GOVERNMENT: Heave-Ho

From the $37,500,000 in loans he had received from RFC, Lustron Corp.'s President Carl G. Strandlund had paid himself a salary of $50,000 a year. Last week, after RFC had forced defaulting Lustron into receivership, Receiver Clyde M. Foraker's first act was to fire Strandlund, two $25,000-a-year vice presidents, and two other officers drawing $25,000 between them. Ex-President Strandlund had no immediate plans. Said his attorney: "Mr. Strandlund is resting." Unless a way is found to operate Lustron profitably, the next step would probably be liquidation. An RFC estimate of the asset value: between $6,000,000 and $7,000,000.

...

Want the full story?

Subscribe Now

Subscribe
Subscribe

Get TIME the way you want it

  • One Week Digital Pass — $4.99
  • Monthly Pay-As-You-Go DIGITAL ACCESS$2.99
  • One Year ALL ACCESSJust $30!   Best Deal!
    Print Magazine + Digital Edition + Subscriber-only Content on TIME.com

Learn more about the benefits of being a TIME subscriber

If you are already a subscriber sign up — registration is free!