Arizona Daily Star from Tucson, Arizona • Page 1

WEATHER Forecast for Tucson: Partly cloudy; continued mild Temperatures Yesterday: HIGH 59 LOW 32 Year Ago: HIGH 52 LOW 24 U.S. Weather Bureau VOL. 127 NO. 2 FINAL TEN CENTS An Independent NEWSpaper Printing The News Impartially it TUCSON, ARIZONA, TUESDAY MORNING, JANUARY 2, 1968 imerel as sectrw) elan matif Post OMIee rucsnn. Arijnn 622-5855 SEVENTY-EIGHT PAGES mm Hanoi 'Will7 VB 1 Foreign Spending.

Travel Restricted fct 0 A (B LBJ Challenges Payments Deficit By FRANCES LEWIS JOHNSON' CITY', Tex. (AP) President Johnson took stringent action Monday aimed at curbing foreign spending, tourism and loans abroad to carve $3 billion from the mounting deficit in the U.S. balance of payments. With some of his top advisers on hand, the President announced t-hat he is "going to put all of I Coming Up Roses Sen. Everett Dirksen, grand marshal of the Tournament of Roses in Pasadena, waves to the thousands of spectators lined along the city's Colorado Boulevard.

The senator's wife rides in the automobile with him. (AP Wirephoto) New Policies Enraging To Businessmen Teddy In Saigon Kennedy Cites Viet Problems By R.W. APPLE JR. (C) 1968 New Yorlf Times News Service SAIGON Sen. Edward M.

Kennedy said Monday night that he has "serious reservations whether an honorable settlement can be reached here" unless the United States augments its aid to-refugees and civilian war casualties. Speaking at an informal news conference a few hours after Profits Vary For Tucson Bus Firms Company Differences Explain Discrepancy By DON CARSON Second of a Series Tucson Transit Corp. and its predecessor companies have complained about financial troubles for years. Tnrough the same period, Old Pueblo Transit Co. has quietly enjoyed financial success.

Why the difference? One reason has to be the area each serves. Old Pueblo covers the south the southwest part of Tucson. Tucson Transit has all the reft. Roy Laos, president of Old Pueblo, explains it this way: "We're in a different position altogether. We haven't got big shopping centers and discount Ihouses to compete for our riders.

The shopping center for our people is downtown and 99 per cent of our riders are shoppers." Stated another way, there is one basic destination for most of Old Pueblo's riders: downtown. For Tucson Transit, there is a variety of possible destinations. That major difference can be translated into miles. TTC Supt. Harry E.

Helterbran says his buses travel 3,500 miles a day, while Laos puts the Old Pueblo mileage at 1,200. Nonetheless, Laos says he could mnke a go of it in the Tucson Transit area if allowed to move in without assuming any of that company's property or contracts. "Some people think only in terms of equipment aw' employes," he says. "It's the net profit that counts, not the gross." Laos avoids specifics about how he would resurrect Tucson Transit. That's his business, he says, and points out that while he, too, is a member of the city's bus advisory committee, "I told them there were certain things I wasn't going to discuss like how I run my business." Laos did provide some information and tnas picture was formed after combining it with data supplied by Helterbran: Tucson Transit maintains 38 buses; Old Pueblo maintains eight.

Tucson Transit has 45 employes: Old Pueblo has 13. Tucson Transit carries, 4,200 passengers a day (over 3,500 miles); Old Pueblo carries 1,800 (over 1,200 miles). Tucson Transit has an annual payroll of about Laos declines to reveal th? Old Pueblo payroll. Tucson Transit drivers are represented by a union; Old Pueblo drivers are not organized. One other major comparison: Tucson Transit's Helterbran says it costs 53 cents a mile to run his company and that revenue is only 44 cents a mile.

Old (Continued on 3A, Col. 1) Muscle For The Dollar President Johnson uses his fist to make a point as he outlines an economic reform program to cut the nation's balance of payments deficit. The President said he would put the "muscle of the presidency" behind the U.S. dollar. (AP Wirephoto) 4 Americans Die lalk When Bombs Halt Hint Seen As Thaw In Enemy Position By JOHN M.

