Page 6B EUGENE REGISTER-GUARD, Thurs., Nov. 29, 1962
Italian 'Capitalism' a Mixed Economy With State Involved in Almost Every Field Air Merger Veto Dims Hopes on Like Proposal
By EUGENE LEVIN
Of the Associated Frill
ROME The citizen1! break
fast included fruit marketed
by the state. As he ate, he
glanced through hia morning
newspaper owned by a state
firm.
He dressed in a suit made
of cloth from a state-owned
mill.
The car he drove to work ,
was constructed in a state
plant.
At the office, he used a
telephone provided by a state
company. He lit a state cigar
ette with a state match.
On his way home, he pur
chased gasoline at a stale
owned filling station, had a
drink at a state bar and dined
in a state restaurant.
At borne, he switched on
lights using stato power. He
took Ice from a refrigerator
built hy a state company.
Then he settled down to
watch television with only
two state-operated channels
to choose from.
Next day he left on a busi
ness trip, planned by a state
controlled tourist agency. He
traveled on state-owned
trains, planes and ships, and
stayed at a state hotel.
He was an Italian, living in
"capitalist" Italy today.
. He was not confined to us
ing only state products. In
some cases he could have
turned to services and goods
provided by priva'te firms.
But hia choice demonstrated
that July more than any
other Western country has a
mixed economy in which the
state is actively participating
In almost every phase of in
dustrial and business activity.
Now the state is taking
over another field electric
power. A bill nationalizing
power is in the last stages of
parliamentary consideration.
About 25 per cent of Italy's
electrical output already is
produced by state-controlled
companies. Nationaliza
tion consolidates these com
panies and private industries
under a tingle state agency.
The power nationalization
represents another step for
ward in state industry started
by Benito Mussolini:
In 1933 he set up the Instl-
Pair Subpoenaed
PORTLAND tUPD Postal in
spectors laid Thursday two per
sons have been subpoenaed to
appear before a federal grand
jury here Dec. 13 in connection
with land sales promotions at
Lake Valley, 20 miles south of
Burns. An inspector said the
subpoenas were part of a new
interest by the postal depart
ment into sales of desert type
land in the West.
tute per la Reconstruzione
Industrial (Institute for In
dustrial Reconstruction) as a
depression emergency meas
ure. It took over industrial
stockholdings from ' banks,
enabling the banks to shed
shares that were rapiUy los
ing value.
In the postwar struggle
for recovery, the Institute be
came a way of Italian eco
nomic life, a super holding
company with a book value
of $2.25 billion.
Its industries are worth
much more than this. ,
The Institute controls other
holding companies. These in
turn, control other firms.
Somei'jiies the Inititutt has
100 per cent ownership, aa it
does in the big Alfa Romeo
automobile plant. Sometimes
it doesn't,
For example, the Institute
holds 80.8 per cent ' of the
alack in the Finslder holding
company. Finsider In turn
holds 61.2 per cent of the
stock in the Dalmine metal
firms. It is hard to figure the
government interest in com
panies down the line, but gov
ernment control extends over
a wider area than the actual
value of state shareholdings
indicate.'
. Private equity in Institute
firms has been estimated at
40 per cent.
Institute companies employ
871,000 persons. It-controls
four-fifths . of j shipbuilding
capacity. It turns out 53 per
cent of Italy's steel and 85
per cent of its pig iron, IRI
controls the biggest banks.
Institute lirms mike parts
for missiles, household appli
ances, heavy machinery, opti- '
cal goods, textiles, 'trucks, ra
dar, machine topis, and doz
ens pf other products. IRI
also controls the State radio
television network, Italy's
biggest shipping companies
and the Alitalia Airline.
The Institute is not the
only big state , holding com
pany. In recent years it has
been overshadowed In growth
by the Enta Naiionale Idro-
carburi, bunt Dy tne dynamic
Enrico Mattel, who died in a
plane crash in October, This
National Hydrocarbon Au
thority started as an oil mo.
nopoly. Now it controls syn
thetic rubber plants, a news
paper, motels, restaurants,
bars and tanker fleets.
