Show Charge Wheat Speculators U Used sed Governments Government's 9 Credit I In n Practicing I I Spokane Federal Grand Jury Report Stales States It Is Vi Within thin Power of Federal Officials cias to lo Reduce l Price rice of Flour Immediately POKA E Wash Feb 29 The The federal fed fed- ted ted-I S SPOKANE eral oral grand Jury has made a report In which It expresses tho the belief that the thc credit of or tho the Unit United cd States government govern govern- ment has been used by wheat speculators specula tors to carry the tho great bulk of oC tho the 1013 1919 wheat crop It states that It Is within the pow power r of oC tho the government to reduce the tho price of oC flour whenever It chooses and begs bOIS such relief The Tile names of 01 high officials of oC tho United States Stales grain corporation organized organ organ- by hy the government to protect Its citizens are arc mentioned in tho the report It follows follows- Tc Text t of f Jury Report When hen tho the government appropriated to lu buy luy the 1319 un wheat crop crol wheat wheal receipts became as ns good goodas as government bonds Banks were glad to loan money In any quantity to purchase purchase pur pur- chase wheat for the money paid tho Inthe in iii farmers was immediately the tho bank bankA a. a Tho minimum price of ot wheat was fixed in tho the northwest at nt 2110 ZO for soft loft wheat and for hard wheat coast points point and the prices paul paid the farmers armel's the these c sums less freight to coast points cra a. averaging about 13 cents per pOr bushel and certain other certain other charges which amounted to from front 4 to G G 6 cents per busheL In some BOrnt cases a a. small premium paid for hard wheat wheat- The was maJorIty majority majority major maJor- ity of oC tho the mills in tn tho northwest aro are owned by a 3 half haIr dozen concerns and each In turn has a grain company which Is officered and opera operated tell b by themen themen the tho thomen I men who own the milling milling- concerns c From the great mass matHS of oC the testimony esti- esti mon molt mony presented before the grand Jur Jury wo we believe that i 85 5 per pcr cent of oC tho 1919 1319 wheat crop of oC this state estimated at nt bushels went Into the hands handsor of or these half hat dozen en grain companies and was purchased prior to October 1 15 Hi bolero any material l advance in price I Tho The banks banke of oC this state are honeycombed honeycombed honey hono- combed with warehouse receipts SOI Spokane Spokane SO- SO kane banks banka at one ono time were carrying I worth of warehouse receipts and arid It Is not unusual to find rind that a aI small country bank has loaned 1000 I on wheat receipts Having bought practically all of ot tho the wheat In tho the states of oC Oregon and Wash Washington I n n tim those g grain ra I n co companies rn panIcs havo have been een able able- to advance tho tue price L by sales to each other oilier and through manipulation manip manip- of or the grain market centered at al Minneapolis and b by other methods Although tho the greater part of or the C Continued ou O on Page 2 EXTORTION CHARGED GRAIN SPECULATORS BY U U. U S. S GRAND JURY Governments Government's Credit Used Report Says Market l Is Manipulated l Continued from Pa Page e 1 L i wheat lle t wa was purchased around Oj tho the grain s companies aro sc selling the wheat to to their own milling iiii concerns at tho the prevailing market price which at nt present pres pres- ent Ia Is from 3 3 to per bushel for i hard bard bard wheat Their own mills arc are assorting as- as sorting the thc rights to manufacture flour r on oil n the basis of or tho the price paid for wheat heat a. a. a price which is the result of ot their ff own acts nets of ot manipulation The of flour lour bran and shorts shorts are a n. necessary food for Cor dairy battle and the prices now demanded by these mean destruction of or orthe the thc dairy industry Under regulation existing in 1915 millers aro arc prohibited from Crom making more than GO O O cents a ton on mill feeds a n fair bir price on carload lots was fixed xv ht th tiiA States food tood tor cr at t- t 28 2875 7 per per ton while today mill reeds feeds arc are selling In Spokane at 13 13 per per ton carload carlond lots and 50 50 at nt coast points h by Federal Official The Pacific Grain compan tho succeSsor successor suc sue cessor of ot the tho M. M H H. Houser Grain compan company com corn pan pany the tho Pacific Coast Elevator com corn and pany-and the Pu Puget ct Sound Warehouse El Elevator company compan arc aro owned and operated In connection with tho the Portland Portland Portland Port Port- land Flour Mills concern with headquarters headquarters headquarters head head- quarters at Portland Ore These corporations were owned b by byM M M. II Houser vice president of ot thc the United t d States grain rain corporation fore Cor the UIO t district r ir p At t At the thc time he lie became became- vice J i dent he hc made mado some dome kind of or a a. transfer i ot of his Interests In Iii these and soe not at this time lime appear as as' tho as-tho the tho owner ne r. r r Connection 1 Ii h Sho Shown rn All 11 the offices of oC tho United States State corp corporation for Cor the thc northwest f 4 district and nd tho the offices of the