Evening star., 1933-02-02
MILLER DEFENDS
| DAWES BANK loan
Disputes Brookhart Predic-
ton of $25, 100000 Loss
on insult Collateral.
BY the Associated Press.

BY the Associated Press.
A vigorous defense CT the SOC, ,000. 900
loan by the Reconstruction Fiance Cor
poration to Charles c. Dawes Chicago
bank was made before the Senate
Banking subcommittee today by Charles
A. Miller, president Of the corporation.
He said in answer to questions Of
Senator Brookhart, Republican, of Iowa:
Il regret I wasn't here to vote TO- 1t
and share iii that courageous and brave
action. 1t was one of the bravest
things ever done in this country. II
that loan had not been made the re-
suits would have been disastrous to the
Nation"
Brookhart said that insult securities
had been put up by the bank as col
lateral and that he was informed the
corporation would lose $25 900, 900 or
$50 100000 on the advance.
I don't know whether there will be
any loss" Miller replied. but certainly
not such a staggering loss as that"
Asks Probe Of Failures.
Meanwhile, before the House Bank
ing Committee, Representative Fish, Re-
publican, of New York, urged adoption
Of his resolution to have the Attorney
General investigate the failure CT cor
porations that have secured, loans from
the Reconstruction Corporation.
Fish told the committee that there
Is some crookedness going on" He said
the Illinois Life Insurance Co. of Chi
cago and the Union Indemnity Co. and
the Union Title Guarantee Co., both of
New Orleans. had failed within q short
10
Reconstruction Corporation.
Fish was asked by Representative
Hancock, Democrat, of North Carolina
whether r. s. Hecht of New Orleans,
a director of the Union Indemnity Co..
president of the Hibernia Bank and
Trust Co. and chairman of the Recon-
struction Corporation Advisory Com
mittee there. was not closely asso-
ciated with Senator Huey Long"
Il didn't want to bring up Senator
Longs name. but now that it has been
brought up" Fish said, Il want to say
have had hundreds of letters on this
subject"
Fish said the Illinois Life Insurance
Co.. headed by J. w. Stevens and other
members Of the Stevens family, had Sc
cured loans totaling 81 ,125 900 from the
Reconstruction Corporation.
Adequate Security Required.
The last loan was advanced on Octo-
Der %, 1892. he said, and the insurance
| company failed on November 20.
The Union Indemnity Co. and the
Union Title Guarantee Co., Fish said,
had received more than 1000, 900 al
together" He added that a portion Of
the loans to the Union Indemnity Co.,
which failed on January after receiv-
ing Government loan on December 20,
had been used Ito pay a loan 1t had
| received from Hibernia Bank & Trust
| Go. Of New Orleans
Chairman Steagall of the Banking
Committee. who Is being doomed by
Senator Long as Secretary Of the Treas
ury In the incoming administration.
said with regard to the Louisiana Sen.
ator's reported association with Hecht,
that ANY member of Congress might
get into the same situation by referring
some one to the Reconstruction Finance
Corporation for q loan"
Il have referred many myself" hs
added. He added that regardless Of
whether borrower failed the law pro-
vided that adequate security" had to
be provided.