Evening star., 1951-03-14
RFC
Continued From First Page.)

of the Senate subcommittee in.
vestigating influence in RFC wa.
read to the House by Representa-
tive Harris, Democrat, of Ar.
kansas. The letter stated that
Senator Fulbright hopes very
much that the Presidents plan
will be approved. The letter add
ed that RFC must be restored to
a position of public confidence
and that this could be done by
appointment of a strong, thor
oughly qualified administrator by
the President.
Meanwhile. the Fulbright SUBJ
committee today invited Repre-
sentative Hays, Democrat, of Ohio
to name at a public hearing two
Senators he accused in a House
speech yesterday of having in
f1uenced a Reconstruction Finance
Corp. loan.
There was no immediate COM
ment from Mr.. Hays Office.
Senator Fulbright told report
er the group would be glad to hear
Mr.. Hays "if he has anything he
would like to present"
Opposition Wins Support.
The drive for liquidating RFC
also got more support in the Sem
ate where subcommittee hearings
have developed evidence of inf1u
ence and favoritism touching
some RFC directors and lending
activities.
Senator Aiken, Republican. of
Vermont called for abolition of
RFC without delay" Senator
Byrd, Democrat, of Virginia said
he would introduce a bill to that
effect today.
The RFC has been brought into
such disrepuJe, Senator Byrd
said. that it has lost the con-
fdence of the American people.
1t now is so permeated with
political favorltisln that it should
be completely cleaned out. There
is an old saying that you cannot
measure a snake until it is dead
A non-political liquidation of that
agency will disclose many evil
dences of favoritism, collusion,
improper influence and perhaps
criminal practices.
! RFC Fund Request Deferred.
The President has recommended
a single administrator instead o1
the present f1ve-member board o.
directors in RFC. This would be.
come operative April 20 unless
vetoed by either branch of Con-
! greSs.
But even if the Presidents plar
won House and Senate approval
RFC still would encounter rough
shedding in House and Senate
committees.
House Appropriations Commit
tee members disclosed that they
have deferred action on the agen.
cy's request for $178 million fol
administrative expenses fl the
fiscal year beginning July /.
The committees stand. member!
said, does not necessarily NEAR
RFC will be starved out" by &
permanent ban on funds. The.
explained that the House com
mittee has decided to take nj
action on RFC funds at least unit
the outcome of the current in
quiry into RFC, and possibly no
at all.
Mr.. Hays asserted IN brie
House speech yesterday and late
in a radio interview that Repub
can National Chairman Guy Cab
rielson had done some influence
peddling" in connection witt
RFC.
Mr.. Gabrielson called the state
LIeIlG dIl ullLlA1UlSdGCo 44C oAAN
deliberate smear"
Mr.. Hays had promised to dis
close on the radio broadcast the
names of two Senators he sale
; put pressure on RFC in behalf o.
. loan applications of a firm with
which Mr.. Gabrielson was for
merly associated. But he did no
| disclose the names on the broad
cast.
Gabrielson Assails Charge.
Mr.. Cabrielson, according tt
Mr.. Hays. got 100000 from thu
Carthage Hydrocol Co. for hi
services in obtaining about $18.!
! million in loans from RFC. MI
Gabrielson was an officer of thu
company at that time. He wa
( not then chairman of the Repub
5 lican National Committee.
: Il can only conclude that thi
is an attempt to divert atten
I tion from the raScality ran1pan