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May 07, 1964 - Image 3

Resource type:
The Michigan Daily, 1964-05-07

Disclaimer: Computer generated plain text may have errors. Read more about this.





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Associated Press Political Writer
WASHINGTON-Selection of a
Republican presidential nominee
and President Lyndon B. John-
son's November election bid ap-
pear likely to be affected by the
civil rights issue undulating
through Tuesday's primaries.
Politicians summing up the re-
sults today found a strong Indiana
Democratic backlash vote against
the progress of the program. It
was matched by a sweeping en-
dorsement of an ardent Republi-
can civil rights candidate in Ohio.
In Alabama, a segregationist
slate of unpledged presidential

electors supported by Gov. George
C. Wallace won a topheavy victory
of a rival pro-Johnson slate. This
posed a threat to the President's
efforts to hold the state in line
in November.
Negroes Lead
In contrast, in Macon County,
Ala., where school desegregation
has heightened racial tensions,
four Negro candidates led the
Democratic primary ticket for
nominations for county offices.
In Florida, which national party
leaders have predicted will return
to the Democratic column in the
presidential election, Sen. Spes-
sard L. Holland, who has joined in

Fuibright Visits Greece,
Discusses Cyprus Conflict

Associated Press Staff Writer
ATHENS-President Lyndon B.
Johnson yesterday asked Greek,
Premier George Papandreou to
use all his influence for "a just
and honest solution to the prob-
lem of Cyprus.
The President's plea for an ur-
gent settlement of the dispute
whichsthreatens the southeast
flank of NATO was in a letter car-
ried here by Sen. J. W. Fulbright
(D-Ark), chairman of the United
States Senate Foreign Relations
World News
By The Associated Press
making a bid for greater United
Nations voice. It is asking to be
elected to three of seven func-
tional comm1sions of the UN
Economic and Social Council.
As of now, Cuba is a member
only of the statistical commission,
and the economic commission for
Latin America.
WASHINGTON-President Lyn-
:on B. Johnson announced yes-
terday he has ordered Secretary
of Defense Robert S. McNamara
to go to Saigon for a first hand
look at the progress of the war in
South Viet Nam since McNamara's
last visit two months ago.
Johnson told a news conference
that McNamara first would fly
to West Germany on Friday for
talks on cooperative research and
development and other defense
SYDNEY, Australia-A crowd
of about 50 Sydney University
students in a founders day dem-
onstration gathered outside the
United States consulate in Syd-
ney yesterday and chanted "civil
rights now." Some students were
dressed in Ku Klux Klan hoods.
WASHINGTON-President Lyn-
don B. Johnson announced yester-
day he will meet next Monday
with ambassadors assigned here
from Latin American countries to
review the work of the Alliance
for Progress.
Johnson said he has invited the
ambassadors from "each of our
alliance partners" to meet with

Papandreou and Fulbright con-
ferred for three hours Tuesday
night and early yesterday on the
Cyprus question. Fulbright has
seen British Prime Minister Sir
Alec Douglas-Home and fley on
to Ankara late yesterday for talks
with the Turks.
Increased Concern
The premier disa he felt Ful-
bright's visit and Johnson's letter
reflected increased American con-
cern over Cyprus and greater rec-
ognition of the seriousness of the
Fulbright got a complete fill-in
on the Greek views about the Cy-
prus dispute which threatens to
disrupt the North Atlantic Treaty
Organization's southeastern flank.
He told newsmen he had no
Solution of his own and had come
here to listen and learn.
Bitter fighting broke out on Cy-
prus four months ago between,
Greek and Turkish Cypriots. First
a British, and then a United Na-
tions force have been trying to
restore peace between the two
The Greeks, about three-quar-
ters of the Cyprus population,
wanted to end a constitutional sit-
uation which gave the Turks 'a
virtual veto over legislation. The
Turks demanded guarantees for
;heir safety and are now asking
partition of the island into Greek
and Turkish communities.
. The UN appointed Skari Tuo-
rnioja as mediator, but so far he
has been unable to achieve a

the Senate filibuster against the
civil rights bill, won renomination
hands down.
Miami's liberal young mayor,
Robert King High, forged into a
runoff with Mayor Haydon Burns
of Jacksonville, a vigorous op-
ponent of the civil rights measure;
in a contest for the Democratic
nomination for governor.
Goldwater Support
The aspirations of Sen. Barry
Goldwater (R-Ariz) to become the
GOP presidential nominee, were
variously affected by the Indiana
and Ohio results.
Rolling steadily along toward
the goal of 655 convention votes
needed or the nomination, Gold-
water picked up Indiana's 32 with
around 67 per cent of the total
cast for their election. Harold E.
Stassen, who has run elsewhere
for the exercise, summed up the
GOP opposition to the Arizona
senator by capturing nearly 27
per cent of the vote.
Alabama's Gov. Wallace, who
campaigned against the civil rights
bill now pending in the Senate
and in favor of states' rights, got
more than 29 per cent of the
total in a losing contest with
Democratic Gov. Matthew E.
Johnson Backing
The outcome gave Johnson In-
diana's 51 convention votes, since
Welsh was his stand-in. But if
the percentage of Democratic de-
fections represented by Wallace's
vote held into the November cam-
paign, it could make the state look
attractive for a GOP candidate
who was not as far out on the
civil rights issue as Johnson is
likely to be.
Goldwater, who has criticized
some provisions of the House-
passed bill now before the Sen-
ate, got little comfort out of the
Ohio results.
Rep. Robert Taft Jr., who voted
for the civil rights bill in the
House, swept to a landslide vic-
tory over an opponent who voiced
opposition to the measure, Secre-
tary of State Ted W. Brown, in
the Republican senatorial nomina-
tion contest.
Form Delegation
Taft, Gov. James A. Rhodes and
GOP state chairman Ray Bliss
will form the "big three" of a
58-vote Ohio convention delega-
tion favoring Rhodes on the first
ballot but looking around for a
real contender to support.
In the Democratic senatorial
contest, Sen. Stephen M. Young, a
supporter of the civil rights hill.
won renomination.

