Evening star., 1943-07-18
Jones Clings to Many Jobs

of living in Latin America and for
placing the Government in control of
America industry, with Jones functioning
heroically as bulwalk of private enter
prise. Outside observers suggested two
other probable sources of discomfort. The
first is that BEW is one of the few war
agencies which dared exercise to the full
the plenary powers vested in it by the
President. The other was that BEW had
been guilty of heresy in reversing the
orthodox relations of banker and bor-
rover.
BEW's aggressive procedures brought
II into conflict not only with RFC but
with the State Department. In the lat
ter case, the President intervened with
a clarifying order giving primary re-
sponsibility to the State Department in
matters of foreign policy and to BEW
in matters Of business judgment. Will
liam L. Clayton, Texas cotton magnate,
who Is Assistant Secretary of Com
merce, lamented to the Byrd committee
that BEW not only took RIGS money
but insisted, against all financial eti-
quette, in telling the banker agency
when, where and how it must be spent
In such plight the bankers only re-
course would be to stall of the signing
of checks as long as possible. Accord
ing to Wallace, Jones and his employees
made habitual use of this device.
Clayton seemed family embittered be-
cause Perkins no longer signed drectives
n h,If hoI ho
to Morris Rosenthal, chief of BEW's
Office Of Imports, and even to the lat
ter's assistant, Arthur Paul. So far as
he knew, Clayton protested, RFC would
have no option but to pay If Rosenthal
or Paul sent in draft for billion
dollars
Some light may be thrown on the prob
ing between Jones and Wallace on the
one hand, and on the other between
Jones and William M Jeffers, rubber
director of the War Production Board.
Just as BEW stripped three RFC sub
sidiaries of their operating functions, SO
Jeffers deprived RIGS Rubber Reserve
Co. of the administration of the syn
IIIctlC plOS1 GILL; 4Cv oCACAo uAA0
Jones are on brotherly terms.
The RF'C explanation is that Jeffers
Is following to the letter the original
Jones map for creating an artificial rub
ber industry. Another account has it
that Jones was reconciled to losing this
area because Jeffers, under a White
House order, at the same time divested
BEW of foreign rubber procurement.
Chiefly, it appears, Jones and Jeffers, as
exponents OF big business, talk in identi-
cal language. But Psychological gulf
as wide as the distance from pole to pole
separated Jones from Wallace.
Gets Wide Authority.
The Office of Economic Warfare has
obtained for the moment and perhaps
permanently the financial autonomy
which Wallace had long demanded in
vain for the Board of Economic War;
fare. Pending congressional provision
of other means, the President directed
the Reconstruction Finance Corp. to
turn over to the ONCE of Economic
Warfare all funds necessary to carry
on its operations"
1t is possible that the same end would
have been obtained in another way by
BEW. After Congress returns from re-
cess in September, Wallace and Perkins
planned to urge legislation appropriate
ing operational funds directly to BEW.
instead of through RFC and its SUBJ
sidiaries. Some observers doubted that
Jones would contest this move, which
would have saved his adored account
books from quantities of future red ink.
Crowley is not regarded as identifl-
able with either faction in the Wallace
Jones row. A resident of Madison,
Wis, and Federal jobholder since 1884,
he ranks as liberal and, at least nomi-
nally, as a New Dealer. Essentially q
man of business, however, listing him.
self in ''Whos Who" as "a corporation
Official" Crowley is closer in philoso-
ply to Jones than to Wallace. His ac-
tivities in Washington have all dealt
with money. AS alien property custodian,
he has carried on campaign Of eco
nomic warfare of his own, chiefly in
Latin America.
sence from his position as board chair
man OF the Standard Gas IL Electric Co.
of Madison. He Is q director of the
National Guardian Life Insurance Co.
and was formerly president of the Cen
eral Paper & Supply Co.
The 10-man policy making Board Of
Economic Warfare was abolished by the
executive order, and its functions were
transferred to the Once Of War Mo-
bilization, under James F. Byrnes.
Qr1nted b. speeisl afraneoeaant With the -
i0uis toSe-6l1ateh.)