GOVERNMENT: Locking the Door

When a $10,000-a-year official of the RFC, John Hagerty, took over the $30,000-a-year presidency of Waltham Watch Co. (TIME, May 9), many a congressional temper flared. For Hagerty, as the RFC's Boston manager, had recommended the $9,000,000 loan (later cut to $6,000,000) that enabled Waltham to reorganize. A Senate committee began digging into the RFC's records, found that the RFC had been an open door to high-salaried jobs in other companies which it had bailed out. In 4½-years, 20 RFC employees had joined companies that were in debt to the RFC. Like...

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