PAGE FOURTHE DAILY REFLECTOR, GREENVILLE, N. C

i^rtday, Marcli E 1959

Friday, March 6,' 1959

Beginning To Exploit Possibilities

The average increase of 23 per cent in farm in- least in part to the use of better farming practices, come for North Carolina during 1958 as compared more careful cultivation to produce better quality crops, with IBS'} is indicative o a great deal more thah the and greater efficiency'^^n farming operations, ideal growing conditions which were widespread last ' All of,these factorsexcept the weather condi-year. tions of coursemight ue s immed up with the assertion

Without question the unusually good growing that farmers of North Carolina are making better use season which farmers throughout the state experienced of what they have and are be?'rming to exploit to a had a great deal to do with the big jump in average greater extent the agricultural opportunities which lie farm income. We find it difficult to attribute the in- before them.

creased income entirely to good growing conditions, It is indeed a healthy siUiaLon not only for the however. * farmers of North Carolina, but for the entire economy

An appreciable part of the 23 per cent increase state.

in the average farm income of the state must be attributed to the revenue farmers realized frona supplemental crops.

Production of livestock and poultry as well as m H J1

new field crops has increesed rapidly I" t.'aro- 1 remenClOUS AuVQIlCGS

lina during the pa.st two years. Though tobacco re-

It's An Old American Custom

Pioneer IV Displays

mains the big money crop for m>et farms in Eastern

Pioneer IV, speeding toward an orbit around the

North Carolina, there has been a marked increase in considerably boosted American morale and

the production of hogs, cattle and poultry. These new gjygu evidence of a narrowing of the gap between crops have begun producing income which ;s helping gyyiet and U. S. achievements in probing outer space, to bolster the farm revenue formerly realized from to- ^an take the word of British scientists who

bacco and other major cash crops. have been tracking Pioneer IV on its journey, this

To some extent at least they are helping farmers gpgce probe shows decisive American superiority so

span the economic gap between good and bad crop gg scientific iiiformation obtained from the shot years. They are also helping farmers realize a larger jg concerned. British scenlsts have declared considerably more information on conditions in space has been

secured from the American lunar rocket than was

obtained from the January shot by the Russians which supposedly is in orbit aroi^id the sun.

The very fact that this nation now has a space vehicle going into orbit around the sun indicates the immense progress that has been made since the first Russian Sputnik was sent into orbit around the earth. The fact tnat scientists of another nation have declared the American probe in some respects superior to the latest Soviet space shot likewise is indicative of the results being obtained from the belated space *'cra?h" program undertaken by the United States.

income from what they produce particularly where graina big North Carolina cropis marketed through livestock rather than as grain.

The increase in income must also be attributed at

Attention Goes Aate-Mokina

rri

..O

By LYNN NI8BET

UTILITIES ~ Introduction of the reorganization commUaion bill to reduce membership on the State Utllltiea Commlaalon irom five to three and give them aaitry. retirement and prestige provisions comparable to Judges of the Superior Court, followed Independent Introductions of bin tending to decrease control of the commission over some small operations.

These developments, plus the fast-growing Importance of natural gas, involving regulation over pipeline routes and rates, and the continuing wars among unregulated municipal and REA electric systems and power companies which are supervised by the commission, have focused unusual public attention on the technical phases of rale-maltlng.

The Utilities Commission hss BO control over rates set by municipal electric syatems, although there are aeveral thousands miles of power lines owned by municlpaUtles serving areas far beyond their corporate limits, REA cooperative membership systems also are exempted from rale regulation, although the Commission has at times exercised some control over allocation of territory for these types of power and telephone services.

Governor Hodges told a news conference some weeks ago that In addition to the administration bill seeking reduction in membership, the Utilities Commission Itself would present some bills designed to moderniae Its rate-fixing policies,

RATE BASE Thi bons of contention is the base upon which rates will be figured to produce a reasonable dividend on the investment. Guarantee of a reasonable return on invested money Is one of the eompensations given to public utilities for the control exercised by government over their operations. Another very Important comj>ensalion Is the right of eminent domstn, the authority delegated by the sovereign State to the company to take property against the will of the owner for public utility use, at a price determined by Judicial process rather than the price asked by the owner.

There are four major bases of valuation for rate purposes. One Is the original cost of the laciUty. Another is what It would cost at current prices to replsce the facility. The third la what is called "p r u d e n t investment %alue, which combtnea several factors Including that of established rates. Finally, la the fair value concept what the property Is worth now. That concept is that BO matter whst the railroad or electric or gas or power line cost w'hen it was built, or what it would cost to replace it now, or what

the speculative prudent Investment value might be. the current fair value should be the base for fixing rates to yield reasonable dividend.

