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Texas Senators Say No To Auto Industry Bailout

By Bv Matt Laslo, Capitol News Connection

http://stream.publicbroadcasting.net/production/mp3/kera/local-kera-804639.mp3

Dallas, TX –

The economy in Dallas could take a hit if any one of Detroit's Big Three fail. Nearly 140,000 Texans are employed in the automotive industry. Senator Kay Bailey Hutchison was hoping to reach a compromise with Democrats. But she says they were too stubborn because they refused to cut workers pay.

Hutchison: Oh, it was a very tough vote because I felt like we were actually making progress trying to come up with a conclusion that could be successful. But I think the majority leader pulled the plug too soon.

Democrats disagree. They say Republicans' demands were unrealistic. Senator John Cornyn didn't vote last night. But earlier he said the companies need to be restructured, otherwise it is a waste of federal funds.

Cornyn: We try to do everything we can to support a viable domestic car manufacturing business, but not in a way that causes tax payers to throw money down a deep dark hole with no possibility of getting repaid.

At a recent Congressional hearing, the Chairman of GM said that without a federal loan the company could be bankrupt by the end of this year. If that happens, thousands of workers in Dallas may soon be jobless.