rAci

POUR

THE DAILY REFLECTOR. CREENVILLE. N. C

Motidlay, May 11, 1959

Monday. May 11, 1959

Rate Hikes Alone Not The Answer

The Post Office Department, which has made techniques. Those procedures and techniques, general-relies of the Pony Express, penny post cards and ly speaking, are as out of place today as the idea that three-cent stamps, is limbering, up to take another if you ride far enough to the west youTl fall off the poke at first-class and air mail rates. edge of the world.

Postmaster General Arthur Summerfield has Instead of asking for increases in postal rates, started things with a proposal to increase first-class it seems to us the Postmaster General could better letter and air mail rates a penny each. The proposal spend his time revising and updating his department, was hinted in January, by President Eisenhower, in There are free enterprise organizations in our capita-the presidents annual budget message to Congress, listic country trained in just such things, and it is Summerfield explains the propo.sed increases as doubtful that their advice and recommendations would necessary to assure that postal revenues will more cost the American people 335 million dollars a year, nearly equal postal expenditures. He estimated the If Summerfield will make an effort to look be-increases would bring in an additional 335 million yond the relics he lives with in his department, he has dollars annually. ^ chance to make himself a place in American history

Unless our memory has failed completely, an in- ^i>stmastcr General who did wh^ no one else

crease in raten for the same two classes of mail order- revise the Post Office Department.

Seems He Still Something On The Ball

ed less than 10 months ago was put across with the same type argument.

There is no question in anyones mind that the Post Office Department needs something to bolster its financial .situation. Its current operating deficit has been c.stimated at more than 500 million dollars a year.

The reality of such an operating deficit in the face of last years increases in postal rates raises the question, however, of whether rate increases alone will do any good. The most recent increase.s are certain to have had some advantageous effect, but basic laws of economics suggest that prices increases alone will not solve deficit problems.

As it is pictured, the Post Office Department is a thing uniijue in the world. No other business in the world could survive with its operating procedures and

Symbol O::

xecutive

By I.YNN NISBKT

EXECUTIVF: Many tlmr

rtiirinB flrbalPR on propohfrt constitutional chanKcs anil pcndlns hlllii ectnK KOVfiiuncnt orga-ninatlon rcfcipncra have born made to the Govoijior as the "executive department" even y<hrn the conflict waa between that office and others filled by elected constltutional officer.

Article III, Sec I of the Constitution reads: "The Executive Department shall consist of a Governor, in whom shall hr vested the RUiiH'iTir executive jmwer of the State, a Treasurer, a Superntident of Public Instruction. 11 Attorney General, a Couifuissiotier of Agrlrulture, a Commtsslouer of Lfbor and a (ommlssloner of Insuraiice " Thcae officers all are elected by the peo|)le t the same lime, in the SHine manner and for the same tenure hn the (i(vernor.

While not reeognl/.ed speelfl-cally by the cotusUtiiUoii there are numerous i>pointed adniln* I'strative officil,s Included in the executive branch CAD, high-W'ay, revenue, etc While ihe Governor or any elected officer may seek at times to invade prerogatives of other, It Is not a eon-tesf, between the executive de partmenl and another branch of government It Is intf'nml, and the c(ustllntlonHl declflifttlon ihat the "supreine executive power of the Klale" shall l>e vested in the Governor makes that offlee a .symbol of the entire deparl-menl. In fact, the consUtiitlon goes into some detail setting out the duUea of the Governor, but says of others only that Ihelr duties shall be prescribed by law

INSURANCE The growing Importance of Insurance and the dependence which people feel upon Insurance policies has hern 11-lusUated hv several recent legislativo rievelnpmrnls.

The riifftciilty of ohtaliilng extended coverage on coastal pro perly since I lie series of hurricanes led to Introduction of a liill lequlrlng compgnles to write policas at some rate whether or not they wanted the busines.s A subcommltlae was named to go Into the matter and recommend ed that such a law should not be enacted. Inataad It suggests a study commission to report to the next Legi.xlature with reeom-mendallnn for appropriate law. Meantime, companies were urged to pool resources if necesaary and afford protection.

