Evening star., 1951-03-16
COP. Effortto Extend
RFC Inquiry Gains
Democratic Backinq
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SSsttSSt NHhS ~SSbNtElSJ
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Fulbright covered up for any one.
But he maintained that, if Sem
ator Fulbright had been "politi-
cally minded chairman" he could
have brought out some RFC loan
matters at the hearings in such
a way that some Republican fig
ures might have appeared un-
favorably in the spotlight.
Gabrielson Takes Exception.
Republican National Chairman
Guy Gabrielson, however, took ex-
ception last night to that version
and to further comment by
Senator Douglas concerning $18.5
million in RFC loans to the Garth
age Hydrocol Co. of which Mr..
Gabrielson was an officer. Sena-
tor Douglas said he had found no
evidence of illegality in connec-
ton with those loans, but he,
nevertheless, was extremely du-
bious" that the company would
have been unable to get credit
anywhere except from the Gov
ernment.
Replying to a protest telegram
from Mr. Gabrielson, Senator
Douglas telegraphed the Republi-
can chairman that your COL
leagues in their proper desire to
defend you have apparently mis-
understood what I said on the
Senate floor concerning the fair
ness of the chairman of the sub
committee.
Noting that companies owning
the Carthage concern had assets
totaling almost 81 billion, the
Illinois Senator declared he did
not believe an RFC loan was in
1946 necessary or proper. He and
several other members of the
subcommittee held that view, he
said, but the subcommittee did
not choose to place any special
emphasis on the investigation of
that loan"
Senators Capehart, Bricker of
Ohio, Thye of Minnesota, and
other Republicans, including Min
ority Leader Wherry, told the Sem
ate the subcommittee should not
be permitted to end it's inquiry,
even though its authority and
funds ordinarily would end on
April 80.
Senator Bricker, accused earlier
by Senator F'ulbrighJ of having i'm
piled that the Democrats want to
wind up the sessions "for political
reasons and as Whitewash."
angrily insisted that Democratic
National Chairman William M.
Boyle. jr.. and Presidential Aide
Donald DoWson be called to testify
Their names, he said, have
popped up continually in the hear
ings into alleged influence and
favoritism touching some RFC
directors and loans.
Senator Fulbright, noting that
he has been highly critical of RFC
management and operations. de-
clared again that the agency
should be reformed and not
abolished as the Republican Sen
ate Policy Committee has urged.
AS for continuation of the sub
committee hearings, he said, such
a course probably would develop
additional disclosures, but these
would be merely repetitiouS.
The subcommitte has achieved its
purpose and has dug up many
matters that other Congressional
committees or a special outside
commission might well look into,
he said.
Some of the cases." he added,
seem to lap over into the Inter-
nal Revenue Bureau and the
Maritime Commission, and per-
haps an investigation of those
angles would be appropriate by
some other group.
But this great desire to con-
tinue the Senate subcommittee ON
RFC is very largely inspired by
political motives" he charged. Il
think the Republicans would like
to have it run on until just before
the 1852 election because it has
uncovered little dirt"
Would Accept Broader Inquiry.
The Arkansas Senator said he
had no objection to broadening
the inquiry, if the Senate so
directs, although he commented
that he had spent the greater
part of his time during the last
year in that work.
The Chamber of Commerce di-
rectors in urging an end to the
RFC. said:
/. Abolition of RFC would save
approximately $18 million in ad-
miniStrative expense and would
reduce federal personnel-noW at
record high level-by 5000 en-
ployees."
2. A tendency toward in
creased interest rates" will make
private lenders more willing to
make business loans.
RFC was created in 1882 to
provide emergency financing in
the depression. Noting the change
in economic conditions, the cham
ber directors said, Its continued
existence in an inf1ationary era
cannot be justified. Today pri-
vate financial facilities are suf-
fcient to meet normal needs
Agent for Defense Agencies.
The chamber also said the De-
fense Production Act passed last
year contains elaborate provi-
sions" for Government defense
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