Page 2-Tuesday. October 11, 1977-The Michigan Daily
NA TURAL GAS SHORTAGE
U.S. faces new fuel crisis
WASHINGTON (AP) - The new THE REPORT'S authors said they which went into existence on Oct. 1. plan "appears to seriously over
Department of Energy has seriously were impressed with both the detail The subcommittee report said the mate the government's ability
overestimated its ability to cope with and scope of the emergency energy mere existence of the plan represents increase natural gas supplies
another cold winter and resulting plan, prepared by the Federal Ener- a far higher level of concern than the decrease demand should anot
natural gas shortages, a congres- gy Administration. The FEA's re- federal government has shown pre- cold winter bring about natural
sional report says. sponsibilities have been taken over viously.-curtailments
Federal officials have said they by the new Department of Energy, But at the same time it said the
esti-
to
and
ther
gas
will be able to make up 60 per cent of
expected shortages like those that'
closed schools and factories last
winter.
BUT IN A report released yester-
day, a, Senate subcommittee said
"the federal government will not be
in a position to help very much,"
even though it credited officials with
doing more than ever to deal with
anticipated shortages.
The subcommittee on intergovern-
mental relations based its conclu
sions on three days of hearings in
which officials outlined a Winter
Emergency Energy Plan for 1977-78.
"Another cold winter is on its way
and we are not ready for what it may
bring," said Sen. Edmund Muskie
(D-Maine), the panel's chairman.
Dock strike threatens
New Oreans' economy
NEW ORLEANS (AP) -=The
shutdown of the nation's second-
largest port in a longshoremen's
strike is threatening steer shipments
to the Midwest and grain exports to
foreign countries. But the impact is
greatest on the city of New Orleans
itself.
"Two-thirds of the economy of this
area is related to the waterfront,"
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H.G. Joffray, director of port opera-
tions, said yesterday. "So if you shut
two-thirds of it off, the dollars aren't
coming in.
"PEOPLE START socking that
buck away and keeping it for red
beans and rice," he said.
The strike, part of a work stoppage
that began Oct. 1 at East and Gulf
Coast ports by the International
Longshoremen's Association, is cut-
tingmanhestimated $2 million a day
from the area economy. Unlike
workers elsewhere who are 'refusing
to handle only containerized cargo,
the New Orleans longshoremen are
striking all cargo.
Containerized shipments account
for about 60 per cent'of the cargo at
the Port of New York, but only about
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"YOU'VE NOT only got the long-
shore wages, but you've got the
money that the crews off the ships
spend here," said Edward Reed, port
director. "You've got the bunkers of
.fuel oil, the supplies that the ships
buy. You've got the normal fees that
the ships pay to the port authority.
"You've got the wages of people
involved indirectly, ship chandlers,
freight forwarders, custom house
brokers. You know the whole smear.
They're all static.."
Reed said the bulk of the cargo
coming into the port is destined for
somewhere else, so supply shortages
caused by an extended strike "would
occur all the wayup the Mississippi
Valley."
BECAUSE THE walkout is limited
in other ports, supplies of critical;
goods can be diverted from New
Orleans.
The union's chief concern is job
security. Key areas include demands
for compensation for dockworkers
who are left jobless by the increase in
container shipping, awhich requires
fewer people to load and unload,
vessels since goods are put aboard in:
containers lifted from trucks.
The New Orleans port handles 42
per cent of the natin's grain exports
and is the nation's major port for
steel imports.
25 per cent here,
I
STEVE
MARTIN
IN
CONCERT
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a Miau: nin