The R.F.C. Subsidizes Fred F. French.

Reconstruction Finance Corp. has made its first loan to "a limited-dividend housing corporation for purposes of slum clearance and rehousing low-income groups. The plan deserves careful analysis because it is a perfect illustration of how the housing problem cannot be solved. The development will be located on the site of what is now one of the worst slum blocks on New York City's famous East Side. It has long been known as the "lung block" because of the high incidence of tuberculosis among its inhabitants.