The Wilmington morning star., 1945-10-09
Fair Enough
Nv wEsTBROOK PEGLER
1916, by King Features Syndicate

JOln ddrLIOTO 10 SAAASSo' N~>>~S~~SS
ly make that charge now.
The crux of the matter is the fact that he
initiated the plan to buy back Enlotts col
lateral, 1000 shares Of the Texas state Net
work, at the paltriest possible price oy repre-
sentinq to Hartford that it was worthless,
knowing that Hartford was content to keep
the stock. regardless of its worth or worth
|lessness.
That was the situation when, in December,
1941 he abused the influence OF tne presl-
Dental office by procuring Jesse Jones, his
Secretary of Commerce and chairman of the
Reconstruction F Finance Corporation, not
imerely to dissolve the debt, but to get back
the collateral He realized, of course, and,
| to serve his purpose, relied on the 1act that
Jones' too was a powerful man In the gov
| ernment.
The recovery of the collateral by repre-
sentations which have been flatly lmpugned
by the minority report of the House Ways
and Means Committee, is the action upon
which I base my statement that Mr.. Roose-
velt's course was deliberately dishonest and
that the effect of that course was sWindle.
Had he been content with the liquidation Of
the debt, that, indeed, would have been
sufficient abuse of his office to indict him
before the bar of historical judgement. But
that would have been enough to relieve his
son of worry over his debt
| Why did Mr.. Roosevelt want also to re-
cover the 1000 shares well as the notes
signed jointly by Elliott and his wife of that
time? If the stock was worthless why wasn't
he willing to let Hartford keep it? Why did
he ask Jones to recover, also, the stock held
as collateral by David G. Baird Maxwell
Bilofsky and Charles HarWood, the governor
of the Virgin Islands, who got that job, and
a terrible job it is, by Mr.. Roosevelts execu-
tive appointment after Harwood loaned $25.-
600 to either Elliott or his radio company?
incidentally, HarWood was expecting ap-
pointment to the United States District Court
or the Court of Appeals and the Virgin Islands
job was supposed to be just temporary
thing. Not receiving a place on the bench he
refused to do business with Jones and the
President was still so intent on getting back
the $50 shares which Harwood still holds that
he sent another powerful member of the ad-
ministration after him. Harwood held the best
cards, however, and he knew it. He didn't
get his judgeship so Mr.. Roosevelt didn't get
his stock and today it is said to be wort
more than Harwood says he loaned for it.
| But. to get back to the question: Why?
| The answer is found in the minority report
which says. when the Texas State Network
did begin to show earnings in 1912, the Presi-
dent OF the United States stepped into the
picture to ask Jesse Jones to settle the in
debtednesS and reacquire the stock even
though only half of the indebtedness was then
due and payable. AS result of this Elliott,s
Indebtedness was settled for about two cents
on the dollar, on or about March II, 1912
Reliance was placed on selfserving represen-
tatlons that the stock was worthless.
| There Is also evidence to show that in
September, 1s41, $50 shares of T. S. N. were
sold at SIT share and that it was resold
! the next January for $3.50 share.'
| A stock that brought $3.50 in January was
worthless" IN March when Jones bought #
back
Elliott, himself, in a Hollywood interview
| published recently, was quoted as having said
that beginning in 1872" the year, mind you,
that Hartford gave up, ''the cooperation start
er to show profit" Is the stock of profit
able company worthless?
| The Hartford stock, which I here isolate
Tor discussion, was delivered by Jones to
President Roosevelt. And, on Nov. 19, 1943.
the President, himself, by personal letter
| to Mrs. Ruth Googins Roosevelt, since di-
vorced from Elliott, delivered the 1000 shares
to her. The Presidents letter did not say this
stock was acquired in settlement of a loan
or debt 1t said specifically that Jones had
told him ne bought it, Jones also told him
the notes had been destroyed That destruc
ton obliterated the debt but Mr.. Roosevelt
was not content to put his son even with the
board He wanted the stock, too.
Jones' statement to the Bureau of Internal
Revenue said the President asked him as
personal favor, to him, to look into Elliott,s
financial difficulties land see if anvthino
could be done about them Showing that Mr..
Roosevelt knew Jones was not only bailing
Elliott out OF debt but picking up the col
lateral Tor its potential value, value firmly
recognized by the Treasury. Jones also told
tne internal Revenue he reported back to Mr..
Roosevelt that Hartford was willing to take
$4, 900 for the collateral.
| he asked me to conclude the arrange.
ments with Mr.. Hartford" Jones said.
At anotner point Internal Revenue asked
Jones question that invited an answer if
such were the fact, which might have shown
mat Mr. Roosevelt did not know Just what
Jones was doing to 'thelp Elliott uot''
Inc question was: The President said
see what you can do to help Elliott out.
from rom that point on you were on your own?"
on my own, yes" Jones said 'but I re-
ported back to the President
30 Hartford was persuaded to give up for
nominal amount provided by Jones, at that,
STOCK which his wife was willing to accept
in settlement of Elliott's personal obligation
TO her IN their divorce agreement and as
provision for their children. And, in the next
step, the taxpayers of the United States, in
GUIDING the common man, paid the taxes
which Hartford was able to deduct.
1t is true, Elliott said in an interview
IN Los Angeles last week, that he made
Hartford firm offer to turn over all of my
assets including the collateraP' and that Hart