PAGE FOURTHE DAILY REFLECTOR, GREENVILLE, N. C

Monday, JanuaiV

Monday, January 12, 1959

Abandoned

Odds Against An Economy Budget

The President's State of the Union message Fri^ day raised the curtain on critical months of decisionmaking which will affect not only the United States but the course of future world history.

As might have been expected, the Presidents report had lot of good news, some glum comments about rising costs, much optimism and promises replete with ifs.

i Of particular Interest to a Congress heavily dominated by critical Democrats was the White House determination to push for a balanced budget of $77 billion. .

In all honesty, this must be regarded as a laudable attempt at fiscal responsibility". The big question is: can we afford it?

The basic costs of operating the government are pretty well fixed; only one big field is really open to variable outlays, and it is the biggest of all. That is national defense.

True, every member of Congress has some scheme for spending a million here'and a million there; hut when all the cards are on the table, the players bow to reality and stay within reasonable limits.

So the decision of remaining within the President's balanced budget or of going beyond his economy-pack-age is going to rest largely on Congressional acceptance of rejection of estimated needs for national defense. The odds today are that Congress will largely , ignore the Eisenhower military estimates and dictate more spending for that field as well as prodding for changes in areas of strategic concepts.

Of course the reasons for this are many and they stem from an uncertainty which worries every member of the Congress.

True, record peacetime spendings have built the mightest force for defense this country has ever know'n. But this in itself is no yardstick for security. Its what "the other fellow" has that counts; and in this instance "the other fellow" has been operating on a wartime

An Idea Begins To Bear

Jrruit

Br LYNN NIABET FRUIT A dr*m that b* eame a thought-germ and d-vrloped into an Idea that waa planted in fertile soil has be-come a irult-bearing plant. The dream was to make fuller use of the human, metal and phyaical resources of the three great educational institutions Carolina, Duke and State College* Tangible reall/.ation of that dream, although stUl in a small way In light of potentials, was announcement the other day of the formation of three non*atock profit corporations with working capital of a million and a half dollars to promote research. Coincident with announcement of thep.e service groups was positive assurance that one of the big outfits In the United States engaged In avlaUon and misaUe research has taken option on land in the Research Triangle Park for erection of buildings,

Plans are on the drawing board for adequate buildings to house the Research Institute, the Research Foundation and the Re-earch Triangle Park as the central unit In the proposed development on 4,200 acres of land situated about the center of the . triangle formed by Chapel Hill,

* Durham and Raleigh.

More than a quarter century igo men like Edward Kidder Graham. Howard Odum, Wilitam Preston Pew and others gave thought to fuller cooperation In using facilities of their institutions. Soon after Luther Hralges

* became Governor of North Carolina he enlisted cooperation of leading business men In efforts toward organizing fa* cilltlet.

DEVELOPMENT First stop was an inventory of scientific resources, human and physical ~ Including laboratorlea and libraries. The result of the Inventory . was surprising even to those who knew something of Wie poteniJals.

About three years ago a Triangle Research Committee was organized, Its activities financed by contributions from public spirited citizens. With a guarantee of aome $.10.000 a year for three yaars the committee began work. Next step w^as to persuade Karl Robbins, retired textile l^cuUve now living in New York, to acquire land for a central research park eslabUah-ment as a business venture. The idea grew faster than money could he found to finance It a.s

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^economy ever eince the close of World War II. Under such circumstances even a third-class power could become a first-class menace.

Russian accomplishments in the mimle field have raised a lot of questions; so has the cutback in U. S.* military manpower; and the whole complicated field of our strategic and tactical thinking has its critics and defenders.

Not even the vocal endorsement by our Chiefs of Staff are expected to curb apprehensions over the Eisenhower defense-on-a-budget program.

Real concern over pre-eminence of the Uni^d States in matters of military might is something rare except during an actuel conflict. Today that concern is white-hot.

