Evening star., 1933-02-05
HEIGHT SAYSF|SH
STARTED BANK RUM
R. F. C. Advisory Committee
Chairman BIames Repre-.
sentative's Charges.
Continued From First Page.)

were ordered today by Civil District
Court to show cause on February 10
why they should not be removed.
Action was taken on petition Of IL
out-of-State creditors, who pleaded their
interests were prejudiced in favor of
privileged creditors.
The petition alleged the receivers,
Sanford Levy and Clay w. Beckner,
were not qualified to act, since Levy is
a former vice president of the company
and Beckner board member OF the
Reconstruction Finance Corporation,
largest creditor of the company
The petition charged the company
had pledged choicest stocks and hold
ings to secure a $1,400,000 loan and
for other creditors.
Sol Weiss, counsel, alleged in the
petition that the receivers had allowed
a New Orleans bank (not named) doing
business with the company, to receive
funds to apply against the company's
Indebtedness to the bank, while 200
holders Of drafts and checks against
the company in excess Of $1,000,000
were not paid.
The petition asked that the receivers
either be discharged or a third receiver
appointed to protect interests of out
of-State creditors. These creditors
headed by Clifford H. Randall of Los
Angeles. included holders of drafts and
insurance policies and winners of out
of-State lawsuits bonded by the COM
pany.
Text Of kilograms.
The text Of the exchange Of tele-
ora n1e hatuQpyo Hocbf ond EicI Follou,c
NEW ORLEANS.
February 3, 1888.
Honorable Hamilton Fish, House Of
Representatives, Washington, D. C.
Since We have never met feel some
what at loss as to how to express my
feeling concerning the statements made
by you on yesterday. I feel sure you
would not deliberately have done me
such an injustice If you had the cor
rect facts and I am therefore address,
ing you directly on the subject.
THE record OF the Reconstruction
Finance Corporation will show that /
never voted on or recommended any of
the loans to the Union Indemnity in
terests, but recused myself in each such
instance. You are also misinformed
about the Reconstruction Finance Cor
poration loan having been granted for
the benefit Of my bank because not one
dollar OF the money loaned by the Re
construction Finance Corporation in
December was used to pay off loan due
my bank existing at the time the loan
was granted.
Only basis for your information
could be that after loan was definitely
approved by Reconstruction Finance
Corporation, but before they could put
the additional security required in the
form Of mortgages in shape satisfac-
tory to the attorneys, two banks, OF
which ours was one, made temporary
advances which were repaid when the
loan was finally completed.
Welcomes Investigation.
Il assure you that personally I well
come any investigation which you or
any other authority cares to make, but
you have done me a great injustice in
lndlcting me before the country on
charges which are definitely based on
wrong information, and which you can
have verified If you wish by proper Of
ficials within a few hours.
i doubt you realize how serious in
times like these it Is for a man carry
ing heavy responsibilities to others to
De charged with such misconduct as
you inferred. and appeal to your sense
of Justice and fairness to satisfy your
self as to the true facts and then be
good enough to correst the damage
done as far as that is possible I would
welcome the opportunity to talk with
you over the telephone but hesitate to
call you unless you will wire me that
you are willing to have me call you.
r. S. HECHT."