Evening star., 1932-07-26
Fred w. Croxton and Seven
Other Paid Workers Are
Transferred.
RELIEF ORGANIZATION
TO CARRY ON, HOWEVER
Volunteer Committee of Citizens to
Remain Active-Hoover Plans
New Set-up.

IASh1 HeHoeiS oI the paid STAN OF
the Presidents Organization on Un-
employment Relief, including Fred w.
Croxton, It's assistant director, we're
today transferred to the reconstruction
Finance Corporation for the purpose Of
supervising loans to States from the
s3oo,O0o,OOO fund provided in the re-
lief bill.
The corporation, it was explained
today, has received word that at least
30 States will apply for loans as soon
as the formal routine for making the
advances has been established. This
has forced the corporation to use its
discretionary powers of calling for an
unemployment survey of the country,
1t was said, in order that each State
may receive proportionate treatment.
Clifford Approves Transfer.
The eight men and women on the
staff Of the Presidents organization
were reported to be familiar with this
survey work. and the corporation yes
national relief director appointed last
Summer by President Hoover, and he
consented to the transfer of Mr.. Crox-
ton and the following others:
E. p Hayes, assistant to Mr.. Croxton;
Rowland Haynes, one of the country's
outstanding relief workers, and who has
been directing relief in the Central
States during the last year; Frank w.
Connor Of Washington. publicity direc-
tor Of the relief organization, and Miss
Olga A. Jones of Columbus, Ohio, who
will act as assistant advisers, and three
members Of the clerical staff.
At the same time a joint statement
was issued by Mr. Clifford and members
Of the Reconstruction Finance Board:
"The board urged that Mr.. Croxton be
released to the corporation so that 1t
might have the benefit of his wide
knowledge of the relief situation
throughout the country and the back
ground Of experience he has acquired in
his work with the Presidents organiza-
ton"
1t was said that Mr.. Croxton's new
position will be that of assistant to the
directors of the corporation. His first
duties, 1t Is understood, will be to check
pending applications by States against
States as catalogued by the Presidents
organization.
Committee to Garry On.
The Presidents organization will not
be dlSbanded as the result of this trans
fer and the failure Of Congress to ap-
prove its 1888 appropriations. It was
said at its headquarters today that Mr..
Clifford and his volunteer committee of
108 leading citizens will carry on as
usual
1t is also known that President
Hoover does not contemplate allowing
nTOQniZafinT1 fn frsrra
and it is expected that as soon as he
nils the two dictatorship vacancies in
the Reconstruction Finance Corporation
he will start on a reorganization plan
for the Clifford organization. Under
the law, the President must appoint the
two directors within 10 days otter the
signing of the relief bill, which he did
last Thursday.
The corporation expects that some
States Will request the maximum loan
under the law, which stipulates that
not more than IS per cent of the total
fund. or $45,OOO.00O may be advanced
to any State.
Should half a dozen States determine
that they need the maximum loan, and
these be granted indiscriminately, an
official pointed out today, the fund
might be exhausted almost immedi-
ately.
The date when loans will be made
Is still undetermined. The following
States have signified that they would
request immediate loans on these
amounts: Pennsylvania. ms ynn Louisiana and
100000; Illinois, $4,000, 900; Indiana.
$4,000, 900; Kansas, $6,000,000; Mich
igan, $11,800,000; Missouri, 100000;
Utah, S2.OO0,OO0; West Virginia, $780,
900; Arkansas, 50, ,750 900, and Texas,
100000.
Ask Construction Loans.
So far as Is known the corporation
loans from fund of s1.500, 600, 900
authorized in the relief bill for loans
to States, municipalities and public
agencies for use in building self
liquidating projects. 1t desires first Of
all to start funds moving for the
urgent direct relief work. The follow
ing States have signified that they
would request loans for construction
work.
$3.50. 900; Montana, s1,5oo, 900; Ten
nessee, $5,000000; oregon, $3,850,000;
Colorado, $12,500,000.
Gardner Cowles, recently appointed
director of the finance corporation. told
President Hoover at the White House
late yesterday that the corporation is
being flooded with requests for aid from
the few credit reserves.
I'VE will have to go SLOW" said Mr..
Cowles. following his conference with
the President.
He explained that although experts
would help in wedding out the appeals,
care would have to be exercised In ex-
tending aid. He said that II the $780,
m Hz,- 1faf fe -
through the Winter, I'VE should not
plunge headlong into giving it away
right now."
Mr. Cowles said he had noted a ten
dency already of local organizations to
shift the relief burden to the Federal
II hope" he said, that
this Federal direct aid won't cause that
tendency to spread. We will have to
check it at the start Cities, counties
and States still should take care Of
their own as far as possible"