Railroad Revival
EDITOR'S NOTE: Railroads have The burdens of the $27 billion
figured in one crisis after another industry's enormous debt, stag-
since their fortunes sank to a low
ebb in 1961. Now that a milestone gering passenger deficits, outdated
is at hand in their comeback terminals and yards, backward
struggle, the question arises: Are methods and overstuffed payrolls
the rail lines back on a firm foot-
ing, or if not, where do they stand? threatened to capsize the system.
The following story attempts an Rising Fortunes
answer. When the 1960-61 recession lift-
By ROGER LANE ed, railroad fortunes started rising.
Associated Press Business News writer The government helped with tax
relief, a freer hand in setting com-
NEW YORK-The nation's rail- petitive rates, a kindlier view of
roads pass a milestone today on mergers and occasional White
a comeback trail bristling with House support.
obstacles and crises. The reviving railroads cornered
They hoped a federal court or- lucrative new auto-hauling busi-
der would get them by it without ness, stepped up piggyback load-
any strikes. ings (truck-trailer on flatcar),
The milestone: dropping of a lured back grain tonnage lost to
few thousand locomotive firemen trucks and barges and knocked out
from payrolls, men representing a pipeline threat to the vital coal-
possibly one-half of one per cent carrying business.
of the railroad work force. Tgchnological innovations jack-
Long Battle ed up efficiency, speeded deliver-
It was the first concrete result ies, pared payrolls and shrank
of 41/ years of battling for mod- costs.
ernization of work rules said to Profits rebounded from the 15-
entail $600 million a year. year low in 1961 of $382 million.
Despite many industry gains They jumped to $571 million in
since financial disaster loomed in 1962 and to about $651 million in
1961, a new lease on life remains 1963, but chiefly on the strength
to be won-except for a handful of depreciation and investment
of rich lines. credit tax benefits.
Since the low ebb three years "No doubt we are in a record
ago, railroad revenues, earnings year for the economy and 1963
and freight tonnage have risen. was one by many standards," Ben
Headway has been made on W. Heineman, board chairman of
automating, cost-cutting mergers, the Chicago and Northwestern
tax relief, modernizing the car railway, said.
fleet, rate-making flexibility and Freight Reduction?
in recovery of cargo lost to truck "I shudder to think what hap-
and barge haulers. pens if we run into a 6 or 7 per
"The outlook is brighter but cent reduction in freight when
progress has got to continue," said right now at least three major
Stuart T. Saunders, president of eastern railroads stand on the


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the Pennsylvania Railroad, the
largest, with $2.9 billion in assets.
"So far the steps have been
relatively short ones on the long
journey to modernization and re-
juvenation of the railroad system."
Once transportation.. monarchs,
the railroads after World War II
deteriorated into stodgey goliaths.
"Little David" competitors -
highway, air, water and pipeline
carriers-nibbled away at their
freight business, source of 97 cents
of each income dollar.
Three of four tons of intercity
freight moved by rail in 1930. The
rail share fell to 61.3 per cent in
1940, 56.2 in 1950 and to 42.9 per
cent in 1961.
Meantime, regulatory handcuffs
and government subsidies to high-
way, air and water carriers quick-
ened the slide. So did hide-bound
rail managers who viewed truck-
ing as a fad.
Passengers deserted the rail-
roads as the private automobile
gained in favor.

ragged edge of bankruptcy."
Heineman and others say the
federal tax benefits gild the lily,
giving modest headway since 1961
the appearance of hearty resur-
"In the long run, the future of
railroads is going to depend on
ability to compete with highway
and water carriers. This depends
in turn on congressional willing-
nes to remove the straitjacket on
making competitive freight rates,"
Heineman said.
Commion Market,
Israel, Make Pact
BRUSSELS (P)-The European
Common Market and Israel yes-
terday initialed a three-year trade
agreement allowing Israel export
facilities for 25 products to the
six-member nations.
Israel, under the agreement, will
facilitate imports from the six
nations-France, Italy, West Ger-
many, Holland, Belgium and Lux-

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