PAGE FOUR

THE DAICY REFLECTOR, GREENVILLE, N. C.

Mi

Thursday, December 29, 1960

Thursday, December 29, 1960

1 Awready Pashed 6S

No Easy Term For Terry Sanford

Next week the new administration of Terry Sanford will take over the executive branch of government in North Carolina. Before Sanford and his administrative staff are four years in which North Carolina will face one of the most challenging periods in its history.

As Sanford takes over the mantle of Chief Executive from Gov. Luther H. Hodges, he will be following in that role a man who has proved to be one of the most progressive governors North Carolina has had. He will also be following a man who has served Jn the governor's office longer than any governor in modem times, and therefore has been able to amass a greater record of progress.

!n[igh Rating For

N. C Policies

\

By LYNN NISBET

DEVELOPMENT Each one ef the 50 American States, as well ae the territorial possessions of Guam, Puerto Rico and the Virgin Islands, has one or more official * government agencies charged with responsibility for stimulating economic develop* ment.

There is wide diversity in methods used, types of organiza* tions. and amounts of money spent; but there is manliest singleness purpose in the main objective the raising of per capita income and standard ef Uving.

That is the conclusion reached by the School of Business Administration of the University at Chapel Hill based on a survey made at request of the North Carolina Ckunmission on Reor-ganhiation of State Government The report, released last week. Is wholly statistical and Includes no recommendations or suggestions. as do most of the reor* ganisation commission reports.

Nnrest approach to recommendation came in the factual findings that advancement of a high standard of living in a state depends upon strengthening of the economy at community level; and that the quality of industry attracted by tax concessions and other special privileges has not . been of high grade. Business men of long range vision know that If temporary advantages are given for new plants, that be* lort long those plants will be socced with higher tax rates while new competitors enjoy the apecial privileges. The compara-.tlve tables give North Carolina high rating on the basic soundness of iu>proach to development. In community planning and with respect to equitably distributed tax burdens.

COMBINED N(Hth Carolina is one of 22 states which has all State supported efforts for eeon(nic development. Including Irfamdng and travel, consolidated In one agency - the Department of Conservation and De-vekH>ment. Eleven states have some ^T>e of separate economic (Industrial) development agen* ey; IS have independent planning activities and 16 have special tourist development agencies.

The study disclosed wide diversity of activities and budget allocations within the total framework of development*'. That makes exact comparison difficult For example, some states have separate allocations for advertising and promotion," both for industrial plants and tourism. Some have specific allocations for research, while others (including North Carolina) bury these expenditures in various educational and promotional allocations.

SIXTH PLACE It 1s interesting to note that North Carolina is in sixth place In the list

of budgeted tax funds for both economic develoiancnt and travel promotion. Kentucky tops the list for economic or industrial development with $%5,000. Florida comes second with 1^,000; New York reports ^65,500; Louisiana $500,000; Arkansas $476,-000, and Nortii Carolina $442,000.

For tourist advertising and promotion, Hawaii heads the list with $1,600,000, followed closely by Florida with $1,507,800. Next in order come New York with $553.600; Michigan with $422.200; Washington with $412..500, and North Carolina with $362,400.

These comparisons are not entirely accurate, because of the discrepancies in items included. Even more confusing is the table on summary of Total Funds Budgeted by State Ecor omic Development. Tourist Development and Planning Agencies. Fiscal 1960-61. Nevada is way ahead in that table, because it includes $10 million for capital improvements.

IMPOSSIBLE An ancient axiom has It that comparisons are odious. Review of this survey of State planning and development programs, as well as numerous other attempts at comparing North Carolina budgeting for public services, indicates they also are utterly impossible.

In North Carolina, for example, the $841,700 directly charged to economic, tourist and planning activities, does not include the other thousands (aggregating more than the direct appropriations) spent by the Departments of Agriculture, Water Resources, Education and Health; the Wildlife Resources Commission, the Highway Commission, other divisions in the C&D set up besides advertising and com* merce-industryand dozens of other agenciesdevoted to the purpose of developing the state by raising the standard of living of its citizens.