All this tends to the belief Congress will listen patiently to the coming budiret message, then virtually re-write it to fit the lawmakers* estimation of what is needed rather than what the White House thinks the nation can afford.

Dan Cupid Wont Be Dismissed So Easily

Former vice president Henry Wallace's suggestion that voluntary health records be maintained by each individual to help young people choose the proper mar-rigae partner probably won't get very far. -

In a way, its the logical answer to an old complaint that people pay more attention to the breeding of horses, cattle, pigs and other domestic animals than they do to the "blood lines" of the human race.

But such a system for humans is out of the question,

Dan Cupid might well be the guy who boasted "I shot an arrow into the air, and where it fell I know not where" ... or words to that effect

Occasionally the little fellow Is a respecter of savings accounts, family fortunes and titles; but mostly his darts strike at random.

Can you imagine Love^^standing in the wings while a young Romeo asks his Juliet for her health record? Fantasyl Pure fantasy I

By HAL BOYLE

prot-moUvo business. So sbout s ytsr sfo t movement was stkrted to convert the profit corporation Into a quasi-publlo non-profit non-tax foundaUon, to which public spirited men might make otmtrlbutlons. This transition was affected within the past three weeks.

Meantime Robbins and others, including the Governor, Robert M. Hanes, George Watts Hill, William P. Saunders, and several more, had advanced money for stock In the original corporation without expectation of profit. Under the new plan they will receive thla Investment back In tlmeif the project succeeds, except the substantial donations to the new foundation. All pro-ftte from sale of land and operations will be plowed back into the Foundation.

Activities of the- three corporations will be roughly divided into business operations, education and direct research.

TRIPOD The Research Park (technlcaUy the Plnelands Company, Inc,l has title to the land mA responsibility for providing such facilities as power, roads, water and sewerage. Land will be sold to firms desiring to locate and profit* will go into Ute Foundation fund.

The Foundation will support with grants and loans some phases of actual research carried on by the Institute either on its own or Jointly with the participating universities. These three activities complement and support each other, and togethejr with the private bidustry operation* give promise that the North Carolina Research Park may become a national asset.

FULF1U.MENT Tli * po-tentlal of the dream will not be fully reallxed for many years. But with men like those who are serving on the directing boards -and the list reads like a roll-call 'of North Carolinas leaders In education and business with such spirit as that which prompted the Hanes family to give a third of a million dollars In honor of Robert M, Hanes t.o build the central Institute facility, continued development seems assured

All that has been done so far has been by private contri* buttons No State or tax money, except the Instgniflcant amount represented In activities of the University, has gone Into the project.

T j : 1 P I You Learn It By Mail

'-or Southeast

By RALPH ROBEY

Since World War n the Southeastern section of the United States has grown more rapidly from an economic point of view than any other section of the nation. Seven states are involved: Alabama. Florida, Georgia, Misaiaalppi, North Carolina, Ten-neasee, and South Carolina. During this thirteen year period, according to the United State Department of Commerce Office in Charleaton. there ha* been between a doubling and a trebling of the industrial economy of thi* region.

There are many reaaona for thi* growth. Among theae the following are rather outstanding;

There ia an excellent labor iupply. Most of the workers are not trained for factory Jobs, but they learn easily and quickly, and soon become a* efficient as any to be found in other part* of the country.

Labor, unions have tried repeatedly to organize the workers of the region, but with comparatively little auccess. Of course there are unions, many of them, but the overall situation is vastly different from that in New England or Ohio or Michigan. In orne of these atatea there la a definite anti-union feeling, and this ia made clear to any organizers that come in. but the failure of unions to get a real foothold U more the result of the Southern employers treating their workers with fairness and paying what is regarded as a good wage.

Wages on the whole tend to be aomewhat lower than in the North. This is not a cause of hardship because the cost of living also Is lower. On the average the Southern factory worker is belter off than his Northern counterpart, These lower wages mean that production costs sre below those of factories In other parts of the cmm-try. This Is one reason so many of our leading companies have opened branch plants in the South.

