The Waterbury Democrat., 1942-04-01

With the Army, Navy and War Production Board tearing their hair over Jesse's penny-pinching obstructionisn, and with Congress getting ready to iegislate against him, the President finally notified Jones he would have to relinquish authority over small loans. Jones protested vigorously but Roosevelt directed that the necessary execu- tive order be drafted.
 Jones sat in on this drafting conference of war production chiefs, where he made final effort to stave off the ax.
 His first move was to suggest that lawyers be called in pass on the legality of stripping his authority.
 "Jesse," said Sidney Weinberg, special assistant to Donald Nell son, "yOu've created enough b0ttlenecks, without having Q bunch of lawyers in to create any more. The President has ordered this done and under the War Powers Act he has the authority to do it. No lawyers are needed to pass on the matter"
 Jones then shifted his argument to an old favorite of his, the questionable soundness of loans to little hiisinegg men.
 Suppose these loans that will be made under the proposed new setup don't pay out" he said. "After the war you people will be blamed. We've made all our loans on sound credit r1les.g
 "Yes, but these are war times" retOrted Weinberg, land the con- trolling principle is not sound credit rules but war production needs. Further, who are you always worrying about money. After the war none of us will have much money, SO why worry about 1t. There are Q lot of other things i'm NfQ far more im- : portant."
 JONES' NEMESIS
 To witness his signing of the executive order, the President invited Senators Murray, Mont, Mead, N. r., and Capper, Kan. This was much merited recogni- tion of their long fight for little business men.
 One other man also deserved a public pat on the back, but was not invited. Probably Roosevelt didn't know him. Only a few in- siders do.
 He is Shreves Coles Badger, retiring, liberal Chicago invest ment banker, who has been quietly after .,JOnes' scalp.
 Summoned to Washington in the early days of the old OPM to help little business, Badger ran up against the iron-handed policy Of Jesse Jones in every move he made. After months of vain effort, Badger finally compiled a report on 2,00O subcontractors kept out of war production because of inc ability to get needed loans from Jones.
 Armed with this devastating document, Badger began 8 quiet but tenacious crusade against Jones, soon rad the Army, Navy WIPE and Congress lined up against him. This proved one combination the bulky Texan couldn't lick.
 When word reached Badger of the executive order taking small loans away from Jesse, he remar- ked. "WeII, I may have worked myself out of job, but It's a pleasure. Mir. Jones also has been worked out of one"
 CUTRATE HAIRCUTS
 The NvelieSt part of House de- bate on the legislative appropria- ton bill (providing funs for the operation of Congress) does not appear in the Congressional Rec ord. It was ever the Issue of half- price haircuts for congressman. and was deleted by members who feared repercussions # their con- stikuenks learned about the poodle.
 Representative Frederick Smith. a plain-talklng Ohioan, raised the Afaaalfms. ann fu@mew& aamwsn