TOTAL PROMOTION Another factor that cannot be overlooked is that State budgeted tax money represents a very small part of the total spending for promoting industrial and tourist business. In nearly every instance private funds, provided by chambers of commerce and trade associations, exceed public funds for promotion. The combined budgets of all local chambers of commerce and trade groups in North Carolina is several times the total of State spending and this facet of the overall program in North Carolina is pathetic when com-imred with California, Florida, Nevada, and even our neighboring Virginia.

Inescapable conclusion from the survey report is that North Carolinians must spend more money to attract new business, and the most attractive and least expensive avenue for development is in promotion of the travel business.

The Dafly Reflector

INCORPORATED

Publisheti Every Afternoon Except Sunciaj Estaiblislied 1882 DAVID JULIAN WHICHARD, Publishtf filtered at Post Office, Oreenyfile, N as second class matter.

#

SUBSCRIPTION RATES By Carrier (In Towns) Week 30c

By,Carrier (Motor Routes) Week 35c

BY MAIL, Payable In Advance

Oreenvflle Post Office. Pitt County, Roberaonvine, Vanofboro, Washington and Chocowlnlty

Three Months ........................... $ 8.7B

Blx Months ..............................

One Year i.......................... 1* 00

North Carolina (other than listed above)

Three Months ........................... I 4.00

Six Months .............................. 7 80

One Tear ................................ 14.00

AD Other Outside North Carolina

Three Months............................ $ 4.

Six Months .............................. 8.00

One Year ................................ li OO

MEMBER ASSOCIATED PRE88 Ihe Associated Press is exclmlvely entitled to use for publlcatSoD all news dlsatches credited to It or not otherwise credited to this peper and also the local news published herein. All rights of publlcaUon of special dispatches here are also reserved.

NATIONAL advertising REPRESENTATIVB8 Thomat F. Clark Co Inc New York, Chicago. Atlanta Member Audit Bureau of Circulation

All edyerUstng dopy must be received at least one day befte pubUcatioQ date.

While Sanford has set this as one of the goals of his administration, chances are he will not be able to devote as much time and attention to this particular facet of state-wide development as did Gov. Hodges.

In the field of economic development, Gov. Hodges has given North Carolina a boost unequaled during the administration of any other governor. As Sanford moves into the office, he will be faced with the problem of keeping the economic progress of the state moving at the pace set by Hodges. The outgoing governor has expressed confidence that North Carolinas economic growth will accelerate in the future.

. Sanford, on the other liand, has chosen public education as the field in which he feels greatest progress must be made during the four years he holds office. There can be no escaping the fact, however, that progress in this field will to some extent be governed by the continued economic progress of the state. Thus Sanford has little choice but to continue emphasis on both industrial and agricultural progress if he hopes to build an economy that can and will support the kind of educational program he envisions.

More than any recent governor also. Gov. Hodges brought about a thorough face-lifting of the administrative branch of the states government. He streamlined many^ departmental functions, set the states business operations on a more business-like basis and instituted changes that were not altogether popular among many groups of the state. It will fall Sanfords lot to revise some of the states methods of operations. At the same time he will of necessity have to see that efficiency is not sacrificed in administering state affairs.

During the Hodges administration the line has been fairly well held against tax increases in North Carolina, and here again Sanfords job might be made more difficult than otherwise would be the case. The program outlined by the incoming governor calls for expanding public services, and this will necessitate greater revenues. Unless the economic growth can keep pace with increased government expenditures, Sanford either will have to sacrifice part of the program, or spearhead the move for increasing existing tax levies or seeking new revenue sources.

Most of the act of the new governor during the next four years will be compared with those of his immediate predecessor. In the case of Gov. Hodges, Terry Sanford must follow a governor who has achieved a remarkable record of progress for the state, and at the same time has given the administration a conservative appearance in many ways.

