Monday, April 4, 1960

Monday, April 4, 1960

One Thing I Foiind Out-

Issue Of Chemical Sucker Control

Tobacco farmers of the broad tobacco producing region of Eastern North Carolina should consider carefully the long-term as well as the short-term economic effects of the use of chemical sucker control on their # 1960 crop.

There apparently is general agreement among officials that the use of the disputed chemical on tobaccp increase^ production and enables the.farmer to make larger yields per acre. It also follows that the larger yields per acre would tend to increase the jncome of the farmer when he sells his tobacco crop next fall unless there is some change in the price support structure that w^ould penalize tobacco on which the chemical has been used.

What seems to concern a good many people in the tobacco industry, however, is the long-range economic effect widespread use of the chemical could have on the tobacco producing areas and the U. S. tobacco industry.

Traditionally the tobacco fanners of Eastern North Carolina have depended to an appreciable extent upon foreign purchases of their leaf to keep up the demand and price on tobacco. Approximately one-third of the flue-cured tobacco produced in the United States finds its way into export trade and overseas sales. In recent years American producers have faced increased competition from other foreign producers * have cut into.U. S. tobacco sales abroad.

A few years ago American tobacco producers found themselves in dire circumstances because of the amount of undersireable tobacco on hand which could not be moved ihto the export market. Huge stocks of this tobacco on hand tended to depress the demand

McConnell Anc, "ndustrial Drive

(During absence of Lynn Nis-bet. each candidate for Governor, Lieutenant Governor, and United States Senator has been invited to write a guest column, sUling his views.)

By DAVID McCONNELL Democratic candidate for Lieateaant Governor CHARLOTTEDuring the pa.st few weeks I have walked more, talked more and seen more than a youngster at his first (K)unty fair. And during these weeks of travel about North Carolina, I have been confronted with one question more than any other: What about industrial development? *

I hasten to explain the term industrial development, lest I eonvey the impression it applies ^nly to teeming, sprawling mills it must include any plant, however small, which may be used in processing our raw products ^ and our farm produce, to the endthat our native-grown products are processed for market as near as possible to the source pi supply.

Certainly people are interested in welfare, schools, roads, men-* tal institutions, penal institutions. taxes and other matters but industry seems to be the key. at this time, to the future. A richer state can help provide Improvements and/secure the needs we have in these other fields of needed progress and fairly quickly.

Dave*, a map in a far western county said'the other day, *you Just like every other candidate who has come around here lookin for votes. Youre spoutin off about the need for industry and what industrial development can do, but no one has told us what to do. What about that answer?

My frank friend is right. We have been spouting off, all of us. and I for one am looking for votes.

Seriously, the complaint is justified, I do not have the answer, but I have an answerand I think I can offer at least a good workable plan.

First, let me say that I am delighted that both the Umstcad and the Hodges administrations have done such a vigorous Job In seeking Industry for our state. 1 am proud of the small part I have had in it and I encourage the continuation of the program and the continual strengthening of our fine Conservation and Development Board.

Everything cant be done on a statewide level, nor should it be. However, counties and small communities have gone about as far as they can go. Some have

reached a dead end. Therefore,

I have come up with this plan, which Is a variation on several ideas used elsewhere which I have studied in detail for months, and I think it workable,

I propose that counties in this state group themselves in County Development Districts. At least five or six of these districts may be organized un-.der.A^te stature and would embrace most of the non-indus-trialized areas of the state.

The plan is, simply, this:

1. Smaller counties would set up Industrial Development Districts under legislative action a general enabling act.

2. The Industrial Development District the counties participating would levy a tax of up to* three cents ad volorcm per one hundred dollars evaluation, or an amount sufficient to give the development district an income of from $20,000 to $30,000 annually.

3. This money would-be used to hire a professional Industrial development engineer, a man trained in the field and first rate in the Job.

4. The first order of business would be an analysis of the human and natural resources of the region. This informationspelling out what is available and what the district offerswould be used for the Districts own recruitment of industry, and even more important, the development of home grown industries.

With the area team functioning properly, the section has a chance to really compete. The District has a real and personal stake in the negotiations, and will not Just pick up what prospects happen that way, or are channeled from other sources.

There are today about 30.000-plus industrial prospects in this country and about 7,000 municipalities, Chambers of Commerce, State Development Commissions and others seeking those industries. Obviously a small county or non-organized area can hard-compete with areas which have their resources carefully analyzed and presentedand done so by a professional. The odds are too great.

