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Philadelphia Daily News from Philadelphia, Pennsylvania • Page 7

Location:
Philadelphia, Pennsylvania
Issue Date:
Page:
7
Extracted Article Text (OCR)

Thursday, May 6, 1976 Phila. Daily News DooEl CInlD Cairs, fel? CDaalb Laying It on the Line executives getting cars and country $200,000 $135,000 Strategic Planning $72,000 and Treasurer $72,000 Government Affairs $72,000 Transportation $70,000 Public Affairs $62,500 Labor Relations $62,000 Marketing $56,000 President Sales $53,000 Planning and Control $48,000 vi lf) By FRANK DOUGHERTY The federally funded Consolidated Rail Corp. which expects to lose $359 million tax dollars this year has spent $35,000 on a study to decide how to give 11 top executive free cars and country club memberships. Those executives get salaries ranging from $48,000 to $200,000 a year. The study, which cost more than $3,000 per executive, was prepared for ConRail by Hay Associates, a management consulting firm at 18 IS Walnut St.

ConRail, the Congressional reorganization of six bankrupt Northeast and Midwestern railroads, maintains national headquarters at 1818 Market St. It was not certain whether the chairman, president and nine vice presidents in question were stationed in Philadelphia, where ConRail runs extensive commuter rail service. CONRAIL CHAIRMAN Edward Jordan, in a vigorous defense of the cars and club memberships, told Washington Star reporter Stephen Aug it was for business. "So I don't think you can describe it as a free membership in that sense, nor a car, since he (the executive) has to pay for his personal use of it," said Jordan. Jordan then pointed out that the cars would not be luxury models.

Unitax Iranian Ambassador Ardeshir Za-hedi escorted Elizabeth Taylor to Here are the club memberships, Edward Jordan Richard Spence Leo Mull in Robert Wadden John Sweeney Richard Hasselman Donald Martin Alvin Egbers Welborn Alexander Ralph Cramer Carl N. Taylor "Just a standard Chevrolet. They're not going to be chauffeured." A standard 1976 Chevrolet Impala with a V-8 engine, air conditioning and an AM radio sells for $4,302, plus taxes A source told the Daily News membership in the area's better country clubs for the first year would cost about $1,000 to purchase a bond in the club and $1,000 annual dues. CONRAIL is anticipating about $2 billion in government support through 1980. It employs 95,000 persons, many of them facing layoffs.

"The source of ConRail's funding doesn't change the need to get the right people," said Jordan, The important goal is a compensation package which will attract and hold the right people." ConRail refused to talk to a Daily News reporter about the car and country club memberships. "We have no comment. The story speaks for itself," said a spokesman for Jordan. "Thanks for checking us out, but that's the way it is." DONALD R. SIMPSON, a Hay Associates partner who made the study, said ConRail salaries were average for general industry but "below average" for railroad executives.

Simpson'said he turned the study over to ConRail executives last December. "It doesn't serve the taxpayers to not hire and pay the people best qualified to make ConRail a success," Simpson said. BUT WHAT ABOUT the projected $359-million loss this year? "It's untenable to expect high-caliber people to make money for ConRail, then wait until 1980, the year a profit is expected to be shown, to get just compensation," said Simpson. He described cars as "tools" of the business, adding that he didn't advise the executives to write "a blank check" on their purchase, nor did he recommend any special make or model. "But, say, a Porsche would be Inappropriate.

Maybe they could do better than a Chevrolet, but that's lucky ConRail and their salaries: Chairman President Senior VP Vice President Vice President Vice President Vice President Vice President Vice President Acting Vice VP Operations probably right at this time." He said the car and club memberships, when viewed as part of the total saiary, weren't out of line. "They're not being ultra-Rcnerous. The isue is if you want good people result-oriented you have to pay for them, whether or not ConRail is making a profit." Simpson, in an afterthought, said one of the characteristics of a successful executive is that he doesn't like to be "a sucker." "Good people want to be paid well. They want adequate compensation, added Simpson. "That's a way of life." City Hall Axes 1000 More than 1,000 city employes will be laid off on June 30, the end of the current fiscal year, it was announced today by Managing Director Hillel Levinson.

Levinson said the harsh cutback was made necessary by the city's continuing budget problems. A deficit of $80 million is anticipated for the current year and the Rizzo administration has announced it needs massive tax increases to forestall further deficits next fiscal years. According to Levinson, the hardest-hit department in the upcoming layoffs will be the Streets Department, where 264 employes are scheduled to lose their jobs. Other big cuts are earmarked for Philadelphia General Hospital and civilian staff of the Police Department. Levinson said he has informed unions that represent city workers of the impending cutbacks.

Mclntyre Improves LOS ANGF.LF.S UM'I) James Francis Cardinal Mclntyre, retired archbishop of the Los Angeles Catholic Archdiocese, yesterday was reported progressing "fairly well" at St. Vincent's Medical Center afier suffering a minor stroke on Faster. Not Blue, This Bird the American preview of "The Blue Kennedy Center in Washington. The American and Soviet companies. By TYREE JOHNSON If Cleo M.

Smith lives to be 90, she says she'd still be "more responsible" than the police officer who handcuffed her and tried to drag her out of her home after a sergeant called her "nuts." The widow and retired real estate broker is 78. Yesterday, she filed a $20,000 suit in U. S. District Court against five police officers and the city claiming police illegally entered her home, assaulted her and im7, prisoned her against her will last Aug. 12.

Police Commissioner Joseph F. O'Neill declined comment while the case is in litigation. MRS. SMITH said she called police to have some loiterers moved off the front steps of her home on Broad St. near Berks.

Mrs. Smith says the loiterers refused to move and the police told her, "They're not bothering anybody. Go in the house and shut your mouth." Mrs. Smith says she called police again and a sergeant arrived and told her there was nothing they could do about the loiterers, who were young workers renovat Bird," in which she stars, at the film is the first co-produced by ing nearby houses. "I couldn't believe that," says Mrs.

Smith, who called police a third time with "the whole force showing up." At this point, Mrs. Smith says, the sergeant began asking her "personal" questions and "put his face up to mine. His lip curled and he told me, 'You're Mrs. Smith says police came into the vestibule of her home where they attempted to drag her out and handcuff her hands behind her back. She says she was "shaking and crying" and pleading for them not to handcuff her.

THE WOMAN, who lived in the home since 1939, was placed in a police van that she says was "sweltering hot. I was in there for an hour and a half while they just drove around," charges Mrs. Smith, whose husband, Carlton, was killed in an auto accident in 1954. Police took Mrs. Smith to Philadelphia General Hospital where she was "allowed to make a phone call" and a nurse told police she didn't belong in the hospital's psychiatric ward.

1 WM01 si Suss 1 Photography by Sim Ptorn Cleo Smith: handcuffed 1.

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Pages Available:
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Years Available:
1960-2024