When Kaiser-Frazer last week got a new $25 million RFC loan to help keep it solvent until it can sell its big backlog of cars, the terms were stiff. (K-F already owes RFC $43 million.) RFC ordered K-F to: 1) cut production from 800 to 600 cars a day; 2) raise no prices without RFC consent; 3) pay off the loan with 90% of the wholesale selling price of each car as it is taken out of storage.

Some businessmen questioned whether the loan should have been made at all. Said the Wall Street Journal: "Why should our government ....

Want the full story?

Subscribe Now


Learn more about the benefits of being a TIME subscriber

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