, , . By FAROUK NASSAR army out of the Chouf Mountains and rolled "There will never be a compromise with National Salvation Front that includes The Druse and Shiites, expanding their Associated Press Writer down the coastal hills to link up with Shiite us and Gemayel," Jumblatt said in the Jumblatt and former Prime Minister control along the coast south of the capital, Moslem allies controlling west Beirut. telephone interview from Damascus, Syria, Rashid Karami. It said he also was in touch yesterday captured the fishing town of BEIRUT, Lebanon President Amin At their camps in the capital, U.S. which was broadcast by Independent with the speaker of the Lebanese Damour and the neighboring hilltop Gemayel has agreed to scrap Lebanon's Marines and Italian troops were packing Television News in London. "Gemayel is to Parliament, Kamel Assad; his prime barracks of the rightist Christian Phalange U.S.-brokered troop withdrawal pact with their equipment and preparing to pull out. be judged for crimes against the Lebanese minister, Shafik al-Wazzan, and former Party. Israel, Beirut radio reported, in an effort to - A senior White House official said the people.... There is no way to have a deal with Prime Minister Saeb Salem. An estimated 800 to 1,000 Lebanese save his disintegrating army and Marines would begin withdrawing to U.S. Gemayel." Israeli Prime Minister Yitzhak Shamir soldiers the remnants of the army's 4th government. Navy ships off the Lebanese coast in two or Beirut radio said Gemayel received two said in a television interview earlier in the Brigade routed in the Chouf battle Tuesday , The state radio said last night that three days. The official, who spoke on telephone calls late yesterday, one from his 'day that scrapping the Israel-Lebanon —were evacuated by boat from the coastal Gemayel had agreed to an eight-point Saudi condition he not be named, said the foreign minister, Salem, in Saudi Arabia, accord would be a "catastrophe" for peace town of Jiye, south of Damour, to the peace initiative that includes renouncing the redeployment of about 1,200 Marines should the other from Saudi mediator Rafik Hariri, in the Middle East. Christian port of Jounieh north of Beirut. ,May 17, 1983, agreement between Lebanon be completed within 30 days. telling him Saudi Arabia had received The Saudi plan also calls for an eventual Sources at the army command said there and Israel. It added that Foreign Minister He said 500 personnel Marines, Army Lebanon's go-ahead. Syrian withdrawal from Lebanon. It was were no army units left in the area. Elie Saleth had communicated the decision . trainers and others would stay in Beirut It said Saudi Foreign Minister Prince said to seek to end the fighting in Lebanon Israeli troops in tanks and armored to Saudi officials in Riyadh. to guard the U.S. Embassy and perform Saud al-Faisal would fly to Damascus today and to install a U.N. force in place of the carriers crossed the Israeli defense line at The development came as the Syrian- , other functions. • to obtain Syria's approval. American, Italian, French and British force the Awali River in southern Lebanon, supported Druse and MoslemMilitias Earlier in the day, American officials in The radio report said Gemayel' had in Beirut. " pushing north to an area south of Damour on stepped up military_and political pressure Washington expressed skepticism that the informed the parties to the national , . Western sources said the Druse and Shiite the coastal road. yesterday to oust Gemayel, who turned to Saudi-mediated plan would work. Druse reconciliation conference of details of the fighters were expected to attack the town of A Phalangist officer in southern Lebanon Saudi Arabia.to salvage his crumbling opposition leader Walid Jumblatt said in a Saudi initiative and sent a written message Souk el-Gharb, the last mountain position said the Christian fighters were seeking position. interview he would veto it. He called it "too about his decision to former President held by Gemayel's U.S.-trained army, if no active Israeli support, but an Israeli officer Druse militiamen pushed the Lebanese little, too late." Suleiman Franjieh, a member of the political solution is achieved soon. said, "We will not move unless provoked." Steel, oil mergers create slick By DAN LEVINE Collegian Staff Writer Proposed mergers are having an increasing impact on steel and oil industries and are readily causing controversy among government and business leaders. Just how controversial these mergers have become was illustrated Wednesday when the U.S. Justice Department stepped in to block a planned merger between LTV Corporation's subsidiary Jones and Laughlin Steel Co. and Republic Steel. The merger, which would make LTV the second largest steel producer in the nation, was stopped on the grounds that it would result in an "unacceptably high" increase in market concentration and threaten consumers with' • potentially higher prices. Assistant U.S. Attorney General J. Paul McGrath, head of the department's antitrust division, said the merger violates section 7 of the Clayton Antitrust Act. Section 7 states that companies are not allowed to have mergers which will result in decreased competition. Mark Roberts, a