Evening star. [volume] (Washington, D.C.) 1854-1972, 1962-07-17


lican of Minnesota, as a HOUSE
committee continued public h
(Tex0 operators grain storage
dealings.
Mr.. Langen and Representa-
tive Florence T. Dryer, Repub-
lican of New Jersey, unloosed a
barrage of criticism at the de-
partment in the course of the
hearing. They challenged the
departments failure to increase
the 100000 bond on Estes
grain storage facilities and to
push an investigation which
Started in September, 1861.
Their attack came as Dabney
Townsend. acting chief of the
departments warehouse branch,
undertook to defend the de-
partment in the bond matter.
Bond Raised Three Times
Mr.. Langen said the depart
ment required a 100000 bond
from the Pecos operator on II
million bushels of capacity
starting in 1860 and raised it
three times in that year to a
total of 100000.
Then, the Minnesota Re-
publican charged, there was "a
complete change in policy"
after the new administration
took over and Estes came to
town and visited Carl j. Miller
then head of the warehouse
branch, who had charge OF
fixing the bond.
The Estes storage capacity,
MIR. Langen continued, in
creased by 20 million bushels
in the next Is months and mot
one nickel was added to the
bond"
Let me say to you." Mr.,
Langen told the witness, "it
this is not favoritism, a COM
plete change of policy on Estes,
I don't understand what the
word means"
Witness Makes Protest
Mr.. Townsend protested that
the amount Of the bond had
nothing to do with anything
except our regulations" and
the amount of net worth Estes
could prove.
1T becomes kind Of evident
in my estimation" Mr.. Langer
retorted, that the suits, the
hats and the money orders
were beginning to have theil
effect"
He referred to gifts report
eddy given by Estes, and his
statement brought a quick re.
ply from Mr.. Townsend.
The witness said there ha'
been no evidence that anyone
in the warehouse branch re
ceived any gifts from Este
and they had no effect OF
the warehouse branch"
Then why was Miller trans
-, ferred?" Mr.. Langen de
manded. e
Mr.. Townsend said he di,
not know. Mr.. Miller was givel
another assignment after tn
Billie Sol Estes case broke ant
questions were raised about tn,
grain storage bond.
Denies Elevation to Position
IF the department found il
necessary to make that transfer
because Of his relations with
Estes :" Mr.. Langen said
"how come the department
elevated you to his position?
Mr.. Townsend, a mild-talkinl
native Of Arkansas, had tolt
the subcommittee headed b.
Representative Fountain, Dem
ocrat Of North Carolina. that a
Mr.. Miller's assistant he sharet
in and agreed with the decision
to leave the Estes bond a
100000. He said this decision
was reached on the basis of
certified public accountant
statement on Estes which ha
since been found to have bee,
based only on figures the Peco
operator supplied.
Mr.. Townsend said he ha
not been elevated to Mr.. Miller
former position and was actin
only as chief Of the branch.
you are performing h
duties" said Mr.. Langen.
mot as Mr.. Miller performe
them" Mr.. Townsend reptile,
explaining that such decisio
as on bonds are now made b
a three-man committee.
Langen Sees Favoritism
I'm view of the statement
this morning and the failul
to provide an answer for tt
departments failure to il
crease the bond" Mr.. Lange
said, II have got to state thi
this is every evidence of tt
degree to which Estes was alb
to achieve favoritism in IL
department in that 13-mont
period and there has been I
evidence to the contrary pr
sented.
IF the Department saw
to remove Mr.. Miller becau
Of his activities, would que
ton the wisdom in continuil
part of the same personnel
play a continuing role in the
! decisions in the future"
Both Mr.. Langen and Nj