Evening star., 1946-11-02
Wyatt Believes
HeCan 0verruIe
RFC on Loans
Voices Optimism in
Controversy Over
Prefobricoted Homes
BY the Associoted Press

Housing Administrator Wilson
Wyatt declared today he is "op-
timistic" that his emergency
powers could compel the reluc-
tant Reconstruction Finance
Corp. to grant more than $780,
100000 in loans to assembly,
line home producers.
Mr.. Wyatt told news conference
that RFC had agreed to only two
of dozen loans recommended by
him. The two total only s2,50O,000.
1t has refused four loans, four are
pending, and two have been with
drawn by the companies involved,
he said. One of those turned down
calls for upward of S32 100000 for
the Lustron Corp of Chicago.
Directive Planned.
Mr.. Wyatt has served notice he
will issue directive on RFC, using
his powers under the Veterans
Emergency Housing Patman) Act.
The loans mean construction OF
100000 moderately priced, factory
built houses next year, he said, and
have importance beyond the i'm
mediate housing goals.
"Other companies will be encour-
aged to go into industrialized hous-
ing when it becomes obvious that
the industry has the support and
assistance of the Government" Mr..
Wyatt said.
Congress clearly intended that
the Government should take risks
in getting homes for veterans, Mr..
Wyatt contended.
Confers With Steelman.
The housing chief disclosed he
has conferred with Reconversion
Director Steelman, but said he did
not plan to seek White House help
in the clash with RFC.
Il feel optimistic of the authority
I have in this question: he said.
RIGS objections are based on the
feeling that the business is a new
one and that more private money
should be put into it, Mr.. wyatt
said.
The loans approved are s1,5o0,o0o
to the General Panel Co. of Los
Angeles, for the construction of
8 $500 wooden pre-fabs next year, and
81 100000 for the Knox Corp. Of
Thomson, Ga, for the building Of
5000 wooden pre-fabs.
| Loans Turned Down.
The following loans have been
turned down, Mr.. Wyatt said.
Lustron, Chicago. S32,000,000 plus
some part of an additional S20,000,-
900 in financing, to permit produc-
ton of 10000 houses next year and
bathroom and kitchen fitting for
| 20 600 additional homes.
| General Homes, Columbus, Ohio,
50 900 900, for 1926 houses.
Interlocking Walls Corp, Los
Angeles. $4,000, for wall materials
for 1000 houses.
Laminated wood products, Knox
vile, Tenn, s1,710,000, for flooring
for $4,000 houses.
The following applications are
pending and in some cases formal
data have not been filed with the
RFC on which to base decision:
Higgins, Inc, of New Orleans,
S11 600 900, for 10000 houses.
Reliance Homes, Inc, Lester, Pa.
SIS 100000, for 900 steel houses.
Clements Corp, Southport. Conn.,.
S., 900 900, for 5000 houses.
Crawford & Co., Baton Rouge,
La, $850,000, for 1000 houses.
Five Points at Issue.
Leading up to today's situation
was this sequence of events:
1. War Assets Administration
leased the Government owned Chrys-
ler-Dodge plant in Chicago to Tuck
er Corp. which wants to make auto
mobiles there.
2. Mr.. Wyatt directed WAA to
withdraw from this agreement and
turn the factory over to Lustron
Corp.
3. The RFC denied the Wyatt
recommended s32, 900, 900 credit which
Lustron needed for capital
4. Mr. Wyatt went to the mat with
the RFC directors late yesterday,
then issued a statement saying, THE
matter of directives was discussed
- as we'll as loans Other dis
cussions will be held in the next
few days"
S. Preston Tucker, president Of
the Tucker Corp, said his lawyers
will go to court not later than
Monday for an injunction to keep
the Government from turning the
plant over to Lustron.
He said he believed Mr.. Wyatt
had been "misled"; that Lustron
needed a fabricating plant instead
of machining plant like the for
mer tank-turret factory; and that
Lustron couldn't get into proouc-
tio,, for two yearSn in SlJch nllar.