DOCUMENTARY HISTORY OF THE FLORIDA CANAL


 The CHAIMYA. Can you tell us ofhand what percentage, what
proportion, of applications of that sort that passed under your eye
were rejected
 Secretary IOKE. That came from the R. F. C.
 The CHAIRMAN. Yes.
 Secretary ICKES. I think the casualties were rather heavy. Have
you any idea, Mrs. Graham?
 Mrs. LEONA GRAHAM (executive assistant, Public Works Adminis-
tration). I don't know. There were about 700 altogether that came
over.
 Secretary Icos. And very few of those passed our scrutiny. We
never favored, from the beginning, lending money to a private cor-
poration or to a private individual. Our concern was to help munici-
palities, counties, and States to build public works on a loan-and-
grant basis.
 The CHAIRMAN. Did this particular application receive study in
your office?
 Secretary Icxws. Yes.
 The CHArMAN. And I suppose in the course of the morning you
will tell us why it was rejected I
 Secretary Ic We did not think that it was self-liquidating.
 Senator VANDENBERG. I wonder if we cannot take it step by step.
 The CHAnmtAN. Very well. I do not want to interfere with the
orderly procedure of counsel.
 Senator VANDENBEoG. Mr. Secretary the first thing that happened,
was it not, was the instruction of the President to appoint a special
board of review consisting of five engineers?
 Secretary IcOKs. That came rather well along in the proceeding.
 Senator FLzETR. This was not the first thing
 Secretary ICKEs. No; this was not the first thing.
 Senator VANDENBERG. The special board of review was appointed ?
 Secretary ICKEs. Our engineers had made a report. Following
that report, the President instructed the setting up of this special
commission.
 Senator VANDENmBEG. The first actual action taken by your
P. W. A., I think, was on December 21, 1934, was it not ? I am refer-
ring to the recommendation of Maj. Philip B. Fleming, Acting
Deputy Administrator, as submitted to you.
 Secretary IcKE That is right.
 Senator VANDENBERG. What was the nature of that report of
Major Fleming, do you recall
 Secretary IcKES. I recall it was an adverse report. He recom-
mended it be disapproved.
 The CHAIrMAN. Let me inquire here: How did Major Fleming
happen to present this letter I want to have this clear in my mind
too.
 Senator VANDENBEoG. Well, I am sure the Secretary could respond
to that better than I could.
 Secretary ICKES. Here was our course of procedure: An applica-
tion came in for a P. W. A. project. That would be referred simul-
taneously to our three divisions: Finance, engineering, and legal.


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