PAGE FOURTHE DAILY REFLECTOR. GREENVILLE,/N. C

ThursHay. January 1961

Thursday, January 19, 1961 . '

FareweU Address Was A Highlight

^ . Though we have taken issue with President Eisen- ternational problems in the place of long and trying hower and his administration countless^times during methods should also be* remembered in,,iuture years, the past eight years, his farewell address is one that There is always the temptation to quickly resolve^_ should be long remembered by the American people, ^problem althougn the means may be most unpleasant, ^ In many respects it was not unlike that of Wash- rather than plugging away at it bit-by-bit until a better ington in which the first prsident peered into the and more lasting solution is reached. -future, souht out pitfalls aiid-ffied to them out ^ _ Certainly the gigantic.armaments industry it ha-

been necessary forjthe United States to create in the past few decades poses a subtle, but realistic, threat,' should the influence of this segment of industry become a controlling factor in federal decisions. President Eisenhowers warning on this point is one which is now new. And yet the President saw iit to give

, ,, av. X j 1 recognition to the problem from the highest office in

over a particular Problem it k easy for the federal President was a

government to go off the deep end in striving to soh^ military man and stood at the head of the military of it quickly But w ncn this neglected .and the overall natibn,~adds weight-to the warning, pro^am falters.

. . The tPresidents warning against the temptation t The Presidents farewell address was unique in to accede to swift Tnd easy solutions to in- many respects. Obviously .President Eisenhower was

^ ^ less relaxed and less at ease in delivering the message

Taking Some Kick Out Qf It

to his people.

President Eisenhowers' assertion that balance must be maintained between the various facets and responsibilities of the federal government, is on that should not be overlooked in this era in which crash programs ha>e become popular for solving this problem or that. When concern mounts to a sufficient pitch

larms in-N. C. Picture

...le

By LYNN .MSBET PROTECTIVE TARIFP The constitution of the United States, explicitly in a few Instances. impliciyy in several otiiers, prohibits any State from setting up commercial barriers at its borders and collecting tariffs on imports from other States. These provisions have been interpreted by the courts as now prohibiting States from collecting franchise, income, sales and use taxes from persons and firms domiciled in other states on business done in the State levying the tax, provided it is uniform with taxes collected from residents.

Under the constitutional pro-visiona and court interpretations. North Carolina collects privilege and franchise fees from firms doing business in this state, and a use tax in lieu of the sales tax on merchandise bought outside and brought into this state for use.

North Carolina also has long had the policy of protecting home enterprise by permitting some discretionary credit for instate production on materials purchased for State' use. Exercise of this discretion has enabled North Carolina agencies let contracts for construction of buildings and highways to out-of-state firms when the differential in bids is substantial. If the margin is narrow, when ability to perform Is considered, policy has been and is to give the order to a North Carolina firm, w'hether the item is a multi-million dollar contract or the purchase of a few lead pencils.

There are factors other than price and quality. Convenience and service are equally iiq* portant. For example, the State can afford to pay a few dollars more for a typewriter that can be serviced here than for one just as good that would require servicing in New York. Instanced arise when a few dollars more for printing paid to a Raleigh firm la profitable In time saved for proof reading and delivery.

ADVERTISING These ob-ervations are timely In connection with the forthcoming selection of an advertising agency to handle the North Carolina account. When the advertising program was initiated in 1937 there was no agency in North Carolina capable of handling it, and the Atlanta firm of East-man-Scott was employed, and continued to represent the State for ten years. By that time several Carolina firms had developed . capacity to handle the deal, and representation was brought home".

Since 1948 the State advertising has been handled by Bennett of High Point and Ayer & GUlctt of Charlotte. <Some personal and factional politics which might have been Involved Is not germane to this discussion.) The present contract with Ayer ii Gillett expires on July

1 of this year, and the C&D board at its summer meeting must negotiate a new arrangement.

The State does not pay the advertising agency, per se, any money. Its compensation comes from commissions paid by the publication media used. That amounts to more than $50.000 a year, so the assignment is coveted by many agencies. Of course. A&G wants to keep it, Bennett wants it back, and several other agencies in and out of the state are anxious to get it,

Purthennore. developments of the public relations" angle as rontrasted with straight advertising, has enhanced the value of the connection, because the State does pay directly for public relations services. In addition to commissions collected from publication media. That 1* becoming increasingly important every year. In fact. It is so Important that there is question whether the prime agreement should be with an advertising agency with auxiliary public relations, or with a public relations agency with auxiliary advertising agency connections,

OUT-OF-STATE It is known that several out-of-state advertising and public relations firms are interested in the North Carolina account. It Is also known that some of them have larger organizations and better facilities than any in-stale firms can offer, although North Carolina now has a number of nationally recognized firms which did not exist 12 years ago.

