Federal Loan Agency

811 Vermont Avenue NW.; Information: EXecutive 3111
OFFICIALS
Federal Loan Administrator Fred M. Vinson
Assistant Federal Loan Administrator (Vacancy)
Special Assistant to the Administrator Edward F. Prichard, Jr.
Assistant to the Administrator Paul L. Kelley
Assistant to the Administrator Wilbur R. Lester


Creation and Authority.--The Federal Loan Agency was created by the President's Reorganization Plan I, dated April 25, 1939, pursuant to the provisions of the Reorganization Act of 1939. Under Executive Order 9071, dated February 24, 1942, the functions, powers, and duties of the Federal Loan Agency and of the Federal Loan Administrator which related to the Reconstruction Finance Corporation and certain subsidiary corporations, together with all functions, powers, and duties not transferred by the Executive order establishing the National Housing Agency, were transferred to the Department of Commerce to be administered under the direction and supervision of the Secretary of Commerce. Pursuant to the act approved February 24, 1945 (Public Law 4, 79th Cong., 1st Sess.), all powers, functions, and duties of the Department of Commerce and of the Secretary of Commerce relating to the Federal Loan Agency were transferred to the Federal Loan Agency, to be administered under the direction and supervision of the Federal Loan Administrator. Agencies grouped under the Federal Loan Agency at present are explained in the pages immediately following.

Purpose.--The Federal Loan Agency was established to supervise and coordinate the functions and activities of the corporations and agencies grouped under the Federal Loan Agency.

Approved.

Fred M. Vinson
Federal Loan Administrator

Reconstruction Finance Corporation

811 Vermont Avenue NW.; EXecutive 3111
BOARD OF DIRECTORS
Chairman Charles B. Henderson
  Howard J. Klossner Same H. Husbands
  Henry A. Mulligan Charles T. Fisher, Jr.
OFFICIALS
General Counsel John D. Goodloe
Secretary A.T. Hobson
Treasurer Henry A. Mulligan
Information: W.C. Costello, Special Assistant to Board of Directors, RFC;
A.B. Merritt, Administrative Assistant

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Creation and Authority.--The Reconstruction Finance Corporation was created as a body corporate by the Reconstruction Finance Corporation Act, approved January 22, 1932 (47 Stat. 5; 15 U.S.C. 601 et seq.). The Corporation was formally organized and its operations were begun on February 2, 1932. The scope of the Corporation's functions has been extended or modified from time to time by amendatory and supplemental legislation, and its succession, originally established at 10 years, has been extended 5 years to January 22, 1947.

Purpose.--The enactment creating the Corporation authorized it to extend financial assistance to agriculture, commerce, and industry, through direct loans to banks, trust companies, building and loan associations, insurance companies, mortgage-loan companies, and various agricultural credit agencies. Loans were also authorized to closed banks to aid in their reorganization or liquidation and, upon approval of the Interstate Commerce Commission, to railroads or receivers of railroads to provide temporary financial assistance. The original enactment also authorized the Corporation to accept drafts and bills of exchange drawn upon it arising from the sale of agricultural or other products to buyers in foreign markets.

Through amendatory and supplemental legislation the Corporation has been authorized: (1) to purchase the capital stock of banks, insurance companies, agricultural credit corporations, national mortgage associations, and various governmental agencies: (2) to make loans to business enterprises, mining interests, agricultural improvement districts, public school authorities, and various other classes of borrowers; (3) to assist in financing the construction of public works and various self-liquidating projects; and (4) in connection with the defense and war programs, to provide financing for purposes of plant conversion and construction, working capital, mining operations, and other activities; to provide war production facilities; to provide supplies of, and to stockpile, strategic and critical materials; and to undertake a wide range of other activities incident to the war effort.

The Corporation, acting directly and through subsidiary corporations, is now engaged almost exclusively in war activities, including the construction and expansion of production facilities for the manufacture of war matériel and other supplies and equipment, the procurement and stockpiling of strategic and critical materials, the operation of the Government's war damage insurance program, and other projects directly related to the war effort.

Organization.--The management of the Corporation is vested, pursuant to the provisions of the Reconstruction Finance Corporation Act, as amended (herein designated the "RFC Act"), in a Board of Directors appointed by the President, by and with the advice and consent of the Senate. The executive committee of the Corporation is composed of the chairman and two other members of its Board of Directors. In addition to the Secretary's and the Treasurer's Offices, the principal divisions of the Corporation are the Examining, Legal, Statistical and Economic, Information, Personnel, Self-Liquidating, Agency, and Auditing Divisions.

The Corporation functions through a principal office at Washington, D.C.; a special representative in Honolulu, T.H.; and loan agencies located in the following cities:

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Atlanta, Ga.
Birmingham, Ala.
Boston, Mass.
Charlotte, N.C.
Chicago, Ill.
Cleveland, Ohio
Dallas, Tex.
Denver, Colo.
Detroit, Mich.
Helena, Mont.
Houston, Tex.
Jacksonville, Fla.
Kansas City, Mo.
Little Rock, Ark.
Los Angeles, Calif.
Louisville, Ky.
Minneapolis, Minn.
New Orleans, La.
Nashville, Tenn.
New York, N.Y.
Oklahoma City, Okla.
Omaha, Nebr.
Philadelphia, Pa.
Portland, Oreg.
Richmond, Va.
St. Louis, Mo.
Salt Lake City, Utah
San Antonio, Tex.
San Francisco, Calif.
Seattle, Wash.
Spokane, Wash.

