Evening star., 1942-09-30
Swift Approval
Seen for Darden
Refunding Plan
Virginia Assembly
Moy Act Today on
! U. S. Bond Purchase
8y the Associated Press.

0y tne ASSOCIATED Press.
RICHMOND, Va, Sept. 30.-Gov
OArden's plan for liquidating the
States $18,550,673 public debt an.
peared headed for quick approval by
the special session of the General
Assembly today, although the
amount Of other proposed legislation
indicated the session might continue
through most of the week.
A Democratic caucus was called
before reconvening of the second
days session to consider nominations
Tor two judgeships; House Roads
subcommittee planned a conference
with the Governor on the question
OF the States assuming part or all
OF the bonded Indebtedness of the
counties, incurred for road building
prior to 1882, and several other i'm
portant pieces of legislation had yet
to go before committees.
Among these was bill by Senator
r. o. Norris of Lively to give the
Governor broad war powers and
place at his disposal virtually every
resource of the State in the wartime
emergency. The bill was referred
to the Committee on Courts of JUS
tlce and was expected to be taken
up sometime during the day.
Committees Act Quickly.
The Senate Finance and House
Appropriations Committees, acting
speedily on the Governors major
recommendations dealing with the
public debt, approved the bills unan-
imously and without change yester-
day afternoon.
This paved the way for possible
enactment today by suspension of
the constitutional readings. In es-
sence, the bills would appropriate
100000 from the States surplus
to the sinking fund to provide
suficient money with which to buy
Federal securities, maturing on the
same dates as the States bonds,
to pay on the principal and interest
OF all the bonds, except highway
certificates of indebtedness which
are provided for in a separate sink
ing fund, and would permit the
State treasurer and the Governor
to invest current funds in the
treasury in Federal bonds and cer-
tiflcates not required for current
expenditure.
Under the Governors plan as
outlined to the joint assembly in
a 12-minute address yesterday,
these changes would enable the
State to obtain from $4,500 900 to
100000 in interest to offset the
$500, 900 in interest which the
State must pay on its Indebtedness
before its ultimate retirment. Gov.
Dartien expressed the belief that
the excess in interest the State
wou1d have to pay over the amount
1t received would not be more than
IN per cent.
Use Has Been a Problem.
The profitable utilization of the
States surplus has been a problem
for some time and the Governors
plan would put this money to work
as well as that in the sinking fund,
which holds securities carried at
s6,247,518.23 plus a 5000, 600 appro-
priation by the 1912 regular session
of the Assembly in excess of actu-
Rrial requirements.
The Senate Finance Committee,
In addition to reporting the Gov
ernor's debt bills, approved amend
ments to another measure to permit
investment of general and sinking
funds of cities. counties and towns
in Federal bonds or certificates of
Indebtedness.
Judge S. Duval Martin of the
Lynchburg Corporation Court and
Judge Brockenbrough Lamb of the
Richmond Chancery Court, ad in
terim appointees of the Governor,
were expected to be renominated
and elected without opposition.
The House Roads Committee
named a subcommittee composed of
Delegates Tate B. Sterrett of Hot
Springs. E. T. Humphries of Nor
folk County and E. T. De Jarnette
of Hanover to confer with the Gov
Oll Iooo dCbu plop0-
sition after vigorous debate which
found proponents of resolution
providing for a study of the question
contending that the State obtained
roads built with county funds and
should therefore assume some OF
the liability. Opponents termed the
proposal an entering wedge to shove
OF on the State a $40, 900 900 debt.
Commission Study Provided.
The conference with the Governor
was approved after the committee
was informed that the executive
was interested in seeing some pro-
vission made for reducing the coun-
ties indebtedness.
The resolution would provide
$4,000 for a study by five-membel
commission with the view to deter.
mining whether the State 'shoulc
assume the payment of any or all
Of the pre-1932 county road in
Siebtedness. Delegate M. M. Long
of Wise estimated the total bonded
Indebtedness incurred by the coun.
ties for roads now amounted te
about $4,000 900, and asserted thai
the roads were taken over by the
State as an asset and the State
should share the liability. Delegate
G. G. Quesenbefy of Waynesboro
opposing the resolution, referred te
Il as an entering wedge" Highway
Commissioner James A. Anderson
also opposed the move.
Approved and sent back to the
House floor for action was the Gov
ernor's bill to permit reduction il
the highway speed limit to IS mile.
an hour, with further authority fol
him to reduce the maximum to 81
miles an hour il deemed advisable
This bill is in line with Federal rec.
concentrations for the conservation
of tires and gasoline. Delegate e
B. Moore of Berryville introduced
the measure.
Altogether, there were II bills of
fered in the House and in tn,
Senate yesterday. Several were 10.
cal measures, offered with the con.
sent of the Governor. or with unani
nous consent. An effort was mad,
as the session opened to limit tn,
agenda by adopting resolution