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••••••••••••••••••••••••••••
RECONSTRUCTION FIN ANC E
CORPORATION
(IN LIQU IDAT ION)

OF C,'\LIFORNLJ
l!NIVERS:TY
t0c: r,,.,,.,.. --.,

FEB 17 1~55
U~tt,-.K 'i

CO'..tf.

r,ues.

ROfl' l

REPORT TO Tl-IE CONGRESS

JUNE 30, 195_.

••••••••••••••••••••••••••••

LIQUIDATION OF RFC LOANS, SECURITIES AND
COMMITMENTS
September 28, 1953 through June 30, 1954
Number

Business loans and securities:
Loans sold outright __________________ _
69
Securities of business enterprises sold __
2
Lo~ns _sold subject to deferred parti77
c1pat1on ---------------------------Loans prepaid through refinancing six
months or more before maturity ___ _
217
Loans prepaid in full by borrowers six
months or more before maturity ___ _
273
Loans transferred to loan pool _______ _ 2,848
Loans paid in full according to agreed
terms and reductions by normal re222
payments --------------------------Cancellation of commitments _________ _
41
Reductions through foreclosure proceed111
ings, etc. --------------------------Total reduction in business loans,
securities and commitments ____ _

Amount

(In thousands)

3,860

Less: RFC retained interest in loan
pool --------------------------------

$ 9,346

25,292
19,197
17,441
3,781
73,243
50,274t
9,516
3,610t
211,700
26,200

Net reduction in business loans,
securities and commitments ____ _ 3,860

185,500

Other securities sold and retired:
Financial institutions __________________

23

Railroads ----------------------------Public agencies _______________________

3
127

Reduction in other securities ______

153

122,100

Total Reduction __________________

4,013

$307,600

15,200t
73,300t
33,600t

t Includes

amounts representing partial retirements, etc. Corresponding figures in the ''Number" column refer only to
loans and securities fully retired.

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TABLE OF CONTENTS
Page
Summary of Liquidation of RFC Loans, Securities and
Commitments __________________________________ Inside Cover
Letter of Transmittal __ .____________________________________

2

RFC Liquidation Act ---------------------------------------

5

Reorganization Plan No. 2 of 1954 --------------------------Policies in Liquidation of RFC Assets ________________________

6
6

Progress in Liquidation of RFC Assets:
Summary Statement-----------------------------------Business Loans and Securities --------------------------Securities of Railroads---------------------------------Public Agency Securities -------------------------------Financial Institutions ----------------------------------Summary of Securities Sold or Retired __________________

8
10
15
17
18
18

Acquired Collateral ------------------------------------- 18
RFC Loans and Securities Transferred to Other Government
Agencies ----------------------------------------------- 20
Organization and Personnel --------------------------------- 20
Financial Condition ---------------------------------------- 22
Financial Statements:
Balance Sheet _________________________________________ 24-25
Statement of Net Income from Lending Activities________ 27
Liquidation of Assets of Terminated World War II Programs__ 28
Production Programs --------------------------------------- 29
Statement of Accountability to U. S. Treasury ________________ 31
List of Borrowers with Actual or Potential Liability of
$100,000 or More---------------------------------------- 32
RFC Background _____________________________ Inside Back Cover

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Letter of transmittal:

To: The President
The President of the Senate
The Speaker of the House of Representatives
I have the honor to submit herewith a report on the liquidation of the
Reconstruction Finance Corporation. Submission of this report, as required by the RFC Liquidation Act, completes my duties as Administrator of the Corporation. The duty of completing the liquidation of RFC
and winding up its affairs was assumed by the Secretary of the Treasury
on July 1, 1954, as provided by the RFC Act.
This report also includes the Corporation's financial statements for the
fiscal year ended June 30, 1954, submission of which is required under
the provisions of the RFC Act.

The RFC Liquidation Act provided for the transfer from RFC of the
Government's programs for the production of synthetic rubber, tin and
abaca fiber. By Executive Order 10539, the President transferred the
synthetic rubber and tin programs to the Federal Facilities 1\dtrtinisera c..«r• \:c...
-eiefts and the abaca fiber program to the General Services Administration,
all effective at close of business on June 30, 1954. Separate reports
will be submitted on the operations of these programs by RFC for the
fiscal year ended June 30, 1954, in accordance with the provisions of the
respective statutes under which these production programs have been
continued.
The lending programs formerly conducted by RFC under the provisions of the Federal Civil Defense Act of 19 50 and the Defense
Production Act of 1950, were transferred to the Secretary of the Treasury
effective September 28, 1953, in compliance with the provisions of the
RFC Liquidation Act.
Under the provisions of Reorganization Plan No. 2 of 1954, certain
assets were transferred from RFC to the Export-Import Bank of Washington, the Federal National Mortgage Association_, and the Small Business Administration. ·Each of the agencies to· which RFC assets were

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transferred had similar assets acquired under continuing programs. Thus,
the Reorganization Plan facilitated the orderly and expeditious liquidation of RFC's affairs.
The RFC Liquidation Act terminated the Corporation's lending
authority effective September 28, 1953. On that date, the Government's
investment in RFC loans, securities and commitments amounted to
$769,500,000. This included assets amounting to $178,100,000 which
were to be transferred under the provisions of Reorganization Plan No. 2
of 1954. As a result of aggressive liquidation policies, the amount of the
Government's investment in the remaining RFC loans, securities and
commitments had been reduced from $591,400,000 to $283,800,000 by
June 30, 1954.
The liquidation of RFC is being carried out expeditiously under the
general policy of securing the highest possible return on the Government's investment.
Respectfully submitted,

~

.. ,., ... ~-· ~-~
Laurence B. Robbins
Administrator

September 15, 1954

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REPORT TO Tl-IE CONGRESS
June 30, 1954

Enactment of the Reconstruction Finance Corporation Liquidation Act (Public Law 163-83rd Congress, approved July 30,
1953) instituted the final phase in the history of this Government agency. A brief summary of RFC's functions and
activities since its organization on February 2, 1932, will be
found inside the back cover of this report.
The RFC Liquidation .A.ct
The principal provisions of the RFC Liquidation Act, as
amended, were that:
1. The authority of RFC to make new loans be terminated
effective September 28, 1953;
2. The liquidation of RFC assets and the winding up of its
affairs be carried out as expeditiously as possible;
3. The lending program conducted under Section 409 of
the Federal Civil Defense Act of 1950 be transferred
to the Secretary of the Treasury effective September
28, 1953;
4. The lending program conducted under Title III of the
Defense Production Act of 1950, as amended, be transferred by the President effective September 28, 1953.
(This was transferred to the Secretary of the Treasury
by Executive Order 10489) ;
5. The programs for the production of synthetic rubber,
tin and abaca fiber be transferred from RFC to agencies
named by the President, not later than the close of business June 30, 1954. (In Executive Order 10539, the
President named the Federal Facilities Corporation, organized under the Secretary of the Treasury, to receive
the synthetic rubber and tin programs, and General
Services Administration to receive the abaca fiber program).

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Reorganization Plan Mo. 2 of 1954

In order to facilitate the orderly and rapid liquidation of
RFC, Reorganization Plan No. 2 of 1954 was adopted effective
at the close of June 30, 1954. Under this plan, the functions
of liquidating certain assets held by RFC were placed under
the jurisdiction of agencies responsible for similar continuing
programs.
The transfers effected under the Plan were as follows:
1. To the Export-lmport Bank of Washington:

The

functions relating to:
(a) the loan made by RFC to the Republic of the
the Philippines under Section 3 of the Joint
Resolution of August 7, 1946;
(b) the loans made by RFC to the Government of
Ecuador and the Newfoundland Railway of
St. Johns, Newfoundland;
(c) the capital stock of the Banco de Borracha
(now known as the Amazon Credit Bank,
Belem, Brazil) ;
(d) all foreign bonds and securities acquired by
RFC in the liquidation of its lending programs.
· 2. To the Small Business Administration: The functions relating to loans made by RFC to victims of
floods or other catastrophes.
3. To the Federal National Mortgage Association: The
functions relating to mortgages held by RFC which
were made or acquired under the authority of the
RFC Mortgage Company or the Defense Homes
Corporation.
Policies Followed in Liquidation of RFC Assets

In the liquidation of RFC the primary objective is to recover
all funds invested in the Corporation's assets as rapidly as possible and with maximum protection to the Government and
the taxpayers. This policy may be defined more specifically as
it relates to the following three general categories of RFC assets in liquidation:
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1. Loans: These assets are loans evidenced by borrowers'

notes secured by liens on real or personal property.
Practically all of the remaining loans were made to borrowers engaged in business pursuits. The policy is to
sell these loans to private interests at full face value or
to arrange for private refinancing, always with the consent and cooperation of the borrower.
2. Securities: These assets consist of the capital stock or
bonds of corporate entities. For the most part, the securities held by RFC were issued by railroads, financial
institutions and political subdivisions of states and territories. There were, however, a few instances in which
RFC acquired the securities of corporations engaged in
activities normally classed as business enterprises. Wherever organized markets exist for the securities held by
RFC, it is the policy to dispose of such holdings on the
basis of the market price providing (1) that the market
price bears a reasonable relationship to the value of the
security and, (2) that the discount involved, if any, is
reasonable in relation to the cost of the Government
funds invested and the speculative risk of holding the
issue to maturity.
In cases where there is no organized market for these
securities, the determination of a justifiable selling price
for any issue is based upon a balancing of factors, including on the one hand the Congressional mandate to liquidate expeditiously together with the desirability of
prompt return of funds to the Treasury, and on the other
hand, the current and potential yield from the security
in relation to the costs of administration and interest on
Government funds invested.
3. Acquired Collateral: These assets consist of real and personal property, notes and accounts receivable and other
assets acquired by the Corporation under foreclosure and
other proceedings in the liquidation of loan indebtedness.
As these assets become available for sale, they are disposed of to private interests. The method of disposal is
influenced by the location, nature, size and condition of
the assets, and selling expense in relation to the value of
the property. Generally, acquired collateral is sold by
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advertised sale, either at auction or through submission
of sealed bids. The general policy in the sale of collateral
is to sell each acquired property promptly with the maximum dollar return to the Government.

