The Republic

    A standing-room-only turnout to hear Rep. Mike Pence, R-Ind., at Monday's town hall meeting at Donner Center is indicative of the sudden surge of local interest around what is happening in Washington.

    There was good reason for that turnout. More than ever before, events in the nation's capital are affecting communities such as Columbus.

    Based on the size of the stimulus packages that have been enacted and are due to be enacted, that effect will last through many generations.

    Of immediate concern today is the effect the financial meltdown is having on individual communities such as Columbus.

    Pence addressed that situation in a conversation with the editorial board of The Republic, singling out the community's ties with the troubled auto industry.

    While imminent disaster seems to have been delayed for two of the Big Three automakers through a federal infusion of billions (Ford Motor Co. has said it has no immediate need for bailout funds), there has been no appreciable brightening of light at the end of the tunnel. 

    As times grow more difficult, concerns only increase in communities such as Columbus, which are linked to the fortunes of the automakers. 

    Cummins Inc. is especially tied to Chrysler LLC because of engine production for its vehicles. The Walesboro plant is the exclusive manufacturer of diesel engines for the Dodge Ram, and as a result of the company's decline in truck sales, production at Walesboro has been affected. 

    Between the third quarters of 2007 and 2008, shipment of Dodge Ram engines fell 75 percent. The two companies also plan production of a new, light-duty diesel engine at Columbus Engine Plant.
    Pence is among those who believe that continued infusions of federal bailout money for companies such as Chrysler will only prolong the inevitable. 

    He has suggested that a preferable alternative would be a reorganization of the company similar to a Chapter 11 program in which the company and its creditors could negotiate new terms under the auspices of a federally appointed referee. 

    Such a plan would allow the company to emerge with new labor agreements, reduced debts and stronger management systems. At the same time, the federal government would provide guarantees in areas such as warranties so as not to scare vehicle buyers away from dealing with a company in a reorganization mode. 

    While such a plan might not provide the instant gratification so many desire, it would seem to be structured so as to provide a firmer and more lasting recovery. 

    The beneficiaries would not only be Chrysler but the scores of companies that rely on its business and the thousands of workers within those companies who would be able to continue producing its products.

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