,^FAC1 FOURTHS DAILY REFLECTOR, GREENVILLE, N. C

Monday, July 24, 1961 ^ ,

Great Wealth In Water Resources

Want TGet Rid of Your Excess Lard?

There was a time when areas such as Eastern North Carolina looked with great envy upon areas o other states, blessed with oil. iron ore, gold and other natural resources that produced millions of dollars for other states.

able precautions to assure the continued usefulness of these water resources, they should remain in sufficient supply to meet all the demands that are placed upon them.

While North Carolina itself is blessed with^any natural resources which have produced great wealth in this state over the decades, one of its greatest natural resources is destined to become more valdable rather than less valuable in the decades to come.

" As the nation has grown In population, as its industrial and agricultural operations have grown, the water resources of the nation have become increasing^ ly valuable. The continued growth in all these categories in future years will put an even greater premium on the presence of an adequate water supply.

That natural resource is the Coastal Plains vast water supply.

Oil wells can run dry, iron, copper and other ore fields can be worked out, and even vast gold strikes often are worked bare in the span of a relatively few years. With water resources such as the Coastal Plain has, however, there is little likelihood that Eastern Carolina will be faced with the problem of rivers drying up, streams disappearing or ground water reservoirs descending to prohibitive depths. So long as the state and its individual communities take reason-

In its rivers and streams and underground waters, therefore, Eastern North Carolina has a valuable natural resource that is rapidly becoming an infportant consideration for industries which are looking for new plant locations. Together with other natural advantages which Eastern North Carolina offers industrial prospects, these abundant waters will to an increasing degree prove the difference between industries choosing sites here and settling in other areas.

hot Election is

!Due Next Year

By LYNN NISBET

UPCOMINO Although next years primary and election involves only one high ranking statewide office likely to be contested, the occasion may prove one of the most interesting and hardest fought election campaigns in many years.

Terms of Associate Justices WiUiam H. Bobbitt and William B. Rodman run out December 31, 1962, and these seats will be filled by the electorate In May and November. Presently there is no indication that either will have opposition.

The only other stateside office at stake 1 the seat in the United States Senate, presently held by Sen, Sam J. Ervin Jr. Rumors are current that he may have to defend his right to keep it. Ervin is rated a conservative, not entirely in sympathy with some of the liberal Ideas of the Kennedy and Sanford administrations. No open breach has occurred, but It is common knowledge that relations over Federal patrona.ge have been slightly strained between the State administration and the congressional delegationand to some degree between the Senators and the Representatives in the Congress.

It also is common knowledge that the Sanford group is seeking, with a high degree of success so far, to take over full control of the State Democratic organization. Whether this group will challenge Senator Ervin next year, or withhold their major effort until 1964 when a new Governor and a full slate of State officers will be elected, is one of the questions to be answered during the next few months. The answer will largely depend upon the availability of a New Day champion to challenge the Incumbent senator who has a record of never having lost an election.

CONGRESSThe big scramble wUl come In three or four congressional districts where the lines have been so materially changed as to require almo.st entirely different type .of campaigning. The realignment was made necessary by loss of one representative, reducing the number of districts from 12 to 11. Every district was changed except the sixth, comprising Durham, Orange, Alamance and Guilford counties. Candidates for Congress in the first, second, third, fourth, fifth, seventh and eleventh districts will have a campaign in some new territory and the new territory enhances the prospect of opposition to incumbents. The big changes occur In the new eighth, ninth and tenth districts and some sbideots of politics think the new lines probably will result in electing Republicans

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As the recreation and tourist industries continue to increaseaa they re almost certain to doEastern Carolina will find ita streams, rivers, sounds and beaches continuing to attract more vacationers for longer seasons of the year, not only from within North Carolina, but from other parts of the nation as well.

In tim, and with proper development and proper conserv^ation measures, the water resources of Eastern North Carolina can mean as much for this section as iron ore has meant for Pennsylvania, coal to West Virginia and oil to Oklahoma.

from ail three of these districts,

EIGHTHThe eighth district in the new set up is still the worstor best (?)example of gerrymandering. The old eighth rambled all across the state, from the coastal plains through the piedmont and into the mountainsfrom 80 miles of the Atlantic ocean on the South Carolina line to within 15 miles of Tennessee and Virginia. The new eighth runs from Lincoln, through Mecklenburg, thence along ie South Carolina line and up into the Sandhills. The new district includes the homes of Reps. Paul Kitchin and Charles R. Jonas (Republican) as well as the homes of a dozen or more residents of Mecklenburg and Moore who have toyed with the idea of running for Congress for years.

