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About Medford mail tribune. (Medford, Or.) 1909-1989 | View Entire Issue (Dec. 18, 1963)
WEDNESDAY, DECEMBER 18. I9H3 IMEDFORD .MAIL TRIBUNE, .MEDFORD. OREGON ble Oil Scandal May Reveal $150,000 in Skullduggery Bv ROBERT .!. REGAN NEW YORK (UPI) - To a horde ot investigators wading through the burgeoning edible oil scandal, the mess resembles an iceberg most of it hidden from view. But observers say that when all the facts are brought to the surface, the scandal may re veal $150 million in skullduggery. A scorecard won't be large enough to list the potential los ers and victims. These already include a num ber of bankrupt edible oil firms and their employes, two large Wall Street brokerage com panies, American banks, foreign banks and insurance companies. The big loser, however, may well be Mrs. American House wife every time she buys salad oil for the dinner table. As things now stand, the pub lic will have to pick up the tab for cosily government investi gations no matter how the whole business turns out. The crux of the matter is a huge amount of edible oil which "disappeared" from a big tank farm in Bayonne, N. .1. How much oil is missing, who look it, where did it go and ' They'll Do It Every Time By Jimmy Hatlo brCMOM-JUStV" NAW.' I VT7 . SrSr'' TWING TO If A FRIENDLY J DON'T WOW YOU GUYS VSrrZrrN-'rA Cr7 A BRIOGE IL LITTLE -rl HOW TO rf 00 AMEAD-fir I PLAY J. AND IT SEEMS -JkH fiSTiS ,cr y TF?U Guys"- rT wows wow livfflMfs,2 I "T'lSlS-f TO SHUFFLE -1 ?1 ? 1 . oinm7- T "" -rUtfA W ONLY CROSS f ... S0T ,p VOU HAO COME BACK ) 6L,rT bJrJVc DOUBLE- WITH SPADES I COULD iji :' AKO A fJATlO UtT 'rj;o EU6BNS t. , KUV,Ji., t ri "SLAH6DOH 75?., Four Frozen Corpses, Nearly Frozen Man Found in Ocean NAMSOS, Norway (UPI) -Two fishermen tending their nets along the icy Atlantic shore spotted a strange object bobbing through the freezing breakers Inward coastal rocks. A ghastly sight greeted them when Ihcy drew near in their fishing boat. Four frozen corpses and a man barely alive were lashed In a battered timber raft, all that was left of the 4!H)-ton Nor wegian freighter .Innctla, sunk in a storm Iwn days earlier. Fishermen Hans llartvikoy and his brother, Sigfrcd, stared at the lone survivor, who man aged a taint call (or help. "His mouth was almost ho 7cn," Hans said today. "His arms and Irgs were stiff from cold and he could scarcely raise his head." The man was the Jonetla's raptain, Ole Johansen, .14. He had watched four of his 10 crewmen freeze to death and ! had seen the other six swept I away by the sea, but some thing kept him awake and fighting for survival. I He lold of his ordeal today in the Nnmsos Hospital where he Grange was reported in good condition and expected to recover, thanks to the llartvikoy brothers. The .lonetta was sailing north through a storm and intense polar darkness Friday along i the northwestern coast of Nor way when the cargo shifted in I the storm, leaving the vessel ! unmaneuverablc and at the mercy of the seas. A huge wave hit Ihc ship and capsized it. There was no time lo radio a distress signal. Two crewmen lowered a life boal down the side as the .lonrlta listed badly. A wave smashed them and the lifeboat against the side of the ship and they were gone. Johansen and his ci it rc m a i n i n g crew m unhors launched the timber raft, hasti ly stocked with provisions, jjst as the Jonetta went down. Waves singed into the raft, washing away four of the men and all the provisions. I Johansen and his men w. 'e wearing only shirts and trous ers. One by one, the .iii'.-iin saw the others freeze to dt a'h. Johansen forced him iclf to slay awake, fighting lo keep h:s Wood circulating. His determi nation saved his life. where can it be found? The answers are being sought by a federal grand jury, private de tectives, lawyers and a host of auditors who would make the investigative staff of the Inter nal Revenue Service envious. The answers won't come easy, according lo all appearances and the testimony of Nicholas Papaccio. Papaccio, a former employe of Allied Crude Vegetable Oil Refining Corp.. testified in U.S. District Court in Newark, N. J., in connection with his firm's bankruptcy proceedings. He said it was simple to transfer oil from one tank to another at the 200-unit storage tank farm in Bayonne. Not all the tanks are used by the same firms. The tanks are connected above and below ground by an involved system of transfer pipelines, and once the oil from one tank is piped into an other, it is next to impossible lo trace it. Files Destroyed Files dealing with the assign ment of some of those tanks were destroyed bv fire, and harassed investigators reported difficulties in matching tags on other tanks with listed owners or leasees. The whole business came to light when Allied Crude filed for reorganization under Chapter II of the Bankruptcy Act last month. The firm had failed lo cover multi-million-dollar marg in calls on positions in vegetable oil futures. This means that Allied, which had purchased the oil on credit in hope of selling it at a profit, was unable to come up with the balance of its payments. I he first phase of the mess was confined mostly to the fu-i turcs market. Two Wall Street houses, Ira llaupt & Co. and ; J. R. Williston & Beane, which had acted for Allied Crude in oil dealings, were suspended by the New York Stock Exchange after Allied Crude (ailed to meet their margin calls. Ultimately, Ira