Imperial Valley press., 1933-01-26
FIRST MONTHS
ACTIVITIES Of
R. F. c. TOLD
Secrecy Surrounding Loans OF
Over Billion Dollars Exposed
By Report.
BANKS HEAVY BORROWERS
January 6 Statement Shows On
B $267,532,263 Repaid To
Corporation At That Time.

WASHINGTON, Jan. 26. U.P)-
The secrecy which for nearly a
year has hidden early activities OF
the Reconstruction Finance Cor
poration ended today with a re-
port to the house detailing loans
totaling $1,171 ,sS3, ,3o7.
The great lending agency, set up
to save a nations financial struc-
ture disclosed that during the first
six months of its existence it made
more than 5000 advances to great
corporations, banks and railroads.
The disclosure was forced by a
house resolution sponsored by Rep
resentative Edgar Howard (Dem)
Nebraska.
"A voluninous, detailed report on
its activities from its beginning
on February 2 to July 81, 1882
was submitted. Loans since July
81 have been published monthly.
Every state in the union and
nearly every city of any size was
represented in the report.
1t detailed advances made to
small country banks; to great rail-
roads faced with refinancipg oper-
ations of tremendous magnitude;
to banking institutions in the fin
ancial nerve centers of the ma
ton.
OF these total loans, the balance
outstanding January was $685.
651, 1,875. Repayments of principal
up to that time had totaled $751;
532,363.
BY far the heaviest borrowers
were banks and trust companies.
Prior to July 81, loans of $702,-
942,914 had been authorized to
them. Building and loan associa-
tions received authorized advances
of $64,710,783; mortgage loan COM
panies, $40 ,972 900; insurance COM
panies, $65, ,051 500 and railroads,
$223,412,109. q
Big Loans Confirmed
In many instances the actual
funds disbursed were somewhat less
than the authorized amounts.
Other loans were extended to
federal land banks. joint stock
banks, livestock and agricultural
credit corporations and credit un-
ions, and loans for direct agricul-
tural relief administered by the
secretary of agriculture.
The report accorded official
confirmation to three large loans
which have figured in national po-
litical controversy; loans of $64,-
100000 to the Bank of America
National Trust and Savings Asso-
citation of San Francisco; 0000,-
900 to the Chicago Central Repub-
lie Bank and Trust Company; and
$12,272, 500 to the Cleveland Guard
ian Trust Company.
The loan to the Bank of Amer
lea had never before been Off
cially confirmed. All but approx
imately $7000,000 had been repaid
by January 6, of this year.
The Chicago advance was made
to the great financial institution
directed by Charles G.. Dawes, who
shortly before the loan was con-
cluded resigned as president of the
Reconstruction Corporation. This
was the largest loan listed in the
report. The official statement re-
vealed that about $24,000,000 of
the loan had been repaid as of
January 6, 1888.
Insurance Firms Borrow
The comparatively small advance
to the Cleveland institution aroused
particularly interest due to the
fact that the present chairman OF
the Reconstruction Corporation,
Atlee Pomerene, was an official of
the institution at the time the
loan was made. Approximately
$2,000,000 of the amount had been
repaid by January 6.
Advances to insurance compan-
les during the six months period
were also made public for the first
time and revealed loans were made
to institutions in "a states.
Principal loans to railroad dur
ing the period were:
Pennsylvania, $27 100000; Balti-
more e. Ohio, $25, 100000; st. Louis
Southwestern $17,000,000; New York
Central, $l3,6Oooo0; Missouri Pa
cific, $12,800,000; Cincinnati Union
Terminal Company, $10,398,925; and
the Chicago Rock Island g. Pa