The Wilmington morning star., 1945-06-14
BY WESTBROOK PEGLER
copyright, 1915, by King Features Syndicate)

copyright, 1915, by King Features Syndicate)
NEW YORK,-On March 3d. 1889, Elliott
Roosevelt, then 20 years old, called on John
Hartford president of the Great Atlantic and
Pacific Tea company, the largest retail gro
Gerry chain-store system, to request a loan of
5000, OOO He had met Hartford only once be-
fore and then only in a mere introduction,
50 there was no basis of old personal friend
ship between them. Elliott wanted the money
to finance his radio interests in Texas.
Hartford had profound respect for the Of
flee of the President of the United States
and NAV have thought it was an honor to
be asked to assist the son of a president.
Other considerations S u e S t themselves
which might have been influential in the de-
cision of man so placed. In the recent
past. scrupulously honest men had been
Iharassed and pilloried as tax evaders who
had scrupulously complied with the law. The
Department Of Justice had given citizens rea-
son to fear prosecution for political motives.
Until Mr.. Hartford decides to make a state
ment we cannot know what thoughts persuad-
ed him to lend Elliott the money.
It can be stated, however, that Hartford
did demur on the ground that such a trans
action might be misunderstood If knowledge
of it became public and might embarrass the
President. Dispelling such misgivings, Elliott
Immediately telephoned to President Roose-
welt at the Little White House at Warm
Springs, Ga, and the President spoke cordial
ly to Mr. Hartford addressing him as "John''
although they had never met and thanked
him for this favor to his son. He also invited
Hartford to call on him.
Hartford then loaned Elliott the 5000, 1000,
taking as collateral stocks in business inter-
ests in which Elliott concerned. Hartford
closed the transaction on March II, 1912. He
never dunned Elliott for the money, never
demanded payment and only made inquiries
regarding the stock. Finally he wrote off the
5000, 900 in his income tax returns an I'M
collectable debt and the net result has been
that Elliott Roosevelt got 100000 for his bust
ness and the treasures of the United States
and the State of New York have lost the high
bracket taxes that Hartford otherwise would
have had to pay on the money.
The question arises why Elliott selected an
individual rich man instead OF going to
bank if his security appropriate to the
1oan. In answer to this, a famous financier
who has known of the transaction for a long
time and who was familiar with the properties
involved gave his opinion, as banker, that
such loan would have been unsound Hart.
ford finally got rid of the collateral at a |
few cents on the dollar.
John Hartford and his brother, George and
a group of other defendants are now on trial
under criminal informations filed against
them by the Department of Justice charging
them with violation of the Antitrust law
in Danville, Ills.
Hartford may be suspected of divulging the
deal with Elliott at this time for an Interior
purpose In connection with the defense. In
fairness to him, therefore, I will state that
the original information came to me from a
source which believe to have no connection
with the Hartfords or their company four
months ago and that the reason why it is
presented at this time is that it has taken
this long to confirm the tip. 1t is a mere CO.
incidence that it is confirmed while the trial
is on, and Mr. Hartford was plainly embar-
raised when the facts were placed before him
and would say nothing for publication.
There is no doubt that President Roosevelt
knew OF the loan and approved it.
Would Mr.. Hartford have been willing to
lend 100000 to some other young man of
%, not the son Of a President Of the United
States, with experience and qualifications
equal or even superior to Elliott's on similar
terms? Or would he advise the applicant to
go to bank for the money? AS director
OF the Guaranty Trust company OF New York.
would he have approved this loan as a sound
investment?
Elliott Roosevelt now a brigadier-general.
has been invited to make statement of his
position and the facts of the case A tele-
gram was addressed to him at the Waldorf
Astoria where he was a guest but he had
checked out leaving no forwarding address
The message therefore was repeated to HYDE
Park.
Editorial. Comment