The Wilmington morning star. [volume] (Wilmington, N.C.) 1909-1990, 1945-09-16
ROOSEVELT DISCLOSES |
HE BORROWED $500 ,O0O|
CONTINUED from Page One)

Ways and Means Committee,
which is making the inquiry, with
the impression that he is now
"broke."
The committee completed read
ing the 200 page statement today.
1t expects to reach conclusion next
week. The inquiry was undertaken
in connection with a $4,000 bad
debt income tax reductions claim
ed by Hartford in his 1912 return.
There are indications the whole
thing will be put up to the court
of tax appeals.
Elliott, now IS and by his &C.
count to the committee no longer
stakeholder in the radio chain
about which the affair centered, is
leaving the Army with his future
employment unannounced.
Throughout the account of his
business life, young Roosevelt
hammers at one point - that the
influence of the office of his father,
the President, never was used to
promote his financial affairs. He
gives in detail his own account of
how his father was consulted by
telephone by John Hartford, presi-
dent of the Great Atlantic a n d
Pacific Tea company befor Har-
ford loaned Elliott 100000.
Elliott's story was obtained by
officials of the internal revenue
Bureau. 1t was read behind closed
doors by the Ways and Means
committee.
Committeeman would not dis
cuss it for publication But today,
from many sources, young Roose-
velt's ewn account can be pieced
together for the first time, as fol-
lows.
In 1888, hn % vars old, Ell
Radio, which ownd salons in
Txas. This organization dsird o
a corporation, known as Texas
State Network. Elliott was to pur-
chase IS per cent of the. stock, and
the other two men to take the re-
maindr.
Young Roosevelt asked his late
uncle, Hall Roosevelt, to help him
raise money. If Hall Roosevelt
sought the assistance of former
Rep. Sirovich D-Ny), Elliott did
MT know about it.
Hall Roosevelt told Elliott that
John Hartford, head of the grocery
store chain, often made loans to
young men starting out in business
and sent Elliott to see Hartford
in New York.
Hartford asked Elliott whether it
would be embarrassing for Presi-
dent Roosevelt if he made the loan.
Elliott suggested that Hartford
telephone his father, then at Warm
Springs.
A telephone call was made and
Elliott also spoke to the President,
explaining that he wished to bor-
row money from Hartford but
that Hartford wished to make
sure that the President would not
be embarrassed.
Elliott did not hear what
his father said to Hartford, but
the President later told Elliott, &C
cording to the sons story. that he
told Hartford if he wished to loan
money to Elliott he must do it on
the merits, that his children were
independent to conduct their af-
fairs as they wished, that any
transaction would be between FL
lott and Hartford and would not
involve the President, and that he
would not, therefore, be en-
barrassed
The President, Elliott's account
continues, did not say that he ap-
proved the loan or urge in any
way that it be made. At no time,
it added, was any suggestion made
to Hartford that he or his COM
pany would receive any special
consideration from government Of
ficials as result of the loan.
Hartford loaned 100000 to FL
lott, taking stock in the Texas
State Network as security.
Then, few weeks following,
David Baird, a New York insur-
ance broker. loaned Elliott $50,000
taking stock as collateral. Baird
stipulated that the network take a
$1O0, 600 life insurance policy upon
Elliott, which was done.
Elliott executed promissory
notes both to Hartford and Baird,
with his wife, Ruth Goggins Roose-