Evening star. [volume] (Washington, D.C.) 1854-1972, 1957-07-29
OK Doubted
This Term for
.Lease-Purc|1ase
Committee Divided
On InstuIIment Plan
For U. S. BUILDING

rcdTS were tOlceQ To-Day on
Capitol Hill that only a small
chance remains for Congress to
act before adjournment on the
leaSe-purchase building pro-
gram under which Government
construction projects here and
over the country could be ac-
quired on the installment basis.
How much chance there is
some say. depends for one thing
on how much longer Congress
will be in session.
For another. it depends on
whether sharply divided opin-
ions among members of the
House Public Works Committee
can be reconciled.
The House committee re-
Gently ordered a favorable re-
port on a drastically revised
measure Under this the lease
purchase program would not be
revived or continued except for
six projects approved for the
National Capital, including sew
eral in the Southwest rede-
velopment area.
This would leave projects
over the country to depend on
direct appropriations. Some
think new authority or direct
appropriations would be needed
even for the Washington prof.
ects If final estimates Of cost
showed big increases in price.
McGregOr Protests
Renewed protest over the way
House Public Works Committee
handled the matter came today
from Representative McGregor,
Republican of Ohio. He par
ticularly mentioned the party
line vote he said was taken in
the committee and protested
that the vote came after a eau
Gus of Democratic committee
men
Mr.. McGregor. who is in
favor of reviving the lease-pur-
chase authority. said he was
tremendously surprised" that
the issue had been made a
party matter. He said he dis
agreed with the thinking Of the
Democratic side because while
there would be a cost for inter-
est and loss of taxes under
lease-purchase Federal build
ing construction. there also
would be costs if they were
erected under direct appropria-
lions.
Direct appropriations are all
right, he said, if the Govern
ment has the money. But he
said that if a big program, in
volving projects in many of
the States were done this way
the Government would have to
sell bonds to raise the necessary
cash.
Report Being Drafted
The report on the House
committee bill now is being
drafted. When it is filed with
the House, the sponsors of the
measure still would have to go
before the Rules Committee be-
fore the measure could be taken
up in the House itself.
A more hopeful attitude,
however, was expressed by Rep
resentative Jones, Democrat Of
Alabama. chairman Of the Pub
lie Building Subcommittee of
the House Public Works Com
mittee.
He said the report would be
filed promptly and expressed
strong belief that the House
Rules Committee would act on
the measure to send it to the
House for action.
Should the House pass a
measure that differed consid-
erably from that approved by
the Senate. the embattled
measure then would have to
survive a conference with the
Senate.
Senate Bill Favored
The attitude Of the General
Services Administration. which
has charge of constructing Gov
eminent buildings. is that the
bill as passed by the Senate
is needed II the lease-purchase
program is to be continued.
I'VE strongly believe that the
Senate version should be en-
acted" said GSA Administrator
Franklin G. Floete.
According to GSA officials.
present congressional approval
Of 98 building projects remain
valid only for the amounts
specified. But. as a practical
matter. the approvals are
worthless. it is held.
The Senate bill provides a
formula permitting GSA TO
raise the ceilings on project
costs by as much as Z per cent
IL construction costs have in
creased by that amount. IL
also provides that projects may
be resubmitted to the Public
Works Committees If a larger
building is needed than origin
ally planned.