PROGRESS IN LIQUIDATION OF RFC

..usm

With the termination of the Corporation's authority to make
new loans on September 28, 1953 an aggressive program was
inaugurated to achieve expeditious liquidation of RFC's
assets. The table below summarizes the results of the program during the period from September 28, 1953 to June 30,
1954:
.

RFC Loans, Securities and Commitments *
(In

millions of dollars)

outstan~

Sept. 28, 19

~ Amount

Business Enterprises:
RFC portfolio _____
RFC equity - pool
loans ------

4,628 $395.5

Net Reduction
1n Portfolio
No. Amount

~ Amount

3,860 $211.7

768 $183.8

(26.2)

26.2

f:n~

-4,628
- -395.5
- -3,860
- -185.5
- -768 210.0

Railroads (including
securities accepted
in reorganization at lower of cost or
appraised value) __

14

83.8

3

73.3

11

10.5

Financial institutions

35

45.5

23

15.2

12

30.3

297

66.6

127

33.6

170

33.0

Public agencies (ineluding
securities
accepted in payment of indebtedness) -------------

4,974 $591.4

4,013 $307.6

961 $283.8

• Excludes commitments in deferred parUcipaUon IOIIIIS.

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A summary analysis of the reductions effected during this
period is provided on the inside front cover of this report.
Major accomplishments were as follows: ..
1. A loan pool was organized to which were transferred

more than 2,800 business loans amounting to $73,000,000. Servicing of the loans was arranged with
banks throughout the nation. A majority interest in
the pool was purchased by banks and other private
investors. The proceeds provided an immediate return of $47,000,000 to the Government.
2. Prior to June 30, 1954, 146 business loans amounting
to more than $28,000,000 were sold to private lending
institutions at face value. The sale of 18 additional
loans amounting to $3,400,000 was authorized with
consummation anticipated shortly after June 30,
1954.
3. Largely through negotiations with banks and borrowers, 217 loans amounting to more than $17,000,000
were retired six months or more in advance of maturity through refinancing arrangements with private sources of credit.
4. Through vigorous loan administration, 273 loans
amounting to $3,700,000 were paid in full six months
or more in advance of their maturity dates.
5. More than $144,000,000 was returned to the Government through the sale and retirement of security
issues.
Concomitant with the reductions made in RFC's holdings of
loans and securities, there have been reductions in the cost of
administration. All regional offices have been closed. The
nation-wide organization formerly maintained by the Corporation has been reorganized into a small compact staff geared
to effective liquidation, centralized in Washington.
In the ensuing pages of this report there will be found a detailed discussion of the progress made in liquidating each
category of loans and securities held by RFC on September
28, 1953.
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Business Loans and Securities

The most complex task confronting the Corporation was the
liquidation of its business loan portfolio. On September 28,
1953 there were 4,628 business loans and commitments outstanding which totalled $395,500,000. Not only was the heaviest investment found in this class of assets, but the major
portion of the Corporation's administrative costs was incurred
in servicing this large number of loans scattered throughout
the nation. The loans varied in size from a few with outstanding bal~nces of less than $100 to one loan of $48,400,000. Fewer
than 100 of the loans had balances exceeding $500,000. In approximately 3,000 cases, the amount due RFC was less than
$25,000.
Disposal of Smaller Business Loans Through RFC Loan Pool
Plan-In order to dispose of the smaller business loans, RFC
and a committee of bankers cooperated in the creation of the
RFC Loan Pool. Under this plan, the RFC sold to banks and
private investors Certificates of Interest, each representing an
undivided share of the loans in the pool. The certificates,
bearing interest at the rate of 3½% per annum, were purchased by nearly 1,000 banks and private investors.
As of February 28, 1954, 2,848 loans were selected for the
pool. All but two of these had outstanding balances under
$500,000. The aggregate amount of the unpaid balances was
$73,243,000. The sale of Certificates of Interest resulted in the
immediate return to the Government of $47,165,000.
The servicing of the loans in the pool has been taken over
by banks located in or near the borrowers' communities. This
has relieved the Corporation of the largest part of its administrative task and has made it possible to close the RFC regional offices and conduct the remaining liquidation activities
from Washington.
One of the objectives in placing the pool loans in the hands
of local bankers for servicing was to re-establish a close relationship between RFC borrowers and private banks. It was
anticipated that this step would result in the early refinancing
of most of the loans placed in the pool. The validity of these
expectations has been borne out by the fact that 441 of the
pool loans had been repaid in full by June 30, 1954, most of
which were refinanced by banks.
Repayments on pool loans totalled $14,000,000 during the
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four months period from February 28 to June 30, 1954. Principal repayments are applied each month to reduce the outstanding amount of the Certificates of Interest.
Special mention should be made of the cooperation and
assistance generously given by the banks of the country in
setting up the pool, in subscribing to the Certificates of Interest, and in taking over the servicing of the pool loans. Without this assistance, the Corporation's organization and administrative costs could not have been substantially reduced nor
could the liquidation program have made nearly as much
progress.
Disposal of Larger Business Loans by Negotlatlons--The disposal of the larger business loans presented problems different
from those faced in the disposal of smaller loans. The size of
the outstanding balances and the varying provisions of the
loan agreements made it necessary that the disposal of these
loans be undertaken through individual negotiations.
Continuing efforts have been made since the beginning of
RFC's liquidation either to sell the larger business loans to
private financial institutions or to secure private refinancing
for them. Both borrowers and bankers have cooperated in
these efforts and, through June 30, 1954, negotiations have
resulted in the sale or prepayment through refinancing of
363 business loans, with a return to the Government of nearly
$46,000,000. In no instance was the sale or refinancing of a
loan made on a basis to which the borrower objected. In
every case the Corporation received face value.
There were 69 instances where banks made outright· purchases of RFC loans, and 77 cases where loans were sold on a
deferred participation basis. Loans totalling 217 were retired
six months or more in advance of maturity through other refinancing arrangements.
Sale of Securities of BusiDess Enterprise&-On September
28, 1953, there remained two instances in which RFC held
the securities of business enterprises. In both of these cases-Reynolds Metals Company and Steep Rock Iron Mines, Ltd.the securities held by RFC were sold in the market.
The securities of Reynolds Metals Company were sold in
January, 1954. At that time the Corporation held Reynolds
serial 4% mortgage bonds with a par value of $20,991,600 due
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annually to 1967. After exhaustive efforts to develop investor
interest in order to obtain the best possible price, the issue
was sold to private interests for $20,357,187, representing a
price of 95 and accrued interest of $415,167.
The securities of the Steep Rock Iron Mines, (a Canadian
corporation) having a par value of $4,300,000, were sold to
private interests in February, 1954, at par plus accrued interest.
Other Loan RetlremenJa-RFC borrowers have aided materially in the efforts to liquidate the Corporation's business loan
portfolio by retiring their loans in advance of maturity. There
were 273 loans for $3,781,000 which were retired six months or
more in advance of maturity during the nine month period
ended June 30, 1954. Also, there were approximately 250 loans
on which final payment was made or commitments cancelled
during this period. These repayments and cancellations, together with funds received in partial and installment repayments, have accounted for a further reduction of $60,000,000
in the Corporation's business loans and commitments. Of this
amount, $28,000,000 represented repayments made on the indebtedness of Kaiser Motors Corporation.
Deferred Participations ln Bank L~Throughout the period in which RFC was engaged in lending to business enterprises, a substantial portion of all loans authorized was under
deferred participation arrangements. A participation agreement, executed by RFC and the bank actually disbursing a
loan, provides that RFC will purchase, upon demand by the
lending bank, an agreed percentage of the unpaid balance of
the loan. It has been the experience of the Corporation that
demand for RFC to purchase its participation is made in only
a small percentage of the cases.
On September 28, 1953, there were outstanding 1,676 deferred participation agreements representing a potential liability to the RFC of $26,400,000. By June 30, 1954, the number
and amount of the outstanding deferred participation agreements had been cut in half, with 860 agreements outstanding
representing a potential liability of $12,200,000. In effecting
this reduction, the RFC was called upon to purchase its agreed
percentage in only 15 instances.
It is not expected that the Corporation will be requested to
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purchase its percentage in more than a small number of the
remaining cases.
Remalnlng Portfolio of RFC Business Loan&-On June 30,
1954, there remained in RFC's business loan portfolio 768 loans
amounting to $184,000,000. Of this total, $145,000,000 (79%)
was made up of loans to 17 borrowers, each of whom had loans
outstanding of $1,000,000 or more. The loans of three of the
borrowers accounted for $102,000,000 (55%) of the total.
These three borrowers were: Lone Star Steel Company$48,400,000 (in addition to a Defense Production loan of
$37,000,000); Detroit Steel Corporation- $35,766,000; and
Carthage Hydrocol, Inc.-$17,748,000.
Arrangements have now been consummated whereby the
indebtedness of Carthage Hydrocol will be liquidated. The
Stanolind Oil and Gas Company has acquired all the stock of
the company and has agreed to assume the obligation to RFC.
With respect to Lone Star Steel Company and Detroit Steel
Corporation, several investment houses have expressed interest, and there is every reason to believe that with some
improvement in general conditions in the steel industry, both
loans can be refinanced.
Of the remaining 14 loans with balances of $1,000,000 or
over, there were seven loans considered as problem cases
which will require continued servicing by RFC. In the other
cases, the loans are considered good and it is expected that
within a reasonable period of time, arrangements can be made
to dispose of most, if not all, of them by sale or refinancing.
More than ninety-five percent of the number of business
loans in the portfolio on June 30, 1954 had individual unpaid
balances of less than $500,000. The major problem of
liquidating the remaining portfolio lies in the administration
and servicing of this residue of smaller business loans.
As in the case of the larger loans, energetic efforts are being
made to sell these loans to private :financial institutions.
Where such sales can not be consummated, arrangements are
made if possible to secure servicing of the loans by local
banks, thus relieving RFC of continued overhead and other
administrative costs in servicing loans widely scattered
geographically. By June 30, 1954, approximately 175 of these
loans had been placed with local banks for servicing. In the
course of time, it is expected that most of the loans so placed
will be refinanced by the servicing banks.
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Approximately 60% of this portfolio of smaller loans are
delinquent or present other servicing problems which complicate the program of liquidation. In some cases, foreclosure proceedings have been instituted and in many other
cases, foreclosure appears to be an eventuality.
A list of all borrowers having RFC loans with unpaid
balances of $100,000 or more on June 30, 1954, is included at
the end of this report.
The liquidation of RFC's business loans and commitments
discussed in the preceding pages is shown on the chart below.
BUSINESS LOAMS AMD COMMITMENTS *
MILLION
OOl.U.RS