The water supply Is plentiful and the water Is good This U of crucial Importance to many industiles, and ia algntftcant to alm<vt all lines of manufacturing. Few Items aie produced In our factories that do not require water lt> the proces.s.

The cUmate ts conducive to continuous operation twelve months a year. Last winter the area was bitterly cold for a few days and this year much of It was covered with snow Hut those are the except lotw. Normally the weather Ls sufficiently mild In winter to be no handicap. Summers are hot. but not too

hot to work.

There is no political antagonism to business as such. In fact about the only antagonism one can find is in relatively small communities where It is felt that permitting factories to be established would ruin the beauty of the town. Even this opposition is dying out because most of the companies that open plants locate them In the outskirts and the town itself is. not affected except through more employment and better payrolls.

In none of these seven states are there what may properly be called punitive taxes on business. and in some instances special tax incentives are being offered to new business. Such incentives. or tax concessions, are not universal by any means. Probably one reason for this is that the area ia convinced that it has such other advantages that there is no Justification for using one form of tax bribery to get a company.

There is Intense competition between the various states to attract new business. The area is dotted with industrial development committees which will do anything within reason to convince a company that it should select, depending upon the scope of the committee, a particular town, city, county, or state for Its new plant.

With a good labor supply, no labor union excesses, moderate but fair wages, excellent water, favorable climate, no political antagonism, reasonable taxes, and a desire on the part of the residents lor new business, it is small w'onder that the area is growing by leaps and bounds. And there is every reason to believe that the growth will continue year after year. The rata perhaps will not be as high as It has been In the past thirteeo year.i, but the trend wiU be up ward, and the region will become more and more prosperous,

Opinions In Brief

Corn fHimcrs hnve Joined the iHtiks of those who prefer s free enterprise system to dlrlatlou *nd pnpcrlng by I he government.

In a referendum they voted by more lhn two to one to etid control.* on tlie production of corn snd to reduce government support o fthls crop. Thu.s, farmer.* have indicated * return to a market-prlce system.*' Orlando <Fla > Sentinel.

NSW YORK f AP) Things a columnist might never know if he didn't open his mail:

This has been a great decade for hypoehandriacs. Eighty new viruses affecting the human system were discovered in the last 10 years. And did you know 750 million prescriptions now are filled yearly in the United States?

In ancient days salt was an expensive luxury. Now more aalt is sprinkled on Icy roads in America than la used on food.

Ever wonder about the milkman's Job? Well, the average

milkman eovtra 25 miles a day. makes 125 stops, and delivers 500 containers.

Apt definition: Tact,'* says Grace Downs, (^>OTator of an air^ hosteas school, is tiM abUity to make a point whhout making an ewmy."

Tip lor hmistwlves; if yon place a fhoebox top in the bottom of yoiu* shopping bag, the bag wont tip over every time y<m set it down.

During World War n, Americans Joked at British fondness for tea breaks. Now more than 60 per cent of U. 8. IndusUlal workers have coffee breaks on

Other Editors Saying* -No Cause Celebre

(Greensboro Dally News)

Once again the N.A.AC.P. has picked a weak case in its attempt to make a cause celebre of the the two Negro youths who were sent to Morrison Training School at Hoffman after allegedly kisaing a white girl at Monroe.

The two boys, one 10 and the other nine, were dealt with as Juveniles, They were not tried, convicted of a criminal offense or sentenced under what can under any circumstance* be termed a *'persecution.

Blaine M. Madison, state commissioner of correction and training. has Issued a clarifying explanation of what happened and what the procedure can doubtless will, be from here on out.

Rather the two children were made the wards of the state. Just as other Juveniles who get into trouble and whose home environment is found to contribute to their delinquency are dealt with. Jackson, Morrison and Eastern Carolina Training Schools. Dobbs Fsrm and Bamnrcand are correctional institutions. They seek to provide new opportunities for boys and girla who are sent to them. Theirs, as the name implies, Is inherently a rehabUlta-tlonai and training responsibility. Their aim in to reacue boys and girls from what otherwise might become s life of crime; and statistics show that, despite their inadequacies, they are doing a relatively creditable Job.

