The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1933-01-07
DEMANDS FOR
R. F. C. PROBE
ARE GROWING
Reports That Hoover
Friends Were Favored
Secretly Draws Fire.
BY RAY TUCKER
Times STAFF Writer

WASHINGTON, Jan. THE de-
mand for a congressional investi-
CATION Of r. F. c. operations grew
today as a result of new details con-
corning the S850,000 advance to
julius Barnes insurance company
and reports that other friends of
the Hoover administration were
favored during the period when
loans were surrounded with secrecy.
The house showed its feelings
when it adopted without roll call
the Howard resolution to make pub
lie all transactions during the
months when secrecy was in effect
Such influential members as Sen
ators Carter Glass Dem, Va
George w. Norris CRep., Neb), and
Robert F. Wagner Dem, N. ",
insist this use Of public funds
should be aired. Wagner has asked
the r. F. c. for details of the
Barnes loan.
The latest report relates to loan
of 100000 to a western newspaper
through the agency of midwestern
bank. The newspaper once was
owned by a Republican prominent
in White House circles and active in
recent campaigns. AS a former
owner, he still is financially inter-
ested in the newspapers financial
status.
Loan Is Criticised
The loan to the Barnes concern
which is the Missouri State Life In
surance Company of st. Louis
came in for new criticism because
of the resignation of M. L. Emerich
Chicago, who quit because of dis
approval of the whole transaction
Emerich is a partner Of Hall-Gar-
ten q Co., New York bankers, and
is believed to give significance to
his protest.
The series of incidents began last
July with a loan of $4,000 by the
r. F. G. to the Missouri corpora
ton. Following this transaction,
the Barnes company obtained from
three banks loan Of 100000 on its
own guarantee.
For that amount, the Missouri
firm bought the Kentucky Home
Life Insurance Company of Louis
vile. Since the Kentucky con-
Germ owned 148, 500 shares of the
Missouri corporation, it gave the
Barnes faction full control of the
latter company.
New Details Are Aired
In reSigning, Emerich disclosed
additional details of the transaction
The 100000 with which the
Louisville concern was purchased
first came from three banks on the
guarantee of the Missouri Life, after
it had received the $850000 from
the r. F. c., but on Thursday the
latter firm took over the loan. AL
though Missouri officials deny that
r. F. G. funds financed the Ken
lucky purchase, Senators Robert
Wagner and George w. Norris
think there may be a connection.
The purchase Of the Kentucky
corporation was handled by the
Equities Corporation, which is con-
trolled by Barnes, who is also
board chairman of the Missouri
Life.
Headed Grain Corporation
The Barnes invasion of the Ken
lucky company caused designations
by several directors, who maintin
he is violating agreements made in
the interest of policy holders and
regulations of the state insurance
commission. But the Barnes fac
ton controls both corporations, it
is alleged, through the aid Of the
r. F. G. loan.
Barnes was head of the Grain
Corporation during the war, and
later president of the Chamber of
Commerce of the United States. He
has been a frequent visitor and adj
wiser at the White House in the
last four years.