Monday Juna B, 1961

Monday, June 5, 1961

That. First 100 Daze

Delay VVont Make The Job Easier

The tough problem of redistricting North Carolinas congressional districts will not be any easier for the legislature in the fall or any other time than it is now.

Those who would put off the matter to a social session later in the year appear to ns like the ostrich who sticks his head in the sand hoping that whatever is bothering him will go away.

The legislature has the responsibility in this session to can e 11 congressional districts out of the 12 which now comprise the state. The fact that two of the present congressmen will find themselves in the same district when this is done is inevitable. Postponing consideration of the matter will not change the picture. And neither is it likeiy^that further study of the possible composition of the 11 vpotential districts will result in any easier course for the legislature in resolving the problem.

It has been known for almost a year that the state w'ould lose one of its seats in the House of Representatives in the next session of Congress, Even before the legislature conveiied in February considerable

time and effort had been put into studying the possible realignment of the states congressional districts to comply with the new conditions. Since the legislature convened a wide variety of proposals have been offered both officially and unofficially for bringing about the redistricting. From these plans, or a combination of the plans so far presented, the legislature should be able to decide how to realign 11 districts in the place of the present 12.

For the General Assembly to come back in a special session this fall for the purpose of handling this matter which should be handled in the regular session would be a waste of the states money and a waste of the legislators time.

Whatever plan is adopted will not suit all of the people of North Carolina or all of the sections of the slate. That will be true whether the redistricting legislation is passed in the current session or in^a subse-Quent special session. The legislators, we believe, owe it to the people of the state to make their decision on congressional redistricting during the current session rather than postponing the matter until a special session.

Absolute Must The staggering Toll

U T Casually Accepted

jror iwo nems

If two airliners were to collide over the United States claiming several hundred lives, there would be an immediate cry of public indignation and demands for full investigations, new safety measures and far-reaching revisions of regulations to assure such a tragedy would not recur.

The same reaction would be forthcoming if a train or ship accident suddenly snuffed out a large number of lives.

But when the highway death toll soars to more than 450 on a holiday weekend such as the recent Memorial Day Weekend, the staggering loss of life is accepted almost as a matter of course. The American people who become greatly concerned over loss of life in some kinds of accidents shrug their shoulders at the highway massacre which takes place on a holiday.

So long as such an attitude of public apathy toward the staggering highway death toll prevails, there is little hope that an appreciable reduction in the toll will come about. There is little hope that the holidays throughout the year will not be marred by the ugly spectre of death on the highway.

Perhaps the reason for the apathy toward the tragic highway death toll is that it is not possible to-pinpoint responsibility for the great loss of life. In the case of airliners, ships or trains, it is usually rather easy to point a finger at a relatively few people. In the case of a highw^ay death toll of some 450 on a holiday weekend it is impossible to place the blame on a handfull of people. The entire motoring public must share in the blame to some extent.

The greater tragedy of such a holiday weekend as the recent one is that it does not shake the public from its apathy toward greater highway safety. We look forward to the July 4th holiday, to Labor Day, to Thanksgiving and to Christmas with the full expectation that many more lives will be snuffed out as automobiles jam the highways.

There is little hope of eliminating the unreasonable highway death toll until the public as a whole shakes off its apathy toward the situation and joins in a genuine, concerted effort to make the highways

safer.

Only Question Is On The Rate

By LYNN NISBET

MONEY! !The Genera] As-embly has understanding system sympathy of most housewives in its current hassle over Imbalance between anticipated revenue and proposed spending. The householders extend sympathy but not much help, because they dont know how to balance the books, either.

A* the Legislature goes into 17th fuU week it passed the 100th legislative day, 116th calendar day last Saturday the relationship between appropriations and revMue bills is reminiscent of the 1933 and 1935 seawms. Since 1939 there has been no rcaUy serious iHX>blem of NUanetng the budget.

In the depression years legislators spoke respectfully of total budgets in the aggregate amount of $30 to $40 million a year. Now they talk glibly in terms of $500 to $800 million. The total number oi dollars involved does not affect the basic necessity bringing the estimated ^ spending within tht scope of anticipated revenue, nor the necessity for the House and Senate to agree on both figures.

As the 1961 session goes into Its lOlst legislative day there is about $7 million difference in estimated revenue provided in the House and Senate plans, and a spread of $6 to $12 million between the anticipated revenue and the approved appropriations.

