Battle Creek Enquirer from Battle Creek, Michigan • Page 22

v. -w j- jr B-6 Enquirer and News. Battle Creek. Oct. 26, 1 975 of law to end bias in lending to be delayed ConRail plan may break Amtrak, official says Parts By DAVE RILEY Associated Press Writer WASHINGTON (AP) -Applicants for credit will be judged on their personal merits and not on the basis of sex or marital status under a new law aimed at ending discrimination in lending, the Federal Reserve Board says.

New regulations based on the law go into effect Oct. 28, although the board said some aspects of the law will be de layed for as much as years. The regulations contain theseprovisions: Creditors cannot use sex or marital status as a factor in deciding if an applicant should be given credit. In most cases, banks, credit card companies; department stores, gasoline companies and any irm of fer-ing installment payment plans will not be allowed to ask if an applicant is single or married. However, creditors will be allowed to ask about marital.

status or a spouse's earning power if a man or woman seeks credit based oft the earning power of a husband or wife. Creditors cannot ask about an individual's or couple's birth practices or child-bearing plans, nor can they" from a woman's age that she may leave her job to haveababy. Persons victimized by sex won't take full effect for nearly threeyears. The Federal Reserve also removed from the rules a provision that would have required a creditor to explain in writing, if requested, its decisions for denial of credit. The decision delaying some aspects of the law was attacked by Rep.

Frank Annunzio, D-Ill. chairman of the House consumer affairs subcommittee. who said the board "has clearly broken the law." He said only Congress has the authority to delay the effect of a law. Jeffrey M. Bucber.

the board governor responsible for the new regulations, said the rules direct creditors "to judge an applicant on his or her own merits without regard to sex or marital status. Notice that I said his or her. This is not legislation for women only." or marital discrimination can sue for, actual damages plus fines of up to $10,000. Groups of victims who file class action suits can seek penalties of up to $100,000 or 1 per cent of the creditor's net worth, whichever is the lesser amount But some of the provisions of the law, such as a guarantee of a married woman's right to set up her own credit accounts and obtain a personal credit rating, hours a day Amtrak could be saddled with $.65 billion in extra cost, requiring it to ask Congress for an additional $500 million a year in subsidies. "As a member of the board of Amtrak I am not eager to defend the need for more money from Congress," he said, adding that so far there has been no public discussion of the impact of the ConRail plan on Amtrak.

The Amtrak board officially supports the ConRail plan, but MacDonald said that at a recent board meeting he raised his questions. He said that, as a result, Amtrak management has begun preparing financial reports to be presented to Congress. Unless Congress acts by Nov. 6 to alter the plan, ConRail automatically takes effect. MacDonald says the impact on Amtrak would force it to abandon the rest of its passenger train system to finnce the cost in the Northeast Corridor.

He is particlarly concerned with the fate of the Montrealer, the daily passenger run from Washington to Montreal. That train has been particularly successful, he said. Last year it carried 166,360 passengers between New York City and Montreal. WASHINGTON An Amtrak director says he fears the national passenger train sys-' tem could go broke in the next two or three years simply trying to maintain the expenses of its Boston-to-Washing-tonruns. Joseph V.

MacDonald, one of 13 Amtrak directors, said the serious problems will arise as a result of the ConRail plan for restructuring freight lines in the Northwest and Midwest. He pointed out that the S. Railway Association, which created CVONRail, provides that freight systems shouldn't have to bear the tremendous cost of upgrading the rail lines on the Boston-to-Washington run, commonly called the Northeast Corridor. That leaves Am track to pick up the bill, McDonald said. He also questions the need to set up a parallel line along the corridor, to be used exclusively by freight trains.

In a letter to the editor of the Burlington (Vt.) Free Press, in which he laid out his misgivings, he said, "The cost of the upgrading of the parallel lines is to be borne by Amtrak. US-RA offered no estimate of the cost I suspected it should be in the billions." Tuesday, MacDonald said Stereo 1057 Beautiful music 24 SHARP ELECTRONICS and GARRATT OFFICE MACHINES 'The Calculator People" Julian Katz Vice President Loan Department Jean Sherman Assistant Secretary Loan Closing (m OS QCE SEED Dick Stanley I JMf I Loan Officer! mM I I Vm I I SRS2'" Homelmrovement Sharp offers a full line of electronic print- ino ralnilaforc parti a rrr-iiirl- nf QViai tjualitronics, and each capable of handling the most taxing of tax calculations. Although yours might well pay for itself in tax savings alone, Sharp's versatility and dependability can give you The Sharp Edge I all year round. Sharp electronic printers from s199 We Service What We Sell! GARRATT Office Machines 946 Capital N.E. Phone 968-9323 1 You can lease a car in Kalamazoo, save money Leah Hand Awistant Cvwtlt Mwwgtf 1 9GS Vy Hazel Davis mman Jw Insurance Suparvtsor HOME OFFICE LOAN DEFT Don Robinson, Car leasing expert Home ownership is the dream and goal of most Americans and we can help you achieve it.

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