The Wilmington morning star., 1945-07-21

views of Mr.. Pegler, and often disagree
with them as much as many OF his read
ers. His articles serve the good purpose
of making people Think
BY WEsTBROoK PEGLER
Copyright, 1s45, BY King Features Syndicate,)
NEW YORK, - Charles HARDWOOD, A New
York democratic party worker and governor
of the Virgin Islands, is now revealed as one
who loaned $25, 900 to Elliott Roosevelt's radio
enterprise, the Texas State Network, and never
got his money back, however, he still holds
the stock which he received as collateral and.
by an unforeseen turn of fortune may be even
with the board or almost even.
Mr.. HARDWOOD, Ike John Hartford, president
of the Atlantic and Pacific grocery chain, Da-
vid G.. Baird, Wall street financier, and Max
well NJ BiIofsky, other lenders to Elliott S
projects, appeared to be embarrassed when
he was asked for confirmat alton of facts which
had become known through other sources. In
all these cases the lenders have said that
they were approached by the borrowers, with
requests for money and took no Initiative but
merely compiled.
Mr.. HarWood is known as both governor
and Judge because the late President Roose-
welt appointed him judge of the United States
court for the District of Panama on which
bench he served from June 1887 to March
1888. Before that, in 1886 he served briefly
In the Department of Justice as special as
sistant to the attorney general in the criminal
and antitrust divisions.
There is ground for belief that, like many
other lawyer politicians Of both parties and in
accordance with the spoils tradition, Mr.. Har-
wood entertained hopes that his old friend,
Mr.. Roosevelt, would give him one of the
many appointments to the secure, dgnified
and permanent positions on the federal bench
in the continental United States, with which
he rewarded the political labors of deserving
democrats.
He was liberal contributor to the party
and an earnest worker and his political as
ISOLATION with Roosevelt went back to 1911
When young Franklin D. Roosevelt went to the
state senate in Albany as a silk stocking DEM
ocrat. However, the appointment to the Virgin
Islands was the best Mr.. Roosevelt ever did
for him and that would seem to have been
more sentence than a reward for he has
been governor in name only and has actually
served under Harold Ickes in post notorious
ly surrounded by Ickes' political agents in an
atmosphere of espionage.
Governor Harwood is an old line traditional
party democrat who served term as presi
dent of the old Brooklyn Democratic club and
is anti-communiSt Inquiries by Congress nave
revealed persistent program of the new dea
pldllt PoSlt1oHs III 'hlC 10
lands more infleent al than that of the governor
lands more influential than that of the governor
fort to the communist movement
For some time prior to March, 1899, a:
Mr.. HarWood now confirms the story, Hal
Roosevelt, the uncle of Elliott Roosevelt, hao
been telling him of the wonderful prospects
of Elliott Texas State Network and MIR. Har
wood had been so charmed that he asked Hal
to let him buy some stock. However, Hal
I'll, him Then jY
March, 1885, the year of the Hartford, Baire
and Bilofsky loans, Hall told him his chance
had come If HarWood would lend Elliott
company $25, 600, Hall would arrange that tnt
company put up $50 shares as collateral. If
in two years the loan was not paid the stocl
would be his.
Mr.. Harwood says he sent his check to thu
company, not to Elliott or Hail. at its of
fees in Fort Worth and got his $50 shares
There was no note or written contract, how
ever Politicians often are less formal thar
financiers and Mr.. HARDWOOD says he was con
tent with Halls oral promise.
Thereafter, several times when he saw Hall
Mr.. Harwood inquired about his loan and Hall:
answer was you'll get it! You'll get 1t! II
get after him." meaning Elliott.
At the 1910 convention in Chicago, for thu
first time in the transaction, Mr. Harwoot
mentioned it to Elliott. He asked Elliott whe1
the company was going to pay back his so,
900 and as he recalls Elliotts answer tn
Presidents son said he would look into 1t a
soon as ne returned to Fort Worth. Hearing
nothing further from Elliott he wrote to tn
company in 1912. The reply, he says, was
suggestion that he settle it with Elliott an'
accept Eliotts note. Harwood was Wiling L
Il accep Elliotts note additional collatera
but not as fair exchange for the stock Whlc
he therefore retained.
The next development was in the winter @
1912 when Jesse Jones, then Secretary OF Com
merce and chairman OF the ReconstrCcto
Finance Corporation, at the request OF TN
family was buying up Ell, otis obligation
for nominal amounts
Joseph fairfield, New York lawyer an
likewise a democratic politician, long as
ISOLATED with Jones as his personal attorney
and for some time an advisor to Norma
Davis president of the Red Cross. commun
Gated with HARDWOOD, suggesting that he Sc
in touch with Jones, Mrs. Harwood says MI
Jones offered him $500 or 81, 900 for his SO
600 and that he reckoned that if he were goln
to lose SO or IS cents on the dollar he Nigh
as we'll lose it all or take chance of gettin
more out of it on rise.
At later date, Mr.. HARDWOOD made an II
qriry and got an offer in the market OF seI
en- or eight cents on the dollar.
President Roosevelt nominated Mr.. HarWoo
to be governor of the Virgin Islands In January
i, 1871, and he was confirmed in the same lnontf
= Mr.. Harwood is emphatic on his point tina
: as far as he knows, President Roosevelt ha
! no knowledge of the loan. He insists that ther
/ was no conversation between him and tn
, President on the question whether such loa
: would be embarrassing to either of them i