Detroit evening times. (Detroit, Mich) 1921-1958, 1943-03-20
Gravy Train
Pegler Says
Tells How Union Officials
Son Grows Wealthy

Tells How Union Officials
Son Grows Wealthy
BY WESTBROOK PEGLER
II ANSAS CITY, March 10 -
IN What evidence have we,
then, that Harold Franklin. the
son Of the president of the boil
ermakerS union, is and for II
years has been receiving a rake
of from the premiums paid by
the union members on compul-
sorry life insurance
Young Franklin denies all and
William r. Walter, the Seere.
tary-treaSurer of the union,
which has national headquarters
in Kansas City. Kan. insists he
has no knowledge of the fact.
Franklin's father says nothing.
First we have photoStats 81
various documents in the deal
between the unon and the Occi-
dental Life Insurance Co OF
California. signed by the elder
Franklin and Waiter. There IL
also a photoStat of young Frank
Inns commission agreement with
the company, fixing his rakeoft
on insurance which the workers
are compelled 10 buy failing
which they are refused employ
ment in Shlpyards building YES
sells for the war.
TO co back 10 the start, there
is on file in the l.. 6. District
Court Of Kansas suit by young
Franklin against the Chicago
National Life Insurance Co. IN
which Franklin admitted the
company paid him S2S,J46. 10 in
commissions on the group inSur-
ance carried by his fathers
union and demanded Si7, 1O0.16
more.
He based his claim on his
services in writing this inSur-
ance business for the company
and appended his contract IL
began oct. ]. 1926 No term
was stated and a year later the
company, finding the agreement
improbable when II had 10 pay
the union presidents son 10 per
cent Of the premiums on COM
pul>orN insurance and Is per
cent on voluntary policies, made
new arrangement.
Thereby Franklin got 81 900 a
month for year and 200 shares
OF stock IN q company.
4 6 RECENTLY As last August.
Young Franklin took part in
another lawsuit which IS pending
on appeal 10 the L. &. Circuit
Court IN Denver In that case.
another insurance company. the
American National Of Dallas,
which had succeeded 10 the buSi-
ness when Chicago National re-
tired, recounted that il had
insured the IS. 600 members
under a group contract.
The contract ended July 7,
194l when President Franklin
took it away and gave tho huSi-
ness 10 his son new connection,
the Occidental.
In that suit. the American
Natlona asked for a declaratorv
judgment 10 tho effect that
young Franklin had broken his
contract as agent and that the
company owed him nothing The
petition said he had been paid
$4,000 cash and 25 monthly
instruments Of $500 each, or
Sl7.5OO
Now. the American Nationals
petition said Franklin was de-
SIS a+AA rr1orr mt w7rTtrt-
not bring tho dispute In issue IN
court Therefore, the company
asked the court 70 decide the
matter one way or another and
this the court did with a ludg-
ment for the COMPANY I
DIT before the case went 70
~ trial young Franklin made
an affidavit which rcfuteS the
present denlalS Of himself and
Walter and shows he was agent
for tho Occidental. lie thought
Fedora Judge Richard J. Hop
kInS was preWdIced against him,
and asked that another nudge he
assigned 10 hear the suit
As : n wing UdiCC he
quoted Judge Hopkins As having
asked him during the hearing ~
a previous case. "Why do YOU
think YOU are entitled IN 80 much
money for what YOU did: What
did YOU do Ia earn such n largo
amount Of money? Why are Won
claiming sum Of money en-
tirely out Of proportion to the
time YOU spent and the work
you did ."
And then. young Franklin
swOre he represented Occidental
IN tho insurance deal with his
fathers union
IT IS easy 10 understand why
Il both FranklinS and Walter
would prefer that the young
mans insurance business with
tho union he kept quiet The war
workers all over tho country
who find. on applying for Jobs.
that they must Join tho union
and buy insurance through The
son OF the union president.