Salt Lake Telegram | 1932-07-14 | Page 16 | Senate Probe of Loans from R. F. C. Begins

SENATE SENA TE PROBE OF LOANS FROM FROMI H. H R F F. F I C C. C 1 BEGINS r I Investigation Will Center Around Advance to I Dawes Bank ID n By run WASHINGTON July 14 An 14 An inquiry Inquiry In Into every loan that has been made by the he Reconstruction corporation corpora corpora- corporation tion was undertaken today by a special special cial senate committee with a demand for the relief organizations organization's records High up In the committees committee's ees ee's program was the design to scan the that went to the Central Republic Bank and Trust company of Chicago of of which h Charles G. G Dawes former head of the corporation is chairman That loan has been cited in congress congress congress con con- gress as the largest to any bank some voicing suggestions of favoritism The request for a detailed report of loans was embodied in a letter from Chal Chairman Couzens of the special committee committee com to Eugene Eucene Meyer head of the board I am authorized oy by the committee 4 ask you to furnish us as quickly as possible a complete list of all aU loans the thc date of maturity the rate of interest in terest and the security pledged since the organization of the corporation Couzens wrote WONT WON'T HIRE EXPERTS He told told newspaper r men it probably would take the corporation several days to compile the information m but that the Inquiry would go ahead as speedily as possible Couzens added no experts would be hired committee commit commit- tee members doing the investigating work themselves Details of all nIl the loans will not be made public The committee was Au Authorized u. u to report whatever It feels should be called to the attention of the senate Determination to study the loan to the the Dawes bank was indicated by Couz Couzens Cou Cou- tens zens z ens in asking the senate to approve his Ills resolution for the inquiry He called attention to the discussion of the loan and said CONSIDERABLE UNREST There is In my judgment nt considerable considerable consid consid- I erable era unrest in respect to the type of offo 1 fo loans oarus ns and nd the security that is being beine p put t up for the loans aggregating 1 already made by the Reconstruction Reconstruction Re Re- construction Finance corporation In fIn view of the circumstances it occurred occurred oc oe to me that a senate committee might examine the records records' and see whether the loans were being made In accordance with the law and that they were adequately secured The loan was criticised in the house yesterday by Representative Sabath Democrat Illinois who said the corporation corporation corporation cor cor- could have saved have saved a n number of small banks in Chicago and declined de de- dined to act Del I