A hill offered by Sen. Wills Hancock of Gianvllle is pending providing for an liusurance Commission to share rc.sponstl)lllty W'lth the elected Commission of Insurance for approving rale.x on f-lre and casualty insurniice

There have tieen a number of blUa, several already ratified, extending coverage or increasing amounts for unemployment and Industrial accidents. The liC)? session enacted law requiring every application of re-gtslrerlng a motor vehicle to be accompanied by an Insurance policy or a bond to assure ability to pay claims for damages and injury resulting from traffic accidents.

1 his session has passed a number of local acts establishing law officers relief systems, which Is a form of insurance. Although lawyers on the Judiciary commltiees think the.se acts are unconstitutional they have not been challenged In court. A firemens benefit fmid set up la,st session has been outlawed by the Hupreme Court and a almi-lar i)lll, eliminating the had features, is before the General Aaaembly now.

QUEfiTIONNAIUE - Every once In awhile F E Wallace dr , ctmlrmiui of the legislattve nmi natlonal affairs committee of the Kirusltoi ehamt)er of corn-Micrce, aenda out a quesUonnatre to members asking their opinion (01 public matters The latest mailing brought 117 repites with yes or no answers to 45 questions. Majorll.v opposed tlie (ax wUhholdliig plan and most of the specliic new tax source ,suge.stloii* Rut by mote than two to one margin they said they would approve expansion of the mental hospital and educational prognmis, even if additional taxes wera required Preponderant majoilty favored removing exem-lions from the sales tax sc he-dole before levying any "new" taxes

Uniform standards for appral nl of property for taxation and mandalory periodic revaluation were approved by wide margin.

Minimum wage laws, automo-Idl* tnspeclton, aclenll^lc tests for rirunkennes.s and compulsorv automnbllp insurance were ait favored. More local aulhoiily for munlctpalltles were approved, except with rasppct to streets. A twoto-one majurily thought Ilia lilghway commlsaton ouglit to be respoivsible for roads Inside towns and cllles as well as outside.

Uniform procedure and ro.st sctiedules In courts throughout tlie slate, atiollslimenl of fees a.s basis for Judicial pay at any level and otijer couit reforms pi'oposed by the Hell and Cnu-stltullonnl committees were overwhelmingly appKued

These views repiesent composite thinking of husine.ss and pio-feaslonal men in one romntunl-ty, but serve as some indica tion of how people are thinking throughout the Stale

And it wouldn't cost him five cents to send a first-class letter to his friends when he got through, either.

Future Largely Hinges On Geneva Meetings

Beginning of the Foreign Minister* Conference in Geneva is being watched by people of the Free World for some indication of what may be accomplished during the meeting . and whether it will lead to a summit conference late rthis summer.

It is generally conceded while the West may he expected to stand firm on its position in Berlin, both the West and the-Soviets may be prepared to make some concessions in order to lay the groundwork for a summit conference. What these conccs.sioni will be, or where the common ground for reaching agreements will be remains to be seen.

The negotiations may be expected to be among the loughe.st in recent fact-to-face meetings between leaders of the East and West. The conference, while it will not he drawn out into months, is unlikely to come to any quick agreements on what may be done

to ease the Berlin crisis and tension in Europe. The Dy JJAL BOYLE Soviets have committed themselves to driving Western forces out of Berlin. The Western Big Three, on the olhcr hand, are committeed to remaining in Berlin and affording protection against communism for the people of that divided city.

Though^the foreign ministers face the most difficult of tasks, on what they are able to do in Geneva ^

may well hinge the outcome of the Berlin crisis. The

result of the meeting which began in Geneva today may average U.S. wife today

determine whether tensions between Ea.st and West foi^Vyea*r Her^actual'llfe

le.s.sen in the months aheatl, or whether they increase apan l only six to seven years

as the world once more is drawn to the brink of war.

jOOK

At The Tecorc.

Spidicate. Tne.

