The CHAIRMAN. Now, what is the status of those loans today? Mr. GAYNOR. On December 31, 1970, I received a note from the Governor that as a gift he had canceled my indebtedness. The CHAIRMAN. So that was practically 5 years after the loans were made, roughly. Mr. GAYNOR. That is right. The loans were dated 1963 and 1965. The CHAIRMAN. Did you have any discussion with the Governor at that time? Mr. GAYNOR. In 1970, sir? The CHAIRMAN. Yes. Mr. GAYNOR. No; I did not. The CHAIRMAN. About the cancellation of the loans? Mr. GAYNOR. No; I did not. The CHAIRMAN. Did you ever discuss with him whether you would or would not be able to pay the loans when they became due? Mr. GAYNOR. No, sir. The CHAIRMAN. And you received a letter, did you, dated December 31, 1970? Mr. GAYNOR. Yes, sir. The CHAIRMAN. Advising you that the evidence of the indebtedness was marked canceled and enclosed, and both of the notes were enclosed? Mr. GAYNOR. Yes, sir. The CHAIRMAN. I wonder if you would just examine a copy of the letter and the two notes and if that is a correct copy, we would like to make that a part of the record. Mr. GAYNOR. I am sure it is. The CHAIRMAN. I think that is the copy you furnished our staff. [Witness examines note.] Mr. GAYNOR. Yes, sir. NELSON A. ROCKEFELLER December 31, 1970 Dear Jim: In the spirit of the Season, and as an expression of my continuing appreciation of our relationship, I have, as a gift to you, cancelled your indebtedness to me. The evidence of this indebtedness, marked cancelled, is enclosed. With warm regard, Sincerely, The Honorable James W. Gaynor Phelps, Fenn & Company 39 Broadway New York, New York On or before January 1, 1968, for value received, I promise to pay to the order of Nelson A. Rockefeller, at 30 Rockefeller Plaza, New York 20, New York, the sum of Fifty Thousand llars ($50,000.00), without interest. しい James W. Gaynor $50,000.00 March 17, 1965 to Day to the order of deson Mer, Rockefeller Plaza, New York 20, New York, the sum of The CHAIRMAN. Did you have any feeling that these loans were compensation for the performance of your official duties in New York? Mr. GAYNOR. No, sir. The CHAIRMAN. What did you think they were for, really? Mr. GAYNOR. I think it was an appreciation of the Governor that my personal estate was probably suffering from problems that were somewhat extraneous, as I said, certain serious illnesses. And also, my own problems of setting up what I needed in post retirement to take care of those particular financial demands which I easily anticipated. The CHAIRMAN. Senator Scott? Senator HUGH SCOTT. No questions. The CHAIRMAN. Senator Griffin? The CHAIRMAN. Senator Byrd? Senator ROBERT C. BYRD. Mr. Gaynor, I have heard the questions and I have heard your answers. I think I must share with my chairman some feeling of wonderment as to how this could all have come about. The loans were made without your having requested them, they were made without interest, I believe you said. And then they were canceled almost 2 years after you had resigned your position. As I understand it, you had had no discussions with the Governor which would have indicated that the Governor meant to cancel these loans at any time. Mr. GAYNOR. No, sir. And in addition to your wonderment, Senator, I had a considerable discussion with Mrs. Gaynor, because I have never owed anybody. I don't have mortgages, I don't have time payments. I am just not the person who goes into debt. I was taught, never a lender nor a borrower be. And it was only after considerable discussion with Mrs. Gaynor that I signed the note, because most certainly, it was welcome. Senator ROBERT C. BYRD. It was what? Mr. GAYNOR. It was welcome. The $50,000 and the subsequent $50,000 were certainly welcome. Senator ROBERT C. BYRD. Yes. Mr. GAYNOR. But I did it probably because it was Governor Rockefeller. I certainly wouldn't have signed a note in that amount for anybody else. Senator ROBERT C. BYRD. You would or would not have? Mr. GAYNOR. I would not. Senator ROBERT C. BYRD. Did you fully intend to make repayment? Mr. GAYNOR. Oh, yes, sir. Senator ROBERT C. BYRD. Did you feel that the Governor intended that repayment be made? Mr. GAYNOR. Yes, sir. Senator ROBERT C. BYRD. During the 2 years following your resignation and up to the date of your receiving the letter of cancellation of the loans, did you have any conversations with the Governor to state to him that, although you had resigned from that public position, you still intended to make the payments on the loans? Mr. GAYNOR. I had no conversations with the Governor. Mr. GAYNOR. No, sir. |