Evening star., 1951-04-14
Single Head for RFC
To Be Named Soon;
Truman Plan Wins
By Robert K. Welsh

Senators who won a close VIC
tory for President Truman's plan
to reorganize the Reconstruction
Finance Corp. said today they
expect prompt appointment of
new administrator. ..
Besides w. Stuart Symington,
National Security Resources Board
chair, who has been most promi-
nently mentioned in recent weeks.
General Services Administrator
Jess Larson also is reported to be
under consideration for the job.
The Presidents plan was upheld
when opponents failed late yes
terday to get a necessary 49 votes
to approve a Republican-sponso
resolution to reject it. The vote
was Al for the rejection resolution
and 80 against.
Democratic Senators Byrd and
Robertson of Virginia and Nc
Carran of Nevada voted with the
Republicans. Republican Sena-
tors LANCER and Young of North
Dakota and Morse of Oregon
sided with % Democrats.
Plan Effective Next Friday.
Although the plan substituting
a single RFC administrator for
the present five-member board Of
directors now goes in effect next
Friday, it cannot be fully opera
tive until the $17.500 a year adj
ministrator and his $4,000 a year
deputy are appointed by the Pres
ident and confirmed by the SEN
ate. Meanwhile the present board
continues in Office.
That is regarded as main rea-
son why the appointments are
likely to be made within a few
days. Senate committee hearings
probably would be held immedi-
Iately on them.
Another strong reason for
prompt action in installing an
administrator, some Senators said.
is that three bills to abolish RFC
are pending in the Senate.
Chairman Fulbright of the
Senate Banking subcommittee
that brought out evidence of in
f1uence and favoritism in RFC, has
sponsored a bill to reorganize the
agency still more than the Presi-
dents plan does. 1t provides for
a single administrator but would
set up stricter limitations and
safeguards on many RFC activi-
ties.
The Banking Committee plans
to hold hearings on that measure
as well as the ones to liquidate
IRFC.
Senator Fulbright led the Sen.
ate fight for approval of the Pres
ident's plan. He described that
plan as inadequate but said it
covers the major element that
needs reform in RFC." He prom
Used to seek further improvements
such as his own bill proposes
Senators Capehart. Republican.
OF Indiana. sponsor of the reso-
luton to reject the plan, said he
did not favor abolishing RFC. He
contended that the lending
agency should have a board Of
directors "like a bank" and that
appointment of a single adminis-
traitor would put too much au.
thority in one mans hands"
George Favors Saving Agency.
Senator George, Democrat, of
Georgia told the Senate in the
Iday-long debate that passage of
the Capehart resolution would re-
suit in killing the agency. He and
several other Democratic Senators
said they did not believe Senator
Capehart intended to do that.
II do not condone RFC mistakes
or wrongdoing," he declared, "I
would favor some further changes
but not the destruction of the
agency. believe Congress has
been responsible to some extent for
the practices for which RFC is be-
ing criticized"
He urged continuance and
Strengthening of RFC, especially
as an aid to small business. Fed
eral taxes are so high, he said,
that small businesses cannot repay
bank loans in one year.