The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1933-01-26
R. F. c. LOANS
MADE PUBLIC.
TOTAL BILLION
Huge Advances Disclosed to
Big Corporations, Banks
and Railroads.
FORCED BY HOUSE ACT
Every City of Any Size in
County Represented on
Borrower List.
By I Rited Press


WASHINGTON, Jan. 26.-Secrecy
which for nearly a year has hidden
early activities OF the Reconstruct
ton Finance Corporation ended to-
day, with report to the house de-
failing loans totaling $1,171 ,983, 307
The great lending agency, set up
to save a nations financial struc-
ture, disclosed that during the first
SIX months CT 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,
Neb0.
For months the corporation has
fought publicity, holding it would
be dangerous to its borrowers. To-
day, over strenuous protests, it sub
mitted to Clerk of House South
Trimble a voluminous, detailed re-
port of its activities from its be-
ginning on Feb. 2 to July 81, 1882.
Reveals Millions in Loans
Loans since July 81 have been
published monthly.
In hundreds of pages of manu-
script and long rows of figures, the
report revealed how the government
poured out hundreds of millions
during the financial crisis last
spring.
Every state in the Union and
nearly every city of any size was
represented in the report.
1t detailed advances made to
small county banks; to great rail-
roads faced with refining operations
of tremendous magnitude; to bank
ing institutions in the financial
nerve centers of the nation.
Of these total loans, the balance
outstanding Jan. was 1888, 651 ,875.
Repayments of principal up to that
time had totaled $267 ,532, 1868.
Banks Barrow Heavily
BY far the heaviest borrowers
were banks and trust companies.
Prior to July 81, loans of 2,942,-
914 had been authorized to them
Building and loan associations re-
ceived authorized advances of $64,-
710,783; mortgage loan companies,
$40 ,972,000; insurance companies,
SOS ,$51 500, and railroads, 1928, 412,-
100.
In many instances the actual
funds disbursed we're somewhat less
than the authorized amounts.
Other loans were extended to fed
eral land banks, joint stock land
banks, livestock and agricultural
credit corporations and credit
unions, and loans for direct agri-
cultural relief administered by the
secretary of agriculture.
The report accorded official con-
flrmation to three large loans which
have figured in national political
controversy. loans of $64,500,000 to
the Bank of America National Trust
and Savings Association of San
Francisco; $90,00O0O0 to the Chicago
Central Republic Bank and Trust
Company, and $12272,50O to the
Cleveland Guardian Trust Company.
Loan Just Disclosed
The loan to the Bank of America
before had never been officially con-
flrmed. All but approximately ST.
100000 had been repaid by Jan. 6
Of this year The Chicago advance
was made to the great financial in
stitution directed by Charles G..
Dawes. This was the largest loan
listed in the report.
The comparatively small advance
to the Cleveland institution aroused
particular interest, due to the fact
that the present chairman of the
Reconstruction Corporation. Atlee
Pomerene, was an official of the in
stitution at the time the loan was
made.
Advances to insurance companies
during the six months period were
also made public for the first time
and revealed loans were made to
institutions in twenty-four states.