HIGIITOWER WASHINGTON (AP) Hanoi radio broadcast early Monday a statement by Foreign Minister Nguyen Duy Trinh that North Vietnam "will talk" when the United States has "unconditionally stopped its bombing and all other war acts" against the North. State Department authorities expressed interest in the statement, which was picked up from the radio broadcast by U.S. monitors and circulated to government officials. A State Department spokesman said "this statement is under study." Of special interest to Washington policymakers was the phrase "will talk." Normally in the past North Vietnamese spokesmen have said there "could'' be peace talks between North Vietnam and the United States if the U.S. stopped bombing permanently and without conditions.

Sometimes the North Vietnamese have said the bombing had to be stopped To U.S. experts it appeared possibly important that Trinh did not use the word "permanently" or the word "definitively" in connection with his demand that the bombing be stopped. But pending further examination, no one here was ready to say Trinh's words represent a major shift in Hanoi's position. The first U.S. action in response to the new statement was expected to be to ask the Hanoi government through diplomatic channels whether it was indicating a significant shift in position by declaring that talks will be held if its conditions are met.

Tucson Indian Years First Traffic Death An unidentified Indian man became Tucson's first traffic fatality of 1968 last night when he was struck by a car while walking across W. 29th St. at S. 7th Ave. Police said the victim was not in the crosswalk when struck and did not carry any identi- fication.

The driver of the vehicle, Ronnie Rodriguez, 19, of 656 W. President, told police the man had walked past the car and then turned back into its path. No citations were issued p2nding further investigation: Officers said the victim, who appeared to be about 50, was pronounced dead at Pima County Hospital and was taken to Tucson Mortuary. with members of his special mediation panel at his side, announced the labor pact at 7:24 a.m. in the Americana Hotel, where the critical negotiations had been taking place.

The mayor expressed his thanks to the parties and the panel for their successful efforts in achieving a voluntary settlement without another crippling strike. John J. Gilhooley, a member of the Transit Authority, described the settlement as "fair and reasonable," and one that he said was "well within the means of the Transit Authority to Finance." Matthew Guinan, president of the Transport Workers Union i In Fighting said they lost 19 killed and 47 wounded while killing 60 enemy in a fierce fight in the Mekong Delta before daybreak Monday. South Vietnamese military spokesman said they asked for U.S. air support during the fight but did not get it because of cease-fire orders.

U.S. authorities said the incident was being investigated. The U.S. Command said 36 of the cease-fire incidents were significant, meaning that they involved casualties. Over the New Year's cease-fire a year ago, there were 33 such incidents.

An undetermined number oi the incidents during the allied stand-down occurred Tuesday in a five-hour period after a three-day declared by the Viet Cong ended at 1 a.m. Nei- A pension provision wh.ch will permit a worker to retire at half pay after 20 years of service if he has reached 50 years of age. A 5 per cent wage increase as of Jan. 1 this year and a 6 per cent wage increase on July 1, 1969. Transit Authority employes have been averaging $3.62 an hour.

The rate for bus drivers has been $3.73 an hour and mo-tormen $4. Two years ago a strike by the Transit Authority employes paralyzed the city for 12 days and cost the city an estimated billion in economic losses. $1 lb the muscle" of the presidency and the executive branch behind the dollar and "keeping our financial house in order." He announced five specific actions, some of them substituting mandatory for voluntary restraints on spending overseas. 1. He invoked his authority under the banking laws to es tablish a mandatory program effective immediately, to re strain private investment abroad by $1 billion.

2. He authorized the Federal Reserve Board to tighten its program on foreign loans to save an additional $500 million. 3. He called for immediate efforts to cut government spending abroad on defense and foreign aid to save $500 million. 4.

He appealed to all Americans to help their government to the extent of $500 million by deferring all nonessential travel outside the Western 'hemisphere for the next two years. Johnson said he hopes this might reduce this year's $2 billion travel de ficit to $1.5 billion. 5. He is sending representa tives Monday to various foreign countries to exchange views "with our friends in the world about our trade situation," hoping to formulate a program to improve the foreign trade balance by at least $500 million or perhaps $750 million. The President said the soundness of the free world monetary system rests largely on the U.S.

dollar. And the strength of the dollar depends on the strength of the international balance of payments position the ratio of exports to imports. Johnson said Congress definitely will be asked to act in matters of tourism and trade. Of direct American investment abroad, Johnson said American business has cooperated with the government over the past three years on a voluntary program to moderate the flow of U.S. dollars into foreign investments.