Italy's major railways are
state-owned and operated by
a separate authority. All to
bacco products are made or
imported by the state for tale
in authorized shops.
And the state-approved to
bacco shops handle another
state monopoly as a sideline
salt.
By ROGER LANE
or the Associated Press
NEW YORK Preliminary
government rejection of plans
for a merger of American and
Eastern airlines cast a shadow
Wednesday over similar ideas of
other financially ailing transpor
tation companies.
For example, it may set back
prospects for a long-discussed
get-together of Transworld Air
lines and Pan American World
Airways, a proposal yet to be
formally hatched.
The adverse recommendation
Wednesday by a Civil Aeronaut
ics Board examiner in the
American-Eastern case could
also have an effect for merger
minded railroads by strengthen
ing the hand of opponents of
such consolidations.
However, a different agency
the Interstate Commerce Com
mission sits in judgment on
railroad merger petitions, and
railroadmen contend parallels
between the two forms of trans
port are not close.
In recent years, the ICC has
looked kindly on railroad
unions, and has given prelim
inary or final blessing to a long
string of them since 1957.
One important point: The
American-Eastern case is not fi
nally decided. The next step is
for formal arguments before the
full CAB, then submission of
briefs and after that a decisive
ruling.
There has been a ferment of
merger talk lately within the
industry, at one time or another
involving almost all of the 11
trunk carriers, but no specific
plans have jelled.
Presumably, smooth sailing
for American and Eastern
would have signalled a rash of
other formal proposals for de
fensive reasons, if for no other.
In his recommendation, Ex
aminer Ralph L. Wiser laid
heavy stress on what he saw
as monopolistic tendencies of
the American-Eastern plan,
which would create the world's
biggest airline.
American now ranks second
and Eastern fourth in size
among domestic trunk airlines.
United Air Lines, merged last
year with near-bankrupt Capital
Airlines, is the biggest.
Between them, American and
Eastern haul about 35 per cent
of the nation's long distance air
passengers, excluding overseas
traffic.
Wiser's monopoly findings are
likely to be injected by oppon
ents of rail mergers into several
major proceedings pending be
fore the ICC.
They also paralleled argu
ments advanced by rival air
lines against the American-Eastern
proposal.
Wiser gave short shrift to con
tentions of American and East
ern that merger was the only
answer to airline industry fi
nancial distress evidenced by
Itrunkline deficits that totaled
$34.6 million in 1961, but which
probably will be a small frac
tion of that this year.
The examiner said deficits
were not due to excessive com
petition, lather to a switch
since 1958 to speedy and costly
jet liners, and failure of traffic
to build up anywhere near to
their greatly enlarged passenger
carrying capacity.
American and Eastern wit
nesses had estimated savings
from merger at $50 million a
year through elimination of
equipment and other duplica
tions, and said a combined op
eration would head off future
necessary capital expenditures
of another $75 million.
Health' Service Back's
Ban on Watch Sales
WASHINGTON fOPD The U.S.
Public Health Service says the
New York fitv han nn thA
of radium dial pocket watches
just maKcs good sense.
A PHS spokesman said the
action of the citv's health An.
partment this week "is consis
tent with the widely accepted
position of scientists everywhere
that anv radiation that ran hp
avoided should be avoided."
Botched Job
AREZZO, Italy W) A pair of
thieves broke into a jewelry
store and made off in a fancy
sports car with $16,000 worth
of merchandise, but they
botched the job. Police found
the car with most of the loot
abandoned.
EUGENE REGISTER-GUARD, Thurs., Nov. 29, 1962 Page 7B
Marketing Tips Published
To Help Woodland Owners
Helps for the small woodland
owner in marketing timber
downed in recent storms may
be found in a new circular now
availablo from county extension
offices and Oregon State University.
