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64-418: In January 1947, the newly formed Lustron Corporation announced that it had received a $ 12.5-million Reconstruction Finance Corporation loan to manufacture mass-produced prefabricated homes that featured vitreous enamel - coated steel panels ( U.S. patent 2,416,240 ). Led by Chicago industrialist and inventor Carl Strandlund , who had worked with constructing prefabricated gas stations , Lustron offered

128-636: A March 1949 article in the Columbus Dispatch —about 25 percent less than comparable conventional housing. By November 1949, however, a Lustron's average selling price had come up to $ 10,500. Most of the known Lustron houses were constructed in 36 of the United States, including Alaska. However, some were constructed in Venezuela for families of oil industry employees. Billed as a way to maximize pleasure and minimize work, Lustron advertising contended that

192-408: A case study of Mississippi , Vogt (1985) examined two areas of RFC funding: aid to banking, which helped many Mississippi banks survive the economic crisis, and work relief, which Roosevelt used to pump money into the state's relief program by extending loans to businesses and local government projects. Although charges of political influence and racial discrimination were levied against RFC activities,

256-494: A central light flanked by two four-light casement windows. Three-light and/or square aluminum casements with interior screens were standard on all Lustrons. Add-on storm windows were available for residents in colder climates. Westchester Deluxe two- and three-bedroom models were unique in that they boasted a tripartite bay window in the living room area: no other Lustron line included this feature. In Westchester Deluxe two-bedroom models, additional tripartite windows were located in

320-737: A congressional committee, and he did not reintroduce the bill in subsequent sessions. Morris Beckman (architect) Morris Beckman was an American architect. Numerous buildings that eventually were listed on the National Register of Historic Places are credited to him. These include, for example, the Peter Hansen House (Pierre, South Dakota) , which is listed on the National Register of Historic Places in Hughes County, South Dakota . Along with architect Roy Blass , Beckman

384-498: A desperately needed product. Production delays, the lack of a viable distribution strategy , and the escalating prices for the finished product all contributed to the failure. Additionally, local zoning codes also played a part. In some municipalities, for example, an ordinance prohibited homes with steel chimneys. Some accounts suggest an organized effort from the existing housing industry to stop Strandlund, comparing him to Preston Tucker (ironic, because Strandlund's first choice for

448-550: A home that would "defy weather, wear, and time." Strandlund's Lustron Corporation , a division of the Chicago Vitreous Enamel Corporation, set out to construct 15,000 homes in 1947 and 30,000 in 1948. From its plant in Columbus, Ohio (the former Curtiss-Wright factory), the corporation eventually constructed 2,498 Lustron homes between 1948 and 1950. The houses sold for between $ 8,500 and $ 9,500, according to

512-563: A service and storage area, and metal ceiling tiles. In the Westchester Deluxe models, the living room and master bedrooms featured built-in wall units. As an added option, customers were presented with the unique Thor-brand combination clothes- and dish-washer , which incorporated the kitchen sink. There were two major window types in Lustron homes: “tripartite” and casement, all manufactured by Reynolds Aluminum . The tripartite consisted of

576-503: The Cemesto houses in Oak Ridge, Tennessee . With enameled steel panels inside and out, as well as steel framing, the homes stood out next to more traditional dwellings made of wood and plaster. Lustron homes were usually built on concrete slab foundations with no basement. However, about 40 Lustron homes have been reported to have basements. Their sturdy steel frame was constructed on-site and

640-605: The Great Depression in the United States, Federal Reserve board member Eugene Meyer proposed the establishment of a government agency empowered to make loans to banks and businesses in critical sectors of the US economy. Modeled after the War Finance Corporation , a government corporation that financially supported industries critical to the war effort during World War I, its purpose would be to stimulate economic growth in

704-494: The Hoover administration to restore public confidence in the economy and banking to their pre- Depression levels, the RFC provided financial support to state and local governments, recapitalized banks to prevent bank failures and stimulate lending, and made loans to railroads, mortgage associations, and other large businesses. The Roosevelt administration 's New Deal reforms expanded

