The Wilmington morning star., 1946-08-09
Fair Enough
BY WEsTBROOK PEGLER

(~Copywright, By King Features Syndicate, Inc.)
NEW YORK, Aug. 8.-The history of the
Carson war babies begins with testimony
that Henry Carson, who calls himself doctor,
wrote a letter to the War Department on the
stationery of the Segal Safe and Lock Compa-
ny. The War Department seems to have in
terred that Carson was prepared to produce
war materials at a plant owned by the Segal
company IN the region Of the Erie basin, in
Brooklyn. The War Department apparently
did not 90 into Henry Garsson's personal or
corporate background hu: gave him a letter
OF intent and advanced him 81, 900, 900, after
which lie branched out.
G.. Hall Roosevelt, a brother of Mrs. Flea
nor Roosevelt, had been associated with the
Segal company in some vague relationship.
A former high official CT the Reconstruction
Corporation saio, some time ago, that Hall
Roosevelt had exerted himself to obtain a
loan for a company which was undertaking
war projects in Alaska. 1t was his under
standing that Hall Roosevelt expected to get
either a commission en- the loan or a more
or less nominal job with the company. In
connection with the Segal company he ap-
parently represented himself as a salesman.
Hall Roosevelt was implicated in the pro-
motion OF the SOC, 900 loan by John Hartford,
OF the A. and P. grocelv chain, and the $25,-
600 loan by Charles Harwood, once a federal
judge and later governor Of the Virgin islands,,
by appointment from Franklin D.. Roosevelt,
to Elliott Roosevelt. John Kantor, an old-time
promoter and finder OF loans, who had the
misfortune to get 20 r:onths in prison as a
sWindler, told of conversations with Hall in
the course of the ne utiations with Hartford.
Judge, O.. A. Governor, HarWood, himself,
said that Hall built him up as a prospect
and then gave him q IRISH acf tn GOT h;c
$25, 900.
Hartford was trimmed out Of s1se, 900 and
not only surrendered Ell:ott's notes Cor a.
600 but gave back the collateral stock which
then was transmitted by President Roosevelt
to Elliotts former wife, Ruth Goodins Roose-
welt Edison, in settlement Of Elliott's obi
cations in alimony and child-maintenance.
Harwood had no notes and. although he is
a lawyer and has been a judge and a sue
cessful u.oney-Inaker, he never was quite sure
whether he received the stock as collateral
for a loan or as an investment by purchase.
At any rate, he stood off Jesse Jones when
Jones offered him $500. or 2 cents on the
dollar, and resisted another emissary sent to
him by the President and thus recouped his
$25, 1000 when the stock recovered in value.
Harwood had been hearing from Hall Roose-
welt that Elliotts radio network was a fine
financial proposition and had expressed a
wish to buy some stock. During the build-up
period, however, Hall put him off. Finally,
Hall let him in on this wonderful opportunity
at a time when his SIS, 900 was needed to
meet payrolls and other current expenses.
Hall also tried to borrow $50, 900 from Hart
ford, for himself.
A little investigation would have shown him,
as the Treasury inquiry revealed later, that
this promising property was gasping at the
lime hj1t Haruyood wa hopipo 4bo+ bic o1J
friend, President Roosevelt, would give him
a job on the federal bench in some court
within the continental United States. His
earlier see had been in Panama where he
did not like the climate. The Ways and Means
Committee of the House of Representatives.
controlled by the Democrats, carefully avoid
I'd questioning Harwood during It's investi-
cation Of the loans and explained that there
vas no point in calling him because it was
only with deiaulted loans or which
he lenders had claimed tax deductions. In
The committee relied entirely on the
'ecord Of the testimony taken by the Treasury
and protected the Roosevclts, father and son,
as mucn as it was able, whereas a general
inquiry honestly pursued, would have pro-
luced interesting information concerning Hall
aoosevelts activities supplementary to the
acts thus far obtained il. the Carson case.
Last winter, after Harwood loan had been
ara MS refusal to cooperate to the II
extent Of kicking back SEA, 500 toward the ali
nony fund which the President was arrang-
ng for his son at the expense of trusting
suckers, Harwood was fired from the Virgin
Stands job. Charles Ross, President Truman's
in announcing the appointment of
3arwoods successor, said he didn't know
whether HARDWOOD had resigned. He was just
Hall Roosevelt was observed often at the
oegal company's premises in Brooklyn, but
never to have been an officer of the
firm. He died in Sept. 1941. Garsson's ap-
oroach 10 the War Department on the Segal
etterhean was made in 1912, according to
he testimony. Halls obituary reported that
he had served as controller of the City Of
Detroit 70: a time during the depression, and
IS chairman of an unemployment bureau
by Mayor Murphy He left an estate
If 1926, 1876 and as liabilities a tax deficiency
If $4,000 and about 500 in debts to New
York night clubs and hotels.
John Kantor, who. claimed to have found
prospect willing to lerd additional money
% Elliot, stated that he was called into a
DOM at the Roosevelt hotel in New York
md ''persuaded'' to sign a document releas-
ng Hall and Elliott from all obligations, al
hough he felt that he was entitled to a sub /
;tantia1 amount in settlement Of his contract
or endowment and his efforts in promoting
he loan.