Similar plans have worked for the Tidewater. Va.. Development Council, and nion County has been most successful on its own. Smaller counties could band together, and in thespirit of teamwork could advance with sure and steady stride.

My plan was discussed in the Goldsboro News-Argus and the editor wrote: "We believe that . close study wiU show it is no more pipe dream.

Now to work.

for new production and threatened the entire structure of the tobacco support program.

In the past two years this situation has improved greatly. Stocks on hand have decreased, foreign purchasers have found U. S. flue-cured tobacco production more to their liking, and progress has been made toward regaining some of the lost U. S. sales in the world market.

Now, however, the problem has come to the fore again with the assertion by foreign purchasers that they db not intend to purchase American leaf which has been treated "with the chemical sucker control.

If use of the chemical is widespread this year, and the foreign purchasers <|ecline to purchase American leaf, the amount of tobacco which goes to Stabilization is bound to increase.

If no change is made in the support structure, farmers who realize greater production through use of the chemical may benefit financially for this one year.

But what about I96I and the years to follow?

Will the groundwork be laid that will virtually end the foreign sales of U. S. tobacco? Will foreign purchasers-who have brought about one-third of our annual production look elsewhere for their purchases? If we suffer another serious setback in tobacco exports, will we be able to regain these markets in the future, or will they be lost for good?

In agriculture as in any other business, the success of product sales depends upon the ability of the producer to furnish the purchaser with the kind of product he wants. If the purchaser cannot get what he wants from one producer, he will look to another and ^buy where he can get the quality and kind of product he wants.

American flue-cured tobacco producers can ill afford to risk losing one-third of their sales potential by producing tobacco that will not be purchased by foreign consumers. The problem'faced by every segment of the tobacco industry now over use of chemical sucker control is one which must be evaluated on more than a one-year basis.

irees

Mta laa

:McNht SfDdmtt.

By GEORGE E. SOKOLSKY

Not So Much Gap In So-Called Space I^ace

With an experimental weather satellite orbiting in space some 450 miles from earth, U. S. space scientists have shown again that their efforts and achievements cannot be discounted in the international tug-of-war for space supremacy.

While this latest achievement of American scientists is truly remarkable, there are several factors which point up the preciseness with which the Tiros I was launched and is operating. The satellite, according to scientists, went into orbit within three one-thousandths of a degree of that which was planned for it Designed to circle the earth at 450 miles out, the satellites orbit varied only 20 miles from that prescribed distance. The pictures sent back by the satellite of cloud formations around the earth shov/ remarkable clarity and evidence a new break-through in space achievement.

American successes in space achievements in recent months have shown without question that the gap which exists between U. S. and Soviet space development is not nearly as great as initial successes by the Soviets led some people to believe. The pace at which the American program has moved ahead recently further suggests that the United States in many ways has not relinquished space leadership to the Soviet Union. The Soviets apparently still hold the upper hand in the ability to send up larger satellites, but the American space probes show considerably more advanced information-gathering equipment that is vital to future space successes.

In the new weather satellite the United States has demonstrated again its ability to put into space advanced vehicles superior to those of the Soviets. Less spectacular from a propaganda standpoint, perhaps, than the Soviet shots, the American space probes are now more significant from a scientific standpoint.

Weather Hits 'Business Leve,

A Positive

Side

Of Life

By GEORGE E. SOKOLSKY

And Samuel told all the words of the Lord unto the people that asked of him a king. And he said:

This will be the manner of the king that shall reign* over you: he will take your sons, and appoint them for himself, for his chariots, and to be his horsemen: and some shall run before his chariots. And he will appoint him captains over thousands, and captains over fifties: and will set them to ear his ground, and to reap his har

vest, and to ..make his instruments of war, and instruments of his chariots.

And he will take your daughters to be confectioners, and to be cooks, and to be bakers. And he will take your fields, and your vineyards, and your olive-yards, even the best of them, and give them to his servants-And he \yill Uke the tenth of your seed, and of your vineyards, and give to his officers, and to his servants ...

This is politics. It was actually spoke in the course of a polili*

Other Editors- Saying..: Sees Little Difference

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By RALPH ROBEY

No nation in the world collects as many business statistics as the United Stat^. In terms of volume the most important is our federal government. It collects the figures with great care and then subjects them to the most up to date methodology of processing. In the latter is an allowance for seasonal variation whenever there is a significant pattern of this character.

