By allotting $50 million to RFC for prefabricated housing last year, Congress expected to hatch out a number of new prefabricators. But RFC had already picked out one big egg, Lustron Corp., and hatched it (TIME, Nov. 25, 1946 et seq.). Though RFC knew that Lustron's steel houses had only a fair chance of survival in the housing market, RFC kept on feeding Lustron millions because it knew that otherwise Lustron would die. In two years, Lustron swallowed up $35.5 million.* Last week RFC lent Lustron another $2,000,000 to keep the company going through September, and then asked Congress...
To continue reading:
or
Log-In
