Evening star., 1951-09-23
RFC Loan Talks Are Defended by GobrieIson
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Hydrocol, Inc, of which I am
president and general counsel"
Mr.. Gabrielson said that all the
RFC loans to Hydrocol were
granted before he became chair
man of the Republican National
Committee.
Says No Pressure Was Used.
Neither influence nor pressure
were used in obtaining the loans"
said Mr.. Gabrielson. '"The COM
pensation I have received was
solely for legitimate services as
legal counsel and president. In no
manner, directly or indirectly,
have I received a fee or any other
compensation for securing the
RFC loan. have no financial in
terest in the company. I am proud
to be it's president and to par
Iticipate in the development of a
new industry with tremendous
Ipotentials to our national defense
and the utilization of a natural
resource.
Mr.. Gabrielson said that the
attack now is shifted to insinuate
that because he is the unpaid
chairman of the Republican Ma
tional Committee, "it is improper
for me to carry out my duties as
president of a huge new industry,
for which I am paid salary of
$4,000 a year and a retainer of
$4,000 a year to my law firm
both approved by the RFC.
Had I desired to shirk my re-
sponsibilitieS to stockholders who
have now invested nearly $29
million in this company. and to
the taxpayers whose government
loaned an additional $18,500,0 900
which must be repaid before the
stockholders start getting their
money back, it would have been
easy to do so. I could have fol-
lowed the all-too-cuStomary prac-
tice of retaining a former admin
istration official or a friend or law
partner of an administration oftl-
cial, to represent Carthage Hydro
col in discussions with the COM
pany's banker-the RFC. The tes-
timony before your subcommittee
indicates this might have been to
the company's advantage.
Didn't Desire Influence.
! But I am proud to say that
neither my stockholders or myself
desired influence or advantage"
| Mr.. Gabrielson said it was his
duty to do everything within his
power to preserve the security of
jthe RFC loan in conducting the
affairs of the company, and that
he had been the company's presi-
dent for five years with an inti-
mate knowledge of its problems.
/ "Of course I have discussed the
affairs of the company with RFC
officials since becoming Republican
chairman, continued Mr.. Gabriel
son. He pointed out that the RFC
properly maintains continuing
check on the activities of the COM
panieS it helps to finance. He said
that total of 80 resolutions and
letters of amendment involving
Carthage Hydrocol have been
issued since the loans were
granted. 10 of them since he be-
came Republican chairman. He
said that he had discussed with
Harvey Gunderson. then an RFC
board member. the progress of
construction OF the Carthage
Hydrocol plant and the details of
financing, as the president of the
company.
Called on Symington Twice.
II have called on Mr.. w. Stuart
Symington twice since he became
RFC administrator, " said Mr..
lGabrlelS0n, My purpose was 10
request him to order a thorough
check of all RFC files relating to
Carthage Hydrocol. I asked if he
found anything improper. to say
so publicly, and if he did not, to
also say so publicly. I still hope
that he will do so. and if he does
not. I hope that your subcommit-
tee will ask him to do so ...
"On one of these calls a dis
Icussion of additional funds to be
supplied by stockholders. I told
him that the executive committee
of Carthage Hydrocol might apply
for a one-year postponement in
the start of repayments on the
principal of the RFC loans. In
terest payments have been met
and will be met when due"