Evening star., 1955-07-21
Second Airport
HereAsked By
Administration
Government Would
Pay Half the Cost
In Authority PIon

The administration proposed
today the construction of Sec
ond airport for the Washington
area by an airport authority
Under the proposal the Govern
ment would put up half the cost
of a new airport and the au-
thority would issue revenue
bonds for the rest.
This new proposal was made
by Louis S. Rothschild, Under
secretary of Commerce for Trans
portation. He testified before a
Senate Interstate Com mer C e
subcommittee.
Mr.. Rothschild said that if the
District and other governmental
units involved set up a local air.
port authority the Commerce
Department is prepared to rec
ommend the following arrange
ment:
/. The Federal Government
would transfer Washington Ma
tional Airport to the new author
ity with the price set at the
deprecated book value of the
Governments investment.
2. The Government would ac-
cept as compensation the author
ity's bonds secured by anticipated
revenues but subordinate to any
bonds later sold to the public.
8. The Government should
provide a Federal grant of SO
per cent of the construction cost
of the new airport.
4. The authority would finance
the balance of the cost through
a public bond issue secured by
first priority on earnings of both
airports.
First Definite Figures
The so per cent Federal aid
figure represents the first def
mite statement by the present
administration as to how far
it would go toward construction
of second airport. Mr., Roth
schild said the Federal aid con-
tributions to large airports
usually have been, but a small
fraction of the total cost.
In many cases, he said, the
Federal share has been under
20 per cent and in some cases
it has been under 10 per cent,
The Federal aid to Baltimore's
Friendship Airport was about 13
per cent.
Senator Magnuson, Democrat
of Washington. chairman Of the
full Commerce Committee, raised
a number Of objections to the
plan presented by Mr.. Roths-
child.
Recalls Directive
He said that Congress had di-
rected the Secretary of Com
merce five years ago to go ahead
and build a second airport for
which the entire cost would be
appropriated. The airport has
not been built and now. he said,
the Commerce Department comes
up with another plan.
"This may be an answer" he
said, "but what bothers me is
that it may be another five years
before something is don." He
said if some steps are not taken
in the next year we're heading
for trouble" at the National Air
port.
Senator Payne, Republican oi
Maine, estimated it might take
five years because of Virginia
laws bearing on the establishing
of an authority jointly with other
States. He said he had run into
that situation couple of years
ago in studying proposals for a
transit authority in this area.
It was assumed that both Vir-
ginia and Maryland would join
with the District in the project
and Senator Magnuson pointed
out that that would require legis-
lation not only by Congress but
by the legislators of the two
States.
Objects to Bond Interest
Senator Magnuson also OBJ
jected to paying interest on the
bonds the authority would issue
Mr. Rothschild said the bond.
probably would bear 3 to 81
per cent interest and would bs
readily saleable. He pointed out
that the National Airport had 9
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