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About Herald and news. (Klamath Falls, Or.) 1942-current | View Entire Issue (Dec. 16, 1963)
Salad Oil Mess May Eventually Amount To $150 Million Scandal .-sew vtmiv ttn To a horde of investigators wading through the burgeoning edible oil scandal, the mess resembles an iceberg most of it hidden from view. But observers say that then all the facts are brought to the surface, the scandal may re veal $150 million in skulldug gery. 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 tlieir 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 costly government investi gations no matter how the whole business turns out. OH "Disappears" The crux of the matter is a huge amount of edible oil which "disappeared" from a big tank farm in Bayonne, N. J. How much oil is missing, who look it, where did it go and 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 to 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 olher, it is next to impossible to trace it. Files Destroyed Files dealing with the assign ment of some of those tanks were destroyed by fire, and harasses investigators reported difficulties in matching lags 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 to 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. The first phase of the mess was confined mostly to the fu tures market. Two Wall Street houses, Ira Haupt & Co. and J. R. Williston & Beane, which had acted for Allied Crude in oil dealings, were suspended by the New York Stock Exchange alter Allied Crude failed to meet their margin calls. Ultimately, Ira Haupt was liquidated with the New York Slock Exchange stepping in with up to $12 million to care for its customers; J. R. Willis ton & Beane was acquired by another member firm. Leads To Inquiries This sparked a series 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 firms 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" to Hudson Tank Storage Co. and Interna tional Refining and Packaging Co. Another oils storage firm. Ha:lor Tank Storage Co. of West New York, N.Y.. which leases 1 Bayonne tanks from Allied, filed for reorganization under bankruptcy laws last week. The firm listed its debt at S225.00O but said its contin gent liabilities could go as high as $40 million. Harbor Tank said claims in an "unknown amount'1 have LUCAS FURNITURE 195 E. Mom OPEN EVERY NIGHT Till 8 PM STOREWIDE SALE IN PROGRESS LUCAS been made against it for the delivery of certain edible oils against which certain ware house receipts allegedly have been issued in connection with Allied Crude. Seeks .Missing Oil Meanwhile. Bunge Corn., a large exporter of agricultural products, is pursuing its own investigation in an effort to lo cate 690 million pounds of veg etable oil it said was removed from tanks of another firm in Bayonne American Express Warehousing, Ltd. last month. Bunge said it has receipts (or 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. The investigations, however, have been stymied because An thony De Angelis. Allied Crude's president, declined to answer questions relating to the case at the Newark bankruptcy hearings. Federal bankruptcy referee William Tallyn ordered De An gelis and Ben Itotello, control ler ol Allied, to show cause by Wednesday before a federal judge why they should not be HKKALD AND NEWS, Klamalh Falls, Oregon Monday, December 16, 19k1 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 tlie Soviet Union turns its in terest from gains to edible oils. PACE 7 He said his positions were built up long before the com modity "thaw" with Russia. At any rate, there w a s a sharp decline in vegetable oil Tom frlcrru BATTER futures on Nov. 18, reflecting a downturn in the fluctuating for tunes of tiie Russian grain deal. Margin calls went out, Allied Crude went bankrupt a n d the scandal began to blossom. Helps You Overcome FALSE TEETH Looseness ond Worry No longer be an noved or feel III -tt-ease because of loo&e, wobbly falsa teeth. FASTEETH, an