Federal Reserve Banks act as depositories, custodians, and fiscal agents for the Corporation. Finds of the Corporation are deposited with the Treasurer of the United States.

Capital Stock.--The capital stock of the Corporation was fixed by section 2 of the RFC Act at $500,000,000, all of which was subscribed by the Secretary of the Treasury on behalf of the Government of the United States on February 2, 1932. The entire capital stock has been paid in by the Secretary of the Treasury. Pursuant to the provisions of section 2 of the RFC Act, as amended by the act approved June 25, 1940 (54 Stat. 572), the Corporation retired $175,000,000 of its capital stock at par.

Borrowing Authority.--The RFC Act authorizes the Corporation to issue, within stated limits as to aggregate amount, its notes, debentures, bonds, or other obligations. Such obligations are fully guaranteed, both as to principal and interest, by the United States. The limitation upon the aggregate amount of such obligations which the Corporation may have outstanding at any one time has been variously increased and decreased by subsequent legislation. Some of such authorizations affect the borrowing authority available for general purposes and some of the borrowing authority available for specific purposes.

Activities.--The following statement describes the more important war acitivites and financing operations of the Corporation.

War Powers of the Reconstruction Finance Corporation..--The authority of the Reconstruction Finance Corporation to participate in the defense and war programs of the Government is covered in five acts of Congress and amendments thereof: sections 5d, 5f, 5g, and 5h of the RFC Act (15 U.S.C. 606b, et seq.); section 14 of the act approved June 19, 1934, as amended (15 U.S.C. 606d), relating to mining loans; section 9 of the act approved January 31, 1935, as amended (15 U.S.C. 713b), relating to the financing of the Export-Import Bank of Washington; section 2(e) of the Emergency Price Control Act of 1942, as amended (50 U.S.C. 902e), relating to the stimulation of the production of strategic and critical materials and the payment of subsidies in connection therewith; and various provisions of the act approved June 11, 1942 (50 U.S.C. 1104 et seq.), relating to the conversion of the facilities of small business concerns for purposes of war production and to the procurement of war supplies and materials.

The war powers of the Corporation have been modified or extended by various Executive orders, principally Orders 9112, relating to participation in, or the guarantee of, RFC loans by the War and Navy Departments and the United States Maritime Commission; 9177, relating to the importation of war materials; 9217, authorizing the acquisition

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and disposal of real property deemed necessary for war purposes; 9246, relating to the appointment of a Rubber Director; 99250, relating to the stabilization of the national economy; 9256, relating to the termination and liquidation of the Electric Home and Farm Authority; and 9361 and 9380 relating to the supervisory functions of the Office of Economic Warfare and the Foreign Economic Administration, respectively.

Section 5d of the RFC Act authorizes the Corporation to make loans to, and to purchase the obligations of, any business enterprise for any purpose deemed by the Corporation to the advantageous to the national defense. For the same purpose, upon approval of the Federal Loan Administrator, the Corporation may purchase the capital stock of any private business corporation. Such financing may be undertaken upon such terms and conditions and with such maturities as the RFC may determine appropriate. The War and the Navy Departments are authorized to participate in or guarantee any such loans.

In order to aid the Government in its national defense program, section 5d of the RFC Act authorized the Corporation, upon the request of the Federal Loan Administrator approved by the President, to create of organize Corporations1 with powers to:

  1. Produce, acquire, carry, sell, and otherwise deal in strategic and critical materials, as defined by the President.

  2. Purchase, lease, build, and expand plants.

  3. Acquire land by purchase or lease.

  4. Purchase and produce facilities, machinery, equipment, and supplies necessary for the manufacture of (a) strategic and critical materials, (b) arms, (c) ammunition, and (d) implements of war.

  5. Purchase and produce such other equipment, facilities, and supplies necessary to the national defense.

  6. Purchase and produce such other articles, supplies, materials, and equipment as may be required in the manufacture, use, or otherwise in connection with arms, ammunition, implements of war, or other equipment and supplies necessary to the national defense.

  7. Sell, lease, or otherwise dispose of land, plants, facilities, and machinery to others to enable them to engage in the manufacture of war requirements.

  8. Manufacture arms, ammunition, and implements of war upon a finding of the President that such manufacture by an agency of the Government is necessary.

  9. Produce, lease, purchase, and sell or lease railroad equipment and commercial aircraft.

  10. Provide facilities for aviation training.

  11. Take such other action as the President and Federal Loan Administrator may determine to be necessary in order to expedite the War Program. The amount of the funds of the Reconstruction Finance Corporation which may be devoted to such projects as may be undertaken pursuant to this particular authority is limited, and such corporations are expressly prohibited from undertaking certain public works projects.

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Section 5d of the RFC Act also provided for a limitation of the succession of such corporations and for the publication and registration of their charters. Under this authority the Reconstruction Finance Corporation created the following corporations: Defense Plant Corporation, Defense Supplies Corporation, Rubber Reserve Company, Metals Reserve Company, War Damage Corporation, Petroleum Reserves Corporation,2 and U.S. Commercial Company.2 The Reconstruction Finance Corporation is authorized to provide the capital for, and make loans to, such corporations.