Actually, the situation is more complex than that. Because of technical bookkeeping distinction between general aud special funds, and efforts to eliminate highway fund diversion by adding items heretofore charged to that account to the general fund bill, expert accountants confess Inability to keep up with Just what is going on.

CONFUSINQ News stories have reported, for Instance, that the Joint appropriations committee has added mme than $97 million to the amount recommended by the Advisory Budget CommissioQ. Other news stories report that the Senate finance eommittee has added some $72 million, while the House committee has approved only $65 millkm. On face of thwe stories it would appear there is gap of $25 to $32 million.

It Isnt that bad. The Juggling of figures and the ^gllng is entirely ethical and legal among general, ^ highway and other special funds reduces the margin to a sort of common dcDominatcM- of around $10 million. That is a right sizeable sum, but loses significance when considered in relation to the total budget of around a billion and a half dollarsrepresenting about two-thirds of one percent. Adjustment should not be too difficult.

The trouble is, of course, that

neither in appropriation or tax Items can the adjustment be based on percentage. Some items not included in the bill must be taxed, or some items included in appropriations must be deleted. Either process steps^ on somebodys sore toe. It was'^ just this sort of thing that old-timers remember prolonged the sessions in the early thirties. Then, as now, there were many close votes with frequent reversals of majorittes by switching one member. Last week the chairman of the House finance subcommittee had to break tie votes two or three times. On one key vote in the full committee the tally was 27 to 26 (in a group with 6.1 votes) in favor of the administration sponswed sales tax on food against an alternate levy on tobacco.

PROSPECTS The administration has won every maj<w contest in committee voting on money bills, but by very narrow margins in many instances. Betting odds around the sidelines of legislative circles are that the Sanford administration w'ill win on all major points in final votes.. But the victory will not be easy and w^ill not be achieved without some losses and some concessions. As of now there is serious doubt that the compromise agreements can be worked out in time for sine die adjournment on June 17, the target date of the administration which is less than two weeks away.

There is an added question mark about sine die adjournment this year. Heretofore the money bills have controlled the date of adjournment, which has usually come within a week or ten days after agreement on the budget. This ye&r the matter of congressional redistricting is an almost equally Important factor.

Despite hasty passage of a bill by the senate, without public notice or opportunity for citizens to be heard, the fact is the problem of redistricting is not much nearer solution after 100 days than it was when .the Legislature convened in earty February. Many citizens throughout the state have asked to be heard on the subject. Chairman Ed Kemp of the House committee has promised to hear as many of them as possible, although the first opportunity for such hearing was given last week on the 98th legislative day of the 1961 session.

An appropriations bill must be enacted before July 1. or all agencies of State government will have to suspend operations, 'A redistricting bill must be enacted before the 1962 election or all eleven congressmen will have to run at Urge. Except for those items there are no absolute musts.

ti

MeNu!rt Stndieat*. Inc.

By GEORGE SOKOLSKY

Distinguishing Good

Copyright, 1961, King Features Syndicate, Inc.

The assassination of Raphael Trujillo must not be taken as an attack on a dictator, Thai is not true. Trujillo was- the strongest anti-Communist force in Latin America. That he was also a dictator fs not all surprising because most who gain power in Latin American countries are dictators. Only the State Department and the CIA can distinguish between a good and a bad dictator. Only the doctrinaire experts who labor in those government offices can perform such psychological wonders. To the rest of the Americans, a man is to be judged by his attitude toward the United States. Whoever is against us is no good. It is as simple as that.

The CIA doctrine of intervention is intolerable from the standpoint of American history and American tradition. When this country decides policy on the basis of the virtue of those who govern a countrj-. we should soon have no country to be friendly with. For virtue is differently regarded in different cultures. No Latin American would ever think of judging American public men by their virtue. The investigation would be

as disappointing to them as It is disappointing to us to look into the biographies of some of our allies and the nations to which we have been giving millions in aid.

The test then is not virtue and cannot be. The, younger men who sit on the fourth floor of the State Department or who prowl the Earth seeking righteousness for the CIA do not serve this country. The American doctrine has been one of non-intervention in the internal affairs of other countries. The United States has heretofore avoided attempting to enforce its concept of government upon other peoples. It is only since Woodrow Wilson t^at the United States consideted world leadership and actually no great effort in that direction was made until FYanklin D. Roosevelt became President. World Leadership has become a very expensive and unsatisfying toy for us.