A Widow For 10 Years

NEW YORK AP) Things a

Control Bill On

Trice Increases

longer than that of her husband, but she UAually marries a man three years older than herself.

f

James Hoban, ihe man who designed the White House, was paid only $.500 for the Job one of the best government Investments In (history.

Wisdom in capsule; "Recessions begin and end in the minds

of men." Charles G. Mortimer, president of General Poods.

Do you have trouble sticking to a diet? Some snakes can live from one to two years without food. They absorb the fat from their own bodies.

The price of cartoon comedy zoomed. Thirty years ago Walt Disney could produce a Mickey Mouse one-reeler for $7.000. Now an animated one reel iUm costs $60,000 or more.

How vital Is blood to you? It amounts only to about one sixteenth to one twentieth of your body weight. But ordinarily the

The Daily Reflector

INCORPORATED Published Every Afternoon Except Sunday Established 1882 DAVID JULIAN WHICHARD, Publisher

Bnterrd at Post Office, OrcenvUl#, N. aa second clase mall matter

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By RALPH ROBKV

Henator Joseph O'Mahoney D-Wyo 1 introduced a bill early In this session of Congress which 1 of utmost Important to, and which la receiving the widespread attention of, all businessmen It represents an attempt to control price Increases

Back of the bill, and the Scna-lor Introducrfl virtually the same tnea.snre In lf4H. Is a l)elipf that our so called concentrated inriu.^-tries raise prices at will, regardless of the supply-and-demand situation. There Is no factual basis for this contention, but it continues to thrive and gain supporters

The current hill (,s 2i.5t applies to those conimodtties where eight or fewer rornpHnies account for at least one-lialf Uie total sales It also applies only to lliose companies which have capital. surplus and undivided profits of $10 million or more In lhe.se circuntslances, such companies must give .10 days notice to the Federal Trade Commission and the Attorney General of their intention to raise prlce.s, and the Commission must then hold public hearings. At the end of .10 (lays the price Increases may go into effect, regardless of the opinion of the Federal Trade Commis.sion or the Attorney General,

It Is the contention of Senator OMahoney. and other proponents of the bill, that such public scrutiny will prevent all price increases which are not atisolutelv necessary. The Senator becomes quite outraged if it l.s suggested that this is a price control plan.

Actually, of cour,se. it l.s a price contiol prop(Mal For ;i da vs it U a price freeze, and beyond that U would have the effect of lieing a price control mechanism. .Price contnd.s will not work, either in peace or war, without wage conlroLs, and reir I direction of our entire economic system, and such central direction Us not a.s efficient nor aa effective as individual Judgments The only exception one needs to make to this statement 1 to cover a .situation wherein the entire nation Us concentral-tng on one objective such as war

Furlher, there is no possibility of limiting the area covered by

either the current bill or modification of it. As now ed it refers both to basic modules and lines of commerce. Neither of these terms is clear-cut and precise. Steel is a basic commodity, but automobiles are not, and it Is the obvious intention to bring both these under the bill Lines of commerce can mean almost anything, and by refining the definition sufficiently there is not a commodity of any importance where It cannot be found that no more than eight producer* have at least half the market.

And the more concentrated the Industry the more wdll the smaller firm.s feel the effect of this bill Such small firms cannot act Independently In regard to prices, And they probably will not jiave the backlog of financial strength to produce and sell at a loss (or a very long period. Thus if a large company refuses. or falls, to give the notice that it is going to raise prices, the smaller company may well so bankrupt In.stead of limiting concentration, therefore, thUs bill would Increase concentration.