Section 5d of the RFC Act authorizes the Corporation to provide funds to the Export-Import Bank of Washington and authorizes loans by the RFC to foreign governments or their agents. Such loans must be secured by obligations of the United States, the various States or political subdivisions thereof, or those of private corporations organized under the laws of the Untied States or any State.

Section 5f of the RFC Act authorizes the transfer or real estate by any department or agency of the Government to the RFC or its subsidiary defense corporations without regard to existing restrictions of law.

Section 5g of the RFC Act specifies in some detail the type of property insurance program to be established by the War Damage Corporation, a corporation created pursuant to the authority of section 5d.

Section 5h of the RFC Act relates specifically to loans and purchases to be made to and from dealers in rationed commodities. This program, designed primarily as a dealer relief measure, is authorized to be effected either directly through the RFC or indirectly through corporations created pursuant to section 5d.

Section 2(e) of the Emergency Price Control Act of 1942 authorizes the Price Administrator, an office created by the act, upon a determination that such action is necessary in order to secure the maximum necessary production of any commodity (as defined in section 302(c)), to purchase, store, sell, or use, or to make subsidy payments to domestic producers of, any such commodity. In the instance of materials defined as strategic and critical for the purpose of section 5d of the RFC Act, the determinations as to the necessity for such action are to be made by the Federal Loan Administrator, with the approval of the president; and all buying, selling, and other operations are to be undertaken, and all subsidy payments are to be made, by corporations created pursuant to section 5d.

The act approved June 11, 1942 (50 U.S.C. 1104 et seq.), provides for the establishment of the Smaller War Plants Corporation, an agency reporting through the Chairman of the War Production Board. This Corporation is authorized to make loans or advances to enable small business concerns (the term is not otherwise defined) to finance the construction, conversion, equipping, or expansion of plants, or matériel and essential civilian supplies. The Corporation is also authorized to purchase and lease war production facilities. Section 6 of the act provides that upon entering into any of the foregoing

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contracts, or upon the acquisition of property pursuant to the foregoing authority, the Smaller War Plants Corporation shall transfer any loan, advance, plant, equipment, facility, material, supply, etc., to the Defense Plant Corporation, a subsidiary of the RFC, for administration and liquidation.

The authority of the Corporation under section 14 of the act approved June 19, 1934, as amended (15 U.S.C. 606d), to make loans for the development of certain minerals includes an authorization added by the act approved September 16, 1940 (54 Stat. 897), to make loans for the development of any strategic or critical materials which, in the opinion of the Corporation, would be of value to the United States in time of war.

Financial Institutions.--Section 5 of the RFC Act authorizes the Corporation to make loans to banks, trust, insurance and mortgage-loan companies, building and loan associations, credit unions, and various agricultural credit institutions. Such loans may be made upon the assets of banks and building and loan associations which are closed or in process of liquidation.

In order to accelerate the repayment to depositors in banks and trust companies closed between December 31, 1929, and January 1, 1934, the Corporation is authorized by section 5e(a) of the RFC Act to make advances upon the assets, including segregated assets, of such banks and trust companies.

Section 304 of the act approved March 9, 1933, as amended (12 U.S.C. 51d), authorizes the Corporation,, upon the request of the Secretary of the Treasury approved by the President, to purchase, or to make loans upon, the capital stock of any bank or trust company requiring funds for capital purposes in connection with its organization or reorganization. Provision is made for the purchase of the capital notes of banks organized in States which subject holders of preferred stock to double liability and for the sale of any stock or notes purchased under this authority.

Section 5c of the RFC Act includes an authorization for the purchase of, or the making of loans upon, the non-assessable stock of national mortgage associations organized under title III of the National Housing Act (48 Stat. 1252; 12 U.S.C. 1716-23), any mortgage-loan or trust company or any savings and loan association engaged primarily in making real estate loans. Provision is made for the purchase of capital notes in certain instances for the sale of all such obligations. The financing of the Federal National Mortgage Association and The RFC Mortgage Company is handled pursuant to this authority.

Insurance Companies.--The Corporation is authorized by sections 1, 2, and 3, of the act approved June 10, 1933, as amended (15 U.S.C. 605e-i), to subscribe for the preferred stock of insurance companies and to make loans upon the security of such stock, when such action is requested by the Secretary of the Treasury and approved by the President as necessary to provide capital funds for any such company. The Corporation is authorized, if such stock is subject to assessments or additional liabilities, to purchase or to make loans upon the capital notes of insurance companies. Provision is made for the sale of obligations purchased under this authority.

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Railroad Loans.--Section 5 of the RFC Act authorizes the Corporation, upon approval of the Interstate Commerce Commission, to aid in the financing, reorganization, consolidation, maintenance, or construction of railroads by: (1) purchasing obligations of railroads, including equipment trust certificates, (2) guaranteeing the payment of principal, interest, or both on such obligations, or (3) making loans directly to railroads. Such financial assistance may be extended to the receivers or trustees of railroads, but may not (except to finance equipment and maintenance) be extended to a solvent railroad unless it is determined that any such road will be able to meet its fixed charges without reorganization. Loans to Business Enterprise.-- Section 5d of the RFC Act authorizes the Corporation for the purpose--in the terms of the statute--of maintaining and promoting the economic stability of the country or encouraging the employment of labor, to make loans to, or to purchase the obligations of, any business enterprise. Such financing can be undertaken, however, only when capital or credit is not available from private sources at rates prevailing for the type of loan in question. Many of the loans made under this authority have been made in participation with banks and other private financial institutions.

