Detroit evening times., 1945-07-26
WESTBROOK
PEGLER
!
Fair
Enough

a reason for Harwoods appoint.
ment TO the position of governor
OF the Virgin Islands which he
still holds.
Governor Harwood il a NeV
York lawyer and Democratic
party politician.
The governor is emphatic on
the point that the loan was
made 10 the Texas state net
work and not TO Elliott. but
there are inconsistencies in his
story.
COV. HARDWOOD says he re.
NJ ceived no note or any other
writing but just sent the money
10 the Texas state network at
its corporate offices in Fort
Worth and received $50 shares
of stock as collateral for the
loan.
This was not an investment
by a purchase OF stock but q
loan.
The stock was not 10 be his
property until two years had
passed
Al the end Of that time, II
the loan was not repaid. the
stock would be his.
Yet Harwood brings Hall
Roosevelt, Elliott's uncle, into
the deal as the one who nego-
tiated the loan and SAYS the
two-year loan was fixed only
by verbal agreement between
HIM and Hall and with not a
word on paper.
He does not explain how Hall
was qualified thus 10 borrow
and make commitments. such 81
the two year term, for the CO
poration. and these peculiar
ties must he weighed against
the fact that he is successful
New York lawyer of long ex-
perience IN law and business,
who aspIred 10 position on the
federal bench and. for a short
time. actually was a l. 6 Judge
for the district of Panama by
President Roosevelt's appoint.
ment.
An IMPORTANT question
"a here must he whether q
man who was under eonsidera-
ton for An appointment. and
who presently did receive an
appointment loaned the money
10 the presidents son or to a
corporation
The dates are significant,
too. because the loan vas made
some time in March. 1899. ac-
Cording TO Harwoods own
recollection. and he was ap-
pointed governor in January.
l94l.
Next, about a year later. q
New York Democratic politi-
clan solicited him 10 call on
Jesse Jones. then secretary of
commerce and chairman Of the
Reconstruction Finance Corpo-
ration. 10 compromise the debt
for $500 or $1,000. as he
puts II.
In simpler form. first he made
the loan, then he got the rob
and then he was invited by Mr..
Jones 10 forgive almost all Of
the debt
For whom was Mr. Jones
acting when he tried 10 pick
up the debt for $500 or
81 900 >"
Carruthers Ewing, the attor-
ney who took part IN the
settlement Of John Hsrtfords
5000 900 loan for $4,000, has.
stated that Jones was actlr
for the family" meaning N. I
Roosevelt family.
nNE Of the men involved. In
" the deal politician and
former Conidant of President
Roosevelt insists that the stock
was not put up by the company
as collateral for a loan 10 the
company
He insists that the stock was
issued 10 Elliott and was en-
dorsed by him when II was de-
livered 10 Harwood.
And Harwood. himself. has
said thai when his own attorney
wrote 10 the company in 1912
10 ask when the loan would be
repaid they said TO see Elliott
lie says. moreover. that the
company then suggested that he
accept Elliott's note for the
debt.
Isn't that queer way for
company 10 treat corporate
obligation
He was willing 10 accept FL.
Lofts note As additional Sc
curity but was unwilling 10 sur
render the stock for Elllotts
note
Now we may consider Gov.
Harwood's insistence that he
thought the stock was A prom
iSing investment and had want
ed TO buy into the company.
If that was the case and II N
had been agreed in 1899 that
the stock was 10 be his two
years later II the loan was not
paid, why didn't he just con-
slider The stock TO he his and
why did he ask the company to
redeem the loan in 1922
EOR the sake OF argument. II
L may be granted that Mr..
Roosevelt did not know OF the
loan when he was considering
Earu,nnd fnr arrointrnnnf