450

_ _ _ ~ UNO[ R $500,000

40 0
-

$500,000- $1 ,000,000

~ t1,ooo,ooo • t 10,ooo,ooo

m

OVER $ 10 ,000,000

300

200

100

SEPTEMBER 28, 1953

JUNE 30, 1953

•ucwors

~ UNO(lt HCTlON

soz, DI'&

JUNE 30, 195 4

ANO COMlfrTIIENTS FOIi OUUUlt[O l'AlltTIC1,aTtONI.

Business Loans Made Under Section 302-Defense Production Act - Under the provisions of the RFC Liquidatio:m
Act and Executive Order 10489, the function of making loans
under Section 302 of the Defense Production Act was transferred to the Secretary of the T!easury. This transfer was
effected as of the close of business on September 28, 1953, at
which time there were 200 loans and commitments outstanding in the amount of $266,662,000.
The RFC, acting for the Secretary of the Treasury,
administered these functions until June 30, 1954, under the
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direction of the Administrator, who was appointed Special
Assistant to the Secretary of the Treasury for this purpose.
Efforts to dispose of these loans were made in the same
way as in the case of loans authorized under the RFC Act.
During the nine month period ended June 30, 1954, 22 of these
loans, amounting to $16,900,000 were sold to private interests.
Further reductions in the portfolio were accounted for by
partial and final repayments.
On June 30, 1954, the portfolio of defense loans consisted of
125 loans and commitments outstanding totalling $234,893,000.
Loans and commitments to three borrowers make up most of
the total. These are: San Manuel Copper Corporation$94,000,000; White Pine Copper Corporation-$62,808,000; and
Lone Star Steel Company-$37,000,000. The last named loan
was made in conjunction with the loan of $48,400,000
authorized under the RFC Act.
Securities of Railroads

On September 28, 1953, the RFC held the notes and
securities of eight railroad companies amounting to $83,784,000.
Included in that total was $6,600,000 represented by securities
accepted in reorganizations of companies indebted to RFC.
By June 30, 1954, this portfolio had been reduced to $10,461,000
and included the notes and securities of five railroad companies.
The efforts which have been made to dispose of the railroad
obligations held by RFC have included attempts at public
sale, negotiations with the railroads and private investment
institutions, and direct sales in organized markets. During
the nine months ended June 30, 1954, these efforts were
successful in the following instances:
and Ohio Railroad Company: The 4%
collateral trust bonds of this company, due January 1,
1965, amounted to $64,585,000 when they were sold by
RFC in June, 1954. Since the RFC held the entire issue
of these bonds there was no organized market in which
they could be sold. In March, 1954, they were offered to
the public at a sealed bid sale, but only one bid, which
was at a price of 85½, was received for the entire block.
This was rejected as being unrealistic in relation to
the value of the securities. Discussions were continued

1. Baltimore

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with the railroad company and investment groups, and
after a thorough exploration of all possibilities a competitive proposal from one of the investment houses was
accepted, providing for a purchase of $4,585,000 of the
bonds at par plus accrued interest by the railroad
company and purchase of the remaining $60,000,000
at 95 plus accrued interest by the investment house for
resale at a small commission to investing institutions.
This sale produced a very satisfactory average price of
approximately 95%.
2. Erie Railroad Company: During the reorganization of
the Erie Railroad, the RFC acquired $10,571,000 principal
amount in 4½% income mortgage bonds, Series A, due
January 1, 2015. These bonds were carried on the Corporation's books at $5,948,960. In October and November
of 1953, the Corporation sold them to private investors
and received $7,716,830, which was slightly above the
quoted market price on the days of sale.
3. Bangor and Aroostook Railroad Company: The RFC held
4% collateral trust bonds of this company, due July 1,
1961, with a par value of $1,675,000. After an effort had
been made to dispose of these holdings at a public sale,
negotiations resulted in the sale of a refunding issue by
the company. The proceeds from the sale of the refunding issue were used to retire RFC's holdings at par plus
accrued interest.
4. Central of Georgia Railroad Company: During the reorganization of this railroad, the RFC acquired various
securities which were carried on the books of the Corporation at $52,033. The bonds acquired have been sold
for $64,670. The Corporation still holds 711 shares of
the preferred stock of this company with a par value of
$100 a share.
The railroad obligations remaining for liquidation on
June 30, 1954 were as follows:
Par or

Stated Value
(RFC Investment)

Meridian and Bigbee Railroad Company ______ _ $1,332,626
Georgia & Florida Railroad ___________________ _ 1,610,957
New York, Ontario & Western Railroad _______ _ 2,248,000
Tennessee Central Railway Company _________ _ 6,007,960
71,100
Central of Georgia----------------------------

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Public Agency Securities

On September 28, 1953, the Corporation held, or was committed to purchase, a total of $66,550,000 in 297 issues of the
obligations of political subdivisions of states and territories.
One of the means undertaken to dispose of RFC's public
agency security holdings was by advertised sale. Sealed bids
were invited for 171 lots amounting to $9,284,000. This
offering was advertised in :financial newspapers of nationwide
circulation, and was circularized to more than 1,900 municipal
bond dealers, insurance companies, and other potential purchasers. The bids were opened on November 17, 1953, and
were disappointing. Out of 98 lots for '.Which bids were
received, offers for only 39 lots, having a par value of
$1,600,700, were acceptable. The bids accepted amounted to
$1,492,982 plus accrued interest.
Since then a sustained effort has been made to dispose of
the remaining securities by negotiated sale. Revised lists of
all public agency securities held by RFC have been widely
circularized to investment dealers and other interested parties.
The effectiveness of this sales program is demonstrated by the
fact that on June 30, 1954, the outstanding securities and commitments had been reduced to 170 issues with an aggregate
principal amount of $32,960,000. The negotiated sales have
resulted in prices greatly in excess of the bids submitted at
the advertised public sale.
The largest issue of public agency securities sold was
$28,885,000 of 4% bonds issued by the City of Cleveland, Ohio,
Transit Authority. Sale of this issue was made as the result
of intensive negotiations over an extended period of time
and finally competitive bidding. The interest rate of 4% on
these bonds is below the rate carried by other large transit
bond issues. For this reason, it was anticipated that the
Cleveland Transit bonds would have to be marketed at a
discount. The bonds were sold for $28,426,795, representing
a price of 97.6359 and accrued interest of $224,662, which exceeded earlier expectations.
Almost two-thirds of the total of $32,960,000 outstanding at
June 30, 1954, is made up of one issue of $20,791,000 for the
construction of a hydro-electric project in Pend Oreille
County in the State of Washington. It is expected that this
project will be completed early in 1955 and that the bonds
can be sold to advantage either before or soon after that time.
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The 170 issues held on June 30, 1954, are the residue from a
total of more than 6,200 issues, aggregating over $1,300,000,000.
Those remaining are generally of less marketable quality
than the issues which have been sold; in fact, 30 of the issues
are in default. Efforts to liquidate the balance of the
securities are being continued with the int.ention of obtaining
the maximum possible return on the Government's investment.
Financial Institutions

The securities of financial institutions held by RFC consisted
mainly of preferred stock and debentures. On September 28,
1953, these holdings amounted to $45,500,000 and included the
issues of 35 institutions, of which all but two were banks.
Where the banks have been unable to retire these securities
out of their earnings, the Corporation has endeavored to assist
them in working out other plans, through obtaining new
capital or otherwise, to enable them to pay their obligations
to the Government.
Since September 1953, these efforts have resulted in the
retirement of 23 issues amounting to more than $15,000,000.
On June 30, 1954, the RFC held the preferred stock or
debentures of 10 banks and trust companies. All of the
institutions whose securities are held are presently in operation. The amount of the securities held on June 30, 1954, was
$30,341,000. Almost 90% of this amount was represented by
the securities of three banks.
Summary of Securities Sold or Retired

A net reduction of more than $147,000,000 was effected in
the Corporation's holdings of all types of securities during
the nine month period ended June 30, 1954. The chart on the
opposite page reflects the progress made in disposing of the
various types of securities held.
.Acquired Collateral

As the result of foreclosure proceedings, or other actions
taken in the liquidation of the affairs of those indebted to the
Corporation, the RFC continually acquires various items of
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r eal and personal property. These items cannot be sold until
expiration of the period during which the former owners may
redeem them.
During the fiscal year ended June 30, 1954, the Corporation
acquired collateral in the settlement of 80 loans. The
appraised value of this collateral was $3,304,000. Sales and
other dispositions were made during the year in 114 cases
involving property appraised at $3,450,000.
The acquired collateral held by RFC on June 30, 1954, was
appraised at $2,452,000 and represented 98 cases of loan
liquidation. Of these, 47 cases with property appraised at
$1,071,000 were available for sale. The remainder includes
properties presently under lease and those for which the redemption period has not expired.
In addition to the properties acquired, the Corporation holds
$4,000,000 in notes and accounts receivable arising from the
liquidation of loans and sales of acquired property.
In disposing of its acquired collateral, the Corporation endeavors to act promptly and to secure the highest possible
return to the Government.
SECURITIES HELD BY RFC
MILL ION
OOlLA RS

