Evening star., 1960-11-01
Nixon Cleared Loan,
Accountant Is Quoted

ACCOunIOnI
NEW YORK. Nov. I (AP).-
A Los Angeles accountant was
quoted by the New York Post
today as saying all major de-,
cisions concerning a $205, 1000
loan from the Hughes Tool Co.
to Donald Nixon were cleared
with his brother, Vice President
Richard M. Nixon.
The newspaper identified the
accountant as Phillip Reiner. a
member of q management COM
mittee named to oversee the
operation of Donald Nixon's
bankrupt chain of restaurants
and gift shops.
However. the Post quoted Mr..
Reiner as saying the Vice Pres
ident was never supposed to be
mentioned by name in. reports
and correspondence concerning
the loan. but by code terms such
as East" or Eastern Division"
At Lancaster, Pa, where Mr..
Nixon was campaigning, Her
bert q. Klein. Mr.. Nixon's press
secretary, said:
There is no truth in these
charges. They are absurd. The
whole matter of the loan I
think was summed up in the
statement made by Donald
Nixon previously"
The 1856 loan was brought
to public attention recently by
Washington Columnist Drew
Pearson in an article linking
the Vice Presidents name with
q possible confiict-of-interest.
Donald Nixon said Sunday
that the loan was obtained in
an unsuccessful effort to save
his business but asserted:
Il have never asked my
brother to do anything for me
or anyone else In the Govern
ment;; and If I did ask know
he would refuse" j.,
Smear Is Charged
He accused Mr.. Pearson of
seeking to smear his brother,
the Republican presidential
candidate.
Mr.. PearSon's column as
serted that 1.-The family Of
Richard M. Nixon" had re-
ceived the $3.50, 900 loan on De-
cember 10. 1956-shortly after
MIR. Nixon'S reelection to the
vice presidency-and that in
dustrialist Howard Hughes
problems with various Govern
ment agencies improved.
whether the improvement
was connected with the loan
Is not KNOWN" Mr.. Pearson's
article added.
Code Names Understood
Donald Nixon's Sunday
statement said, II am deeply
grieved and concerned to think
that any individual would use
my business misfortune to in
f1uence the outcome of the
presidential election"
The New York Post quoted
Mr.. Reiner as saying that all
concerned knew who was meant
by the code names-"East" and
Eastern Division"-which he
said were applied to the Vice
President in conversations and
reports concerning the loan
made to his brother.
There was never any con-
fusion that it was the Vice
President" Mr.. Reiner was
quoted as saying.
The Post story continued:
"Reiner said that since the
spring Of 1858, he has been
doing tax case work for the |
Los Angeles law firm of Waters, |
Arditto & Waters.
Waters a Hughes Attorney
Prank ]. Waters, according
to a statement by Donald
Nixon issued Sunday in Los
Angeles, was 'one of the per-
sons I talked to about my prob
lens
Waters until recently was
attorney for Howard Hughes,
owner Of the Hughes Tool Co.
Of Houston, from whom the
loan was obtained.
Donald Nixon said his
mother, Mrs. Hannah Nixon,
had executed promissory note
in favor Of Waters for $205, 900.
AS collateral she had put up
a corner lot in suburban Whit
tier, Calf, on which a gas
station was built later.
LAS related by Donald Nixon,
the note and trust deed were
subsequently assigned to Rein
er." the Post confined, adding:
"Reiner was asked by this
newspaper to explain the rea-
son for the assignment and
how he happened to become
involved in the case.
He was asked specifically if