Thirty-four SUtes and ths District of Columbia use the fair value yardstick for power company rates. One State requires that original cost be considered. Two States have statutory requirement for the prudent Investment base, and one requires original cost. Five States have no legislation on rate base, three have legislation but no regulating agency and two (Nebraska and Tennessee) are so completely public power as to need no control over electric power companies, All these States have comparable, though slightly different formula, laws governing rate fixing for gas, railroad and telephone operations.

FAIR VALUE The 'fair value" concept was born in the depression period a quarter century ago, Utilities then Insisted upon continuing the original cost base for rate making. Government agencies argued that the depressed value should be considered with respect to utilities as well as other areas of business activity. If the fair value of a utility was only 7S per cent of Its cost. It should derive yield on that figure rather than on what It cost when built. Three-fourth of the fltstes accepted that philosophy and Imposed that yardsLlok. even though at the time some fscllltles might have been replaced new for lesa than the adjudged fair value.

The big problem Is to establish criteria for determining fair value. Many considerations enter Into the equation, Original cost less depreciation is one, but cannot stand alone-because sometimes there Is appreciation In value. Reproduction cost Is a factor, but complications arise there because of new discoveries in more efficient facilillos. The prudent investment factor la speculative, and influenced to large extent by ^hat rales may be authorized.

The tug of war between utlllllrs and advocat4s of statutory change in rate making base is likely to be on the method of determining what is fair value. Once that determination is made the fixing of rates becomes largely a computing machine operation. Such a rate on a certain valuation will produce this or that dividend yield.

After the formula for determining fair value has been agreed upon, the Utllilles CommLsalon still has Judicial respoi\slbllUy to approve or disallow certain operational expenses, to make sure that customers are not overcharged Just to pay exorbitant salaries to company executives,

prugram unutjrinHen uy me umicu A T "sZTXT HP A VT

By no mean doe this latest shot mean that the ALiVliN lXJ^LJxv

United Stated can rest comfortably upon the assurance that it is ahead of Russia in the total space program. It does, however, ubstantiate official claims that the two nations are very nearly on a par in their respective space programs V'ery likely it will be the signal for a more intensive effort on the part of eacii nation to gain clear superiority in their space programs.

The United State.i must continue to push its space program with all deliberate speed in order that it will not lag behind its chief competitor. It would be tragic indeed for us to rest even momentarily on our laurels now that Pioneer IV is in flight.

j Shallow Basis Ootimism

Notes Taken On

7he

Ob

tor

The Dsdly Reflector

INCORPORATED

Published Every Afternoon Except Sunday E.slablishtd 1882 DAVID JULIAN WHICHARD, Publlshtr Entered si Post Offloe, OreeoviUe, N. 0-. as MKxmd clase mall msttti.

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By JAMES MARLOW

WASHINGTON (AP) President Elsenhower expresses some optimism about the BovieU latest note over Berlin and Germany. Just how deep is the optimism? From an examination of all he said Wednesday it doesnt look very deep.

He was asked at his news conference what he thought of the Soviet acceptance of the Western proposal for a foreign ministers conference on Berlin and Germany.

He said, "we are taking it for the moment Just as optimistically as we can," This, in view of what else he said, turned out to be a very restrained optimism.

It was, however, In keeping with the kind of international sign of relief that went up when the Soviets, by accepUng the idea of a ministers meeting, showed they were at least willing to talk a bit.

This sigh was almost instantly stuffed back down the International throat when the Soviets followed up their acceptance by repealing the position they had taken before;

1. That a foreign ministers meeting is Ju.st a kind of gum-beating operation by people who cant really decide anything since the decisioiw are made by meo at the lop

2. That, therefore, the only way to get things done is to have the top men. like President Elsenhower and Premier Nikita Khrushchev, get together in a summit meeting,

Even Rrltlsh Prime Minister Harold Macmillan, who had Just finished a series of meetings with Khrushchev, didn't come away hubbllng with hope Instead, he was talking about the "danger ous situation' building up around Berlin

Elsenhower told his news con

ference the time will probably come to keep American bombera on a 24-hour air alert "If this situation develop* along the lines that it appeara to be going."

He didnt say precisely what situation he had In mind but the question he was answering was the quesUon of Increasing American defense against the background of continuing tension between East and West,

That wouldnt make it seem Elsenhower Is overly optimistic about settlements with the U.S.-8.R.

