PAGE SIX
THE MICHIGAN DAILY
FRIDAY, 'SEPTE ES 3,'1965*..
RAGE SIX THE MIChIGAN DAILY FRIDAY. SEPTEMBES 3. 19fi5'
- -- - , "-. - -I.- -, --
.,
Major
Railroad
Mergers
Americans Alter Habits
Of Spending, Hoarding,
Confronted by ICC Delay
I
By JACK LEFLER
Associated Press Business News Writer
NEW YORK (M) A long, rough
road lies ahead for the latest pro-
posed sweeping railroad merger.
Chesapeake & Ohio and Norfolk
& Western Railroads have an-
nounced that their directors have
approved a merger.
They offered to include five oth-
er smaller railroads, Erie Lacka-
wanna, Boston & Maine, Read-
Qig, and Central of" New Jersey,
all of which operate ailing com-
muter lines, and Delaware & Hud-
§on, a profitable operation.
Largest System}
Such a combination would ,pro-
duce the largest railroad system
in the United States in the terms
of mileage and revenues. -
Walter J. Tuohy, president of
the C & O, and Herman H. Pevler,
president of the N & W, said they
expected apprdval of the merger
proposal by the Interstate Com-
merce' Commissioni within two
years.
Past history of ICC considera-
tion of merger proposals makes
this timetable seem unduly short,
Proposed Merger
The ICC has been considering
the proposed merger of the New
York Central and Pennsylvania
Railroads for three years. A com-
muission examiner has recommend-
ed approval but final, action isn't,
expected until next year.
The complexities of a seven-
railroad combination make it like-
ly that proceedings might drag on
longer than those involving then
Central and the Pennsylvania.
The opinions of shippers',- un-
ions. communities along the routes,
directors and stockholders will
liave to be heard.
The merger proposed by the
C & O and the N & W would par-
allel in size that of the Central
and Pennsylvania and would re-
sult in the eastern section of the
country being served by two huge
systems.
The C & O and N & W plan
made no mention of the bankrupt
New Haven Railroad - a line no-
body wants. The Central and the
Pennsylvania have offered to take
over the New Haven's freight serv-
ice. They are willing to operate
its money-losing commuter serv-
ice under public financing.
C & O stock jumped $5 a share
to $75 and N & W slumped $4.25 to
$125.50 on the New York Stock
Exchange Wednesday.
Unavailable
Officials of the smaller rail-
roads were generally unavailable
for comment. Daniel A. Benson,
president of the Boston & Maine,
was believed to have come o New
York to talk with officials of the
Delaware & Hudson and the Erie
Lackawanna.
Benson said he had not had'
time to studI the ,merger proposal
but added that "the establishment
of two strong trunk lane systems
serving. New England would bene-
fit the economy of the region "
If the merger of the C & O and
the N & W and the five other
lines goes through, it would create
a system that, based on 1964 fig-
ures, would have 26,460 miles of
track, annual gross revenues of
$1.81 billion, and assets of $6.04
billion.
It would result in a system cov-
ering 20 states and two Canadian
provinces.
More competition, better service
and "probably lower rates" are ex-
pected through the merger, the
chief executives said.
Presidents Walter J. Tuohy of
the C & O and Herman H. Pevler
of the N & W said the overriding
reason for the merger proposal
was an expected saving of '$50
million annually, which would
come about between five and ten
years after the union.
If the C & O-N & W merger
comes off it would be comparable
in mileage, gross revenues and to-
tal assets with the Pennsy-Cen-
tral system.
The Pennsy-Central merger has
been recommended by an ICC ex-
aminer and is before the full com-
mission. A decision is expected in
a few months.
By SAM DAWSON
Associated Press News Analyst
NEW YORK (M)-Americans are
changing their spending and sav-
ing patterns because of both th^
rising cost of living and rising
incomes. And more of them now
plan to step up their buying in
the months ahead and are count-
ing on still higher incomes to keep
them solvent.
Another jump in the prices of
goods and services tells where
much of the money is going. At
the same time, more than a mil-
lion workers will get a pay boost
because of this to help them meet
their bills. Still others are enjoy-
ing increased hourly wages this
year thanks to new labor con-
tracts.
But much of the gain in spend-
ing which has sent retail sales up
this year apparently is traceable
to less ,saving on the part of con-
sumers than the government pre-
viously thought. Revised official
figures show that about $8 billion'
a year, previously listed as saved,
really has been spent instead.
Cost Jump
The cost of living jump in July
would have been even higher ex-
cept for the cut in federal excise
taxes last month. The Bureau of
Labor Statistics reports that this
held the July rise in its consumer
price index to one-tenth of one
per cent instead of three-tenths
on a. pre-tax-cut basis. Even so,
set this benefit for many ,hop-
per's,
Rising living costs~ the Vi-t Nam
war, and uncertainties about the
domestic economy atvarently have
had little effect on consumer con-
fidence. The Cens'zs Bureau re-
ports that a survey of faTnily
spending plans show more eon-
sumers were planning in July to
buy autos and houses in the nox
12 months than an April. survey
turney up. And more families said
they thought a yea: hence their
incomes would be higher than ow.
