Evening star. [volume] (Washington, D.C.) 1854-1972, 1957-02-12
Eight Projects
In D. c. Area
Not Affected
BY HAROLD B. ROGERS

"OAh' 1eOPlVoCAAtoC1NC oOAlCos
Democrat of Alabama, has intro
duced a bill to repeal the laws
with the exception of at least
eight projects in the Washing
ton area and one in Illinois.
Under lease-purchase proceed
ure the Government contracts
with private enterprise for pur-
chase of property and construc-
ton and then pays on the in
Istallment plan with interest up
to Is years.
Instead. the Jones bill reverts
to the previous public building
policy of direct appropriation un-
der basic authority of Congress.
Mr.. Jones. who is chairman of
the House Public Works sub
committee on buildings and
grounds, estimated the Govern.
ment could get twice as much
construction for the same money
under provisions of his bill as it
could under lease purchase pro-
cedure. He hopes to set up pub
lie hearings on his measure as
soon as possible. probably some
time next week.
Object to Delay
Strong objection to delay in
operation of lease-purchase has
been voiced by members of the
Senate Public Works Committee.
A public hearing on this issue
will be held next Tuesday by the
Senate subcommittee headed by
Senator Mcnamara, Democrat of
Michigan.
/ The Jones bill would repeal
two acts in 1854. One of these
would authorize the General
Services Administration to nego-
ltiate and enter into lease-pur-
chase agreements for leasing and
ultimate acquisition of public
buildings.
I Another 1854 las repealed by
the Jones bill would confer
similar authority on the Post
master General with respect to
Post ONCE buildings.
/ Two great savings would be
accomplished by elimination of
the lease-purchase legislation,
Mr.. Jones emphasized. First he
pointed to what he said was ris-
ing interest rates under which
the Government would have to
pay throughout the life of the
contract. These rates. he said.
are going UP to more than five
per cent.
Has to Pay Taxes
In addition. he said. the lease
purchase law forces the Govern
ment to pay taxes to States or
local communities on projects
until the title is transferred to
the Federal Government.
Such taxes alone on the Ma
tion-wide program would amount
to more than S153 million.
The national total of l49
projects recommended by the
Post Office Department and GSA
is estimated to cost S766.9 mil
hon. OF these l49 which have
been officially approved by both
the House and Senate Public
Works Committees only one is
under contract at Rock Island,
Ill. for a post Office and court
house.
The Jones bill would not
affect the project at Rock Island,
Ill, for post Office and court
house structure because it is
already under contract.
Change Emphasized
I In the case of at least eight
lease-purchase proposals APP
proved by both House and Sem
ate Public Works Committees for
the Washington area, Mr.. Jones
said the GSA would be author
lied under his bill to make pur-
chase contract agreements. But
he emphasized there will be one
change in these local building
proposals, The Government
would pay no taxes to local
Jurisdictions, but it would pay
interest.
The Jones bill would authorize
an appropriation of Sis billion
for expenditure over a five-year
period TO carry out the direct
appropriation program. Projects
would have to be approved by
the two committees on public
works and money would have to
be appropriated by Congress.
The eight approved projects
under lease-purchase in this area
Include six Federal Office build
Il ngs designated by numbers from
IS to 10 inclusive. one for the
Geological Survey and a ware
house at Franconia. Va.
Cost Sl73.9 Million
These projects are estimated
to cost a total of S173.9 million.
Details of their location and the
cost Of each were disclosed at
the time they were submitted i'll
the form Of a prospectus to the
Congressional Public Works
Committees.
One other lease purchase Job
approved by the House commit
tee but not yet by the Senate
committee is proposed for the
Weather Bureau and the Coast
and Geodetic Survey at cost
of $500 million.
Representative Jones explained
that one reason for leaving the
approved lease purchase prof.
ects in this area under the 1854
law was his belief that GSA
might be able tc arrange for
financing By some private enter
prise sufficiently large 70 bid
upon all projects at once.
n this couli be done he pre-
uicted that GSA should be able