As Commissioner Madison has pointed out. the two boys In question were already on pro-bslion for delinquency: they come from Impossible homes; and

they havo been and are without proper parental care and guidance. There is a prescribed procedure of release of a child from any of the states training schools. School officlala are charged with determining what is iq the beat Interest of the children. Two criteria are applied: (1) When the school superintendent finds that the conduct of the chUd is such as to Justify the conclusion that the chUd will not, if released, be unruly, disobedient to his parents and wayward to the extent which would constitute a public problem, and 2) when, on ttt basis of investigation by local welfare department personnel, it is determined that the childs family will not neglect him and will give reasonable protection, guidance and home care for the child, Commissioner Madison then applied the clincher; In the case of the two Union County boys our school officials will be glad to return them to the custody of their families as soon as the conditions outlined above have been met. This will be done regardless of any legal action by anyone, prompted for whatever purpose or motive.

Under such procedure, it ia difficult to see how the N.A.A.-C P. can generate a cause celebre without misunderstanding and deliberate misrepresentation of the facts. So far it has not alleged discrimination in that the two Union County youths were sent to Morrison instead of J#ck-soQ or Eastern Carolina Training School. Nor is it shown how litigation will improve the boys' homo conditions.

ttio Job.

Speaking of tea. did yon know there are 3,000 varieties of this brow? Llko French wines, they are named for the districts where they are grown.

The high coet of loving: Few things today, aaya ttiannon Flf*i more expensive than a girl %no is free for dinner.

If your dog has an annojdng habit of gnawing your slipper* or biting his own nails in public, you can cure him by giving him a new canine chewing gum. The seven-lne-lcmg aticks are beef flavored and wont stick to dog, rug, or furniture.

Another new product; a German physician haa developed a pin made of yeast and plant tx-traets which he claims will keep you eober no matter how heavily you drink. Who on earth would want a piU like that?

Odd ruling: if a member of your family has a bad heart and you buy him a special reclining chair, H Is tax deductible but only if the rest of the family stays out of the chair. If a guy from the Internal Revenue Ser*-vlcc calls at your home, dont let him sit in it either!

In some Middle European countries during the 18th century, according to a historlcBl study by the Bon Ami Institute, Matrimony held an unusual reward. After marriage a girl no longer had to bathe. Some women today believe a wedding ring gives them the right to show up at breakfast in a sloppy robe and wearing their yesterdays face.

A recent survey of 5,000 American husbands showed that three out of four help their wlvea with housecleaning chores.

The young generation; Many a teen-ager has driving ambition, points, out actor Walter Slezak. Thats why their parents have to hide Hie keys to the family car.

Llfe-ls-so-unfair-to-men note: a man ia considered medically obese If his fat exceeds 20 per cent of his body weight: but a woman isnt regarded as obese unless she is more than 25 per cent fat.

Quote...

Ju.it as we were beginning to worry that all the old, basic virtues that n>de this country great were dying out, a Pennsylvania man weighs in with a 135-pound ball of string,"Columbia (8. C.) State.

For All

By ROGBB BABBON

BABiGN PARK. Maa*.. Every reader of my weridy column knows two tngs; Fkrat, that I have Just returned from a 20,000-mlle trip to Africa: and secondly, that I am not a phyaMan and have not the right to speak with authority on health.

THE REPORT OF DOCTOBi

I have had some rheumatien In my left leg. and Mr*. Baboon has had s<ne bursitis in bar shoulder. Wo have been to ntoo doctors and aH have told at Forget It. Almost overyono your ago has aehea and pains. Tho above doctors otmmimt may bo true: but this is what I know! After two weris* on a oargo steamer of the Farrell Linos, (hiring which time I had no mail, no cables, and ao telephone oaUa* ray rhfumatknn went awmy mar tirely and Mrs. Baboon had no bUTiltl*.

