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OPERATIONS OF BILLIE SOL ESTES
403
to assure the reliability of specific accounts, analyses prepared
from the accounting records should be utilized wherever possible.
3. Certain information about the day-to-day transactions of
the commodity offices and grain warehouses might not be avail-
able because the commodity offices, in accordance with usual
customs of the grain trade, conduct these transactions by tele-
phone.
4. Investigations of various aspects of Estes' activities were
being made by other governmental agencies. The scope of the
review, therefore, would be limited to avoid excessive travel
costs and duplication of effort.
5. The review must be based on examination of the day-to-day
decisions made at the time the grain was moved in order to pro-
vide a basis for an informed evaluation of the Dallas commodity
office's procedures for finding available terminal space, and for
utilizing the terminal space when it was located.
Review Approach
Since it was possible that the Senate subcommittee later might
wish to hold hearings on grain storage matters, the objectives of the
review were (1) to obtain reliable information regarding the allega-
tions of preference to Estes' warehouses in connection with CCC-
owned grain movements; (2) to furnish the subcommittee staff with a
list of knowledgeable witnesses; and (3) to explore any other matters
related to the storage of CCC-owned grain in Estes' warehouses which
might appear to be significant during the course of the review.
An analysis of CCC accounting records disclosed that at March 31,
1962, about 33.7 million bushels of grain was stored in warehouses
in which the UGSA was signed by Billie Sol Estes, and in Hale
County Grain Co., Palo Duro Grain Co., and Allied Elevators. All
of these warehouses were managed by Wayne Cooper, general man-
ager of Estes' grain warehouses. The analysis follows:
Government-owned grain
Million
Percent
bushels
Grain in store in going warehouses at the time Estes acquired control
5.9
13
Grain placed in the warehouses by farmers and subsequently taken over by
ccd.
15. 4
34
CCC-owned grain moved in from other warehouses (reconcentrated)
16. 5
37
Grain acquired by other warehousemen in store and exchanged with CCC
for grain stored elsewhere (primarily because of transportation considera-
tions)
7.0
16
Total
44.8
100
Grain moved out prior to Mar. 31, 1962.
11.1
Total
33.7
The analysis indicated that about 47 percent of CCC grain acquired
by CCC in store in Estes' warehouses was placed there by farmers
(15.4 million bushels); or was stored with a previous warehouse owner
(5.9 million bushels); the commodity offices would have little control
over this situation. The commodity offices were responsible for
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"ocrText": "OPERATIONS OF BILLIE SOL ESTES\n403\nto assure the reliability of specific accounts, analyses prepared\nfrom the accounting records should be utilized wherever possible.\n3. Certain information about the day-to-day transactions of\nthe commodity offices and grain warehouses might not be avail-\nable because the commodity offices, in accordance with usual\ncustoms of the grain trade, conduct these transactions by tele-\nphone.\n4. Investigations of various aspects of Estes' activities were\nbeing made by other governmental agencies. The scope of the\nreview, therefore, would be limited to avoid excessive travel\ncosts and duplication of effort.\n5. The review must be based on examination of the day-to-day\ndecisions made at the time the grain was moved in order to pro-\nvide a basis for an informed evaluation of the Dallas commodity\noffice's procedures for finding available terminal space, and for\nutilizing the terminal space when it was located.\nReview Approach\nSince it was possible that the Senate subcommittee later might\nwish to hold hearings on grain storage matters, the objectives of the\nreview were (1) to obtain reliable information regarding the allega-\ntions of preference to Estes' warehouses in connection with CCC-\nowned grain movements; (2) to furnish the subcommittee staff with a\nlist of knowledgeable witnesses; and (3) to explore any other matters\nrelated to the storage of CCC-owned grain in Estes' warehouses which\nmight appear to be significant during the course of the review.\nAn analysis of CCC accounting records disclosed that at March 31,\n1962, about 33.7 million bushels of grain was stored in warehouses\nin which the UGSA was signed by Billie Sol Estes, and in Hale\nCounty Grain Co., Palo Duro Grain Co., and Allied Elevators. All\nof these warehouses were managed by Wayne Cooper, general man-\nager of Estes' grain warehouses. The analysis follows:\nGovernment-owned grain\nMillion\nPercent\nbushels\nGrain in store in going warehouses at the time Estes acquired control\n5.9\n13\nGrain placed in the warehouses by farmers and subsequently taken over by\nccd.\n15. 4\n34\nCCC-owned grain moved in from other warehouses (reconcentrated)\n16. 5\n37\nGrain acquired by other warehousemen in store and exchanged with CCC\nfor grain stored elsewhere (primarily because of transportation considera-\ntions)\n7.0\n16\nTotal\n44.8\n100\nGrain moved out prior to Mar. 31, 1962.\n11.1\nTotal\n33.7\nThe analysis indicated that about 47 percent of CCC grain acquired\nby CCC in store in Estes' warehouses was placed there by farmers\n(15.4 million bushels); or was stored with a previous warehouse owner\n(5.9 million bushels); the commodity offices would have little control\nover this situation. The commodity offices were responsible for"
}