Santa Cruz Sentinel from Santa Cruz, California • Page 36

D-8 Santa Cruz Sentinel Monday, Feb. 18, 1985 Amtrak tries to improve service while cuffing costs By H. JOSEF HEBERT The Associated Press WASHINGTON (AP) When W. Graham Claytor Jr. became president of Amtrak, he quickly made known his dislike for the food on his trains.

Budget cuts had forced freshly prepared entrees to give way to frozen dinners heated in a microwave oven. Arguing that good food would attract passengers, Claytor promptly ordered that meals again be freshly prepared on board and even restored linen, china and silverware to some dining cars. While not the most momentous decision by Claytor since he took over the nation's passenger railroad in 1982, the new policy reflected Amtrak's push in recent years to improve service, while at the same time facing pressure to hold down costs. Not many years ago Amtrak attracted headlines for running trains that were unsanitary, often had no heat, and almost half the time didn't arrive on schedule. Much of that has changed.

But the railroad, which was created as a private corporation by Congress and began operating in 1971 so the freight train made its last run Jan. 6 after Mississippi decided against providing additional money. Meanwhile, the debate over the future of Amtrak is about to unfold in Congress. In the past Amtrak has shown itself to be one of Washington's most durable survivors. In 1979, the Carter administration wanted Amtrak's routes cut by 43 percent.

After the dust settled, the rollback was limited to 16 percent. Amtrak faced another challenge in 1981 when the Reagan administration sought sharp cuts in its subsidies, saying the railroad should be limited to a few urban corridors such as the Boston-New York-Washington corridor. Congress disagreed and left the system intact. But this time, Amtrak supporters say the assault is more ominous. "When the president singles you out (for elimination) in the State of the Union message you've got to worry," says Ross Capon of the National Association of Railroad Passengers, a lobbying group whose primary concern is continuation of passenger rail service in this country.

Yet Amtrak also has some powerful allies in Congress. Senate Majority Leader Robert Dole, told an interviewer last week that he doubts Reagan will be able to eliminate money for Amtrak, although he suggested the subsidies might well be reduced. In the House, Rep. James Florio, chairman of the subcommittee that handles railroad issues, says the elimination of Amtrak assistance "makes absolutely no sense" and "would cost more than it would save." Amtrak officials and the railroad's supporters are worried, however, that the subsidy money will get caught up in a frenzy to reduce the deficit, most likely in the Senate. To head off the administration, Amtrak plans to argue two major points: That while Amtrak service has improved, its reliance on taxpayer money has declined in each of the past five years with non-government sources of income expected to cover 60 percent of its costs next year.

That the elimination of federal funds would mean Amtrak would have to shut down and that that might prove cit reduction is our highest national priority, we can no longer afford to provide railroad subsidies that primarily benefit passengers in the middle and upper income bracket." Even without federal money, some form of passenger rail service would be expected to survive with states or private investors likely to come up with the money, she said. The suggestion was met with widespread skepticism in railroad circles. Rail experts noted the railroads already found once that they couldn't make a profit hauling passengers. States also in the past flirted with trying to operate an intercity train and failed. A few years ago, Delaware, Pennsylvania, Ohio and Indiana wanted to continue a train Amtrak had eliminated.

But all four states wanted it to go through their state during the daytime and when that was found to be impossible the project fell apart. More recently, Mississippi, Alabama and Louisiana couldn't agree on continued support for the Gulf Coast Limited, a popular Amtrak train that linked Mobile and New Orleans last year. The to be more expensive than the subsidies themselves. The administration will counter that $11 billion has been poured into Amtrak and that today the taxpayer pays an average of $35 for each Amtrak ticket sold. Furthermore, it will say, the subsidy loss does not necessarily mean total loss of rail passenger service and that the costs of whatever shutdown is required can be paid through the liquidation of Amtrak's assets.

The most expensive cost associated with a shutdown involves severance payments to about 25,000 Amtrak workers who would lose their jobs if Amtrak goes bankrupt. Amtrak estimates the labor protection cost at $2.1 billion over six years and argues the government will have to come up with the money. "If we're bankrupt we're sure not going to be able to met labor protection payments," says Timothy P. Gardner, an Amtrak vice president. debate on farm policy National digest From Sentinel wire services Block's offer also included an easing of federal regulatory pressure on farm banks and teams of government clerks to process loan paperwork.