200 . - - - - - - - - - - - - - - - - - - - - - - - - - - - - ,
$221,134,000

$221,285,000

JUNE 30, 1953

SEPTEMBER 28, 1953

JUNE 30, 1954

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RFC Loans and Securities Transferred to Other Govemment
Agencies Under Reorganization Plan No. 2 of 1954

The following table shows the loans, securities and commitments which have been transferred to other Government
agencies. For the most part, these assets were of such nature
that their disposal to private interests either was precluded
or could better be accomplished by merging them with the
portfolios of similar assets held by the agencies to which they
were transferred. The reductions shown in these holdings
between September 28, 1953, and June 30, 1954, are attributable
primarily to repayments received.
RFC Loans, Mortgages and Commitments Tran~ferred
to Other Govemment Agencies
(In mlllions of dollars)

OUtstandinj
Sept. 28, 19
No. Amount

Disaster loans (Small
Business Administration) __________

outstanding
June 30, 1954
No. Amount

Net Reduction
in Portfolio
No. Amount

3,605

$ 18.3

366

$ 3.1

3,239

$ 15.2

Direct, insured and
partially guaranteed
mortgages (Federal
National Mortgage
Association) ------ 15,594

69.5

556

5.2

15,038

64.3

:purchase money mortgages (Federal
National Mortgage
Association) ------

4

42.3

0.8

4

41.5

Republic of the Philippines (ExportImport Bank of
Washington)

1

48.0

6.0

1

42.0

19,204 $178.1

922

== =

$15.1

=

18,282 $163.0

=

=

Organization and Personnel

Administration of large numbers of loans and other assets
scattered throughout the nation requires an extensive organization. If the liquidation of RFC's assets had been
approached under a policy of holding all loans and securities
to maturity, a large administrative organization would have
been required over a period of many years. However, the
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success of the program of placing RFC's assets in the hands
of private financial institutions has made it possible to achieve
very substantial savings in overhead and administrative costs.
The establishment of the RFC Loan Pool has been particularly
important in reducing administrative costs. Under this plan,
the servicing of the hundreds of small loans included in the
pool has been moved from RFC personnel to banks located
in or near the borrowers' communities.
Shortly before passage of the RFC Liquidation Act, the
Corporation was operating through a field organization of
eight regional loan agencies and 26 branch offices. Immediately after the passage of the act, all of the branch offices
were closed except one in Alaska and one in Puerto Rico.
Throughout the balance of fiscal year 1954, the liquidation
activities were carried on from the two field branches, the
eight regional offices, and the central office in Washington.
Effective J uly 1, 1954, all of the regional offices were closed
and the remaining activities centralized in the Washington
Office. The present reduced organization will steadily be
contracted further, and will be kept to the minimum necessary
NUMBER OF RFC EMPLOYEES
AND AN NUAL RATE OF ADMINISTRATIVE EXPENSES
Employees

2,&00.--------------,
ltUMI Ut

Expenses

MILL ION
OOI.L AIIS

20

2/)00

1,000

~00

o ......._......__

0

JANUARY I,

J ULY I,

JANUARY I,

J ULY I,

JAN UARY I,

JANUARY I,

JULY I,

JANUARY 1,

JULY I,

1953

1953

195~

1954

1955

1953

19 53

1954

1954

JANUARY I,

1955
JEstlmoted)

( Eatlmoted )

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to accomplish the liquidation of RFC's remaining assets in
the most efficient and economical manner possible.
The savings in administrative costs resulting from the
actions taken with respect to the Corporation's organization
are outlined in the chart on page 21.
Financial Condition

On pages 24 to 27, inclusive, appear statements showing the
financial condition of the Reconstruction Finance Corporation
as of June 30, 1954, the income and expenses of the Corporation for the fiscal year ended June 30, 1954, and an analysis
of the Corporation's accumulated net income.
The RFC Act, as amended, requires that the Corporation
pay over to the Secretary of the Treasury, as miscellaneous
receipts, all amounts by which the Corporation's accumulated
net income exceeds $250,000,000 and reasonable reserves for
uncollectibility of outstanding loans and investments. Under
these provisions, the amount to be paid into the Treasury in
fiscal year 1955 will be $34,288,000.
During fiscal year 1954, the Corporation paid into the
Treasury $180,000,000 representing proceeds of the production
and wartime liquidation programs, and $1,200,000 representing
proceeds of the liquidation of the Smaller War Plants Corporation.
It is expected that all amounts borrowed by RFC from the
Treasury will have been repaid prior to September 30, 1954,
and that no future borrowings will be required.

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FINANCIAL STATEMENTS

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RECONSTRUCTION

Flt1NANCE CORPORATION

BALANCE J SHEET
June JO. t, 1954

------------.AIHh------------

-----------Liabilities-----------

Remaining for Llquldallon-J11De 30. 1954
Loam. HCUritiH and nla!ed ncei•ah!N:
Business loans ---------------------- $181,310,131
Equity in business loan pool
{Loans--$59,124,338)-Note B ____________ _
26,199,788
9,866,917
Railroads
--------------------------------Financial institutions _____________________ _
30,341,089
24,296,891
Public agencies ---------------------------272,014,816
Accrued interest and dividends ___________ _
3,626,063
694,875
Other related receivables -----------------276,335,754
38,300,000 $238,035,754
Reserve for losses ----------------------------

Other auets:
Assets acquired in liquidation of loans and
securities-at lower of cost or appraised
values ----------------------------------Securities accepted in reorganization of railroads--at lower of cost or appraised values
Miscellaneous accounts and notes receivables
Furniture and fixtures, less reserve for depreciation
-------------------

6,319,636
604,816
248,378
255,694

Caab --------------------------------

Total remaining for liquidation ________ _

'1,428,524
163,766,046
$409,230,324

LlabllltiN under lencllng progrum:
473,398
Accounts payable ------------------------- $
Trust and deposit accounts _______________ _
1,295,331 $ 1,768,729

lleaen•s
For employees' accrued annual leave _______ _
For losses under deferred participation in
bank loans------------------------------

1,288,896

Equity of U. S. Gonmmenh
Notes payable to U. S. Treasury, including
accrued interest ------------------------Dividends payable ------------------------Funds held for contingencies in liquidation
of terminated wartime programs _________ _
Capital stock -----------------------------

6,'163,932
34,288,019

Surplus:
Unreserved ----------------------------Reserved for contingencies ______________ _
Total remaining for liquidation _______ _

325,091

1,613,98'1

13,795,65'1
100,000,000

250,000,000
1,000,000

405,847,608
$409,230,324

Transfers to Other Government AgenclN-June 30. 1954
Loam. mortgages IIDcl other auets:
Loan to Republic of the Philippines
(Export-Import Bank of Washington) _____ _
Disaster loans and related receivables, less
reserve for losses (Small Business Administration) -------------------------------Direct, insured and guaranteed mortgages, and
related receivables (Federal National Mortgage Association) ------------------Equity in net assets of Defense Homes
Corporation (Federal National Mortgage
Association) ----------------------------Furniture and fixtures, less reserve for
depreciation ----------------------------Cub-Production programs -----------------Total transfers -----------------------Total --------------------

LiabllltiN under transferred programs:
42,000,000

Accounts payable -------------------------Trust and deposit accounts-Note C _______ _

13,669,836

Reserve for employees' accrued annual leave __

29,394
3015,1541

158,012

64,'111,167
Equity of U.S. Go"Nrnment:
27,307,358
22,919

147,711,280
33,100,000
180,811,280
$590,041,604

Notes payable to U. S. Treasury ___________ _
Funds transferred for operations of production
programs --------------------------Total transfers -----------------------TotaL __________________ _

14'1,318,333
33,100,000

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180,418,333
180,811,280
$590,041,604

See Notes to Balance Sheet on Page 26

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25

NOTES TO BALANCE SHEET:
NOTE A-Assets shown on the balance sheet represent those pertaining
to the Corporation's lending activities, segregated as to (1)
those remaining for liquidation at June 30, 1954; and (2) those
transferred to other Government agencies at the close of business June 30, 1954, pursuant to the RFC Liquidation Act as
implemented by Executive Order and Reorganization Plan
No. 2 of 1954. The unliquidated assets relating to the production programs and terminated World War II programs are
shown in statement on page 31.

Non: B-RFC's equity ($26,199,788) in the business loan pool is subject
to the terms of an "RFC Loan Pool Agreement" which provides
that principal collections shall be applied first to reduction
in Certificates of Interest to the extent that the aggregate unpaid amount thereof exceeds 50% of the total unpaid principal
of current pool loans after which such collections shall be distributed equally to the RFC and certificate holders. RFC's
interest in the current pool loans shall not be reduced to less
than $15,000,000 until payment in full of the unpaid amount of,
and interest on, all Certificates of Interest.

NoTE C-ln addition to the liabilities reflected by the balance sheet, the
Corporation is responsible for funds collected from mortgagors
for the payment of taxes, insurance, etc., by servicing institutions. At June 30, 1954, such funds amounted to $1,393,498, all
of which was on deposit with commercial banks covered by
F .D.I.C. insurance.

NOTED-The balance sheet amounts do not include commitments undisbursed at June 30, 1954, as follows: for direct and immediate
participation loans to industrial and commercial enterprises$2,544,208; for deferred participations in bank loans$12,189,815; for loans sold subject to deferred participation$15,949,837; for loans to political subdivisions of states and territories-$8,607,400; and for disaster loans transferred to Small
Business Administration at the close of business June 30, 1954$501,831.