the named being beino- located In a building owned owned b by M. M II H Houser in Portland Ore It is by reason thereof the belief bellet belleta j a pC the grand rand jurors that he Houser is Is is the thc real party part In Interest In the mill mill- J ing kg and grain concerns above named J. J awL that by reason of his connection n with the United States grain corpora corpora- Ion lo he has been able to manipulate and nd operate them t to an immense profit to himself and and a associates Caln l company having bought bushels o of the tho I 1919 wheat crop It Is 18 Impossible for this district to toI I I obtain relief relle for tor the thc grain companies threaten in case action is taken to force them to sell sen the grain to the at the price paid them plus a ak k reasonable carrying charge chars to close tho he mills milis and ship the grain to eastern east- east cf cOrn ern n points j J. J To frustrate any concerted plan pIan of ot evasion we wo would urge ure that tho the de- de Apartment of oC justice take simultaneous Suction in all wheat and flour lour centers r the United States Washington on Paper Inper Bought Latel Lately tho press reported that Jul Jul- Mus lus Ius Barnes president of or the thc United States Grain corporation had joined with Herbert Hoover Hoo in the thc o one ono of or the largest newspapers in Wash Wash- D. D C. C A series of oC da dally daily tin Iy neWspaper newspaper news neWs- I paper articles which seem eem to indicate fit a 1 propaganda is heln being carried d on through the newspaper b by Mr Hoover urging surging the financing on a hugo huge scale ealo of flour Clour and wheat to foreign coun coun- tries Accor According in to press reports former Cormer rl l S' S Secretary of the lie Treasury Glass rc- rc to Cou Congress res the of or to purchase flour find wheat It Is our belief that this is now owned h 1 largely eJ by e rs and ami In lit some cases by bv I interests ts anti and indirectly connected with officers of nf the thc United States Staten grain corporation Sales to Europe wUl benefit only the thc purpose of or I i ant and tho the consumers will pay vay I 4 the bill bills i Credit u. u Used lined b br by We Wc Vc believe the credit of or this gov Sov through tho the national aud ad federal r reserve p. cr ban banks ks has been heen u used d by wheat speculators to carry the treat reat bulk of oC the tho 1 wheat crop and that It J I Is within the hc power of or the tho gov- gov ov to reduce the price o of flour and p-and related necessities whenever it v to act fUllder section 5 of or the act ca a 0 March 4 of 1919 common commonly known as i Lle n wheat guaranty act tho the o of the United Stat States is given cn the tho hv by to tn find what L f is a a. fair Cair just and reasonable practice device rate late commission charge e profit profil or price Wo We would recommend that a tI proclamation bo be issued under said ad act nel fixing a selling price p. of or all wheat no nou hold holt in the United States at the thc price paid tho the farmers farmer plus a reasonable carrying charge chars said Id fixed ced price not nol notto to apply to the pro producer and that thaI similarly tho thio price fixed on the flouT flour and mill feeds We e recommend that no appropriation tion bo be made b by Con Congress ress to man finance the thc sales of or wheat flour or mill products product to foreign countries until such time timo as the thc American people are aro relieved from paying the thc prices nowr now r required b by them by reason of oC the thc herein stated grain manipulation as Dated this day of February I m 1020 O. O mL L ROY ROT SLATER SLATEn Foreman GEORGE V. FULLER y Secretary vr a shin Officials Amazed at Conditions ny Uv Universal Service Washington ton Feb 20 FaIlure Failure of ot the tho department of oC justice to carry out the recommendation of or a a. federal rand Jury at Spokane Wash Yash which asked for Cor a simultaneous investigation at all grain centers to to prevent manipulation of prices on wheat b by speculators peculators n or r interests directly and Indirectly connected connected connected con con- with somo some of ot th the officers of or the United States corporation has amazed many runny members of ot Con Congress re s here rope rope- dali those representing agricultural states ant and communities Tho The report of tho the Spokane grand jury has been in the tho hands handa of ot the tue department depart depart- ment of oC justice since Ince early in Fob Feb It c carried grave charges against M. M II H. Houser of oC Portland Ore one ono of or orthe the thc eighteen vice presidents of or the grain corporation but return returned cd no Into In- In 1 c n t. t In a addition to the tho charges chars the re report report report re- re port asked d that Congress make mako no appropriation appropriation ap ap- ap- ap to finance the sale of or wheat flour Clour or u mill products j. to to- J foru for for- J eign countries sucu ii I American people are relieved relle from paying pay pay- paying ing inS the tho extortionate prices now re required required required re- re of them bv by reason renson of or the tho grain manipulation as herein stated COl Copy I 1 h l by r An effort to lo obtain a copy of or the presentment from the department hero was as a failure It was declared