There was a lot of talk during the committee consideration of the districting bill about pitting Jonas and Kitchin againM each other. As of now, there is no certainty either of them will run or that they will have a lone twosome of the race if they do.

LEGISLATURE In many counties there will be more interest in the campaigns for membership in the 1963 general assembly than hi any of the State or other local offices at stake. Early signs are that the Sanford organization will be more concerned about these positions than has any State administration in years. The sales tax on food levied by the recent session has given a ready-made issue for the next election.

The public school folks and all fair-minded people know that it will take several years for the 'quality education program of the Sanford plan to become effective. But a lot of voters are not fair-minded. Many of them act on emotion and prejudice. If they cant see Immediate tangible results from sales taxes collected this year theyll be ready next year to junk the program.

That is one of the expen.slve luxuries of demoncratic government. With a completely new administration every four years, a new legislature every two years, adopted programs do not have time to prove their worth before they are changed.

C&D and Highway reorganizations ordered by the 1957 legislature at Instance of Governor Hodges were Junked in 1961 at instance of Governw Sanford. Tax schedules which had remained fairly static for 20 years were upset this year, and may be changed again in two or four yearsunless the political organization can develop enough influence to maintain the status quo. Present indications are the organization will attempt to hold the line, and betting odds favor ks success In that effort.

Our Friends Provide

Regrettable Problem

Sometimes our friend.s compound American problems ill the world. Bizerte is a case in point.

' The United States was just an innocent bystander, but the first finger-pointing was directed toward Americans.

As we understand this unwanted clash in North Africa, an understanding had been reached some time ago that France was eventually going to give up bases in Tunisia. The Tunisian government, for some reasons of its own, imposed a rather half-hearted military blockade around outskirts of a French-built naval base . . . then in a spirit of braggadocio announced an aerial blockade was also in effect. It was all very unnecessary.

By GEORGE SOKOLSKY

A Prelude To Potsdam

Instead of ignoring the gesture, the French felt obliged to insure security of the naval installation by military means. Presumably there were grounds (in terms of prestige and military needs) for such action.

At any rate, the volatile Arab world took the incident as a horrible example of imperialism, colonialism, racism, false-friendism and maybe even an affront to motherhood.

Copyright, 1%1, King Pexturei Sjrndicate, Inc.

On May 26. 1945, Harry Hopkins met Stalin in the Krexnlin to discuss many very important subjects.

For some time prior to this meeting. President Harry Truman and Prime Minister Winston Churchill had been maneuvering to get Stalin to agree to some kind of a Summit meeting but Stalin had avoided a decision. Finally. Hopkins was sent to the Kremlin to make arrangements for what eventually became the Potsdam Conference.

Hopkins explained that President Truman asked him, Hop

kins, to go to Moscow because:

. . .he thought the Marshal would be interested in a brief description of President Roosevelts state of mind just prior to his death. He said that on the way back from Yalta it had been clear to him that President Roosevelt was very tired and that his energy was on the decline, Stalin pushed aside this emotion description by saying that Lenin also died of a cerebral hemorrhage following a stroke. Stalin apparently wanted to get on with the business on hand, he knowing that Hopkins, himself, was a very sick man who had not much longer to live

As friend.s of Tunisia, it was to be expected they i^ll 1 ^

d look to tbo TTnitpd StAte.s for sunnort: as fripnda 1 1 it j-/iiiiv^i ivJ.il Co V^iLiU

would look to the United States for support; as friends of France, it was to be expected they would look to the Unite(l States for understanding. ^

Friendships can be trying.

It i.s most regrettable the explosion occurred at the very time when the West is trying to allign its own strength and that of friends for a much more serious test in the months ahead.

On N.Y. Stock Exchange

Chester Bowles Is Not Yet Safe

By J.VMES MARLOW

WASHINGTON (AP) Washington is sometimes like a country lane at night, with a lot of bright little eyes gleaming in the bushes, and man can get chewed to pieces without knowing what bit him.

In the first big family quarrel in the Kennedy administration, Chester Bowles, the No. 2 man in the State Department as undersecretary, has just walked down that lane. He wa* badly chewed but managed to survive if only temporarily.

Liberal Sen. Joseph S. Clark, D-Pa., fervent supporter of the liberal Bowles, seems to this writer a little too optimistic In suggesting the survival is permanent. He told the Senate the conflict involving Bowles is all over.

