Evening star., 1960-10-31

But, IN his f1rSt comment
ing the Vice Presidents name
with q possible con11ict-of-in-
terest deal. Donald Nixon said
yesterday:
"I have never asked my
brother to do anything for me
or anyone else in the Govern
ment, and If I did ask I know
he would refuse"
But MIR. Pearson later said
Donald's statement "overlookS
several important facts"
Yesterday Donald issued q
statement detailing his finan-
cial difhculties, including an
unsuccessful effort to save his
restaurant business with the
$205, 900 loan. He accused Mr..
Pearson Of trying to smear his
brother.
81 am deeply grieved and
concerned to think that any
individual would use by busi-
ness misfortune to influence
the outcome of the presidential
election" said Donald Nixon.
Story Denied by Finch
When the Pearson article ap-
peared last week, Richard
Nixon's campaign manager,
Robert N. Finch, called it IAN
obvious political smear in the
last two weeks Of the cam
paign." Mr.. Finch said Donald
got the loan from an attorney
friend.
After Donald issued his state
ment, Mr.. Pearson said: 1T
should be noted that ordinarily
it would not have taken him
five days to make an explana-
ton Of this transaction If 1t
was clean as a hounds tooth"
Mr.. Pearson's article said
'the family of Richard NJ
Nixon" received a $205, 900 loan
December 10, 1856, from the
Hughes Tool Co. and that
thereafter Hughes problems
with various Government agen-
cies improved. Whether the i'm
provement was connected with
the loan is not known"
Donald's statement said:
DREW Pearson has charged
that four years ago my corpo-
ration and my mother were
loaned a large sum Of money
without sufficient security, anc
that this sum was never re-
paid.
Those were humiliating
times. The scars they left
are deep.
"Now, in the last days Of the
presidential camps align, my
brothers political opponents
have resurrected the entire
matter and embellished it with
false statements purporting to
involve my brother in those
lproblems which were mine
alone and not his. :"
Got Loan Via Attorney
Donald said he got the loan
through Attorney Frank J.
Waters.
"Mr. Waters told me that he
thought he could get q client Of
his to lend $205,000. I
learned that the loan would be
made by :. the Hughes Tool
Co. I never met Mr.. Howard
Hughes, the owner Of Hughes
Tool Co."
Donald said his mother, Mrs.
Hannah Nixon, executed a
promiSSory note in favor of Mr..
Waters for $205 900, secured by
q mortgage on a corner lot she
owned in suburban Whittier.
II have had this property .
appraised by competent ap-
praiSers who fixed the value
Of the property today without
improvements at $228,000,"
Donald continued. ". The
value Of the property is greater
than the total amount of the
loan so that the lender has
clearly suffered no loss and will
suffer no loss.
"The loss Of my business and
its attendant embarrassment
and my mothers loss of the
property on which sshe had
raised her family were COM
pleted two years ago. -. :"
The Vice Presidents brother
said the loan was made Decem-
Der 10, 1856, on condition that
$4,000 of the $2O5, 900 be used
to pay of a previous bank loan
and that another $4,000 be
used to build a service station
on the property.
Station Increased Value
"The station was constructed
and, of course, substantially in
creased the value of the prop
erty," Donald's statement con-
tinued.
The remaining $125,00O was
to be used to finance Nixon's
Inc, operator of a chain of res
taurants and gift shops. The
firm gave his mother, a note
for $165,000, Donald said, anC
he and other stockholders anC
board members pledged oul
stock to her to secure her loan.
A previous application to ar
insurance company brought 9
loan commitment of $93, 900, HI