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Eleanor Roosevelt — Part 16

57 pages · May 09, 2026 · Document date: Apr 20, 1953 · Broad topic: Civil Rights · Topic: Eleanor Roosevelt · 57 pages OCR'd
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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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