Evening star., 1955-05-04
Byrd Assai|s
Highway Plan
Sees Move Leading
To U. S. Handouts;
Financing Hit
BY FRANCIS P. DOUGLAS

Virginia today unleashed an
attack on President Eisenhower'S t
highway program and its bond |
issue feature which the Senator |
called "legerdemain" financing.
He described the highway plan |
and other presidential proposals |
as opening up Pandora's boxes |
of Federal handouts.
Senator Byrd addressed a gen.
eral meeting at the Hotel Statler |
on the final day OF the National
Chambers convention. An ear
lier speaker was former President |
Herbert Hoover, who received an
ovation from the audience.
At his news conference today,
President Eisenhower said he
still is standing by his plan for
a $101 billion highway construc-
ton program, and added that !
so far as he knows the Governors
of the States still are standing
by it, too.
Hoover Explains Work
Mr.. Hoover told of the work
of the Hoover Commission which
he carefully identified as the
Commission on Organization of
the Executive Branch of the
Government. He said he would
make a guess that ''if we could
have our own way the budget
could be balanced overnight"
The former President had to
leave Immediately after his talk. |
His farewell line was that he
had noticed Senator Byrd was on
the program and "T may tell
you he is always right"
Senator Byrd's criticisms of
the highway program tied in with
behind-the-scenes discussions of
the program at the Chambers
meeting.
Discusses Tax Structure
The tax structure was dis
cussed by John L. Connolly, of |
st. Paul, secretary and general |
counsel of the Minnesota Mining |
and Manufacturing Co.
Mr.. Connolly said individual |
and corporate income taxes
should be reduced and a general
sales or business tax enacted.
This sales tax, he said, should
replace the discriminatory
selective excise taxes we have
today"
He said it would properly bal
ance the Federal tax system and
provide more stable revenues.
He also urged further relief for
stockholders by increasing the
dividend credit which last years
taA bill provided.
Senator Byrd's criticisms of
the highway program also were
reflected in a report by the
chambers policy committee
which was approved by the di-
rectors. This urged that the
interstate highway system be
financed as at present, with the
Federal Government putting up |
so per cent of the cost and the
States 40 per cent.
Bond Plan Opposed
In addition to thus opposing
the program that the interstate
system be financed 100 per cent |
federally, the proposed policy |
declaration said that money for
highways should come from
general funds. This contrasted
with the administration pro-
gram to finance them with |
bonds for which gasoline and |
other highway users taxes would |
be earmarked.
This and other new proposals |
were to be submitted to the dele
gates at a policy luncheon at
the Mayflower Hotel. !
Under the administration
road proposal" Senator Byrd |
said, "a dummy corporation,
without assets and without in
come, would issue bonds for $21 |
billion, and Washington would |
take control of 10000 miles of |
the best roads in the 48 States |
Excluded From Debt
"By legerdemain this $21 bill
lion in Federal agency bonds !
would be declared as not Fed
eral debt and would be excluded |
from the debt limitation fixed |
by Congress.
"It was proposed to pay the
principal of these bonds and ,
the interest on them with per-
manent indefinite appropria-
tions, which would remove the |
corporation from annual ap-
preparation control by Congress.
Senator Byrd said the road f.
nancing would destroy the coun-
try's fiscal bookkeeping. He con-
tinued:
"These bonds would, of course, |
c. r,xr Anmurn n a o |