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The Nome Nugget
Nome, Nome County, Alaska
What is this article about?
The Fulbright Senate Banking subcommittee criticized the Reconstruction Finance Corporation's initial $34 million loan to Kaiser-Frazer Corporation, questioning its justification for public funds, but found no evidence of improper influence in securing $69 million total loans, now reduced by nearly $10 million, and expects full repayment.
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WASHINGTON, (AP) — The Fulbright subcommittee said the Reconstruction Finance Corporation should never have made an initial loan of $34,000,000 to the Kaiser-Frazer Corporation to keep it in the automobile manufacturing business.
The Senate Banking subcommittee expressed disbelief that "the interest of the general public was such as to justify the use of public funds to continue operation of Kaiser-Frazer as an automobile company."
The Senate group declared specifically, however, that it had found no evidence Kaiser-Frazer ever employed any influence peddlers or other outsiders to help it get from RFC three loans which eventually aggregated $69,000,000.
RFC records show they have been reduced by almost $10,000,000.
The subcommittee also declared it does not question that the loans will be paid in full.
The report was the fourth by the committee of four Democratic and two Republican senators on their investigation of RFC loans and lending policies.
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Domestic News Details
Primary Location
Washington
Key Persons
Outcome
loans aggregated $69,000,000, reduced by almost $10,000,000; no evidence of influence peddling; expected to be paid in full.
Event Details
The Fulbright subcommittee of the Senate Banking Committee criticized the RFC's initial $34,000,000 loan to Kaiser-Frazer to sustain its automobile manufacturing, expressing disbelief in its public justification, but found no improper influence in obtaining the loans.