Omaha daily bee., 1922-06-13
Burton F. Hales
Revealed Backer
Of Grain Growers
Admits He's Chicago Capital.
ist Named q, Washington
Hearins-Identi ation
Creates Sensation.

Chicago, June le,-(By A. P)-
The Chicago capitalist who WAS said
by James X. Mason Of Milton. Ind.
in testimony before the special senate
committee investigating the Omitted
States Grain Growers. Inc, to be
willing TO spend 81 !000, 900 in promot-
ing . sales department for the grain
growers. Is Burton r. Haies, q
wealthy member OF the board OF
trade.
Mr.. Hales readily admitted TO an
Associated Press representative TO.
day that he was the man referred
to by Mr.. Mason. who in giving his
testimony Saturday at Washington
refused 10 identity the prospective
benefactor OF the subsidiary planned
to sell the grain contracted by the
United States Grain Growers. Inc.
Mr.. Hales said his nephew. q. w.
Halcs, would assist him in any fl
nancial aid given the sales plan.
Creates Sensation.
Mr.. Mason's testimony-that q
board OF trade man was willing to
help finance the cooperative organi-
ration which is looked upon by big
traders as inimical to their interests
created a sensation in financial cir.
cles here, but the identification Of
Mr.. Hales created even greater sur
prise, for the guesscs as to the iden-
tity OF the man had not included Mr..
Hales.
Mr.. Hales said that the subject OF
. sales department for the grain
growers still was pending and that
he did not know just what would
come OF his offer. He would not 60
into details a. to his reasons for be.
ing willing to back the proposition.
Mr.. Hales is extremely active de-
spite his 80 years and is known
around the financial district as
fighter.
Broker in Many Lines.
He fully confirmed all of Mr..
Mason's testimony concerning the
plan, saying that he had agreed to
advance $4,000 whenever it was
wanted as starter, Mr.. Hales said
he did not remember just how he
became interested in the idea. add
ing that he presumed some one ap-
preached me on it as 4 good busi-
ness proposition and / took it up"
Mr.. Hales is a broker in many
lines, but chiefly in grain, his firm
owning many elevators. He said
his nephew, G. w. Hales, also had
become interested in the grain grow
ers' proposed sales department, pri-
marily from an investment stand
point.
No application for a membership
on the grain exchange in the in
terest OF the United States Gram
Growers, Inc, has been made to
the directors Of the board of trade
BY Mr.. Hale or "any other person."
John R. Mauff, secretary of the
board, said today.
Disagreement between the Board
OF Trade and the United States Grain
Growers, Inc, over the terms of
veloped into struggle involving the
agricultural bloc in congress and the
United States supreme court center
ing recently around the supreme
court decision holding unenforceable
several sections of the futures trad
ing act, known as the Capper- -Tincher
law.
The board has contended that CO.
operative organizations seeking seats
on the board were unwilling to COM
ply with the rules Of the exchange,
chiefly the provisions against rebat-
ing Of commissions.
Discussion Lively.
Announcement Of specific plans for
the purchase of seat by the grain
growers has precipitated lively dis
cussion in grain circles as to the
boards probable action on such an
application.
Contracts for handling approxi-
mately 100000 bushels Of wheat
have been made, it is said, through
the grain growers proposed selling
organization.
Mr.. Mason's announcement Satur-
day was pronounced immature at the
organizations headquarters today,
where it was said conferences had
been in progress for some time on
the selling organization with various
people interested in grain trade. II
is understood the grain growers will
attempt to handle at least part of
this seasons crop for their members
if they secure seat on the exchange.
Mr.. Hales" firm controls elevator
capacity totaling 100000 bushels at
Chicago and 100000 bushels at
Minneapolis, it is stated, making the
combinations one Of the largest on
the board if present plans are per-
fected.
Brush pie over with sweet milk
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