Evening star., 1946-12-27
Allen Quits RFC,
Urges Complete
Revision Of Act
Will Be Succeeded
By John D. GoodIoe,
Now General Counsel
(TeTt of Truman Allen Letters
on Page Az
By Joseph A. Fox

By Joseph A. Fox
George E. Allen resigned today
as director of the Reconstruc-
ton Finance Corp. and concur
rently made a series of recon-
mendations to President Truman
for complete revision" of the
act setting up the vast lending
agency.
Mr.. Allen sketched the proposed
changes in his letter of resignation
and said they had the full support
of the board. In response, the Pres
ident promised immediate consid-
Grafton" of the plan.
In summation, Mr.. Allen said the
recommendations constitute COM
plete revision of that act and of
other legislation related to it. They
simplify and consolidate into one
enactment the provisions for the
basic lending power of the Recon-
struction Finance Corp. They re-
peal all of the corporations extraor-
dinary wartime powers and eliminate
all peacetime powers which expert
ence has shown to be now unneces-
sary."
Allen Has No Plans.
Mr.. Truman promptly appointed
John D. Goodloe, general counsel
of the RFC, as Mr.. Aliens successor
The post pays $4,000 a year.
Mr.. Allen called at the White
House today with Mr.. Goodloe to
give the President the recommenda-
tions for RFC changes. He told re-
porters that he had made no plans
yet but that he expected to return
to private business.
He has widespread corporate in
terests which were the basis of at
tacks when he was appointed.
Asked about the possibility of
taking another Government post,
he responded, mot that know Of :"
mo other political post, either?"
he was asked.
Il wouldn't say that just have
no plans" Mr.. Allen responded.
Intended to Serve Year.
In accepting the resignation, the
President recalled that Mr.. Allen
had intended to serve only a year,
but said that nevertheless Il am
indeed sorry to receive" the resigna-
ton.
81 am grateful to you for your
service during the past year." the.
President said. You have been
helpful to me not only in your
formal post but in many instances
in which I have called upon you
for advice"
Wishing Mr.. Allen luck in future
undertakings, the President said
that he would feel free if need be
to call upon him for future counsel.
In recommending changes in the
RFC Act, Mr. Allen told the Presi-
dent: ~
1--WE of the Board of the Direc-
tors of the Reconstruction Finance
Corp, during the past year, have
given much thought to the role
which the corporation should play in
the immediate future. We have
spent much time and effort in pre-
pairing a detailed revaluation of the
functions and operations of the
board A report, representing the
combined thinking of the Board of
Directors, has been prepared in the
form of specific recommendations
We are submitting that report here
with for your consideration, and, if
you deem it advisable, for submis-
sion to the Congress"
Simplification Sought.
In preamble to the bill pre-
pared at the RFC to revise its
powers, it is explained that under
the provisions of existing law all of
the lending and other powers and
functions of the Reconstruction FL
nance Corp. will terminate on June
30, 1947. These include various Ma
tional defense and wartime func-
tions and other powers which have
served their purpose and are no
longer needed.
MANY of these grants of authority
are contained in amendments to the
Finance Corp. Act
which have been adopted from time
to time since 1892; others are found
in separate statutes. 1t is the pur-
pose of this bill to simplify the pro-
visions of the RFC Act, to elimina tie
all grants of authority which are
no longer needed, to bring together
in one act all of the general func-
tions of the corporation which are
to be continued" and finally to ex-
tend such functions as Congress
may see fit
The capitalization of the RFC
would remain at $325,00 0G0.
One important power to be re-
served would be to make loans to
the Secretary of Agriculture for
rural rehabilitation and farm ten
ancy and to the Rural Electrical
ton Administrator for rural cleo
trif1cation.
Mr.. Goodloe is a native of Rich
mond, KY. He was born June 10,
1908, and has been in the Govern
ment service for Is years.
Originally in newspaper work in