of Defense; a manual entitled "Procedure for the Renegotiation of War Contracts," by the Treasury Department Price Adjustment Board; renegotiation manuals issued by the WCPAB; and data on profits and operations of U.S. corporations during 1936-42, published by the Securities and Exchange Commission.

114. CLEARANCE FILE. 1945-48. 3 in.

Arranged numerically, 130-995, and chronologically.

Letters of notification from the WCPAB and the RFC PAB to contractors discharging them from claims of excessive profits from the Government for a specified fiscal year.

115. FINANCIAL RECORDS. 1945-48. 2 ft. Arranged by subject and type of record. Vouchers authorizing payment to other Government agencies for their expenses in processing claims

for renegotiation rebates of the PAB; accounts of PAB expenditures allocated among the RFC subsidiaries; adjusted monthly general ledger trial balances with analyses of the accumulated net cost of operations of the renegotiation settlements program; correspondence with the U.S. Treasury regarding checks submitted as rebates on Government contracts; analyses of accrued interest receivable, accounts receivable, and repayments receivable based on vouchers posted to general ledger; deposit advices showing amounts collected by the RFC custodian agents in rebates from contractors to the account of the RFC PAB; letters from the War Department requesting the PAB to withhold certain sums from contractors owing rebates to that Department for excessive profits; and interoffice memorandums containing information about net renegotiation rebate claims filed by contractors against the Government. Other PAB records are described in entries 320 through 322 below.

RFC CONTRACT SETTLEMENT COMMITTEE

This Committee was established October 21, 1944, pursuant to the Contract Settlement Act of 1944, approved July 1, 1944, which established for all Government procurement agencies uniform policies for claims settlement arising from terminated war contracts. Similar committees were established in all procurement agencies under the coordinating supervision of the Office of Contract Settlement created by the act. Included among the contracting agencies to which the act was applicable were the RFC, Defense Plant Corporation, Metals Reserve Company, Defense Supplies Corporation, and Rubber Reserve Company. Their Boards of Directors recommended the establishment of a supervisory organization to be known as the RFC Contract Settlement Committee and they authorized the Committee to effectuate within these companies the policies established by the act. This Committee replaced the RFC Supervisory Committee for Settlement of Terminated War Contracts, which had been established on June 17, 1944, pursuant to Directive Order No. 5 of the Director of War Mobilization. Jurisdiction over contract settlements was transferred to the Department of the Treasury by Reorganization Plan No. 1 of 1947, and to the General Services Administration by an act of June 30, 1949.

116. MINUTES OF THE RFC SUPERVISORY
COMMITTEE FOR SETTLEMENT OF TERMI-
NATED WAR CONTRACTS. 1944. 1⁄4 in.
Arranged chronologically.

Signed original copies of the minutes of the RFC Supervisory Committee for Settlement of Terminated War Contracts from the date of its first meeting on June 17, 1944, until its final meeting on October 21, 1944. They relate to resolutions and authorizations to the Chairman and Secretary of the Committee to send letters to the Office of Contract Settlement enclosing monthly reports of contracts terminated by the RFC subsidiaries. Included are lists of Committee and staff members present at the meetings.

117. MINUTES OF THE RFC CONTRACT SETTLEMENT COMMITTEE. 1944-45. in. Arranged chronologically.

Signed original copies of the minutes of the RFC Contract Settlement Committee from the date of its first meeting on October 21, 1944, until its final meeting on February 22, 1945. They relate to resolutions and authorizations to the Chairman of the Committee to transmit to the Office of Contract Settlement monthly reports of contracts terminated by the RFC subsidiaries. Included are lists of Committee and staff members present at the meetings. At the final meeting the Chairman was authorized to request the RFC Board of Directors to delegate to the RFC's Statistical and Economic Division the responsibility for handling the monthly reports on contract terminations.

OFFICE OF WAR ACTIVITY LIQUIDATION

The RFC Board of Directors established the Office of War Activity Liquidation (OWAL) on July 19, 1948, as the partial successor to the Office of Defense Plants. On September 8, 1948, a Plant Liquidation Division was set up in the OWAL and within this Division a Review Committee was established on November 30, 1948. The Review Committee consisted of the divisional chief, three branch chiefs, and three other members, one each designated by the Board of Directors, the General Counsel, and the Controller. The Review Committee was authorized to "approve, direct and effect negotiated or unilateral settlements up to $25,000 of any bill, commitment, or claim asserted by or against the RFC, as successor to the Defense Plant Corporation and the Office of Defense Plants, arising out of or based upon a contract, quasi-contract, lease agreement, tort or otherwise and to approve partial payments under such settlements." The Committee made monthly reports of its actions to the Directors and the Secretary incorporated these reports in the Directors' minutes.

On November 30, 1948, the Contract and Commodity Claims Committee was set up within the Contract and Commodity Division of the OWAL by a resolution of that date by the Board of Directors in order "to determine, direct and effect the settlement, adjustment, compromise or waiver ... of any and all claims or demands by or against this Corporation ... when such claim, demand or account arises out of an activity or function of the former Office of Defense Plants, Office of Defense Supplies, Office of Metals Reserve, Office of Rubber Reserve, Rubber Development Corporation, U.S. Commercial Company or Traffic Division which is at any time transferred to the said Contract and Commodity Division, or to reject any such claim, demand or account, wholly or in part ...."

118. RECORDS OF MEETINGS OF THE PLANT LIQUIDATION DIVISION REVIEW COMMITTEE. 1948-50.5 in.

Arranged chronologically.