Loans to Drainage and Irrigation Districts.--The Corporation is authorized by section 36 of the Emergency Farm Mortgage Act of 1933, as amended (43 U.S.C. 403), to make loans to, or for the benefit of, drainage, levee, irrigation and similar districts, nonprofit corporations, and various political subdivisions of States and territories to enable such borrowers to reduce and refinance indebtedness incurred in connection with projects designed to improve agricultural lands. Such loans may be made to enable such borrowers to purchase or build such facilities for the improvement of agricultural lands, including drainage, levee, or irrigation works. No loans may be made under this authority to finance the development of new land outside the boundaries of established districts.

Loans to Public Agencies.--Section 5d of the RFC Act also authorizes the Corporation, for the purpose--in the terms of the statue--of maintaining and promoting the economic stability of the country or encouraging the employment of labor, to aid in financing the construction of public works projects undertaken by States, municipalities, and various public agencies, corporations, boards, and similar bodies. Such financial assistance may be provided by direct loans, purchase of obligations, or such other means as the Corporation may determine. Mining Loans.--The Corporation is authorized by section 14 of the act approved June 19, 1934, as amended (15 U.S.C. 606d), to make loans to individuals, partnerships, or corporations engaged in the business of mining, milling, or smelting ores. Loans may also be made to finance the development of deposits of certain minerals, including any strategic and critical materials determined by the Corporation to be necessary for war purposes.

,b>Miscellaneous Financing.--The Corporation is also authorized under the RFC Act and various enactments amendatory or supplemental thereof to make other types of loans, including loans (1) to finance the carrying and orderly marketing of agricultural commodities

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and livestock, (2) through the acceptance of drafts and bills of exchange, to facilitate the financing of the exportation of agricultural products, and (3) to finance sales of agricultural commodities in foreign markets.

The Corporation is authorized to purchase marketable securities held by the Public Works Administration.

The Corporation also provides funds, as directed by Congress, to various other agencies of the Federal Government. In this category the Corporation is directed by the following statutes to undertake the financing indicated:

  1. The Corporation is required, under section 5e(b) of the RFC Act, to purchase obligations of the Federal Deposit Insurance Corporation upon the request of its directors.

  2. Section 4 of the National Housing Act (48 Stat. 1247; 12 U.S.C. 1705) requires the Corporation to make such funds available to the Federal Housing Administration as the Administrator may deem necessary for the purpose of carrying out the provisions of titles II and III (48 Stat. 1247-55; 12 U.S.C. 1707-23) thereof and to provide funds for the War Housing Insurance Fund created under title VI (55 Stat.; 12 U.S.C. 1736-37).

  3. The Act approved February 11, 1937, as amended (15 U.S.C. 605k-l), directs the Corporation to subscribe for the capital stock of the Disaster Loan Corporation.

  4. The Department of Agriculture Appropriation Act, 1944 (57 Stat. 425, 427), requires the Corporation to make funds available to the Secretary of Agriculture to enable the Secretary to make (a) loans under title I of the Bankhead-Jones Farm Tenant Act (50 Stat. 522; 7 U.S.C. 1000-06); and (b) rural rehabilitation loans.

The Reconstruction Finance Corporation is also authorized to provide funds to various other agencies of the Federal Government. In this category the Corporation is authorized to undertake financing pursuant to the following statutes:

  1. Section 5d of the RFC Act and section 0 of the Act approved January 31, 1935, as amended (15 U.S.C. 713b), authorize the Corporation to advance funds to the Export-Import Bank of Washington.

  2. The Corporation is authorized, under various sections of the RFC Act, to finance The RFC Mortgage Company, Federal National Mortgage Association, and Defense Homes Corporation.

  3. Section 304, the act approved March 9, 1933, as amended (12 U.S.C. 51d), authorizes the Corporation, upon approval of the Federal Loan Administrator, to purchase the stock of any Federal Home Loan Bank owned by the United States.

Requests for Information.--Detailed information regarding loans may be obtained from the various loan agencies, or from the Washington office, 811 Vermont Avenue, Washington, D.C.

Approved.

Charles B. Henderson
Chairman, Board of Directors
John D. Goodloe
General Counsel

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Defense Plant Corporation

811 Vermont Avenue NW,; EXecutive 3111

DRECTORS
Fred M. Vinson
Charles B. Henderson
Howard J. Klossner
Henry A. Mulligan
Sam H. Husbands
Hans A. Klagsbrunn
Charles T. Fisher, Jr.

OFFICIALS
Chairman of the Board Fred M. Vinson
President Sam H. Husbands
Executive Vice President and General Counsel Hans A. Klagsbrunn
Vice President Frank T. Ronan
Vice President Walter E. Joyce
Vice President George F. Buskie
Secretary Leo Nielson
Assistant Secretary A.T. Hobson
Assistant Secretary Martin S. Swensen
Assistant Secretary Thomas Kelly
Treasurer Harry L. Sullivan
Assistant Treasurer Howard F. Morin
Assistant Treasurer Fred C. Bassen
Assistant General Counsel Francis J. O'Hara, Jr.
Assistant General Counsel Schuyler W. Livingston
Assistant General Counsel James G. Boss
Assistant General Counsel E.A. Stansfield
Assistant General Counsel Alan B. Brown
Assistant General Counsel Nathan H. Glueck
Assistant General Counsel in Charge of Litigation James L. Dougherty
Chief Engineer Walter L. Drager
Chief Auditor Nathaniel Royall
Information: W.C. Costello, Special Assistant to Board of Directors, RFC;
A.B. Merritt, Administrative Assistant

Creation and Authority.--Defense Plant Corporation was created by the Reconstruction Finance Corporation on August 22, 1940, pursuant to authority of section 5d of the Reconstruction Finance Corporation Act, as amended, with an authorized capital of $5,000,000.