Revised methods of collecting
and reporting .spending and sav-
ing data are changing old con-
cepts of how American families
managed their incomes. The old
way reported that in the past four
years an average of 7.25 per cent
of after-tax personal incone was
saved in one form or another. The
new data chops this average to 5.3
per cent. The difference works
out to about $8 biblion of the rec-
ord $530 billion amual pe.sonal
income.
The patterns ^ spendiLg also
have been changin. Right after
World War II Americans v"ere put-
ting 57 per cent of their -outlays
into soft goods - clothing, food.
gasoline and the like. This has
dropped to around 45 per cent.
Outlays for services-rent, trans-
portation, medical care, etc.-rose
from 31.6 per cent in 1946 to 40
per cent in 1960. But since then
it has leveled off. The durables-
autos, appliances and so on -
average a fairly steady 15 per cent.
Now apparently consumers are
just spending a little more, but
in the same proportion, for all
of these things. There has been a
noticeably upgrading in the qual-
ity-and cost-of goods and serv-
ices brought.
The percentage of incomes sav-
ed may be less than previously
thought, but personal income to-
tals have risen so high that the
total of savings is a record too.
'V
Associated Press
SCHWEITZER NEARS DEATH
DR. ALBERT SCHWEITZER, world-famed missionary doctor, is
gravely ill in his jungle hospital at Lambarene, Gabon. He was
stricken by fatigue Sunday and has not left his bed since. A
member of his staff said, "He is ill, very ill. We are all praying."
DOMINICAN REPUBLIC:
Godoy Faces Chaos,
OAS on Standby
LABOR PARTY CONFERENCE:
Trouble Ahead for Wilson Government
1
LONDON (R)-The Labor party
last night published the agenda
for its annual conference at Black-
pool Sept. 27-Oct. 1 and it prom-
ised trouble for Prime Minister
Harold Wilson's government.
A rebellious segment of the par-
ty slipped into the program reso-
lutions raising the subject of im-
Sylvia Sch oolf
9i Sylvia Homer, L.I.S.T. D
tion controls. This was a di- jority of only two votes in the
attack on Wilson's recently House of Commons needs solidar-
.nced policy of restricting the ity to stay in power.
of Commonwealth citizens- Key Proposal
y colored - to the United The immigration issue was in-
1m. jected in a key proposal, calling
move is certain to provoke on the party, and thus the gov-
d debate, at a time when the ernment, to "remember its first
e government with its ma- principles, particularly in regard
-----____to the brotherhood of mankind."
A corollary has been offered,
3 calling on the conference to "con-
demn the policy of the Labor gov-
ernment in implementing the
Tory immigration law and its im-
position of stricter immigration
controls which are completely ded-
icated to the private interests of
the nation and inimical to the
brotherhood of man."
population of only 54 million.
The Africans, West Indians, In-
dians and Pakistanis jelled into a
built-in political issue and re-
sulting conflict between those ded-
icated to the time-honored British
view toward "haven" for. all and
those protesting-about job compel
tition, the fear of slums, and the
inevitable concern over possible
race riots.
Outcome of the debate in the
party conclave undoubtedly will
influence the course the govern-
ment follows in whatever legisla-
tion is introduced when the House
of Commons reconvenes in Octo-
ber.
Immigrant Flow
The flow of immigrants now
averages 50,000 a year. At that
rate there would be three million
colored citizens in Britain by the
end of the century.
The agenda for the conference
also contains resolutions on fav-
orite Labor subjects such as hous-
ing, medical care, and pensions
but these are unlikely to arouse
much heat.
On foreign affairs, the debate
will center on the U.S. role in Viet
Nam and the use of Common-
wealth nations' troops there.
the index stands at a record high WASHINGTON (W) - Almost of strife and dictotorial rule; and
of 110.2 per cent of the 1957-59 every problem imaginable con- a volatile population which has
average, up 1.8 per cent, rom a fronts the provisional government little experience in democracy and
year ago. which will take office today and feels deep frustrations over gen-
The July increase was enough try to pull the Dominican Re- erations of poverty and misrule.
to bring cost of living pay raises I public from its violence-ridden, Nobody envies Hector Garcia-
of one to three cents an hour for chaos. |Godoy, 44, lawyer, diplomat and
more than a million workers in . But everybody-with the pos- ' businessman, as he undertakes
the auto and auto parts. aerosr'ace, sible exception of the Communists!, what he himself has described as
farm and construction equipment. -is hopeful the new regime will a thankless Job in "this hopeless
metalworking and transit indus- find its way through a inaze of ; situation" now existing.
tries. difficulties. It will have help in Yet he will have assets.