But he said it was the unanimous view of all his economic and financial advisers and the chairman of the Federal Reserve Board that "the savings now required in foreign investment outlays are clearly beyond me reach of any voluntary program. So he invoked powers under the banking laws for mandatory restraints on foreign investments. Johnson summoned reporters to his ranch, wished them "Happy New Year," and held an hour-long news conference on the new orders. He also an- Continued on 3A. Col.

2) Allied Cease-Fire Riddled 168 Times By Red Forces Compiled Fram Wirt Strvim President Johnson's New Year's program to trim the nation's deficit in its balance of payments received a mixed reaction from government officials and the financial community. Alexander B. Trowbridge, secretary of commerce, said that the new controls were "not a basic change" In the policy of encouraging investments abroad. His remarks, at a news conference was an implied recognition that the restrictions could be counterproductive in the long run since income from investments overseas now exceeds the dollar outflow for such investments. The financial community was highly critical of the President's program.

"The wrong way to go about "Basically in error," were some of the comments from bankers directly affected by the restrictions. The British, meanwhile, expressed regret but understanding. The British treasury was informed of President Johnson's proposals shortly before they were announced. Monetary experts had been expecting new American measures since the pre-Christmas gold scare, but few thought they would be so severe. But officials said they well understood the need for tough American measures and understood that they must inevitably affect other countries.

Cinderella Story Ends For Indiana TYe University of Southern California's O. J. Simpson ended Indiana's rags-to-roses Cinderella story as scored twice in leading the Trojans to a 14-3 victory in the Rosp Bowl Monday. But the proud Hoosiers, dominated by sophomores, swore to return in two years. In other bowl games, WAC champion Wyoming made its first appearance in a major bowl game and dropped a 20-13 decision to LSI' in the Sugar Bowl; Texas upset Alabama, 20-16 in the Cotton Bowl and Oklahoma outlasted Tennessee in the Orange Bowl, in the number of American aid personnel working with refugees and better handling of field operations.

However, Kennedy also voiced skepticism of predictions by U.S. officials that there would be no more than 300,000 to 340,000 new refugees in South Vietnam this year. It was understood that Kennedy had been handed, on arrival, two estimates of the number of refugees in the I Corps i ia in central Vietnam as of Nov. 30. The figure supplied by American refugee specialists was said to be 121.000 higher than that of the South Vietnamese government.

Kennedy said that he had studied a new, optimistic study-of the refugee problem by the American mission in Saigon while en route to Vietnam. He said he would "balance that assessment" against a forthcoming General Accounting Office report, a preliminary draft of which he has read, and against his own observations. Two aides of the 36-year-old senator have been in Vietnam for a month, travelling around the country, and for the last two weeks an aide has been working in each of the four corps areas. Unlike almost every other official visitor Kennedy has mapped out his own itinerary, largely without the assistance of the U.S. mission.

He plans to spend Tuesday in Saigon and the rest of his time visiting refugee camps, hospitals and other field installations. arriving in Saigon, the Mas- sachusetts Democrat said he had seen indications recently "of some limited kind of progress" in these areas. He mentioned specifically an increase ITT Stops Merger With ABC NEW YORK (AP) The Justice Department scored a major victory Monday when International Telephone Telegraph Corp. called off a proposed $2.8 billion merger with American Broadcasting Inc. It would have been the largest merger in broadcasting history.

ITT directors, who voted unanimously to end the two-year-old meryer agreement, cited long delays and indications of more in getting the final go-ahead for the consolidation, originally agreed to in December 1965. The Federal Communications Commission twice approved the merger, but the Justice Department challenged it each time on antitrust and other grounds. ABC ranks last among the three major television networks and the merger was expected to give it a financial boost through ITT investment in programming and technological improvements. ABC president Leonard H. Goldenson said the network regretted the action, but he indicated other mergers may play a part in ABC's plans to "move vigorously and forcefully to strengthen and expand its interests and growth." Termination of the merger by ITT, Goldenson said, "now frees ABC from its obligation under the agreement and permits us to start immediate discussions with compatible companies that have privately expressed an interest in being acquired by our company.