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Reconstruction Finance Corporation

STATEMENT OF NET INCOME FROM LENDING .ACTIVITIES
Fiscal Year Ended June 30, 1954
INCOME:

Interest and dividends earned on loans,
securities, etc.:
Business enterprises _________________ _ $12,996,460
3,007,673
Railroads institutions
--------------------------Financial
________________ _
1,073,780
Political subdivisions of states and ter1,197,511
ritories ---------------------------Other loans, mortgages and receivables
4,317,624 $22,593,048
Income from properties and securities
acquired in liquidation of loan indebtedness, including _______________________
securities of reorganized_
railroads-net
Income from equity in net assets of
Defense Homes Corporation _________ _
Commitment fees ____________________ _
Fees on loan participation agreements __
Premiums and other income ___________ _

2,249,708
700,208
68,797
256,613
417,307

3,692,633
26,285,681

INTEREST ARD OTHER EXPENSES:
Interest on:
Funds borrowed from U. S. Treasury __
Funds held for U. S. Treasury _______ _
Administrative expenses _______________ _
Service fees on mortgages -------------Guarantee fees and other expenses _____ _
Fees and expenses of liquidation of loans,
etc. --------------------------------Net income before provisions for losses
PROVISIONS FOR LOSSES _____________ _
Net income

2,767,700
1,077,608
5,506,504
326,364
14,261
137,334

9,829,771
16,455,910
869,282

------------------

$15,586,628

ANALYSIS OF ACCUMULATED NET INCOME
Unreserved

Reserved for
Contingencies

Accumulated net income-June 30, 1953 __ $601,272,470 $24,200,000
Income for Fiscal Year 1954, as above ____ 15,586,628
Adjustments applicable to prior fiscal years
279,358
Reserved for contingencies ______________ 23,200,000 (23,200,000)
640,338,456
1,000,000
Less: Dividends paid or payable to U. S.
Treasury ------------------------- 390,338,456
Balance-June 30, 1954 __________________ $250,000,000 $ 1,000,000

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LIQUIDATION OF .ASSETS OF nRMINATED WORLD WAR II
PROGRAMS
The Corporation is continuing the liquidation of assets
acquired under terminated World War II programs. The
assets remaining for liquidation are the residue from the
extensive programs undertaken by the Corporation's World
War II subsidiaries.
The assets held for liquidation on June 30, 1954, were
carried on the Corporation's books at $24,600,000. This includes $1,700,000 transferred to the Export-Import Bank of
Washington under Reorganization Plan No. 2 of 1954.
The character of the remaining assets is shown in the table
below:
Carry1n1 Value
(In mtWom of dollan)

June 30,

Ram•Jnlng for liquldailon
111153
Note of Kaiser Motors Corporation _____ Property, plant and equipment:
Under lease ____________________ $2.8

Held for disposal by G.S.A. -----------Conditional sales contracts _____________
Land grant freight claims ______________
Other receivables ________________

June 30,
1954

$12.3

1.9
0.1

1.5
5.0
1.5
3.9

4.3
2.2
2.1

Transferred to Export-Import Bok
Capital stock, Amazon Credit Bank ______ 1.2
Loan to Newfoundland Railway Company 0.6
Advance to Government of Ecuador ______ 0.1

1.2
0.4
0.1

The above note of Kaiser Motors Corporation was previously held by ·the General Services Administration and was
acquired by RFC in the transaction which resulted in the
payment by Kaiser Motors of $28,000,000 on its indebtedness
to RFC.
During fiscal year 1954, the Corporation collected $2,600,000
on land grant freight claims. The development of additional
land grant freight claims is being continued, with the
expectation that all claims will have been developed and
filed before the close of fiscal year 1955.
Llquidallon of Smaller War Plants Corporation -By
Executive Order 9665, the assets of the Smaller War Plants
Corporation were transferred to RFC for collection or disposal. On June 30, 1954, the unliquidated assets of this
program amounted to $1,600,000. This includes ten loans, with
unpaid balances of $1.1 million, four properties valued at
$94,350, and notes, contracts, deficiency judgments, and other
receivables appraised at $287,800.
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In addition, there remain two outstanding loans made by
banks in which the Government has a deferred commitment
to purchase- a portion of the unpaid balance. The contingent
liability on these loans amounted to $13,829 on June 30, 1954.
The assets of the Smaller War Plants Corporation have been
reduced to a point where the remaining assets are not
marketable. Further liquidation of these assets is being continued on a work-out basis.

PRODUCTION PROGRAMS
The RFC has had responsibility for three production programs involving commodities essential to national defense and
the civilian economy. These programs are synthetic rubber,
tin and abaca fiber.
The RFC Liquidation Act provided for the transfer of the
production programs from RFC to agencies to be named by
the President. By Executive Order 10539, the President transferred, effective at close of business on June 30, 1954, the synthetic rubber and tin programs to the Federal Facilities Corporation, and the abaca fiber program to the General Services
Administration. Complete, separate reports on the operations
of these programs by RFC for flscal year 1954 will be submitted to the Congress as required by the provisions of the
respective statutes under which these production programs
have been continued. Highlights of the operation of these
programs are reviewed below:
Synthetic Rubber: During fiscal year 1954, operation of
the Government's plants was continued at the level required to fill industry's requirements for synthetic rubber.
At the same time the Corporation cooperated in every way
with the Rubber Producing Facilities Disposal Commission in the program to dispose of the plants to private
industry.
Production of synthetic rubber in fiscal year 1954
totalled 591,000 long tons. The cost of producing this
quantity of synthetic rubber was $230,000,000. Sales of
synthetic rubber to industry during the year amounted
to 558,000. long tons, for which $277,900,000 was received.
The operations of the synthetic rubber program during
fiscal year 1954 produced a net income of $41,800,000, after
allowing for administrative expenses, depreciation, and
interest on Government funds invested in the program.

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Tin: Deliveries of tin to the national stockpile were
completed during fiscal year 1954, and world tin supplies
were adequate for current consumption requirements.
Plans were made, therefore, to discontinue production of
tin at the Texas City, Texas, smelter by June 30, 1954.
However pending a review of the nation's tin situation,
the Congress in July, 1954, adopted S. Con. Res. 79
which called for continuation of the program in fiscal
year 1955.
During fiscal year 1954, 32,507 long tons of tin metal
were produced at the smelter. The cost of this production
was $77,659,576. In addition, under commitments made
with foreign tin producing countries, the Corporation
purchased 13,828 long tons of tin metal at a cost of
$35,567,229.
All of the tin metal produced and purchased was sold
at net operating cost to the General Services Administration for stockpiling purposes.
Abaca Fiber: Under the provisions of the Abaca Production Act of 1950, the Corporation has carried on the
production of abaca fiber on plantations located in Costa
Rica, Guatemala, Honduras and Panama. The Act
provides for continuation of the program until March 31,
1960, unless earlier termination is directed by the
President or the Congress. Under the terms of a
Presidential directive, the area under cultivation of abaca
was limited to a total of 20,100 acres.
During fiscal year 1954, a total of 25,185,850 pounds of
abaca fiber was produced on the Government's Central
American plantations. The cost of this production was
$5,998,261.
The national stockpile requirements for abaca fiber have
been filled, except for rotation requirements. Therefore,
the fiber produced on the Government's plantations has
been offered for sale to industrial users. Market conditions
in fiscal year 1954 were such that sales of only 14,016,636
pounds for $2,466,378 were accomplished. This resulted
in a net loss of $2,577,231.
At the end of June 1954, the unsold inventories of fiber
held in the program amounted to 14,339,900 pounds. The
cost of producing the fiber in this inventory was $3,470,482.

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Reconstruction Finance Corporation

STATEMENT OF ACCOUNTABILITY TO U.S. TREASURY
June 30, 1954
Total
Accountabfllty

ASSETS HELD (Bi depreciated or appraised values):
Cash working funds held by agents or in transit _____ $ 1,489,176
Loans and accrued interest ________________________ 56,156,008
2,002,217
Accounts receivable from U. S. Government agencies_
Accounts receivable-other _________________________ 26,219,538
Inventories ---------------------------------------- 91,336,331
Property, plant and equipment ______________________ 161,125,810
Other assets -------------------------------------471,378
Deferred charges ---------------------------------2,450,027

1,969,574
17,709,308
91,336,331
159,156,320

$

2,052
14,008,546
32,643
8,510,192

Smaller
War Plants
Corporation

$ 568,597

Defense
Homes
Corporation

$41,578,865

38

1,969,490
89,192

382,186

2,450,027
274,108,684

24,612,115

950,821

41,578,865

21,197,172
27,307,358

20,658,503

419,711

82,685

36,273
27,307,358

Total liabilities -------------------------------

48,504,530

20,658,503

419,711

82,685

27,343,631

Net investment exclusive of funds held ________________
Cash funds held by RFC for program requirements ____

292,745,955
46,895,657

253,450,181
33,100,000

24,192,404
13,373,127

868,136
422,530

14,235,234

Total accountability June 30, 1954 ______________ 339,641,612
Less: Net investment transferred to other governmental
organizations as of the close of business June 30,
1954 ------------------------------------------- 302,421,850

286,550,181

37,565,531

1,290,666

14,235,234

286,550,181

1,636,435

Net assets remaining for liquidation by RFC __________ $ 37,219,762

-

$ 1,487,124

Terminated
World War II
Programs

Liabilities ------------------------------------------Equity of RFC in net assets of DHC __________________

Total assets held ------------------------------- 341,250,485

w

Production
Programs

$35,929,096

14,235,234
$1,290,666

NOTE:
Legal actions 1n which the Corporation ls a party defendant and other clalms against the Corporation relating to llquldation of national
defense, war and reconversion activities involve contingent llabfll ties estimated at $12,000,000.

