Imperial Valley press., 1945-06-14
Elliott Roosevelt
Loan Sfirs Talk
Of Official Probe

WASHINGTON, June IA. tUP)-
Some Republican members of con-
greSs said late Wednesday there
should be an investigation to bring
out all the circumstances of Brig.
Gen. Elliott RooseveltiS business
transaction in which he allegedly
settled a 100000 loan for $4,000.
Those suggesting such an inquiry,
however, did not say they actually
would move towards obtaining one
Caruthers c. Ewing, New York at
torney, disclosed the transaction at
Danville, Illinois, stating that John
Hartford, president of the Atlantic
and Pacific Tea Co., lent Elliott
the 100000 in 1899 to expand his
radio holdings.
Ewing is in Danville as an attor-
ney for A. & P. at the chains fed
eral court trial for alleged violations
of antitrust laws.
JESSE JONES ACTED
Ewing said Jesse Jones, former
secretary of commerce and federal
loan administrator, told Hartford
in 1912 that "the Roosevelt family
wanted to compromise the indebt-
edness." Elliott's note and col
lateral we're turned over to Jones
in exchange for a $4,000 check ''and
the whole thing was closed" he
said.
Ewing said Hartford advanced the
100000 when advised that others
didn't want to get involved" be-
cause Roosevelt was the son of the
President. Hartford talked to the
late President before advancing the
money, he said.
Hartford took the whole thing
as loss and entered it $4,000 on
his 1912 income tax.
Neither Roosevelt, members of his
family nor Jones would comment.
Rep Harold Knutson, Minnesota,
ranking Republican member of the
tax writing house ways and means
committee said Ewing's statement
sounds almost unbelievable" but
that an investigation. should be
made if his facts are correct.
''It seems to me that the internal
revenue bureau should force Hart
ford to sue young Roosevelt to re-
cover the money before permitting
him to write it off as a tax exempt
bad debt" Knutscn declared
Rep. Roy O. Woodruff, (R9,
Michigan, said the people were en-
titled to all the facts and Il hope
an investigation will be made"
DEMANDS AIRING
1.-The whole thing is more shock
ing than anything I've ever heard
Of" he said. Jones should be call
ed upon to tell the truth about this
whole business. If the White House
has been used in this way, the peo-
pie should know about it."
Justice department officials said
their department was not involved
and that they had nothing to say
zone way or the ether" The Sc
curities and exchange commission
adopted a similar hands off" atti-
tude.
Internal revenue bureau officials
could not comment because all tax
returns are secret. But a spokesman
explained in general terms how un-
collectable debts are handled.
Customarily, he said, such debts
are deductible from income for tax
purposes. In disputed cases, final
authority rests with Commissioner
Joseph D. Nunan If the bureau
decides to look into a case, the tax
payer must show that reasonable
steps"-not necessarily court action
have been taken to collect the
amount and prove his case to the
satisfaction of the commissioner.
NEW YORK, June ID. (UP) -
John Hartford, president of the
Great Atlantic & Pacific Tea COM
pany of America said he regretted
that the account Of his 100000 lean
to Elliott Roosevelt appeared at this
time.
He said he had nothing to add
to the statement of Caruthers C.
Ewing, attorney for the A. & P. in
Danville, Illinois.
Ewing told everything there is
to TELL" Hartford said. Il regret
that the story had to come out at
this time in view Of the death of
President Roosevelt"