Evening star., 1948-01-25
.Stassen, PauIey
Trade Charges
.AtGraiinHearing
Protest of Innocence
Is Confession of Guilt,
Candidate Declares
By ChoImers M. Roberts

The battle between Edwin w.
Pauley and Harold E. Stassen
over Mr.. Pauley's commodity
market speculations reached a
climax before a Senate commit
tee yesterday in a hot exchange
of charges and a heavy atmos-
phere of politics.
Mr.. Pauley, special assistant to
Secretary of the Army Royal,
charged that Mr.. Stassen, Repub-
lican presidential candidate, has
combined ignorance and falsehood
to indict me solely in pursuit of his
own selfish ambitions"
To which Mr.. Stassen, who first
brought Mr.. Pauley's commodity
trading activities to public atten-
ton, replied in a dramatic face-to-
face committee room scene:
I'm his proteStations of innocence,
he has actually confessed his guilt. :"
No New Date Is Set.
After five and half hours of
hearings by the Senate Appropria-
tions Subcommittee investigating
speculation by alleged Government
insiders" the committee adjourned
without setting date for another
public hearing. But Mr.. Stassen,
as he left, said:
"Our investigation is continuing
into the others among the II I
stated were insiders and If we can
find evidence to prove case in
court, we will make public their
names" Mr.. Pauley was one of the
II in Mr.. Stassen's list.
When the hearing began at noon,
Mr.. Pauley read blistering state
ment against Mr.. Stassen, charging
repeatedly that the former Mime
sofa governor has uttered false
hoods" about him. AS Mr.. 'Stassen
sat calmly by at one end of the
huge committee table, Mr.. Pauley
read his charges and presented a
series of multi-colored charts to
prove that his transactions had no
relation to inside" information.
Again and again, he said he had
no such information.
Asks to be Cleared.
- He declared he had been Serious
ly and perhaps irreparably harmed
by Mr.. Stassen's falsehoods and un-
founded charges"
Mr.. Pauley demanded that the
Senate committee clear my name
OF the vicious charge that I ever
received or profited from inside in
formation"
He said that the Information
which enabled him to make 1892, 703
in the markets during the past three
years was available to anybody who
reads the newspapers.
Every time Secretary of Agrt-
culture Anderson or some other
bureaucrat issued a statement say
ing that prices were going to drop,
I increased my long holdings" he
added. "It paid very good divi-
dends."
Committee members appeared
split strictly along political lines in
their attitude toward Mr.. Pauley,
a former Democratic National Com
mittee treasurer. The political at
mosphere entered into many COM
mittee question and witness reply.
At one point, obviously referring
to Mr.. Stassen and to Chairman
Ferguson, Mr.. Pauley said:
II have no ambitions for the
presidency or the vice presidency"
Seven Statements Listed.
Mr.. Pauley said he intended to
"expose" Mr.. Stassen land the un-
truths he has uttered or implied" :"
He listed seven false statements
Mr.. Stassen has made concerning
me" and charged that the former
Minnesota Governors Ignorance
of grain trading and commodity
transactions" was "as shocking as it
is abysmal." ....-
Saying that "the record is full" Of
untruths about him, Mr.. Pauley
listed these as some of the bigest'::
First: That the pattern Of my
trading followed the pattern OF Gov
ernment purchases.
Second: That my pattern was in
and out @of the market.
Third: That I profited on the
lSee SPECULATION, Page A-5)