Evening star., 1948-01-24
PauIey Accuses
Stassen Of Seven
False Charges
Says Ex-Governor
Is Motivoted by
Selfish Ambitions
BULLETIN

today that Harold E. StaSSen
has combined ignorance and
falSehood to indict me solely
in pursuit of his own selfish
ambitions" Taking the stand
in his own behalf before the
Senate committee investigat-
ing his commodity market
transactions Mr.. Pauley pre-
sented a series of charts to
prove his points and listed
seven false statements Mr..
Stassen has made concerning
me-" He added that II intend
here and now to expose him
and the untruths he has ut
tered or implied"
BY the Associated Press
Edwin w. Pauley gets his
chance today to answer what he
calls "poppycock" charges by
Harold E. Stassen that he used
inside Government information
to gamble in commodities.
Weary from a session which ran
all day yesterday and on into the
night, Senate Appropriations Sub
committee called a hearing at 11:30
am. today to receive Mr.. Pauley's
point-by point rebuttal.
Mr.. Stassen said he would be there
to hear the California oil mans own
version of how he made $685., ,703 in
three years of speculation with
nothing more to guide him than the
news in the daily papers.
Yesterdays long session boiled
down to fiat assertion by Mr.. Stas-
hen that Mr.. Pauley trades on the
basis of inside information which
he could not have avoided having
in view of his Government connec-
tions.
AS the hearing broke up Mr..
Pauley said all he had heard from
the former Minnesota Governor was
"a bunch of poppycock."
Dworshak Resents "Insinuations."
Chairman Ferguson cut off Mr..
Pauley's attempted statement as
Senator Dworshak, Republican, OF
Idaho shouted that he resented Mr..
Pauley's "insinuations," inasmuch as
Democratic members had used up
most of the time in hostile queS-
tioning of Mr.. StasSen. Mr.. Stassen
Is candidate for the COP presi-
dental nomination and Mr.. Pauley,
former treasurer of the Democratic
Committee, is a special assistant to
the Secretary of the Army.
IT have sat here all day." Mr..
Pauley shouted as Mr.. Stassen con-
cluded replying to written questions
put to him at Mr.. Pauley's request,
land have never seen or heard Of
such bunch of poppcock."
| Mr.. Stassen'S testimony was in
large measure an elaboration of his
speeches on the subject and of pre-
vious testimony before the subcom-
mittee.
Senator Ferguson asked Mr.. Stas-
sen whether his study bears out
Mr.. Pauley's assertions that after
he took the Army post last Sep
tember 3 he began liquidating his
holdings as rapidly as was possible
without suffering heavy losses.
Mr.. Stassen said the reverse Is
true.
Additional Deals Charged.
He declared Mr.. Pauley made new
speculative transactions totaling
81 ,414,997 between September 3 and
the end of 1947, as compared with
a total market position of 81 1859 sol
when he accepted the post.
HE bought more than he Sold"
Mr.. Stassen said. HE went into the
market and bought to greater ex-
tent than he unloaded:
| Mr.. StasSen also:
/. Reiterated assertions that II
administration insiders" including
Mr.. Pauley and Ralph K. Davies.
former deputy petroleum adminis-
traitor for war, made huge profits in
commodities since the end Of the
war. He raised his previous esti-
mate of how much from $4,000, 900
to $5,000,000 He refused to name
the II, but said five are former top
Government officials.
2. Suggested the subcommittee, If
it conducts a thorough inquiry, will
turn up the names of these men
unless the Justice Department has
taken all the brokers' records"
Says Pattern Is Convincing.
i 3. Testified that he has no evi-
dence to prove Mr.. Pauley had in
side information, but declared the
pattern Of his trading in relation to
Government purchases would con-
vince any one that he had.
4. Acknowledged he has no direct
evidence which would tend to show
that Mr.. Pauley received advice
about his trading from Secretary
of Agriculture Anderson while Sec
retary Anderson was guest at Mr..
Pauley's estate in Hawaii in mid
August, 1947.
i The Agriculture Secretary himself
dashed into the hearing room just
before the afternoon session ended.
He explained to reporters that he
had been told that Mr.. Stassen had
l"accused" him of sending cable to
lMr. Pauley while he was in Hawaii
advising him to buy wheat. The
1See SPECULATION, Page A-3D
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