Evening star., 1953-02-25
Building Loan
Costs j. Of N.
3 Pct. Interest
High Rote Due to
Failure of Stute to
Guarantee Bonds
By Gene Goodwin
Stor StoH CORRESPONDENT

By Gene Goodwin
Sfor Stoff Correspondent
ANNAPOLIS, Feb. 25.-It's
costing the University of Mary
land an extra 81 million in in
terest rates on a $3.8 million
building project because the
State is not guaranteeing the
bonds.
That was brought out here
yesterday by DR.. H. c. Byrd,
president of the. university.
DR.. Byrd said the university
is paying 3.5 per cent interest
rate on a $3.850.O00 bond issue
floated recently to finance 10
new fraternity and sorority
houses. a student union building
and a physical education build
ing.
The State has been selling it's
bonds at 1.8 per cent interest
rate. If the university had been
able to obtain that rate, interest
on the 30-year self f-liquidating
bonds would have been $33, 900
lower per year. officials esti-
mated.
Ceiling of Is Years.
But the State was unwilling
to back bonds of any longer term
than Is years when the building
project was up for approval in
the 1851 session of the General
Assembly, DR.. Byrd said.
It might have been possible
for the State to purchase the
bonds on a 15-year basis with
the university agreeing to pay
the State back over a longer
period, DR.. Byrd conceded, but
that probably would have endan-
gered approval of the building
project.
The buildings are being paid
for out of a special student fee
of $40 per semester.
Another self -liquidating prof.
ect is now pending, however, and
DR.. Byrd said he hopes some ar
rangement can be made for the
university to take advantage of
the lower State interest rate.
The pending project, now on
Gov. McKeldinS' desk, involves
construction of some new dormi-
tories. he said.
DR.. Byrd and several other
university officials came here to
testify against a bill aimed at
repeating broad "home rule"
powers granted the university
last year. The hearing was be-
fore the House Education Com
mittee.
Lack of Support Cited.
Afterward. Committee Chair
man Perry o. Wilkinson de-
clined comment on chances of
getting the repeater out of COM
mittee, but he cited the lack of
support shown for the bill at the
hearing.
He referred to the fact that
only two of the bills eight spon-
sors appeared to support it.
One of the sponsors, Delegate
Horace P. Whitworth, jr., Repub-
lican, of Allegany said the 1851
home rule" bill, under which
the university is now operating,
allows it to bypass regulations
of the State Purchasing Office,
the State Employment Commits
sion, the Standard Salary Board,
the State merit system, the De-
partment of Public Improve
ments and the State Planning
Commission.
There are now no restraints
on political appointments and
personal favoritism." Mr.. Whit
worth said.
The Delegate also charged that
the university can award con-
tracts without competitive bids,
although DR.. Byrd probably is
not doing it,"
Byrd Opposes Repeal.
DR.. Byrd said the "home rule"
bill has had little effect on the
operation of the university or on
its relationship with State. But
he would not want to see it re-
pealed just the same, he said in
answer to question later.
Charging Mr.. Whitworth with
passing out "misinformation, 4"
the university president said
every penny we have is de-
posted with the State treasury"
The purchasing department is
bypassed only on small pur-
chases. which we can make
more economically" he said.
The university does not have,
and would not want, power to
let contracts without approval
of the Board of Public Works.
he added.
He said the bill merely de-
fined the powers that properly
belong to the university's board
of regents.
Judge William P. Cole. presi-
dent of the regents, also testi-
fed. He cited numerous studies
that had recommended giving
the university the powers
granted to it under the home
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