Called "Marketing Woodland
Products," the circular is valu
able to anyone who is going to
be moving timber to market
now or in the months ahead,
says Gary Sander, forest pro
ducts marketing specialist at
OSU.
Small woodland owners mav
lose money if they sell their
trees when they don't know
what they have to sell nor the
best market outlets, continues
Sander.
The bulletin will help evalu
ate a fair price for timber, sug
gests methods of determining
markets, and reminds of extra
help available from county ex
tension agents and farm forest
ers. Copies of the circular may be
had on request at county exten
sion offices or by writing the
OSU bulletin clerk, Corvallis.
Ad Executive Dies
NEW YORK (U?0 Roy Sarlea
Durstine, 75, a founder of the
advertising agency Batten, Bar
ton, Durstine & Osborn Inc.,
died Wednesday.
FRESH! TASTY!
Marshmalloiv
Treats
Busy Baker. Pink, White,
Toasted, Lemon, Orange.
Snack-time treat. Pkg. of 24.
3fc
FRIENDLINESS CLEANLINESS WIDE VARIETY BEST SPECIALS
BEST MEATS BEST PRODUCE LOW EVERYDAY PRICES
Choose From These Famous Pillsbury Moist . . .
Cake
mfoi
White, Pineapple, Orange, Choc. Fudge, Spice, Pink
Lemonade, Dutch Chocolate, Caramel and Golden Yellow.
Mrs. Wrights Mix
Fold's Coffee
Edwards Coffee
( " j
pkg. sLttiiiwS tm'tufirnS
Reg. Pkg. aW-y J Jf
1
2 ib fl09 Mb E
can I , can Jl
2-ib. 05 ub. G! jc
can E can
White, Yellow,
Spice, Devil.
wmmwwnnii 1 1 ill, it w
Extra Fresh! Crackiin' Good!
Peanut Brittle
Roxbury kitchen
candy. Only the f i
gredients go Into
llcious candy treat.
fresh fl rH
nest In- 14 or. A.I 11 F
thisde- nka. fll
Your Money's Worth More at Safeway . . .
BUMBLE
BEE
Chunk style, Idea! for casseroles, No. Vi
salads, or sandwiches. Can
& MEAT BALLS
Dennison's,
ready to serve.
Spaghetti
Dog Food
Super Meat
mil r.
For a balanced diet.
ARMOUR STAR
Nob Hill Coffee
Nob Hill Coffee
Saran Wrap
Apple Juice
Pineapple !
Aromatic Flavor r)e
Mb. bag
Always iresh. $101
21b. bag. 1
netain tooa nrj
treahness. 25 it. roll
Town House
Airway Coffee freshness, l ib bag
51e
Highway. Halt
lieu. IV, flat
35'
4S 01, can 43
J For $00
Airway Coffee Smart co" SuX$l"
Pancake Flour B',,yCag$l29
303 can
Pie Cherries,TaXpS89'r9d'4-$l00
1J1 m DiaS iJ5
3. ib.
can
BONELESS WASTE FREE
Fully cooked, ready to heat and serve. No carving
problem here.
13
intra Larae
Hggs
31 W
Dozen
EXTRA FANCY
Red Delicious Apples
Lb. A Ac
FINEST Farm-Fresh Produce
RED DELICIOUS
from the Hood River Valley
lbs.
w
pi K White Magic, gentle
bleach Half Gal.
35'
.n; and Macaroni. Sunrise. J"fl
OpaCjneill 4-lb. package 33
Clover Honey Empress 67e
SAVE ON
Pack Train Syrup 3 Ior $1
00
Instant Milk Sr,.Makes Pkg. 99e
Rich in Flavor . . . Velvety smooth Texture
Your Money's Worth More at Safeway . . .
55
PLUS THE ADDED BONUS OF VALUABLE
GOLD BOND STAMPS
n if m
U.S. No. 1 Russet
POTATOES
Perfect baker. Won
derful mashed fluffy
and white, and
served with butter.
