Newspapers / Daily Tar Heel (Chapel … / April 28, 1966, edition 1 / Page 4
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THE DAILY TAR HEEL Thursday. April 28. 1966 Page 4 liijijiol In II Mors ICC Approves Penn And High Court Denies NAACP Appeal -urn. -r-r r "H fl T NY Central Jtlai Merger WASHINGTON (AP) The government approved the big gest merger in history today, uniting the Pennslyvania and New York Central railroads. But it rejected another con solidation that would have re sulted in the nation's longest rail system. The 11-man Interstate Com merce Commission unanimous ly agreed the Pennsylvania and New York Central would merge into a single line, ab sorbing all freight and passen- ,ger service of the bankrupt New York, New Haven & . Hartford Railroad. - But by the narrowest of votes 6 to 5 it refused to allow "the Great Northern, Northern Pacific, and Chica go, Burlington & Quincy rail roads to merge, taking over ' two smaller lines, into a 25,-000-mile system linking the Midwest to the Pacific. It was the most significant of the five merge vetoes the ICC has voted in a decade that has seen more than two doz en consolidations approved. ,! And the Northern lines case ' virtually certain to be dis puted in a federal court produced four vehement dis : senting statements accusing the ' ICC majority of flouting the national transportation policy. Arpproving the Penn-Central merger because of what it . termed the financial benefits to railroads, shippers and pub ' lie, the ICC disapproved the j Northern lines merger on the ! ground that any financial ad vantage s would be outweighted by "a drastic lessening of com petition and adverse effect on employes." Simultaneously, the commis sion rejected the New Haven's bid to discontinue all of its 273 passenger tains. It urged Penn - Central to work with state and local au thorities to shore up what the commission regards as a vital service in the New York - New England area. Only 40 N e w Haven trains may be dropped, the ICC said, and the rest mus run through 1966. By the end of the ICC indicated, Penn-Central will have had an opportunity to seek a cure for New Haven's passenger difficulties. When this period expires, the rail road will be free to seek dis continuance again. But t h e ICC said it will take a close look at Peen-Central's efforts to put the service back on its feet in deciding any future case where discontinuance is sought. In New York, the heads of the two merged railroads told a news conference they were pleased with the decision and were confident they could work out the New Haven takeover. Stuart T. Saunders, chair man of the Pennsylvania's board, predicted "far better service freightwise, and some better passengerwise." Alfred E. Perlman, presi dent of New York Central, said railroading is "a growth in dustry," and declared his com pany had stopped the loss of freight business, and turned the curve upward. In New Haven, the trustees of the New Haven Raidlroad said they had always recog nized the need for passenger service, but had asked for its discontinuance because of the line's financial condition. They noted the ICC had stressed the necessity of Penn Central working out the New Haven passenger service terms with public officials. They said the commission appeared to have recognized that it should not have to continue be yound the end of 1966 "unless appropriate aid were forthcom ing." In Albany, N. Y., Gov. Nel son A. Rockefeller said the decision was "a great victory" for the state, adding that it cleared the track for negotia tions on commuter service with a new metropolitan transpor tation agency. The new Penn-Central sys tem, nearly 20,000 miles long, will list assets exceeding $4 billion, a spokesman said, and pirflsl City Planning Majors! Find a complete line of scale building materials: t . , Balsa . Basswood 1 Landscaping Clay and. . Shrubbery at " BILLY ARTHUR EASTGATE will result in savings ac cording to ICC mathematics of $80 million by 1974. "There is no question but that the transaction will permit more economical and efficient use of the applicants' transpor tation facilities," said the ICC report, written by commission er Kenneth H. Tuggle. "The economies realized . . . will rebound in large part to the benefit of shippers, and thus to the general public, ei ther through the improved ser-i-i maHp nnssible or lower rates. For this reason the mer ger has met with the almost unanimous approval, in princi ple, of shippers throughout the nation.'' But without taking in all New Haven operations, the ICC said, "The merger would not be consistent with the pub lic interest" because the Penn Central system would drain away New Haven traffic "and leave that moribund carrier in an irretrievable situation." Endorsing an unprecedented agreement between the two railroads and their labor un ions, the ICC imposed what it termed novel conditions to in sure that nobody loses his job as a result of the merger. Unneeded jobs may be elim inated only when employes re tire or quit, and workers must be transferred within the sys tem as the workload shifts and jobs open elsewhere. The Penn-Central may not reduce its work force unless it can prove a 5 per cent busi ness drop in any 30-day pe riod. The system must also pro tect the interest of three small er Eastern railraods