Evening star., 1932-09-23
Pennsylvania Governor Says
He Will Not Limit Relief
to Three Counties.
CALLS LOAN INADEQUATE
AND RECEIPT ILLEGAL
Illinois Asks for Second So, ,000, 900
After So, 5000 Is Advanced
to Keystone State.

Wnlle GOV. GlnOrd P1ncnOt OF Penn
sylvania was issuing a new blast at the
Reconstruction Finance Corporation
and indicating he would defy its in
structions concerning distribution of the
$500, 900 advanced to his State, the
controversy over unemployment relief
loans took new turn today when I'LL
nois sought to obtain another emergency
advance of $9,050,000.
Sixteen representatives Of Illinois and
Chicago conferred this morning with
R. F. c. officials in an effort to obtain
the new advance so as to prevent clos
ing of emergency relief stations. The
Reconstruction Corporation already has
advanced $4,000 900 to Illinois.
From his home In Milford, Pa, Gov
Pinchot criticized the loan to Pennsyl-
| vania as totally inadequate" and in
dicated he would use the money where
he thought 1t was most needed, re-
gardless Of the Reconstruction Corpo-
ration's attitude He asserted the form
of receipt he had been asked to sign for
the loan is Illegal"
In its announcement last night that
| S2.500,000 had been advanced to the
Keystone State the r. F. c. stated
the money was to be used in aiding
| the needy in Philadelphia, Allegheny
! and Northampton Counties.
The Illinois delegation today was
headed by Speaker David E. Shanahan
| Of the Illinois House of Representa-
| tiveS; Mayor Anton J. Cermak of Chi
cago, Emmett Whalen, presiden. of the
! Cook County Board of Commissioners,
! and Dewitt Billman. representing Gov.
| Emmerson.
They told Fred c. Croxton, who
handles relief matters for the corpora
! ton, that unless another loan is forth
many sections OF the State must be
| closed.
Later members of the party said
| they had received encouraging treat
ment and that they haG reason to hope
some favorable action would be taken
during the day.
| At Milford today Gov. Pinchot criti-
cized the $2,50o, 900 loan fer relief In
Pennsylvania, Is a totally inadequate
advance" which rs predicated upon
the signature by me OF wholly illegal
He also indicated that he would use
the money where he thought 1t was
most needed regardless of the attitude
of the r. F. c.
Will Continue Efforts.
He also said he would continue his
| efforts to obtain a larger Federal loan
for the State.
After months Of delay" the Gov
ernor's statement said, "the Recon-
struction Finance Corporation has Of
fered Pennsylvania totally inadequate
advance for unemployment relief. It's
offer is predicated upon the signature
by me Of wholly illegal form Of re-
ceipt.
"The Reconstruction Finance Corpo-
that of the State emergency relief
board as to where relief money shall
be spent in Pennsylvania.
"The Federal relief act expressly pro-
vides all amounts paid to a Governor
of State under this section shall be
administered by the Governor or under
his direction and upon his RESPONSE
bility' No power whatever was con-
ferred upon the Reconstruction Finance
| Corporation to limit Governor to the
expenditure of relief money in particu-
| lar counties Of his State.
Will Follow Act.
Whether or not sign the receipt
when it reaches me, propose to be
governed by the act of Congress. and
| not by the dictates of the Reconstruc-
ton Finance Corporation.
I'm announcing the action Of the Re-
construction Finance Corporation. Sen
ator Pomerene falsely stated the situa-
ton as other representatives Of the Re-
construction Finance Corporation had
previously done.
"They will not deceive the people OF
Pennsylvania I shall not cease my ef-
forts to secure the relief for this State
which Congress intended it to have"
Officials Cite Law.
Pinchot's latest attack on the r. F. C.
brought no comment from corporation
! officials.
| r. F. c. officials, however, pointed 70
| the emergency relief law, which says
whenever an application under this
section is approved by the corporation
CONTINUED on Page 2, Column 6)