Word: kaisers
(lookup in dictionary)
(lookup stats)
Dates: all
Sort By: most recent first
(reverse)
After lending Henry Kaiser $34.4 million only a month ago, the RFC last week opened its cash drawer and plunked out another $10 million to its great & good friend. The earlier loan was to help Kaiser-Frazer bring out a low-priced car by next spring to compete with Ford, Chevrolet and Plymouth. The second loan was to permit K-F to finance its dealers' purchases of cars from the factory, because K-F dealers had trouble getting loans from private banks. All told, RFC has loaned K-F almost as much as the company raised in stock sales...
When the new $44.4 million credit is drawn on, Henry Kaiser's various enterprises, according to his books, will owe the Government $186.6 million. He still owes $88.2 million on his Fontana, Calif, steel plant and $54 million on Permanente Metals, Willow Run and the Ironton (Utah) blast furnace. To date, Kaiser has paid off a total of $70.1 million on Government loans and credits, and he has paid another $41 million to the U.S. in rents and interest. Kaiser said he has also poured $108 million in earnings and private loans into improving and expanding his plants...
Despite the whopping Kaiser debts to the U.S., RFC Chairman Harley Hise, a onetime California banker and minor Democratic politician, regarded the $44.4 million loans as "sound banking" action. Hise thought that there was "more than a reasonable chance that K-F can succeed...
Actually the terms to Kaiser are fairly stiff. For the $44.4 million, RFC required 1) a lien on all physical assets of K-F, 2) a guaranty for $15 million of the loan by two other Kaiser companies "who must also put up stock collateral having a market value of at least $10 million, and 3) a lien for $10 million of the loan on a fixed reserve of unsold autos...
...which has always proved a friend in need for Henry Kaiser, came through last week with a $34.4 million loan for Kaiser-Frazer. RFC said some of the cash would be used to tool up for a complete line of cars. (K-F now makes only four-door sedans.) Detroit also heard that about $5,000,000 would be used to turn out a car for under $1500 to challenge Ford, Plymouth and Chevrolet. Henry Kaiser, who has paid back $67.6 million of his federal loans, now owes the government $149.8 million...