The next four years hold for North Carolina many serious challenges which must be faced forthrightly both by Terry Sanford and by the people of the state. It is not likely to be an easy time for either.

By ALTON BLAKESLEE

Rsychology Helps Diets

Rersonal Stake

i-or lexas team

By EDMOND LEBRETON

WASHINGTON (AP) John F. Kennedys Texas team should have an early chance to show whether it can line up Southern lawmakers for the presidentelects program as effectively as it kept Southern political leaders behind his candidacy.

sure, might stiU be nursing private wounds.

Instead, he has given Johnson, and, through Johnson, Rayburn, a substantial personal stake In the new administrations success or failure in Congress.

When Kennedy talked about his legislative* program, with the vice president-elect, Sen. Lyndon Johnson (D-Tex.) and House Speaker Sam Rayburn (D-Tex.) at his side, he mentioned first a Social Security-based health care program for the aged.

This is the legislation killed this year in the House Ways and Means Committee headed by Rep. Wbur D. Mills, (D-Ark.) and the Senate Finance Committee headed by Sen. Harry F. Byrd, (D-Va.) Southern votes figured heavily in the committee decisions.

The struggle will open soon, presumably in the Ways and Means committee, which this year met for months behind closed doors before irrevocably turning down the Social Security approach to health care for the aged. No variation of the Social Security plan ever mustered more than 9 votes in the 25-man committee. The 10 Republicans voted solidly against it. Chairman Mills authored the quite different and sharply restricted grant-in-aid plan for needy aged which finally emerged.

NEW YORK (AP) Psychology can be a helpful buddy in dieting to lose weight, researchers said today.

The psychological aids could be such steps as:

Preparing the next meal right after youre eatenthen ^ou wont nibble.

Eating specific foods in specific places of the house. Or going to the trouble of putting on some certain type of clothing before eatmg.

Lifting a forkful of food only when your mouth is empty.

Holding forkfuls of food for a while between plate and eager teethor chewing food longer.

Psychologically, the^ said, eating involves a whole chain of events or stimuli, usdally performed in a pretty fixed routine.

While the chain of events varies with individuals, a typical chain Is going to the store, selecting and paying for food, carting It home, preparing it, setting the table, sitting down to the table, and so forth.

The idea Is to lengthen the chain of events.

The longer the chain is, the weaker are its effects, said

Charles B. Ferster, PhD., John I. Nurnberger, MD., and Eugene E. Levitt of the psychiatry department, Indiana University School of Medicine.

Eating too much is largely a habit, tiey told the American Association for the Advancement of Science.

Psycholi^cal principles can help develop self-control, which is different from will power, they said.

They took a dim view of hopes that simply telling people about bad consequences of over-eating can be effective.

You cant leam to shoot golf in the )s just by reading about golf, they pointed out.

For all dieters, they suggested:

Avoid crash diets.

Eat a balanced diet. Too much of one food probably will increase the inclination to eat other foods.

Opinions !h Brief

"A progressive small town is one in which the school is almost as elegant as the bowling establishment.Raleigh Times.

Establish a ritual of three meals a day, with perhaps a light snack such as milk and crackers at bedtime.

Control the time of meals rigidly.

When the urge to eat wells up.^do something in which eating Lsnt feasible^take a walk, go to a movie, ride a bus, or lay a cement sidewalk.

Keep food In relatively inaccessible places.

"Between 5 and 10 million American citizens were forced to stand on the sidelines while their fellow citizens went to the polls. These 5-to-lo million disenfranchised citizens were deprived of the right to vote for president because they had moved recently and could not meet the residency requirements in the state to which they had moved. We have become a mobile nation, not only for pleasure but of necessity.Industrial News Review.

Backers of the kind of bill Kennedy favors contended and many sideliners agreed with them that if such legislation had ever reached the floor of the House and Senate with committee approval both chambers would have passed it.

