The Bismarck tribune. [volume] (Bismarck, N.D.) 1916-current, 1930-09-29
BOARD OF TRADE
HEAD IS WITNESS
BEFORE PROBERS
Tells Committee Investigating
Communists His View on
Wheat Sales
SAYS DEALS NOT HEAVY
Sees No Reason Why Russian
Government Should Not
Deal in Chicago Market
SAYS DEALS NOT HEAVY

Chicago. Sept. 20.-R)-President
John A. Bunnell Of the Chicago
Board of Trade today told the spe-
cial congressional committee investi-
eating communist propaganda that
short : selling on the Chicago ex-
change by Russia was q hedging OPP
GRAFTON and not q gamble.
Bunnell was asked point blank by
Representative John F. Nelson Of
Maine: why shouldn't the Russian
government hedge on the Chicago
market?"
II can give no reason why they
shouldn't" he answered.
He was then asked why the Board
Of Trades business conduct commit
tee investigated the short-selling, and
he answered that 1t was unusal.
III you had known Of the TRANSACT
tions would you have taken steps to
stop them?" Nelson asked.
mot necessarily" replied Bunnell.
"the selling Of 100000 bushels of
wheat in three days by one client was
not q particularly heavy transaction"
He admitted, however. that under a
falling market. such as the exchange
has recently experienced. the trans
actions would have a tendency to de-
press prices.
Net Barred ny Rules
Congressman Edward E. Esllck OF
Tennessee asked II there were any
rules prohibiting foreign nations
from dealing on the exchange. Bun
nell said he knew Of none.
Brokers were within their rights to
accept such commissions as those of
the soviet government. he said. add
ing that similar transaction have
been made by Canadian and Argen-
tine traders. He knew of no deals by
the Canadian or Argentine govern
ments, however.
Bunnell was the first witness be-
fore the Chicago hearing Of the COM
mittee, which is headed by Repre-
sentative Hamilton Fish. Jr.. OF New
York. The investigation grew out OF
charges by Secretary Of Agriculture
Arthur M. Hyde that Russia sold
wheat short in order to depress
prices.
The business conduct committee Of
the Board Of Trade, investigating the
same charges, adopted q rule forbid
ding foreign governments from such
transactions.
Bunnell told the committee that II
the Russian government today bought
In the wheat 1t has sold short, the
profit would be approximately $685.
600, since the market has declined
about Z or 8 cents since the original
transaction.
Bunnell said It would have been
impossible for Russia actually to de-
liver the wheat in the United States.
May Not BE Filler
"Then 50 far as this transaction
was concerned, Russia was merely
taking q flier In the market?" Rep.
Nelson asked him.
Not necessarily" Bunnell said. 1T
may have been q hedging transac-
ton to protect cash wheat 1t intended
to sell in other markets."
Joseph w. Badenoch. chairman Of
the boards committee on business
conduct. said his committee had salts
fled itself that Russia's wheat sales
In the Chicago futures market were
not made to depress the market but
to hedge its cash wheat.
The directors Of the board Of trade.
investigating the charges. resolved to
prohibit sales Of grain futures by for
eign governments. Their action was
rebuked Saturday by Samuel p. Ar
not. former board president, In .
statement asserting the directors
CONTINUED on page seven)