Reconstruction Finance Corporation
BORROWERS WITH ACTUAL OR POTENTIAL LIABILITY
OF $100,000 OR MORE AT JUNE 30, 1954
BUSINESS LO.ANS
RFC

RFC PORTFOLIO

Amount

Alabama
Alabama Grain Elevator Company, Mobile __ $ 1,272,000
Munro-Van Helms Company, Talladega______
136,000
Arizona
Copper Cities Mining Company, Miami _____ _

7,500,000

California
California Art Tile Corporation, Richmond __
Case Swayne Company, Inc., Santa Ana _____ _
Ensher, Alexander & Barsoom, Inc.,
Sacramento -----------------------------Hickmott Canning Company, Antioch ______ _
Langley Corporation, San Diego ___________ _
Oriental Foods, Incorporated, Los Angeles ___ _
Oxnard Canners, Inc., Monterey ___________ _
Pacific Grape Products Company, Modesto __
Roach, Hal Studios, Inc., Culver City _______ _
Wells All Steel Products, North Hollywood __

801,115
110,000
529,058
160,560
199,220
236,157
1,079,283
117,098

Colorado
National Alfalfa Dehydrating & Milling Company, Lamar----------------------------Rock Wool Insulating Company, Pueblo ___ _

278,250
153,665

Connecticut
Horle Arms Company, Deep River _________ _
New Haven Clock & Watch Company, New
Haven ----------------------------------Delaware
Price, W.W., Company, Inc., Smyrna _______ _
District of Columbia
Dunbar House, Inc., Washington ___________ _
Mayfair Extension, Inc., Washington _______ _
Windsor Company, Washington ____________ _
Florida
Hendry Corporation, Rattlesnake ___________ _
(Participation Purchased-Gross $114,996)
Laris Painting, Inc., Green Cove Springs ____ _
Ruffe, Inc., Miami -------------------------

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178,850
114,100

153,000
1,206,745
162,614
648,772
288,743
891,811
68,997
206,052
117,529

RFC Portfolio (continued)
RFC

Florida (continued.)

Amount

Steel Products, Inc., Dania __________________ $
Weissinger, E. L., Lumber Company, Inc.,
Jacksonville ------------------------------

299,344
146,081

Idaho

Shore Club Lodge, Inc., Boise ______________ _

109,050

Illinois

Calumet Heat Treating Corporation, Chicago
Dormeyer Industries, Chicago ______________ _
Galesburg Soy Products Company, Galesburg
Martin, H. S., & Company, Evanston _______ _
Mosow Screw Company, Waukegan _________ _
Richter Spring Corporation, Chicago _______ _
Scholle Chemical Corporation, Chicago _____ _
South Water Building Corporation, Rockford __
South Water Machinery Corporation, Rockford

108,869
127,750
404,000
500,000
332,000
123,200
101,915
658,781
1,999,063

Indiana

Gary Paper Mills, Inc., Gary _______________ _
Stadler Packing Company, Inc., Columbus ___ _
Vincennes Packing Corporation, Vincennes __

426,000
318,442
205,613

Iowa

Chandler Machine Products Company, Cedar
Rapids ----------------------------------Davenport Besler Corporation, Davenport ___ _
Postville Packing Company, Postville _______ _

128,000
595,741
118,400

Kentucky

Green River Steel Corporation, Owensboro __
Harvest Furniture Manufacturers, Louisville __

3,556,126
103,396

Maine

Portland Copper & Tank Works, Portland ___ _

133,333

Maryland

Quality Meat & Provision Company, Baltimore
Massachusetts
Borden, R., Mills Corporation, Fall River ___ _

Hayward Woolen Company, Whittinsville ___ _
River Mills Corporation, Fall River ________ _
Waltham Watch Company, Waltham _______ _

100,771
716,955
739,367
188,476
1,248,921

Michigan

Camfield Manufacturing Company, Grand
----------------------------------HavenSteel
Detroit
Corporation, Detroit __________ _

213,278
35,766,000
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RFC Portfolio (continued)
RFC

Amount
Michigan (continued.)
Douglas Tool Company, Detroit ____________ $ 188,686
Hammond Standish & Company, Detroit ___ _
226,543
Kaiser Motors Corporation, Willow Run ____ _ 5,057,894

Mlsalssippl
Dismuke Tire & Rubber Company, Clarksdale
Missouri
American Fixture & Manufacturing Company,
St. Louis --------------------------------Montana
H. S. Engine Company, Billings ______________

146,250

1,341,489
105,205

Nebraska
Wilson, C. C., Inc., Omaha _________________ _

117,306

Nevada
Copper Canyon Mining Company, Battle
Mountain -------------------------------Mapes Hotel Corporation, Reno ____________ _

117,105
578,587

New Hampshire
Faulkner & Colony Manufacturing Company,
260,180
Keene-----------------------------------New Jersey
National Tool & Manufacturing Company,
157,514
Kenilworth ------------------------------Pantasote Company, Passaic _______________ _
494,953
Seaboard Refractories Company, Perth Amboy
187,650
New York
Carthage Hydrocol, Inc., New York _________ _ 17,748,595
Deep Water Terminals, Inc., Brooklyn ______ _
653,500
Hercules Food Service Equipment, Inc.,
165,355
Brooklyn --------------------------------Kamen Soap Products Company, Inc., New
188,604
York ------------------------------------Meseck Towing & Transportation Company,
121,972
New York-------------------------------Meyerstein, Anthony M., Inc., Brooklyn _____ _
173,853
Quigley Company, New York _______________ _
130,831
Schenectady Railway Company, Schenectady__
70,055
(Participation Purchased-Gross $116,758)
Segal Lock & Hardware Company, Inc., New
York ------------------------------------- 1,439,324
Soya Corporation of America, New York ___ _
126,121
Utica Structural Steel, Inc., Utica ___________ _
166,472
Vollmer Transportation, Inc., Amsterdam ___ _
116,258

34
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RFC Portfolio (continued)
RFC

Amount

North Dakota
Newtown Water Sewage Utilities, Newtown __ $

141,666

Ohio
Concrete Masonry Corporation, Elyria ______ _
Dubuque Stamping & Manufacturing Company,
Toledo-----------------------------------Firth Machine & Tool, Inc., Fostoria _________ _
Fischer Industries, Inc., Cincinnati _________ _
Green Ball Bearing Company, Cleveland ___ _
Tyson Bearing Corporation, Massillon _____ _
Yeager Company, Akron ___________________ _

153,846
104,444
134,975
104,888
590,554
772,539

Oklahoma
Community Hotel Company, Norman _______ _
Lawton Community Hotel, Inc., Lawton _____ _

285,000
600,000

Oregon
Oregon Fibre Products, Inc., Pilot Rock ___ _
Snellstrom Lumber Company, Eugene _____ _

3,100,000
450,000

Pennsylvania
International Felt Corporation, Philadelphia__
Whitehouse Paper Company, Philadelphia ___ _

220,438
200,000

Tennessee
Rose, D. M., & Company, Knoxville _________ _

122,744

123,903

Texas
Graham Hoeme Plow Co., Inc., Amarillo ___ _
366,840
Jay Bee Manufacturing Company, Tyler _____ _
127,202
254,151
Limestone Products Company, Inc., Cleburne
Lone Star Steel Company, Dallas ___________ _ 48,440,485
Page, Holland, Austin ______________________ _
150,309
Texas City Refining Company, Texas City ___ _ 3,192,066
Texas Frozen Foods Corporation, Harlingen __
623,355
Texas Consolidated Oils, Dallas _____________ _ 8,539,672
Virginia
Colonnas Shipyard, Inc., Norfolk ___________ _
81,600
(Immediate Participation-Gross $108,800)
Nebel, 0., Hosiery Corporation, Verona _____ _
114,215
Stuart Gardens Corporation, Newport News __
189,472
Virginia Lincoln Corporation, Marion _______ _
365,413
Washington
Arlington Lumber & Plywood Company,
128,414
Arlington--------------------------------Bellingham Canning Company, Bellingham __
143,500
Bolinger Orchards, Methow ________________ _
51,545
(Participation Purchased-Gross $114,545)
35
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RFC Portfolio (continued)
RFC
Amount

Washington (continued)

Columbia Packing Company, Snohomish ____ $
(See Deferred Participations in Bank Loans
and Disaster Loans)
Evans Lumber & Box Company, Inc., Seattle__
Resinweld Plywood, Inc., Tacoma __________ _
Seidelhuber Steel Rolling Mills, Inc., Seattle__

17,264
458,037
126,750
760,000

Weat Vlrglnla

Kelly Foundry & Machine Company, Elkins __
West Virginia Steel & Manufacturing Company, Huntington ________________________ _

138,000
2,803,287

Alaska

Alaska Plywood Company, Juneau _________ _
Matanuska Valley Lines, Inc., Anchorage ___ _
Usibelli Coal Mine, Inc., Healy Forks _______ _

488,833
121,600
485,000

Puerto Rico

Santurce Building Company, Inc., Santurce __

289,868

Virgin Islands

Morningstar Hotels, Inc., St. Thomas _______ _
Virgin Isle Hotel, Inc., St. Thomas _________ _

122,945
292,000

LOANS INCLUDED IN RFC LOAN POOL
Unpaid Loan
Balance

Alabama

Belcher Olon Lumber Company, Brent ______ $
Kleins Dairy Products, Cullman ___________ _
McCullough Industries, Inc., Birmingham ___ _

177,344
144,490
227,000

Arkansas

Alma Canning Company, Alma _____________ _
American Radio & Television Company, North
Little Rock -----------------------------Arkansas Printing & Lithographing Company,
Little Rock ------------------------------Dillard Properties Company, Inc., Texarkana __
Farmers Soybean Corporation, Blytheville __
Jack Tar of Arkansas, Inc., Hot Springs_____ _
McCoy Couch Furniture Manufacturing Company, Benton---------------------------Wilson Soya Corporation, Wilson __________ _

