Evening star. [volume] (Washington, D.C.) 1854-1972, 1930-09-22
FISH ORDERS PROBE
OF SOVIET WHEAT
House Communist Committee
/. Calls New York Brokers.
Hyde Delays Action.
Continued From First page3

Continued From First Page)
| themselves, but he said it was his duty
| to see that American institutions were
regulated to prevent them.
Before leaving yesterday on brief
trip to Michigan, Secretary Hyde said
investigation of the Russian wheat
| transactions showed a total of $780,
900 bushels had been sold short during
a period of four days by the All Russian
Textile Syndicate. During the period,
he said, wheat prices were depressed 5
cents.
Further Probe Planned.
He indicated further investigation
would be made of the Russian deals
by the department on the strength Of a
statement by E. " Belitzky, president
of the textile syndicate. that the opera
tons had extended over a period of
months.
Commenting on the claim that the
short sales constituted legitimate hedg-
ing on cash sales in other markets,
Hyde was sharply critical of Russian
expectation of wheat at a time when
that government, he said, ''is rationing
its people and doing out food on food
cards"
1T is not my province" he added,
ito pass Judgment upon policies of a
foreign government. If they elect to
sell wheat abroad at time when they
find it necessary TO ration their own
people, and to shoot men for forging
food cards, that is their business. Nor
is 1t within my power to discern their
motives in bearing American markets.
But 1t is my province and my duty
to expose such transactions and to in
Sist that American institutions be so
regulated as to make such transactions
impossible. I hope the futures ex-
changes of this country on their own
initiative will have sufficient foresight
and public spirit to make such changes
IN their rules as may be necessary"
May Visit Chicago.
Hyde said the Russian sales probably
were not responsible for all of the g.
cent drop during the four days studied.
He maintained, however, that they con-
tributed greatly to bear psychology
which depressed "a market which was
trying to rise" The Secretary may ex-
tend his trip to Chicago to confer some
time this week with officials of the
Board of Trade.
In a formal statement yesterday the
cabinet member quoted Belitzky as
saying that "Mr. Hyde's estimate of
5000 900 bushels as the amount of So
Wet Russia's short sales as a little ex-
aggerated.'"
THAT estimate was obtained from
Mr.. Belitzky's own company" Hyde
continued. EFT has proved to be, as he
NFsv As<.a- -
ready show that, on four days, short
sales by the Soviet government, through
three brokers' amounted to over $780,
600 bushels Of wheat. Thus, actual
sales already uncovered overrun Mr..
Belitzky's estimate By little over so
per cent.
1T is strange that the president of
the All-Russian Textile Syndicate does
not know within 100000 bushels how
much wheat he has actually sold"
The syndicate had assured the de-
partment previously, he added, that
their sales were confined to the past
Two weeks and that the CHI ck-up had
covered only that period.
Hyde denied BelitZky's statement that
the sales could not have appreciably
affected the trend of prices on the
Chicago market due to the turnover of
from 100000 TO 60,000,00O bushels
q day.
THE answer is found in the course
OF prices during the four DAYS covered
by the sales so far identified" HYDE
said. Those four days are September
8, 8, 10 and IL. On September May
wheat opened on Chicago at 99Ia, or
"a cents above the previous close. The
price dropped during the day and
closed at 9615, or on the bottom and
down 2b cents, During the four
days the market on May wheat dropped
from the opening of 991s to the close
on September IL at 941s, q decline of
cents. Comparable declines were
registered in all the other wheat flu
lures.
1.-The sales by Soviet Russia were
probably not responsible for all of this
drop. I do say that such sales, added
to the other bear factors, contributed
greatly to bear psychology which de-
pressed the market. 1t is evident that
something was depressing q market
which was trying to rise.
Cannot Make Deliveries.
This whole matter presents several
unusual aspects. Here is foreign gov
eminent selling wheat short in q mar
ket TO which 1t can never, under any
possibility, make delivery. Freight and
tariff absolutely forbid delivery.
This, their representatives say, is a
legitimate hedging operation, but they
90 not seem to know by so per cent
how many bushels they are hedging.
Not the least striking factor of these
unique operations is the fact that, so
far from having wheat to sell, and thus
to hedge, the Russian government is
rationing its people and doing out food
on food cards.
mo white bread is available to Rus
slams except to children under 10 years
OF age. Industrial workers may have
from one-half to three-fourths pound
OF rye bread per day, their children
only one-fourth pound each per day.
No butter Is available except to chill
dren. and only one-eighth OF a pound
per week to them"
BOARD CALLS MEETING