The Fist Tightens

The Senate Committee probing RFC last week drew a bead on one of RFC's best customers--Kaiser-Frazer Corp. In a 30-page report, the Committee charged RFC should not have made a $34 million loan to K-F in October 1949. Even though K-F would have gone bankrupt without it, said the Committee, K-F's prospects of repaying out of earnings were so dim that "the public [interest]...did not justify the use of public funds to continue operation of K-F as an auto company." Following the first loan, K-F tapped RFC for $35 million more, repaid about $11 million. That wasn't fast enough for RFC Administrator Symington. Last week, he ordered K-F to start cleaning up $20 million of its debt by December 15, 1951, some 2 1/2 years ahead of schedule.

This file is automatically generated by a robot program, so reader's discretion is required.