147,103
143,787
138,248
117,224
128,649
460,000
145,981
260,000

California

Associated Iron & Metal Company, Oakland __
Crenshaw Hospital, Los Angeles ___________ _
Franco Italian Packing Company, Terminal
Island ------------------------------------

36
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199,960
144,000
103,076

Loam lnclucled in RFC Loaa Pool (continuecl)

California (continued)
un:B:1i!ii:m
Hi Shear Rivet Tool Company, Los Angeles __ $ 206,467
Macy & Company, Red Bluff ________________
138,257
Minder, J. W., Chain & Gear Company, Los
178,993
Angeles ---------------------------------Sylmar Packing Corporation, Los Angeles __
148,142
United Centrifugal Pumps, Oakland _______ _
161,645
West Coast Packing Company, Long Beach __
273,500
Colorado
Arvada Packing Company, Arvada _________ _
Landers Packing Company, Denver _______ _
Pepper Packing Company, Denver _________ _

112,289
334,217
227,624

Florida
Florida Foods, Inc., Belle Glade ___________ _
Smith, I. H., Company, Jacksonville ________ _
Tampa Marine Company, Inc., Tampa _____ _

141,250
271,974
150,000

Georgia
Metal Arts · Manufacturing Company, Inc.,
AtlantaIndustries,
---------------------------------Stevens
Inc., Dawson ___________ _

102,000
196,829

Illinois
Anderson, A. F., Iron Works, Chicago _______ _
Roberts & Oake, Inc., Chicago _____________ _

119,853
236,932

Indiana
Heinold Elevator Company, Kouts _________ _
Hoosier Crown Corporation, Crawfordsville __

106,667
111,528

Iowa
Sioux Industries, Inc., Sioux City ___________ _

222,000

Kentucky
Modern Welding Company, Inc., Owensboro __
Owensboro Sewer Pipe Company, Owensboro
Russell Fork Coal Company, Inc., Elk Horn
City-------------------------------------Massachusetts
Dehydrating Process Company, Boston _____ _
Eastern Container Corporation, Springfield __
Harvey Whipple, Inc., Springfield ___________ _
Hayward-Schuster Wool Mills, Inc., Douglas
Monument Mills, Inc., Housatonic __________ _
Phaneuf Hospital, Inc., Brockton ___________ _
Point Judith Dehydrating Process Company,
Boston -----------------------------------

253,125
173,335
365,000
100,000
225,346
147,671
196,856
453,000
176,340
142,000
37

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Loam Included In RFC Loan Pool (continued)

Michigan

Lippmans Tool Shop, Company, Detroit ______ $
Marine Steel & Welding Company, River
Rouge-----------------------------------McCarthy, F. J., Inc., Cadillac _____________ _
Michigan Abrasive Company, Detroit _______ _
Stainless Ware Company of America, Walled
Lake -------------------------------------

105,900
127,165
118,412
142,470
238,469

Misaiaslppl

Dixie Pine Products Company, Hattiesburg __
Fernwood Industries, Fernwood ___________ _

284,473
261,294

New Jersey

Hamersley Manufacturing Company, Garfield
Oliver Manufacturing Supply Company,
Rahway ---------------------------------Theobald Industries, Kearny _______________ _
Woburn Chemical Corporation, Kearny _____ _

104,000
181,947
191,481
191,820

New York

Bush, Clinton G., Company, Huntington
Station ----------------------------------General Textile Mills, Inc., New York _____ _
Gioia Macaroni Company, Inc., Buffalo _____ _
Jamestown Sterling Corporation, Jamestown
Mason, Au & Magenheimer, Inc., Mineola ___ _
McLaughlin Millard Company, Inc., Dolgeville
Staten Island Rolladium, New Dorp _________ _

228,000
109,228
114,500
211,246
374,356
141,215
123,598

North Carolina

Jacks Cookie Company, Charlotte ___________ _
Kalmia Dairy, Inc., Hendersonville _________ _
Ramseur Furniture Company, Ramseur ____ _
Runnymede Mills, Inc., Tarboro ___________ _

112,450
168,999
150,600
122,904

North Dakota

Union Hospital Corporation, Mayville _______ _

123,517

Ohio

Braun Brothers Packing Company, Troy ____ _
Davey Compressor Company, Kent _________ _
Imperial Glass Corporation, Bellaire _______ _
Lockwood, L.B., Company, Cleveland _____ _
Martin Brothers Box Company, Toledo _____ _

618,646
185,537
251,744
163,696
156,739

Oklahoma

Stilwell Canning Company, Stilwell _______ _
38
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122,500

Loam ID.c:lwlec:I in RFC Loan Pool (continued)

Oregon

Lamb Weston, Inc., Weston------------------ $
Union Fisherman's Co-operative Packing Company, Astoria ---------------------------Webster, Roy, Orchards, Hood River _______ _

136,445
165,475
110,225

PeDDSYlvanla

Dodge Cork Company, Inc., Lancaster _____ _
Mcinnes Steel Company, Corry ___________ _
Reichard Coulston, Inc., Bethlehem ________ _
York Shipley, Inc., York ___________________ _

103,085
118,652
364,948
224,896

Tennesaee

Gordons, Inc., Johnson City _______________ _
(See Deferred Participation in Bank Loans)
McAllester Hosiery Mill, Inc., Chattanooga __
Polston Flooring Manufacturing Corporation,
Lafayette --------------------------------

45,819
265,747
127,461

Texas

Borger Hotel Corporation, Borger _________ _
Civic Hotel Corporation, Odessa ___________ _
Elsa Canning Company, Inc., Elsa ___________ _
(See Deferred Participation in Bank Loans)
Henningsen Lamesa, Inc., Lamesa __________ _
Patio Foods, Inc., San Antonio _____________ _
Port Fuel Company, Inc., Brownsville _____ _
Raymondville Compress & Warehouse Company, Dallas -----------------------------Smyth, R., Grain Company, Aledo _________ _
Southern Maid Bakeries, Inc., Waco _______ _
Southwest Fertilizer & Chemicals Company,
El Paso----------------------------------

271,608
460,000
27,625
106,139
106,000
113,401
107,288
112,352
139,282
217,833

Virgin.la

Draper, V. M., Manufacturing Company, Inc.,
Martinsville ------------------------------

135,580

Washington

Columbia Veneer Company, Kalama _______ _

146,000

Weat Virginia

Demuth Glass Works, Inc., Parkersburg ___ _

128,650

Wlaconsln

Menominee Sugar Company, Green Bay ___ _

128,000

39
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Loam Included in RFC Loan Pool (continued)
Unpaid Loan
Balance

Alaska

North Star Enterprises, Anchorage __________ $
Westward Corporation, Anchorage _________ _

124,398
220,557

Puerto Rlc:o

Central Monserrate, Inc., Manati ___________ _
Central Eureka, Inc., Hormigueros _________ _
Corporacion Azucarera Sauri & Subira, Inc.,
Ponce ------------------------------------

221,158
105,040
192,625

DEFEBRED PARTICIPATIONS IN BANE LOANS
RFC

Alabama

Amount

Haas Davis Packing Company, Inc., Mobile __ $
Huntsville Brick & Tile Co., Inc., Huntsville__
(Gross $102,382)
Southeastern Metals Company, Birmingham__

142,500
76,788
197,400

California

Hovden Food Products Corporation, Monterey
Pacific Tile & Porcelain Company, Paramount
(Gross $114,000)
Walti Schilling & Company, Santa Cruz _____ _
(Gross $100,000)

152,438
57,000
60,000

Illinois

Soldwedel, F. H., Company, Pekin _________ _
(Gross $130,686)
Turner Manufacturing Company, Chicago

90,989
175,872

Kentucky

Fulton Ice Company, Inc., Fulton _________ _
(Gross $118,750)

89,063

Maine

Plastics Materials Corporation, South Windham
(Gross $104,720)

62,832

Nebraska

Farm Fertilizers, Inc., Omaha ______________ _
New Jersey
Borden Metal Products Company, Elizabeth __
(Gross $126,265)
Russell Stanley Corporation, Woodbridge ___ _
(Gross $151,350)

108,750
63,133
75,675

40
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Defernd Partlc:lpatiom In BUik Loam (conilnued)
RFC
Amount

North Carolina
Bouligny, R., H., Inc., Charlotte ______________ $
Davis, W. A., Milling Company, High Point__
(Gross $169,535)

295,926
69,509

Ohio

Sekely Industrial Tool
Company, Salem
(Gross $110,722)

&

Manufacturing
66,433

Oregon

Pendleton Can & Frozen Foods Company,
Pendleton -------------------------------(Gross $112,500)

84,375

Pennsylvania
Hanlon & Wilson Company, Wilkinsburg ___ _
York & Foster, Inc., Union City ___________ _
(Gross $112,500)

126,349
67,500

Tennessee
Gordons, Inc., Johnson City ________________ _
(Gross $55,000-See Loans Included in RFC
Loan Pool)

41,250

Texas
Elsa Canning Company, Elsa ---------------(See Loans Included in RFC Loan Pool)

150,000

Washington

Bellingham Cold Storage Company, Bellingham ------------- ----------------------Columbia Packing Company, Snohomish ___ _
(See RFC Portfolio and Disaster Loans)
Cowlitz Dairymen's Association, Kelso _____ _
Jordan Baking Company, Tacoma __________ _
(Gross $103,389)
Pacific Waxed Paper Company, Seattle _____ _
(Gross $161,091)
Upland Winery, Sunnyside _________________ _
(Gross $117,272)

152,037
22,328
109,192
51,694
96,655
87,954

Wl■c:onaln

Simplex Machine Tool Corporation, Milwaukee

165,369
41

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LOA.NS SOLD SUBJECT TO DEFERRED PARTICIPATION
RFC

Amount

Arkansas

Owosso Manufacturing Company, Benton ___ $

315,761

California

Miller Dial & Name Plate Company, Los
Angeles --------------------------------Pacific States Steel Corporation, Niles _____ _
Sugarman Lumber Company, Cloverdale ___ _