A seasonal variation usually is determined by calculating the average change on a monthly basis over a period of years. Such a change may be caused by attitudes of the public, by supply, by the weathef. or by any number of other factors. But it is not possible to make a correction for abnormal weather alone. The best that can be done from a statistical viewpoint is to include changes in the weather with everything else that varies from one season to another. Business Feels Winters Blast The reason for going through all of thia is that we have Just had an extraordinarily bad late winter and It has had a direct effect upon many of our business statistics. A few examples will bear out this statement.

Because of the weather retail sals have not come up to forecasts. The proof that weather has been the culprit is shown by a sectlon-by-section study of such sales. In those areas where the snow and cold have been the worst, sales have been lowest. In areas which have had more normal weather conditions, sales have been much better.

Construction also has been delayed. by, the weather. In many area It simply was not possible to start projects. This*has been Uue In road buildmg. In indus

trial construction, and in housing starts. As a result of lower artivity In these fields there has be'en less buying of machinery, of office furniture, of household appliances and home furnishings, and so on.

The bad weather has hurt automobile sales because in much of the country it has been almost impossible to drive over the road.s. This has caused a piling up of inventories in the hands of automobile dealers and a curtailment of automobile production. This has backed up to the steel producers and is one of the reasons we have had an easing in this field.

Production and Employment

Production over-all has been held down and it may well be that the one percent decline in the Federal Reserve Board index of production in February was caused by the bad winter. That employment has been held down goes without saying, and increased absenteeism probably was the cause for the slight decline In the average hours worked per week in manufacturing And profits, of course, have been hurt.

Those are just some of the obvious parts of the business picture which have been adversely i^^uenced by the bad weath^ What the total amounts to is not measurable.

Now, with the coming of spring, the W'eather is certain to get better. It will take time for this jfo be reflected in the bUvSi-ness'statistics published by the government, but before too long we should see appreciably more encouraging figures. With these better reports, business and public confidence will improve, and the uptrend will be lesS subject to quesUoa. *

(WashlngtiHi Daily News)

One political observer in North Carolina secs little difference in the four Democratic candidates for governor. He says all four of them are in favor of helping the farmer; *aU four are in favor of spending more money on education; all four are in favor of doing more to attract industry to North Carolina; all four are anxious to give the taxpayers a better break.

When viewed from the standpoint of what this one observer says, it would seem that the four Democratic candidates all stand for the same things. But in practical application, what men stand for and what they can produce are often far different matters.

When we say that all candidates stand for > the spne things, we are omitting the important factors of leadership, personality, ability, and energy. We do not admit that all four candidates stand for cxactingly the same things. But in general, in the four fields mentioned above there is substantial agreement among them.

When a man is elected governor of North Carolina, he is not in a position t carry out his program in its entirety. He can give impetus and leadership to the causes in which he believes, but if the legislature does not go along with him, in many ways he is helpless. The governor of North Carolina cannot even veto bills passed by the legislature.

Two men could stand for exactly the. same things in politics, and one man can have a fair chance of getting his program passed, while the other, il elected, might not stand any chance at all. Personality and leadership are strong factors.

When we look at the four candidates, we see differences between them. i*rom our judgment. we'd say that Terry Sanford and Malcolm Seawell are more liberal in their overall views than are John Larkins and Beverly Lake. We arc not trying to attach any liberal or conservative tags to any of the candidates, but we arc express-ingt he opinion here that in the matter of personal thinking, there are differences of oplnlcm ing the opinion here that In the servative tags to wiy of Uie candidates, but we are expressing the opinion here that in the matter of personal thinking, there wre differences of opinion in Uiis matter of liberal or conservative approaches to the problems confronting the voters of North Carolina today.

There seems to be differing opinions among the candidates on how to handle the matter of school integration as laid down by the United States Supreme court. And as time goes on, we are satisfied that on many issues before the people, the candidates will use different approaches and offer differing Solutions.

We are among those people who believe that voters today in North Carolina not only look at what a man stands for but they also look at the possibility of the candidate realizing success in his program.

Within the next two months the campaign tempo will pick up considerably. And candidates probably will be offering many differing views on a wide variety of subjects.

