Evening star., 1948-01-10
|MoreDataAsked
|0n Pau|ey Talk
To2 in Cabinet
Anderson, Honneeon
May Be Quizzed on
Hawaii Meeting
BY the Associofed Press

chairman ferguson SAID today
his Senate committee investigat-
ing commodity speculation wants
to know more about conversa-
tions Edwin w. Pauley had with
two cabinet members about the
time he completed a profitable
market deal last August.
The committee probably will call
Secretary of Agriculture Ander-
son and Robert E. Hannegan, until
recently Postmaster General and
head Of the Democratic National
Committee. to tell of their talks
with Mr.. Pauley at his Hawaiian
estate, Senator Ferguson told a re-
porter.
He said no date has been set for
reopening the Pauley angle.
At a press conference after the
Senate hearing, Secretary Ander-
son indignantly said that the SUBJ
ject of grain had never been men
ticned during his visit to the Pauley
estate in Hawaii He said it was
purely a vacation trip.
Probers Hear Stassen.
Harold E. Stassen, the former
Governor of Minnesota, now CAM
paigning for the Republican pres
idential nomination, told Senator
F'ergusons Appropriations Subcorn-
mittee Yesterday that about II"
administration Understanding
Mr.. Pauley-have been in the mar
kets to the extent of about $20,-
100000 and have profited by ap-
proximately $4,000,0 900 since the end
of the war. He said Mr.. Pauley
alone made $1,000,000
Mr.. Stassen said he has informa.
ton oh about eight big traders In
the administration or closely related
to it other than Mr.. Pauley, Brig.
Gen. Wallace H. Graham, the Pres
idential physician, and Ralph K.
Davies. former Government official.
Il will not name them until I am
ready to back it up with positive
proof he said, referring to the
eight others.
Mr.. Stassen said Congress should
pass law barring all Government
employees from buying stocks, bonds
or commodities of a speculative ma
ture.
Activities Are Legal.
There is nothing illegal about
such activities under present law.
Mr.. Stassen refused to name what
he called the conscientious Gov
ernment employees" who, he said,
gave him the first crucial informa-
ton" which led him to name Mr..
Pauley, now a special assistant to
Secretary of the Army Royal, as .
speculator.
Secretary Anderson. at his press
conference, promised that any en-
ploye in his department could sup
ply any information to the Senate
group without the slightest fear Of
reprisals or repercussions.
The Secretary ridiculed the Stas-
sen revelations and said the former
Minnesota Governor should reveal
any additional names if he had any
information that other persons high
in the administration have been in
the speculative market.
80 Names Revealed.
A list of 80 additional Agriculture
Department employees who, he said.
have been trading in commodity fu-
lures since January l, 1916, was also
made public yesterday. Two were
listed as Washington employees.
None of the SO were listed as being
connected directly with units OF the
department engaged in Government
grain-buying operations. Six other
names had previously been made
public.
Although Mr.. Pauley was not in
the Government last August. Mr..
Stassen said, he was not only an in
slider, but was ''in the very center Of
the inside" Mr.. Pauley took the
Army Department job September 3.
Mr.. Stassen declared Mr.. Pauley's
records show he bought 100000 BUSH
els of wheat last August IL and sold
it at $4,000 profit seven days later,
when Secretary Anderson and Mr..
Hannegan we're guests at his Ha-
waiian estate, Coconut Island.
Stassen Questioned.
Under questioning by Senator
O'Mahoney, Democrat, of Wyoming,
Mr., Stassen said he did not. mean
to imply that Secretary Anderson
advised Mr.. Pauley on the transac-
tion. He noted that when the wheat
was bought, Secretary Anderson was
aboard ship en- route to Hawaii
Mr.. Pauley testified before the
committee last December IL that he
never had any inside information
and that he liquidated his COM
modify holdings as rapidly as pos
sible after joining the Army De-
partment.
Senator Ferguson asked Mr.. Pau
ley at that time about "a telephone
call you made in the presence OF
Secretary Anderson that he did not
like-the fact that you were dealing
in the market
When Mr.. Pauley replied that he
remembered no such incident, Sena-
tor Ferguson said that Secretary
Anderson did.
Mr.. Stassen charged that Mr..
Pauley did not make full dis
closure of his transactions when
he was before the committee, and
he said also that Gen. Graham, was