I exercised onsldwably, walking oh deck,' and wont to bed oar-ly leaving my porthole* wMo open. In fact, my eathn had good (u*oss ventilation. During the time spent on the ocean and in the wilds of Africa, we were treo of all aches, we ate like pigs, and slept lik# babies. Upon r-turning homo, I found my desk piled with mail: whether my rheumadsm will return I do not know I But my guess is ttat many such aches are due to the unnecessarily busy and nervous lives we lead. Doetors should tell m to take oor religion more seriously and practice moro of Jesus teacMngs against stmg-gles and worrios. m WARM WEATHER CLIMATE fUFFlCIENT?

Many feel tiiat if they to to Momo warm eUmats in ttMS winter. k wfll s(dvt their health pr(rt}lsiBs. Perhaps so; but probably B<k, if they eonrinuo to receive too much mall, use tho telephone too freely, and enter into the oustomary social lilo of southern wint^ resorts. 1 have a deflnits fllustration In thla eon-necUon which shows the need of exercise both in the house and In the fresh air. Let me teU you about this.

Among my aoquaintammo is ths widow a former president of one of tho largest ehmni-eal cwnpaniea in thla country. They had a beautiful h<Hno in Florida and were very wealthy. She suffered greatly from arthritis In her hands. She finally aent North for the nations most iam-oiui specialist ki arfluitis to come to Florida and spend a lew days in her h(ne where she was living with her six servants. When he returned North, the doctor left the following prescription.

A SPECIALISTS PRESCRIPTION

Sleep with windows open and a fan Mowing in your face, as if you were sleeping on tho dock of a steamer. Neither glvo nor attend coekta parties, and always leave tho dinner taMo a little hungry.

Then the specialist a^kd: most Important all, afler each meal let your bands soak la hot water for fifteen minutes, as if you were washing dishes 1 Each morning, go out on the lawn and stretch as though you wore hanging clothes to dry on a line! Finally, got an Indoor bicycle to ride, and disohargt fllvo of your six servants. Including the chauffeur! In about a week came a bill for one tfaouoand dollars.

SOMETHINO I DO KNOW ABOUT Africa is a moot wonderful conUnent. rich ia all natund resources mecept oil. R has lour strong banks with hundreds of branches: these pay 4Mt per oent interest on time deposits. Africa has wonderful stores and factories of all kinds in such cities as Cape Town. Johannesburg, Pretoria. and esp<K;ially Salisbury in Bouthem Rhodesia- In J(dian-neaburg, sixty five years ago, there were only a few people and they all lived ia teats. Today the p(^ulation ie six hundred thousand, and there are dooeos of skyscraper buildtogs.

If I wM-e a young man, I would seriously eonridsr seMng in Africa for heakh and a fortune.

I would forget dkimonds and g(dd, but invest Id sithsr the copper industry or the chemical industry. I am sorry to aay that Africa, unlike Canada, is on the pound-shilUng-pence basis, which handicaps Americans who would like to invest therein. When, however, Africa goes op tlie doci-CmtlDMd Om Pa!S-A

Tax Breaks That Go To Elite

Strength For Today

By FARL.L. DGUGLASK

FOR THO.SF. WHO CAKF. ,

A student In hts first month swav from homh at college wrote to his parents: "Already two

more iH'ys whom I know have left college. And there are at least twenty more here on my floor who probably wont last through Uie semester, thanks to spending their lime drinking and dating when thev should lie studying. But dont worry about me. Im all right. Not that I'm any better, myself, than aome of these other fellows, but I Just couldnt let you two down, no matter what

One of the wonderful' things about human relationship* la the strength and courage that come from love. 01 course, most of

n* win do a great deal for those we truly care for. Rut we often forget how much Influence we have on those who cere for us.