In as much as North Carolina has awarded many construction contracts' to out-of-state firms, even contracts for State printing awarded by the advertising division and the in-state agency, on basis of quality and price, question arises when the protective tariff 'provision should continue to apply to the advertising public relation.^ agencies handling State publicity. CertalTily for several years the Signs have retd that none except, North Carolina agencies need apply.

In view of the fact that In recent months the spread between bids of North Carolina for construction and printing and out of state firms has been as much as 40 per cent in favor of the outsiders, chances are the lid will be taken off and presentations accepted from both In and out of state agencies for handling publicity, with all proposals evaluated on basis of ability to perform the service v^ith due allowance for In-state preference, if the margin is not too wide. ^

Governor Sanford has made quality education the bedrock and keynote of his administration. It would seem reasonable to assume that he will carry the quality element into other phases of his administration, including the advertising program.

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to the American people than he has normally been under such circumstances. The content of his address was, in our opinion, the most thought-provoking of any he has delivered since becoming President eight years ago.

It is one the American people should recall time and again in future years as the development of civilization under a free and democratic government brings the United States to crossroads at which future courses must be charted.

Cost Of Nat l Debt Is Illustrated In Budget

The high cost of deficit financing by the federal

government should have been impressed upon the -p pATPTPTA AITlDPTT American people with the announcement that 11 cents JrAiKlClA MUUKlti out of each dollar collected during the coming fiscal year is\needed to meet the interest cost on the national debt. "

We'll Be At The Ringside

It seems as if, on the nineteenth day of January in the year-of our Lord nineteen hundred and sixty-one. that we are delegated the task of writing a column to either inform or amuse the public (which) reads the paper and perhaps gets around to this page and eventually perhaps to ' this column.

This might be a historical column in our life (we did that on purpose if the grammar bothers you because it is in this very week, on Friday tomorrow the twentieth day of January of the same year of our Lcn*d that

the 35th president will be inaugurated.

We will be there, Mr. Kennedy, watching how you say every word. And we will be watching you. Mrs, Kennedy, to see what earth-shatteringly lovely creation (of bright colors.-of course) you are weeing. And little Caroline. we most certainly expect to see something of you. Baby John most likely will be pretty good since he is so littie yet.

However, we will be in our reviewing stand, ready and waiting. ready to give a blow by blow account to whoever (this

It h estimated that 11 per cent of the total federal revenues will be needed for paying interest on the huge debt in spite of the fact that interest costs during the coming fiscal year are estimated to be down some $400 millions from this year . . . one of the largest reductions in the entire budget.

With such a percentage of the total federal revenue required merely tor annual interest on the national debt, the wisdom of reducing this (iebt as rapidly as possible is clearly evident Certainly every effort should be made to avoid further deficit spending by the federal government from year to year in its opera; tions. At the same time a planned program for reducing the national debtanci thereby reducing the continuing cost of paying interest on that debt should C*

be adopted and adhered to by those who control the JtiC.ltOrS i^ClViriCI

federal purse-strings. . ^ ^

The budget presented by President Eisenhower on \

the eve of his departure from office will be altered 1 1 N

considerably by the new administration and by Con-gre.ss. The amount of money required to pay interest on the national debt during the coming year, however, cannot be altered. The new administration and Congress during the year, however, will in a large measure determine whether the national debt is larger or smaller next year this time. We trust they wdll choose to see that it is smaller.

Bisenhower

Pu

'Balance' First

By J.\MES MARLOW intricately wrapped up in what

WASHINGTON (AP) - PresI- he did and decided not to do.

dent Elaenhower, in his farewell in the programs he prssed and

address to the nation, put his those he didnt, the results of

finger on the very point by his stewardship may not be dis-

which history wUl Judge the sue- ceniible for 10 or 20 years,

cess or failure of his presiden- He sounded confident Tuea-cy. day night, as he did earlier in

How well in his eight years In he week in hig budget message

the White House did he bal- \l that he had glided

ance one national need against

another? he said, is today the strongest,

rru-* j ..u 1 t. j the most influential and most

1 ^ j ^ productive nation in the world.

