Evening star., 1938-04-01
SENATE APPROVES
BILL TO BROADEN
F.C.L0AN POWER
Glass Plan Would Extend
Scope and Furnishes
$1,000, 900, 900.
PROPOSAL Is RUSHED
THROUGH BY GARNER
Jesse Jones Testifies Funds
Available to Business on
15-Year Basis.
By the Associated Press.

By the Associated Press.
The Senate today passed a bill to
give the Reconstruction Finance Corp.
wide new authority TO lend to busi-
ness enterprises. 1t also would revive
r. F. c. loans to States and subdi-
visions for public works construction.
The administration measure now
goes to the House.
The bill, by Senator Glass, Demo-
crat, of Virginia, would extend the
scope of r. F. c. lending and permit
that agency to make available ap-
proximately $1,000 100000 for long
time loans
Loans to States and subdivisions
would be permitted not only on So
called "self-liquidatlng" projects but
on all projects where the R F. C. finds
there is reasonable assurance of re-
payment.
Chairman Jesse H. Jones of the R
F. c. testified the measure would
make funds available for 5, 10 or Is
year loans to business which COM
mercial banks might not undertake.
Bill Rushed Through.
The bill was passed before many
Senator's knew what was happening.
Vice President Garner, Immediately
after the roll call at the opening Of
the days session, called for a voice
vote on an amendment When a
thin chorus of ayes" was heard he
called for a vote on final passage Of
the bill. The measure carried by
second voice vote.
Just before the measure was called
up. Majority Leader Barkley of Ken
lucky asserted:
1T is necessary to get this bill
enacted as soon as possible"
Chairman Wagner. Democrat, Of
New York of the Banking Committee
said the chief business aid would be
to extend the R. F. C's power to make
long-term loans.
May Share Loans,
Il understand" he said, that the
R. F, c. hopes to cooperate with the
banks in making capital investments.
Because of the limitations on bank
loans, the r. F. c. may be able to
grant longer terms on some of them
than the banks"
He said it was possible that a busi-
ness firm might obtain part of needed
funds from its bank and part from
the r. F. c.
Or" he said, "the R. F. c. might 20
in and say to the bank: Here. we'll
take part of this loan if you feel that
you cannot tie your money up in the
full amount"
The r. F. c. bill was one OF sew
eral proposals under consideration by
administration officials to aid busi-
ness. Authoritative spokesmen dis
closed the administration was at
tempting to batter down building
prices in the hope of stimulating a
construction boon.
This, they said, was one Of the
deeper motives of presidential oNder
requiring certificates of non-collusion
from manufacturers selling building
materials to the Government.
They recalled that vigorous build
ing movement was under way early
in 1887, and asserted it was halted
principally because of sharp rises in
building material prices.
Compared with November, costs of
residential construction have declined
substantially but recent Federal
Home Loan Bank board survey
showed that in 16 out of 81 cities
costs were higher last February than
in February. 1887. In seven Of %
cities, prices were lower than last No
vember.
A series of conferences between
Assistant Attorney General Thurman
w. Arnold and Antitrust Division
officials gave rise meanwhile to spec
ulation that the administration Is
considering definite action on revising
the antitrust laws.
Officials Decline Comment.
Justice Department officials de-
clined to discuss the conferences, but
an informed person indicated Mr..
Arnold had presented detailed pro-
gram for Tightening Government con-
troll over business
Among those attending the confer
ences was Solicitor General Robert H.
Jackson, whom Mr.. Arnold succeeded
as the administrations mo. l trust
buster"
A series of magazine articles by Mr..
Arnold, yet unpublished, proposes sew
eral governmental controls" of big
business. Mr.. Arnold withheld the
articles from publication when offered
the assistant attorney generalship.
Mentioned prominently as possible
objectives are
Tax, tariff and patent law changes.
Limitations of the percentage of con-
troll any corporation may exert over
any industry.
Federal licensing of interstate cor
porations.
Public competition or publicly sub
sidized competition in industries where
private competition fails to protect
the pubic.
On the railroad front, Chairman
Lea, Democrat, of California of the
House Interstate Commerce Committee
said he believed President Roosevelt's
forthcoming message to Congress
would recommend emergency aid for
railroads rather than long-term con-
caliIof fiop ,,1ar