How much relief can be expected from the federal aid offer? The administration predicts broad acceptance of the loan guarantees by rural lenders and says this will help alleviate the worst credit problems. Any further aid, says Block, must come not from Washington but from state governments. But some banking interests are holding out for what they hope will be a better deal from Congress. At least 21 bills on the subject have been introduced, and the Democratic-controlled House is likely to move quickly on some version of the legislation when Congress returns from its recess Feb. 19.

Some would raise the level of loan guarantees to 4 billion, others would do away with requirements that banks write down principal and interest rates to their borrowers or that farmers show a positive cash flow in order to qualify. Still others would offer advances on crop loans to farmers that otherwise Credit crisis By JIM DRINKARD The Associated Press WASHINGTON The agricultural credit crisis has dominated debate on farm policy for several weeks, pushing into the background consideration of long-term issues, such as subsidies and price supports. The complex and emotional issue has pitted farmers and some lawmakers against the administration and has raised the question of whether the federal government should come to the farmer's rescue. Here, then, are answers to some of the most frequently asked questions about the credit crunch: Who is In trouble? Farmers all over the United States are having difficulty getting new loans, and paying back existing ones. But the situation is most severe and is likely to cause the most bankruptcies in the Midwestern Corn Belt.

Iowa, Nebraska, Minnesota, Missouri and Illinois are most often mentioned, with a handful of surrounding states close behind. Estimates have been that as many as 40 percent of farmers in the region about 230,000, or 10 percent of the national total may be unable to plant spring crops because they were unable to obtain loans. Most seriously affected are highly leveraged producers, most of them relatively young and with midsized farms. The bulk of U.S. farmers either have manageable debt loads or are debt free, and are making money.

What caused the crisis? The 1970s were boom times for agriculture, with export sales soaring. Farmers were encouraged by land-grant universities and by their bankers to expand, even if it meant borrowing money at high interest rates. Farmland was appreciating in value so rapidly that the increased equity would keep farmers financially secure, it was argued, much like a homeowner who finds his house is worth far more than the original purchase price. But the boom came to a rapid end with a global recession early this decade. Inflated land values plummeted, and crop prices fell off as export demand declined.

Farmers were caught with high loan payment commitments, but their collateral farmland was now inadequate, and their crops didn't bring in enough to cover the payments. Bad weather aggravated the problems in some areas. How serious Is the problem? Those on all sides of the issue agree that the squeeze is causing serious problems, at least in the hardest-hit parts of Lockdown continues at Nevada prison INDIAN SPRINGS, Nev. More than 1,000 inmates remained locked in their cells at an overcrowded medium-security prison Sunday following a racially-motivated fight that left seven prisoners injured, officials said. "We had a white inmate stab a black and the thing just snowballed," said Capt.

Walt Sanders at the Southern Desert Correctional Center, 40 miles northwest of Las Vegas.Sanders said. "We've got a 60-40 ratio of blacks and they just went around getting revenge on anyone they could." Armed guards finally broke up the disturbance by firing warning shots into the air and sending some 600 fighting prisoners back to their cells. "They were milling about, running around and fighting," said Sgt. Bernie Daniel, a prison guard who faced the inmates in the yard. "There were groups of 30 to 40 inmates chasing individuals, throwing rocks." Missing 2-year-old turns up near home MOUNT AIRY, N.C.

A lightly clad 2-year-old boy was found early Sunday huddled in freezing temperatures with his three puppies in a thicket near his home, from which he had wandered away about 12 hours earlier. Robert Campbell, the object of a hunt by 150 searchers, disappeared shortly after noon Saturday when he chased a puppy that had run into a field near his family's home, said his mother, Debra Campbell. "I went up a mountain, and I went down a mountain, and I fell, and I got scared and hid behind a tree," the child told Theresa Wilson, a Mount Airy resident who found him shortly after midnight. Robert was in a thicket about a quarter-mile from his house with the puppies, Mrs. Wilson said.