Only the years ahead wlU night. HU emphasis on it pm- have the answer to this self-appointed the dUemma facing any praisal of his presidency.

president. pgj. ii^tance, we won't know

iUch pro^al must be weigh- for years whether he put enough

ed In the light of a broader con- emphasis on and resources into

programsbalance between our missile and space development

essential requirements a.s a na- to stay abreast or ahead of the

tion and the duties Imposed by Russians or whether some fail-

the nation upon 'the individual; ure to see future needs correct-

balance between actions of the ly gave the Soviets enough ad-

moment and the national welfare vantage in time and effort to en-

of the future. able them eventually to domi-

Good judgment seeks balance nate the West,

and progress; lack of It ^ In an earlier daywhen scl-

aiid entiiic development was far 1ft frustration. , dorrtjnant in,the national and In-

There is no doiibt that balanc- lematlonal future a president

Ing is what the conservative Ei- could be pretty well Judged by

senhower tried to do. For him, the time he left office,

as for any president, this requlr- Not so with Elsenhower at

cd not only the Judgment he least not In entiretybecause

-menUijned. but forfsightenough .^^nuch of the. American future ia

to feel the future would Justify wrapped p !H dbclslons*'whbw

his Judgment. consequences will be a long

Just because the future Is so* time unfolding.

Strength For Today

(Rocky Mount Telegram)

Before long the North Carolina General Assembly will have the unpleasant task of reducing our 12 congressional districts to only 11. This is necessary because the accent census showed that, while North Carolina has increased its population during the last decade, it still must lose one seat in the House of Representatives. While it doesnt seem fair to lose a congressman while increasing the population, those are the-present rules, and unless they are changed the state must abide by them.

However, there is a glimmer of hope. A Kentucky congressman has introduced a bill that would let North Carolina retain its 12 congressional seats. The bill, introduced by Rep. Frank Chelf, would increase membership in the House from 437 to 450, The 16 states, including North Carolina, which stand to lose representatives as a result of the 1960 census would retain the number of congressmen they have. The 13 additional seats would be distributed among the states which, according to the census, deserve increases.

If the bill were passed. North Carolinas General Assembly would be freed of its task of having to reshuffle district lines before the 1962^ congressional election. It would seem that quite a bit of oppasltion woul(^^ be forthcoming from this bill, but Chelf says response to his bill has lt>een magnificent.

The surprising thing about this ia that congressmen even from Florida and California, states which stand to receive big congressional gains, are supporting Chelfs plan. Seven other states are due to gain represen

tatlves. If those congressmen and 19 others support Chelfs proposal, the bill would win House approval. Since 1911, House membership has been set at 435. When Alaska and Hawaii were admitted to the Union, however, two additional seats were added tentatively to give each new state one representative Unless some legislation passs this Congress, membership will revert to 435 two years from now.

Both Rep. Ralph Scott of North Carolina, and Chelf. noted that bcause there has been no House membership increase in 50 years, the 435 members in recent years are representing a population almost twice as large as the same number of House members represented in 1911 This doesnt sound as if the eur-rent larger population is getting as much representation in Wash-, ington as did a smaller population of 50 years ago.

Thus, Instead of following the current rule of reshuffling the same 435 seats to adjust for popiUation changes among the various states.-the proper thing would be to increase the number of seats. For example. North Carolinas population took a great Jump since 1950, but it still loses one seat. And the reason it lost a seat is because some other state Increased Its population still more than did North Carolina.

Chelf noted that before 1911 there was a House membership increase after almost every census. Yet, in modern times when the population increase borders on the explosive, there have been no Increase in House seats. Clearly, there Is a need

Is correct) wants one.

Our reviewing stand wont cost $25 either. (We wont be In Washingtwiwhich is obvious).

Its been a big Joke that youll see more of the inauguration over that great inatitutiiNi of television, but we think Its the truest thing thats been said this year.

But, there are a few questions. as reporters, tliat intrigue us about this inauguration.

1. Where will all of JFKs PT boat buddies and their wives sit?

. 2. Where win Mrs. Kennedy;* dress designers sit, and can they all sit together (professional competitiwi taken into consideration).

3. Where will little Caroline sit and what wiU she do with her pet duck?

4. Where will little baby John sit and who is going to give , him a warm bott* of milk all the time things are'going on?

5. Will there be room along Pennsylvania Avenue for all of John Fitzgerald Kennedys family and their families and Jackie's family and ail the people going from Greenville and Pitt County?

6. Will the Inaugiural parade start and end in time for the oath of office to start when it is supposed to? (Parades never start on time.)