Another important consideration is that if a company has to give notice of a price rUse. and l>e subjected to an exhaustive in-vestlgation of Us costs and other private company mailers, it will certainly be slow in reducing prices. It will be alow because It never can lift the prices back to their previous level without going through Ihe ordeal of pre-.. notification and investigation. Fewer decUnlng price, mean faster, not slower. Inflation, Finally, such a ayslem of prlce ceilings could provide a powerful temptation to manufacturers to reduce quality, service, or anything else that will enable them to hold the price without suffering a loss. *

The AdmlnUtratlon Lx opposed to the proposal and says that 11 Is "unUmely and unneces.xary." Moat business also Is opposed, and many labor spokesmen are worried because they see it as a threat to theU" collective bargaining demands Fortunately. It is believed he hill has little or no chance of pa.\sage But since the proposal has been around for eleven ycais Conttnued On Paga

S Other Editors Saying... Vital To All Our People

By Oliver Emmerich, Editor

Jackaon (Miss.) Btato Times

The editor of the State Times attained a full measure of comfort from a speech delivered in the Waldorf-Astoria hotel In New York by Treasury Secretary Robert Anderson who appeared on the program of the American Publishers Association. The philosophy expre.ssed in that speech w.% BO comforting thst this editor forgot for the moment that he paid $14 for the ticket to the luncheon where the secretary spoke. In this day we hear so much economic tripe it is a privilege to hear expressed the ideas and ideals which, as this editorialist views them, are essential to the attainment of maturity in our country.

We ask our readers to dwell carefully upon each of the following paragraphs which expretts the substance of the Treasury Secretarys discussion of fiscal America. He said:

That long-term economic growth can be achieved not with cut without Inflation.

That we must atrlve for in achieveable rate of relative constant growthnot a succession of sharp ups and downs.

That we must not seek to force the economy into a quick which could later Injure our long-run capacity to produce.

That we miuit maintain the priceless Incentive of confidence In the value of money.

That we must achieve a budget that is in balance or belter during periods of high level economic activity.

That we must be willing to seek out the Impedimenta to growth in our economy whether these impedimenta are found in traditional bustneas practices, in or

ganized labor. In government subsidy programs or in any other area of our economy.

That we must encourage the Inventiveness and research necessary for new products, new Jobs, and Improved living standards.

That we must accept the Imposition of discipline and prudent responsibility.

That weall of us. businessmen, workers, investors and government officialsmust make our day-by-day decisions with the welfare of the whole in mind, and not merely a narrow segment of our economy.

That we must have confidence that the American people are wise enough and perceptive enough to leave for our children an America not ravaged by economic turmoil but full of enough to leave for our children an America not ravaged by economic tumnoll but full of strength, growth and hope.

This country can have a bright future, without Inflation, said the Secretary. But with equal vigor he added: "This country cannot have an enduring bright economic future with Inflation." A .speech with this philosophy Is timely. As the two major parties enter the months preceding their national conventions, little is said about the national debt, the threat of inflation, the evils of too much government and the removing of restraints of competition.

Instead we hear the customary crescendo of public works, more spending, new government ventures with vigorous emphasis given to political motive. Today our people, the American people, must face the fiscal facta of life, for it is the people who are influencing our fiscal policies.

By ROGER BABSON BABSON PARK, Mass. Almost everybody know* the story about the man who long ago told his people that years of drought would sooner or later result in a deluge, and that they should prepare for such a catastrophe. His name was Noah. Few listened to him and even fewer took the trouble to arrange their affairs with the future In mind. Noah Insisted life could be met head on by those who prepared for it. You know the rest of the Story-

All of us will be confronted, sooner or later, with the need to save for that Inevitable "rainy day." It may result from an earthquake, a flood, a world war, or something else. Whether we shall ride out the si^rm or sink in a leaky boat depends upon how well we plan for tomorrow. Just now this "something else" which confronts all of us is the problem of inflation. I will not describe it to tell you how to avoid It. Advice on this you are continually being given. I dread it and understand its sad possibilities. Yet. every young parent should realise that 10 years from now his savings for educational purposes may buy only half the education he expected to purchase for his children; and 25 years from now he may find that his retirement Income or life insurance provides only one-third the standard of living he had anticipated. The way old Noah would prepare now for such a possibility would be by increasing his life and fire insurance.