President Kennedy himself left the door open for it not to be all over.

Because of the toothmarks left in Bowles' prwtlge it will be interesting to see how effective he can he henceforth not only in dealing with foreign diplomats but with people, who seem to include some of his critics, in the department. '

Bor .several days there were news stories predicting Bowles was going to be yanked out of his job by Kennedy and given an assignment as roving ambassador. What made the stories sound authentic was their double nature:

Some Indicated the information critical of Bowles* performance as undersecretaiy came from people serving under him In the State Department his boss. Secretary of State Dean Rusk has

never figured in this and from people In the White House, meaning people close to Kennedy.

But' one, suggesting Bowles had no Intention of letting himself be bounced around, clearly pointed to the unnamed informants as men around Bowles. This could be taken as meaning Bowles had approved their talking, if he hadnt inspired them to.

This one appeared after the anti - Bowles stories. It said bluntly Bowles would get out of the Kennedy administration altogether if Kennedy tried to remove him as undersecretary.

Whether or not it chilled the anti-Bowles forces In the administration is not known but this is known: that same day Kennedy lunched with Bowles and the White House denied Bowles was resigning.

Then Kennedy at his Wednesday news conference said:

Ht had never asked Bowles for his resignation, always expected him to serve out the life of his administration, had complete confidence in him, and that Secretary Rusk haid complete confidence in him too.

Still, Kennedy hadnt said Bowle.s would be moved out of his job a.s undersecretary. So a reporter asked him the obvious question: Was there still a possibility Bowles might be shifted?

Kennedy said that as of now he thinks Bowles should stay as undersecretary, that he has no plans to ask him to take another assignment, but that he will ask him if he thinks Bowles can fit in better somewhere else.

Thats a long way from saying Bowles Is In solid as undersecretary.

By RALPH ROBEY

For many years the New York ^ Stock Exchange has published a bulletin designed for the use of its members. It gives various data about the work of the Exchange, new companies listed for trading, long-time dividend paying concerns, and so forth. It never gives advice on what to buy or sell, nor in any way Indicates an opinion on an individual security.

One of the annual features in this bulletin is a list of the members of the billionaires club. Those are companies whose shares are listed on the Exchange which, in the preceding year, had sales or revenues of at least one billion dollars. The 1960 membership of this group has just been published, end since almost all of our largest publicly owned corporations in the field of production are listed on the New York Stock Exchange, changes among those which rate this honor are of more than special interest.

In 1960 there were only 52 of these companies, an increase of one over 1959. But there were four new members American Motors Corporation, Douglas Aircraft C^onjoration. The exchange also noted that the 'billionaires as a group showed an increase In sales from 1959 to 1960 of 4 percent and a rise of 2.3 percent in profits. This is appreciably better than corporations as a whole were able to show.

Another compilation of corporations of more than passing interest is that of the 100 largest. This is published each year by the First National City Bank of New Rork in its monthly letter, only nonflnancial corporations are included, and the selection is based upon total assets. This list, therefore, is quite different from that of the Stock Exchange, although there are Innumerable

duplications.

In terms of total assets the largest non-financial corporation we have in the United States is a public utilitythe American Telephone and Telegraph Company ($22,558 million). Next in size is the Standard Oil Company (New Jersey, $10,090 million). Then comes General Motors Corporation ($8,553 million).

The smallest member of the 100 largest is the Erie-Lacka-wanna Railroad with $698 million. and next is the Great Atlantic and Pacific Tea Company with $711 million.

The bank gives many further significant facts about these 100 corporations. For example, the average capital investment for each worker was $30.300. Among the public utilities the average was $58,100 for each worker; in transportation, it was $41,000; in manufacturing $24,700; and in retail trade, $8,700.

Total taxes paid were more than $15 billion. This was equal to $5.29 per share of common stock, as contrasted to an average dividend of $2.00 per share.

Such are some of the facets of big business in this nation. Not all the companies which are subject to political attack are Included in these lists but by far the majority of them are. Included in the 100 largest are 16 railroads, most of which are having pretty hard times, and all of which are subject to the most detailed government regulation. Also Included are 26 pub-lis utilities, and all of these are likewise regulated by government.

Neither as a nation, now as individuals, would we be better off if any of the 100 were broken up. We have the laws to keep the manufacturing companies competitive, and these laws must be enforced. But there is no point in using these laws to punish the innocent.

