PAGE FOURTHE DAILY REFLECTOR. GREENVILLE, N. C.

Wednefday. February 18. 1959

Wednesday, February 18, 1959

Bull Pen Star

Others May Face Michigan Crisis

When one of the wealthiest states of the natiom spends itself to the brink of financial collapse, it is time for the people of that state and others as well to sit up and take a careful look at the dire consequences which may be in the making with bulging state budgets.

That is what has happened in Michigan. It ww only through advanced payment of taxes by big busi-neiees and industry during the past several days that the state has been able to stave off the crisis of having an empty treasury.

The advanced payment of more than 35 million dollars in taxes by business and industry has given Michigan a temporary breathing spell. But even with this ready ca.sh, Michigan remains on the edge of total financial collapse and insolvency,

Why has such a situation come about?

The answer is very simple. Michigan, for years now, has been living beyond its means. The states appropriations and spending programs under the 11-year administration of Gov. G. Mennen Williams have gone from an annual rate of about $500 million to an annual rate of more than a billion. Tax revenues on the other hand have lagged far behind speudiing.

An example of the tight money situation Michigan faces is pointed up by the fact that the University of Michigan and Michigan State University received their last payments from the state in November. Since that

iodges Finally Is On Defensive

By LVNN NI8BET

DEFENSIVE For the first time In hie experience with legislatures Governor Hodges finds himself on the defensive In eevertl srea. In his two previous sessions tand one apeclsi) he was sble to devote all his energies to aggressive promotion of hla program. It became evident with ten daya after the current aesslon convened that he would have to divide efforts lie. tween maintaining galna <?) achieve in 1S55 and 1957 and promotion of his present comprehensive platform.

The 1957 reorganb.atlon of the Highway Department Is under direct attack and there arc threat of bills to amend other reorganization acts and the corporation tax formula, On opening day Rep. Walter Jones of Pitt announced his intention to offer a bill restoring the 14 division method of distributing membership on the highway commission. Rep. Marcellus Buchanan of Jackson has Introduced a Joint resolution calling for a legislative group to study the highway set-up and make recommendations to the next General ^semhly. The fact that Jones iWils from the deep east and Buchanan from the far west indicates the widespread discontent with the status quo.

Adding fuel to the smoldering fire was the criticism last week by Stale Auditor Henry Bridges ^of highway accounting practices. On the edges of the legislative controversy Is the intensified fight between asphalt and concrete Interests for road paving.

On Its face the Jonea idea of mandatory Increase in highway commlaalon membership might appear more obJecUonable to advocates of the present plan than the two-year atudy proposed by Biwhanan, Further analysis show the atudy plan to be a much more direct attack on the Oovernor'a preallgs,

DIPTERENCE Rome who claaslfy themselves as antl-Hodget (so far as highway policy Is concerned) point out that authorising the Incumbent Oovarnor to name 14 Instead of seven commlsaicMiers would not afford desired relief By I9l another Governor will make the appointments.

AM of the reorganizations effected four and two years ago were mads upon recommendation of study oommlsslons authorized by the General Assembly. In neariy every Instance the groups contained several person* with lefialativt Mpericnce, that re-atrietion being generslly fixed by the resolution, The actual selection was made by the Governor.

The Buchanan resolution calls for a committee of nine mem-bera of the current General Assembly. six to be named by the Bpeaktr of the House and three by the President of the Renale. Suoh a group would owe no alleglancf to tbe executive branch and presumably would he less

Influenced by It.

Several other study commissions have been proposed, for continuing as well as new subject matter, and rumors are that effort will be made to have them named In part If not entirely by the Legislature rather than by the executive,

A real battle Is brewing on the Income lax withholding plan and for higher teacber-employee alar-les than Included in the budget bills, requiring additional taxes. Developments of the past two weeks and the wav the legislators are sharpiuiUig lljcir knives for constitutional revision and coiyt reform bills, would seem to Justify prediction made here months ago that government reorganization would occasion more blu.er legislative fighting than money, and that Governor Hodges would have to divide attention between defending accotn-pliehed leglMatlon and promoting hla new Ideas.

IJXALS The State As-soctation of County Commiaslon-eiH la .set to make mu* mote effort to reduce the plague of local laws" enacted by the General Aaseinhly, Approximately half the bills introduced so far In this session have dealt with putely local problems uch s the appointment of deputies sheriff, fixing salaries of Jailers. In scveinl Instances these hills seek to repeal legislation enacted two years ago at Instsnce of the same representative,

Alex McMahan, executive secretary of the county commissioners organization, says a sort of master bill ts in the draft stage to vest all authority In sucli areas in the board of county cormnlssloncis, Iiifirmation Is that the Constitutional Commission also will recommend tightening reins on loeal legislation by the General As.sembly.

