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Show Together With Secretary McAdoo They Will Organize Or-ganize and Prepare to Make .Loans. APPOINTEES ARE PROMINENT BANKERS Corporation Will Begin the Work With $500,000,000 Capital Stock; Salaries Will Be $12,000. WASHINGTON, April 29 The first step in the organization of the $500,000,-000 $500,000,-000 government war finance corporation, the biggest institution of tho kind ever created, was taken today when President "Wilson nominated four directors, who, with Secretary McAdoo, will conduct the work of aiding in financing essential war enterprises. As soon as the directors are confirmed 1 by the senate, they will establish the corporation cor-poration on an operating basis, and indications in-dications are that it will be ready to make loans within" two or three weeks. A number of informal applications for advances already are on file. At the same time the president nominated nomi-nated seven members of the new capital issues committee, which will replace the federal reserve board's capital issues committee in exercising a Voluntary regulation reg-ulation of securities issues of more than $100,000,000. Harding Heads List. The finance corporation directors- nominated nom-inated by the president are; W. P. G. Harding, governor of the federal reserve board; Allen B. Forbes, New York private pri-vate banker and security dealer, members of the present capital issues committee's advisory subcommittee ; Eugene Meyer, Jr., New York banker and business man, member of the national war savings committee, com-mittee, and connected with the war industries in-dustries board, and Angus W. McLean, banker and lawyer of Wilmington, N. C. Members of the new capital issues committee com-mittee were named as follows: Charles S. Hamlin, member of the federal fed-eral reserve board, former assistant secretary sec-retary of the treasury; John Skelton Williams, comptroller of the currency and director of finance and purchases of the railroad administration; Frederic A. Delano, De-lano, member of the federal reserve board; Henry C. Fowler, Kansas City, banker; Frederick H. Goff, Cleveland, banker; James B. Brown, banker, of Louisville, Ky., and John S. Drum, San Francisco banker and lawyer. Warburg Not a Member. Mr. Hamlin and Mr. Delano are members mem-bers of the present capital issues committee, com-mittee, and Mr. Flower and Mr. Uoff are members of the advisory subcommittee. Paul M. Warburg, now a member of the capital issues committee, was not given a place on the new body, so that his time may be free to manage affairs of the federal reserve board, much of whose work will fall on him as vice governor, because of Governor Harding's appointment appoint-ment on the war finance corporation. All tho nominations were referred by the senate, in executive session, to the finance committee, which is expected to take action within a few clays. The organization of the big corporation, corpora-tion, with a half billion dollars' capital furnishrd by the government, and with authority to issue $3,000,000,000 bonds, is considered the most important development develop-ment in the financial history of the country coun-try since formation of the federal reserve re-serve board a few years ago. It will establish es-tablish virtually a pool" of the nation's investment resources, to be drawn upon to maintain war industries and busi-nesscsv busi-nesscsv Will Use Reserve System. The corporation will use tli federal reserve system extensively for administering adminis-tering its huge financial transactions, and through Mr. Harding there is effected an interlocking directorate between the federal fed-eral reserve board and the corporation. On the capital issues committee, Mr. Williams will represent the interests of railroads, whose securities ordinarily form a large proportion of the securities floated annually. In addition, he will represent the national banking system in his capacity as comptroller. The existing capital issues committee, since its organization three and a half ( Continued on Face Two.) DIRECTORS IMED ON FIKE BQAHD (Continued from Page One.) months ago, has developed an extensive system of examining the merits of proposed pro-posed securities issues, through the cooperation co-operation of subcommittees in each federal fed-eral reserve district, composed of bankers bank-ers and business men, acting as volunteers, volun-teers, and this machinery probably will be used by the new organization. The committee in the past three and a half months has approved new issues aggregating ag-gregating $103,000,000 approved refunding obligations, which did not involve issu-. ance of new capital, amounting to $238,-000,000, $238,-000,000, and has disapproved $44,000,000. In addition, arrangements were made informally in-formally for the postponement of more than $S, 000,000 securities, and many millions mil-lions were frowned upon by the district subcommittees and thus prevented from going on the market. |
