The Waterbury Democrat., 1944-07-08

solved in favor of Jones.
 Today he has a Southern revolt on his hands which he has told insiders he planes partly on Jesse Jones. So the question is: What he is going to do about it?
 If the President lets a member of his own Cabinet get away with what looks like open rebellion, 1t is a tip-off to other rebels, and revolt spreads. Already the un- happy whisper is going round that Jesse has something on the Presi- dent" and that the P resident doesn't dare fire him.
 The whispererS and some aren't too far from the White House point out that Jesse got away With the delays on sym thetic rubber which set back the entire nation, and that he even had the nerve to make public statement shifting the blame to the President. They also point out that the Senate Banking and Currency Committee, which pri- vately went into the Jones-Wal- lace dispute over the Board of Economic Warface, side with Wal lace and were shocked over some of Jones' delays, especially on quinine.
 They also point out that, pri- vately, the President obviously doesn't like him, and yet, despite Jones 70 years and the effective manner in which Governor Dewey has ridiculed RooSevelt's tired old men," Roosevelt keeps him in the Cabinet.
 JONES' POWER ON CAPITOL HILL
 The answer probably is that Jones has more power on Capitol Hill than any other Cabinet member-especially among South ern recalcitrants with whom the President needs to get along. Jones has loaned money to the constituents of more Congress men than anyone in history. Just as the banker in any small town is a potent person, so Jesse Jones backed by REC millions is all- powerful in the little group of men and politicians who control legislation.
 For instance, Jesse recently was under fire from Senator Clyde Reed. Republican of Kansas, in regard to claims that he was con- trolling the Chicago and Eastern Illinois Railroad by not permit ting one group of stockholders to pay up their REC loan and thus get free of Jones' domination. The Senate probe of the situation was squashed largely by Senator Ed Johnson, Democrat of Color ado, who quite frankly said: :. q.
 "Jesse Jones is the only man
 who does any favOrs for us
 up here on the Hill, and when
 he wants favor, I'm going to
 reciprOcate."
 All of this came to a show down recently when Jones close friend and associate, Will Clay ton, sent to the White House his resignation as Surplus Property Administrator. Clayton, also from Texas, and longtime Assistant Secretary of Commerce under Jones. had been accused of help- ing to inspire the Texas anti Roosevelt revolt through his cot- ton firm, Anderson, Clayton & Co.
 In resigning, Clayton not only said that he did not know any, thing about the Texas rebellion, but went further and stated that he considered "un-AmeFican" the idea of depriying the people of their vote through reversing their wishes in the Electoral College.
 The White House, believing in clayton's sincerity, did not accept his resignation.
 The incident was embarrassing to Jones. however, because (l) he did not submit his resignation. and @ he did not immediately depounce the Texas revolt.
 REFUSES TO
 DIsAVOW REVOLT
 Jones did go to the White House and tell the President that he had known nothing about the Texas matter, but the President later implied to friends that he
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