To redeem its campaign pledges. the incoming administration must lead another try. The coming struggle affords a second text of Kennedys major strategic decision to offer the vice presidential nomination to Johnson, his great convention rival for the presidency, and not to write the South out of his calculations.

So Rayburns work, if he intends to back Kennedy all the way on this issue, is cut out for him. It begins when the House Democrats caucus Monday, since there are two Democratic vacancies to fill on Ways and Means. The two who left the committee are the author of the Social Security health plan. Rep. Aime J. Forand of Rhode Island. and one of Its strongest supporters, Rep. Lee Metcalf of Montana. Forand did not seek re-election. Metcalf was elected to the Senate.

Other Editors Saying .,,

Fighting Censorship

In terms of the election, the decision has been proven inspired. Johnson, and Johnsons redoubtable manager. Speaker Rayburn, certainly helped keep Texas and the majority of the South in the regular Democratic fold. The vote turned out so close, even electorally, that if Kennedy had lost just two states rated in advance as most doubtful, Texas and North Carolina, he would have lacked an electoral majority.

There ts a Republican vacancy on the committee, too, but it is hardly likely the opposition party will name to this blue ribbon tax-writing committee anyone who might waver in opposition to the Democratic program.

Backers of the Kennedy plan, however, think that if they can get their measure to the floor they will have support from some GOP colleagues, since there wUl no longer be in the White House a Republican president publicly and strongly opposing any link of Social Security to old age health care.

But the chances are that Kennedy, a long-range planner, was looking beyond the election when he made his dramatic bid to the Senate majority leader.

Suppose he had offered Johnson no balm after beating him for the fn'esidential nomination, but had been elected anyhow. He would then have had to deal with a Congress whose two top Democrats, loyal party men to be

Quote...

Out of the hard times of the South have come wisdom about life and a toughness of mind that can save the nation in an age of communist aggression. The South must preserve Its identity and at the same time help save the Republic."Charleston (S.C.) News and Courier.

(Rocky Mount Telegram)

One year ago, the free world was given depressing proof of the extent of Censorship prevalent among nations by the watered down version of a Convention on Freedom of Information which finally was enacted by the United Nations General Assembly.

Article I of the Convention was originally intended to be a strong international declaration of the fundamental human right to know what ones political leaders are doing. Then it was changed to guarantee journalists the freedom to gather, receive and impart public news without governmental regulation from the original wording of seek, receive and impart.

This change of one word reduced the pledge from a guarantee of public disclosure to an ineffective right to accept in-formaoa handouts from government agencies. But even this weak guarantee apparently bothered UN members unaccustomed to Western freedoms. After one year of deliberation on the first Article, the General Assembly produced Article II a few weeks ago.

This gem of enlightened freedom contains nothing more than a list of exceptions to Article I. In short, had these exceptions remained unchallenged the guaranteed freedom to reveal what

government officials offer for public consumption would have been further restricted to only certain revelations. It would also probably have resulted in collapse of the Convention, because there would then have been no meaningful purpose.

Eight Latin American governments, spearheaded by Argentina. salvaged at least some purpose by successfully pressing an amendment which specified limitations of freedom shall not be deemed to justify the imposition by any state (nation) or prior censorship on news, comments and political opinions and may not be used as grounds for restricting the right to criticize the government.

This amendment was passed over the opposition of the Soviet bloc, Saudi Arabia and many of the newer African states. But it is now apparent that the Convention on Freedom of Information will not Uve up to its name.

At least there seems Uttle likelihood any damage to existing freedoms will be perpetrated by the Convention. It jias taken two years to produce the second of a projected 17 Articles. By the time the organizations charter Is completed, it wl be aged sufficiently to open the discussion to amendments. Perhaps the second time around more sensible minds wUl prevaU.