He was wearing light clothes, without gloves or hat, during a night when temperatures dropped below freezing, she said. Fast-moving fire kills five children SOUTH MIAMI, Fla. A fast-moving fire killed five sleeping children in a wood-frame house early Sunday and injured the mother of one of them as she tried to people 'sitting ducks' adoption, experts say lines could bail out of the passenger business, is again fighting for survival more so, some supporters say, than at any time in its history. Amtrak has bought nearly 1,000 new cars over the past decade; replaced its old locomotives; purchased a computerized reservation system tied in with the airlines; built one of the industry's most modern repair facilities; and is about to finish a $2.1 billion track improvement project along the Northeast Corridor. It has improved its on-time record to better than 90 percent and has seen a sharp reduction in complaints.

The Reagan administration announced earlier this month it wants to eliminate federal subsidies for the railroad, a move that most railroad experts say would force it out of business. Amtrak, which carries 20 million passengers a year between about 500 communities in 43 states, is getting 684 million from the government this year. It has asked Congress for a similar amount for the fiscal year that begins next October. But says Transportation Secretary Elizabeth Dole: "At a time when defi rescue the children, police said. Two adults and two children escaped without injuries before the house, which was shared by two families, was engulfed in flames around 12:30 a.m., said Metro-Dade Police Department homicide detective William Ryan.

"They were trapped in the house," police spokesman Larry Chilson said of the victims. "The fire spread so quickly. They didn't have a chance to get out." Pronounced dead at the scene were Shakita LaShaun Walker, Lamont DeW-ayne Walker, Shonda Patrice Walker Yvette Walker, 2 months; and Cory Walker, 14 months, said Ryan. Delphine Walker, 24, the mother of Cory Walker, suffered bums to her hands, feet and legs as she tried to rescue the children, Chilson said. She was taken to the burn unit at Jackson Memorial Hospital, where she was in serious condition in the bum-care unit, officials said.

16 injured after car rams restaurant MARRERO, La. A car slammed into a fast-food restaurant, sparking a natural gas explosion that erupted like "a big blue flash" and injured 16 people, authorities said. "It was like the world came to an end," said Jefferson Parish sheriff's Cpl. Danny Rees, who evacuated the Popeye's fried chicken outlet and nearby businesses just before the explosion Saturday night. "I thought the good Lord was speaking to me." The car, whose driver fled the scene, plowed through a natural gas line as it careened into the restaurant, said State Police Trooper P.

Stanford. Young Kennedy has new artifical leg OKLAHOMA CITY Edward Kennedy who lost his right leg to bone cancer 11 years ago, has had a new, lighter artificial leg fitted at the Sabolich Orthotics-Prosthetics Center. The 23-year-old son of the Massachusetts senator arrived Friday to be fitted with the new leg designed by center head John Sabolich. Sabolich said Sunday his design is more pliable than the old-style prosthesis which must be fitted with a painful trial-and-error method. He also said its motion is smoother and should eliminate some painful rubbing.

COUCH 34.50 With Every Couch Cleaned The Scotchgarding it FREE! ake avoiloble at regular Scotchgardtng Pre-Sporting Deodorize All work personalty done by owner to otwre you good quality work. Serving you seven days week! CALL 425-0428423-3345 Special! 423-5454 OIL 31385 dominates the Midwest. Indicators of farm financial health farmers' debt-to-asset ratios, the number of failing farm banks, overdue accounts at seed and supply stores all are increasingly bleak. Members of Congress from the region have warned that if left alone, the problems eventually will translate into higher food prices in urban areas, and some major banks already are suffering because of their investments in farm lending. What is the government doing to help? Last September, on the eve of a farm-state campaign swing by President Reagan, the administration said it would restructure its own loans to farmers made through the Farmers Home Administration and would offer federal guarantees to minimize risk to banks that agree to write off at least 10 percent of loan principal to troubled farmers.

When the S650 million in guarantees went largely ignored and pressure from Congress mounted, Agriculture Secretary John Block announced new rules designed to make them more attractive to banks. Desperate for illegal NEW YORK (AP) Desperate people seeking to adopt healthy infants sometimes are willing to go to any lengths, making them easy targets for fraudulent adoption rings that promise babies for a fee and never deliver. "You've got about 40 couples for every child needing a home," said William L. Pierce, president of the Washington-based National Committee For Adoption. "You've got a lot of people who are willing to prey upon the desperation of these couples." Five members of an international adoption ring were charged last week with bilking more than 200 prospective parents in 40 states out of hundreds of thousands of dollars on the promise of getting children from Mexico for adoption.

