Capital journal. (Salem, Or.) 1919-1980, 1922-06-10
MILLIONAIRE
IS SFINANCING
UNION
Organization of Cooper
ative Sales Association
Barred Before Senate
Investigators.

Washington, June 10.--organ-
ization by the United States Grain
Growers. Inc, with the assistance
OF Chicago millionaire, OF sub
Isidiary for the cooper ative market
ing OF grain was detailed by
James X. Mason OF Milton, Ind,
vice-president OF the Grain Grow
ers. in testifying today before the
special senate committee investi-
eating the alleged activities OF the
United States Grain Dealers asso-
citation to prevent cooperative
marketing legislation.
Mr.. Mason. who with other Of
ficers of the grain growers, ap-
peared at the committee s. request
with books and records in connec-
tion with the charges that the
organization had marketed no
grain for its members, said the
new subsidiary was known as the
United States Grain Growers sales
department
Backer's Name Withheld
The Chicago millionaire, whose
name he did not disclose, was en-
gagged In the sale of grain upon the
Chicago board Of trade, he said.
The millionaire, he added, is ex-
pected to loan the grain growers
$50, 900 to be used In obtaining a
membership on the Chicago board
of trade and otherwise financing
the newly created sales depart
ment. The financier, the commit
tee was further told, was willing
to add a million dollars or more to
make the undertaking success.
When mention of the Chicago
millionaire was brought into the
hearing Chairman Keyes asked:
"Will you give the committee
his namef"
II very much prefer not to do
So" replied Mr.. Mason, but will
do so II the committee insists"
Under the circumstances then,
the committee will not insist"
Chairman Keyes said, and no fur-
ther attempt was made to obtain
the name of the chairman.
Profits LiQuidate Debt.
The witness explained that the
sales department would handle the
grain OF all members of the grow
ers' organization which the mem
bers by contract are to deliver to
the parent organization for per-
iod Of five years. The parent or
ganization, Will, it was stated, re-
tain control of the common stock
of the sales corporation and por-
tion OF the commissions earned by
the sales corporation will be de-
voted to liquidate its indebtedness
TO the Chicago backer for the mon
ey he may advance.
The grain growers on April 80.
according to Mr.. Mason and Will
liam g. Eckhardt, retiring treas
urer Of the corporation, had a de-
flcit OF st29,267, an increase OF
indebtedness since its convention
at Chicago In March OF about $23,-
900.
The corporation membership is
increasing at the rate of about
$500 week. II had received
from membership dues up to the
time of the convention s4S6.310,
and had Incurred up TO that time
Liabilities totalling s5s9,456.
Finances Explained.
The total current assets were
placed by Mr.. Eckhart at $21s,-
033 and the total current liabili-
ties at $338,080. The association
has contracts with It's members,
he stated. to market approximate
ly 100, 100000 bushels OF grain.
Both witnesses expressed the opin-
ion that as soon as the sales de-
partment started operations Il
would be able In ten or eleven
months to wipe cut the Indebted
ness.
The sales department was de-
cided upon, the committee was
told to meet the objections OF
grain exchanges to the pro-rating
Of commissions among members.
AS explained, It is planned by the
parent corporation to keep the
profits derived from the sales corr
poration, in part. In the eonstruc-
tion Of elevators and in other in
which may be con-
sldered desirable.
DIITu erTe clYTu unMrp