Evening star., 1952-03-26
Grain Storage Firm
Founders Earninqs
Placed al $4,000
Lacks Assets to Meet
Governments Claim,
Manager Tells Senators
By jones {. Roper

Harry EaSley, personal anC
political friend OF President Tru-
man, said today the founders OF
la special company to store Gov
ernment grain received $89. 900 ir
salaries ard bonuses and the COM
pany does not now have enough
money to meet Government claims
against it.
Mr.. Easley was the manager OF
the Midwest Grain Co., which was
set up in 1949 to lease Army build
|ings at Camp Crowder, Mo-. sno
then used the buildings to store
grain for the Agriculture Depart
ment.
The Senate Agriculture Com
mittee, investigating irregularities
in the grain storage program
questioned Mr.. Easley for more
than two hours about the COM
pany's finances and Mr.. Easley's
relations with Mr.. Truman and
the Government.
The testimony brought out that
Mr.. Easley and four other founders
of Midwest received $4,000 di-
rectly from the company. Mr..
Easley received about $27 900 plus
about $4,000 in commissions on
insurance he sold to Midwest.
Firm Now in Liquidation.
Mr.. Easley said Midwest stored
grain at Camp Crowder for two
years and is now in liquidation
with remaining assets totaling
about $25,000. The Army, how
ever. is seeking $4,000 from Mid
west to restore the Camp Crowder
buildings to the condition they
were in when Midwest moved in
Mr.. Easley said he hoped to gel
this claim reduced to an amount
smaller than Midwests present as
sets. Asked whether the Govern
ment would have any claims or
the stockholders in the company
If the Goverpment's claims were
not reduced, Mr.. Easley replied:
"I wouldn't want to admit that.
Senator Mundt, Republican. Of
South Dakota, demanded to know
whether the American taxpayers
would be left holding the bag il
the individual stockholders were
not held responsible. Mr.. Easley
replied that he still hoped to "worh
lit out"
Got No FavOrs, He Says.
He was questioned closely about
his business dealings with Quirl
|J. Bernard, War Assets Admin.
|istration official in Kansas City
who leased the Camp Crowdel
facilities to Midwest-apparently
lon liberal terms.
Senator KEN. Republican. o1
Missouri, asked, shave you beer
Ia personal friend Of Mr.. Truman
for many years?"
"I have known him a lons
time" Mr.. Easley replied.
He said he never discussed Mid
west with Mr.. Truman. Commit.
tee Chairman Ellender asked
whether Mr.. Easley ever received
ANY political favors in the Mid,
west deal.
ION my word of honor, none
whatsoever" Mr.. Easley replied.
Under questioning from Com.
mittee Counsel Paul Cotter, Mr.
Easley testified that Midwes
bought three trucks in 1949 ant
sold them still unused, thereaftel
at q loss of $2,193. The trucks
were bought from Bernard Mo
tors, Lexington. Mo. Associated il
Bernard Motors were Mr.. Bernart
and Dan Nee, a Midwest stock
holder. Mr.. Easley testified Mid
west sold the trucks when stock
holders decided it would b
cheaper to lease motor transpor
ltation.
Myers proud Of Work"
Ardeis II. Myers. president o
Midwest, told the committee h
was proud Of our work"
what money may have beer
made was not more than othe,
grain men working under simila
lconditions would and should hav'
received considering the invest
ment, the hazards and the detail
involved" he said.
4 The committee. which heard
parade of witnesses for six hour
1 yesterday, pieced together thi
story of Midwest's setiup.
/ Mr.. Easley was quietly run
ming q loan business in Web
City, Mo-, in June, 1949. A maj
handling Government surplu
property visited Mr.. Easley On,
ltsee AGRICULTURE. Page AS.