Evening star., 1948-01-25

mental agency. RenefnDer he
told you that he obtained his in
formation about my transactions
only from Government employees.
d" Since the Government receives
no information about dealings in
hides, since the Government buys
no hides, what data did these Gov
ernment employees have to give
him?"
When Mr.. Pauley finished, the
hearing recessed for late lunch.
1t was at this point that Mr. StasSen
stood up and said that Mr.. Pauley's S
defense amounted to a confession
of guilt.
Senators Question Pauley.
At the late afternoon session,
Senators Ferguson and Dworsbak,
Republican of Idaho, questioned
Mr.. Pauley to bring out these state
mentS:
l. That Mr.. Pauley did not tell
his broker until about a week"
after he took his Army post last
September that he had agreed
to liquidate his commodity holdings,
Mr.. Pauley insisted over and over
that he had done just that-"iqui-
dated my holdings in an orderly
manner consistent with the six
months capital gains statute" He
defended the 16 commodity pur-
chaSes after that date as part of
the liquidation process.
2. That Mr.. Pauley had "dis-
cussed" market transactions with
Ralph K. Davies, former Petroleum
Administrator for Oil whose name
has appeared on several lists of big
commodity traders.
g. That he had discussed Mr. Stas-
sens original telegram to him with
Gael Sullivan of the Democratic Ma
tional Committee "or someone down
there" because he considered it a
political attack on the Administra-
ton" In the telegram, Mr.. Stassen
asked Mr.. Pauley if he had been in
the market ,s--z---. .--.. -s-.,.-,s~-
4. That he advised my friends" to
buy in an imitation period "and it
is still good advice until Congress
passes price control" He read the
committee members lecture on the
needs for such controls.
Intend to Return to Market.
5. That he will be right back in
the market" when he gives up his
Army post, which he expects to do
shortly" unless price controls are
adopted.
6. That he was satisfied that ''on
my honor, I have not been" un-
ethical in dealing in the market
while holding his Army post.
Mi. Stassen submitted written
questions to Mr.. Pauley through
Senator Ferguson. Mr.. Pauley had
answered most of them dealing with
his transactions since he took his
job, but he reiterated his denlals
that he was liquidating his &C
counts by such technical market
operations as hedging, short COW
ering or blocking in earlier profits.
Late in the day, Mr.. Stassen,
pointer in hand, took the floor to use
Mr.. Pauley's own charts to charge
the Agriculture Department with
having purchased lard in the sum-
mer of 1947 in IAN unusual, excep-
tional, inadvisable" manner which
had resulted in running up prices.
He again intimated that Mr.. Pauley
had inside knowledge OF these pur-
chaSeS.
Mr.. Stassen charged that the list
of traders in lard, made public by
Secretary Anderson, showed that
"only seven" traders in the United
States rode on through to make
high profits, OF these seven, one
was Mr.. Pauley and four others
were his mother-in-laW, the wife
of his broker, farm concern owned
by his broker and his friend Mr..
Davies.
Sees Prices Boosted.
at sincerely believe" Mr.. Stassen
said, that if the purchases had been
spread over a period of time prices
would have stayed 10 per cent lower
and food prices in general would be
10 per cent lower today
With Mr. Pauley sitting almost at
his side, Mr.. Stassen charged that
Mr.. Pauley's greatest entrance into
the speculative market in the past
three years was after he became as
sistant to Secretary Royal and told
him he would get out Of the mar
ket."
Mr.. Pauley retorted that Mr.. Stas-
sen had made "a political state
ment."
Mr.. Pauley will discuss the in
vestigation in radio interview at
12:15 pm. today over station WINK.
UHU - n n