One of the key points In the Impending crisis over Berlin has been Khrushchevs demand that the Western allies pull their 10,-000 troops out of West Berlin, which lies In the heart of Communist East Germany,

Elsenhower repeated his statement that this country would never abandon Its rights and re-spon.slbilltles In Berlin.

Khrushchev has argued the only way to get E^ist and West Germany united la by letting them arrange It between themselves. Thais throwing cold water on the Wests contention that the way to unification Is through free elections.

Elsenhower again took his stand on the aide of free elections.

When he was asked if Macmillans visit to Khrushchev served a useful purpose. Elsenhower responded: "Now, when you come down to the possibility that there may have been some lessening of this rigidity ... in the Soviet attitude, that we cant tell until events unfold a little hirther."

Although Khrushchev has insisted that only a summit meeting can solve anything. Elsenhower said the oppaslte.

"What I keep deploring Is this idea of talking about summit mpetlngs when you cannot see any pasalbllUv of s ron.structtve step coming out of it." he said.

Carolina men had better stay way from the Planning-Zoning Commission meetings at least until the ACC tournament ends and college rivalries are forgotten.

Three members of the commission were waiting for others to show up the other night. One mentioned his days at N. C. Slate In the course of the conversation. Soon the next man down the table mentioned that he, too, wss a State alumnus and the thiid po.nteil ont that he amended the Raleigh college.

The three were Chairman Frank Little. City Manager Leonard Bloxam and Councilman Lester E. Turnage.

Oh yes. Graham Quinn was waiting to have an addition to Carolina Heights subdivision approved.

He let It be known real quick that he was a graduate of N.C. State, also.

Your columnist was there, by the way and nope, I didnt go to N.C. State. Im an East Carolina College man all the way and proud of it!

Took a walk down First St. the other day to snap a picture of an upcoming story.

It's surprising to see what has been done In an area which was once a ravine grown up in underbrush. City crews have constructed a fiU across the stream which passes through the area. Curb and gutter has been Installed nearly all the way from the end of pavement at Cotanche St. to Woodlawn Ave. where pavement picks up again.

Wet weather has hampered crcv.s In working on the street, out It appears that It shouldnt .?e too long before the wide new street wUl be paved.

Opening of the street will prevent traffic bottle necks in the northern edge of the business section. Traffic wishing to move across town from Greene St. may use First St. without making use of business streets.

What's more It will be one of the widest streets in the city when it is finished. It will be a welcome addition to Uie citys street system.

Some visitors from Michigan

Other E(ditors Saying... Make Scholars Wheels

ODinions ..n .3rie.: t

(Goldsboro News-Argns)

Until Sputnik went into orbit the top scholars in high school had been students of low estate In the opinion of tbelr mates.

Sputnik changed thingt. But not enough. And the new shine on scholarship, which burned brightly as long as a Sputnik was new. Is dimming.

How, then, can schclars. or brains or egg heads, among our children be given the plans of respect and high position that mental attainment jusUf'es Ho'V can we make i.he children ct brain feel the importsr>ce w'hlch the children of brawn savors'*

How csn <he student body of high schools htor scholarship as much as they honor athletic greats?

There started In New .Jersey x few years ago a plan ahlch places scholastic attainment on a par with athletic prowess.

A schottrshlp letter was created. It 1. BTantc'-j only to those who make honors In all sub-J<^c. The let or ha.s Its own insignia ip de.signate lji wearer as M man ot jiupe*!or mental ac-compb.vhtr.eni. The letter is made more val'iable as additional

stars are won rnrough the high school year by conUsied honors work.

A'.vo'I of thi scholastic letters Is f h.nf *;'?:iasion. The cere-rnony *-3 'jo*' at assemblies where oil gather. Winners

of fcu)!aUc letters get the big-mon ?rcRtment in bright em-uhosis. Wsiching the prescuta-Mon of the letters, the school mates know that here Is some-tidng fine, important, and that the boy or girl who gains the disMuction is really a big wheel.

it wound* Madison Avenueish. And it is. But It Is typically Ame^'fcan and If sufficiently nurtured and promoted it might do good.

June Rose, for 40 years superintendent of Greenville schools, says that his high schools are .tudylng Implementing the Idea ' there. It was brought to attention by East Carolina College Vice President, Dr. Leo Jenkins, who was an administrator In New Jersey before coming to EC.

In Goldsboro Principal C. W. Twiford has discussed the idea wtth his teachers and it wtll be explored fully to determine if it can be made to work locally.

Words

ina

have let It be known they are appreciative of courtesies extended by Greenville policemen.

It had been a number of years since their last visit here, and they were having some difficulty fndlng the addresses they were seeking.

