Evening star., 1951-05-23
Resigned RFC Official
Faces Quiz on Charqe
OF Former Mill Owner

Frank Prince. who resigned as
assistant manager Of the Recon-
struction Finance Corp. loan of
flee, at Mobile. Ala, will be asked
to testify at a Senate subcommit-
tee hearing on a complaint by the
former owner of an Alabama pa
per mill.
Subcommittee officials an
nounced this as the full Senate
Banking Committee held it's final
day of hearings on bills to revise
or abolish RFC.
Today'S witnesses included sew
eral small bankers and others who
urged that the agency be con-
tinued.
The American Bankers Associ-
alton submitted a statement sug-
gesting that RFC be ended or at
least be retained only as a stand
by agency in event of a national
emergency.
The ABA stated that If Con-
gress decides to continue RFC it
should prevent RFC direct loans
for business purposes and pro-
vide that such loans be made only
in participation with private lend
ing institutions. It also suggested
that the total participation by
RFC in any lending should be
limited to 100000 to any one
business applicant.
Had Been Anticipated.
The subcommittee announce
ment concerning Mr.. Prince had
been anticipated even before his
resignation was disclosed earlier
this week by Mr.. Symington.
Reuben Hartman, founder and
former president of the Mobile
Paper Mill Co., asserted several
weeks ago that control of the
company was "wrested" from him
in 1949 and given to relatives of
Representative Boykin, Democrat,
of Alabama Mr.. Hartman lamed
Mr.. Prince as one of those ne said
tried to have him transfer 10 per
cent of the company stock to the
Boykin interests at the time that
the company sought an RFC loan.
Among witnesses at the Bank
ing Committee hearing today was
Angus Mcdonald, representing
James G. Patton, president of the
National Farmers Union. He read
a statement in which Mr.. Patton
declared:
THE perilous times in which
we live call for such a lending
agency as the RFC. Abolition of
RFC would hamper the defenseI
program, slow up the conversion
of plants from the production of
non-eSsential to essential goods,
make more difficult the stock-pil-
ing program, and the acquisition
of strategic materials, and inf1ict
a crushing blow on small business
from which it would never re-
cover"
RFC and the subcommittee
headed by Senator Fulbright,
Democrat, of Arkansas, have been
investigating the paper mill deal. /
Mr.. Boykin has denied any wrong
doing and asked for a public .
hearing. The subcommittee ex-
poets to hold one.
Frank T. Roman Replaces Him.
Resignation of Mr.. Prince was
announced earlier this week by
Mr.. Symington but no reason was
given. Frank T. Roman, an RFC
employe since 1882, was named to
replace him. Mr.. Roman testi-
fed several times at Fulbright
subcommittee hearings during the
last year and more recently at
the inquiry into influence affect
ing the agency. He was COM
mended for his cooperation.
1t was learned that Mr.. SYM
ington questioned Mr.. Prince who
denied improper conduct but Of
fered to resign. Officials said he
repeated his earlier public denial
that he had urged Mr.. Hartman
to turn over 40 per cent of the
company stock to members of Mr..
Boykin's family, as charged by
Mr.. Hartman.