Evening star. [volume] (Washington, D.C.) 1854-1972, 1948-01-23
Links
Anderson Talk,
PauIey Profits
SpecuIotor Bought
AZ Speech Depressed
Grain, He Charges

Harold E. Stassen said today
that Edwin w. Pauley made
$40,175 on grain trades after q
speech by Secretary of AgricuI-
ture Anderson pushed prices
down, and $56,36o on lard and oil
deals patterned" closely to
Agriculture Department buying.
The lard trades were such as to
make unacceptable the conclusion
that they were guided by more than
coincidence" Mr.. Stassen commended
before Senate Appropriations sub
committee which is looking into Mr..
Pauley's commodity speculations.
Mr.. Pauley, wealthy oil man who
is a special assistant to Secretary
of the Army Royal, sat nearby as
Mr.. Stassen testified. Twice he
leaped up, shaking a finger, and de-
handing chance to confront Mr..
Stassen "face to face" and reply
to these falsehoods."
At the second outburst from Mr..
Pauley, chairman Ferguson pounded
the table and announced the hear
ing was recessed for lunch.
He had assured MIR. Pauley after
the earlier one that he would get
a chance to testify.
Anderson Talk Recalled.
Mr.. Stassen told the Senators that
Mr.. Pauley took advantage of an
"off the cuff" talk by Mr.. Anderson
on September 10 in which Mr..
Anderson said grain prices were noH>
realistic.
These statements, which Of
course, were not correct, caused a
temporary drop in grain prices"
Mr.. Stassen said.
Pauley Denies "Information.'
Since last September Mr.. Pauley
has been special assistant to Sec
rotary of the Army Royal. He has
acknowledged making nearly a mill
lion dollars in speculative profits on
commodities in the last three years.
But Mr.. Pauley has heatedly de-
MED that he ever had any inside"
Government information useful in
speculation, and has taken offense
at Mr.. Stassen's public charges Of
prof1ting by Government insiders
The Senate committee called both
men before 1t, but has ruled that
Mr.. Pauley may not question Mr.,
Stassen directly. It will allow him
to submit Id writing later questions
Ito be asked Stassen.
The bulk of the Pauiey profits
which Mr.. Stassen traced to the
I Anderson talk came from the pur.
chase of 100000 bushels of wheat.
Mr.. Stassen said he held 1t for nine
days and reaped profit of So, ATS.
He also bought 100000 bushels Of
foats futures on the same day, Sep
tember %, and sold it November IL
at a profit of $500, Mr.. Stassen
asserted.
He said the purchases followed
closely an informal talk by Mr.. An
pderson at Chicago in which he said
that IF the public finally becomes
aware of the facts about this years
wheat crop the bottom would drop
out of the market"
Mr.. StaSsen quoted Secretary
Anderson as saying, We've plenty
of wheat"
Says Pauiey Bought Then.
Three days later after prices had
dropped as a result of Mr.. Ander-
sons remarks, Mr.. Stassen con-
tinued, Mr.. Pauley made his pur.
chases.
I'm the following week." he con-
tinued, "the United States Depart
ment of Agriculture purchased an
extraordinary amount of wheat in
the amount of 1888 900 bushels.
which compared to an average pur-
chase of only 100000 bushels for
the preceding six weeks.
THAT same week the United
States Department Of Agriculture
purchased 100000 pounds of -four
compared with an average purchase
of $4,000, 900 pounds of flour the
preceding six weeks.
1.-THE next week following, the
United States Department Of Agri-
culture purchased 1926 900 bushels
of oats which was the first oats
purchased for 10 weeks.
"As a result the price Of grains
climbed sharply.
ION September 30, 1947, Mr..