No one can ever be as strong by himself as he can be the strength and example of those he love* What a responsibility that place* on everyone - and especlftUy on parents! For when others love and look up to us. everything we do or are takes on a double meaning. It Is not Just our own action; It ts a sorce of strength or wraknf.xa for thtute who love us snd depend upon us

What a iT.ipniwilhlUty, but what a challenge loo! And It is not only the challenge of adult years but of youth - that we be under.'^tanding, merciful, and un* selfUii.

By ELMER ROESSNER Here is more proof that slobs In the lower Income tax bracket*, without smart and expensive advisors, dont get the tax breaks ths flow to the elite who can afford slick services and smart ta;; experts.

The following is quoted from Information. a newsletter by Prentlce-Hall; Lets say you are li the 50 per cent tax bracket. To provide for your financial security. you are currently planning to purchase sufficient stock to throw off about $10.000 annual dividend.

Dont you love that "throw off" Idiom? How much Income does your Job throw off. brother? To continue "You hesitate because you know that in your bracket you will retain only a bout $5.400 even with the dlvidcnrts-received credit You would like to re-duce this exorbttut lax hue la there any way you can do it? Under certain circumstances, the corporate dividends received deduction may provide the answer. OTEPS TO TAX SL4V1NGS

Heres how It might be done: Step 1. At the same time you purchase the stock, purchase aome inconie-produclng realty throwing off more than $10,000 gross in Income, t Borrow the money to buy the realty you can use the tax savtngs to pay off the mortgage.

Step 2- Form a corporation and contribute the property and the dividetfd stock. The transaction will be tax-free under Code Section 351. The effective corporate tax rate on the dividends will be either 4 5 or 7.8 per cent (Sec. 243 (a)

Information interrupts itself to say, "WARNING. Make certain the graiia Income from the real estate does not fall below the dividend bicorne; if it does you WiU face the personal holding company trap (Sec. 543 <a> (7) i. Then it goes on;

"Step 3 Hold the property at least Uiree year* in order to be certain you avoid the collapsible corporation problem (Sec 341 (b* '3' Retain the corporate earnings including the dividends ia the corporals Lreasury.

WITHIN THE LAW

It Interrupts again: "NOTE. The retirement of a debt, of which a mortgage is a good example, is a viUid reason for accumulating income and avoiding the unreasonable - accumulation* penalty surtax * It goes on;

Step 4. After, say three years, if you desire, you can liquidate the corporation. The dividends will now be tax(pd to you at capi-tal-gain rates. Instead of a 46 per cent levy, the Governments total take wiU be IJmlted to the 25 per cent you pay plus the 4.5 or 7 8 per cent which the corporation has {laid

If it looks good, stay with it. Dont Uquidate the corporation. Then your dividend accumulation keeps mounting. And at death, the stock goes into your estate and its stepped up. ciate-of-death value, So, in effect, the accumulation escapes Income tax."

The newsletter then fives an example, .showing that if you don't use the (kxige. after three years you wlU pay $13,00 in taxes and keep about But if

you (Mopioi' this device, you SriU

decrease kaxee and tmsresse income by $4.546 or 55-287, dopwd-Ing which corpcwate divklMid tax rate is effective.

The more dlridend* tbire are involved and the Mghw jour tax bracket, the blggM* the lax savings, Information adds. It expalas. *We have only sermkiied the surface here and for ease of understanding have overMmpB-fied the facts,

There you are. Doe't be a Income tax sucker. Get la there and make a lot moaey, eab-scribe to expensive tax serrleea and hfe smart tax advisors. It pays.

DEPARTMENT STORE 8ALB8 GAIN IN RECESSION TEAR

Department store tales nationally last year were l per cent above those of 1957. Federal Revenue figures indicate.

Brightest spots were suburban Boston, Quincy, Mass.; and the Lancaster, Pa . and Tulsa me-tropollfan areas. Sales there were 10 per cent above a year ago during the first ten months of T5. and ,the rise connued ia November aad Deccmhir.'