[The following information was subsequently submitted for the record:]

T/T RYSY II

YELLOW CORN, U.S. DEPARTMENT OF AGRICULTURE SPECIAL SAMPLES NOT INCLUDED IN AVERAGE

T/T RYSY II-YELLOW CORN U.S. DEPARTMENT OF AGRICULTURE BROKEN CORN AND FOREIGN MATERIAL SAMPLE

1 Each level is approximately 6 ft above the next level. 2 No results.

Senator CLARK. Now, just one last question.

Based on what you learned in this case, do you still feel that we ought to just clean up the present grain inspection system as distinguished from developing civil servants in New Orleans?

Mr. MANGUM. I would defer that question to Mr. Wilkinson. Mr. WILKINSON. I think it is important, sir, that we are looking at only one case in one port area, with one inspection agency, with one company.

Senator HUDDLESTON. Well, the district attorney looked at several other cases.

Mr. WILKINSON. He has been looking at several of the elevators and the inspection agencies in the port area of the gulf area of New Orleans and Texas.

Senator HUDDLESTON. But if you assumed or if you found this to be widespread, what is your position there?

Mr. WILKINSON. The Department's position at this time, as you know, with the bill which we have recommended, is the perfecting of the Federal, State, private system.

Senator CLARK. Thank you, Mr. Chairman.

Senator HUDDLESTON. Senator Dole, do you have any questions? Senator DOLE. I am not sure that I understand what offgrade grain is.

What is the grade now that is being tested in Poland?

Mr. MANGUM. Well, the contract called for U.S. No. 3 yellow corn.

70-908 O-76-3

Based on what samples we have analyzed to date, they indicated that a high percentage of the center tanks were not No. 3 grade corn, that they were significantly different from what you would anticipate under the contract and under the loading conditions involved.

There were several tanks that were about what you would expect, particularly wing tanks; but the center tanks were not.

Senator DOLE. What percent of the load is not going to be No. 3? Mr. MANGUM. Well, it is hard to get a precise estimate because we do not have all the samples in; but about half of what rests in the center tanks is less than No. 3 yellow corn. It is approximately half of the 58 percent which is in the center tanks.

Now, we do not have all the analysis in yet.

Senator DOLE. But if you consider the total amount, how much is not going to be No. 3?

Mr. MANGUM. It will be roughly about 30 percent which would probably be something other than No. 3, or what we could anticipate from loading No. 3.

Senator DOLE. Then, you conclude that there has been malfeasance; is that right?

Mr. MANGUM. I conclude that the office of investigation ought to proceed with their investigation. I do not make a determination of malfeasance.

Senator DOLE. You made that statement to the New York Times on January 19.

Mr. MANGUM. No, sir; I did not make any statement to the New York Times.

Senator DOLE. So you were misquoted?

Mr. MANGUM. I have not seen the article.

Senator DOLE. The New York Times, January 19, quotes Mr. Mangum.

Mr. MANGUM. I said there is something wrong with what we saw. It is not for me to determine whether it is malfeasance or what, or who did it. I know there was something wrong in the loading. Senator DOLE. Do you think there is willful misgrading of the corn shipment destined to Poland?

Mr. MANGUM. There was an appearance of that; yes.
Senator DOLE. That has not been established yet; right?
Mr. MANGUM. That is right.

Senator DOLE. The same article indicates that one of the Federal inspectors said that it looks like 50 percent BCFM, looking at one sample.

Mr. MANGUM. That is quite correct, sir. It did look like 50 percent. Senator DOLE. Then, Mr. Ryan was quoted as saying in the Des Moines Register that a 6-foot-deep probe sample detected more than 80 percent broken corn and foreign material and a 12-foot-deep sample detected 43 percent.

Mr. MANGUM. I think those figures are correct.

Whether he said them to the Des Moines Register or not, I cannot answer that.

Senator DOLE. It is in the Des Moines Register. I assume someone must have said it.

Is someone in USDA monitoring the unloading?

Mr. MANGUM. The unloading is completed. It was completed on the 8th, I believe.

Was it not?

Mr. STARLING. We had our samples on the 8th. They had to clean up the bottom of the tanks. We did not feel it was necessary for us to stay for that since we had obtained all our samples.

Senator DOLE. How long is it going to take to grade it?

Mr. MANGUM. It will be about 10 days once it arrives. There are over 200 samples yet to be graded. We anticipate having some of our people work this weekend on samples and there is one more group of samples to come. It will probably be 10 days before we get the results back.

Senator DOLE. I was just trying to make certain I understood what happened. I know you do not want to get into the question of what kind of system we are going to have, but I want to make certain that you took this action to check on the corn and not just to try to prove that you are right.

Mr. MANGUM. I hope we took it as a matter of supervisory responsibility, sir. We take that rather seriously.

Senator DOLE. I say that because there is always the question raised that the Federal bureaucracy is just too burdensome and you cannot fight it. Also, the Federal Government is going to prove their case one way or the other, and you can do it with sheer numbers.

The Federal Government has sheer numbers.

I think we have to satisfy those who are on the other side that it was done in a totally objective fashion and not with anything else in mind.

Have you satisfied yourself as to that?

Mr. MANGUM. Yes, Sir. I am satisfied that it was done strictly as a supervisory measure. It started out as a routine supervisory

measure.

We have entered other ships and found what we expected in the way of grain in the holds and they moved right along as prescribed. There is one other ship that we found offgrade grain on board and they offloaded it. That is their prerogative always.

Senator DOLE. I was somewhat late, so I did not have a chance. to see the slides, but apparently you conducted some experiment. Was that successful?

Mr. MANGUM. The experiment was conducted at the suggestion of Cook Industries, at Mr. Coleman's suggestion, who is the manager of Cook elevator there. He asked that we conduct what he said was a similar situation.

We loaded, I think it was the No. 8 starboard tank, on the Azov, the Russian ship, which was on berth loading at the Cook elevator. We probed the results and found that it did not substantiate what Mr. Coleman thought it would or what Mr. Young thought it would. It did substantiate our position that you can anticipate 3 or 4 percent or less increase in BCFM from sampling to the grain at rest in the hold.

Senator DOLE. Now, do you just go ahead and grade it?