Detroit evening times. (Detroit, Mich) 1921-1958, 1943-03-19
Gravy Train
HliehbaIIing,
PegIer Says
Tells How Union Officials
Son Grows Wealthy


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
off from the premiums paid by
the union members on compul-
sorry life insurance
Young Franklin denies all and
William f.. Walter, the Secre-
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 OF
various documents in the deal
between the union and the Occi-
dental Life Insurance Co. OF
California, signed by the elder
Franklin and Walter. There is =
also a photoStat of young Erank-
Inns commission agreement with
the company, fixing his rakeof
on insurance which the workers
arc compelled to buy, failing
which they arc refused employ
ment in Shipyards building ves-
sells for tho war.
TO GO back 10 the start, there
Il is on file in the l. S District
Court of Kansas suit by young
Franklin against the Chicago
National Life Insurance Co. in
which Franklin admitted the
company paid him 28,546 10 in
commissions on the group insur-
ance carried by his fathers
union and demanded SAT ,l00,l6
more.
He based his claim on his
services IN writing this insur-
ance business for the company
and appended his contract. It
began Oct. !. 1926. No term
was stated and year later the
company. finding the agreement
improbable when IL had 10 pay
the union president son 10 per
cent Of the premiums on COM
pulSOry insurance and Is per
cent on voluntary policies. made
a new arrangement.
Thereby Franklin got 81 600
month for year and 200 shares
OF stock in company.
4 s RECENTLY as last August,
"A young Franklin took part in
another lawsuit which is pending
on appeal 10 the L. s Circuit
Court in Denver. In that case,
another insurance company, the
American National of Dallas,
which had succeeded 10 the husi-
ness when Chicago National re-
tired. rcCounted that II had
insured the 5000 members
under a group contract.
The contract ended July !.
1871. when President Franklin
took il away and gave the BUSH
ness 10 his sons new connection,
the Occidental.
In that suit. tho American
National asked for a deClaratory
judgment 10 the effect that
young Franklin had broken his
contract as agent and that the
company owed him nothing. The
I petition said he had been paid
$4,000 cash and y monthly
instruments Of $500 each. or
S17.50O.
Now, the American Nationals
petition said, franklin was de-
/ mandinc $4,000 more but would
not bring the dispute 10 issue IN
court. Therefore. the company
asked the court 10 decide the
matter one way or another and
this the court did with judg-
ment for the company.
DCT before the case went 10
~ trial. young Franklin made
an affidavit which refuteS the
present dcnialS of himself and
Walter and shows he was agent
for the Occidental. He thought
Federal Judge Richard J. Hop
klns was reiudiced against him,
and asked that another Judge be
assigned 10 hear the suit.
As howing prejudice, he
quoted Judge Hopkins as having
asked him during the hearing Of
Il a previous case: "Why do You
think you are entitled 10 so much
money for what YOU did: What
did you do TO earn such a large
amount OF money: Why are you
claiming sum OF money en-
tirely out Of proportion To the
time you spent and the work
YOU did,"
And then. young Franklin
Sworc he represented Occidental
in tho insurance deal with his
fathers union.
TT Is easy 10 understand why
L both FranklinS and Walter
would prefer that the young
mans insurance business with
the union be kept quiet The war
workers all over the country
who find. on applying for Jobs,
that they must Join the union
and buy insurance through the
son Of the union president.
MIGHT no rchplliOuS and start n