The Wilmington morning star. [volume] (Wilmington, N.C.) 1909-1990, 1945-07-25

|
ers His articles serve the good purpose
of making people Think
BY WEsTBROOK PEGLER
copyright, 1945, by King Features Syndicate)
NEW YORK, July 24-Analysis of the dares
and other facts of the case raises justifiable
query whether or not the SIS, 900 which Charles
Harwood says he turned over to Elliott Roose-
velts Texas State Network was a reason
| for Harwood's appointment to the position of
governor of the Virgin Islands which he still
holds.
! Governor Harwood IS New York lawyer
and democratic party politician.
The governor is emphatic on the point that
| the loan was made to the Texas State Network
and not to Elliot but there are Inconsistencies
in this story.
Governor Harwood says he received no note
or any other writing but just sent the money
to the Texas State Network at its corporate
offices in Forth Worth and received $50 shares
of stock as collateral for the loan. This was
not to be his property until two years had pass
ed. At the end of that time, if the loan was
not repaid the stock would be his, yet Har-
wood brings Hall Roosevelt, Elliott S uncle into
the deal as the one who negotiated the loan
and says the two year term was liked only
by a verbal agreement between MN and
Hall and with not word on paper. He does
not explain how Hall was qualified thus to
borrow and make commitments such as the
two year term, for the corporation, and these
peculiarities must be weighed against The
fact that he is a successful New York
lawyer of long experience in law and
business, who aspired to a position on the fed
eral bench and, for a short time actually
was United States judge for the district
of Panama, by President Roosevelts ap-
pointment.
An important question here must be Wheth-
err man who was under consideration for
| an appointment, and who presently did receive
an appointment loaned the money to h e
Presidents son or to corporation. The dates
are significant, too because the loan was
made some time in March, 1885, according
to HarWood's own recollection, and he was
appointed Governor in January, 1941. Next,
| about a year later, a New Yo,k democratic
politician solicited him to call on Jesse Jones,
then Secretary of Commerce and chairman
of the Reconstruction Finance Corporation, to
compromise the debt for $500 or 81 OO0,' as
he puts it.
In simpler form, first he made the loan,
then he got the job and then he was invited
by Mr. Jones to forgive almost all OF the
debt
For whom was Mr.. Jones acting when he
tried to pick up the debt 'for $500 or $1,000?
Carruthers Ewing, tn eattorney who took part
in the settlement OF John Harford's 5000 DOC
loan for $4,000 has stated that Jones was act
ing for 1.-The family meaning the Roosevelt
family.
Governor Harwood was asked why, in his
opinion, Jonese exerted himself to pick up Ell
liott's debts for triflng amounts and redeem
the stock which had been posted as collateral
my thought at the time" Governor Har
wood replied was that Jesse was trying Il
clean it up for himself because it was good
network
Mr. Jones made an indignant reply to this
suggestion, but he still has not said for whom
he was acting.
HE Gones) said, 1T isn't worth damn
so why don't you take the $500 or ST, 900 ane
take a tax loss?,' - Governor Harwood Said
however, he felt that he might as we'll los.
the entire $25, 600 as lose Sc or SO cents on ths
dollar and thought he might come through
with a profitable investment if he held onto
the stock. He now believes the stock has "come
back" a long way.
One of the men involved in the deal, politi
clan and former confdant of President Roose
velt insists that the stock was not put up by
the company collateral for loan to the
company. He insiss that the stock was issuee
to Elliott and was endorsed by him when i
!. was delivered to HarWood And Harwood, him
self, has said that when his own attorney
wrote to the company in 1912 to ask when The
loan would be repaid they said to see Ell
liotts note.
: Now we may consider Governor HARDWOOD
insistence that he thought the stock was
promising investment and had wanted to buy
into the company. If that was the case and i
it had been agreed in 1889 that the stock wal
to be his two years later if the loan was no
paid why didn't he just consider the stool
to be his and why did he ask the compan.
to redeem the loan in 1912?
Judge Harwoods suggestion that Jones act
ed for himself in an attempt to pick up
valuable property at a panic price could b,
put to the test by committee of Congress
Mr. Roosevelt's personal and official homo
are involved.
For the sake of argument, it may be grant
, ed that Mr.. Roosevelt did not know of tn
loan when he considering Harwood for ap
pontment. 1t may be conceded that he dit
not know about it until 1912. But if Jone
should say that he acted for him in trying
to buy back the debt from one of his officia
appointees for nominal sum in 1912 abou
: one year after he gave HARDWOOD the job ant
: if the debt should prove to have been Elliott
and not an obligation of the company, the
the conviction would be unacceptable that Pres
ident Roosevelt was seeking payment, retro
actively, to a member of his family, for
T. government job.
), OIOTAT1ONC