A typical record of a meeting of this Committee contains a signed statement of the secretary giving time and place of meetings, December 13, 1948November 24, 1950, with a list of the Committee members present; a signed memorandum of the secretary giving a summary of the transactions taken by the Committee at the meeting; papers, consisting chiefly of reports and correspondence, submitted by RFC officials in support of their recommendations to the Committee to approve or decline the offer of the lessee of the plant under liquidation to settle all claims arising out of its operation of the plant; and the action of the Committee approving or disapproving the recommendation submitted to it.

119. RECORDS OF MEETINGS OF THE CONTRACT AND COMMODITY CLAIMS COMMITTEE. 1948-50. 1 ft.

Arranged chronologically.

The records of a typical meeting of the Committee contain a signed statement of its secretary giving the date, hour, and place of meetings, December 6, 1948-December 1, 1950, and a list of the members present; a signed memorandum of the secretary containing a summary of the transactions accomplished; recommendations on actions to be taken by the Committee respecting claims by or against the RFC, and supporting papers submitted by the interested agency officials handling the claims; and the final action of the Committee approving or disapproving the recommendations.

Records of the Federal Loan Agency

The Federal Loan Agency (FLA) was created by Reorganization Plan No. 1 of 1939, which became effective July 1, 1939. The FLA included the RFC and the following associated organizations: the Electric Home and Farm Authority, RFC Mortgage Company, Federal National Mortgage Association, Disaster Loan Corporation, Export-Import Bank of Washington, Defense Plant Corporation, Rubber Reserve Company, Metals Reserve Company, Defense Supplies Corporation, and War Insurance Corporation (later known as War Damage Corporation). Several non-RFC agencies were also under the FLA. Executive Order No. 9071 of February 24, 1942, transferred to the Department of Commerce the functions, powers, and duties of the FLA that related to the above-named organizations, to be administered under the direction of the Secretary of Commerce.

An act of February 24, 1945, provided for the continuance of the FLA as an independent agency, disregarding the issuance of the Executive order. The FLA was abolished pursuant to a joint resolution approved June 20, 1947, effective midnight June 30, 1947, and its property and records were transferred to the RFC.

Records of the Secretary of Commerce

The RFC functioned within the Department of Commerce from February 24, 1942, to February 24, 1945. Throughout that period, Jesse H. Jones, former RFC Chairman of the Board of Directors and Federal Loan Administrator, served as Secretary of Commerce. The following two entries describe records of the Secretary that directly concern RFC activities. Other material relating to these activities during this period are among General Records of the Department of Commerce, Record Group 40.

124. ADMINISTRATIVE SUBJECT FILE. 1942-44. 6 ft.

Arranged alphabetically by name of subsidiary agency and thereunder chronologically.

Correspondence with Congressmen, officials of the War Production Board, the Military Establishment, and subsidiaries of the Federal Loan Agency relating to the wartime emergency programs that were under the authority of the Secretary of Com

merce; lists of defense plants constructed and leased by the Defense Plants Corporation giving location, name of lessee, item manufactured, status, and amount of contract; and reports on such matters as freight cars required by the DPC for the movement of essential defense materials in 1942, synthetic rubber production in Government-leased plants, and domestic purchases of strategic materials by the Defense Supplies Corporation.

Records of the Subsidiary Corporations

The subsidiary corporations and agencies of the RFC were established and organized under section 5 of the RFC Act, as amended, whenever such organizations were deemed necessary. Although the subsidiaries were legally and financially separate corporations, they were, in most instances, staffed by RFC employees and many of their directors were also members of the RFC's Board of Directors. They are differentiated from the allied corporations of the RFC that were neither created nor organized by it but-as in the case of the Electric Home and Farm Authority-were transferred to the RFC for liquidation, or-as in the case of the Federal Facilities Corporation-were set up solely to liquidate certain wartime RFC functions (such as the rubber and tin programs).

REGIONAL AGRICULTURAL CREDIT CORPORATIONS

The Regional Agricultural Credit Corporations (RACC) were established by the RFC in each of the 12 Federal land-bank districts under the provisions of section 201, title II, of the Emergency Relief and Construction Act of 1932. These corporations were authorized to make loans and advances to farmers and stockmen, the proceeds of which were to be used for agricultural purposes (including crop production) or for the raising, breeding, fattening, or marketing of livestock. Effective May 27, 1933, these corporations were transferred from the RFC to the jurisdiction and control of the Farm Credit Administration.

The RFC Mortgage Company was incorporated on March 14, 1935, under the laws of the State of Maryland. Its incorporators were officials of the RFC, which purchased the capital stock of the Company under the authority of section 5c of the RFC Act, as amended. The function of the Company was to assist in the reestablishment of a normal mortgage market. The bylaws of the Company provided for the management of its affairs by a Board of Directors. In practice, however, the Board members were also officials of the RFC, and the Company was administered by the same organization and offices as those of the RFC.

In August 1946 the RFC was authorized to purchase loans insured or guaranteed by the Veterans Administration. Consequently, the RFC Mortgage Company created a secondary market for veterans' home loans by purchasing these obligations at the request of the originating institutions. From 1935 to 1947, the RFC provided the Mortgage Company with $334,910,020. Through June 30, 1947, the Company realized $345,931,572 from the $419,307,686 that it had disbursed. About two-thirds of the total recovery was derived from sales of mortgages to financial institutions, including 10,592 Federal Housing Administration-insured. mortgages amounting to $40,509,731,' which were sold to the Federal National Mortgage Association. Section

Final Report on the Reconstruction Finance Corporation (Washington, 1959), p. 94-95. Most of the statistics below are from this report.