On seeing a police car. they stopped to inquire- The obliging officers didnt tell them how to get there; Instead, they said "Follow us,NI!fd led the visitn to where they wanted to go.

Such gestures help make the slogan "Our OreenvUle, yours if you come", more meaningful.

Strength For Today

By EARL L. DOUGLASS INNER AND OinTER TEMPLES

In the eleventh chapter of Mark is an account of how Jesus turned back men who were carrying vessels tJmough the temple.

These men were not doing anything wrong in itseH. In faet, they were not violating any very sacred precinct, for they were simply carrying on their daily work, taking a shortcut through that saction of the temple frequented not only by Jews but by people from other nations.

But Jesus knew that if men grew careless about the outer temple today they would be tempted to violate the inner temple tomorrow. There was nothing parUcularly heinous about carrying a vessel through this outer court, but the man who would begin by carrying it across the outer court would tend to lose his respect for the temple and later might violate even the Holy of HoUm.

There is a lesson here for aU of us, namely, that we should not take a free and easy attitude toward anything sacred. That sort of thing produces hardening of a higher sensibility. Violate something that is only a little sacred today and it becomes easier for us to violate scnt-thing immeasurably sacred tomorrow. Violate the other court today; violate the Holy of Holies tomorrow.

We are told that human freedom is preserved only at the cost of eternal vigilance. We can be sure that the same is true also of our souls and the spiritual riches contained therein. We wasUy become indifferent to those things which may demolish our characters and destroy our souls.

Destroy

B HAL BOTLB

NEW YCmK (API - Thill

I hope never to hear to my d age;

"Let's five this Job to the Old Man. Even he oant foul up thle one;*

"Now Dad. youre too sensitive. Of course, were glad to see you every tme you drop in. What makes you think were Mt?* "B's hard to know what really will amuse them at that age.'* "Stop arguing and put on your muffler. You know you catch colds so easily.

"You do? You should have scfen how he looked when he was only 0."

"Sh-h-h-h! Dont talk so loud. Everythings gone but his ears. "Of courae be still likes that suit. After all it was fashionable in his time."

"But really. Grandpa, ymi must have at least SEEN some covered wagons.

"Weve got too many older people working for us now. What this organisation needs is young blood." ^

"Go ahead and have another drink. The doctor says its good for you.

"Ciur paper plans to run a series of interviews with the towns oldest citizens, and we thought youd"

"Sorry about the health Insurance. Youre beyond the age bracket. However, we can sUU sell you an accident policy. "Wonder who left their false teeth to the mens washroom? "Lets five him something really useful for his birthday. How about a rocking chair?

"Thats the trouble with men your age, Dad. Youre afraid to gamble on the future. Now, if youll Just lend me

"Hes so forgetful. If he tells the story just one more time. Ill

"Wonder what he thinks about when he sits thre just staring. "Its not that hes underfoot exactly. Hes Just there.

Quote...

"If democracy led by America loses in the only Aslan country that was tutored in American democratic ways (the Philippines). where else can America hope to succeed" PhiUppuies Vice President Macapagal.

"The entire China mainland is like a big concentration camp. People live in tribulation and frfear of death, fear of arrest, fear of hunger.*~Hsi Lun, Chinese banker who fled to Formosa.

SAI-t DRIVING TIP

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patoto.

NalvMllpt mvb 4h 6M toga Matar MM, ftlitofte taNaft ta faftair atatoMMtaf fvairic Mar Mto araal ff MU. Bal ftw ftai ftrtaaa arlll aaaapi Ma ftatap rfttair taM rtolc M aatitaftl, la

ftrtoar to abata tapM toamatonaaaa.

It I-* in chHiHCtcr that a ma-jorUy of our gi>vcrnn\cnt school iuppiitcrs will do almost any-thlne In I heir p<wcr rather (han prnnh private schools to flouri?*h RH they should. ConsequeJUly. (hey are .ilxrtit the bustnexn of li.neanluR taxes and building new aivd btgger scIumU buUdtngs from dawn to du-'k And it i.s relf-appnrent that if the American people are going to be robt)ed In advance by tiu' tax collector, they will have Ic'ss of their own substance bestow uvxut a truly Iree a'rd iton-poUflml scIuhvI system." Hcmth Boston (Va ) Halifax Gazette.

"Whether 'a person works or not. has IMtle bearing on hoW' long he w ill Uve, say* a plty.slclan. It does In the ca.se of many of us Doc If we don't work, wed have to atop eating - Jack.son

(Mlsi.) State Time.s.

