Evening star., 1947-12-12

PAULEY AT SENATE HEARING
Army Royal, talks. with Senate
testify before the Senate Appro
market. In the center is Sens
tors that he was operating on the
commodities market.
Less Than 81, ,0O0, 900 Holdings.
Mr.. Truman in a radio address
October S criticized the greed of
spectators who gamble on what
may lie ahead in our commodity
markets" Later, in laying his 10
point anti-inflation program before
Congress, the President asked legis-
lation to regulate speculative trading
on the exchanges.
| Mr.. Pauley testified he held some
thing less than a million dollars"
worth of commodities when he took
the Army post. .
| Later he told the Senators that
he did rather we'll" in commodities
trading this year.
| But he denied, under questioning
by Senator Ferguson, that President
Truman could have "conceivably"
known of Mr.. Pauley's activities on
October when Mr. Truman de-
clared that the cost of living must
not be a football kicked around by
gamblers speculating in the market.
Il have no reason to believe that
in any conceivable way the Presi-
dent knew that I was in the market" +"
Mr.. Pauley testified. Earlier he had
said that Il dealt in everything I
could make a profit in, in the good
old American way"
Denies Talk With Anderson.
Mr. Pauley also testified he has
not had any conversation with Sec
retary Anderson about the grain
market. He made this statement
when Senator Ferguson asked point
edly if Mr. Pauley was in Hawaii
last August when Mr.. Anderson also
was there. Mr.. Pauley admitted
that he was but said he did not
talk with the Secretary about grain.
Mr.. Pauley offered to answer all
questions, but defended his right as
businessman before entering his
present job to protect his family by
investing in goods and commodities
when the value of the dollar is fall
ing.
Senator Ferguson, after compar-
ing Mr.. Pauley's defense Of COM
modify trading with recent utter
ances of Mr.. Truman against gam
bling in grain" asked the witness If
he was referring to the President
when he said in formal statement
last night there have been loose
charges" about the effect that trad
ing in commodities is the cause of
the price situation.
Il was not" Mr.. Pauley replied.
The Official had explained earlier
that his statement of last night was
originally prepared as an answer
to Harold E. Stassen, Republican
candidate for President, who was the
first to ask Mr.. Pauley If he had
been dealing on the wheat market.
SdAB OTcdL MALL
Then you were only talking about
Gov. Stassen and Republicans"
Senator Ferguson persisted.
"Yes," Mr.. Pauley answered. II
think 1t Is we'll known that I am
for Truman and that I think he is
Ia great man."
Senator Ferguson then quoted q
recent references by the President
to gambling in grain"
Where are these gamblers III
grain?" Mr.. Pauley interrupted, add
ing that he had invested his money
legally and properly before taking
the Army post on September 3.
Then you don't agree with the
President?" Senator Ferguson went
on.
/ Il don't consider myself a gam
bier" Mr.. Pauley replied.
Senator Ferguson brought out that
Mr.. Pauley had been the Presidents
special representative abroad on the
reparations commission and wanted
to know why he did not dispose of
his market holdings while perform
ing that Government function.
Draws Distinction.
Mr.. Pauley said he did not hink
it necessary then, drawing distinc-
ton between his role as an Ambas-
Sador abroad and his present job in
the Army department. When COM
mittee members suggested that his
mission abroad also gave him an
opportunity to study the critical food
situation and the need for crops, Mr..
Pauley asked If his questioners
would carry that argument to the
point of including the legislative
branch Of the Government.
The witness said he thought those
who make the laws and appropriate
the money would be among the first
to get information on where 1t was
! to be spent.
i Chairman Bridges interrupted to
declare that If any citizen has
j charges to bring against q member
of Congress, there are avenues for
doing So"
i The chairman said members Of
Congress are leected by the people
i, and must answer to them regularly,
whereas nonelected Government
officials are responsible to Congress.
] The inquiry was touched of by
Mr.. Stassen in speech in Pennsyl-
vania Wednesday in which he said
/ that insiders" in the Truman ad-
ministration have made money trad
ing in food, and revealed that he
had wired Mr.. Pauley asking him
if he had been trading on the COM
/ modify exchange.
1916 Hearing Recalled.
Mr.. Pauley's last appearance or
Capitol Hill early in 1916 paved the
way for the departure of Harold L
1ckes from the Truman cabinet
: after more than a decade as Secre.
tary of the Interior.
At that time President Truman
! mad nominated Mr.. Pauley, q Cali
: fornia oil man, for Undersecretary
, Inf the NAVY Ny,pos{tioy, fn hirr