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768-894: The Lend-Lease Act and general counsel of the Foreign Economic Administration , joined as well. Lauchlin Currie , formerly of the Federal Reserve Board staff, was the deputy administrator to Leo Crowley . The RFC established eight new corporations and purchased an existing corporation. Its eight wartime subsidiaries were the Metals Reserve Company, Rubber Reserve Company , Defense Plant Corporation , Defense Supplies Corporation, War Damage Corporation, US Commercial Company, Rubber Development Corporation, and Petroleum Reserve Corporation. These corporations helped fund

832-537: The National Register of Historic Places . The Lustron Houses of Jermain Street Historic District is a notable grouping and historic district in New York state. Reconstruction Finance Corporation The Reconstruction Finance Corporation ( RFC ) was an independent agency of the United States federal government that served as a lender of last resort to US banks and businesses. Established in 1932 by

896-535: The " Thor " brand combination washing machine/dish washer, and in cold regions, the ceiling's radiant heat systems were often replaced. Demolition continues to threaten Lustrons where rising property values attract buyers who desire larger homes of newer construction. Other major threats to Lustron homes' integrity include: severe weather (tornadoes, hurricanes), vehicular or other impact, and lack of local zoning/preservation/aesthetic legislation. Many Lustron houses remain, some as individual or contributing properties to

960-566: The Federal Reserve, the RFC would loan to banks, but it was designed to serve state-chartered banks and small banks in rural areas that were not part of the Federal Reserve System. Another distinction was that the RFC could make loans on the basis of collateral that the Federal Reserve and other lenders would not accept. The related Banking Act of 1932 , signed on February 27, broadened the Federal Reserve's lending powers, and gave it

1024-649: The Lustron factory building, the Dodge Chicago Aircraft Engine Plant in Illinois, was actually granted to Tucker to build his automobiles). The largest assembly of Lustrons in one geographic location was in Quantico, Virginia , where 60 were installed at the U.S. Marine Corps military base . All Westchester Deluxe models, they came in all four colors. Major remodels in the 1980s resulted in some of them being painted pink and lime green. In January 2006, it

1088-461: The Lustron home would create a "new and richer experience for the entire family," where "Mother...has far more hours," the "youngsters...have fewer worries," and there would be "far more leisure for Dad." How this would be accomplished with just a choice of housing was not clarified, although presumably, it was through enameled-steel design that would not need painting. The Lustron design was created to adapt it to mass production. A steel framing system

1152-610: The Newport use a forced-air system. Among noteworthy Lustron exterior features are the siding consisting of square segments of material, followed by a zig-zag downspout trellis on the buildings' front and rear corners. In the two-bedroom Westchester models, the downspout attaches via the trellis to a pillar that supports the open porch. Rust has often led to removal of the trellis by owners. The Lustron Corporation declared bankruptcy in 1950, despite it being an extremely well funded, well-publicized, government-supported enterprise manufacturing

1216-560: The RFC authorized over US$ 2 billion of loans and investments each year, with a peak of over US$ 6 billion authorized in 1943. The magnitude of RFC lending had increased substantially during the war. The Petroleum Reserves Corporation was transferred to the Office of Economic Warfare , which was consolidated into the Foreign Economic Administration , which was transferred to the Reconstruction Finance Corporation and changed to

1280-563: The RFC from 1932 through 1941 was US$ 9.465 billion. Chairmen of the Board of Directors Administrators and Deputy Administrators The first RFC president was the former US Vice President Charles Dawes . He soon resigned to attend to his bank in Chicago , which was in danger of failing, and President Herbert Hoover appointed Atlee Pomerene of Ohio to head the agency in July 1932. The presidency of

1344-405: The RFC thus switched from a Republican to a Democrat . Hoover's reasons for reorganizing the RFC included: the broken health and resignations of Eugene Meyer , Paul Bestor, and Charles Dawes; the failure of banks to perform their duties to their clientele or to aid American industry; the country's general lack of confidence in the current board; and Hoover's inability to find any other man who had

