Evening star., 1941-05-17
Sf,5OO,OOO, R.F.c.
Bill Passes Senate
And Goes 10 House
outIoy Of $3.50, 900. 900
On Tools for Defense
Industries Planned

A Senate-approved measure to
give the Reconstruction Finance
Corp. another 81 500 100000 in bor-
rowing power awaited House con-
sideratior today.
Meanwhile Jesse Jones, Federal
loan administrator, disclosed that
the r. F. C. had committed itself to
provide tools and materials for the
Nations defense industries at a
cost of $3.50, ,0O0, 900.
Brief debate preceded Senate ap-
proval yesterday of the bill designed
to give the r. r. C. new powers to
speed national defense, although q
voice vote was not marked by
unanimity. Senator Danaher, Re-
publican. of Connecticut said Con-
gress was creating "super-Govern-
ment," while Senator Adams, Demo-
crat, of Colorado declared the
powers proposed were broad enough
to give R F. C. means to enlist and
drill an army"
Under the measure the authority
of defense subsidiaries of the agency
would be broadened and the life of
the Disaster Loan Corp. and the
Electric Home and Farm Authority
extended until January "a, 1947.
The r. F. C.s subsidiary corpora
tions would be authorized to pro-
duce, buy or sell strategic materials
and acquire railroad and CONNER
cial aircraft and equipment. The
legislation also would permit loans
to foreign governments who put up
American securities as collateral.
Will Buy Machine Tools.
Mr.. Jones announced that the
Defense Plant Corp, an r. F. C.
subsidiary, would buy $500, ,000, 900
worth of machine tools at the re-
quest of William s. Knudsen, direc-
tor of the o. P. NJ, to speed defense
work on an around-the-clock basis.
The tools would be leased or resold
to defense factories. He said the
Defense Plant Corp. has bought
$4,000 900 worth of aluminium from
the Aluminium Co. of Canada and
has promised to build four syn
thetic rubber manufacturing plants
at a cost of 81 ,250 900 each.
The Export Bank, he
said, has agreed to buy $4,000, 900
worth of rubber, chromium, indus
trial diamonds and other materials,
from Brazil.
Total obligations of the r. r. G.
have been brought to almost $4,000
0O0,o0C
Mr.. Jone added that some addi-
tional steel-making capacity may be
needed to make certain kinds of
steel although it is doubtful If any
new overall steel capacity is needed"
More Steel May Be Needed.
More steel capacity may be re-
quired, he added, on the West Coast,
out probably should be constructed
by existing steel companies rather
than the new venture proposed re-
Gently by Henry J. Kaiser, West
Coast financier. Mr. Jones noted
that Bethlehem and United States
Steel had West Coast plants and
could do the job more quickly
and soundly than a new company. p
The new rubber facotries will be
designed, Mr.. Jones explained, to
teach us how to make and use" the
new products. He has been buying
reserve supplies of natural rubber,
particularly in the Far East, and
has been skeptical of the immediate
need for substituting artificial rub
ber for natural rubber, because the
synthetic product costs about twice
as much.
Three of the factories will be
built at Akron, Ohio, and leased for
operation to the Goodyear, Good
rich and Firestone tire companies
The fourth will be at Naugatuck,
Conn. and operated by the United
States Rubber Co. Each plant will
have a capacity of $500 tons per
year, but will be designed so that
capacity can be expanded quickly to
10000 tons per wear per plant.