Purpose.--The purposes of the Corporation are (a) to produce, acquire, carry, sell, or otherwise deal in strategic and critical materials as defined by the President; (b) to purchase and lease land, purchase, lease, build, and expand plants, and purchase and produce equipment, facilities, machinery, materials, and supplies for the manufacture of strategic and critical materials, arms, ammunition, and implements of war, any other articles, equipment, facilities, and supplies necessary to the national defense, and such other articles, equipment, supplies, and materials as may be required in the manufacture or use of any of the foregoing or otherwise necessary in connection therewith; (c) to lease, sell, or otherwise dispose of such land, plants, facilities, and machinery to others to engage in such manufacture; (d) to engage in such manufacture itself, if the President finds that it is necessary for a Government agency to engage in such manufacture; (e) to produce, lease, purchase, or otherwise acquire railroad equipment (including rolling stock), and commercial aircraft, and parts, equipment, facilities, and supplies necessary in connection with such railroad equipment and aircraft, and to lease, sell, or otherwise dispose of the same; (f) to

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purchase, lease, build, expand, or otherwise acquire facilities for the training of aviators and to operate or lease, sell, or otherwise dispose of such facilities to others to engage in such training; and (g) to take such other action, within a specified dollar limitation, as the President and the Federal Loan Administrator may deem necessary to expedite the War Program.

Organization.--The Corporation is managed by a board of directors, appointed by the Reconstruction Finance Corporation, and by officers and agents appointed by the Corporation. The principal office of the Corporation is located in Washington, D.C.

Approved.

Sam H. Husbands
President
Hans A. Klagsbrunn
Executive Vice President and General Counsel

Rubber Reserve Company

811 Vermont Avenue NW.; EXecutive 3111

DIRECTORS
Fred M. Vinson
Howard J. Klossner
Sam H. Husbands
Henry A. Mulligan
Charles B. Henderson
CHarles T. Fisher, Jr.

OFFICIALS
Chairman of the Board Fred M. Vinson
President Howard J. Klossner
Executive Vice President Stanley T. Crossland
Vice President Henry A. Mulligan
Vice President Richard Baybutt
Vice President John W. Livingston
Vice President and General Counsel H. Clay Johnson
Secretary George H. Hubert
Assistant Secretary A.T. Hobson
Assistant Secretary Ferris B. Thomas
Treasurer W.C. Beck, Jr.
Assistant Treasurer Allen E. Freeze
Assistant Treasurer F.J. Farrington
Assistant General Counsel John H. Rice
Assistant General Counsel in Charge of Litigation James L. Dougherty
Chief Auditor Nathaniel Royall
Information: W.C. Costello, Special Assistant to Board of Directors, RFC;
A.B. Merritt, Administrative Assistant

Creation and Authority.--Rubber Reserve Company was created by the Reconstruction Finance Corporation on June 28, 1940, pursuant to authority of section 5d of the Reconstruction Finance Corporation Act, as amended, with a capital of $5,000,000.

Functions.--Pursuant to general policies prescribed by the Rubber Director, the Company is engaged in purchasing, through Rubber Development Corporation, warehousing, and distributing all crude rubber, guayule, cryptostegia, and balata imported into the United States; in purchasing, warehousing, and distributing the national supply of scrap rubber; and in developing and supervising the operation of facilities for the production of synthetic rubber.

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Organization.--The Company is managed by a board of directors, appointed by the Reconstruction Finance Corporation, and by officers and agents appointed by the Company. The principal office of the Company is located in Washington, D.C.

Approved.

Howard J. Klossner
President
H. Clay Johnson
Vice President and General Counsel

Metals Reserve Company

811 Vermont Avenue NW.; EXecutive 3111

DIRECTORS
Fred M. Vinson
Charles B. Henderson
Henry A. Mulligan
Sam H. Husbands
Howard J. Klossner
Charles T. Fisher, Jr.

OFFICIALS
Chairman of the Board Fred M. Vinson
President Charles B. Henderson
Executive Vice President Harvey J. Gunderson
Vice President Charles T. Fisher, Jr.
Vice President Simon D. Strauss
Vice President DeWitt C. Schieck
Vice President H.W. Cornell, Jr.
Secretary Ferris B. Thomas
Assistant Secretary A.T. Hobson
Assistant Secretary George H. Hubert
Treasurer Henry A. Mulligan
Assistant Treasurer W.C. Beck, Jr.
Assistant Treasurer James W. Considine
General Counsel Morris Levinson
Assistant General Counsel Harold W. Sheehan
Assistant General Counsel Chester S. Shade
Assistant General Counsel Patrick M. Kildea
Assistant General Counsel in Charge of Litigation James L. Dougherty
Traffic Manager Jerome F. Morse, Jr.
Assistant Traffic Manager Thomas J. Doherty
Assistant Traffic Manager William T. Jarvis
Assistant Traffic Manager C.O. Bradshaw
Chief Auditor Nathaniel Royall
Information: W.C. Costello, Special Assistant to Board of Directors, RFC;
A.B. Merritt, Administrative Assistant

Creation and Authority.--Metals Reserve Company was created by the Reconstruction Finance Corporation on June 28, 1940, pursuant to authority of section 5d of the Reconstruction Finance Corporation Act, as amended, with a capital of $5,000,000.