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1408-536: The RFC to create its own mortgage company to sell and insure mortgages. The Federal National Mortgage Association (also known as Fannie Mae) was established and funded by the RFC. It later became a private corporation. An Export–Import Bank was also created to encourage trade with the Soviet Union . Another bank was established to fund trade with all other foreign nations a month later. They eventually merged and make loans available to exports. Roosevelt wanted to reduce

1472-464: The RFC were no longer in demand. During the late 1940s RFC made a large loan to Northwest Orient Airlines earmarked for the purchase of ten Boeing Stratocruiser airliners. The loan became controversial, seen as a political favor to the Boeing Corporation, who supported the re-election campaign of President Harry S. Truman , and sparked a congressional inquiry. President Dwight D. Eisenhower

1536-442: The RFC's efforts, though in 1932, monetary conditions improved because the RFC slowed the decline in the nation's money supply. The original legislation establishing the RFC did not limit it to lending to financial institutions; it was also authorized to provide loans for railroad construction and crop lands. An amendment passed in July 1932 allowed the RFC to provide loans to state and municipal governments. The purpose of these loans

1600-687: The United States and restore public confidence in banking and the economy. It would replace the National Credit Corporation , an agency created in 1931 to restore the liquidity of banks on the brink of failure with loans funded by the interbank lending market . On January 22, 1932, the Reconstruction Finance Corporation Act was signed into law by President Herbert Hoover after being passed by Congress with broad bipartisan support. The Reconstruction Finance Corporation (RFC) began its operations on February2, 1932. Like

1664-647: The War Assets Corporation, and the War Assets Administration (the disposal function of the RFC was transferred to WAC on January 15, 1946, and to the WAA in March 1946) processed approximately 61,600 remaining World War II aircraft, Some 34,700 “utility“ type were sold for primarily commercial purposes, and 26,900 primarily combat types auctioned for scrapping. Most of the transports and trainers could be used in

1728-565: The War Assets Corporation. The War Assets Corporation was dissolved after March 25, 1946. Most lending to wartime subsidiaries ended in 1945, and all such lending ended in 1948. After the war, the Reconstruction Finance Corporation established five large storage, sales, and scrapping centers for Army Air Forces aircraft at the Albuquerque AAF , New Mexico ; Altus AAF , Oklahoma ; Kingman AAF , Arizona ; Ontario Army Air Field , California ; and Walnut Ridge AAF , Arkansas . Estimates of

1792-503: The War Damage Corporation provided for such insurance without compensation, but by express Congressional enactment Congress added §5(g) to the Reconstruction Finance Corporation Act, 15 USCA §606(b)(2) requiring that on and after July 1, 1942, the War Damage Corporation should issue insurance policies upon the payment of annual premiums. Under the terms of War Damage Corporation's charter an authorized capital stock of US$ 100,000,000

1856-401: The Westchester Deluxe models were asphalt tile, but in other models (Westchester Standard, Newport, and Meadowbrook), floors were installed as a “builder's option.” In most models, the homes were heated with an oil burning furnace that directed hot air into an enclosed space above the metal ceilings. The walls contained a one-inch blanket of fiberglass wool insulation. Later production models of

1920-547: The ability and was both nationally respected and available. Like the Federal Reserve, the RFC tended to bail out the banks that benefited the public the most. Butkiewicz (1995) shows that the RFC initially succeeded in reducing bank failures, but the publication of the names of loan recipients beginning in August 1932 (at the demand of Congress) significantly reduced its effectiveness, because it appeared that political considerations had motivated certain loans. Partisan politics hindered

1984-399: The agency made positive contributions and established a federal agency in local communities which provided a reservoir of experienced personnel to implement expanding New Deal programs. Roosevelt saw this corporation as an advantage to the national government. The RFC could finance projects without Congress approving them and the loans would not be included in budget expenditures. Soon the RFC

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2048-466: The agency, and Jones turned the RFC into an empire with loans made in every state. Under the New Deal, the powers of the RFC were greatly expanded. The agency now purchased bank stock and extended loans for agriculture, housing, exports, businesses, governments, and disaster relief. Roosevelt soon directed the RFC to buy gold to change its market price. The original legislation did not call for identities of

