Evening star., 1951-02-20
RFC.'
Continued From First Page.)

subcommittee, Senator F'ulbrlght
told reporters, wants to determine
whether it was in the public in
terest and whether any outside in
6uence was brought to bear on
RFC directors in granting it. Mr..
Sax, Senator Fulbright explained,
has been described as a punch
board manufacturer.
Quizzed on Guest List.
The Senator said the question:
ing yesterday brought out very
little that we didn't know before. >"
1t was arranged, he explained, be-
cause Mr.. Sax had not previously
been heard and because the sub
committee hoped for further in
formation in advance of the open
hearings. Disclosing that Mr.. Sax
was asked about the hotels guest
list. Senator Fulbright refused to
tay whether investigators recog-
nized any of the names.
The subcommittee scheduled a
tlosed session for this morning to
arrange further details of the pub
lie hearings. Mr.. Sax is expected
to testify next week. Three of the
RFC directors and E. Merl Young.
former RFC examiner criticized by
the subcommittee for repeatedly
eXerting influence after he left the
agency, will be the first witnesses.
President Truman's move yes
terday was not unexpected, in
view Of his news conference an
nouncement February 8 that he
was working on a reorganization
recommendation to Congress.
1t, nevertheless, came as a sur
prise to Senate subcommittee
members and others because of its
sudden. timing and the extent to
which it met the subcommittee
views. Senate Democratic Leader
Mcfarland disclosed that earlier
yesterday the President did not
mention the matter at confer
ence with party leaders.
Harber Mentioned.
1t reached Congress exactly a
week after the President re-sub-
mitted nominations of the five
present RFC directors. The Sen
ate Banking Committee has indi-
Gated it would take no action on
those nominations. The Presi-
dents action yesterday revived
rumors that he might appoint w.
Elmer Harber, present RFC chair
man, as the single administrator.
Senator Fulbright said he knew
ef no such plan and that "there
certainly is no deal as far as I'm
concerned"
The resolution goes to the
Senate Expenditures Committee,
headed by Senator Mcclellan,
Democrat, of Arkansas. He said
he doubted the RFC would be
strengthened by a proposed pro-
vision for what he called float
Ing member" of a loan policy
board.
That board, designed to estab-
lish general policy rather than
pass on specific loans, would con-
s;st of the RFC administrator and
deputy administrator, Secretary of
Commerce and Secretary OF the
Treasury and zone member who
shall be designated from time to
time by the President from among
the officers of the United States
who are required to be appointed
by and with the advice and con-
sent of the Senate"
Senator Mcclellan said he
thought the time to time" pro-
vision would ''tend to make RFC
more confusing" Another Sena-
tor. active in the RFC inquiry, said
that normally the President might
have designated the Federal Re-
serve Board chairman as the fifth
member but did not do so because
OF current dispute between the
board and the Treasury on the in
tereSt rate issue.
Other provisions in the Presi-
dents plan were:
A $17,500 a year salary for the
administrator and $4,000 for the
deputy administrator, instead OF
$12,500 now paid the RFC board
chairman and $4,000 for each OF
the other four directors.
Appointment of those officials
by the President, subject to Sen
ate confirmation.
All applications for loans OF
other financial assistance totaling
more than 100000 to any bor-
rover would be referred to a board
of review. Such a board would
have at least five members named
by the administrator from among
RFC officials having major re-
sponsibilities assigned to them y
The administrator would not have