Word: tobeys
(lookup in dictionary)
(lookup stats)
Dates: during 1950-1959
Sort By: most recent first
(reverse)
...skeleton was first glimpsed by New Hampshire's Republican Senator Charles W. Tobey four years ago. As chairman of a Senate subcommittee probing RFC, he wrote a blistering report accusing RFC and B. & O. officials of evading payment of the loans by "collusive" bankruptcy. But Tobey failed to get the committee to agree and the report was never released. Last week the report came out after an ex-Tobey aide, Randolph Phillips, a Washington financial consultant, reportedly leaked key sections to Herald Tribune Reporter Jack Steele and Columnist Drew Pearson...
...bankruptcy again in 1944, at a time when its net profits for the four previous years were $117 million, highest in the B. & O.'s 120-year history. The railroad claimed it was forced into bankruptcy because it couldn't afford to pay its RFC loan. Senator Tobey charged that the bankruptcy was "collusive and irregular" because the road, with RFC's knowledge, had put on a poor mouth by juggling its cash. It had siphoned off $31.5 million to pay off bonds long before they were due, had underestimated its earnings for the following year...
...said Senator Tobey, had conspired to put through the second bankruptcy so that the B. & O. could put off paying its RFC debt until 1965. Tobey charged that B. & O. officials had feared that the Democrats might lose the 1944 election and new RFC officials might not be as cooperative as Jones and his men, so they wanted to get everything set ahead of time...
After the second bankruptcy, B. & O. General Solicitor Cassius Clay (an ex-RFC lawyer), resigned in disgust, was joined by another B. & O. lawyer. Said 'lay after he quit: the loans were a "gigantic steal," a "frame-up" and a "fraud." The bankruptcy, said the Tobey report, did more than postpone payment of the loan. It enabled the railroad to convert the notes held by RFC into non-salable bonds, hence left RFC with a frozen loan rather than a live claim on the B. & O.'s assets. Once converted, RFC's collateral Dehind its loans...
...Republican Charles Tobey of New Hampshire who found the drizzle most monotonous. "I am impressed," cried he in soap-opera tremolo, "with the futility of much that is going on here . . . I wish we could ring the curtain down, for the good of the country...