llaupt was liquidated with the New York Stock Exchange stepping in with up to $11! million to care for its customers; J. R. Willis ton & Beane was acquired by another member firm. This sparked a scries of in vestigations dealing with the fu tures market in general, the re sults of which are not in yet. While Phase One has not run its course, Phase Two the search for the oil itself is in full swing. Lawyers for Allied Crude ob tained an injunction preventing two other (inns with tanks in Bayonne from removing oil from their tanks. Ravin & Ravin, attorneys for the Allied Crude receiver, said it had information that oil be longing to Allied Crude had been "diverted" lo Hudson Tank Storage Co. and Interna tional Refining and Packaging Co. Another oils storage firm, I Harbor Tank Storage Co. of ! West New York, N.Y., which . leases 41 Bayonne tanks from j i Allied, filed for reorganization under bankruptcy laws last I week. The firm listed its debt I at $225,000 but said its contin- ' gent liabilities could go as high j ' as $40 million. j Harbor Tank said claims in : an "unknown amount" have been made against it for the delivery of certain edible oils against which certain ware- i house receipts allegedly have been issued in connection with Allied Crude. Seeks .Missing Oil i Meanwhile, Bunge Corp., a large exporter of agricultural . products, is pursuing its own ! ', investigation in an effort to lo icate 690 million pounds of veg-i etable oil it said was removed from tanks of another firm in Bayonne American Express Warehousing, Ltd. lasl month. Bunge said it has receipts for 160 million pounds of oil, but only seven million pounds can be located. Last week, the Senate perma nent investigations subcommit tee said it would look into the situation to see if present laws covering purchase and sale of commodities need strengthen ing. At least two Department of Agriculture agencies have moved into the picture, as have FBI and the Securities and Ex change Commission. A federal grand jury also put its oar into : the muddied waters. j The investigations, however, have been stymied because An-, thony De Angelis, Allied! Crude's president, declined to answer questions relating to Ihe case at the Newark bankruptcy hearings. Federal bankruptcy referee William Tallyn ordered De An gelis and Ben Rotello, control ler of Allied, to show cause by Wednesday before a federal judge why they should not be sent to prison "or otherwise dealt with" for refusing to an swer. De Angelis denied reports that he built up his huge posi tions in cottonseed and soybean oil futures on the premise that contracts would move higher if the Soviet Union turns its in terest from grains to edible oils. He said his positions were built up long before the com modity "thaw" with Russia. At any rate, there was a sharp decline in vegetable oil futures on Nov. 18, reflecting a downturn in the fluctuating for tunes of the Russian grain deal. Margin calls went out. Allied Crude went bankrupt and the scandal began to blossom. We never guess We look it up WORLD BOOK ENCYCLOPEDIA 1 In Sales s!, In Service for your LOCAL representative Write Box 62 Ph. 482-3196 Ashland, Oregon We never guess We look it up "Oil To Burn" S&H Green Stamps MEDFORD FUEL CO. Phone 772-2111 ews t'liper Applegale A plaque for outstanding com munity service in I'JM and a savings bond were presented to j the community service chair- j man of Upper A p p I e g a t e (Irange at the December meet- j ing. The Grange won first hon-1 oralile mention in Oregon in Ihc National Grange-Scars Roe-i buck Foundation sponsored con- j test.. Mr. and Mrs. Phil Hull were' obligated in Ihe third and fourth degrees by Past Master George Redhead. Members voted lo cancel the sccund December meeling since tt would be so close to Christ- ill,:,. ! Sewn members of Upper Ap plegale attended Ihe national Grange in Portland and received the seventh degree in November. Following Ihe business session Lecturer Vicva Saltmarsh pre sented a Christmas program (on lining readings by Florence l.anco. Cyrena Darius, and Dana Gerhard!, a soprano solo by Mil dred Redhead, a duel sung by Marie Krugel and Nell Ramsay and group singing of Christmas carols. A gi(l exchange followed Ihe prnciam Madlaine llohnker and Mi. and Mrs Curt Gerhardt wore hosts for the evening and Ihe tables were decorated with Christmas decorations. Charity Art Raffle Offers Picasso Works LONDON (UPI) -The Insti tute of Contemporay Art said today it will hold a charily arl raffle, wilh Ihe winner taking home a Picasso painting for only M. As each of the tU tickets to Ihe raffle are pulled from a hat, Ihe owner will try lo identify the unmarked Picasso from among lil other paintings on sh.iw. Each contestant will keep the painting he picks and Ihe lucky one will get the Pica- GIFT TOWELS BY MARTEX cameo-perfect roses sculptured in richest terry . . . Fringod bath towol 24"x48" Fringed hand towel 16"x30" Face cloth 13x13" 2.98 1.79 .69 111 J lUt.:V j 1 A 8 'V H 1 m V"' . ' i Ft, J ' 1 r J linen dept. , . . street floor A garden of full-bloon roses, lovingly woven into soft, soft terry . . . while-on-color from one point of view, coloi-on-wliite fiom another. Created by the jncquard looms of Martex to bring a feel ing of romantic luxury. Choose from delicate tints of amethyst, blue mist, misty mint or losebud, each combined with white. -IK.-. Hit ' it'' ' J i ft 7 ..jl fr" . MR. 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