Purpose.--The purpose of the Company is to produce, acquire, carry, and sell, or otherwise deal in, strategic and critical materials (primarily metals and minerals) necessary in connection with the War program. Reserve stocks of various materials are being accumulated by the Company when the supplies available permit. In the acquisition and distribution of these materials to manufacturers, the Company works in cooperation with the priority and consumption

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programs of the War Production Board and the Office of Price Administration.

Organization.--The Company is managed by a board of directors, appointed by the Reconstruction Finance Corporation, and by officers and agents appointed by the Company. The principal office of the Company is located in Washington, D.C.

Approved.

Charles B. Henderson
President
Morris Levinson
General Counsel

Defense Supplies Corporation

811 Vermont Avenue NW.; EXecutive 3111

DIRECTORS
Fred M. Vinson
Charles B. Henderson
M.J. McGrath
Charles T. Fisher, Jr.
Howard J. Klossner
Sam H. Husbands
Henry A. Mulligan

OFFICIALS
Chairman of the Board Fred M. Vinson
President Henry A. Mulligan
Executive Vice President Samuel H. Sabin
Vice President M.J. McGrath
Vice President and General Counsel George B. Stoner
Vice President Stuart K. Barnes
Secretary George H. Hubert
Assistant Secretary A.T. Hobson
Assistant Secretary Ferris B. Thomas
Treasurer Willard E. Unzicker
Assistant Treasurer Henry N. Bassett
Assistant Treasurer Stanley B. Hanes
Assistant Treasurer John H. Carroll
Assistant General Counsel John C. Erickson
Assistant General Counsel Chester S. Shade
Assistant General Counsel in Charge of Litigation James L. Dougherty
Chief Auditor Nathaniel Royall
Information: W.C. Costello, Special Assistant to Board of Directors, RFC;
A.B. Merritt, Administrative Assistant

Creation and Authority.--Defense Supplies Corporation was created by the Reconstruction Finance Corporation on August 20, 1940, pursuant to authority of section 5d of the Reconstruction Finance Corporation Act, as amended, with a capital of $5,000,000.

Purpose.--The purpose of the Corporation is to produce, acquire, carry, sell, or otherwise deal in strategic and critical materials and supplies; to purchase and lease land; to engage in the manufacture of arms, ammunition, and implements of war; to produce, lease, purchase, or otherwise acquire railroad equipment and commercial aircraft, and to lease, sell, or otherwise dispose of same; to acquire facilities for the training of aviators, and take such further action, within a specified dollar limitation, as the President and the Federal Loan Administrator deem necessary to expedite the War Program.

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Organization.--The Corporation is managed by a board of directors, appointed by the Reconstruction Finance Corporation, and by officers and agents appointed by the Corporation. The principal office of the Company is located in Washington, D.C.

Approved.

Henry A. Mulligan
President
George B. Stoner
Vice President and General Counsel

War Damage Corporation

811 Vermont Avenue NW.; EXecutive 3111

DIRECTORS
Charles B. Henderson
Sam H. Husbands
Charles T. Fisher, Jr.
Howard J. Klossner
Henry A. Mulligan
George E. Allen

OFFICIALS
Chairman of the Board Fred M. Vinson
President Howard J. Klossner
Executive Vice President Frank A. Christensen
Vice President Charles T. Fisher, Jr.
Vice President Stanley T. Crossland
Vice President H. Clay Johnson
Secretary Matthias W. Knarr
Treasurer Henry A. Mulligan
Assistant Treasurer Willard E. Unzicker
Assistant Treasurer F.W. Davis
General Counsel John D. Goodloe
Assistant General Counsel Robert C. Goodale
Assistant General Counsel in Charge of Litigation James L. Dougherty
Chief Auditor Nathaniel Royall
Information: W.C. Costello, Special Assistant to Board of Directors, RFC;
A.B. Merritt, Administrative Assistant

Creation and Authority.--The War Damage Corporation was created as the War Insurance Corporation by the Reconstruction Finance Corporation on December 13, 1941, pursuant to authority of section 5d of the Reconstruction Finance Corporation Act, as amended, with a capital of $100,000,000. The act approved March 27, 1942 (15 U.S.C. 606b-2), further delineated the powers of the War Damage Corporation by adding section 5g to the Reconstruction Finance Corporation Act, as amended.

Purpose.--The purpose of the Corporation is to provide, through insurance, reinsurance, or otherwise, reasonable protection against loss of or damage to property, real and personal, which may result from enemy attack, including any action taken by the military, naval, or air forces of the United States in resisting enemy attack.

Organization.--The Corporation is managed by a board of directors, appointed by the Reconstruction Finance Corporation, and by officers

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and agents appointed by the Corporation. The principal office of the Company is located in Washington, D.C.

Approved.

