Evening star. [volume] (Washington, D.C.) 1854-1972, 1940-09-22

In Jesse Holman Jones, WHO WAS SWOIL
In as Secretary of Commerce on Thurs
day the Commerce Department has as
its new head a man who probably knows
more about business and the problems
and points of view of American bust
nessmen today than any other high
Official in the Roosevelt administration.
In Texas, long before he became a
national figure, Mr.. Jones had demon
strated his business acumen through
the promotion of scores of successful
enterprises.
From 1888 to 1899, as chairman of
the Reconstruction Finance Corp, he
directed the disbursement of more than
Sl0000,000000 in loans to banks, rail-
roads and industry. In supervising these
lending operations he exercised potent
influence on the economic life of the
United States, and obtained knowledge
Of business conditions throughout the
country which has made him the envy
Of his New Deal colleagues.
Texas Eyes on Him Early
Emerging from the panic of 1907 as
Jesse Jones, the builder, he was already
His vision and dynamic energy were
leading factor in the development of
Houston into a metropolis with popu-
lation of nearly 100000, In Houston he
owns several score buildings, including
the Rice Hotel, several theaters, news
paper and couple of radio stations.
He has a large stake in many other
business enterprises, both in Houston
ana other Texas cities.
In 1924, when the fortunes of the
Democratic party in national politics
were at low ebb, Mr.. Jones became
finance director of the Democratic CAM
paign. Four years later he landed the
Democratic convention for Houston, an
achievement that almost overnight Cata-
pulled him into the national scene. AS
the partys standard bearer, the con-
vention nominated Alfred E. Smith of
New York. In the 1928 campaign he
served as chairman of the Nation Com
mlttee's Advisory Finance Committee.
AS part of his counter-o offensive
against the depression, President Hoover,
in 1882, decided to revive the War
Finance Corp, in the form of the Re-
construction Finance Corp. In picking
members of the R. F. c. board 1t was
necessary for Mr.. Hoover to consult
the leaders of the Democratic party IN
Congress-. One of these was John ~
Garner, then Speaker Of the House. Mr..
Hoover submitted q list of five men to
Mr.. Garner and asked him to indicate
his choice. The name of Jesse Jones
was last on the list Mr.. Garner SAID,
''Mr. President, that's a kangaroo list
What do you mean?" Mr.. Hoover re-
piled. Because all its strength is IN
its headquarters" Jesse Jones received
the appointment.
Biggest Lender in History.
In 1888, after Franklin D. Roosevelt
became President, the R. F. c. was ex-
banded, its functions broadened and
Jesse Jones appointed chairman. Since
its establishment eight years ago, the
r. F. c. has exerted a far-reachlng in
fuence on the economic development OF
the United States. 1t has loaned money
to wide variety of borrowers-from
banks and railroads to small business
firms and sharecroppers. In addition
to more than S100O0,0OO00O loaned to
private borrowers, the R. F. c. has
allocated approximately $1,000 900 900 to
various Government agencies.
In the magnitude and diversity of its
operations, it probably ranks as the
greatest money lender in history.
Few Government agencies have been
as successful, and few have been less
criticized. Republicans and antl-New
Dealers usually have a good word for
the r. F. c. OF the money loaned up
to the present, approximately rs per
cent has already been repaid Bad
loans-those on which there is little
hope of repayment-amount to about
S100000,000 a small percentage COM
pared with total disbursements. Ac-
cording to its officials, the R. F. c., after
deducting bad loans and other expenses,
has earned about Sl75,0O0,00O.
Despite the long hours and the heavy
responsibilities, Mr. Jones has thoroughly
enjoyed his job as Uncle Sans No.
lender. AS Secretary of Commerce he
will continue as Federal Loan Admins
traitor. 1t was on this condition he &C
copied place in the cabinet.
Has Big Defense Role.
With the reorganization of govern
mental agencies last year Mr.. Jones be-
came head of the new Federal Loan
Agency He is still member of the
board of directors of the r. F. c., and
his control over its activities is probably