136,796
844,076
1,224,000

Connecticut

American Standard Products Company, Hartford--------------------------------------

153,900

District of Columbia

Marjorie Webster Junior College, Washington
Young Men's Christian Association, Washing-

124,235

ton---------------------------------------

181,480

Florida

Srf!s~~Fae~~~~-~-:_~~~-~~~~~--=~~~~!~

144,619

Georgia

Warren Company, Atlanta _________________ _

337,053

Illinois

Gateway Engineering Company, Chicago ___ _
Solo Cup Company, Chicago _______________ _

222,615
432,173

Indiana

American Tractor Corporation, Churubusco __

170,636

Kentucky

Louisville Builders Supply Company, Louisville--------------------------------------

403,733

Massachusetts
A. & P. Corrugated Box Corporation, Lowell

1,037,547

Michigan

Active Tool Manufacturing Company, Detroit
Federal Industries, Inc., Detroit ___________ _
Rudy Manufacturing Company, Dowagiac ___ _

301,198
128,745
132,603

Minnesota

Cornelius Company, Minneapolis ___________ _

158,843

Missouri

McPike, Inc., Kansas City ~----------------42
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170,698

Loam Sold Subject lo Deferred Participation (continued)
RFC

Amount

New Jersey

Essex Rubber Company, Trenton ____________ $

126,635

Ohio

Aeronca Manufacturing Corporation, Middletown------------------------------------Butcher & Hart Manufacturing Company,
Toledo ----------------------------------Gussett Boiler & Welding, Inc., Canton _____ _

116,550
186,923
193,442

Oregon

Roseburg Lumber Company, Roseburg _____ _

502,400

Pennsylvania

France Packing Company, Philadelphia ____ _

279,365

Texas

Alford Refrigerated Warehouses, Dallas ___ _
West Texas Warehouse Company, Lubbock __

2,511,000
127,229

Washington

Everett Plywood & Door Corporation, Everett
Mount Baker Plywood, Inc., Bellingham ___ _
Wakefields Deep Sea Trawlers, Seattle _____ _

267,503
131,581
139,500

WiscoDBln

Fall River Canning Company, Fall River ___ _

242,280

RAILROADS
Georgia

Georgia & Florida Railroad Company, Augusta

1,610,957

Mississippi

Meridian & Bigbee Railroad Company,
Meridian ---------------------------------

1,332,626

New York

New York, Ontario & Western Railway Company, New York _________________________

2,248,000

Tennesaee

Tennessee Central Railway Company, Nashville--------------------------------------

6,007,960
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PUBLIC AGENCIES

RFC

Amount

Alabama

Cherokee, Town of, Cherokee --------------- $
Columbiana, Town of, Columbiana _________ _

135,125
235,000

ArkllllSU

Danville, City of, Danville ------------------

109,400

Colorado

Yampa Reservoir Irrigation District, Yampa __
(Par Value $117,000)

93,600

Florida

Santa Rosa Island Authority, Escambia _____ _

1,172,000

Illinois

Chicago Board of Education, Chicago _______ _
(Par Value $183,529)
Robbins Village of Cook County, Robbins __

27,529
1,135,000

Kentucky

Middlesboro, City of, Middlesboro _________ _

198,000

Michigan

Community Hospital Association, Battle Creek

116,400

Ml880url

Excelsior Springs, City of, Excelsior Springs __

186,760

Montana

Billings Bench Water Association, BiUings __
Cartersville Irrigation District, Cartersville __
Cove Irrigation Company, Billings _________ _

167,600
125,000
108,000

Nebraska

North Loup River Public Power & Irrigation
District, Ord ------------------------------

176,400

New York

Jewish Memorial Hospital, New York _____ _

174,600

North Carolina

Kure Beach, Town of, Kure Beach _________ _

260,000

South Carolina

Maryville and Bay View Water District,
Georgetown ------------------------------

150,000

T8DD.88see

Tracy City, Town of, Tracy City ___________ _

195,000

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Public .AgandN (c:olliiDued)
RFC

Amount

Texu
Alvord, City of, Alvord --------------------- $
Ellis County Levee lmprovernnt District No. 3,

200,000

144,100
Ferris -----------------------------------Galveston,
City of, Galveston ______________ _ 1,100,000
Howe, City of, Howe ______________________ _
100,000
Kaufman County Levee Improvement District
No. 4, Crandall --------------------------163,000
Red Bluff Water Power Control District, Pecos 1,181,050
Stonewall County Water Control District,
312,000
Aspermont ------------------------------Wuhington
Public Utility District No. 1, Pend Oreille
County ----------------------------------- 20,791,000
FINANCIAL INSTITUTIONS

New Jersey
Commonwealth Trust Company, Union City __ 2,223,746
Trust Company of New Jersey, Jersey City __ 14,077,314
West Hudson National Bank, Harrison _____ _
901,000
New York
First Bank & Trust Company, Utica ________ _ 9,183,800
Vermont

Orleans Trust Company, Newport _________ _
Valley Savings Bank & Trust Company, North
Troy ------------------------------------Vermont Savings Bank, Brattleboro ________ _

228,000
112,500
3,500,000

DISASTER
California

First Congregational Church, Bakersfield ____ _
First Christian Church, Bakersfield _________ _
St. Paul Episcopal Church, Bakersfield _____ _

105,000
150,000
100,000

Florida

South Dade Farms, Inc., Homestead _______ _

345,000

ICllDSU

Kansas Service Grocers, Kansas City _______ _
Kansas City Market Company, Inc., Kansas
City ------------------------------------Kelly, J. R., Cooperage Company, Kansas City
Midwest Cold Storage & Ice Corp., Kansas City

137,356
125,000
100,750
376,531
45

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Diauter (continued)
RFC

Amount

Mluourl

Central Realty, Inc., Kansas City ____________ $
Farm Belt Fertilizer and Chemical Co., Kansas
City-------------------------------------Inter State Oil Company, Kansas City ____ _
National Manufacturing Company, Kansas City
Western Mercantile Company, Kansas City __

308,468
104,000
236,875
147,500
158,387

Pennsylvania

Jeannette Glass Company, Jeannette _______ _

132,966

Washington

Columbia Packing Company, Snohomish ____ _
(See RFC Portfolio and Deferred Participations in Bank Loans)

64,543

SMALLER WAR PLANTS CORPORATION
Mississippi

Standard Millwork & Supply Company,
Jackson ----------------------------------

162,873

Montana

Jardine Mining Company, Jardine __________ _

558,332

New York

Pitz Foundry, Inc., Brooklyn _______________ _

115,658

Pennsylvania

McGann Manufacturing Company, Inc., York

198,190

FOREIGN LOANS
Newfoundland

Newfoundland Railway, St. Johns __________ _

427,098

Philippine Islands

Republic of the Philippines _________________ 42,000,000
PURCHASE MONEY MORTGAGES
District of Columbia

Fairmac Corporation, Washington __________ _ 34,960,588
Meridian Hill Hotel Company, Washington __ 2,191,070
Veterans Co-operative Housing Association,
Washington------------------------------- 3,760,652
Washington

Bremco, Inc., Bremerton ___________________ _

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621,324

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RFC Background
The Corporation was created by Act of Congress approved January
22, 1932, primarily for the purpose of establishing a secondary source
of credit to· aid in the stabilization of the nation's financial institutions. The Corporation was organized and began operations on February 22, 1932.
In its early years, the Corporation's major function was to provide
credit to agriculture, commerce, and industry through loans to banks
and other financial institutions, insurance companies, agricultural
agencies and railroads. The Congress later broadened the functions
of the Corporation by including authority to purchase the capital
stock of banks, insurance companies, agricultural credit corporations,
and national mortgage associations. Authority was also given to
RFC to make loans to business enterprises, mining interests, agricultural improvement districts, disaster victims and public school
authorities, and to assist in financing the construction of public works.
During the national defense and war periods, beginning in 1940,
the Congress further augmented the Corporation's functions by giving it new responsibilties in connection with the national defense
program. These functions included financing of plant conversion and
construction, providing war production facilities, acquiring critical
and strategic materials, making payments to producers under several
direct subsidy programs and administering the war damage insurance
program. These diversified responsibilities, except for defense lending, were conducted through subsidiary corporations.
By legislation approved June 30, 1947, the Corporation's lending
powers were substantially curtailed and its wartime functions were
terminated, except with respect to the programs for the production
of synthetic rubber, tin, and abaca. The lending activities thereafter
were confined to business enterprises, including railroads and air
carriers, financial institutions, political subdivisions of states and
territories, and disaster victims. These authorities remained substantially unchanged until enactment of the RFC Liquidation Act.
During the first 10 years of its existence, the RFC invested over
$3,400,000,000 in approximately 7,000 banks in order to aid in resolving the critical banking situation then existing. Through loans and
purchases of securities totalling $145,000,000, the RFC assisted in
stabilizing the finances of more than 100 insurance companies. RFC
lending included aid to the nation's railroads through loans or purchases of their securities amounting to more than $1,100,000,000.
Financing of projects undertaken by municipalities and other public
agencies was accomplished primarily by purchases of securities and
totalled approximately $1,300,000,000. More than $69 million was
disbursed by RFC to over 30 thousand disaster victims. Through its
lending subsidiaries, the RFC authorized the purchase of 500,000
home mortgages for which $2,200,000,000 was disbursed. In the field
of business lending, the Corporation approved 64,000 loans to business enterprises, including 23,000 loans made by banks in which RFC
participated on a deferred basis.
In all, during 21 years and 8 months of RFC lending, more than $12
billion was disbursed· in RFC's lending programs. On September 28,
1953, when the Corporation's lending authority ended. there remained
to be liquidated nearly $800,000,000 in outstanding loans, securities,
and commitments.

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