Already we see many differences 'in the candidates as in dlviduals if not a great deal of difference at this time in their general views.

cal campaign, for Satd had set out to be a king, and the Prophet was advising the tribes of Israel that it was an unwise political decision to have a king.

Samuel was a Prophet. I thought of this passage In the Bible as 1 continued to read about the quarrel within Protestant churches as to the role of the Ministry. Some contend that it is not the function of a noinister to take a polifical position, to advocate a political cause or to associate himself with a political movement.

In the history of the United States, the clergy have played a consistently Important political role. The CongrcgationallsU of Massachusetts, the Baptists of Rhode Island, the Roman Catholics of Maryland, the Quakers in Pennsylvania arc a few of the numerous religious groui who settled here and whose leaders participated in our earliest political life. Neither the Elder Brewster nor Cotton Mather nor Roger Williams can be disregarded as political figures In thetr day, nor can it be said that Henrv Ward Beecher did not play an enormous role In the pdfitics of his day. Dr. Lyman Beecher (1775-1863), in his great sermon on dueling, said:

When we intrust life, and liberty, and property to the hands of men, we desire some pledge of their fidelity. But what pledge can the duelist give. His religious inlnciple is nothing; his moral principle is nothing. His honor is our only security. But is this sufficient Are the temptations of power so feeble, are the public and private Interest 50 inseparable, are the opportunities for fraud so few, that, amid the iMX)jects of ambition, the cravings of avarice, and the conflicts of party, there is no need of conscience to guarantee the integrity of rulers . Certainly such men as Thomas Hooker, the great Congregational cleric of the 17th century, played an enormous role in the political development of colonial America. Many of Hookers ideas of freedom and tolerance became foundation stones of the eventual American ConsUtuUon.

I could go on and on citing the political acUvities of individual ministers as well as clerical groups in the political lie of Amerca. It ha.s always been held in our history that this Is a moral society, based on the Natural Law, as is stated in the Declaration of Independence. Ministers are personally and pro-fesionally concerned with morals.

The a^umption that a man becomes a secondary citizen be-(Continued on page five)

:or ine future

By ROGER BAbSON BABSON PARK. Mass. Every March, I go to the local nursery and purchase two sug-ar-maple trees about five feet high at a cost of about $12 each. I Uke to get them in March before the new buds come out, and set tiem out on my grounds. I believe they are the beat investment I could ^ make for my grandchildren.

BOOKS VERSUS TREES In my winter home in Fl(n1da,

I have a private Ubrary of 8,000 books. These bocdis were issued by the pubUshem during the past fifty years at about $3.00 a copy.

I doubt if any second-hand book dealer would today pay twenty cents a copy for the lot.

On the other hand, a sugar-maple tree constantly Increaaea the value of your estate. In addition to the shade which they supply in summer and the ground moisture which they hold, children enjoy, tapping the trees in the spring to get a little maple syrup. Hence, while most books are constantly decreasing in value, most trees are constantly increasing la volue.

I do not expect that there wlU be a nuclear war for many years unless It starts by accident. We know that direct bombing could result tti the death of miUions of people. As to the effects of the fallout, the experts arc undecided, FaUout could contaminate all except underground water and the corematter of most trees. And if agricultural products sbmild be contaminated and hence dangerous to eat, people in aome sectl(H>s would be forced to live on water, wood pulp, salt, and certain oils. Thua. theorettcally trees have a possU>le defensive value to keep civilization aUve.

With the large amounta apent on missiles and other forms of armament. I cannot understand why so llUle attention it given to protecting us from the eruption of World War in. I urge each of my readers to write the Governor of his State and ask the name and address of the State Director of Qvil Defense. Then write a letter to thla Director asking him what he personally is doing in his home to protect his faznily in case of a nuclear war.

Probably the largest owners of fcsrcst lands in the United States are the Weyerhaeuser family. The stock of the Wcyer-haeuser (Company sells at a high price and pays a small cash dividend. When, however, your wife buys a package of "r^dy-mix at a supermarket, the pasteboard box was probably made from trees which the Weyerhaeuser family set out forty years ago. Your wifes dress was probably made from rayon manufactured from the timber of Rayonier Incorporated, which has vast holdings in the South- * east where trees grow more rapidly than in the North.

Timber growth is not circumscribed by labor union regulations. Trees do not observe Sunday holidays, vacations, coffee breaks, etc. They are protected against fire, earthquakes, and freezes, but are subject ccMistantly to Increased taxation.