2112-474: The agency, enabling it to direct disaster relief funds and provide loans for agriculture, exports, and housing. The RFC closed in 1957 when prosperity had been restored and for-profit private financial institutions could handle its mission. In total, the RFC gave US$ 2 billion in aid to state and local governments and made many loans, nearly all of which were repaid. In 1931, amidst the high rates of bank failure , deflation , and unemployment that characterized

2176-472: The approval of the President of the United States pursuant to §5(d) of the Reconstruction Finance Corporation Act or 1932, 15 USCA §606(b) for the purpose of providing insurance covering damage to property of American nationals not otherwise available from private insurers arising from "enemy attack including by the military, naval of air forces of the United States in resisting enemy attack". Prior to July 1, 1942,

2240-438: The banks receiving loans nor of any reports to Congress. This, however, was changed in July 1932 to make the RFC transparent. Bankers soon were hesitant to ask the RFC for a loan since depositers would become aware and begin to consider the possibility of their bank failing causing them to withdraw their deposits, a practice called bank running . The RFC also had a division that gave the states loans for emergency relief needs. In

2304-481: The base are on the National Register of Historic Places , and are currently used as maintenance buildings. About 1,500 Lustron homes are still in existence in 36 states. Many have been modified with additions, remodeled kitchens, vinyl windows, composite roofs, new heating systems, sheet rock interior walls, painted exteriors, and siding. Some have been dismantled, relocated and reassembled. A restored Westchester Deluxe (sans ceiling and roof) from Arlington, Virginia,

2368-406: The civil fleet, with trainers disposed of for US$ 875 to US$ 2,400. The fighters and bombers were of little peacetime value, with a smattering being sold for conversions to useful civilian purposes like aerial firefighting (a mere handful survived such second careers to be preserved as warbirds preservation and exhibits in aviation museums ). After World War II ended, the type of loans provided by

2432-549: The development of synthetic rubber , the construction and operation of a tin smelter, and the establishment of abaca ( Manila hemp ) plantations in Central America . Both natural rubber and abaca (used to produce rope products) had been produced primarily in South Asia , which came under Japanese control during the war. The RFC's programs encouraged the development of alternative sources of these materials. Synthetic rubber, which

2496-488: The dining area and bedrooms. For Westchester Deluxe three-bedroom models, tripartite windows were found in the dining area and two of the bedrooms, as well as the living room bay. Though the Westchester Standard line had no bay windows, it had tripartite windows in the same rooms as the Westchester Deluxe two-bedroom model. Newport two- and three-bedroom models, which had no bay windows, offered tripartite windows in

2560-474: The dining/living room area. A model of the Meadowbrook home shows that the design would have provided two tripartite windows, both in the dining/living room area, similar to those in the Newport line. The roof likewise consisted of porcelain-enameled steel tiles, which were installed shingle-style. The front and rear doors featured a single light of translucent, rippled glass. As seen in the chart above, floors in

2624-550: The domestic demand for steel exceeded production and the federal government exercised control over its allocation. Strandlund had orders for his porcelain-enameled panels for use in construction for new gas stations for Standard Oil . He made a request for allocation of steel but was denied. However, he was advised by Wilson W. Wyatt , Housing Expediter during the Truman administration, that steel would be available if Strandlund produced steel houses instead of gas stations. Wyatt endorsed

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2688-426: The engineering of the Lustron homes. The Lustron factory had approximately eight miles of automated conveyor lines and included 11 enameling furnaces, each of which was more than 180 feet long. The plant equipment included presses for tubs and sinks. The bathtub press could stamp a tub in one draw and could produce 1000 tubs a day at capacity. Specially designed trailer trucks were used as the final assembling point where

2752-528: The exception of the Esquire (which had been the prototype's name) each Lustron type was available as either a two- or three-bedroom model. Prefabricated housing had existed before the Lustron home came on the market. However, it was Lustron's promises of assembly-line efficiency and modular construction that set it apart from its competitors. The homes were designed by Morris Beckman of Chicago firm Beckman and Blass and may have been loosely based on designs for

