Article on resurgence of diversification activities in rr indus in Midwest; attributes trend to continuing losses to trucking, as well as to increased operating expenses and reduced revenue caused by harsh winter; notes some rrs that are planning or have completed diversification moves; says ICC regards conglomerate and holding co movement as weakening rail system and seeks legis to control it; train illus (M)

Some MidwestRailroad,s Find It Pays to Diversify

News Summary

LIRR and commuter lines operated by Conrail are expected to resume normal service (S)

`Normal’ Monday Due as Snow Hangs On

DENVER, Jan. 22&#8212;Willis Reed got thrown out of the game, Dan Issel of the Nuggets made a foul shot with two seconds to play in the fourth quarter, Earl Monroe did not get free when it counted. And it all helped the Knicks beat Denver, 143.141, in overtime today and end a five-game losing streak.

Knicks Triumph, 143-141 ‘n Overtime

NYC Mayor Koch answers telephone calls from listeners during 2-hr live broadcast on WCBS-radio (M)

KOCH FIELDS QUERIES IN RADIO BROADCAST

Graphic Sciences Inc is introducing new facsimilie machine for sending documents by phone lines in less than 1 min; machine will take aim at established leader of ultrafast facsimile mkt, Rapifax 100; other cos reptdly readying such machines for Amer mkt in '78 listed; illus (M)

New Entries Are Expected In Quick Phone Facsimiles

Latest scandal in London options focuses spotlight on Washington's refusal to allow licensed and regulated American commodity exchanges to trade in these instruments. Page D6.

Commodities

Jan 23: Sec Vance expects Israel and Egypt to resume talks within 10 days despite recent sharp exchs; says talks will take place either directly or through 'shuttle' mediation by Asst Sec Atherton, whom Vance has left in Middle East indefinitely to act as intermediary without having US seem to dominate talks (L)

Vance Expecting Israel and Egypt To Renew Effort

Article on nearly all-white PS 195 in Rosedale sec of Queens, which placed 1st among 629 elementary schools, and racially-mixed JHS 239 in Coney Is, which for 2d yr ranked 1st among 177 jr and intermediate schools; notes PS 195 offers traditional curriculum that stresses basics, while JHS 239, known as Mark Twain, offers program of minischools in which child may specialize in various talent areas; some parents and school officials comment NAACP atty James I Meyerson comments; class illus; Mark Twain JH principal Dr Bernard Fishenfeld illus (L)

New York's Best Public Schools Defy Racial  Stereotyping; The best public school in New York City has (choose one):; Reading Level Rises Sharply; 60% Are ‘SP’ Students; Getting Back to Basics; Best New York Public Schools Defy Any Stereotyping by Race; ‘Not Left Unatended’; Children Not ‘Tracked’

Lr comments on Mayor Koch's argument that NYC munic workers should reside in city; Koch cartoon

Water Board and Its Tributaries

Traditional power struggles among Govt agencies seen intensifying since Carter took office; article traces increased jurisdictional disputes to fact that Carter has given his Cabinet members more direct authority over their depts and insisted that Secs work out disputes among themselves, and that he has emphasized reorganizing Govt, opening way for debates over how best to consolidate overlapping jurisdictions; some ongoing disputes detailed; MIT Prof Alan Altshuler calls such open competition healthy, but former OMB Dir Roy L Ash says Cabinet was not meant to serve as deliberative body; Pres Carter is said to be frustrated over 'turf battles, but determined to continue delegating decision-making responsibility to his Cabinet (M)

U.S. Agencies Clash Over ‘Turf’

Corp and Wall St execs, including Irving S Shapiro, Albert H Cox Jr and Robert H Baldwin are critical of Carter's tax proposals for business, ints; pors (M)

Executives Fear Higher Tax Bills As a Result of Carter's Proposals

Article examines jr hockey leagues in Canada, considered training ground for NHL; illus (L)

Road to Pro Hockey: Cana geOrdeal

Israeli Cabinet unanimously agrees to postpone sending delegation back to mil talks in Cairo despite US efforts to continue talks; Begin, after 3-hr Cabinet meeting, blames deteriorating contacts on 'campaign of grave vilification against Israel'; cites anti-Semitic expressions in Egyptian newspapers and 'extremist, aggressive speech' by Sadat to Parliament (L)

ISRAELIS’ DEPARTURE FOR MILITARY TALKS PST OFF BY CABINET

Comment on REITs notes rise in property values is aiding their recovery; REITs debt to 20 major banks has fallen from $7-billion in '74 to $4-billion in mid-'77; graph shows loans to REIT from '74 to '77 (M)

