GOVERNMENT: Texmass Mess?

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Rushing In. Under the circumstances, why had RFC approved the loan? Senator Fulbright put RFChairman Hise on the stand to find out, but got little satisfaction. "I don't think I want to attempt to justify this particular loan," said Hise, slouching in his chair. "I have heard nothing to indicate it was a bad loan." Besides, he added, there was "no reason to hold up the disbursement." In fact, his staff lawyers thought it might be illegal for RFC not to go through with its loan commitment. RFC was firmly of the opinion that with more capital Texmass would eventually get on its feet. At week's end, RFC was still prepared to make the "illegal" loan—unless Senator Fulbright raised an alarm loud enough to scare RFC into backing down.

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