2816-480: The gold value of the US dollar. In order to accomplish this, the RFC purchased large amounts of gold until a price floor was set. The RFC's powers, which had grown even before World War II began, further expanded during the war. President Roosevelt merged the RFC and the Federal Deposit Insurance Corporation (FDIC), which was one of the landmarks of the New Deal. Oscar Cox, a primary author of

2880-400: The house was assembled piece-by-piece from a special Lustron Corporation delivery truck. The assembly team, who worked for the local Lustron builder-dealer, followed a special manual from Lustron and were supposed to complete a house in 360 man-hours. The Ohio History Connection recognizes four exterior colors: "Surf Blue," "Dove Gray," "Maize Yellow," and "Desert Tan." Reported in error over

2944-439: The idea but was unable to convince Congressional members to appropriate funds for Strandlund. In turn, Wyatt resigned his post, but other influential members of Congress were successful in getting support to finance the production of Lustron homes. Through the government agency, Reconstruction Finance Corporation (RFC), Strandlund ultimately received over $ 37 million in loans plus a leased war surplus plant in Columbus, Ohio . This

3008-439: The long run. A main reason for such loans was to ensure that depositors got their money back. The Reconstruction Finance Corporation spent US$ 1.5 billion in 1932, US$ 1.8 billion in 1933, and US$ 1.8 billion in 1934 before dropping to about US$ 350 million a year. In August 1939, on the eve of World War II, it greatly expanded to build munitions factories. In 1941, it disbursed US$ 1.8 billion. The total loaned or otherwise disbursed by

3072-410: The manufactured parts came off the assembly line. There were approximately 3300 individual parts in a complete house loaded on a single trailer. The trucks then delivered the house package to the building site. Lustron established builder-dealers, which in turn sold and erected the house package on a concrete foundation. In 20 months of production and sales, Lustron lost money on each house, and in turn,

3136-404: The number of surplus airplanes ran as high as 150,000. By the summer of 1945, at least 30 sales-storage depots and 23 sales centers were in operation. In November 1945, it was estimated that a total of 117,210 aircraft would be transferred as surplus. Many thousands ended up sold or gifted by the US military to the air forces of friendly allies around the globe. Between 1945 and June 1947, the RFC,

3200-411: The power to make national policy to mitigate the problems with the economy. Eugene Meyer , who had pushed for both pieces of legislation, after heading up an organization similar to the RFC during World War I , was a governor of the Federal Reserve, and chairman of the Board of the RFC. Essentially, the RFC was the "discount lending" arm of the Federal Reserve. The initial funding for the RFC came from

3264-572: The sale of US$ 500 million worth of stocks and bonds to the United States Treasury . To obtain more capital, it sold US$ 1.5 billion in bonds to the Treasury, which then sold them to the general public. In its first couple of years, the RFC needed a loan of US$ 51.3 billion from the Treasury and US$ 3.1 billion from the public. The RFC lent to solvent institutions that could not be sold to repay their existing liabilities but would be able to do so in

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3328-464: The tin and abaca programs were handled by General Services Administration . The Commodity Credit Corporation , which was created to help farmers, remained in operation. Another establishment kept in operation is the Export–Import Bank, which encourages exports. In 1991, Rep. Jamie L. Whitten (Democrat of Mississippi) introduced a bill to reestablish the RFC, but it did not receive a hearing by

3392-465: The years is that Blue-Green, Green, Pink, and White were available. Window surrounds were primarily ivory-colored, although early models used yellow trim on "Surf Blue" models. The interiors were designed with an eye toward the modern age, space-saving, and ease of cleaning. All Lustrons had metal-paneled interior walls that were most often gray. To maximize space, all interior rooms and closets featured pocket doors . All models featured metal cabinetry,

3456-496: Was able to buy bank preferred stock with the Emergency Banking Act of 1933. Buying stock would serve as collateral when banks needed loans. This, however, was somewhat controversial because if the RFC was a shareholder than it could interfere with salaries and bank management. The Federal Deposit Insurance Corporation (FDIC) was later created to help decrease bank failures and insure bank deposits. The second main assistance

