIRRED
BY GRAIN CHARGES
Barnes Promises Complete List
OF Officials Said to Be Max
ing Private Profits.

Capitol circles today were agos
over the revelation by Julius IL.
Barnes. president OF the United States
Grain Corporation. In his testimony
before the House Rules Committee
yesterday. that officials OF the cor
poration are retaining their financial
Interests In grain and milling con-
Germs. Barnes made this startling
admission while testifying In connee-
ton with the pending $bO.OOO.OOO Eu-
ropean food relief bill.
Aarnes' admission was a distinct
surprise In view OF the statement
recently issued from his office that
all vice. presidents OF the corpora
ton were compelled to take an oath
to relinquish all grain connections
The admission likewise Is CONSIDER
ed as highly Significant In view OF
the charge In the Spokane Federal
grand jury report that by reason or
his connection with the United states
Grain Corporation he (Houseri has
been able to manipulate and operate
them (grain and milling concerns) to
an immense profit to himself and as
sociates."
Promises List of Nanes.
Barnes named Max II. Houser, A.
vice president OF the corporation as
one example OF its officials said 10
be making private profits while serv-
Ing In Government office. AT the
request OF the committee he prov
Used to supply a complete list of such
officials among whom. he said. are
some of the other vice presidents and
regional directors.
Barnes appearance before the COM
mittee was unexpected. 1t had been
planned to have him testify later
but when II was learned that he was
in the city today Chairman Campbell
called him Immediately.
Barnes told the committee that he
had asked the Department of Justice
to make an investigation of the Spo-
kane grand july report to ASCERTAIN
whether II was fair or not. Immedi-
ateiy on seeing the report. he de-
clared. he went to Attorney General
Palmer and asked for the investiga-
ton, stating that II was grievaus
wrong IL IL was not true. He has had
no reply as yet as to the results Of
his request in the department.
Barnes interest in the European
food relief bill. 1t was brought out,
is based on a desire to unload 5000
900 barrels of lower grade fiour that
the Grain Corporation now has on
hand and cannot dispose of in the
United States. This flour has been on
hand for Ave months and Is in danger
Of spelling with the coming OF warm
weather.
Barnes first denied any vice presi-
dent or regional director of the Grain
Corporation had engaged in the grain
business" But when the Spokane
grand jury's charge was called to his
attention. he sought to explain Hou-
ser's position in this way:
"Houser could not withdraw his
capital investment from the grain
and milling companies, but several all
active connection with them. In ad-
dition, Barnes asserted, Houser gave
away to charity all of his profits in
these concerns over 8 per cent"
The grain corporation head added
that REIMBURSEMENT OF the grain con-
nections was voluntary on the part
OF the officials of the corporation and
that there was mo legal requirement
that they should do so.
Asked il there were any other vice.
presidents OF the corporation who en-
tered into an arrangement to turn
over their profits to charity, Mr..
Barnes said he did not recall.
Congressman Johnson. Republican.
OF South Dakota asked:
did any of them retain their stock
IN grain anu mining companies
81 think So"
"Who were they"
81 can't recall"
Details Are Requested.
Barnes then explained that these
officials of the Grain Corporation en-
tered into the same arrangement as
Mr.. Houser for the donation OF their
excess profits to charity.
On motion Of Mr.. johnson, Barnes
was requested to have Houser file
with the committee a statement OF
his profits over 6 per cent Barnes
was also requested to have prepared
for the committee tn names Of all Of
ficials of the Grain Corporation who
retained their interests in grain and
milling companies; the extent of their
interests in these concerns: the
amounts OF their profits. and the
amounts they donated TO charity.
Barnes promised to supply this in
formation.
The 100000 Central European
relief fund bill was sent back to the
Ways and Means Committee for fur
Their consideration by the House
Rules Committee today. The Ways
and Means Committee will ascertain
from Barner whether any legislation
is necessary in order to enable him to
sell on credits to Poland. Austria and
A rmenia the soft wheat -four now
held as surplus by the Grain Corpor-
alton.