7. Will JFTC himself (who we understand is notoriously late) be on time?

8. Will all these questions be answered?

! Opinions In Brief

"The Ancients listed seven W'onders of the worldthe Psrra-mids, the Hanging Gardens of Babylon, Phidias statue of Zeus, the Temple of Ephesus, the Tomb of Mausolus, the Colossus of Rhodes and the Pharos of Alexandria. Now' the New Haven (Mo.) Leader, suggests that two additional w'on-ders be addedThe American Economics System, and the Lack of Understanding About How It Operates. Industrial News Review.

ay- revision, rather than

increases. ' merely another 10-year reshuffle

There are about 200 congress- of the

men from the 16 states which for an

are schq^uled to lose represen- tion.

same number of seats ever-increasing popula-

"Drowsiness continues to be one of the major causes of highway accidents. Also, most accidents caused by drowsiness occur near the end of the' JourneyAntigo (Wis.) Daily Journal.

"In' this world it is not what we take up, but what we give up, that makes us rich.Henry Ward Beecher.

in me

ties

By GEORGE E. SOKOLSKY Copyright. 1961, Klag Featiuei.

Syndicate, lac.

The roaring Twentiea were not particularly roaring. One might aay that a* a j:e8Ult .of Prohib-^ tion and ita concomitants, it was the phrase, the fabulous Six-many of the mores and habita of the Nineteenth Century were shaken off. One hears these days the phrase, the fabulous SUtles..

Thus far, little else In the Sixties has been fabulous or ^n fact very different from the Fifties or for that matter the Forties I However, there are distinctions to be noted,

I know, for Instance, that there

-are about 100 Conservative Clubs on campuses from coast to coast. They go by different names, as. for instance. Young Americans for Freedom These are young people who probably will have to take the abuse and ridicule that young Communists did in the TwenUes and Thirties, but they are equaUy dedicate^ even if their programs are not altogether clear in their own minds. Being individualists, they are not readily absorbed by other mens Ideas or interpretations. and having rebelled against the compulsive conformity of their own environment, they seek for independent statements of ideas.

Among the extreme, perhaps exhibitlonisUc, individualists are the Beats, as they prefer to call themselves. Of these, there are two-kinds, the genuine and the pseudo. The genuine rebel against the mores of their society, even to avoiding cleanliness or orderly living, or advertised clothes styles or cosmetics: the pseudo do the same, but exaggeratedly so. The genuine attempt to do real work at whatever may be their proficiency: the pseudo are usually either bums who live nn others or rich kids out for a thrill. The pseudos end up with heroin. The genuine Beats are mystics who are influenced by Zen Buddhism and by such writers as Dostoevsky. Kierkegaard and Sartre and who are doing really significant work in music and art. They are now moving into their 40s and are not to be ignored. Of course,\the pseudos make the whole thing*' look ridiculous, as they always do about everything.

The conservative trend in youth can be exaggerated by those who are wishful about It. as perhaps I am. But one need only spend time with young people to discover the consistency of a trend. At the beginning^ of this century, sex was dlscov- cred as something that was written about-4s;bopks and could be. discussed inthe parlor. Young* folks were reading Ibsen. Suder-mann, Hauptmann, Shaw, Havelock Ellis, Brieux. Krafft-Ebing, _ etc., etc. Sex revolt marked the young intellectual. A currently forgotten book, Elsie CHews Parsonss study of the family, made a profound Impression. The family was marked as a restriction upon progress.

In the Sixties, the kids know all about sex and conversation concerning it is a bore. One does not sit around talking about a biological inevitability. Freud and Jung are relegated to the experts who have really passed them by. The youngsters are more concerned about the atom and its sanity or insanity. Will they all be killed or will they produce genetically modified off-* spring?

Whereas for a few decades, religion ceased to have much attraction for the young, except esthetically or as a cradle habit, religion In the Sixties moves forward as an essential for the whole man and the more conservative religious expressions^ show the greatest gains. Mysticism. in some form, seems to appeal strongly to students of the physical^ sciences which astonishes the elders who would expect such minds to be atheistic. So the social scientists tend to say that the family is the soundest unit of society, a revolt against an earlier rebellion Free marriage, which is the outstanding development of the early 20th Century marked th rejection of parental supervision. Free mairiage means that the mates select each other without parental Intervention. Prior to this Reriod, it was usual for. pIiTili W iifMge often to the satisfaction of a family rather than the individuals concerned.

(Continued on Page 7)

conomie

By EARL L. DOUGLASS MARVELOUS SEER Emanuel Swedenborg stands out as one of the most unique and truly great figures in world history.

