European Stars And Stripes (Newspaper) - June 10, 1985, Darmstadt, Hesse                                Page 10 the stars and stripes june 1985 columns comments James Reston tax plan or selfishness Ueber Alles chairman the topic of today political game of the week is what our panel thinks about president Rea Gans tax Reform lets begin with Springs absolutely marvelous under the presi dents everybody helps the country by helping not Only the Rich but the poor pay less and have More to so that there will be More More jobs and More Money in the chairman thank grumble chairman this is nonsense chairman i must ask to wait your i recognize Medhurst As a philosopher and i have to remind you that taxes have divided the human race Ever since the beginning of the roman Empire and the foundations of this in the Middle chairman if you could skip a couple of wed be much Medhurst i just wanted to say that for Many centuries there has and still general agreement about the ends of including peace and but that on the Means to achieve these desirable ends including who should pay for them there has always been wild chairman thank i must leave time for the the the and the now if you will kindly Stop jumping up and you Are recognized for no More than one crumble i didst mean to be a chair but i thought you were asking the wrong chairman of crumble i just thought that if we were running in the Hole at about billion a year and getting in Hock for a couple of this was a funny time for the president to try to make everybody feel my old Man used to say that in trouble you had to fish or Cut and chairman i will thank you to keep your old Man out of crumble but he was a pretty savvy he voted for Reagan and reagans balanced budget and All that stuff about getting All governments off our but he wonders where the old Gipper has been chairman your time is i now recognize senator senator goal i guess i agree with most everything that been said unless i consider it in for both tax reduction and tax i hate the democrats but need their i just Cut Over billion out of the budget but you can scarcely notice the and next year i have to decide whether to run for or run for Tom Wicker a which might be chairman i now recognize representative Crosty of representative Crosty there is no great Between the republicans and the democrats about All this except there in Power and were out Between balancing the budget and tax obviously we need it should be possible to Deal with the bal Ance of military Power in the world and in outer provided we have the right balance of Power in the with the democrats in control of the Senate after the next election and the right speaker of the House during the rest of the we should be Able to sort things and i have a suggestion about who should be the speaker on the Hill after tip Oneill goes Back chairman i think i know what you have in but lets hear it from the voice of the Weakes dont watch what we listen to what we this is the second american ask not what you can do for your but what you can do for yourself selfishness Ueber Alles listen to the his tax Reform As he is a Chal Lenge to lift us into a future of unlimited an endless horizon lit by the Star of guiding America to crumble chairman what is this rubbish chairman you really must control youre going too grumble i but i still think you have the wrong we cant balance the budget or Reform the tax code until we balance and Reform chairman youre 1 guess Well have to talk about All this new York times news service reagans Conrail Giveaway would be fiscal disaster on its the Reagan administrations pro posed Sale of Conrail looks like a bad Deal for the taxpayers and a steal for the Norfolk Southern the chosen beneath the this Complex transaction looks even worse a government Giveaway that could severely reduce freight hauling Competition and further damage already hard pressed if the Sale is approved by Norfolk South Ern will pay Only billion for 85 percent of the Stock of a freight line that has been the beneficiary of billion in Federal investment since 1976 has a Book value now in excess of billion has been profitable since 1981 netting just under half the Purchase in 1984 has billion Cash on hand million in a Cash Reserve and about million in excess funding for its pension resurrected by the government in 1976 from the remnants of six bankrupt including the Penn serves the Industrial North East and runs As far West As Chicago and Louis if its Miles of track were added to Norfolk South erns in the Southeast and Middle the largest freight Hauler in the nation would be Arlen has warned that the merged lines with More than Miles of parallel track would command approximately 60 percent of the rail Market in 96 percent of the Market in Northeast 70 percent of the Southern Michi Gan steel 85 percent of the Cleveland Grain traffic and 94 percent of the eastbound new England new Yor Texas corridor rail citing a department of Justice study that predicted a very serious ant competitive Specter told the Senate that the steel Industry would be particularly hard hit by removal of the present Competition Between Conrail and Norfolk As rising freight costs forced rising the department of he had found that such effects would be Felt in 21 states and 100 freight Elizabeth the Secretary of whose department negotiated the proposed has said the ant competitive effect would be averted by Norfolk Southern Selling off Conrail lines that parallel its the she also has agreed to operate Conrail for at least five years rather than immediately Selling off its assets and to keep at least million Cash on but the Low Price and the competitive advantage to Norfolk Southern Are not the Only aspects of this Complex Deal that need congressional Conrail has net depreciable for valued for tax purposes at More than billion with these in Norfolk Southern would be Able to save hundreds of millions a year in but remember that Norfolk Southern is buying those assets for Only that Means the corporation can subtract a smaller annual depreciation loss from its earnings than Conrail has been thus run Ning up Conrail profits on at those increased profits probably fully sheltered could make Norfolk Southern Stock considerably More attract Conrail still owes the Federal government billion the government has agreed to forgive this even More the department of transportation has arranged with the internal Revenue service that this billion gift will not be charged As taxable income to Norfolk is there an alternative a group of investors organized by Morgan Stanley and has made another offer but at the same billion Price although the Morgan Stanley group says its offer would be an interim step toward making 60 percent of Conrail Stock available to the Specter has introduced Bills that would Stop the Sale to Norfolk Southern and substitute a pub Lic Stock offering a step favored by Conrail Well regarded and which might bring in or but Dole believes that would not prom ise Conrail users the stability that Norfolk southerns experienced management could or Congress could simply refuse to sell Conrail to if the line kept on making its Price would surely new York times news service