LOOK AT THE RECORD Do you realize that since 1947-49 the cost of living has risen 24 per cent? This is about AVt per year, In this same period total personal Income for all groups of workers has risen about 23 per cent. But some groups namely unionized manufacturing workers are now getting .58 per cent moi^e pay than they did ten years ago. Surely they are preparing for inflation with a vengeance. However, large number* of other workers have failed even to keep pace with the 24 per cent increase in tha cost of living have not tven maintained their 1947-49 standard of living. Are you one of these? If so, read on! Creeping inflation will continue, followed possibly, sooner or later, by another big spurt of Inflation, probably caused by another world war. In order to offet both creeping and ultimate spiraling inflation, you should act now! Have in your home this motto: "Remember NoahPrepare Now for Inflation." Too badbut it is sure to come.

WHAT TO BUY NOW

Most common stocks will not help you combat inflation. Please do b careful. On the basis of every possible yardstMk of value, good productive land now appears more valuable than anything else. Hence, if you want common stocks, buy common stocks based upon metals, oils, and other assets which should Increase your buying power during creeping lnflati(xi. At the the United States at the rate of- same time keep a good bank

account which wUl enable you to buy more stocks when the crash comes. Investment advisors will help you with this problem.

Put some of your earnings into a home furnished with real antiques, and Into acraage in areas that ara bound to appreciate in value particularly area* of great population growth. It may be wise to buy some good tax-free bonds. These should be Ideal for educational funds. Ordinarily bonds are not recommended to combat inflation. But at current low prices and relatively high yields, some of such tax-free bonds should, in the present situation, he good inflation hedges.

Some economists believe that the population Increase will make antiques more valuable as time goes on. There are, of course, many other ways to combat inflation. I have purchased young timber lands, orchards, or hillsides, farms, lakes, or rivers. Certainly these things will increase in value through growth as well as inflation. Even these have real risks, such as drought, fire, hurricanes, and diseases. Therefore, you could get seriously hurt if all your fuuds wens in such Investments. Hedging against Inflation requires diversification. Be sure, therefore. Continued On Page i

loss of one third of your blood, unless replaced, will cause death.

The odds against lighting striking your television antenna during a thunderstorm range from 10 million to 1 to 220 million to 1, depending.^ how many sets there are In your community. So quit worrying!

Remember the famous poem about the purple cow? It ended, "Id rather see than be one." Actually, the only animal purple in color is the blesbok, a small South African antelope.

A good wile and a happy home life are a mans best forms of mental health insurance. Nearly 90 per cent of the men admitted to mental hospitals ara unmarried.

Our quotable notables: "The womans work thats never done," says Dorothy Shay, "Is most likely the work she asked her husband to do."

Americas sweet tooth seems to be getting sweeter. More than 2.000 types of candy are turned out yearly in this country. Its a billion dollar business. Candy made of honey, spices, and chopped nuts and fruits was sold in Egypt as early as 1500 B.C.

Women now outnumber men in

100 to 98.4. But they can atUl outtalk them two to one!

Can you name the largest organ of the human body. Its tha skin. And except for the brain, it is perhaps the most complicated.

Consoling fact; despite high prices, the average American can buy nearly three times as much food for an hours pay as his grandfather could back In 1916.

Infant mortality is still a big problem down on the farm. Twenty-three per cent of all pigs die before they are weaned.

Martal bargain: The owner of the famed Meramtc Caverns at Stanton, Mo., is offering free underground weddings during June. But what couple wants to start with a marriage on the rocks?

No matter how bad the weather is where you live, the man in the moon has it worse. Lunar temperatures vary from 215 degree* above zero in the sunlight down to 240vdegrees below zero in the dark-

It was Robert Louis Stevenson who observed; "So long as we love we serve; so long as we are loved by others, I would almost say that we are Indispensable; and no man is useless while he has a friend."

Watching Insurance Experiment

Strength For Today

By EARL L. IMU GLA.SS GOD.S .SIFTING

"Simon. Biimtn," *id Jesus on Otis occasion to HLx chief apiwtlc, "Satan asked lo have you. that he might sift you s.x wheat: but I made supplication for thee, that thy faith faU not" (Luke 22 31)

The idea of the separation ol good and had, the wheat from the chaff, runs through all Ihe Bible God make. very plain to u. that lilf' involves many cross roads experliMU'es, We come to a ciu liiln iilace and know not which way i(i turn. Different roads .stretch out jicfoie ua and each appears to offer some advantage.