3520-557: Was announced that the homes, which had grown "too small for most families," would be eliminated from base housing and would be given away. Fifty-eight of Quantico's Lustrons were offered for free (with an application and $ 8,000 deposit) in 2006, yet only one individual came forward and acquired a home, which was disassembled and moved to storage in Delaware. Twenty-three of Quantico's Lustrons were demolished in 2006, and an additional thirty-four homes were razed in 2007. The two remaining homes at

3584-476: Was devised consisting of vertical steel studs and roof-ceiling trusses to which all interior and exterior panels were attached. The concept of prefabricated housing was well established by firms such as The Aladdin Company , Gordon-Van Tine Company , Montgomery Ward , and Sears in the early 1900s. These companies, however, used conventional balloon-framing techniques and materials in their kits. After World War II,

3648-482: Was in office when legislation terminated the RFC. It was "abolished as an independent agency by act of Congress (1953) and was transferred to the Department of the Treasury to wind up its affairs, effective June 1954. It was totally disbanded in 1957." The Small Business Administration was established to provide loans to small business, and training programs were created. Several federal agencies took over RFC assets, and

3712-484: Was not able to repay the RFC loan. RFC foreclosed on Lustron and production stopped on June 6, 1950. On the Lustron order book were contracts for more than 8000 housing units, which were never shipped. Arguably the most popular of the Lustron homes was the two bedroom, 1,021 square feet (94.9 m) "Westchester Deluxe" model. In total, there were three "models" of Lustrons: the Westchester, Newport, and Meadowbrook. With

3776-473: Was not produced in the United States prior to the war, quickly became the primary source of rubber in the postwar years. The War Insurance Corporation was established December 13, 1941 by Act of June 10, 1941 (55 Stat. 249), was renamed the War Damage Corporation by Act of March 27, 1942 (56 Stat. 175), and its charter filed March 31, 1942. It had been created by the Federal Loan Administrator with

3840-624: Was provided, all of which was subscribed for by the Reconstruction Finance Corporation. The corporation was transferred from the Federal Loan Agency to the Department of Commerce by Executive Order #9071 of February 24, 1942, returned to the Federal Loan Agency by Act of February 24, 1945 (59 Stat. 5), and abolished by Act of June 30, 1947 (61 Stat. 202) with its functions assumed by Reconstruction Finance Corporation. The powers of War Damage Corporation, except for purposes of liquidation, terminated as of January 22, 1947. From 1941 through 1945,

3904-714: Was reassembled inside the Ohio History Connection in Columbus, Ohio, in 2013. It had been partially assembled (no bedrooms) for a few months in the Museum of Modern Art (MoMA) in Manhattan. The house continues to be on display in Columbus through 2024 at least. A small group of Lustron owners are preserving the original condition of their homes and are urging others to do the same, and a significant number of entirely original Lustron homes exist. Over time, Lustron owners often removed

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3968-453: Was the first venture capital loan made by the federal government. Initially, Strandlund was provided the availability of a war surplus plant in Chicago. However, due to the political intrigue in government, Preston Tucker , who proposed to produce a radical new automobile, acquired the plant. In turn, Tucker shortly failed in his business operation. The political ramifications are as fascinating as

4032-530: Was to farmers and their crop lands. The Commodity Credit Corporation was established to provide assistance. The agriculture was hit hard with a drought and machinery like the tractor. One benefit it provided to these rural cities was the Electric Home and Farm Authority, which provided electricity and gas and assistance in buying appliances to use these services. The mortgage company was affected as well since families were not able to make their payments. This led

4096-458: Was to finance projects like dams and bridges, and the money would be repaid by charging fees to use these structures. To help with unemployment, a relief program was created that would be repaid by tax receipts. The Presidency of Franklin D. Roosevelt increased the RFC's funding, streamlined the bureaucracy, and used it to help restore business prosperity, especially in banking and railroads. Roosevelt appointed Texas banker Jesse H. Jones to lead

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