The United States has assum- ed since the Presidency of James Monroe (1817-1825) that it has solved any problem that might arise in Latin America by the Monroe Doctrine. This was a statement of policy" which appeared in a Message to Con-

Other Editors Saying Why A Special Session?

The Daily Reflector

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By RALPH ROBEY '

About the (mly question now concerning the business upturn is whether the recovery will be fast or slow. Majority opinion is that it will be slow. That view may well be wrong.

Actually both the adjectives, fast or slow, are ill-suited to an appraisal of the business curve. They are used merely as a shortcut expression for distinguishing between a situation where, having hit the low point, we ride along at that level for several months before turning up. and a recession from which there is an immediate and sharp upturn. It is the difference between a saucer-shaped recovery and a v-shaped recovery.

Those who maintain that this will be a slow, saucer-shaped recovery defend this view by saying that history shows that a gentle downturn is always followed by an equally gentle upturn. Whether history actually shows this depends upon what statistical measure is used, and there are many that may be employed Industrial production. employment and unemployment. gross national product, business profits, national or personal income, retail trade, government revenues, and so forth.

Each of these series has advantages and disadvantages, and no on? can be picked out as necessarily the best. Most analysts probably use industrial production as measured by the index of the Federal Reserve Board.' The great advantage of this - is that it is based upon physlfcal units and hence price changes no not affect it. The high of this index was in January of last year at 111. This means that production in that month was eleven percent above the average for 1957. The index was 102 for each of the first three months of this year, and then in April it jumped three points to 105. For this particular index that is an unusual mob-thly change, and It does not lend support to the thesis that the upturn will be slow.

Gross national product also is widely lused for judging the business trend. This Is the broadest economic measure we have. It is the monetary value of all the goods .and services produced in the naUon. Since It is expressed in dollar terms, g change

of prices does affect it, but there is a correction for this. Government spending for goods and services is included in the total, and this can have an important, and at times a dominant, influence on gross national product. This is one of its most serious drawbacks from the viewpoint of measuring the basic health of the economic system.

The all-time high for gross national product was $505 billion in the second quarter of last year. In the first three months of this year the figure was just a shade under $500 billion, and between these two dates government outlays for goods and services increased over $6 billion. In other words, the private sector declined enough to offset this increase by government and some $5 billion In addition.

It will be some time before we have even a preliminary official estimate for the gross national product for the current three months, but it is widely expected that It will be at least equal to the previous high, and some persons think it may be close to $510 billion. For the final quarter of the year, present estimates are that gross national product will be around $.52.5 billion. Almost all of this increase will come from the private sector of the economy

If this expectation for gross national product proves true: which appears probable, this will not be a slow, saucer-shaped recovery. Rather it will mean that we have had a broad and rather amazingly rapid uptimn. There still will be quite serious problems, both domestic and foreign, and some of them may be just as pressing as they are today. But the outlook today eliminates every possible justification for government action to end the recession or speed up the recovery.

Quote.,

Nothing fUe so brightens the day of a new'spaprr worker as a request for an article that appeared in hi.s paper, or .some other, one. two or three years ago .somrwhere between January and December Memphis Commerclat Appeal.

(Kinston Free Press)

The current fight over the re-districting of North Carolina by the General Assembly has taken a new turn with Rep. Pat Taylor of Anson County urging a special session of the Assembly to consider the matter. Piedmont leaders are resentful of Eastern Democrats for seeking to place GOP Rep. Charles Jonas with Democrat Rep, Paul Kitchen. They say it wl backfire in the next general election to the ultimate gain of the GOP in a number of districts in the middle of the State.

It is time to ask some cold, analytical questions about this matter and to move ahead with the best possible solution. In the first place, if the majority party decided to make concessions now and be easy on Rep. Jonas and his constituency in the next general election, is there any 'concrete evidence that there would be reciprocal consideration by the GOP?

Has there ever been a majority party in this State or other states that voluntarily penalized itself? In New York

State now the controlling GOP leadership is busy with redistricting efforts that * certainly will penalize the Democratic Party in th$ next general election.

What should be avoided in North Carolina as much as possible, as we see it, is any illogical effort to make the district in which GOP Congressman Jonas has to run an un-wieldly conglomeration of gerrymandered counties that could not be considered fair play for the incumbents.