that It was not tho custom to give gi out grand Jury reports A copy COP of oC tho the report was obtained however er from a a- member member mem mom ber of or tho the United States Senate He lie received It in ia tho mail from a manIn manin man In When tho the Substance Substance of ot the presentment present present- mont ment was first made mallo known Mr 11 Houser Hous lous- er or wired vired Attorney General Palmer for fora a complete investigation lIe Ho asked that one ono bo be made so tho Implications contained conta in tho the report against him could be be- shown to be bo false I Julius Barnes Barncs head of oC the thc grain corporation corporation cor cor- corI I n It has been earne learned also got i iI Into touch with Attorney y General Palmer Palm Palm- I I er with a request that an investigation I tion Uon be made Mr Barnes' Barnes contention it tL was said was waR that a a- grave charge chargo had been made against a a. man connected connect connect- ed cd with th the grain corporation and that another was sas necessary to de determine de- de termine whether or not tho the ch charge was true I If it was as true truc Mr Barnes Barncs Is reported to have haV told the tho attorney general gen gen- eral cral Ir eral-Ir Mr Houser Heuser should be indicted If it untrue his name namo should bo be cleared Investigation Now Xou Under Va Way Shortly n after ter Mr Barnes Barnes' conversation conversation conversa conversa- tion lion with the attorney general I the latter ordered a new investigation This investigation In now v is und under r way It Itis Itis is iM being held beld In Portland Ore under the thc jurisdiction of or District Attorney Humphreys Humphres and thc the department of or Justice Jus jus- tico tice has sent a number of its special special cial agents west in an effort cHort to as- as I I 01 1 ti 11 No Xo e explanation has yet been forthcoming forthcoming forth forth- I coming from tho department or nn any of ot its officials as to why the request of ot the tho first grand rand jury was disregarded The brAwl Jurys Jury's request for a p. nationwide nationwide nation nation- wide Investigation of ot tho the situation situation situation situa situa- tion and the grain c corporation has bas not been acted upon but another grand jury will soon be at work to determine whether or not the charges charles made b by bythe the first grand Jury are true This proceeding which proceeding which in reality is isa a n. a. a grand Jury Investigating 3 a grand unusual jury ls jury most A representative of Universal ico ice today showed to Assistant Attorney noy ney General Charles B. B Ames who di directs directs directs di- di the tho laws administered adminIstered administered admin admin- by bytho tho department of or Justice a cop copy of tho the grant grand jury report obtained from a 3 member of the Senate Judge Ames said he was familiar familial with It as asIt asIt asit It had been submitted to the department department department depart depart- ment several weeks ago and added Wo 0 ordered an Investigation of or tho the charges summarized In the thc report al almost almost al- al most immediately Di District Attorney Humphreys at Portland was placed in indirect indirect direct charge chargo of the thc investigation and agents of oC tho the bureau of Investigation have been supplied to carry out his orders order The charges against Houser are arc of ot ofa ofa ota a most serious nature amounting to toan toan toan an allegation atlon that ho he has profiteered In Inthe Inthe inthe i the sale o of wheat while holding holding- a a. government o office Under Unter thc the d direction rec- rec LIon tion oC of District Attorney Humphreys a full Investigation atlon QC each cads and all of or I tho charges will b ob conducted by the tho department o of justice and ever every aid given to Mr 11 Humphreys in prosecuting i tho the investigation I Senator Gronna of ot North Dakota I was one of oC the tho members o of the thc Senate Sonata to express wonder as to why tho the attorney at attorney at- at I torney toracy general hind had not taken action on tho tim report of the first grand jur as was vas Senator Capper Republican of oC Kansas sas The Tho action of the thc Spokane gran grand jury has had tho the effect In Jn somo some measure meas incas ure of ot preventing action in tho the house in European food relief roller bill which was at its inception a bill Madden of Illinois a n member of oC the thc steering committee declared de hedared he- he dared the tho grand Jur Jury report was wa only another reason wh why this additional additional additional addi addi- contribution to Europe should not be made Food Belief f To Be De Delayed No at any any anytime time within thc the near future is expected to bo taken on food relief bill which carries an appropriation bf br to en enable enable enable en- en able the tho United States grain corporation corporation corpora corpora- tion lion to supply food to tho the people of or Poland Austria and Armenia The Tho bill has been allowed to sleep In la the House rules' rules committee committee- since it was reported out by Chairman Fordney Ford- Ford ney ny of or the ways and means committee on January 31 31 and tho the disposition of ot the Republican Republican- leaders leaden is not |