July 16, 1975

At least dozen execs and former execs of Bunge Corp, Cook Industries Inc and Mississippi River Grain Elevator Inc reptly are under investigation in spreading Fed inquiry into alleged corruption in grain-export trade; Mississippi River Grain Elevator Inc is owned by Serafino Feruzzi of Ravenna, Italy, who is major figure in Eur soybeans processing; activities of Public Grain Elevator and St Charles Elevator, large grain elevators, reptdly are also under investigation; Degelos Bros Grain Corp, small New Orleans grain co, has been identified as reptd buyer of grain stolen from corps by theft rings that have included mgt-level employes of corps' local elevators; funds allegedly resulting from that operation have been traced by NY Times to bank in Bahamas; dozens of witnesses with alleged personal involvement are known to have bargained for pleas or other special considerations in return for testimony; investigation reptdly has spread to all major grain-export ports but major results are being produced in New Orleans area, where US Atty Gerald J Gallinghouse and Asst US Atty Cornelius R Heusel are directing and coordinating work of FBI, Agr Dept's Investigation Office and IRS; principal focus of investigation currently is on alleged thefts of grain, including 'overages' created for corps by employes through allegedly fraudulent weighing of grain and allegedly false grading of grain; grain in New Orleans area is graded by inspectors licensed by Agr Dept but employed by several privately operated agencies; Destrehan Bd of Trade, agency that inspects grain for both Bunge and Cook, Delta Weighing and Inspection Bur Inc, agency that inspects for Mississippi River Grain, New Orleans Bd of Trade Inc, agency that inspects for Public Grain Elevator, and Greater Baton Rouge Port Comm, state-created agency that inspects for Cargill Co, reptdly are also under investigation; major break in grain investigation is reptd to have come with discovery of theft rings that included elevator personnel, inspection agency employes and employes of tugboat and barge cos; rings reptdly sold grain to Degelos Bros and to its affiliates, Mississippi Farmers Cooperative Assn Ltd, D & R Internatl Ltd and D & R Research Services Ltd; St Charles Grain mgr Robert Edgeworth and Public Grain mgr A N Fugett comment; illus (L)

Dem officials in charge of selection of site for party's '76 conv clearly prefer NYC over its major rival, Los Angeles; Dem Natl Chmn Robert S Strauss says com is 'more than leaning' toward selection of NYC; only matter to be settled is whether Madison Square Garden could support vol and kind of activity involved in natl conv; mechanical problems detailed; major factor in enthusiasm for NYC is cooperation and support by Gov Carey, Mayor Beame and State Dem Chmn Patrick J Cunningham, who is also chmn of site com; lack of enthusiasm displayed by Calif Gov Edmund G Brown Jr and Calif Dem party leaders seen as factor working against choice of Los Angeles (M)

NJ reptdly bearing brunt of impact of torrential rains that continue to fall in NYC met area; Gov Byrne to ask Pres Ford to declare state a disaster area; crop and property damaged described; illus of Cranford, NJ, faily being evacuated by row boat (L)

A conference of 40 Islamic countries called for the expulsion of Israel from the United Nations and all other international bodies. Page 7.

WNET will televise forthcoming Moreland Comm hearings on nursing homes (S)