GOVERNMENT: RFC Reports

The Reconstruction Finance Corp., which has burned its financial fingers several times recently, had more bad news for Congress. In the fiscal year ending June 30, RFC reported last week, it will lose about $2,000,000 on operations of its synthetic rubber plants (v. a $6,000,000 profit in the last fiscal year), and it expects to lose another $6,000,000 in the next fiscal year. Reason: manufacturers are using less synthetic and more natural rubber than before.

RFC’s tin operations were also turning sour. After a $9,000,000 profit in the last fiscal year, RFC expects to lose $8,000,000 this year on the tin smelter it is operating in Texas. Low-priced tin from abroad is cutting into its market. Senators, deciding that it was high time to look into RFC’s operations, last week appropriated $50,000 to do it.