A* far Iwiik as 1915 the nuls-ance of loeal legislation was le-cognl/.ed and the people voted for a cunstttutional amendment pio-hlblting many ^pes of local laws. The Legislatures have consistently Ignored the re-atrlction.*. A few ca.ses want to eonrt. An early decision set out that the interpretation of a statute, as to whether It Is a local one prohibited by tins section of our Const Ituiiou should 1h> largely left to the fact* and circumstances of each particular case, giving .>lKniflt'nnre to tl>e rule that legislative aots are pieaumed to have been rightly passed from proiar motive,'?, ami that a cla.vdflcntlon of this kind, when made by them, should not be disturbed unlcs.? it la manifestly arbitrary and in\alld

That and kindred declsloti* have been cited In support of many btlli that on their face apt>ear wholly local. It Is difficult to sea how that elastic interpretation can be stietched to bring the change In .salary of one small covinty attorney from IM) to lltx) a month within the acope of general or statewide concern.

time they have succeeded in borrowing money from financial institutions agaimst anticipated state payments to carry on their operation-s. Financial institutions cut off the credit of the universities when it became apparent the state might not be able to meet its future hnancia! obligations.

With the pre-payment of taxes by big business and industrymost of which were not due until April and JuneMichigan was able a few days ago to make its first payment to the universities in three months. It was also able to make a payment of $12 million overdue to local governments, and $11 million overdue for welfare, dependent children and old age assistance.

According to reports Michigan has fallen three months behind in payments into its teachers* retirement fund, bills due contractors have gone unpaid, and there has been a question of where money is coming from to meet state payrolls.

No one at the moment can really say what will happen in Michigan on March 15 when $15 million in interest is due on the state's debt, or where the money will come from for $34.5 million due on the state's school fund in May.

By borrowing money from funds set aside for retiring bonds, liquidating some of its assets, and taking cash from pension funds, Michigan has been able during the past year to get its hands on an extra $29 million in cash. But this is a non-recurring source of money. And some of it at least will have to be replaced In time.

Through it all, Michigan has colitinued to spend freely, carrying out its welfare state" programs adopted in recent years. Even in the face of its financial crisis, Gov. Williams* program calls for still greater outlays, more extravagant spending and the extension of welfare state" benefits.

He in calling for an increase of $44 million in general fund spending next year over this year. And that in spile of the fact that the Rtate.s general fund spending last year ran $21 million ahead of revenues, and this year a deficit of $89 million is anticipated.

In one approach to meeting the financial crisis, the governor is asking for an 18 per cent tax hike that would give the state an additional $140 million a year.

ObligatioiiH piled up by a decade of living beyond \\ means are now catching up with Michigan and its liberal governor. Its cash is depleted, it.s credit is cut off by many source.H, and its future administration is calling for bigger and better spending.

What is happening in Michigan, one of the wealthiest states, certainly can happen in other states unless citizens insist that the folly of government living beyond its mea ms be replaced by h more sound financial philosophy.

Little Chance For A Democrat To Get Job

Those who are advocating the appointment of Adlai Stevenson to succeed John Foster Dulles as Secretary of State are whistling in the dark de.spite the apparent fitne.s.s of Stevenson to carry out the duties of that Important po.st.

Although the appi)intment of a member of the opposing party to important cabinet po.st i.s not Unprecedentedthe late I'resideiit Uoosevtlt appointed two Hej)ublicans to hi.s cabinetthings are much different now than was the case in the war years of the Roosevelt administration.

It is highly unlikely that Pre.sident Ei.scnhower would give a Democratic appointee in the post full IKiwtM to shape the naton*.s foreign policy. 11 is equal ly unlikely thtit Stevenson or any other high-ranking Democrat would assume the po.st without full authority.

Looking over the li.^t of Republican po.ssibilitie.s for the job of Secretary of State, there are f^w names indeed which would bring to the office sufficient prestige abroad, both in the eyes of our allies and in the eyes of other nations.

These factors may be influencing President Eisenhowers apparent deci.sinn to have Secretary Dulle.s retain his post, at least in name, for the remainder of his administralion if possible.

By BILLY ARNOLD

unch With A Poet Etc

Peter Vireck hunched over the plate and looked at the Southern-frlend chicken. Yes, this does look good, he said to nobody In particular- He was eating with three college students at one of Greenvilles better restaurants.

He was dressed Informally. He wore a soiled white shirt which hed neglected to button up all the way, a ratty-looking beige sweater, a pair of pin-striped brown trousers, and sandals.

