The Omaha morning bee. [volume] (Omaha [Neb.]) 1922-1927, 1923-11-08
Grain Man
on Stand in
Libel Suit
Former u. S. Grain Growers
Treasurer Denies Extrav.
agance as Claimed in
Published Article.


ages dSdl1Sl IlOl. d. Y. It inCy Vi tiit
agricultural college and the Nebraska
Farm Bureau federation, in the con-
nection with the publication by the
federation of an article which Eek
hardt claims is defamatory, again
took the stand when federal court
convened here this morning.
- Eckhardt, at one time treasurer of
the U. S. Grain Growers, Inc, read
to the court extracts from the min
utes of the meetings of the informa-
ton and organization departments OF
the organization which tended to
show that all expenditures hab been
authorized by the committees and
that he, instead OF showing extrava-
gance as has ben charged, was op-
posed to lavish advertising pro-
gram.
The records show that in April,
1921. an advertising expenditure in
farm papers to the amount Of $12,049
was authorized. and in July s56,O00
for display space in national farm
publications. Later a campaign in
county papers was taken under ad-
visement and an estimated cost of
the campaign submitted to the In
formation department.
Claims Credit Destroyed.
Following the reading of the min.
ltes. Eckhardt, under examination
by his counsel, declared he had been
unable to obtain employment since
the publication Of the article. where
as. previous to the publication. he al.
ways had more than one place Anx-
ious for his services, and that now
there was no one making him an Of
Ter. He further stated that his credit
is practically destroyed.
Crossexamined, by counsel for the
defendants, he said the seed corn ad-
ministration of Illinois, which he had
headed during the war, had made q
profit of s10S.000 on a working CAPT.
: tai Of 81 ,250,0 900, but that q portion
of this profit had come from sales
of seed corn to the federal govern
lrs4nt as well as to the farmers. He
declared there had been no intention
Of the administration TO make 4 pro-
fit, and that it had sold corn on as
small margin as the administration
deemed advisable.
There was also read into the min
utes of the court an account of a dis
cussion between officials of the u.
s. Grain Growers relative to their
salaries, in which 1t was shown that
.Eckhardt was opposed to the pay
ment Of large sums, he declaring "it
would be a thousand times better II
4s,ff rrfxr ,t<... .
was his contention that IL large sal
aries were paid It would furnish enc
mics of the organization with ma
terial for attack. The records show
that counsel for the organization was
being paid $4,000 year and it was
suggested at the discussion that the
same amount be given to the officers.
Illinois Banker Testifies.
Counsel for the defendants having
concluded his cross-examination Of
Eckhardt. r. j. Book, banker of De
He stated that he had long been in
terested in farm organization work
and was a close friend of Eckhardt.
He was an associate with Eckhardt
in the formation OF the De Kalb ag
ricultural association and said that
Eckhardt had been able to borrow
money to carry on the association
work on the knowledge of bankers Of
Eckhardt's ability to make good.
Asked what was Eckhardt's stand
ing in the community following the
publication of the article written by
Professor Filley. he said that 1t was
lessened," but he could
f%S say that this change was en-
tirely due to the article Counsel for
Filley asked what factors. other than
the article, might have contributed to
this change in attitude toward Eek
hardt. Mr. Book said it might have
been due to the difficulties Of the ".
S. Grain Growers, following the con-
vention in March. 1922. at which
Eckhardt failed OF reelection as
treasurer.
He emphatically declared that Eek
hardt's credit had been impaired and
admitted that his bank carried notes
signed by Eckhardt which bank ex-
aminers had questioned and stated
were not good paper"
Claim Standing Injured.
Eugene ID. Funk OF Bloomington.
ILL.,, was then called and testified
that he had known Eckhardt for 20
years and had always had a high re.
gard for his ability as an organizer
and business executive. Questioned
regarding the Filley article, he said
he had not cad IT, but he had heard
IL discussed both In Illinois and else
where. In his opinion, following the
publication Of the article. Eckhardt
would not have been able to secure
ability to handle large sums Of
a position of trust, as his honesty and
money had been attacked.
Council for the defendants demand
ed IL the article had been solely re-
sponsibe for the position OF which
Eckhardt now finds himself. and Mr..
Funk said he could not so declare de.
finitely. Asked what other contribute
ing factors there might be, he declared
he was unable to state, as he had not
been in position TO closely follow
vsfe history OF the grain growers prior
to August, 1922, when he was elected
a member of the board of directors.
Fl. N. owen of Minneapolis, editor Of
the Farmstock and Hog, was the