In its final analysis this whole issue will be fought out at the polls the next time the voters have a chance. If competent public servants compete for the seats and the full electorate expresses itself, then the result is likely to be wholesome, regardless of the outcome.

After more than 90 days of consideration of this matter in the current session of the General Assembly, it would be wasteful and foolish to set up another session to consider it. The Lssues will be no different next Fall than they are today.

gress and which was acknowledged throughouk^4he-wKrld as binding, although during the Civil War, Napoleon III attempted to violate it by placing Maximilian of Austria on the throne of Mexico. It is worth recalling what the Monroe Doctrine actually said:

In the wars of the European powers in matters relating to themselves we have never taken any part, nor does~ it-ncomport with our policy so to do. It is only when our rights axe invaded or seriously menaced that we resent injuries or make preparation for our defense. With the movements in this hemisphere we are of necessity more immediately connected, and by caused ^Tftch.-nKlst be obvious to all enlightened and impartial observers. The political system of the allied powers is essentially different In this respect from that of America. This difference believe that our Southern breth-adhered rigidly to the principles proceeds from that which exists in their respective Governments: and to the defense of your own, which has been achieved by the loss of so much blood and treasure, and matured by the wisdom of their most enlightened citizens, and under which we have enjoyed unexampled felicity, this whole nation is devoted. We owe it, therefore, to candor and to the amicable relations existing between the United States and those powers to declare that we should consider any attempt on their part to extend their system to any portton'of this hemisphere as dangerous to our peace and safety.

Further, it says:

It is Impossible that the allied powers of that time should extend their political system to any portion of either continent without endangering our peace and happiness: now can anyone believe that our Souther brethren, if left to themselves, would adopt it of their own accord. It is equally impossible, therefore, that we should behold such interposition in any form with indifference.

This Doctrine made it clear that the United States would not permit a foreign power to gain territory or to control peoples on this continent. Prom 1823 until Wilsons Administration, we adhered rltidly to the priciples of the Monroe Doctrine. Since then our policy has changed. The results have been unfavorable. The Soviet Universal State has moved right in, setting up headquarters in Havana.

Motels

Recome

Big

' By ROGER BABSON

BABSON PARK. Mass. Per--haps it cootiniws to be Americas fastest growing industry from a moQcy-invested standpoint: but the number of new individual motels declined in 1960, Motels are becoming big business and from an investment 'standpoint may now be classified with hotels. Motels, now, are hotels laid on their sides! Let me venture to say that real estate has become our fastest growing Industry.

The first Englii^ tranaaltion of Sir Isaac NewUma Law of Action and Reaction upon which the theory of the Economic Cytde and the busineae of most Investment Counseling are based was made in l'T29. In those days, this Cycle practical- ly applied only to gold and real estate. The price of gold haa since become controlled by the Federal Government; but the cycle theory still appllOs to real estate. I personally briievc that we may have passed the peak of the present real estate cycle.

Of course, the gi^ condition of business always has a profound effect on the real estate situation,housing in particular. Since I fear that no great economic boom is now probable, the immediate future of real estate must depend upon other factors. One of these is the availability and cost <rf money. Another is the cost of new building. Neither of these factors is now helpful to real estate.

Another thing to remember is that the regularity and balance of cycles iiv real estate activity are especially pronounced. Upward and downward swings tend to match, in both intensity and duration. But according to Sir Isaac Newtons Lew. H la the product of the intensity and duration which must ultimately balance. As the intensity of the recent real estate boom has been rather magnified, then the duration of the following slump may be greater than expected. This is contrary to most rea-

-<iAning but this is Newtons Law,

Overextension and retrenchment are psychological human forces which cannot be measured. Another human factor is the ~ lar^e humber of iseople reaching the age of 20, which means more marriages. This will call for more rented houses and small apartments. The big home-buying age is 30-35 The percentage of Americans reaching these ages has begun to decline. There is, however, a growing trend toward home ownership, especially homes ih the suburbs. This figure is now 60 per cent. Hence, rental price rises have fallen below the cost-of-UviBg advance. Foreclosures have been increasing in certain new subdivisions. Office buildings continue in demand, with vacancies of not over 5 per cent.