One of the boys said, Mr. Vlercck. youre supposed to eat this stuff with your fingers so dont worry about that.

Vlereck grinned, picked up a piece of the chicken doused In honey, Oh, I eat mo.st everything that way anyhow. Lamb chops, steak." He bit Into the meat.

The boys looked at each other.

Vlereck, chomping vlgourously

on the chicken, was unaware of his surroundings, the Methodist preacher seated two tables away, a delegation of ladies nearby jabbering about something, other groups of eaters scattered atx)ut.

In the South, he said, gesturing with a piece of chicken, Ive noticed that the people are constantly on the defensive; they seem to have a chip on their shoulder, a sort of get-your-mltts-up attitude. Its very no-tlceable.

The boys nodded together in agreement.

He continued. People here seem to want you to like them desperately. Much more than In any other section of the country. They seem much more pleased when outsiders like them ummm. he paused to swallow, and it seems that they look for visitors to make ugly re-

Othe: Editors Saying... Highway Commission

A Successor To Dulles Needec.

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Bv .lAMKS MARLOW

WASHINGTON (AP) In full lioulth Secretftry of State John Kiwitcr Dulles W'a.s criticized, but In thus moment of hts serlotw Illness he Is eulogized and 1* even spoken of ai indispensable Wliy?

For perhaito these two reasons;

I His critics at home have fully differed with him not on his basic foreign policy by only on his handling of Individual sUua-Uons.

2. He his so completely dominated foreign policy that he rep-ip.<?ents It and U Is hard to think of anyone el.se coping with the crisis coming up In Oermaliy.

The policy followed by DuUcs and President Eisenhower was the one laid down by President trnman and Secretary of State Doan Acheson,

This was to surrouiad the Soviet Union and Red China with mtlttnry base* and alliancea and mak' no concessions, or' very few

At the root of this policy there has always, jerh*t>s, been a certain amount of wishful thinking that If a ring could he kept tight around the Comimmiat world, In time It might weaken, suffer drastic Internal change, or perhaps disintegrate

Ita a wksh that ha.snt come true. The man crdlted with being the author of thki contain-monl policy back In Achexuna duv, George Keiman, wJio was then head of the Stale Department planning stiff, is having soconU thoughts now.

He's not the only one. There D talk nowaday.s of being flexible with the Soviet Union, Being flexible can r\ean slving conce.x-^io^u?. with or without concrs-

*lon.s in return,

While Dulles has been pretty much as one with the re.st of the country on hi. basic policy of containment, there have been tiinea when his wisdom on Individual deci.slons within the broad policy haa been questioned.

He has been criticized, for example. for his handling of President Nas.xer of Egypt, for his u.se of blg-oundlng phra.ses, like massive retaliation and brink of war and for hla dlsproven optimism about the result* of the 19M aummlt conference.

But through it all he was a sturdy, unyielding antagonist of world communtsm.

Because he ran foreign policy almost by himself and made hu Job such a one man operation, both hla critics and his admirers have difficulty qow In seeing anything but a bacuum If he .should not be able to return to his de.sk.

Ita possible Dulles will for .some time have a strong hand not only in current problems but In foreign affairs In general.

Nevertheless, as a matter of reality, the Elsenhower adminla-t r ation must be thinking in lerma of a.successor Just In otst the cancer-stricken secrtlary. despite his extraordinary endurance cant come back.

Theres a good, immediate re-son foi the' neeil of mu U fure-thougtit

The United Slates and Its Allies face an upcutmng ci ula over, Germany, created bv the Soviet Union which Wiuits the A1-. lira out of We.sl Berlin and ihrea tens to turn control of acce.As to the city over to ibe. Lasl Um-maia by Mu ii.

(Greensboro Dally News)

Since the passing of Frank Page, the original state highway czar, almost every governor of North Carolina has made the Slate Highway Commission his personal plaything.

Back In the late 30s, Oover-nor Hoey injected the flr.st political coloration In highway appointments. Previously commissioners had served for an Indefinite tenure. (Frank Page stayed strictly out of politics.) Beginning with Hoey, commissioners were appointed to coincide roughly with gubernatorial tenure.

Prom tliat date to this the highway commission has been tossed about every four years.

Now lor the first time a General Assembly threatens to reorganize a governor's reorganization. Governor Scott stai'ted the fruit basket-turn-over about 10 years ago. He threw out all the Incumbent commissioners except Henry Jordan of Cedar Falla. Then Governor Umstead cleaned the slate when he took office and increased the commissions size to boot.

