To U.S. businessmen's surprised pleasure, the Federal Government made two moves last week to get out of competition with private business.
¶ The Reconstruction Finance Corp. finally decided that its grandiose venture into prefabricated housing was a dismal flop. It began foreclosure proceedings against Lustron Corp., after sinking $37.5 million of public funds into Lustron's scheme to produce low-cost enameled-steel dwellings on an assembly line. Lustron actually produced only 2,200 houses, repaid not a cent in interest or principal on RFC's loan. By foreclosing, RFC admitted, it could not hope to recoup much...
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