YfnV o
til XI! M
n r
S3
Vol. 83, No. 65
o
mm
TTlnT7T
by Gene Carlson
United Press International
WASHINGTON The Justice
Department demanded in court Wednesday
that American Telephone & Telegraph Co.,.
the largest privately owned corporation in
the world, be ordered to break up its giant
communications network.
The biggest antitrust suit ever filed in U .S.
District Court also charged Western Electric
Co. Inc., which manufactures most of
AT&Ts equipment, and Bell. Telephone
Laboratories Inc., with monopoly. -
It accused the three defendants "with
combining and conspiring to monopolize,
attempting to monopolize and
monopolizing the telecommunications
service and equipments market," and asked
the court for "substantial divestiture."
The suit will take at least three years to
come to trial, legal experts estimated, and it
could take much longer than that to exhaust
Servomation gets
Henry's
by Ted Melinite
Ass. News Editor
Union director Howard Henry, who
recommended last spring that Servomation
Mathias Inc. not be allowed to continue
operating UNC's food franchise, has
indicated he. now believes, Servomation's
service has improved "and" they deserve to
stay. . ...
UNC's Food Service Advisory Committee
appeared to be unanimous in agreement
during its meeting Wednesday.
Food service director Robert Greer
expressed confidence in Servomation's
ability to please the UNC community but
said the financial growth characteristic of
Servomation's first four years on campus
may not be continued this year, especially in
the case of Chase Hall.
"On the basis of performance to date I
think Servomation should continue " Henry
stated in a Nov. 14 letter to 'auxiliary
enterprises executive director James Branch.
"The improvement in housekeeping over a
year ago is very much in evidence, and this
has been true throughout the summer as
well.
"The table cleaning has improved in the
same way," Henry said. "1 have received
fewer gripes about food."
Last April, Henry led the Union board of
directors to adopt a resolution which read in
part:
"It has repeatedly come to the attention of
the ... board ... that Servomation Mathias
is... serving poor quality food, preparing
the food inadequately, providing poor
customer service and maintaining an
unattractive dining area . . ."
. Although only five of the 12 food
committee members were present at the
meeting, those present indicated they and
their absent comrades were pleased .with
Servomation's improvements.
"We believe and 1 think I can speak for
the University administration, the vice
chancellor and chancellor for business that
Servomation has met the requirements for
improvements, that their contract should be
renewed and that they should be so
informed," Branch said.
Student committee member Dan Besse
said he knew the views of the absent
members, and they favored renewal.
"By and large, I feel confident in saying
our service has improved and meets students
needs better than ever before," Greer said.
Although the committee appears to be
resolved to recommend renewal of
Servomation's contract, a formal
recommendation will not be made until
Pairadle
Pi Kappa Alpha's "Beat Dook"
parade will be held at 3 p.m. today
starting in front of Carmichsel
Auditorium. Parade Grand
Marshall John Yesulaltis,
Marching Tar Heel Band director,
will lead the parade down
Franklin Street.
v.
cue
off
11
all legal appeals and recourses.
Meanwhile, in New York, AT&T
expressed astonishment at the action and
said it "could lead to fragmentation of
responsibility for the nation's telephone
network."
"If that happens telephone service would
deteriorate and cost much, much more," he
said, expressing confidence the company has
violated no antitrust laws and declaring that
the action "represents an attempt to change
through the courts what has been national
policy for six decades."
'Justice officials declined to predict that
rates would be lowered for telephone users if
the government wins its case, but they said
the public interest would be served in other
ways, such as allowing freer access to various
kinds of telephone equipment by consumers.
Trading of AT&T stock was suspended on
the New York Stock Exchange at 3 p.m. EST
Wednesday until 10 a.m. EST Thursday at
the direction of the Securities and Exchange
January, Branch said. In the meantime, the
committee asks students to register their
opinions on the renewal with the Student
Consumer Action Union (933-8313) or Dan
Besse (933-1567).
Some of the changes required by the
University for Servomation to keep its
con t ract., h a v e appa rpp jly. affected
SefvdfriStfbn's financial "situation " on
campus.
This year for the first time, the number of
students purchasing a mealplan has not
increased. This decrease has probably been
caused by higher mealplan prices made
necessary by the adoption of a dollar
limitation policy and the preparation of
more expensive food, both required by the
University, and rising raw food costs.
Chase Hall, which depends on mealplan
customers for about 90 per cent of its
business, will realize a sizeable deficit, $17
20,000, during the current fiscal year, Greer
estimates.