The hourly factory wage in July its formidable task. An inter American military
averaged $2.62. a record high and Among the challenges faced a force will be standing by to try
the average weekly pay $107.68 be<< Communist activity, which has and keep the country at peace.
fore taxes. The average work week b u r g e o n e d to unprecedented The Organization of American
held at 41 hours. heights since the April 24 revo- states which sent a three-nation
Lower Prices lution; plotting by military men mediation team to the country to
The government says about 75 and politicians who have tradi- work out a settlement will be
per cent of the federal excise tax tionally fought among themselves keeping a close eye on develop-
cut has found its way into lower and jeopardized every govern- ments.
prices. But a rise in sales taxes ment; grave economic and social And Uncle Sam is ready to give
in some states and cities has off- problems; hatreds born of years 'nromnt, recognition to the new
offers
CLASSICAL BALLET, C.M.
Dance
4.-
for
PROFESSIONAL-INTERMEDIATE
and BEGINNERS
A third resolution "records its
disgust with the government's ap-
palling acceptance of racialism as
the basis of its policy for dealing
with the problems of Common-
wealth immigration."
Issue Boils
The issue has come to a boil
over the past three months with
realization that unrestricted en-
try for Commonwealth citizens has
poured between 800,000 and a mil-
lion colored people into a total
525 E. Liberty
ORGANIZATION NOTICES
>'
:1:Wssiism~i~s~lisiam:MAliss:#Wimeisgiingamammudi-lmamisaism##.r.m
"t.w. m .^.-r.}9. :{:4:.°it{}22 i":":'4{ i. :f ":: svL " >"o." :" :y., *.
* established 1932 * Phone X668-8066-668-7227
I''
Use of This Column for Announce-
ments is available to officially recog-
nixed and registered student organiza-
tions only. Organizations who are plan-
ning to be active for the fall term
must be registered in the Office of
Student Organizations by Sept. 17, 1965.
Forms are available in Room 1011 SAB.
-Bahai Student Group, ,Public discus-
sion, "Baa Worid Faith: Religion Re-
newed." Sept. 3, 8 p.m., 3545 SAB.
* * *
Baptist Student Union, Student-led
discussion on "The Sermon on, the
Mount," Sept. 3, 7:30 p.m., 1131 Church
St.
* * *
Folk Dance Club, Folk dance with in-
struction, Fri., Sept. 3, 8-11 p.m., Bar-
bour Gym!
* * * a
Graduate Outing Ciub, Hiking and/or
canoeing, Tues., Sept. 7, 7:30 p.m.,
Rackham-Huron St. entrance.
Newman Student Association, Com-
munity Mass, Sun., Sept. 3, 5 p.m., Fire-
side Chat,, 7:30 p.m., 331 Thompson St.
Speaker: Prof. Reidy on "Newman
Apostolate."
Amateur Radio Club, the UM Ama-
teur Radio Club will hold its first
meeting of the year on Wed., Sept.
8 at 7 p.m. in 4511 East Engineering
Bldg. Everyone interested, in amateur
radio, licensed or not, is invited to
attend.
*' * *
University of Michigan Libertarian
League and Young Americans for Free-
dom will hold their organizationai
meetings at 8 p.m., Tues., Sept. 7 in
Room 3D of the Michigan Union.
4 I
il§
l i
§ J'
§§
VAN BOVEN'S
~ §
LADIES' DEPT . §
i§
- §
§7 zh (inp tf6,\i
Van Boven's extend an invitation to come ini
and browse, Our fall sportswear is §
now ready, and we consider it the finest
ever. To acquaint you with the sportswear we
carry we wish to list the following items §
§
TWEED COATS SWEATERS,§
REVERSIBLE COATS SKIRTS $
RAIN COATS SLACKS
CAPES SHORTS t
SHIRTS and BLOUSES
Again we extend a very sincere welcomne §
to the Cain pus and to our store. §
Hourss 9:00 to 5:30, Monday through Saturday
1.
11
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for today's young fashionable ... an understated,
reed-slim shift with vertical tucking. Cherry red
or navy blue acetate and rayon crepe,
5 to 15 sizes $36.00
FALL
SHOW
Sept.17 &18
KJ
..f
I
regime and is preparing to open
his purse for a gigantic program
of economic and 'financial aid to
the country.
In its years of. political discon-
tent, only one n an, Generalissimo
Rafael Leonidas Trujillo, was able
to rule the country for any pro-
tr cted period. After more than
30 years of dictatorship, he was
assassinated May 30, 1961.
Temporary governments ruled
the country until Juan Bosch, poet,
ndvelist, philosopher,. took' office
in February 1963. The. military
overthrew Bosch after less than
seven months, charging his gov-
ernment with ineptitude and with
being soft on Communists.
Donald. Reid Cabral, a success-
ful young businessman, shortly
was called to guide to country
back to peace and stability. But
this took a program of austerity,
and a firmer grip than he had on
the armed forces who had become
the power behind the presidency.
So he in turn was likewise over-
thrown last April.
Latin American diplomats say
this time the Dominican dream of
a free country, with representa-
tive government, liberty and hope
for all its citizens just has to suc-
ceed because it has become a goal
to which the United States and
Latin America are commiitted.
LEARN TO. DANCE
INTERNATIONAL
FOLK DANCES
Every Friday 8:00 to 11:00 p.m.
Barbour Gym (N. University at Fletcher)
OPEN TO EVERYONE
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Read The Daily
Clcassifieds
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