Evening star., 1951-05-22
Berge Tesiifies Bank,
And Big Business
Seek 10 Wreck RFC
By Robert K. Welsh

cTdl Wenuell b6rge tOlQ SenaCOr'
today that big business and bank.
ing interests want to wreck o.
weaken the Reconstruction Fl.
nance Corp.
AS chairman of the recent.
ty-formed Small Manufacturer:
Emergency Committee. he de.
clared at a Senate Banking Com.
mittee hearing that:
Rightly or wrongly these busi.
nessmen believe that the current
drive to abolish the RFC is in
spired by longtime opponents oi
RFC, who for selfish reasons
want to see this agency eliml-
mated. They believe that there
is at least an informal alliance
between the big private banks
and investment houses and large
monopoly enterprises who are the
customers of these banks ana in
vestment houses to monopolize
the credit of the United States
and channel it into big business
operations at the expense of sma
business. That the big banks, in
vestment houses and insurance
companies are working together
to monopolize credit is not just
a neurotic dream
Prompt Action Praised.
When the Banking Committee
resumed hearings it started ear
lier this month on several bills to
revamp or abolish RFC. Senator
Fulbright, Democrat. of Arkansas
paid tribute to RFC Administrator
w. Stuart Symington for his
prompt action in discharging the
Minneapolis RFC manager. Mr.
Symington disclosed late yester-
day that he fired that official
because he apparently profited
from a transaction involving the
leasing of warehouse space to the
Commodity Credit Corp.
Senator Fulbright. who headed
q subcommittee that investigated
influence in favoritism in RFC,
said that the move by Mr.. Sy-
mington showed that reforms al
ready were under way and that
the agency should be continued.
Mr.. Berge testified that aboli-
ton or impairment of RFC would
be catastrophe in its effect on
small business.
Competition With Banks Denied.
He declared that mobilization
of the Nations economic power
depends not only on the fullest
use of large manufacturing plants
but also of small manufacturers.
This, he explained, not only tends
to preserve a free competitive en-
terprise system but also assures
maximum efficiency.
Mr.. Berge contended that RFC
does not compete with private
banking operations. The func-
tions of the agency should not be
confined to small businessmen
but that aspect should be
strengthened because ''elimina-
tion of this source of credit would
go a long way toward elimination
of small manufacturers from the
American scene" he said.
He also declared that RFC
loans, particularly to small busi-
ness, would not promote imitation,
but would increase production OF
necessary goods.
Two Departments Investigate.
The Minneapolis case today was
under investigation by both the
Justice and Agriculture Depart
ments.
Taking thunder from the Sen
ate subcommittee that questioned
deals affecting some former en-
ployes, Mr.. Symington disclosed
late yesterday that the agency dis
covered a transaction that caused
him to fire E. M. Rowlands from
the Minneapolis Office.
The Justice Department is con-
cerned with the possibility of
illegal operations involving Gov
ernment employees. Mr. Syming
ton said.
The Agriculture Department is
concerned, he said. because all
employe of that Department told
Mr.. Rowlands, in 1949, that the
Commodity Credit Corp. needed
storage space for warehousing Of
dried eggs and powdered milk,
In subsequent dealings, MI
Rowlands got $35.356 in credits
or advances from company
formed to get the warehousins
contract from CCC, Mr., Syming-
ton reported. The Agriculture De-
partment employe who gave the
original tip to Mr.. Rowlands ap
parently got a television set and
other items that were charged
to Mr.. Rowland's account, the
Administrator added.
Employees Name hnOWn.
Mr.. Symington said the Agri-
culture Department has been tolc
of the transaction, knows the EN-.
ploye's name and is making fur.
ther inquiry.
The new administrator. who
took Office less than a month ago
said he does not know whether
the action of Mr.. RoWlands wa!
Z illegal.
But I'm dead certain it wa!
improper, and Mr.. Rowlands il
out" he exclaimed. Il wouldn'
stand for that kind of thing il
private business. I don't thinl
that, when you take an oath tt
serve the Government, you should
go out and make money on tht
Government on the basis of in
formation you get. That is robbins
Peter to pay Paul, and in thi!
case both Peter and Paul were
the taxpayers.
THAT is the type of operation
that would not inspire conf1denc.
in this agency. I said recently
that RFC is going to briStle with
integrity. We've got to run thi
thing right, and we are going to-
Syv~o;uytou,S Outline of naoI