" Chase has never been a profitable facility.
During its first year on campus 1970,
Servomation's deficit at Chase was about
$40,000, but in the last three years, thanks to '
University-paid renovation, Chase managed
to break.even. .
The Union Snack Bar's cash volume is not
about $3,000 a week less than last year's,
Greer 'said. Most of this difference is being
deposited in the Union's new vending
machines, but since those, machines are
operated by Triangle Coin Caterers,
Servomation's profit has declined.
The Pine Room, however, seems to be
doing better than ever, with an increase of
about $4,000 weekly cash volume over last
year. Greer attributes this increase to
improvements 'in the Pine Room's,
atmosphere.
.
s :
A broken gilded gate lies open to
approval
Chapel HHPs Morning Newspaper
Chapel Hill, North Carolina, Thursday, November 21, 1974
Commission.
The lengthy complaint included charges
that the Bell System had obstructed attempts
by smaller telecommunications firms to
connect with it and had steered equipment
purchases to Western. Electric, AT&Ts
wholly-owned manufacturing subsidiary.
The suit symbolizes a tougher approach
toward anti-competitive and monopolistic
practices by the Ford administration than
was practiced in President Richard M.
Nixon's term. Ford already has asked
Congress to approve stiffer penalties for
anti-trust convictions as part of his 31 -point
economic program.
However, Deputy Assistant Attorney
General Keith Clearwaters denied that the
decision to file the case now had anything to
do with the change of administrations.
AT&T has assets of more than $67 billion
and along with its subsidiaries, supplies
more than 80 per cent of the nation's
telephones. Through its long lines
department, AT&T handles, at least in part,
more than 90 per cent of all interstate
telephone calls in the United States.
The government asked the court to order
AT&T to divest itself of Western Electric,
and further to break up that subsidiary into
two or more competing firms if necessary to
assure competition in the manufacture and
sale of telecommunications equipment."
If Western Electric, with 150,000
employees, assets of about $5 billion and
profits of more than $300 million, were made
an independent company separate from
AT&T it would rank as the 10th largest
corporation in the nation, a company
spokesman said. .'
Western Electric is the main supplier of
equipment to AT&T and its operating
companies. It refuses to sell to competitor
phone companies, although Bell companies
are allowed to buy from other suppliers.
The third defendant, Bell laboratories, is
the nation's largest industriarTeseairch
organization and conducts design and
development projects for the Bell System.
Dealers optimistic about winter fuel supply
by Laura Toler
Staff Writer
There won't be a fuel shortage this winter if the
weather is mild and federal oil allotments are not
reduced, area oil dealers say. Nevertheless, consumers
will have to pay almost double last year's fuel prices.
"We hope we're going to have enough," H.D.
Bennett, manager of Bennett & Blocksidge Inc. on
Franklin Street, said Tuesday. "The situation looks
better at the moment, but it depends on the type of
winter we have. January and February are the hardest
months."
During the past three years, the Federal Energy
Administration has regulated the monthly distribution
of fuel oil to dealers on the basis of their sales in
previous years. Last year the monthly allotments were
adequate but that was during a warm winter.
In the past year, fuel oil and kerosene prices have
almost doubled due to shortages. Bennett said his
company's prices per gallon are 37.5 cents for fuel oil
and 40.4 cents for kerosene a 10 to 15-cent increase
over his prices at this time last year.
Frank Macbn, manager of Carrboro Service Store,
- 4 ,'
4
. ' Z'i- fZ;
5
the silent guardians of a family plot In the
WW
tit
mm
m
mm?
UPI teteptwto
Rockefeller testifies before Senate Rules Committee Sept. 24. His confirmation as vice president now seems likely.
iRcDcky's approval likely
by Clay F. Richards
. United Press International
WASHINGTON The chairman of
the Senate Rules Committee said today
the panel will recommend Friday that
Nelson A. Rockefeller be confirmed as
vice president.
Chairman Howard Cannon, D-Nev.,
told reporters after a brief meeting of the
committee that the panel's vote on
-Friday will be favorable. - -
But Cannon said a full Senate vote
will come after Thanksgiving to give
said Tuesday fuel oil and kerosene prices have
increased 80 to 85 per cent during the last 18 months.
Fuel oil now sells at the Carrboro store for 35 cents per
gallon; kerosene costs 38.5 cents.