improved alka line i non-acid powder, sprinkled on your plates holds them firmer so they feel more comfortable. Avoid embar rassment caused by loose plates. Get rneibbin t may a rug counter. iCtxut-tO'Gxut NEWSPAPERS SELL THE MOST! p?argrM,'T JUST BEFORE CHRISTMAS-THE OUTDOOR-STORE CLEANS HOUSE! We've got to reduce inventory before the first of the year, so we've slashed prices in every department now, just before Christmas . . . savings you can't afford to miss! Remember, this is a NEW store with all NEW merchandise . . . now at tre- Hours 8:30 AM -9 PM EVERY DAY . . f . menaous discount prices! Shop this timely sale . 3 Buy now for Christmas giving OUR LOSS -YOUR GA TIMER KCKRS . ..J tnr and insulate. ith knit Quilted repellent and colla'- ,nvetory sale P'.ce I Famous Insulated Boy's Levi it i pf phi&rfr wnni 11 I mm mm mm m m mr mm m w sr . mw i wr mm 11 RIDERS 4 PACS A SHIRTS 11 ffsj By Goodyeor. 9 eyelet full J Wosh 'n Wear machine II ,t These ore 13'4 ot. denim, 0Ce, heavy imulation, iteel ' washable! Large .flection of II the authentic cowboy pant,. H shank. Keep your feef wam. j 8 "d "'"' ' 11 I mvanrcry a.e nSJ. Inventory Sale I SI ',: " fj I El a?or t stark n nn ti 5 O w I .....-l-.-J';t--: -:. iir.tm ninmm "--all." ei - ---a i arnrW0lr 1 Extra long cuFFPSKlN VESTS Jllbkl :Uro,lar. Gen- 83 i uine Rea. U.95 "kidney bock, high collo NOT synthetic'. 7.95 DACROHVESTS Dacron Ml-. - Q back, high knit collar. L Q -nlnr. t or Drow" -inventory sale price i-nrorv sale price SKI JAUu: lc FuU S TAikman fabric. I- linina. a Hood attached, wa In b I a c K or i n OC IT."' . l nnce invcn.u-l , ,,r SLEEPING BAGS By White Stag 3 pound Dacron "88" filled. Full shipper pair model, genuine heavy flan nel lined. Air mattress pocket, water repel lent cover. Full size, 36"x80". Reg. 19.95. Inventory sale Black Bear WHIPCORD PANTS Nylon blend, heavy 18 oz. weight. Green or gray colors, all sizes. In ventory sale THERMAL KNIT UNDERWEAR Warmth without weight. Traps body heat to give warmth without bulk. Washable, no shrinkage. Shirts and drawers In ventory sole price, each $88 Each $28 COWBOY BOOTS Famous name brands . . . Nacona, Tony Llama, Acme. All styles of heels, walking, dogger and rid ing; all heights, 12" to 16". ALL AT DISCOUNT PRICES! SHEEP LIKED HOUSE SHOE By Dunham. Heavy leather sole, rubber heel, permanent counter. Warm sheep lined. All sizes. Req. $6.95 Inventory sale NORFLEX WORK SHOES 6-inch leather upper, heavy sponge rubber sole. Ploin toe, Goodyear storm welt. All sises. Reg. $7.98 . . . In ventory sale 5468 3 Chippewa Mountain Boot These boots have the non-slip "Mountain" sole . . "Vibram" made in Switzerland. Canadian veal tan up- gt ner Rea 29 95 Irk ft Inventory sale 1 "u COTTON T-SHIRTS Heavy weight, full combed cotton in white. S-M-L. Reg. 95c value. $ m Inventory sale O 'or I Sizes 98 ..., .... . . ..twlr"" -KrX v nvlon i 1 W COTTON BRIEFS 3 Far men. Full combed cotton. Sizes S-M-L. Reg. 95c value for 1 98 TURTLE NECK T-SHIRTS $11 98 Heavyweight, long or short sleeves, every color of the rain bow. All sizes. Reg. 2.95. Inventory sale DOESKINSLACKS "Golden Luxury" washable Scotch Gard slocks. Superior styling, non -itch, tremendous strength, brown, charcoal, gray, green. Sizes 32-46. Reg. 9.95 pair-Inventory sale W8 Ex sponge soft, double tan ned calf upper, elastic gore for comfort. Real value! 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Full 2-way zipper. Completely washable . . . warmth without weiaht. 'Blizzard M fQj proof" 1-pc. T jj suit. Inventory 11 f(Jj sale 83 THE ft!. Shop 'til 9 p.m. Every Niqht This Week! 618 Main Ph. 2-6027 vn. r CONVERSE CHEST HIGH WADERS Famous "Rod & Reel" model. All rubber with heavy boot foot. Finest wader made. Sizes 6 thru 12. Reg. $24.95. Inventory sale r r i it ramous raicon orana j Mmm. LEATHER BOOTS 8lnch ail tannA uppar, moccaiin tot, cushion intc-lt, Full nto (9n iol and huh art ail ratiilant. No nailil Idtal beat far work,ar aparti. All liiat. R.g. $12. J m Invantory tola J
