Detroit evening times., 1945-07-14
WESTBROOK
PEGLER
Fair,
Enough
Enough

book by Judge Ferdinand PEI
cora of New York County SUI
preme Court, who served az
counsel 10 the Senate banking
and currency investigation OF
1933-34.
This concerned quaint prac-
tices of stock exchanges and
banks
II was souped up by the early
enthusiasts OF the New Deal
press who delighted in the
humbling of j. p Morgan, who
was tricked into dandling on his
knee circus midget whom he
mistook for little girl.
However, II was an effective
expose, and contributed TO some
honest reforms which the Roose-
Welt administration achieved in
its early days. v'-s
1t occurs to me- that in some
way the situation which Judge
PeCora Investigated was similar
10 the operations OF Elliot
Roosevelt thus far disclosed in
borrowing money on "unbank-
able securities with the ap-
proXal of his father and -the me-
gotiatlons by which Jesse Jones.
wrote them off
JUDGE PECORA described the
- great financial power Of J. p.
Morgan and Co. and its favorit-
ism toward a great financial
coterie of other bankers.
"Mr. Morgan saw no impro-
priety or disadvantage In this"
he wrote. NOR did he respond
fayorably to the suggestion that
j. r. Morgan 4 Go. might, nv
putting all these powerful anu
strategically situated men In
their debt, place itself In .
position 10 obtain. In return,
special fsyors from the banks
and corporations they repre-
sented."
Later discussing the spread
or commissions paid IN the
issuance of bonds by borrowing
companies. Judge Pecora ex-
planned that when corpora
ton issues 100000 900 of bonds
II does not actually receive the
full 100000. 900.
The long suffering public
H.. H. 80
load Of commissions, profits,
finders fees tto persons who
have helped bring in the busi-
ness in the first place "
IF THERE is an analogy here
L II is in reverse but, 10 me.
the moral position of Elliott and
his father and. later. OF Jesse
Jones. the chairman OF the Re-
construction Finance Corpora
ton. described by Henry Wallace
as the most tremendous fnan-
Clal power that the world has
ever seer" seems no better than
that Of the finaLaiers against
whom Pecora wac~d crusade.
Where Pecora speaks OF the
Morgan firm acIng other
giants In debt and itself in
position 10 obtain special favors,
! | try 10 picture the mental atti-
| tude Of big Businessman under,
/ government fire or threatened
with government trouble when
a son and A bro,her-ln-law of
the President approach hun for
( a big loan.
believe the businessman
would say 10 himself that this
might be way out Of some
/ existing trouble with the ad-
/ minlStra'ion or way 10 head,
Oft trouble. especially when th'G|
I President sings out his endorseS
ment Of tho deal and invites the
/ lender 10 come and see hun.
DECORA condemne d this
i equation which he describes
IN the banking business
The New Deal then IuSt be-
ginning l's rule with high
mora professions. was equally
/ SCorniui
We do not Vet know the fun
story Of tho financial operations
of A number of members of the
Roosevelt family but one easily
recalls how lOyouSly the New
/ Deal group celebrated the per-
, sonal embarrassment Of many
/ individuals when tho president.
! hy executive order. produced
for public inspection their per-
sonal tax returns.
Pecora dlSapproved the pay
ment OF finders 80 fees 10 men
who dug up money for borrow
crS but Hall Roosevelt and
/ William Slrovich. A New Deal
congressman. in floating a 5000
900 loan for Elliott which Jones
settled for $1,000. were find
erS' for Elliott.
| And one man has presented a
document purportIng 10 be
contract with Elliott which IL
authentic. clearly defines hlm as
A finder
THERE may he a key 10 the
situation IN an incident in
May. l943. when President
Roosevelt denounced an Amer
ican group for lending several
million dollars 10 Bolivia AT 3
per cent interest, minus a find
er's fee Of 8 per cent.
Bolivia like his own son FL
lott defaulted the loan and
MIR Roosevelt revealed his own
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