Evening star., 1948-01-24
Speculation
Continued From First Page.)

Secretary was told that Mr.. Stassen
had made no such charge and he
thereupon sat down quietly. He did
not testify.
FL Questions Submitted.
MIR. Pauley was given the op-
portunity at the night session to
present questions to Mr.. Stassen by
handing them in writing to Senator
Ferguson. He submitted q in all.
This was the first:
DO you accuse Pauley Of trad
ing on the basis of inside informa-
tion?"
Il do" Mr.. Stassen replied quiet
ly as Mr.. Pauley, sitting nearby,
froWned.
IF answer to question No. / is
yes what specific items of inside
information did Pauley trade on?
When did he get them?" Senator
Ferguson asked, reading the next
question submitted
Continuously as he served as spe-
cial reparations) ambassador of the
United States, as he served as assist
ant to the Secretary of the Army
and as he associated with Govern
ment officials" Mr.. Stassen replied,
adding:
HE couldn't carry on his duties
officially without having informa-
tion that he could use privately for
profiteering in food"
Green Protests.
Senator Green, Democrat, of
Rhode Island protested that Mr..
Stassen had no proof that Mr..
Pauley used his knowledge in trad
ing. Mr.. Pauley has specifically
denied that he did so.
"He had top level knowledge Of
what this Government was going to
do on commodities this country was
going to purchase and ship to for
eign countries Mr.. Stassen replied.
He added that it didn't seem rea-
sonable to assume that Mr.. Pauley
would disregard this knowledge
when he was specializing on the
markets.
II think one of the truest things
Mr.. Pauley testified to before this
committee was that he was not
gambling" Mr.. Stassen said.
Another question concerned Mr..
Pauley's wheat holdings. Senator
Tydings, Democrat, of Maryland had
brought out at the afternoon ses-
sion that Mr.. Pauley sold out his
wheat holdings at a4-cents-a-bush-
ell profit, whereas he could have
made 80 cents bushel If he had
held it. Mr.. Stassen contended, as
he had earlier, that Mr.. Pauley
merely switched to oats.
Inside Information Charged.
Senator Green asked if Mr.. Stas-
sen charged that Mr.. Pauley had
inside information" for his deal
ings in oats.
Yes the witness replied.
He contended that, with the same
money, Mr.. Pauley could buy three
times as much oats as wheat land
make half again as much profit
Senator Ferguson read, as Mr..
Pauley's next question, the follow
| ing:
IF answer to question S (about
Mr.. Pauley's lack of wheat hold
ings) is in substance that Mr.. Pauley
held other grains, how do you &C
count for the fact that his last
transaction before the heavy Janu-
ary purchases was a sale of 100000
bushels of oats on December 81,
1946?"
That's a December oats future
that you must sell in December or
must do something about it" Mr..
Stassen replied.
Knew Governments Operations.
AS question No. 7, Senator Fergu-
son asked:
do you accuse Pauley of having
advance inside knowledge of the
heavy Government purchase at the
end of July, 1947?
I'm a general way" the witness
replied. He knew the Govern
ment's operations.
The next question on Mr.. Pauley's
behalf was:
DO you regard the holding of a
commodity for more than six months
as an in and out trade?"
ut can be moving in and out OF
the market, yes" Mr.. Stassen re-
piled. specifically, I have never