Rise in Property Aiding Recovery Of Real Estate Investment Trusts

Carter proposal calls for Govt to pay 35% of interest costs on taxable bonds sold in '79 and '80 and 40% thereafter; is aimed at limiting tax avoidance opportunities for wealthy and aiding munics obtain low-cost financing; Adm holds savings for munics in form of lower interest costs from tax exemption total less than 75% of taxes Treas forgoes; pledges Fed Govt will not control purposes for which funds are borrowed; Public Securities Assn exec dir Roger Klein, opposing option, holds it will eventually be used as credit allocation tool (M)

New Call for Taxable Bond Option Stirs Strong Industry Disapproval

Pres Carter's expected exec order reorganizing intelligence services will prohibit CIA from covert activities within US

Intelligence Services Reorganized With Tighter Rules on Surveillance

Bjorn Borg defeats Jimmy Connors; illus (M)

Connors Is Toppled By Borg, 7‐6, 3‐6, 6‐1

House Minority Leader Rhodes calls Carter's proposed $25-billion tax cut good start but not large enough to accomplish things necessary for econ, TV int; says $51-billion tax cut is necessary (M)

O'Neill and Business Wary on Tax Plan

Treat, after 6 yrs of inactivity, has begun to enforce Bank Secrecy Act, which requires US taxpayers to rept to Treas on their foreign accts; Govt, under Cong prodding, has brought number of indictments and levied some large civil fines in last yr and currently probes several large Miami and NY banks; Treas aide Robert J Stankey Jr indicates Treas disseminates data, which can be crucial to probes of narcotics traffic, organized crime and pol corruption, to other Govt agencies, int; recent cases noted (M)

U. S., AFTER A LAPSE, BEGINS ENFORCEPIIENT OF BANK SECRECY ACT

Article on India's decision to ban export of rhesus monkeys following repts that they were being used in mil weapons testing in US; illus (M)

Export Ban on Monkeys Poses Threat to Research

Detective Mary Jennings of NYC Pickpocket and Confidence Squad estimates there are some 1,000 fortune tellers in NYC; all are women and 60-70% of them operate in Manhattan; their numbers have grown 30% in 5 yrs; fortune telling is illegal only when person claims to possess occult powers, such as those necessary to remove curses and evil spirits; illus (M)

FORTUNE TELLERS SEE PROFITS IN NEW YORK

Article examines increased growth rate of Yokohama, Japan, which will soon become nation's 2d largest city; illus (M)

Yokohama uietly Becoming japan's  Second Best City

NYS Repubs, with Dem Lt Gov Mary Anne Krupsak assured of renomination, are pondering whether to include woman on their ticket; Assembly Repub minority leader Perry B Duryea, gubernatorial hopeful, says he would be 'thrilled' to have woman on ticket; Sen Warren M Anderson, Repub majority leader, asserts it would 'very foolish' for Repubs not to have woman on ticket (S)

Levitt Shouldn't Seek 7th Term As Comproller,Eposito Says

The credit markets stabilized last week after declining in price for seven consecutive weeks, but prices made little effort to rebound.

Week's Listing Of Bond Issues

Terry Alan Kath was an American guitarist and singer who is best known as a founding member of the rock band Chicago. He played lead guitar and sang lead vocals on many of the band's early hit singles alongside Robert Lamm and Peter Cetera. He has been praised by his bandmates and other musicians for his guitar skills and his Ray Charles–influenced vocal style. Jimi Hendrix cited Terry Kath as one of his favorite guitarists, and considered Kath to be "the best guitarist in the universe".

Terry Kath, American guitarist and songwriter (born 1946)

Terry_Kath

Jack Oakie was an American actor, starring mostly in films, but also working on stage, radio and television. He portrayed Napaloni in Chaplin's The Great Dictator (1940), receiving a nomination for the Academy Award for Best Supporting Actor.

January 23, 1978

Headlines from January 23, 1978

Some MidwestRailroad,s Find It Pays to Diversify

News Summary

`Normal’ Monday Due as Snow Hangs On

Knicks Triumph, 143-141 ‘n Overtime

KOCH FIELDS QUERIES IN RADIO BROADCAST

Billboard 200

Saturday Night Fever

Foot Loose + Fancy Free

All 'n' All

Out Of The Blue

Rumours

Notable Deaths

Historical Context for January 23, 1978