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! All
sizes, Reg. $8.95. Inventory
sale
LEISURE LO CUT
$88
Cnl- ' Ol,.'.
y Snl- I
"7
4 Boy's Dacron
j SKI JACKETS
' All Nylon shell, reversible
! green to gold and black to
red. Washable, water rcpcl
I lent. Full zipper front, 2 zip
i per pockets. All sizes S-M-L.
: Reg. 17.95
Inventory
j sale
6x30
BINOCULARS
Center focus, coated optics
& coated prisms. Fully guar
anteed. Complete with lea
ther case and straps.
J
Open
8:30 AM
to 9 PM
Every
Day!
DACRON VESTS
5-or. Dacron filled.
weight, washable.
pockets.
tT:$88
Special A
00 .9ventr$788 1
! U II I Sale If tax!
II,' mm!imimnmm ,w.. f r t
Genuine
MOHICAN
MOCCASINS
5
48
BLUE CHAMBRAY
SHIRTS
Good weight, San
forized and full
cut. Two pockets.
Inventory sale
Doublo tanned up
per, complete leather
thong laced. Heavy
rubber sole, double
stitched. All sizes.
Reg. 7.95
Inventory
sale
Men's & Women's
INSULATED
COVERALLS
uter shell completely laminated to
Scott foam. Heavy Nylon lining,
windproof sleeves with knit cuff.
Take up bottoms. 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