But if customers can pay, Macon thinks his store will
be able to supply. "If our sales and deliveries don't
exceed last year's, we'll have all the fuel we need." '
Durham dealers also reported adequate supplies and
price increases. John Knott, an employee of Bull City
Oil Co., said his store is selling fuel oil at 37.3 cents per
gallon compared to 22 cents at this time last year. The
store's kerosene, priced at about 23 cents per gallon last
year, now costs 40.3 cents.
Andrews Oil Company in Durham has had to raise
prices since the fall season began. Fuel oil has gone up
from 36.4 to 38.4 cents per gallon; kerosene is tip from
39 to 41.4 cents per gallon. But despite the recent price
increases, Andrews is having no problems with short
supply. "We're on a quota, but I don't think there will
be a shortage this winter," the wife of store'manager
W.E. Andrews said Tuesday.
Only Dewey Stone, manager of Kenan Oil Co. in
Carrboro, said his prices this year are cheaper than last
V ', " f
' 1
V
4 t
0
Staff photo by Martha Slmni
cemetery behind Connor dormitory
'mm.
members a chance to read their report.
Democratic leader Mike Mansfield said
Tuesday he hoped the vote could come
before the Thanksgiving recess.
"I think the Senate will vote to.
confirm Mr. Rockefeller, based on what
we know now," he said. "There has been
nothing new that has come up to affect
our decision."
He said the committee vote
recommending Rockefeller may not be
unanimous because a few members may
not want the nomination reported
favorably.
All trafffic- violators
will toe sent letters
by Vince Wheeler
Staff Writer
University students, faculty and staff with
unpaid traffic or parking citations that
amount to several thousand dollars will soon
receive letters from the University Traffic
Office urging them to pay the fines.
Campus Security Director Ted Marvin
said Wednesday the letters are now being
written and will indicate the number of
citations and fines owed. Individuals will
have 10 days from the letter date to pay. He
said the fines should be paid, by cash or
check, to the traffic office in the YMCA
basement. ,
Students who do not respond, Marvin
said, will have charges added to their
accounts and their grades, transcripts, and
records will be held. Fines will be deducted
from the paychecks of employees who do not
respond.
The University is authorized, under Art.
IV, Sec. 4-1 of the University Traffic and
Parking Regulations, and under state
Founded February 23, 1E33
"But I have said that unless something
new comes up I will vote favorably, and
all four Republicans will do likewise, so
it will be favorable," Cannon said. The
committee is comprised of nine
members. .
Cannon said he has been working
closely with House Judiciary
Committee investigators "and they say
there is nothing they have that we are
not aware of that is damaging to'
RbckefellerT - . " IT ..
The House begins hearings on the
Rockefeller nomination Thursday.
year's. Fuel oil at Kenan sells for 37 cents per gallon;
kerosene costs 39 cents per gallon. Stone joined the
other dealers, predicting there would be no shortages
this winter, although he said they were possible. I
"My situation has eased a little," reported one local
oil dealer who wished to remain unidentified. The
government has increased his oil allotment, but the
dealer said bad weather and imposition of government
controls could nullify the gain.
"If they put strict allocations on us with no prior
word, we may have to work under dire circumstances,"
the dealer said. "But if we can work at our own
discretion, we can do much better."
Consumers have been helpful by trying not to use as
much fuel, the dealer said. "My customers and 1 have a
good understanding: 'I'll have it as long as you don't
waste it.'"
Of the five dealers contacted, only Bennett &
Blocksidge Inc. will definitely refuse to serve new
customers this winter. Two dealers weren't sure
whether they'd have to turn consumers down, one said
he will serve everyone he can, and one said he certainly
isn't crusading for more business.
statutes, to charge student accounts and
deduct pay from faculty and staff Marvin
said.
He said the traffic office will notify the
University cashier of ' unpaid student
accounts before the end of fall semester and
will send payroll deduction forms for unpaid
faculty and staff fines to the payroll office in
late December.
"The purpose of collecting fines," Marvin
said, "is not to get more money, but to show
that the University has made a serious
commitment to solve its traffic problems. If
the new parking set-up is to work, it must be
enforced, and collecting the fines is accentual
to that enforcement."
Art. I, Sec. 1-8 of the University Traffic
and Parking Regulations requires all money
collected from parking fees and traffic
violations be placed in trust accounts.
Money from these trusts is to be used to
develop, maintain and supervise parking
lots; to provide bus service on campus and
for the University community, and as a
pledge to secure revenue bonds for parking
facilities.