High Point Enterprise Newspaper Archives Apr 21 1976, Page 35

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High Point Enterprise (Newspaper) - April 21, 1976, High Point, North Carolina High Point Enterprise. Wednesday april 21, 197#> 9t europen trains Roll in style despite deficits by David Minthorn associated press writer Bonn West Germany apr state run railways in Western Europe which remained models of reliability and travel Comfort while passenger service deteriorated in the United states Are now bogged Down in deep financial woes few of them had been profitable in recent years and they eliminated thousands of Miles of Road and Cut Down on their work Force. Even greater reductions in passenger service and personnel Are being planned it s one second to 12, not one minute before when the clock strikes and nothing has been done to solve the railway s structural problems it will be the death sentence for this Enterprise Quot warned West German Railroad president Wolfgang Vaerst burdened by inflated work forces and debt Ridden passenger services on Rural lines. European railways have managed to stave off bankruptcy Only with the help of multimillion Dollar government subsidies each year now vast new investments Are needed for 165 m p h Quot super trains Quot and other High Speed equipment. West Germany s railway which has a staggering deficit of $10 billion has proposed closing nearly half its 17,400 Miles of track and eliminating 130,000 jobs Over the next to years in an Effort to con centrals passenger and freight services on profitable main lines however actual closures will be considerably less a a about 4,000 Miles a because of regional political considerations and labor Union opposition. German transport officials say Hail concentration and economizing measures in other Western Europe nations Are meeting with varying degrees of Success a 10-nation associated press Survey shows British Hail reduced its track network from 18,000 to 11,000 Miles and slashed its payroll from 600,000 to 250,000 workers Over the last 30 years without solving its massive financial problems the chairman. Sir Richard Marsh announced last week he was quitting because of what he called government meddling with Railroad hiring policies and criticism of his handling of the network which lost $800 million in 1975 Sweden s National Railroad claimed a $25 million operating profit in 1975 after years of deficits the payoff for eliminating 2,100 Miles of unprofitable tracks since the Early 1960s. Still the railway says it needs a $200 million government Grant this year to maintain passenger service on the 7,400-mile network Belgium a railway which lost $1 2 million in 1974, has Cut some 280 Miles of secondary tracks Over the last decade and substituted economical commuter buses in these Rural areas. Automation has allowed Norway to reduce its Railroad payroll from 28,000 to 18,000 in the last 20 years and 1.000 More jobs will be trimmed in the next five years despite a $70millmn operating deficit in 1975, the Railroad plans to build new lines which Are considered less of a pollution Hazard than superhighways the French railway which lost $260 million last year is in the process of closing Down inefficient lines and opening new ones but it plans no major cuts in its 280.000-member work Force this month Paris officials approved plans for an $800 million High Speed line linking Paris and Lyon by 1981, providing Competition for intercity jct air plane set vice environmentalists had delayed the project for three years by warning it would cause Quot irreparable damage Quot to the Burgundy Countryside and prove As economically questionable As the controversial concorde Airliner Italy s 9,600-mile rail network is losing More than $3 million a Day yet track closures Are rare and passenger fares re main the lowest in Western Europe to keep one million passengers Riding daily Many of the travellers have discounts ranging from 25 to 70 per cent and some 10,000 privileged persons including politicians and War veterans ride trains each Day without paying any fare efforts Are being made to Cut these privileges and reduce the discounts but the savings would hardly make a Dent in the massive rail deficit Austria s railway is deeply in debt and a hiring freeze has been imposed for 7.000 jobs of railway employees who retired in recent years reducing the staff to 60.000 because of political protests the railway has been unable to Cut services in Low traffic Border regions instead it Hopes to attract More business by updating equip ment and services with $2 7 billion of in vestments Over the next to years the Swiss railway expecting a record deficit of $305 million this year has slashed freight transit rates by to per cent to counter 12 to 20 per cent declines in foreign goods transiting the Alpine nation on rails. Despite five straight years in the red. The Swiss decided to retain unprofitable passenger lines without resorting to what transport officials termed Quot ruthless Cost covering the dutch government is expanding the nation s 1,770-mile rail network and purchasing new rolling Stock despite persistent deficits a 66 5 million in 1974 and 58 6 million in 1973 an important new line will link Amsterdam a City Center with Schipholt Airport and continue via Leiden to the Hague Holland like other european nations has a Liberal system of Cut rate fares with the latest a discount ticket for family members and groups travelling together business Mirror investment clubs can be advantageous cd # i. A a i to i new York a in 1941 a Detroit Man began depositing $10 to $20 a month in an investment club by february of this year he had invested $7,800, withdrawn More than $30,000, and still had an account Worth More than $59,000. The club the Mutual in vestment club was one of the four founding units of the National association of investment clubs now More than 7,000 Strong averaging about 12 members each All regular investors for the Long term even though most club members Are amateurs they often beat the pros Over Long and Short periods one club made up of Post office workers reported a gain of 212 per cent from october 1974 to december 1975 that report encouraged the association based in Royal Oak Mic to take a random Sample of gains by about 40 clubs through february. It found the average gain since december 1974, the worst of the Bear Market to be 69 9 per cent the Dow Jones Industrial average during that time gained 59 9 per cent to per cent less than the average club sixty four per cent of the clubs in the Sample did better than the average. For the clubs that stuck it out through the recession despite declines in value month after month these results Are satisfying and reassuring but not totally unanticipated. Although their nerves did quiver club members were sustained by their Faith that Over a Long period of time their investment philosophy averages out to a gain Many clubs did drop nit. However at one time in 1973 the association had 14,100 member units but that number went Dow with the averages some clubs folded and others simply ceased to remain members of the association now the trend is about to be reversed inquiries Are up sharply and the criterion of history suggests inquiries Are followed by applications individual clubs also report they Are adding to their memberships Thomas o Hara chairman recalls that in the fall of 1973, when the fear and despair were thick the sturdiest of clubs continued to believe stocks were a bargain they were willing to wait. Now said o Hara who belongs to the Mutual investment club a Mae feel that the really big movement in the Market is in the two to five years ahead a with theories concepts and systems As common in the investment world As they Are at the race track member clubs follow deceptively simple principles to help them achieve their results. A they invest regularly usually at monthly intervals Over a Long period of time they do not try to Gaess whether the Market is in an upward or downward trend through the worst of times they continue to invest. A they keep fully invested in order to put to work for them the principle of compounding they Don t maintain big Cash positions and they reinvest dividends a they Endeavor to invest in companies whose sales and earnings per share Are moving ahead faster than the general Economy. While this seems to be a conservative philosophy it really in t ask any club that stuck to it during the dark Days of the Market. Quot it gives you a pretty aggressive account Quot said o Hara he esp lamed Quot investing a set sum of Money each month has a wonderful mathematical effect As Stock prices decline that set amount buys a larger and larger number of shares of Stock Quot once Stock prices turn around a Price increase applied to the larger number of shares helps increase values rapidly Long before Stock prices reach their former highs the investors find tile value of their accounts exceed their investments. Reading matter originally a Magazine was a storehouse not a periodical a the gentleman s Magazine Quot introduced to the Public in 1731 was the first publication to use the word in its new meaning stating in its introduction that the Publica Tion was intended to Quot store up Quot a collection of various subjects a was in a Magazine Quot

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