Evening star., 1947-12-13
Senators Seek
Further Details
From Pau|ey
EorIy Ruling Pledged
On Move to Widen
Speculation Probe
By the Associated Press

The Senate Appropriations
Committee today promised an
early decision on whether to
touch off a full-scale investiga-
tion of commodity market spec
ulation by Government officials.
The group has decided in any
case that it wishes to hear further
from Edwin w. Pauley, special as
sistant to the Secretary of the Army,
who already has disclosed himself
as a speculator in the million dollar
class. The date of the next ap-
pearance by Mr.. Pauley, former
treasurer of the Democratic Ma
tional Committee, has yet to be
fixed.
Chairman Bridges said the de-
cision whether to expand the in
quiry will be made after the COM
mittee examines reports from the
heads of five Government depart
ments on whether any of their per-
sonnel are using inside knowledge
to profit in the grain markets.
Senator Bridges said this probably
will be done early next week, since
the committee has been advised that
checks are under way in the State,
Treasury and Agriculture Depart
ments. The committee has asked
for similar information from the
departments of Commerce and Ma
tional Defense.
Pauley Denies "Impropriety."
Mr.. Pauley told the committee
yesterday that there was mo i'm
propriety'' in his trading In COM
modities.
He said he has disposed Of nine
tenths of his holdings since he be-
came Secretary of the Army Roy
alls aide September 3 and that as
a result he is 100000 worse of"
than he might have been had he
retained them.
He agreed to come back later with
a record of all his commodity trans
actions during the period he has
been in Government service. He
told the Senators his holdings when
he came to the Department of the
Army were something under 81 ,000,-
900.
"If the indications are that q
thorough investigation should be
made" Senator Bridges said, Ger
tainly this committee isn't going to
do it. We are going to be too busy
after the first of the year to spend
couple Of months on this"
He refused to speculate on what
other Senate committee might be
asked to take over.
Bridges Lists Inquiry Subjects.
In addition to the reports from the
Government departments, Senator
Bridges continued, his committee
wants to look into:
/. "The sources of information i'm
parted to others by those in the
know which we haven't inquired
about"
2. A list of large grain traders
which the committee has heard is
in the hands of Secretary Of Agri-
culture Anderson and the Commod-
ity Exchange Authority.
Senator Ferguson, Republican. of
Michigan said ]. M. Mehl, admins
traitor of the authority, told him the
law forbids forwarding the list to
Congress.
Senator Ferguson insisted the
compilation of traders buying more
than 100000 bushels of grain on one
market was made specifically for
the information of Congress.
Senator Bridges said he agrees
with Senator Ferguson, and that the
committee is going to take it UP
with Secretary Anderson himself.
No Need for Congress Probe.
| The committee chairman said he
sees no need for an inquiry into
possible speculation by members OF
Congress or the judiciary as sug-
gested by Mr.. Pauley and Secretary
Royal.
Discussing his commodity trading
in two-hour session with the CON-
mittee yesterday, Mr.. Pauley said
he held stocks of corn, oats, cotton
seed oil, lard and hides. He added:
"I dealt in everything I could
make profit in, in the good old
American way"
But he denied fatty that he has
had access to any information as
an official of the Department Of
the Army, or earlier as Mr.. Tru-
mans special reparations repre-
sentative, which might have guided
his speculations.
Talked With Taft About Job.
He told the committee that when
Mr.. Truman and Secretary Ander-
son condemned grain speculation
publicly as gambling in human mis-
(See PAULEY, Page A-2D
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