Evening star. [volume] (Washington, D.C.) 1854-1972, 1962-06-14

| ESTES
Continued From Page Al
subcommittee ascertain the
name of the official within the
Agriculture Department who
approved the assignment. The
company officials, on the other
hand, said the assignment had
been approved in a routine
fashion.
The company officers were
Mr.. Wheeler denied yesterday
ever having talked about setting
Estes up in business in Brazil
or using him as a consultant
in Europe.
In Dallas last night, Mr.. Cain
said Mr.. Wheeler had not told
the truth" and that he had ac-
cepted an invitation to appear
before the committee. He said
his appearance was set tenta-
lively for the week of June IS.
Estes was indicted on charges
he sold chattel mortgages on
fertilizer tanks that didn't ex-
list and Mr.. Gains client, Pa
cific Corp. Of Los Angeles, held
$4.5 million in these mortgages.
questioned closely by Mr.. Bass
about a visit that Mr.. jackson
made to the department while
the negotiations with Estes
going on. -....
He wanted to know If the
company was seeking aSsur-
ances that grain would be
stored in the Estes elevator.
Some conclusions have been
drawn here that are completely
unwarranted," Mr.. jackson
said. ....
He testified that he went to
the Agriculture Department at
the company's suggestion to
learn in a general way about
the possibility Of grain storage
operations in West Texas and
that Estes name was not men
toned in his discussions.
Mr.. Jackson said that he was
in Washington on other bust
ness and went into the depart
ment completely cold" not
knowing whom he would see.
He said he learned that it
appeared that the Govern
ment's grain program would
be extended for some time.
Mr.. Bass asked why the COM
pany was interested in grain
storage and inquired whether
the Agriculture Department
gave assurances that grain
would be stored in the Estes
elevator.
Absolutely not" Mr.. Jack
son answered.
Mr.. Bass wanted to know why
the company would lend $225,-
600 to a man who had no grain
storage business or license at
the time to receive Govern
ment grain. 1T appears to me
it was a triangle" he said.
At one point the witnesses
told Mr.. Bass that he was
missing the point"
I'm not missing the point, "
Mr.. Bass replied 81 think you
are missing the point. think
some collision was in
volved."
/ The $225,000 loan for the
grain storage elevator was a
part of a 100000 loan that
Estes negotiated with CONNER
cial Solvents in 1858 after he
had run up a bill Of $40, 900
for .anhydrous ammonia ferti-
lizer. -..
The balance of the loan was
in effect a line of credit for the
liquid fertilizers. Mr.. Wheeler
testified that the company ap-
proved the loan in order to sell
its fertilizers to Estes. .-
He and Mr.. Leonhardt said
they received adequate COL
lateral for the loan and Mr..
!Leonhardt added that it prob
ably would have been made
regardless of whether it had
been connected with the grain
storage operation or not.
In addition to the assignment
of Government storage pay
ments, Mr.. Leonhardt said the
company also received chattel
mortgages on anhydrous am
monia tanks which cost Estes
5000, 900, and also an assign
ment on his insurance pol
Iicies.
Although Mr.. Leonhardt said
the company had adequate Sc
curity aside from the assign
ment on storage payments, he
testified earlier that the grain
storage assignments were the
most valuable part of the COL
lateral the company has for
SIS million Estes still owes.
Mr.. Leonhardt also said that
he considers the security held
by the company as worth more
than the Indebtedness.
Fountain Interrupts
Chairman Fountain, Demo-
crat of North Carolina, broke
in to stop the questioning by
Mr.. Bass and said conclusions
should not be drawn until the
subcommittee completes its
investigation.
Under questioning by Mr..
Fountain, Mr.. Wheels agail