Stovall seeks feds’ help on cattle disease rumor
Topeka ? Atty. Gen. Carla Stovall has asked federal regulators to take over an investigation into last month’s unfounded rumor of a foot-and-mouth disease outbreak in northeast Kansas.
Stovall said Thursday that the Commodity Futures Trading Commission has jurisdiction over cases involving allegations of price manipulation. She sent a letter to Commission Chairman James Newsome in Washington.
In her letter, Stovall said because of the commission’s “exclusive” jurisdiction, “We are unable to conduct our own investigation and prosecution.”
On March 12, a rumor that nine cows at the Holton Livestock Market were infected with foot-and-mouth disease spread quickly throughout the Midwest and to the floor of the Chicago Mercantile Exchange.
Analysts estimate that the rumor cost the industry as much as $50 million nationwide after prices dropped $1.50 per hundredweight for market cattle. Prices later rebounded.
Spokesman Alan Sobba said the commission has received requests for an investigation from a few states, the National Cattlemen’s Beef Association and other interested parties. The commission hopes to make a status report April 19 when the NCBA meets in Washington.
Sobba said investigators were building a timeline of events and the commodity prices for March with the help of USDA and the Chicago Mercantile Exchange.
Last week, U.S. Sen. Tom Harkin, D-Iowa, asked U.S. Atty. Gen. John Ashcroft to investigate immediately. Harkin, chairman of the Senate Agriculture Committee, said a Justice Department would strengthen the hand of other agencies investigating the incident.
Justice Department officials would not comment Thursday on the status of the Harkin request.
Sen. Pat Roberts, R-Kan., has also asked U.S. Department of Agriculture Secretary Anne Veneman to investigate any improprieties.
State Sen. Tim Huelskamp, R-Fowler, asked Stovall to investigate, saying he wanted to know whether someone was trying to illegally manipulate markets..
Kansas Senate Agriculture Chairman Derek Schmidt said it was appropriate for Stovall to send the request to the commodities commission.
The Senate and House Agriculture committees held hearings following the incident, including review of agency responses and the effect on livestock markets.