Since the Kennedy Administrations policies should result in higher income for the farmer,

I expect a,further rise in farm land prices especially land near cities, both large and small. The old advice: Buy by the acre and sell by the foot Ls still good. Also remember that each city is growing fastest in some one direction,it may be east or west or south Before speculating in vacant land, there arc certain facts you should get: Determine the current land values and prices in the area, tax rates and appraisal methods, new roads and highways approved for construction (as well as those in the proposal stage), all pertinent construction plans by government and private enterprise, the growth rate in the area as compared with other sections of the country. You must guess: The length of time before land appreciation will take place, the possibility of being isolated by highways not yet proposed, the danger of sliarp tax-rate boosts, the future cost of utilities, likelihood of Industrial expansion, and future prospects for existing industries.

In Summary: Real eetate investment at this time can still be sound particularly in relation to many other profit ventures but the ahseooe of any evidence of a great new boom makes it more important than ever for you to select your vacant - land tnveetment with great care. Pinal thought: Re-merrtber bow fast intereat and, taxes pile up!

'-iguring On Cost Qf The Bite'

Bv ELMER ROESSNER

Search of business libraries and government publications fails to turn up a definitive writing on the cost of "the bite on business.

Countless books tell about determining overhead, ratios of advertising to sales, sales analysis, cost accounting, management ratio, adlocation of fringe^ benefit costs and every other large and smail, facets of American business.

But there is no trace of any book or study telling how much a business must or should pay in honest graft, friendship gifts. benefit tickets. tips, contributions- and whatnot.

Thus is passing strange.

Somewhere in this hallowed land there may be a town in which the cops on the beat dont expect gifts, where the firemen dont sell tickets to balls, and where Inspectors turn down presents. If you know of such an uncivilized hamlet, let me know

SECRET COST OK DOING Bl SINE.SS

Every husnesuiian and every city ollicial from Hell, Me., to

Breakfast, Calif., knows about the bite. College econonilcs professors should know about it too, or turn in their Phi Beta Kappa keys.

The blunt truth (and Moscow papers, please dont copy), is that almost every business in the United States is paying tribute to police, to Inspectors and to other officials for one or two reasons; they are operating with minor law violations or they havent got the guts to say no when a government empK)yee walks in with a hand out.

In many cities, the laws are so contrived that it is utterly impossible for a company to stay in business without violating one or more laws. These laws are not Intended to drive Jausl-ne.'ses out of town: they are enacted by local politicians to put businessc.s into the pasition of paying heavy fines in court, or cheaper gifts to officials.

LETS RECOGNIZE IT

In many cities, the cop on the beat gets his $2 a week whether the bu.sine.ss obeys the law or not Building inspectors get larger gilf.s for inspecting work even if perfect. Firemen get $3,50

each for tickets to balls that no one ever attends. Sanitation men get their presents or you never see the lid of your garbage can again.

It is not the purpose .of this column to discuss the ethics or morals o these practices. The basic point is this: the professors, writers and government people pretend the bite does not exist.

There are no warnings that certain allowances must be

fnade for the civic squeeze; there are no schedules that show how much a prowl car

driver should expect each week if your store is not to be broken into; there is no scale as to how much more a safety Inspector should get than a police ser

geant.

Business Is grown up now. Lets turn some of our research to the question of how much

honest graft cost^ business; how much a company should plan to spend for the bile ius well as for fringe'* benefits; end what are normal ratios between squeezed gift.s and. say. rent or em-plovees health benefits

Lets just atop pi-etending that

the biU doMnt aflMl tlsMfl every buiioM* in Amcrka-

Incidentally, the mrbida became a tramendoua burden <m small business In tiw last yean of the Batista regime In Ciba.

Its drain on the honest eern-Ings of buskieee eaaeed meny small businessmen to MVPort Castro.

LETl BUST OUT (

BREAK THROUGBS

I and many othen are mt-

felted with break throuchs. It was a break-through when General Patton headed toward the Rhine: it was a brcak-throfofh when we devised the first atomic bomb; It was a break-thron^ when we got Alan Shsi)ard lato orbit.

But I am eiek and Ured of press releases about new breakthroughs in the preparation of cosmetic creams, about breakthroughs in new designs tor outdoor grills,^ break-throughs dn new shoe designs for men an(l break-throughs in headache remedies. No more break-throughs.

I hope will break through this interdiction.i,