Evening star., 1943-07-18
Jones, Despite Curtai1ed Duty,
Still Clings to Domestic Tasks
By Richard L. Stokes.

Why is Jesse Jones' and how did he
get that way?
Such are the questions on many a
tongue now that the 69-year-old Fed
eral lender appears to have beaten of,
with minor losses, another snatch at
his official pelt. The latest hunt and
the most savage, was captained by
Henry A. Wallace himself, who charged
the Secretary of Commerce with OBJ
structing the Board Of Economic War;
fares procurement of strategic mate
rails.
Experts on Capitol Hill reverently pro-
rounced the Vice Presidents knife-play
to have been "the most artistic piece Of
ekinning" that Washington had beheld
in a blue moon.
When the dust of battle cleared, all
could see that the Texans fur was
tattered and slashed. Nevertheless, it
continued to hang upon his bruin-like
frame. Certain areas had been stripped
away He had lost command of several
defense and war agencies of the Re-
construction Finance Corp, and with
them financial domination Of foreign
economic transactions. But paws of iron
still clasped eight or nine of his IA
Federal jobs.
He remained in the cabinet, as Secre-
tary of Commerce. Untouched was his
rule as banker for important military
and nonwar activities on the home
order of Thursday night specified by
name four RFC subsidiaries which were
to be taken away-the United States
Commercial Co., which has financed
preclusive buying; the Rubber Develop
ment Corp, banker for overseas rubber
procurement; the Petroleum Reserve
Corp. and the Export-Import Bank OF
Washington.
Retains Domestic Duties.
The order deprived Jones, in addition,
of all other RFC subsidiaries engaged
In financing foreign purchases and i'm
ports" These are the Metals Reserve
Co. and Defence Supplies Corp. Their
major business, however, has been do
nestic. Apparently he will retain con-
troll of the Defense Plant Corp, the
foreign activities of which have been
small, but which has spent billions of
dollars within the United States. Re
naming unquestionably in the Secre-
tary's hands are the RFC Mortgage Co.,
the Federal National Mortgage Associa-
ton the Disaster Loan Corp. and the
War Damage Corp.
Most of all, Jones had the satisfaction
of witnessing the downfall of two of his
most inveterate enemies in the admins
tration, Wallace and Milo R. Perkins,
executive director of BEW.
1t was Wallace, in fact. who emerged
from the encounter licking the more
painful wounds. The Board of Eco
nomic Warfare, of which he was chair
man, was abolished. A new agency, the
Office of Economic Warfare. was set up
under the direction of Leo T. Crowley,
53-year bachelor from Wisconsin,
who Joined the administration in 1884
as chairman of the Federal Deposit In
slrance Corp, and was appointed
alien property custodian in March,
4
tossed out neck and crop from the do
main of economic warfare. Any ambl-
tions he may have entertained to serve
once more AS running mate of the
Democratic presidential nominee, in
1914. are considered to have been
blasted.
This, by the way. was the second
~, loI cl,
from under him. For eight weeks he
was chairman of the forgotten and un-
lamented Supply Priorities and Alloca-
tions Board, which replaced the Office
of Production Management on Novem-
Der 49, 1941, and was superseded, in turn,
on the following January Is, by the War
Production Board.
For Jones it was perhaps the closest
In a long series of narrow escapes. Again
and again, in connection with item after
item of the war effort-notably crude
rubber. synthetic rubber and alumni
num-he has heard raucous demands
for the mailing Of his hide to the door.
But the more the fleece was threatened,
the more snugly did it tighten about his
shoulders.
Outlives All Assaults.
In the sense that his fellow-TeXan,
Speaker Sam Rayburn of the House. is
a popular man, Jones is not personally
beloved. AS the Vice Presidents attack
merely emphasized, he has potent enc
mics in high places. Some enjoy access
to the Presidents ear. But Jones has
outlived every assault, and so expanded
his realm of influence that he has some
times been described as the fourth
branch of the Government the others
being the executive, legislative and
judiciary.
Some day he may be asked what he
accomplished under the New Deal and
In World War II. similar question,
with respect to the French Revolution
was put to one Of its chieftains. In the