Up to now, ABC, in good conscience, was not able to enter into such discussions while the merger was pending." Goldenson other firms. did not name the ITT directors said they ended the agreement "with reluctance and concern for the time and effort both companies have expended to carry out an agreement which was entered into by them as a constructive step in the public interest. ther side had pledged to observe the other's cease-fire period. U.S. Division infantrymen were pursuing elements o.

an estimated Viet Cong regiment that attacked a U.S. fire support base. U.S. spokesmen said one American soldier was killed and 64 wounded in action at Dan Tieng. A brigade base camp of the 25th Division was hit with what the U.S.

command described as a heavy ground attack as well as an unknown number of mortar strikes. Army helicopter teams, Air Force AC47 drag-onships and tactical aircraft supported the infantrymen, 24 miles northeast of Tay Ninh city. Preliminary casualty reports showed 17 U.S. soldiers wounded. Viet Cong guerrillas shelled the Nha Be subsector headquarters in Gia Dinh Province, about 10 miles south of Saigon, with five to 10 rounds of recoil-less rifle fire about 2 a.m.

Tuesdav, reports said. The battle involving two battalions of South Vietnamese marines in the Mekong Delta opened with a Viet Cong mortar and rocket attack on the marines' bivouac positions a few minutes after midnight Sunday. The guarrillas then launched three ground assaults that were repulseu by the marines. Cutting Jet Noise MANCHING. Germany (AP) Technician Hans Kuhn says he has found a partial solution to the problem of making West German air force Starfighter jets whisper instead of howl over densely populated areas.

He says metal rings inserted in the exhausts cut noise but don't reduce the jets' efficiency. By EDWIN Q. WHITE SAIGON (AP) Enemy forces riddled the allies' New Year ceass-fire with 168 separate shooting incidents, the U.S. Command reported Tuesday alter the stand-down ended. Four U.S.

troops were reported killed and 52 wounded. The 36-hour cease-fire that ended at 6 a.m., Saigon time, was marred by nearly as many incidents as the longer, 48-hour allied New Year cease-fire a year ago, when there were 178 clashes. U.S. spokesmen said they expected full-scale fighting, including bombing of North Vietnam, to resume quickly. South Vietnames3 losses during the cease-fire were reported as 21 soldiers killed and 61 wounded.

Government marines representing most of the 36,000 transit workers involved, said that he was extremely happy at the settlement. He said that it would not have been possible if the mayor had not appointed the "distinguished panel" of Vincent D. McDonnell, Joseph E. O'Grady, and Theodore W. Kneel.

Both Guinan and John VV. Rowland, of the Amalgamated Transit Union, representing bus drivers, said that they would strongly recommend ratification of the new agreements by their memberships. Major items in the new con-1 tracts include; NY Parties Reach Agreement Trasif Strike Averfe LBJ Adviser Selected As Rome Envoy 1948 New York Tirrws New Service JOHNSON CITY, Tex. -President Johnson announced Monday that Gardner Ackley would leave the chairmanship of the Council of Economic Advisers to become the nation's ambassador to Italy. A successor as council chairman will be announced soon, officials said.

Ackley, 52, has been one of the President's closest counselors, sharing the planning of over-all economic strategy with Secretary of the Treasury Henry Fowler and Budget Director Charles L. Schultze. Apparently reacting to the news that the Italian government had agreed Monday morning to receive Ackley, Johnson rose at the end of his news conference on economic questions to disclost the appointment. He said Ackley would replace George Frederick Reinhardt in Rome as soon as the Senate confirms the nomination. Today's News Index George Rosenberg.

Mrs. F. H. Lowry honored as Tucson's Man and Woman Of The Year, IB. Gov.

Nelson Rockefeller is only GOP candidate given a chance to beat Johnson, 11B. Good driver behavior credited in holding down holiday traffic deaths, IB. Many outstanding Tucsonans were claimed by death in 1967, 9A. Endue 8A Financial 6-10B Pub. Rec 12B By DAMON STETSON 1963 New York Times News Service NEW YORK The threatened bus and subway strike here was averted early Monday when the New York City Transit Authority and the two transit unions reached agreement on new contracts that will cost slightly under $70 million over two years.

The settlement came only minutes before a 7 a.m. strike deadline, previously advanced from 5 a.m. during a cliff-ha nger finale to 39 hours of intense negotiations over the weekend. Mayor John V. Lindsay, surrounded by weary negotiators for the transit authority and Horoscope 5A Radio-TV 17B Mostly Hers 13-15B Sports 2-4B Movies 12B Weather UA Comics 16-17B Crossword 16B Editorial 18B 1 1 cii.