When Luther Hodges took over, he threw out all of Um-stead'.* appointees, reduced the commission** size and put most of the chairmans old powers In the hands of a permanent director. The commission became largely advisory. Hodges supported a atrong state-wide approach.

Now Rep. Walter Jones of Pitt says he will back legislation to

restore the commission to Its previous size (14 members under Umstead) because it has gotten too far away from the people.

(And late last week Rep. Mar-cellus Buchanan Introduced a resolution calling for a commission study of the state highway setup )

Apparently hlg}\way commissioners will continue to come and go. The old fight between the state-wide view and local representation will continue to intrigue governors and legislators.

We incline to the view that highway affairs will rock along at much the same pace and w'tth the same efficiency or inefficiency whether the commission has 14 members or eight. More Important than size is quality. And the measure of the worth of Governor Hodges reorganization lies more in the character and ability of the men entrusted with the Job than the administrative structure itself.

The Governors program, we think, deserves a fair trial. The commission has suffered enough reshuffling at the hands of governors in the past. The cause of inaugurating a biennial, legislatively-supervised headchop-ping to replace the traditional quHfirennlal overhaul.

Why not let the reorgaiuzation-al .side of hlghw'sv affairs rest In peace at least for the next biennium?

marks about the South. They seem to be expecting wise cracks.

The boys nodded enthusiastically. Yesslr. Thats true.

Ummbut thats not good. he said. It makes things uncomfortable. Theres not that feeling of easiness, you know.

The boys agreed.

Of course, it is easy to understand. The South has perhaps been so thoroughly and unjustly criticized so often. Yes. You know, in other sections of the country, when a visitor comes and he doesnt like the people or the country, ahhhhhh, I mean, they couldnt care less. You can like it or you can lump it. They dont give a damn.

The boys laughed In unison.

The minister looked up. made a face at nobody in particular.

What do you think of Southern writing, Mr. Vlereck? one of the boys asked, What about prose? I think some of Americas best prose today is being written in the South.

Yes. Probably true. I think that In the South there is less slick, phony writing today than in other places. There is probably more honesty, more sincerity here. I dont know why. I dont really know anything about the South." He gulped and ran his fingers through his craggy, sand-colored beard.

He looked up, his blue eyes showing no expres.slon. He had a rather myopic stare. He was apparently looking for something, bmeone.

Ah, wheres the waitress? He held his hands up and looked at the grease on his fingers. Youre supposed to get finger bowls with this, arent you?

Yessir. Yesslr. the boys looked around hastily for the waitress.

I .mentioned the word racism yesterday in one of my lectures I was talking about Hitler. You know, hla belief in super racism and I noticed the audience sit up and start listening. I suppose they were expecting some unkind remarks about the Negro-White race problems here. I dont know.

The boys laughed.

He looked at his fingers. Ummmm, this grease . . . he said, dipping his hands in his glass of drinking water. Unconcerned. he continued . . But yes, about Southern writing . .

The boys looked at each other.

The preacher got up and left.

Guest

3ecome

Boss

By HAL BOYLE

new YORK (AP) We have a new morning ritual in our home.

The other morning I was in the bathroom and shaving when-my young daughter, Tracy Ann, entered carrying Lady Dottie, her cat.

Without saying a word Tracy walked over and flushed the toilet three times, while te cat, held aloft in her arnrs, watched with an eager intensity.

' As they started to march out I asked: Whats the bid idea?

Nothing, daddy. Lady Dotti# Just likes to watch waterfalls.

Well, take her out in the kitchen and turn on the faucet there, I told her crossly.

I cant.

Why not?

Its not the same thing, said Tracy with that air of exagger-ated patience children adopt when explaining something to their ignorant elders, Lady Dottie doesnt like to watch kitchen waterfalls. She likes bathroom waterfalls,

Now, every morning, whether I'm late to work or not, all operations in my bathroom halt while Lady Dottie watches her quota of three waterfalls. Wo have another bathroom but for some reason Lady Dottie doesnt like to watch waterfalls in it.

I cite this incident only to show how a cat that comes into a house as a guest stays to become its boss. Four months ago when Lady Dottie arrived as a mewing kitten, I was one of the dog - lovlngest, cat - disdaining-est husbands in America.

Npw I find my life is surrounded by four white paws. So are the lives of the rest of our family.

We spend most of our time now pleasing Lady Dottie. Her whims are getting more imperial every day.

I can remember when Lady DotUe was overjoyed to get a can of cat food. Not now. The other night I arrived home and smelled a turkey roasting in the oven.

Whos coming to dinner president Eisenhower? I asked.

No. said my wife, Frances.

I Just thought Lady Dottle was getting tired of beef liver. The turkey will make her feel better.

