Evening star., 1953-08-16

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chase of a building. The legisla-
ton already has passed the
House and is now pending before
the subcommittee on public
buildings of the Senate Public
Works Committee. Hearings are
to be held on it in January.
If enacted, the legislation
would enable the Government
ultimately to purchase either an
existing building or proposed
new building, the specifications
for which would would be ap-
proved by Federal officials to fit
into their plan.
Under the terms of the con-
tract, the Government would pay
the rent, but part of it would be
applied to amortize the cost o1
the structure.
Rent Exceeded Buildings Value
The legislation would apply to
GSA to cover general purpose
buildings, even those which have
some post Office space. But il
would also empower the Post
master General to handle build
ings solely for use of his depart
ment under the purchase-con-
tract program.
The contract could run up tc
Is years. At the end of the pc
riod, title to the building would
be turned over to the Fedora
Government, which would ther
own the structure.
The Federal Government re.
Gently gave up it's lease of the
Hurley-W Wright building, Eight
eenth street and Pennsylvania
avenue NV. The Government
had occupied that building fol
the last 35 years.
During that time, GSA say
the Government paid in rem
about $2.6 million. Officials es'
innate the building is worth
about 81 million. Accordingly
they say, the taxpayers paid out
in rent far more than the build
ing was worth.
Paid for Twice Over.
OF course the owners, in the
interim, paid-their own persona
income taxes to the Fedora
Government, as well as District
real estate taxes. So the Gov.
ernment did benefit to that ex'
tent also.
But proponents of the lease
purchase legislation use this a:
an example why Congress should
pass the proposed Public Build
ings Purchase Contract Act.
Commissioner of Public Build
ings w. E. Reynolds of GSA put
it this way:
1--WE have two ways of pro-
viding space. One is by the con-
struction of buildings through
direct appropriation of the
Congress. The second is through
the rental Of structures from pri-
vate enterprise. We have felt
that a third vehicle should be
provided under rather erect and
rigid control, which this bill
really contains, where after a
period of years the Government
may own the structures.
There are two classes OF
structures that I personally
have in mind; that is, from my
own experience. We have build
ings here in the District of Co.
lumbia that the Government has
rented for 40, SO and go years
and they paid for them at least
twice, and they are still paying
and will continue to pay fo1
them"
SummerfieId Backs Plan.
Mr.. Reynolds said that he be-
lieves the Government could save
considerable amounts of rent
money over the years, under the
proposed legislation. He said
properties that are not valuable
to the Federal Government could
be disposed Of as down payments
on new structures.
Postmaster General Summer.
field, favoring the legislation anc
urging enactment, pointed Out
there has been no Federal con.
struction of postal space since
1941. He said:
I'm the interest of better leas-
ing and rental economy, it i.
imperatively important that the
Postmaster General be giver
every device, tool, and technique
commonly in present use by pri.
vate business whereby there may
be negotiated the most advan-
tageous' leasehold for the United
States Government"
But there is opposition to the
proposed legislation from those
who fear the Federal Govern
ment will take more property
off the tax rolls.
Except for war construction
and special emergency cases
there has been no major public
building program since before
World War II. Some specia,
purpose buildings have been
erected here in recent years
These are the Pentagon, the new
State Department building, the
General Accounting Office and
the Federal Courthouse.