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 i 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 I I Read The Daily Clcassifieds jHair Removed Forever! _ Rpid Shortwave Dial-o-Matic Method. Face-ArmsO--Legs-- Thighs.- Eyebrows and Heir- lines corrected . . . Beards, Chests & backs cleared. Years of exp. Physicians' references. ALK Electrolysis Solon Ann L. K onRE. 357-0373 Near Northland Shopping Cntr. 1 WERE TQ $18.00 SAVE NOW... BULKY-MOHAIR-FUR BLEND STYLES> .;..,,.: SIZES 34 to 40 4 E 11 I