Dempsey Asks $1 Million Aid for Railroad

Governor Proposes New State Funds for Bankrupt Carrier LINKED TO PACT Money Would Hinge on Assembly Approval of Tri-State Commission

HARTFORD, May 7 — (AP) Gov. John N. Dempsey announced today that he would submit legislation to the General Assembly that would make $1 million dollars available in state aid to the New Haven railroad.

The bill drafted by the administration, and to be submitted to legislative leaders today, would supplement the tri-state transportation commission compact now pending in the Legislature.

Vote Required

It would permit the state to make the money available only if the compact itself was approved by the Connecticut Legislature.

The tri-state compact bill itself has already been approved by the Democratically-controlled Senate, but it has been referred to committee in the Republican-controlled House.

GOP leaders have declined to act on the bill because they contend that it would not be of immediate assistance to the railroad.

They are also disturbed by the fact that New York state has passed a bill that would take

away “tax relief” granted to the railroad in that state.

State Approval Required

The bill drafted by the administration to supplement the compact bill would be effective

as long as Connecticut approved the compact itself and even if New Jersey does not act on the compact. The state of New York has approved the compact.

If the Connecticut Legislature does not approve the tri-state compact, the administration’s supplement bill would be dead.

The bill to be submitted to the General Assembly today would invoke section two of article four of the compact bill.

An administration statement said that it “would authorize the Connecticut membership of the tri-state transportation commission, acting jointly with remaining members of the commission or separately as an agency of the State of Connecticut, to take whatever action is required, within the dollar amounts made available by the State of Connecticut, other state and local governments and the federal government, to insure continued operation of the New Haven railroad.”

Favors Action Now

The Governor told his press conference that he was proposing the supplemental legislation because he thinks action must be taken now if it is to have any chance of getting through the Legislature this session.

The bill, said the administration statement, would make the tri-state transportation commission compact act self-executing as far as Connecticut is concerned.

The four Connecticut members of the tri-state committee, which is now functioning, would be designated as the Connecticut transportation commission. This commission would be authorized to exercise on behalf of Connecticut all of the duties and powers conferred by the tri-state transportation commission act.

The administration statement said the bill, therefore, accomplishes two things:

* “It provides all the necessary implementing legislation to enable Connecticut to participate fully in the tri-state transportation commission compact if that act becomes law in New Jersey as it has in New York.

* “It provides a full constitutional machinery, with duly delegated powers, for Connecticut to take action on its own should such action become inescapably necessary.”

The present Connecticut members of the Tri-State Transportation committee are Carl Lalumia, executive aide to the Governor, PUC Commissioner Eugene S. Loughlin, Highway Commissioner Howard S. Ives, and Graham R. Treadway, chairman of the State Development Commission.

The Governor’s aides, who helped prepare the legislation, said that most of the money that would be appropriated would be used directly to help the railroad continue its operations.

They said only a fraction of the amount, if any, would be used to defray the administrative costs of operating the tri-state transportation commission itself.

Under the provisions of the compact bill, Connecticut would bear 10 per cent of the administrative costs, and New York and New Jersey, 45 per cent each.

Lalumia said that the tri-state committee already was engaged, for example, in preliminary negotiations for the possible operation of commuter service by both the New Haven and the New York Central railroad with assistance from the states served.