Koch Pleads Before Senate Panel For Backing on Long‐Term Bonds
Mayor Koch pleads for Fed guarantees far long-term bonds to rebuild city's physical assets, testimony before Sen Banking Com; some com members seen preferring short-term loans city has been receiving since '75; Koch stresses city is not asking for 'handout'; holds seasonal loans (short-term) would not enable city to return to public bond mkt and would not enable it to borrow enough money to renovate physical plant; com members Sens William Proxmire, Edward W Brooke, Jacob K Javits, Donald W Riegle Jr, John Heinz 3d comment; Koch, in reply to questions by Javits, stresses city will try to avoid bankruptcy; Sen Daniel Patrick Moynihan, not com member, attends hearing and backs Koch's presentation; Reprs J William Stanton and Richard Kelly testify against any Fed aid for city; prime attention at hearing focuses on contract settlement between city and munic unions; Proxmire and Brooke are critical; Koch stresses role of Emergency Financial Control Bd in curbing settlements that violate city's fiscal plan; Proxmire criticizes bd's membership; Koch defends bd; Koch is accompanied by Comptroller Harrison J Goldin, Council Pres Carol Bellamy and aides; in another development, NYS Legis leaders continue to consider proposals on when bd should lapse into passive status (S)
