Evening star. [volume] (Washington, D.C.) 1854-1972, 1951-03-11

III Tie dark Gays OF Cne Dig
Job in the struggle back from the
financial acknowledgements
ing the purchase Of preferred stock
and loans to mortgage companies
loans have been made totaling
$101 ,843 900, in 431 cases. To pub
lie agencies. meaning agencies Of
States, counties and municipalities,
to total of $21, 1892 900 have been
made, in 300 cases.
Last September the Federal Ma
tional Mortgage Association, a
wholly owned subsidiary of the
RFC, was transferred to the Home
and Housing Administration. The
total number of mortgages the
RFC had purchased through this
subsidiary having to do with
housing facilities was 1851,
with face amount of $1,129,-
692, 900.
The RFC operates also in max
ing loans under the provisions Of
the Defense Production Act Of
1850. Under this act, there are
four delegate agencies" which
may call upon the RFC to pass
upon and make loans, from a re-
volving fund of $500 million. These
agencies are Cd the Secretary Of
the Interior, dealing with petrole-
UNI, gas. solid fuels and electric
power; 60 the Secretary of Agri-
culture, dealing with food and do
nestle distribution of farm equiR
ment and commercial fertilizer:
90 the commissioner of the In
terstate Commerce Commission,
dealing with domestic transporta-
ton, storage and port facilities,
but exclusive of air transport.
coastwise, intercoastal and over
seas shipping; a. the Secretary Of
Commerce, dealing with all mate
rails and facilities except those
identified with the other agencies.
Leased War Plants
During World War II the RFC
built and leased more than 1000
plants and other facilities to aid
in the war effort. These included
81 flying schools and $50 facilities
particularly needed. The total
coast was $7.8 billion. Among
the plants so constructed and
leased were those for the produc-
ton of synthetic rubber and
aluminium. Also the Texas Tin
Smelter, in Texas City, Tex, the
only tin smelter in the Western
Hemisphere. The smelter repre-
scented an investment of $l2.5 mil
lion.
ALI of these plants were leased
to private industry-which had
the "know-how" to operate them
effectually. The corporation built
% rubber plants and gave life to
the Nations synthetic rubber in
dustry, which has developed to
the point where the 100000 tons
of rubber used by industry per
month, more than two-thirds Is
synthetic rubber.
The rubber plants included IS
copolymer plants, producing gen.
eral purpose rubber; 10 butadiene
plants, / styrene plant, 2 butyl
rubber plants; special chemical
plant and l Akron Laboratory
and pilot plant. All of these
plants, still owned by the RFC.
are in operation or being reac-
tivated today. Synthetic rubber.
coming from these plants is con-
tinually improved, and the num-
Der of its uses are constantly on
the increase. The best inner
tubes for automobile tires today
are made from synthetic rubber.
it is said. Further, the tire cas-
ings made of synthetic rubber are
being improved greatly.
Reducing Operating Costs
At the height of it's activities
during World War II the RFC
had a peak employment of 5000.
Since the war the peak employ
ment was in July, 1946-12,299
persons. Since that time employ
ment by the RFC has been de-
creased greatly. On June 80, 1947,
it had dropped to 7,718, and by
September 30. 1850, to 1902. It
is the hope of the board that by
March Is, 1851, the agency will
have reduced it's employment roll
to 1924. This will mean q re-
duction in the payroll from ST.
ISL 900 per year, as of Septem-
Der 80, 1850, to $13.477,000 on
March Is, saving of more than
81 million. The corporation be-
lieves it will be possible, through
other savings. to reduce its ex-
penditures, on an annual basis,
by a total of IS million. In other
words, the corporation is taking
seriously the desire to cut govern
expenses to the bone.
The employees of the RFC have
been scattered over the country.
For example, as of last September,
1851 were in the field and 1,241
were employed in Washington. OF
the projected 1924 roll of en-
ployes. on March Is, 1,543 will be
in the field and 1,081 in Wash
ington.
Under the program of the new
Board of Directors. the interest
rate charged on business loans will
be per cent, instead of the 4 per
cent interest formerly in effect.
The interest rates charged by RFC
have been especially beneficial to
small businesses and individuals
Of limited means, who might have
been compelled to pay 6, 8 or even
10 per cent-if they got loans at
private lending agencies.
A new wrinkle, designed to save