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Eleanor Roosevelt — Part 16
Page 48
48 / 57
JFIDENTIAL
t and Present
Franklin the First and
jt has been considered
cal to pan the Admin-
nt), Harry the Little,
toilet-wall words. We
oyal family. Our news-
ilis. That's where most
goes in through the
t day-time chorus re-
e of gangster “Chink”
ted in the career of a
‘ania mines.
o the elevation of her
avernor af New York
ope peadicns, booniis,
remained a member of
ad a box at Saratoga.
iow he knew the law
ld worked both ways.
juke-box business, in
ne monofacturers of
vele borrowed some 0
A. CONFIDENTIAL _
to the pokey. In 1932,
hicago’s Drake Hotel,
ht which resulted in
1, Roosevelt gave the
elt and Lehman—“my .
were no pari-mutuels
t bookmakers operated
ided for them unlaw-
,
eae | eR A MO me A eS emt ee cate ee ee ee
WASHINGTON CONFIDENTIAL $31
the bankroll to start her newspaper in Phoenix from Charles
Ward, millionaire ex-convict. She stiffed him
Young Frank's former law-partner, Charles\ Poletti, could tell
plenty about the underworld tie-up between\Costelio and his
friend Marcantonio, if he were asked and if he'd talk. When
Junior ran for Congress, an intermediary asked Costello to keep
out of his district until after election. Costello complied.
E}liot’s unsavory business associations would fill this book.
Jimmy, oldest of the boys, was first to cash in on the good thing.
It seems so long ago that he got that $500,000 a year for selling
insurance to government contractors. It was. And he and his
mother are still getting it. In che late thirties Jimmy amplified his
insurance income by dabbling in the movie business. That's when
he made a deal wich the Costello boys to put out juke-box films.
He also produced a couple of featyre-length pictures on the West
Goast with dough put up by Joe\Schenck. Sometime thereafter
Schenck wove himself into a strange web of intrigue and conspir-
acy involving shakedown payments to officials in Capone-dom-
inated movie unions. After Westbrook Pegler and Arthur Ungar,
late editor of Daily Vagiety, exposed the deal, Uncle Sam could
no longer sidestep prosecution. -
A conference was held in the President’s office, attended by the
Treasury agents who had made the case, the Attorney General
and the U.S. Attorney from the district in which ihe tii was tu
tahc plick. Ruvswvei was advised of the Grcumstances and re-
minded that Schenck had lent $50,000 to Eleanor for Jimmy's
movie deal. Roosevelt was asked, “What shall we do, Mz. Presi-
dent?” He replied, “I'd just as soon have you forget it.”
The prosecutor said, “If you order me to lay off, I must. But
in that case I will submit my resignation tomorrow and tell the
Newspapers I failed to prosecute Schenck and the gangsters be-
cause you wouldn't let me.”
The prosecution went forward. Schenck, the unfortunate vic-
tim elected to take the fall for the industry, went into a prison
hospital, then back to civilian life. And the real criminals were
secretly paroled before their terms expired
And did anyone point out that Charles Daggett, who refused
to answer whether he was a Communist, was Jimmy Roosevelt's
ghost writer in the last campaign?
Which brings us to the drug-store cowboy from Kansas City
and the grafters, grifters, poker-players, bourbon-drinkers and in-
fluence-peddiers who comprise the present White House Gang.
Qu Ya S5¥o-08
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