University assistant professor of economics, said the steel industries are merging to reduce their high cost marginal operations while maintaining presence in the industry. "It's more of an issue of survival," he said. "The steel industry' is having a hard time competing in the world market so they want to consolidate to reduce costs." Steel executives believe that mergers are the best way to eliminate outmoded operations and provide a more efficient use of capital and manpower at remaining plants, Roberts said. the daily Nicholas Deßenedictis McGrath's department disagrees, however, and believes "little or no basis" exists for the company's claims that it needs the merger to reduce inefficiences and remain competitive. Moreover, McGrath said, the department would file suit, if necessary, to stop the proposed merger Ron Filippelli, a University professor and department head of labor studies, said steel companies are gaining new technology by buying existing companies instead of investing money in new facilities. Filippelli said the permission of mergers depends on the enforcement of antitrust laws. In addition, he said the government faces two choices: allow companies to merge and control their activities through regulation, or strictly enforce the antitrust laws. "If you're not going to enforce antitrust laws and (allow) companies to get larger and more powerful, you can't talk about the marvels of the market system you're going to have to regulate them," he said. "If you're going to have these giants without any real regulation, then I would opt for more enforcement of the laws. You can't have it both ways." John Spychalski, a University professor of business logistics, said mergers must be examined individually to see how antitrust laws are interpreted. "There is a lot of ambiguity in antitrust laws," he said. "The size of the merger may not be an overriding matter you have to put size into perspective." Spychalski added that other considerations include the size of the industry in which the merger takes place, relevant competitors and the types of products they sell. In addition, he said analysts must olle • ian consider the market share that the merged firm would have for the products it sells. The proposed LTV-Republic merger serves as an example of the complexities involved with two other large mergers betwe6n four companies. The Wall Street Journal reported that industry experts and analysts expect McGrath's opposition to LTV Corp.'s merger to affect U.S. Steel's bid to acquire National Steel Corp. Although McGrath declined comment on whether his department would allow that merger, some antitrust attorneys saw his block of the LTV merger as a sign that enforcement is stiffening, the report said. "One problem with the steel mergers is that no jobs will be created," Filippelli said. "The industry is shrinking and more jobs are eliminated when steel companies merge." Meanwhile, Texaco Inc. made the largest corporate acquisition in U.S. history on Monday, buying:Getty Oil Co. for $lO.l billion after the Federal Trade Commission ruled four to one that the purchase did not violate antitrust laws. Roberts said the main reason for the oil company merger was an industry desire to increase reserves through a reduction of costs. "It is often cheaper for large companies to buy smaller ones to build reserves rather than go out and find their own reserves," he said. "From a cost standpoint, it makes real sense given the current undervaluation of oil company stocks relative to the potential value or their assets. It's not suprising given the incentives." According to a Washington Post report, the merger, the first between two large oil companies, raised some critics' concerns about Waste dump clean-up costly Matching funds are major item in state DER budget By MIKE NETHERLAND Collegian Staff Writer The state Department of Environmental Resources will spend much of its $248 million budget this year on matching • federal superfund money,• recovering and recycling solid wastes and constructing sewage plants, the DER secretary said yesterday. In an interview with The Daily Collegian, DER chief Nicholas Deßenedictis said the: electorate is not ignorant about environmental problems. "They want a safer _environment no matter what it costs," Deßenedict-is said. Cleaning up the state's 39' hazardous waste dumps will cost "tens of millions of dollars," he said. He pushed for $5.1 million this year qualifying the state for $45 million in matching funds from the federal Environmental Protection Agency's Superfund. The 39 hazardous dumps are out of 800 investigated, abandoned landfill dumps and areas of companies that went out of business, Deßenedictis said. "I'm still looking for them. Some states say they don't have them. I don't believe it. If you don't look, you don't find them." A program to focus more dispute a potential threat to competition within the oil industry. Federal Trade Commissioner Michael Pertschuk, who voted against his agency's decision, said the action "compounds the hands off antitrust standard of the Reagan administration and effectively invites the major oil companies to react to acquire the reserve-rich middle tier firms." But Eddie Correia, attorney