Monday July 24, IWF

Hove A Value

and had not made this long trip to discuss the nature of Roosevelts death.

However Hopkins persisted and reminded Stalin how much faith Roosevelt had in Soviet Russia and that Roosevelt was responsible for initiating the program of aid to Soviet Russia.

Hopkins then went on to explain that since Roosevelts death, the American people were not as enthusiastic about Soviet Russia as they had been. Hopkins said;

Two months ago there had been overwhelming sympathy among the American people for the Soviet Union and complete support for President Roosevelts policies which the Marshal knew so well. This sympathy and support came primarily because of the brilliant achievements of the Soviet Union in the war and partly from President Rodsevelts leadership and the magnificent way in which our two countries had worked together to bring about the defeat of Germany. The American people at that time h(H)ed and confidently believed that the two countries could work t<^ether in peace as well as they had in war.

Hopkins made the point that American opinion was turning anti-Russian;

He said he wished to assure the Marshal with all the earnestness at his command that this body of American public opinion who had been the constant support of the Roosevelt policies were seriously disturbed about their relations with Russia. In fact, in the last six weeks deterioration of public opinion had been-so serious as to affect adversely the relations between our two countries.

Hopkins then explained the nature of Roosevelts foreign policy: . . .the cardinal basis of President Roosevelts policy which the American people had fully supported had been the concept that the interests of the United States were world side and not confined to North and South America and the Pacific Ocean and it was this concept that had led to the many conferences concerning the peace of the world which President Roosevelt had had with Marshal Stalin. President Roosevelt had believed that the Soviet Union had likewise world - wide Interests and that the two countries\ could work out together any political or economic conslderatiMis' at issue between them.

We come here to the ewe of the problem facing us today. Apparently it was Roosevelts plan to have a two nation control of the world. The United States and Soviet Russia would be the masters and all other (Continued on page five)

By ROGER BABMm BABSON PARK, MaM ~ Some readers may t^nk tts subject is a little out of my line, but so many of my friends have died of heart diseaso this past winter that 1 ean honoetly call hobbies a real Invesimtnt.

PURPOSE OF HOBBIES A hobby ik omeChing which takes your mind off what is troubilng you. You may have difficulty sleeping, or yOu may not have a good aiH?ete. or you may be worried about the trmd of the stock market or some unfortunate family affair. The cure is to get your mind on something else. An interesting hobby will do the Job. Such a hobby, however, must be a game to you which will bold your Interest, not a chore.

POSTAGE STAMP COLLECTIONS One of the most popular bobbies indulged in by profearional men-^uch as doctors,, lawyers, ministers, and politicians it stamp collecting; the late F.D. Roosevelt was a great stamp collector. It con:^>ines knowledge of geography with a possibls chance for profit. Those who desire the latter, however, should confine themselves to stamps of one country, weferably those of the United States.

The same professional gnmp turn also to paintingWin-' ston Churchill is a master in this. With a few painting lessons it is remarkable what an amateur can do. Now that jazz painU Ing is In style an amateur may do better than a professional I You cannot think o anything else when you patot. It often keeps you out-oi-doors, and your paintings are always In demaiul by friends and relatives.

CARPENTRY WORK AND CRAFTS

These require a workshop somewhere in the house and the purchase of some machinery, which any hardware store will provide. Some executives make furniture for the older member of the family and others make airplanes for the kids, who love to watch. Among other hobbies let me mention golf, photography, leathercraft, iloww making, wood carving, Indian lore, shell collecting, rug making. bead work, glajss etching, jewelry, weaving, mosaic panels, and carpentry of all kinds. My hobby is gardening both vegetables and flowers.

Once each year hobby shows'

take place in all the latter ciU abow these.

ies. For information write Hobby Show Of6s. 3443 South mil Street,. Los Angeles, California. Also, you nrht subscribe to a bobby magazine in which you would find advertisements relating to the special hobby you are following or cwiald-ering. Just reading an issue of a hobby magazine may take your mind off your troubles.

WHY HOBBIES ARE INVESTMENTS

Those who have bought stocks on borrowed money are Inclined to bet nervous and unaetUed when the market goes against them. They are unable to sleep and cannot do their best work. They even buy more stocks when they should sell, and vice versa. These people are in desperate need of a hobby which would take their minds (^f the stock market and given them a clear Judgment as to whether to buy, or sell, or just h<dd.

