SENATOR MOSS SUMMARIZED THE ALLEGATIONS MADE BY A PREVIOUS WITNESS, A FORMER OFFICIAL IN THE ILLINOIS DEPARTMENT OF PUBLIC AID, AND OTHER COMMITTEE MEMBERS STATED THEIR CONCERN THAT THE PROCEEDINGS BE CONDUCTED AS A HEARING, NOT A TRIAL. THE DIRECTOR OF THE ILLINOIS DEPARTMENT OF PUBLIC AID DENIED ALL ALLEGATIONS OF MISCONDUCT IN A DETAILED STATEMENT. HE WAS QUESTIONED AT LENGTH CONCERNING ATTEMPTS TO INTERFERE WITH THE OVERSIGHT FUNCTIONS OF THE ILLINOIS STATE MEDICAL SOCIETY, HIS OPINION OF THE WITNESS, DATA SUBMITTED BY HIS DEPARTMENT FOR GENERAL ACCOUNTING OFFICE AUDITS, AND POSSIBLE VIOLATIONS OF THE HATCH ACT. A FORMER SPECIAL COUNSEL TO THE DIRECTOR OF THE DEPARTMENT OF PUBLIC AID, A FORMER HEAD OF THE DEPARTMENT OF PUBLIC AID, AND A CHICAGO LAWYER ALL TESTIFIED THAT THE ALLEGATIONS OF POLITICAL INTERFERENCE WERE FALSE. THE APPENDIX CONTAINS MATERIALS SENT TO THE DEPARTMENT OF JUSTICE BY THE COMMITTEE WHICH SUMMARIZED THE ALLEGATIONS, CORROBORATING EVIDENCE GATHERED BY THE COMMITTEE STAFF, AND RESPONSES BY STATE OFFICIALS. TELEGRAMS AND STATEMENTS FROM OTHER INDIVIDUALS DENYING THE ALLEGATIONS ARE ALSO APPENDED. (MJM)