adviser to Pertschuk, said the majority of FTC officials argued the danger was overstated, primarily because the stock market would quickly bid up the price of an acquisition target once the first rumor of a takeover effort surfaces. "Mike doesn't agree with this position," Correia said. "His objection was primarily to the West Coast operations, involving a crude oil threat that Texaco would cut off the independent refiners out there." Correia said the majority of the FTC solved this problem by regulating Texaco's price, volume requirements and transfer terms operations to the independent refiners. "The problem with this solution is that the regulation only stands for five years," he said. "After that, Texaco can do as it wishes and independent refineries could be hurt." Filippelli said he expects the merger trend to continue in many industries. He said mergers like U.S. Steel's recent acquisition of Marathon Oil Co. are often done to diversify an industry. "We are in the midst of one of the biggest merger waves in American history," he said. "Companies are spending money to acquire already profitable industries instead of investing and creating their own." Friday, Feb. 17, 1984 Vol. 84, No. 124 28 pages University Park, Pa. 16802 Published by students of The Pennsylvania State University ©1984 Collegian Inc. attention on landfills has met with some controversy because of a lack of knowledge, he said. Concern about hazardous and toxic dumps has overshadowed solid waste recovery and recycling programs. State and federal funding for such projects has been crowded out, Deßenedictis said. "The governor has given me more money for staff, but also a $3 million program." The money is to encourage communities to look at alternativP..: to landfills, he said. One of these alternatives is a system that incinerates trash and generates steam to produce electricity. The incinerator also filters out recyclable materials such as aluminum. • "We've been able to promote a couple of those in the state they're working." Deßenedictis said these systeitis are viable because the landfills are properly regulated and they are charging the right amount. In the past the landfills have not been charging enough for their use by the community, he said. Burying the trash was more cost effective than buying an incinerator. Playing the role of small town mayor, he explained why incinerators were not being built: "I'm Mayor Jones. I have three years remaining in my term, I Page 2 • Although James C. Stet f has been director of administration for the Centre Region Council of Gov ernments for less than two weeks, he is no newcomer to the organiza• tion's operations Page 3 • More than $3,400 in cash and valuables has been reported miss ing from locker rooms in three cam pus recreational facilities since classes began Aug. 26, and the figure has been increasing steadily Page 5 • International students will celebrate and share •the cultures of their homelands through music, food, films and discussions this week at the 10th annual International Festival Page 14 • In Sarajevo, Scott Hamilton, left, and Bill Johnson rack up gold medals for the United States Page 17 • Arts gives the entertainment scoop in the Weekend section Page 21 • A $1.7 million recruitment program is being implemented by a federal district court order for black students to enroll at Penn State, University President Bryce Jordan said last night Page 28 index Classifieds Comics Opinions Sports State/nation/world Weekend weather Becoming mostly cloudy and cool today with occasional drizzle late this afternoon. High of 49. Cloudy tonight with a few showers and patchy fog. The low will be 35. Cloudy tomorrow morning with some clearing possible during the afternoon. High near 46 by Glenn Rolph know that 10 years from now my cost to take care of trash at the landfill is going to be $3O per ton. I know that (an incinerator) amortized over a 20 year period will cost about $l5 per ton in ten years. The problem is who is going to put up the 2,3, $4 million now? It is me 1 and I have to raise taxes to do that. And therefore I might not be back 15 years from now to take the credit." Another problem addressed by DER's budget is sewage plant construction. Government subsidies for such plants are being cut next year from 75 percent to 55 percent.. "From my experience at EPA, at that level we're going to have a hard time having communities wanting to build them." To fill the 20 percent gap, without new appropriations, Deßenedictis said he will take half of a $l6 million program that subsidized the construction of older plants in the state. In the 1950'5, he said, the state provided new plants with 2 percent of their yearly operating costs. Those plants now have received almost half their operating costs from the state "If I have to choose on a priority basis, I'd rather not be subsidizing plants that already got subsidized." inside A University professor last week patented a nuclear waste disposal system that may be more effective in safeguarding the atmosphere than proposed conventional meth ods ' Page 2 e About 235 couples will attempt to go "around the world in 48 hours" this weekend on foot.
Significant historical Pennsylvania newspapers