And check this
money-saver price.
10 39'
Premium Bulk 10-lbi. 59 c 20-lbi. 75 C
Head Lettuce
or Avocados
Your
Choice
Pg Armour Star, skinless.
A fSrilCS FuU pound packages lb.
(mm
Snow Star 4 Flavors: Vanilla, Strawberry, Choco
late or Neapolitan,
Bacon
Armour Star, freshly
smoked and sliced.
Saieway, thick sliced.
r
59
Cut
Up
Strawberries
Scotch Treat. Served with Lucerne
Ice Cream
LIBBY
Orange Drink
frozen fruit
drink. 6 oi. can
6 - $1
00
10-ox. pkg.
14 OUNCE
FOR
Yds Dog Food VZ 6 59
Inslani Coffee ch,!e "".r 87c
f.A.m VJ' Banquet, Banana, Lemon JQc
blGam rlCS Chocolate, Coconut Cr. l3
Betty Crocker 3 i-oz. M IT e
Fryers
Ground Beef
Chuck Steaks
Manor House, USDA g c
Grade A. flash frozen lb. jH
Quality con
trolled 100
pur beef. lb.
Blade cuts.
USDA Cholc
grade beef lb,
43'
69
Armour Star Pure Pork
100 pure pork, delicately seasoned. Large
"patty-size" roll.
2-lb.
Roll
FRESH BAKED GOODS
DELICATESSEN BUYS
SKYLARK BREAD
Rye, Power Packed, Slenderway. oflf
SKYLARK BUNS
Hamburger or Coney style.
29c
33
Pkg
Caramel Apple Rolls
Mrs. Wright's delicious
breakfast pastry treat. 12-oz.
Serve hot for snack Pg.
time, too.
Sliced Cheese
Safeway American, Pimento,
Swiss.
DRESSING CREAM
Lucerne Sour Cream or
1000 Island.
EGG NOG LUCERNE
Ready to serve. Rich & smooth.
8-oz.
pkg.
8-oz.
ior
Qt. '
35c
59c
Christmas is Close . . . Give Santa a Helping Hand
Beauty Parlor Set Jimmy Jel Toy
Deluxe girl's toy, complete with
accessories. Low price, too.
eo.
11
Boy's favorite. Makes you feel you are
flying. Battery operated.
12"
Pi
zza
Zesi
Zest
Deodorant Soap
Urg. bars
2- 33e
Refrigerated pkg.-
Cream o! RiceHot !. ia . 47
iwppi "1(1" Liiuid u&" RQ
dweei 1U substitute (I oz. 03
Get that Zest slow
1 , All
Bath size "M
T All rlrr" (Mercrnt. $109
p.-.i Fast cleanser.
tOmei 14 oi can
2ror35
Salvo
Downy
ot. pkg.
Petrrurnt tablet..
Save! 28 oi.
Fabric Softener.
17 ounea bottl
Prices effective Thursday, November
29 through Sunday, December 2 at
Safeway In Eugene, Cottage Grove,
Junction City and Springfield. We re
serve the right to limit.
.43
YOUR CHOICE
MACARONI & CHEESE
Meatless Spagheiti
Baked Beans
Quick os a wink.
Slip Into the oven,
heof, serve.
16-ot.
carton
Help Them at Home and In School
High School Encyclopedia
To Earn More To Learn More
The Golden Home and High School Encyclopedia Vol.
1 thru 1 1 ovailable.
No. 1 AQc All $-129
only 1m Othen I
mil uim
9
Fresh Bread
Ovenjoy, white or wheat.
Large 22'j-ox. loavei.
Allsweel Margarine
4 $1
$400
Mb. pkg.
29
Safeway Gift Order
Soy "Merry Christmas" with a Gift Order redeemobl
at any Safeway store. Denomination! of $5.00, $7.50,
$10.00, ond $20.00. The ever-populor "Perfect"
Christmas gift.