Evening star. [volume] (Washington, D.C.) 1854-1972, 1957-02-28
Congress Split
On PartyLines
IInLedse-Buying
GO. Would Amene
Program, Democrats
Favor Its Repeal
BY GEORGE BEVERIDGE

BY GEORGE BEvERIDGE
Several members of Congress
split alonG party lines today on
the value Of the Federal lease
purchase programs. Democrats
urged it be killed and Repub-
licans wanted it retained.
In testimony before a House
Public Works Subcommittee
headed by Representative Jones,
Democrat of Alabama:
Democratic witnesses generally
went along with a bill introduced
by Mr.. Jones to repeal the
Ifioundering lease-purchase pro-
gram and replace it with a FIVE
year SIS billion public building
program financed by direct APP
preparations from Congress.
Republicans generally urged
that faults in lease-purchase be
corrected through amendment.
but that the program be re-
tanned as a supplement to Con-
gress' historic formula of con-
struction through appropriation.
Reflects Same Positions
The testimony generally re-
flected the same positions voiced
by Democratic and Republican
members of the Jones subcom-
mittee during three days of
hearings on lease-purchase. The
hearings ended this afternoon.
/ In other testimony, a Budget
Bureau official said the admin
Ilstration wants lease-purchase
Legislation retained. He said the
Budget Bureau would have no
10 lection to construction
Through direct appropriation if
Congress sees fit. but added:
Such authorization should
not be so specific so as to give
the impression that it commits
the Government to a definite
program in both terms of dol
lars and years"
/ LeaSe-purchase is the program
under which the Government
would contract with private in
vestors for building or construc-
ton and pay for the buildings
/ in annual installments over A
long period Of years, like rental
payment. OF about $50 projects
approved by Congress, however,
only two have cleared the pro-
grams obstacles. On February
Is the administration halted the
program. temporarily" and
claimed 1t did so as an anti
imitation move,
Some G. o. p. Attacks
Some Republican witnesses,
who want to retain lease-pur-
chase attacked the administra
tons action and contended that
the widely-scattered projects
would not have any substantial
Iinflationary impact.
i Mr.. Jones contends lease-pur-
I|chase should be killed for two
reasons. One, he said, is that it
j doesn't work. The other he
argues, is that its costs are pro-
lhibitively higher than direct ap-
preparation construction.
/, Representative McGregor OF
Ohio. ranking Republican SUBJ
committee member, said he
doubted Congress would enact
a tremendously expensive pro-
gram to put UP public buildings
in a short period Of time. He
also emphasized that the ex-
istance Of lease-purchase does
not preclude construction of any
needed Government buildings
Through the direct appropriation
method.
Representative Karsten, DEM
ocrat Of Missouri, said he
believed budgetary cuts could
provide enough funds to pay
for some needed construction
Through direct appropriation.
Supporting MIR. Jones APP
Iproach. MIR. Karsten said a ma
jor fault with lease purchase
was that the Government during
the last three years has at
tempted to use 1t as the major
. public construction program. He
. stressed that Congress originally
intended it to be only a supple
. ment to construction through
direct appropriation "a point
made by numerous witnesses
, during the hearing.
. In addition to Mr.. Karsten
: Democrats who generally went
along with abandonment Of
, lease-purchase included Repre-.
/ sentatives Reuss OF Wisconsin
Thompson OF New Jersey anc
Gathings Of Arkansas.
amendments Mentioned
Republican witnesses whC
generally felt the program coulc
! be made workable through
, amendments included Repre-.
Isentatives Byrnes of Wisconsin
ISchwangel Of Iowa. Alger Of
/, Texas. Neal OF West Virgins
, and Avery Of Kansas.
! Possible amendments men.
TONED by Republicans to make
! iease-purchase more workable
included a higher interest rate
) that would increase the return
on private investment, anc
: elimination Of a provision thai
/ the Government would pay loca
property taxes on lease-purchasC
Duildings. Over a 25-year period
. these taxes would cost about
1918 million for the $50 project,
thus far approved, according Il
testimony.
Mr.. Thompson and Mr.. Rues,
also urged amendments to re.
quire the General Services Ad.
ADMINISTRATION to get assistanc,
from the Fine Arts Commission
TO improve design and architec.