We shall best promote the prosperity of the new states and Territories by furnishing them with a hardy and Independent race of honest and Industrious citizens. James Buchanan, 1857-61.

"There are two kinds of votersthose who support your candidate and a lot of ignorant, prejudiced fools. Washington (La.) Journal.

Its getting so the big reason for having more technical experts Is to read the reports written by other technical experts. Cincinnati Inquirer.

Ultimately it is the people of the Congo who will have to produce their own leadership whether It Is good or bad. Leadership cannot be imposed. Any attempt to do so will lead to confUct. Jawaharlal Nehru.

BLOODMOBILE

GIVE BI.OOD

BLOOeOBILE

BE A DONOR

BLOODMOBILE

Foreign

Stee.

Outlays

Fifteen years ago most people thought that television was Impossible, and lots of people still do.P^rm Journal.

By GEORGE E. SOKOLSKY Copyright, 1960, King Features Syndicate, Inc.

To fill out my knowledge on steel, the question I asked is: What is the amount of money the . S. has spent on the building up of steel plants in other countries since 1939?^

The researcher put on tbe Job reports:

The question is much more complex than I realized because no such study has been undertaken by tbe Department of Commerce, the Department of State, or to their knowledge, any other organization. Some years ago, the Business and Defense Services Administration of the Department of Commerce undertook an extensive four-month sur-, vey of direct financial assistance to foreign iron and steel industries by the U. S. Government and the International Bank for Reconstruction and Development (World Bank) for the years 1940-1956. This figure, which is Included in my final tabulation, is the only ccmcrete figure available. The other numbers listed below are often little more than educated guesses, as I win explain.

PresenUy those firms which invest American moneys abroad in the general category of steel are the World Bank, Export-Import Bank. Development Loan Fund, Intcmatimial Finance Corporation, and International Cooperation Administration. To date the Development Loan Fund has not spent moneys for building or expanding steel plants; however, they expect to complete negotiations for a $250,000,000 Turkish steel plant before the end of the year.

The following is a breakdown of these agencies and the amounts of money each has spent for building up of steel plants since 1939:

Department of Commerce Sm> ey $796,588,000 Includes all U. S. moneys for the years 1940-56 Wm-ld Bank $92,688,000 This is not an exact figure la that World Bank funds contain other than American dollars. It Is only estimated that 48 per cent of their moneys are dollars. Since 1956. tbe bank has loaned $193.1 million for f(Heign steel Improvements; 48 per cent of this would be the American portion.

International Finance Corporation $2,698,000 This organizati(Hi has loaned $7,293,000 for foreign steel buildup. Approximately 37 per cent of their funds Is American dollars. Export-Import Bank $189,100,-000

This figure docs not include 1939. Their statistics department advised that the '39 tabulation is not available and cotdd be calculated only after 12 hours of research.

International Cooperation Administration $7,049,120 This is also little more than a derived figure because ICA does not break down loans according to specific purpose. To determine exactly what portion of their funds were used to promote steel plants, one would have to examine their 1200 projects undertaken between 56 and 59. ICA funds definitely used for steel plant build-up are reflected in the total flimre. Other of their loans which may or may not have a bearing on the steel industry are listed under such general categories as: (not Included in my total (

General Industry improvements (of all industries) $120,000;

General industry development, 11,789,000;

Small and medium Industry development (of all industries) $8,750,000;

General industry expansion, $4,624,000;

Industries general long-terni loans, $3,611,000;

Development of selected industries, $399,000; and so on for 30 pages.

Unless one examines the individual loans, you cannot determine what portion went to the steel industry. These figures do not include 1960; they are not available at present.

The total is $2,088.123,120. Unfortunately, (as I.said) this is not an accurate figure nor could an accurate tabulation be made without a great deal of research. Also, it does not reflect other factors such as Investment by private banks. Investment by American corporations, or American Industry.

