GOVERNMENT: RFC on Trial

In the marbled, high-walled hearing room of the Senate Banking and Currency Committee, the life-&-death trial of the nation's biggest lending agency dragged on into its fifth week. The question whether the powerful RFC should be continued beyond its legal deadline of June 30 has revolved chiefly around the way RFC had handled its biggest railroad deal, an $80 million loan to the Baltimore & Ohio Railroad. The issue—and a first-rate ruckus—was raised by gaunt, balding Cassius Marcellus Clay, an ex-official of both RFC and the B. & O. The loan, said...