I thought of observing that if I had asked for turkey It would have been granted only as *-deathbed request. But I held my peace. A husband who openly admits he is jealous of a cat has already lost his battlefield. This attitude paid off. Lady Dottie let me have a fair share of the turkey.

Strength For Today

By EARL L. DOUGLASS BOUGHT AND GIVEN

Yes, you may have your suit cleaned and back by 4:30 thia afternoon, but the charge will be twenty-five per cent extra.

We get In this world what we pay for. To be sure, there are some things which cannot be purchased at any price. Love cannot be purchased, nor can honor or health. We cannot buy the skill which will make us a great pianist or a widely acclaimed artist over night. Love and honor are above purchase; health and accomplishment come as the result of our obedience to law and our diligence and perseverance. But there are many things which can be bought with money, and the fact that we over e.stimate the number and value of such purchaseable things, does not diminish the fact that they exist.

However, the pay-and-get formula is much more true than most people realize, or at least are willing to admit. For while love is given, and sometimes for no price at all, it is usually given in exchange for love, or personal worth, or service. Admiration is given, but generally to those who have made themselves admirable by what they did and what they are.

The real prizes In life come high. Yes. they are always glven,-but yes, also, they are alwaya purchased.

low Even Thrift Con Be Toxec.

By ELMER ROE.SSNER Things were tough in the republic of Dcmocrastan. The people were clamoring for new schools with swimming pwLs, government sponsored art shows and classier pensloiu?.

But Income taxes had reached 90 per cent in top brackets, everything from sutos to light bulbs carried excLses. and nulk was taxed so much that the people would have dntnk wins-key liustead If U were not fot- the fact it was taxed even more.

The President called in hi.s Chancellor, of the Kxchanqiier and the head of his FedersI Reverse Board. We hsve taxed verythina to raise money.>' he said. "Nothing ts msde. nothing is done without the psvinent of a tax. We tax tlie dead, we lax the untKini Itio former with e.siate ta.vei, the latter by load-it^g them with a share of the na-Uonal debt. We tax everything. Well. e\erythlng except savings AN IDFA Hm' .said the Chancellor. Not ssvlnas? How did that es- cape u.h ' '

Ws aouldu t daip." aaid tb

President. Thrift - the ant and the gra.sshopper Benjamin Franklin and all that! It would tinriermlne our cultural and ethical concepts. Besides the banks, the insurance companies, the savings and loan associations and all the other savings institution* wmuld raise hell. We cant afford to have trouble with them If we ever hope to get elected again

Right!" said the Federal Revease man. We couldnt Ju.st fax .savings. People would say, hU eyes twinkled, that it would be confiscatory. But perhaps we can dip into the peoples .tv-ings without calling it a tax, without even letting them know its happejiing.

It doe.snt sound honest I mean 1 diWi't think we could get away wlUli it. said the Pre*!-deni. * How would we go about lt':>

THE OLD FORMULA

Its ei.xy, said the Fed man We Just give the people all tlM* .things they want, even the swimming pools. But instead of increasing taxes. Wfwborrow the mouei'.

Couldnt we just print more? asked the President.

Of course not, said the Fed man. That would be debasing the currency. People wouldnt stand for it. WeTl borrow the money from banks, givinf them bonds to hold. Then whenever

they need money, they can pul up the bonds as security, thus increasing the supply of credit.

How will that tax the savings? asked the President.

By doubling the amount of credit, the plan will simply cut the buying power of savings in half. the Fed man tiuiwered.

The plan takes away half the real value of the savings and uses it to build wmming pools or hlghway.s, apartment hous-e.s. or whatever the people want

Wont the savers object?" NO ONE ALARMED

Not very much. In the flwt place, this plan works fglrly

.ilowly. It will be years before they realize that half thetr *av-Incs arc gone Even thpn. what they have left will have the

same name as tbejr saviugs used

to have -- a thousand pesos, ten thousand marks, a hundred thousand dollars, a million pounds, or whatever the label was. ^

Besides, those who own real estate or stocks will think they are richer, because the name of the price of those things will have gone up. A one-hundred slmoleon stock will be worth two hundred slmoleons; a ten thousand bucko house will be priced at twenty thousand buck-oe. Of course, they wont be any more vsluable. It will Just seem so because there is so much more credit bidding for them.

Bay thia to a great ayatem! exclaimed the President. We raise the money and the people we take it from never know its gone until ita too late. Something as fiM>d as Uiis ought to have a name

It idready haa a name, aaid the Chancellor of the Excl-quer. Ifs caJUed inilatton'.

Nice boomy sound lo It." remarked the President I have onb' one othet' queatioa. Xa tt hooast?'*