Monday, Dec. 11, 1950
No, But ...
Only a month after paying off the last of a $123 million RFC loan on his Fontana steel mill, Industrialist Henry Kaiser was back hat in hand last week knocking on RFC's door. This time he wanted $38 million for his auto company, Kaiser-Frazer, which already owes RFC $43 million. K-F President Edgar Kaiser explained that the company needs the money to tide it over until it can sell its backlog of 18,000 cars. He said that the Government's credit restrictions had slowed up its sales so much that K-F had to cut production from 1,600 to 800 cars a day, would soon have to drop to 600. RFC offered Henry $25 million, and asked for stringent collateral. Henry, who hopes that defense orders will soon bail his company out, decided to mull it over.
To build a turnpike from Oklahoma City to Tulsa, the Oklahoma Turnpike Authority asked RFC for a $30 million loan. RFC advised the Authority to see if it could borrow the money from private sources. Last week the Authority closed a deal with a group of New York bond houses for a $32 million loan at 3.6% interest, $128,000 a year less in interest than RFC's 4%. Cheerily, the Authority wired RFC Chairman W. E. Harber: "Do you need any money? We have plenty."
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