As a temporary short-cut to peace and plenty, many such worried pe<g)le take drug* called tranquilizers.*' These drugs give only tempww relief; while a good hobby would bo much more useful and ncm-hiabit-iorm-ing. Every br(^erage ofilce should have magazines on hobbies as well as the Wall Street Journal and similar papers on the stock market.

Every reader of this column should have a hobby. Executives and others who are to be retired at 65 years of ago idKiuld have a hobby before the time of retirement. Otherwise, they will be left with nothing to do, which leads to deterioration and early death. One more thought;If I were a young man looking for a profession, I would sell hobbies.

Quote ...

"Hie battle for education must be waged on all fronte, and an important front Is the easing of the conditions of poverty. If the State cannot afford low quality schools nehn* can It afford a high percentage of its citizenry 111-fed, ill-clad and m-houaed. The Raleigh (N.C.) Nrws and Observer.

Stock Ootions Due For Look-See

By ELMER RDESSNER

Opinions In Brie:

Sometimes in these days we carry to extremes the use of new and fancy words for old plain ..and familiar ones. Certainly," however, the old colloquial use of the word 'weed* for tobacco does not fit the care given this plant In North Carolina and Its importance to the State's prosperity. Raleigh (N.C.) Nws dc Observer,

thing that needs pondering and mulling, something that needs dreaming aboutsomething that might grow; something that needs the tender touch of wonder to fertilize its creation. The Chapel HUl Weekly.

There doesnt seem to be anyone around anymore wbo is ceaselessly Irked by a thistle of curiosity about something he doesnt quite understand, sbme-

**The rebel elector Is a specs-Gulator who thinks the two major parties are heading toward Communism, thit tht people have no right to choose a President, and that the Electoral College is the nations only hope. The St. Louis Post-Dispatch.

Congress seems ready to take a new look at stock options given corporation executives to svlmulate them to greater achievements, or to increase their take-home pay at minimal cost to the company.

Heres how they work: A company will give an executive an option on 1.00 shares of its stock at its going price of $50 a share. If the share value rises, say to $75, the executive exercises his option, paying $50,000, holds the stock six months apd then sells It. The executive \ays a capital gains tax of no more than $6.250, leaving $18.750 net.

If 'the company had increased his pay $25,000, he might have had to pay as much as $22,750 in taxes. In other'words, if the company had wanted to increase his net pay by $18.750 after taxr.s, it might have to increase his pay before taxes by m('e than $200.000.

VARIATIONS ON THEME

There arc many variations to option deals. &ut the'one described above is basic.

DEFENDS OPTIONS

One economic advisory company is currently advertising:

How would you like to get from your company a special kind of' stock option that can give you. on an investment of $1.000, a profit of some $80,* 000?

This was done recently through a company selling a nonrestricted stock option for 100 shares of stock to one of it executives for $1,000. The following year the executive sold the option On 89 of his 100 shares and realized a profit of some $80,000.

This plan has it all over regular stock options as a method of rewarding executives. It doesnt have to meet the strict rules that apply to stock optionsand the profit can come to you' as low-taxed capital gain.*

Promotional literature like that turns Congressional attention toward stock option plans. It also stirs, up labor leaders, "whose men pay regular income rates on their earnings, to demand action.

At the recent National Business Conference sponsored by the Harvard Business School Association, Thomas M.' Ware, president of International Minerals Si Chemical Corp., vigorously defended that abolishing stock options was comparable to removing incentive from our free competitive system.

Stock options, he said, benefit the company, the stockholders and the individuals. It gives the valued employee a proprietary interest in' his '^company, he slid. It puts a premium on creativity and encourages personal contributions. It stimulates more participation in the financial growth of the c(npany

It directs lodivkLual efforts toward desirable corporate goals.

AUSTRALIA SHIPPING BEEF, MUTTON TO U. S.

WhUe the United States to giy. ing .. surplus meat to U aaed, i it is also Importing large quantities from Australia. In June, two ships left Australia' lor the United States with 1,733,760 pounds of frozen beef and six ships left with 2,266,880 ponBda of mutton.

METAL PRODUCERS WANT i YOU TO BUY A CAR <

Large metal producers have started advertisinf eaxnpaigne to encourage more Americans to buy autos. Printer* Ink reporte. UB. Steel. Alcoa, Reynolds and Great I^es Steel have launched or are about , to launch promotions to eneourlgi more, people to buy new cars.

The more cars people buy, the more metal those companies will sell to auto manufacturera.