This remarkable man, son of a Swedish . Lutheran bishop, passed away just about the time the American Revolution was beginning. He was a scientist of note, and was knighted by the King of Sweden for scientific achievements and his service to the kingdom. When he was almost sixty years old he began having spiritual experiences whfieby lie believed Uiat he came in contact both with the spiritual world in general and with distinguished persona ge.s who had passed into that spiritual realm, in some cases centuries before. Swedenborgs vast erudition, the purity of his life, the significance ' of his sciontjiic discoveries, and the

claiHy with which he' wrote on spiritual matters has caused him to be numbered among the seers of the ages. A new church, The CJhurch of The New Jerusalem, emerged as the result of his teachings.

The Swedenborgians are among the most unusual and ftscinating religious group in the entii'e world. Regardless of what one may or may not believe" about Swedenborg, certainly most people would admit first that there is the possibility of a relationsliip between human b<ings and the unseen world, and second, that some people have a special gift for enieiing Into and promoting such a relationship. Swedenborg was chief among such great- spiritual leaders.

He deserves ' to be cla-ssed with the greatest the race has produced. - ...

By ELMER ROESSNER 'his Is a strange recession, ncome, sales and many other Jestora gre^.iit^, Jhars

good.

Unemployment is high; the mid-December total was 4,500,-000, the highest since October, 1958, Thats bad.

In the near future, millions more young people will be pouring on to the labor market.

If conditions afe not to worsen, the economy must expand to provide more Jobs.'

But expansion is slowing down. A McGraw-Hill survey of capital expenditures indicates that they will be 3 per cent loss thls^year than la.;t and. because bu.sines.ses usually" overestimate plant and cqiiipinent outlays, the decline may bo larger.

ARE TAXES TO BLAME -

On the other hand, the Ken-<nedy Administration is expected to provide assistance for housing and highway construction, to make money cheaper, and -to Increase defense spending. How

provide enough Jobs. Increases on the private sector are needed That presents the question:

Do taxes and tax laws restrict

AiXpHTlSioiV?

The answer seems lo be yes.

1. Depreciation allowances are inadequate.

Almost a classic Is the apoch-ryphal example of the company that built a plant for $100,(XX) and, after a few year*, found It obsolete. To build a modem plant In its place would cost $1.-000,000. But under present .laws, the company could have put away no more than $.50.000 tax-free dollars to cover depreciation. To rebuild the facility would therefore take a loan of $9;>0,IKX). Th.-its equivalent to about $2,(XK),000 in profiLs before taxes.

The company would be likely to delay the new plant as long as possible. The delay would pastpone the creation of new Jobs.

BURDENSOME RATES

2. Corporate tax rates are so

ever, these projects may not - high they inhibit expahsion.

The United States corporation tax rates are the highest in the industrial world.

The maximum levy on Amerr lean cerporwUon 'profits ' is *&2 per cent. According to a First National City Bank study, the United Kingdom maximum is 5D,ii per cent; Germany, 51 per cent, France, 51 per cent; Canada, 50 per cent; The Netherlands, 47 per cent; Japan. 45ti per cent; Belgium, 40 per cent; Australia. 40 per cent: Sweden, 40 per cent; Norway. 34 per cent: Union of South Africa, 25 per cent; Italy. 25 per cent, and Switzerland. 8 per cent.

Japan adds 10 per cent on profits of closely owned corporations: South Africa taxes undistributed profits 25 per cent more, and Italy adcLs a tax of 15 per ce|)t more on profits in excess X)f 6 per cent of capital and re-senvea, Switzerland allows deduction of taxes paid in the pr^ vlous year, thus making the ef fective rate less than 8 per cent. RESERVES SMALL ' Because so much of an American corporations earnings

paid in taxes, each company is under pressure to pay its stockholders as much in dividends as possible, and not build up reserves fop expaiwlon: *- - .

It depends'on borrowed money-for growth. When Interest rates are low, it will borrow. But when they are high, as at present, the company will be Inclined to be cautious. This tends to slow down the creation of new Jobs for the rising number of men and women in the labor force.

Thats the way our tax laws prescribe It and that* the way It will continue until Congress reforms the tax system.

IIOR.SES IIAVFT LES.S POWER THAN A HORSEPOWER V An average horse can exert only two-thirds of a horsepower, according to Steelways, ths . magazine of the American Iron and Sfoel Institute.

One horsepower is the power needed to lift 33,(X)0 pounds one foot in one minute, which is considerably mone than one horse can q. r ^