The Kimberly-Clark Omt)., ia a large producer of cellulose and a leading manufacturer of book and piintiDg paper. It is said to control (not necessarily own) over 10,000.000 acres of tlmbcr-land. It stock seDs. however, around 168 a share and yields only about 2% per cent. Another favorite is the St. Regis Paper Co.third largest paper manufacturer in the U-S., holding over 5 million acres. Your telephone book was probably printed on their pap^. The stock sells below ^ a share, but jrields over S per cent, plus stock dividend.

. A third favorite of mine Is Scott Paper, which owns 1,500,-000 acres of timbrland that is being carefully protected and replanted as cut. The stock sells in the seventies and yields around 2 per cent. Readers wUl think these yields are low, but It's the old story: We cant have our cake and eat it too. The assets of these companies are growing every day and night 0 the yearwhich is not true of the assets of such popular stocks as General Electric, American Telephone, Union Carbide. and most of the blue chips.

Look-Aheads In Business World

By ELMER ROESSNER

Here are more look-aheads in business, based on study of developing trends and sparked with bits of advance information:

Retail sales boom: Late Easter is shifting some retail sales from March to April, but other factors may add more to the months volume. Fashions have more sales-llft than usual this spring: employment is high and rising: consumer confidence is sturdy.

More intangibles vending. Intangibles are nongoods, such as Insurance policies, securities, franchises, etc. The success of selling insurance -policies at fancy markups with coin machines at airports is attracting other promoters." Auto in-suiance from vending machines at service stations has been tried and may spread if some legal quirks are Ironed out. Sales of low-price securities and Saving Stamps are pssibllities. as are many other kinds of insurance.

More auto competition. Compact American cars are cutting into sales of smaller foreign Im-. ports; now foreign manufactui-

ers are considering cars to compete with standard-size U.S. gas buggies. Volkswagen is working on one, but it probably wont be ready before 1962.

MUSIC TO DRIVE BY Easier car radio tuning. A fingertip radio control mounted on a steering wheel has been demonstrated. The next move is up to auto manufacturers, some of whom may adopt the gadget for 1961 cars.,

Higher trade barriers. The Administration is deeply concerned about the unfavorable balance of trade and the consequent flow of gold out of the U. S. It is currently encouraging more exports, but is not yet ready to curb imports to obtain a balance. However, the situation will change between now and election day, American manufacturers, often Joined by unions, will make shrill demands for higher tariffs and quotas and vote-minded Congressmen and Administration leaders will barken and grant temporary, at least, relief.

Ilousing upturn, i^ousing starts started slowly this year partly because of unexpected weather

set-backs, partly because of high mortgage rates. But demand shows signs of loosening up. Mortgage rates stopped rising and some bargains can be struck now: Income is increasing and public confidence 1s again strong.

BUT AT HIGHER FRICAIS

Costlier building materials. Despite the threat of a downturn in construction, prices of building materials have not weakened. They are continuing their upward spiral begun in 1948 and the prospects of more homebulldlng (see above) insures a continuation through this year.

More cotton. Planters have accepted lower price supports with fewer restrictions on acreage. That portends a bigger crop perhaps of 15,000.000 bale^ and. perhaps, hopes that the government will ball out the balers and growers again.

More coUi>ons. Grocery manufacturers are testing out a new coupon plan, with more coupons and more restrictions to prevent the cashing in of coupons by people who do not buy the specified items. According to the pres-

ent timetable, distribution of coupons will be stepped up In May.

OLD PROMOTER SLICES FAT IN POLITICS You havent worked for a long time, we reminded the Old Promoter. If we cut off the small touches, how will you survive? ^

Im making Dutch book on the candidates unt election, he said. Its a fat living.

Whats that? we demanded.

A Dutch book Is a posting of odds at which the bookmaker can lose, he said. Sometimes ^ bookies post a Dutch book at country races. If he does, a sharp mathematician can wager certain amounts on every horse so no matter which one wins, he gets back more than he bets.

"Im doing that with the candidates. The enthusiasts for Kennedy, Johnson.. Symington and Humphrey will lay 6 to 5 on their man. By balancing my bets. I can take in $24 in every $5 I will pay out. Of course, I can shave the odds. Even if I lay 3 to 2 on each man, I can take In |8 for every $3 lost.