The Blackout's Lesson Demand for Close Power Ties
Washington hears from Federal Power Commission chief Joseph Swidler that Congress must back stronger interconnected power pools. He argues legislation is needed to oversee pooling, remove incentives to stay separate, and ensure minimum standards for a national grid.
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CAB Ruling Clears Storer to Control Northeast Airlines
The Civil Aeronautics Board grants final approval to Storer Broadcasting Co to acquire control of Northeast Airlines and its leasing subsidiary Storer Leasing Corp. National Airlines loses its bid for a hearing while the CAB notes potential lower financing costs but cites no grounds to block the deal. In New York, Transit Authority warns fares could rise to 47 cents if a strike by the Transport Workers Union occurs after Jan 1, with talks resuming Friday.
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Republicans Call Overhaul of Federal Aid to States
UPI reports GOP leaders urge replacing categorical aid with functional grants giving states broader use of funds for education welfare and public health. They propose block grants starting at 2 percent of federal income tax, rising to 10 percent, with minimal federal controls.
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Federal Units Seek Tougher Civil Rights Enforcement Moves
Washington UPI says the Johnson administration will strengthen HEW civil rights enforcement across programs and expand Title VI compliance. Justice Dept. weighs action against harassment of Black students in DC area integrated schools, signaling a new federal court effort for Negro pupils.
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Albert Dorne Dies Leading Illustrator
New York reports the death of Albert Dorne a renowned illustrator who died Wednesday at University Hospital after a brief illness He was 41 and founded the Famous Artists School at Westport Conn a correspondence school for artists
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Viet Nam War Costs Force Space Agency Budget Cuts
The Viet Nam war's rising price tag triggers NASA budget reductions with the first cut in space science and applications. Apollo lunar plans face little impact, while the agency cancels the Advanced Orbiting Solar Observatory project and awaits a congressional compromise on fiscal 1967 funding.
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Ford to use junked cars in Dearborn plants
Ford Motor Co plans to process a quarter million junked cars annually at its Dearborn Michigan foundry complex. Henry Ford II said a long term deal with Luria Brothers of Cleveland will fund a $4.5 million fragmentizer plant near Detroit to supply fragmented scrap steel for casting iron.
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Galbraith Attacks Rate and Urges President Rule
Harvard economist John Kenneth Galbraith urged Congress to grant the President ultimate authority over the Fed discount rate and policy. He called the Federal Reserve Board action raising the rate improper and argued for a simple congressional resolution to place such power under presidential control. Wallich defended the Fed’s independence, noting checks and balances and that taxes and expenditures are set by Congress. The hearing also discussed whether a tax increase might better temper inflation from Viet Nam spending, with Fowler’s position noted but not confirmed.
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Luria Brothers to Expand Fragmentizer Plant network
Luria Brothers plans a new plant at a new location soon, with an 11 month construction period. The facility will expand a fragmentizer process that creates various sized fragments from autos, about 99 percent steel, via a ham mer mill and magnetic separators, all controlled by electronic devices. The product is marketed as Lurmet. A small unit operates in Los Angeles and the new plant will be larger to improve efficiency.
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