the Erie - Lackawanna, Delaware & Hudson, and Boston & Maine by freezing present traffic patterns and practices wher ever they compete with those three raods. If the three fail in their pend ing bid to be included in the Norfolk & Western system, the ICC said, they will have a year in which to seek inclusion in Pennentral. The new system must repay the thre..smaUer- reads, -when-; ever their annual 'revenues fail below"a "standard based on their 1964 income, the ICC said, with no requirement that Penn Central be proven the cause of the decline. This condition pro duced the only negative vote in the entire Penn-Central de cision, commissioner Howard W. Freas objecting. In turning down the North ern lines merger plan, the ICC majority acknowledged that "The probable savings and benefits that would result from merger are more tangible than those derived from competition between the Northern lines." But it said. "We are convinced that they are not as great." Commissioner Charles A Webb, who prepared the ma jority report, said: "We conclude that the disad vantages of an appropriately conditioned merger a dras tic lessening of competition and adverse effect on carrier employes outweigh the ben efits that might be derived by applicants and the shipping public. "Applicants have failed to show that their posed merger would result in transportation service to the public that is superiot to that which can be provided without merger, or that the benefits . . . outweigh the adverse effects of the mer ger on carrier employes and the benefits that shippers d rive from the competition to be eliminated." The majority said the indi vidual lines are prospering and have withstood competition from other forms of transpor tation. Approval of the merger, it said, would end all competition between the railroads involved at various points that account for 43 per cent of their gross revenues and 34 per cent of their total tonnage. WASHINGTON (AP) thq Supreme Court threw out to day an appeal from a Georgia ruling that the National Asso ciation for the Advancement of Colored People can be held li able for picketing ordered bv its Savannah branch. The 5-4 decision, announced in a nine-word order, was vig orously attacked by Justice William O. Douglas who said it is the kind of judgment that ultimately could destroy t h e NAACP and other "unpopular groups." The direct effect is that Hal dred Overstreet, a white groc er, may collect $85,793.05 in damages from the national or ganizations, i t s Savannah branch and two branch offi cers. The five Justices who. com promised the majoritv, Hugo L. Black, Tom C. Clark, John M. Harlan, Potter Stewart and Byron R. White, did not state their reasons. They simply join ed in this nine-word order re jecting the NAACP appeal: "The writ of certiorari is dismissed as improvidently granted." Chief Justice Earl Warren and Justices William J. Bren nan Jr. and Abe Fortas join ed Douglas in voting to reverse the damage judgment. Weather Forecast Variable cloudiness and littla change in tempera tures Thursday with chance of widely scattered afternoon showers and thundershowers mainly in mountains. Highs 65 to 72 in northeast portion, mostly in . 70s elsewhere ranging to lower 80s south portion. Friday partly cloudy and warm with scattered after non and evening showers and thundershowers. Announcing their d i s e n t from the bench. Douslas said the NAACP s views are "ana- uiema in .some parts of country and under "vau-e Georgia law the held anv- it could be accountable tor almost thing its branch does. "L'npopuiar groups" like the NAACP. he said, "will re ceive crtihing erditts from emotional juries." Continuing on this theme in his written opinion. Douglas said "the rights of polit icaf as sociation are fragile enough without adding the additional threat of destruction bv law suit." To equate the liability of the national organization w'lth that of the branch without proof that the national body "auth orized or ratified the miscon duct in question could ulti mately destroy it," Douglas S3id. and is forbidden by the first amendment to the U. S. Constitution. In New York, Robert L. Carter.' general counsel of the NAACP said: "We are of course very much disappointed with the court's decision . . . we will of course apply for a rehear ing. "We cannot take the view that the majority of the Court by its action today intended in any way to limit the right of pcaceiul protest der the !irst am J "In any event i leci-ion on the int will continue to jeaceful picketing forms of peaceful furtherance of the bcorded un- ndment. lis is nut a nts and we engage in and other protest in civil rights cause." . Pickets were stationed at Overst reefs store in Savan nah in 1962 after a 14 year-old Negro cmplove complained to "hi mother that the grocer had and accused mm oi Mi-um had beaten him. 5R5TUDE EVERY SATURDAY NIGHT 5:00 p.m. to 9:00 p.m. Don't Ford In The CAFE BRIGHT LEAF et SUNDAY FAMILY BUFFET 11:30 o.m.-2:B0 p.m. 5:30-9 p.m. Chitdrtn Yi Pric Also Remdmbtr You Can Park FrM In Our Mddern Garage When You Use Any Ot Th Facilities at Jack. 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Daily Tar Heel (Chapel Hill, N.C.)
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April 28, 1966, edition 1
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