Mf^tern clvlUiiatlon frequejd-ly altcmpts to n*mtel |>eoplr to be moral In these times we are all too prone to attempt to firce others to do that which we think, U\ our own fallible judgment, Is mmal Witness the prohibit ion amandment, various

blue law.s passc'd at various times, rensor.'^hlp laws, remem-ber-the-i<rtbbatlr laws, etc. Each of these laws in aimed at making |>enple better and more nmral by means of force. Kaoh such law I an immoral meant employed to obtain a moral re-,sult.- Colorado Springs cCol.) Oftxette.

"Kconomlc forecasters see an upturn in automobUe sales this year. TlveyTe convinced that, in the new models, beautv Ix more tlinn fin deep" New Orleans States and Item.

Every day see.** (10 mtlUon newpat>era printed In the United State* Of that vast number of pa^rers printed eight of every ten are delivered at \merlcan home.s hy new* carfiers The tola I number w( cart cr.c tiow engaged in dclivertnp pairers l.s estim!tl"d vt 000.000. New douU there arc a great, number of different types of boy* found among those 600.000 Hu the ranks of thm,* i^ajrer (.vrvlers would t>e about the iant placHF in America to look for any Imposing number of Juvenile delinquent s- Wichita FalU Times.

^anore LooDholes, Be A Sucker

By ELMER ROESNER

It look* as If those of us who pay Federal Income taxes without gtmmiclu. loopholes or raz-xlc-daxzles art Just old fashioned suckers.

It ttemli we are paying from 37 5 per cent to 100 per cent more than the smait fallows. If all the loopholes were closed and they were forc(d to pay more, the basic rate* could he lowered and we would pay less In short, we dumb-bunnles are paying part of the wise boys' share of government.

All this ts indicated by the sol-icUation from a tax service "If wt could advise but a single tax saving it would be the one that lets part of a man's income be taxed to others in his family, for a sliarply lower tax all around, it wind* up. Tlien It pitches this exantplr; SAVING A QUICK $600 "Thi* titan had $10.000 of Income to report and .so long as he r-'iiorted it all alone, he was hit for a S2.300 tax When he learned of the new method he took advanragt of it immediate

ly, to be taxed on juat one-third, of it, with the other two-thirds taxed to two of his children, and the tax dropped to only 11.600.

"On $13.000 handled this same way. the tax drops from $3,620 to onlv $2.620 On $20,000 you can save $1,500, It shifts your income wlUiout .vou in any way losing control of It." The last sentence is in red, with the last nine words underscored Then it throws these fast ones: "Is your company using the plan where any salary increase or bonus you draw from now on can reach you as a capital gain, where your tax is but half T you own property, securities, dividend-paying stocks, have you set s: up so you get the special lax i'xcmption on dlvi-dcnc.V"

savint; g\ equipment

* When replacing equipment does your company first sell the old and then buy the new or lio you stmplv trade in the old ON the new The right choice can mean a substantial tax saving

"If you get rents or royalties

do you use the method that cuts the tax up to 50 per cent on this type of Income?

"For landlords and tenants; Since one of these two taxpayers can fix up the property and get a far greater tax break from the outlay than if the other one handled It, are you using this angle?

Has your company the ar-rangbment whereby It can give a key man or the owner say an extra $S,000 a year and tax-deduct the full IS.OOO whUe the man is taxed on but $2.500 of it?

Now that the great tax law says a company can get the tax advantages of both a corporation and a noncorporation at the same time and wiUiout the disadvantages of either have you taken action to cash in on this amazing tax break?"

all above board

AU of these gimmick* are legal and proper. Some, such as the la.xt two, have been reported here

But Congress has made the tax law so complicated, and the Internal Revenue Service has made U tvca mort intricate vilh

toterpretotioot and rtatofi, Oiat the man without a tax ahark at his sarvica may pay a tMrd more taxaa than ha aead.

In falrneas to us suekars, tha fovamment should print a mail box and this lagend on tax foms: I taka the toopholaa. Then aU taxpayers putting a ehack in tha box would automatically get a third off on thair taxes.

That would make tham available to everybody, not Juat tha amart ar adviee-buytog taismy-ers

SHORT AND SIGNIFICANT BITS OF BU81NEM

Shoppers wlw buy ctothlnr to "skip sixes, that is. small, medium. Urga and extra large, can sometimea expect more ahrink-age than in garments with marked sizes, the American InaUtute of Laundry swys . . . Coupons good for discounts on packeged foods now run $1 blUlon a year estimates Paul S. WUlis, luwaktent of Grocery Manufacturers of America . . . Johns ManvlUc has given its no salesmen the option of leasing their xrara from a rental agency or af buytof titeiB.