Howard J. Klossner
President
John D. Goodloe
General Counsel

Disaster Loan Corporation

811 Vermont Avenue NW.; EXecutive 3111

OFFICIALS
Managing Directors Charles B. Henderson
Charles T. Fisher, Jr.
Secretary Matthias H. Knarr
Assistant Secretary Edward J. Singer
Treasurer Henry A. Mulligan
Assistant Treasurer D.B Griffin
General Counsel Harvey J. Gunderson
Assistant General Counsel Arthur M. Blacklow
Assistant General Counsel in Charge of Litigation James L. Dougherty
Chief Auditor Nathaniel Royall
Information: W.C. Costello, Special Assistant to Board of Directors, RFC;
A.B. Merritt, Administrative Assistant

Creation and Authority.--The Disaster Loan Corporation was created by act approved February 11, 1937, as amended (15 U.S.C. 605k-l).

The Corporation was organized February 15, 1937, and will have succession until dissolved by act of Congress.

Purpose.--The function of the Corporation is to provide loans made necessary by floods or other catastrophes occurring during the period between January 1, 1936, and January 22, 1947.

Organization.--The Corporation is managed by officers and agents appointed by the Reconstruction Finance Corporation under rules and regulations prescribed by the Board of Directors of the Reconstruction Finance Corporation. It functions through a principal office at Washington and regional offices, in charge of agents, at the RFC loan agencies. (Location of loan agencies listed on page 422.)

Capital Stock.--The capital stock of the Corporation is not to exceed $40,000,000, to be subscribed and paid for by the Reconstruction Finance Corporation.

Loans.--The Corporation is empowered to make, upon such terms and conditions and in such manner as it may prescribe, such loans as it may determine to be necessary or appropriate because of floods or other catastrophes occurring during the period between January 1, 1936, and January 22, 1947.

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Applications forms for loans should be obtained form and filed with regional offices of the Corporation.

Approved.

Charles B. Henderson
Charles T. Fisher, Jr.
Managing Directors
Harvey J. Gunderson
General Counsel

Federal National Mortgage Association

811 Vermont Avenue, NW.; EXecutive 3111

DIRECTORS
William C. Costello
James L. Dougherty
Charles T. Fisher, Jr.
Henry A. Mulligan
Charles B. Henderson
Sam H. Husbands
Howard J. Klossner
Stewart McDonald

OFFICIALS
President Sam H. Husbands
Vice President and General Counsel James L. Dougherty
Vice President Charles T. Fisher, Jr.
Secretary Matthias W. Knarr
Assistant Secretary Edward J. Singer
Treasurer Jerome T. Kelley
Assistant Treasurer James W. Considine
Assistant General Counsel E.A. Stansfield
Assistant General Counsel Newell K. Ricks
Chief Auditor Nathaniel Royall
Information: W.C. Costello, Special Assistant to Board of Directors, RFC;
A.B. Merritt, Administrative Assistant

Creation and Authority.--The Federal National Mortgage Association, originally The National Mortgage Association of Washington, was organized and established on February 10, 1938, pursuant to the provisions of title III of the National Housing Act, as amended, (12 U.S.C. 1701 et seq.) herein designated "the act." The Association has a paid-in capital of $10,000,000 and a paid-in capital surplus of $1,000,000. Its capital stock is owned by the Reconstruction Finance Corporation.

Purpose.--The principal objectives of the Association are (a) to establish a market for first mortgages, insured under title II of the act, covering properties upon which are located newly constructed houses or housing projects; (b) to facilitate the construction and financing of economically sound rental housing projects, apartment buildings which may be operated at a moderate scale of rentals, and groups of houses or multi-family dwellings for rent or sale, by making loans secured by first mortgages, insured under section 207 of the act, covering such projects, apartment buildings, or groups of houses or multi-family dwellings; and (c) to make available to individual and institutional investors, notes, bonds, or other such obligations issued by the Association pursuant to the provisions of section 302 of title III

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of the act, and the regulations of the Federal Housing Administrator, herein called the Administrator.

Organization.--The Federal National Mortgage Association is managed by a board of directors and is represented by agents whose offices are in the loan agencies of the Reconstruction Finance Corporation. (See p. 422.) The principal divisions of the Association are the Examination Division, Legal Division, Secretary's Office, Treasurer's Office, and Mortgage Service Division.

Purchase of Mortgages Insured Under Section 203.--The Association will purchase, without recourse, mortgages insured by the Administrator under the provisions of section 203 of the act from institutions or organizations, other than loan correspondents, which have been approved as mortgages by the Administrator and have a net worth satisfactory to the Association, at a price equal to the principal unpaid balance of such mortgages plus accrued interest to the date of purchase, provided such mortgages constitute first liens on p property located within a radius of 200 miles from the principal home office or approved branch office of the approved mortgagee, bear interest at a rate of not less than 4.5 percent per annum, cover improvements constructed on or after January 1, 1936, which were insured by the Administrator on or after January 1, 1937, and otherwise meet the Association's requirements. Purchasing and Servicing Agreement.--Approved mortgages desiring to offer mortgages insured under section 203 of the act to the Association for immediate purchase, or for purchase at a future date, are required to enter into a purchasing and servicing agreement with the Association. In instances in which commitments to purchase at a future date are made, the Association requires the approved mortgagee to deposit a commitment fee equal to 1 percent of the principal amount of the mortgage, which fee will be returned when the mortgage is delivered to the Association for purchase. Commitments are made for a period of 6 months. Purchase of Mortgages Insured Under Section 207.--The Association will consider applications from approved mortgagees for commitments to purchase mortgages insured by the Administrator under the provisions of section 207 of the act. Applications for such commitments must be submitted to the Association and the commitment of the Association be obtained prior to the beginning of the construction of the project to be covered by such mortgages.