The victims paid between $300 and $6,000, the indictment said. "I'd say it's fairly commonplace," said Dawn Putnam, a spokeswoman for the U.S. State Department's Bureau of Consular Affairs, referring to adoption practices that victimize Americans seeking Coupon Beef Rib $Q95 Dinner 0t- save 1.00 ERIK'S One coupon per person Expires 3-6-85 J. go a a foreign children. "You have to work with a reputable adoption agency, that's the main thing." There are only about 50,000 healthy American infants available for adoption each year, and an additional 8,500 infants are brought from other countries annually, according to the National Committee For Adoption.

There are two million couples with infertility problems, and "for most of those folks, adoption would be something they'd like to explore," said Pierce. "That doesn't count the people who have three girls or three boys and would like to adopt a child of the other sex." However, birth control and abortions are limiting the number of unwanted babies. And young single mothers are no longer stigmatized by pregnancy and decide more often to raise the children themselves. Black children are more available than whites, but the demand is greater for white children. Children who are 5 years or older or the physically handicapped are wouldn't be available until harvest time.

Aren't such loan guarantees just a bailout for inefficient farmers and their lenders? Some in the Reagan administration believe the aid is unwarranted. Budget director David Stockman, in blunt testimony on Capitol Hill earlier this month, said farmers are no different from other businesses that go under and that such politically driven responses to financial "crises" have contributed to a $1.68 trillion national debt. Senate Majority Leader Bob Dole, said he "never had the view that the government should prevent people from failing, including farmers." Farming and banking interests argue, however, that many of their problems stem from government-caused conditions: high interest rates, the strong dollar, and farm subsidies that offer incentives to overproduction. Agriculture accounts for one-fifth of the gross national product and is important in the U.S. balance of trade, they argue, and it is in the national interest to preserve its financial health.

more readily available for adoption than healthy infants. Some prospective parents advertise for children in states that allow them to do so. Others turn to individuals including attorneys and physicians who may legally arrange private adoptions for a fee. "It's a very big business. It is our estimate that over half of the adoptions in the United States today are done by individuals," said Pierce, whose committee advocates the elimination of non-agency adoptions.

Childless couples are more frequently becoming victims of fraudulent brokers, said Ray Maurer, executive director of the North American Council On Adoptable Children. "We're all conditioned as youngsters that our mission in life is to have babies," Maurer said. "When people get adoption fever, it's no different than when they house hunt and see a home they fall in love with and have to have. They're just sitting ducks." 3 Dinner. 32 1 Coupon Lasagna $Q75 Dinner a 3 .75 save 1.00 ERIK'S One coupon per person Expires 3-6-85 lmm mm FEBRUARY SPECIALmTlZmmm I Paying a little more, means better quality work! LaNore's Carpet Upholstery Care I Take an Erik's Entree Home for Ivery Month there a New ANY 2 ROOMS $12.50 3 RMS.

$18.50 4 RMS. $27.50 5 RMS. $33.50 Expire 22885 You've worked all day. The last thing you want to do is home and cook dinner. Erik's DeliCafe has the solution for you with Erik's Dinner Entrees.

Choose from Erik's Quiche, 12-Chicken, Beef Rib, or Lasagna Dinners which include; buttered roll, and your choice of soup, green salad, or deli salad. Deodorizers On One Room Fret Hallway Cleaned Most Furniture Moved Additional Coil for Heovv Pire Mrum mm 0 motorcapo 1215 Water Street Santa Oui, CA 95062 lie MERCEDES DIESEL OWNERS Krifc's IH-liCalt I'JM Coupon Quiche $925 Dinner 3.25 save 1.00 One coupon per person Expires 3-6-85 EMITS LUBE OIL FILTER 12 Coupon 1 1 Chicken Dinner 3 wtf75 save 1.00 ERIK'S One coupon per person Expires 3-6-85 INCLUDES: LUBRICATION SERVICE O.E.M. FILTER SEALS QUAKER STATE 20-50W By appointment only. Exp..