Show SENATE SENA IE PROBES LOAN TO DAWES DAWE'S WES WE'S Advance to Bank Bankin in Chicago in Default for Year YearBy YearBy By Dy LYLE C. C WILSON VILSON Copyright 1933 by bythe the United Press WASHINGTON Dec Dee 4 A 4 A loan of from the ilie Reconstruction Finance corporation to the Central Republic Bank and md Trust company of Chicago matured December 23 1932 and has not been renewed r rec records cords cords c- c of ot the R. R F. F C. C revealed today The unpaid balance iS is The loan is considered in technical cal default but put it was explained that by not renewing the loan the R. R F F. C. C obtained more complete control over collateral than it would enjoy if the maturity of ot the obligation had been extended Dawes Heads Bank Former Vice President Charles G. G Dar Dawes D w s' s was was head he d of the Central Republic Republic Re Re- public Bank and Trust comp company n when the loan secured by to items of ot collateral was made in the latter part of June 1932 Dawes resigned as president of the R. R F. F C. C about two weeks before fore the loan loon was advanced and returned to Chicago to resume his position as chairman of the board of o the bank which now is u in liquidation Circumstances of the loan and the fact that it was the largest single advance advance advance ad ad- vance in the Hoover campaign to conquer conquer con conS quer depression prompted Sharp harp congressional congressional con gressional comment Representative LaGuardia Rep N Y Y and now mayor-elect mayor of New York City charged charred that Dawes resigned d from the th R. R FC F F. F C. C to avoid approving the loan loan- Representative Sabath Rep Ill was bitter in a statement that two Thirty banks have closed clo d in iti Chicago in one week which could have been saved by a loan But one bank alone controlled bythe by boy the special favored interests of at which Charles G G. G Dawes was the chairman obtained Defenders of the loan contended that a general collapse of middle western financial institutions would have taken place in the summer of 1932 but for the Daw Dawes loan loon A subcommittee of the senate b bankIng bank bank- Ing lag and currency committee has called on the R. R F F. F C. C for a complete report on the Dawes loan including an statement Itemized of collateral teral The corporation contemplates gradual gradual grad grad- ual liquidation of the loan but under no circumstances would it hurry liquidation to the extent that securities ties would have to be dumped on the market at sacrifice prices |