Loans Secured by Mortgages Insured Under Section 207.--The Association will consider applications for loans secured by mortgages insured by the Administrator under the provisions of section 207 of the act where the estimated income from the mortgaged property is sufficient to pay the operating expenses, taxes, insurance, interest on the indebtedness, and reasonable amortization, and provide a reasonable margin in excess of required reserves. Applications for such loans must be submitted to the Association prior to the beginning of construction of the project to be covered by the mortgage.

Loans made by the Association secured by mortgages insured under section 207 of the act will bear interest at the rate of 4 percent per annum. An initial service charge of 1.5 percent of the principal amount of the loan will be made by the Association if it is required to make disbursements during the period of construction.

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Filing of Offerings and Applications.--All inquiries concerning the activities of the Association, all applications for loans secured by mortgages insured under section 207 of the act, and all offerings of mortgages insured under sections 203 or 207 of the act to the Association for purchase, should be filed with the agent serving the territory in which the mortgaged property or property to be mortgaged is located. Application loan forms, forms for offering mortgages for purchase, and other forms prescribed by the Association may be obtained from the Association's agents at the RFC loan agencies. (See p. 422.)

Approved.

Sam H. Husbands
President
James L. Dougherty
Vice President and General Counsel

The RFC Mortgage Company

811 Vermont Avenue NW.; EXecutive 3111

DIRECTORS
W.C. Costello
James L. Dougherty
Charles T. Fisher, Jr.
Charles B. Henderson
Sam H. Husbands
H.J. Klossner
M.J. McGrath
Henry A. Mulligan

OFFICIALS
President Charles T. Fisher, Jr.
Vice President M.J. McGrath
Vice President W.C. Costello
Secretary Matthias W. Knarr
Assistant Secretary Edward J. Singer
Treasurer Henry A. Mulligan
Assistant Treasurer Jerome T. Kelley
General Counsel E.A Stansfield
Assistant General Counsel Newell K. Ricks
Assistant General Counsel in Charge of Litigation James L. Dougherty
Chief Auditor Nathaniel Royall
Information: W.C. Costello, Special Assistant to Board of Directors, RFC;
A.B. Merritt, Administrative Assistant

Creation and Authority.--Section 5c of the Reconstruction Finance Corporation Act, as amended, added by the act approved January 31, 1935 (49 Stat. 1; 15 U.S.C. 606i), authorizes the Reconstruction Finance Corporation, with the approval of the President, to "subscribe for or make loans upon the nonassessable stock of any class of any national mortgage association organized under title III of the National Housing Act and of any mortgage loan company, trust company, saving and loan association, or other similar financial institution . . ."

Pursuant to this authority the Reconstruction Finance Corporation has subscribed to $25,000,000 of the capital stock of The RFC Mortgage

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Company, which was organized under the laws of Maryland on March 14, 1935.

Purpose.--To aid in the (a) maintenance of a market for sound mortgages on urban income-producing properties when credit is not otherwise available at reasonable rates and terms, and (b) maintenance of a market for mortgages insured under titles I and II of the National Housing Act, as amended; and to facilitate the construction of war housing by the purchase of mortgages insured under title VI of the National Housing Act, as amended, and by making loans secured by mortgages insured under section 608 of title VI of said act, as amended.

Organization.--The principal office of The RFC Mortgage Company is located in Washington D.C. The Company transacts business in all the States and Territories of the United States. The business of the Company is handled through agents whose offices are located in the loan agencies of the Reconstruction Finance Corporation throughout the United States. (See p. 422.)

Activities.--The Company considers applications for mortgage loans on urban income-producing properties such as apartment houses, hotels, business and office buildings to be made directly (1) to assist in the refinancing or aid in the reorganization of such properties which are in distress, (2) to finance the new construction of such properties, provided there is an economic need for such construction, and (3) to defray taxes and other fixed charges of such properties which are in distress through the loss of income directly attributable to the operation of wartime restrictions and regulations. Such loans will be made only upon compliance with the standards of the Company as to soundness and economic necessity, and only in instances in which credit is not otherwise available at reasonable rates and terms and when the net income from the property, after payment of taxes, insurance, and operating costs, is sufficient or will be sufficient in normal times to pay interest and the required amortization.

Local Agents Supply Application Forms.--All applications for loans or offerings of Federal Housing Administration insured mortgages should be filed with the Company's agent at the RFC loan agency serving the territory in which the property is located. Information concerning loans may also be obtained from the agents. (Locations of loan agencies listed on page 422.)

Approved.

Charles T. Fisher, Jr.
President
E.A. Stansfield
General Counsel

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Table of Contents


Footnotes

1. By the terms of section 5d the authority to create corporations expired on July 1, 1943.

2. Transferred by Executive Order 9361, of July 15, 1943, to Office of Economic Warfare which was consolidated into the Foreign Economic Administration by Executive Order 9380, of September 25, 1943.


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