Life Ls a grim experience which dnnnnds Uie frequent tnaklng ol deciMons iniportant decisions up- supplication for on which sometimes Uie salvauon faith fail not."

of our souls depend.

Sifting! sifung sifting! Whether it be by this figure or the figure of crossroads, or the figure of obeylni or disobeying a military command- in the end it Lt all the same. God hi.x con-.structed hie along very serious lines We ctnitot compromUe. We cannot dsUy We cannot have our cakt and eat it.

Satan would sHt ua. Christ would save us The choice is that .atark. that blunt, that simple that serious If we think we can avoid such predetermined cholee., we are muHtakeu The sifting proces.x g^M^R on endles.-ly in our Uvc..

Like SUnon. our lives are being styled, but Christ .says to us as He said to him, "1 made thee, that thy

By EL.MER ROESBNER State officials and insurance executives in your part of the country are closely watching a new automobile insurance experiment in California.

Starting this month. Californians ate buying insurance on a ".safe driver" plan. Autolsts who have not had other than a minor mishap in three yeara get a 20 per cent reduc^on on Insurance rate.. The rate rise* with accidents, anybody with five or more accidents pay* double.

The plan was fought bitterly, largely on the ground that Innocent victims would be penallred. At the last minute the rules were changed to apply demeriu only to guilty drivers.

Several other states have experimented with demerit s.vs-tema, Out none has as ixxmdly as CaUfonUa. If the plan works there, it will probably be adopted In other states.

PRU ES AND PRICES Here are other husmeas lookaheads. based og analysis and

extra Information on developing trends

Costlier conditloaers. After many years of overproduction, the air conditioner Industry appears to have cut production back close to demand. Consequently, there will be less disireas-pnced mer-ehandise this summer, snd some brands msy be difflcult to get when you want them.

Higher nibber. The settlement of the strike In the rubber Industry merely set the seal on the fact that tires and other rubber goods wTll cost more during this year. The pnce of ii* ported rubber has been strengthening; the materials in ayntheUc rubber are rising in price, snd other components have sdvtnced.

Plastic price beosts. Several plastics have recently increased in price, notably polyethylene and cellophane, and ri.es in oilier pla.4tics are likely. Both componen t.s mi la^>r cost more, and demand Is still strong.

HIGHER. HITHER TO VOl

I pped toll fees. It will cost

you more to get from here to there this summer. Mott toll roads have not been doing too well, and the current trend is to cut toll* on freighi dreadnsught*. with *ome compensating ri* in passenger rates.

Cheaper ceffee. Despite recent tobogganing of coffee priceji. they may slide even further. Inventories are heavy and more of the bean* appear to be flowing over barriers Latln-American gov'ernments have tried to erect. The result looks like even cheap-r coffee. (But dont expect the nickel cup to coma back.)

Elevater-priced eheee. Youll pay more for footwear thi* fall Leather and other component* have been costing mor. Leather has almost doubled this year. Higher hide costs must come out of somebody's hide; yours.

Biggest ad spiarge. Working behind scenes', advertising men have revved up one of the biggest promotions yet. It involve* a 2-page aluminum-foil covered spread in you know-what pic

ture magazine. Eleven companiea are promoting a cook-out contest for men only, with prize* in scale. Biggest beneficiary, the beef industry, Isnt putting up a cent,

MORAL: DO ANYTHING AS LONG AS YOU PAY TAXES ON IT

"Did you see that two-part television story about A1 Capone on television?" the Old Promoter asked on his weekly visit. We had missed it

Fit will be hack as a repeat," he predicted. "Watch It It has a ieason ffw every tmsineas man. It shows you can rough up women, kl your competitor*, bump off Informers, and break every law in the code except oner Yon goiU pay your Income taxes! The how is a wonderful criterion of American mores."

We said we would

"Funny thing," he went on. "I always thought De.sUu was supporting the Revenue S<rvlce. But that show made it look as if th# tax people ought to be subsidia-ing DesUu."