From this report by a competent research man, I take it that nobody knows precisely how much we gave away with regard to steel and what effect our efforts in this direction to (Continued on page 5)

Strength For Today

Elxport Gold, Know-How. Jobs

By EARL L. DOUGLASS LEST WE BE MISLED Beware of the glib person. That chap wiUi a well balanced tongue which wags at both ends is very likely to overimpress hia generation. He 84>pears to know aU the answers. By his analysis he makes all problems appear simple. With his confidence he fills us with the assurance that he could do plenty to bring the world to a solution of its prol> lems if we only gave him a chance.

But think back over your experience. Have the glib persons proved wise or otherwise? Has not wisdom more ofttn been the portion of some person who pondered much and talked little? Sometimes we meet a person who seems to find it almost Impossible to ex

press what he deeply feels, yet in a few halting w(Mxis he gets across to us wisdom and insight whlch may astonish us undeed.

The world's greatest utterances have been brief utterances. The Sermon on the Mount is not a long document. The thirteenth chapter of I Corinthians contains only a few hundred words. The Immortal Gettysburg speech was so brief that mast of the newspapers of that day dismissed it as inconsequential. The glib fellow impresses us. The slow speaking. wise man may appear to us to b; a bit on the dull side.

Information and wisdom are not the same thing. Facility of speech and soundless of Judgement do not always belong together in fact seldom so.

Beware of glibness in yourself and in others.

By ELMER ROESSNER Industries have been exporting jobs and exporting gold. Now the steel Industry is considering projects that involve exports of Jobs, gold and American knowhow as well.

When an American company sets up a manufacturing unit abroad, or when it buys foreign-made components that could be made in the United States, it is

said to be ^porting jobs. It re-, s.sible

duces pos.sible employment in the U. S, and increases it abroad.

When an American company invests in a plant abroad, it exports gold. In effect. The American money paid for land, materials, etc., can be converted into foreign claims for gold.

And when an American company plans to Incorporate American techniqi(cs into foreign production, It may be said to be exporting American know-how. THE STEEL HIGERA

Now the steel industry is studying possibilities of exporting jobs, gold and know-how all at once. By moving part of the American steel industry to foreign countries, it may be able to gain more profits.

The foreign market for American steel Is shrinking. Efforts have been made to reverse the trend, but they have run up against the fact that foreign producers, without Americas vaunted automation, can still produce steel cheaper.

Now the IndtLstry, thwarted in sending steel products abroad, is considering sending production abroad.

By establishing plants abroad where cheaper foreign labor is available, and by applying American technology, steel companies can produce steel at costs low enough to compete with foreign mills.

DRIFT ALREADY UNDER WAY

Some steel companies have already taken first steps. Crucible Steel Co. of America spent $2.-400,000 in American money for a 75 per cent interest in a small steel mill in Man, .Italy. It is reported to be planning a new establishment in Australia.

Youngstown Sheet & Tube is considering several similar arrangements abroad, with bids from French and Belgian companies to participate in a new integrated. mill on the Ghent Canal in Belgium.

Allegheny Ludlum Steel is preparing to participate in the building of a new mill in that country. Jones & Laughlin ,1s studying a possible overseas venture. And soon tbe larger giants in the industry may be participating in projects to establish mills abroad to operate under advanced American technology.

There are no sharply defined vUlalns in this situation. If the

steel Industry exports dollar, jobs and technology, it is acting within its rights and is violating no laws. It may have to take these steps to preserve its Income or to avert the loss of markets abroad. Nor are the unions the villains. They have ie* gal rights to, demand higher wages, and If higher wages result in the employment of fewer Michiganders and more Belgians, thats a risk they have to take But some place along the Une the interests of the consumer and the taxpayer have been run over.

GOVERNMENT CHALLENGES ONLY FEW MERGERS Urged to merge? You're probably safe. As of March, 1960, only 2 per cent of the mergers involving the nations 300 largest manufacturers had been challenged by the governments, according to the National Industrial Conference Board. ^

.____________