Monda^r, October 9, 1961 ^ "

Economic Growth Must Continu

The fact that tax collections for the state in the, tfie state and by local organizations dedicated to fur forst three months of this fiscal year are in line withj ther economic development. The * '

legislative estimates presents, an encouraging pictures by North Carolina m recent years have furnished for North Carolina during this period of highest state momentum for the state to continue to move forward in " this dirctioii. The momentum will not be main-

tained, however, unless co^isiderable effort is put into

It must not be overlooked, however, that the p ^ economic development program at both the state

jected increase in revenues for the state during this . levels.

bifipnium wa^not based solely upcwi the additional j finan/./ tV./,

tax'Tevies approved by the legislature. The total in- The tax revenues the state needs to finance the crease in revenues anticipated for the state was based programs undertaken for this bienniuin will not be both on the new taxes and on additional revenues ex- up to the needed level unless North Carolina con-pected from an expending* economy in North Carolina, tinues to show significant gams in its economic Unless the economy of the state continues to grow at activity.

a steady pace, the new tax levies written into law by

the 1961 legislature will not produce sufficient reve- p*.PoCnrMimbllltV '

nue to finance the programs that state has undertaken. X lllUX J

It is important, therefore, that North Carolina - 'TU

not sit back and assume the job Is already done just 0 1 IlG V^lly O

because revenues for the first three months of the ^

fiscal year are in line with-^timates. Certainly the ig well, we think, that the City Council study

legislature could not have anticipated a significant the progress which has been made on programs business gain for the .^tate in the first three months financed by the half-million dollar bond issue approv-of the year. This factor will come into play in state gd by the city slightly more than a year ago.

revenues later in this fiscal year and in the second Council should be careful, however, not to

year of the current bienniu . jump into the old pme of buck-passing if the study

The job of boosting the economy of the state in hows that everything that was hoped for out of the order ihat sufficient revenues ill be produced to fi- j,ond issue has not or cannot be accomplished. As the nance the states programs must be done jointly by governing board of the city, the Council has the final

responsibility for administration of city affairs. It may delegate portions of this responsibility to other offi-cials as it sees fit, and as provided under the citys charter. The Councilmen, however, cannot escape the fact that the final responsibility is theirs.

If the anticipated revolving fund for street paving is not effected because the council failed to provide sufficient debt service funds in preparing the citys budget for the furrent fiscal year, they have no one to blame but themselves.

End of Building Project

?ublic-Private Conflict Aaain

By LYNN NISBET

INTRINGEME3T* A dealer In art supplies has protested to the R&lelgh city council that the ceramics section of the recreation department is operating a business in competition with private enterprise, for that the director of the projects is buying supplies at wholesale and selling them to persons who work at the ceramics center for a profit.

While that complaint was being registered at city hall the State Utilities Commission was hearing evidence in a ca.se involving millions of dollars and controversy among big private companies end municlpaUties wanting to utize TVA power in the west. The power case is too complex to attempt discussion here. It is mentioned only because^t has the same conflict of private and public business.

Aiwther iMtance of the same problem is found In the current campaign by the Quality Restaurants Association against the practice of public school lunchrooms, college cafeterias and other non-taxpaying facilities, serving meals on comercial basis. The lodging facilities offered by YMCA, YWCA and other nontaxed agencies also are undec-^ study by the private enterprise men with whom they compete for business.

These practices are in different category from the Prison Ehiter-prises operations, about which complaint has also been registered. The prison enterprises sell only to other government agen-cies-State insUtutlons. counties and municipalities. And the operations afford employment for prisoners, serving the double purpose of keeping them out of mischief and making them ijay, a part of the cost of keeping them in prison.

NARROW There are places where Prison ElnterprLses approaches dangerously close to infringement on private business. There are many communities which have no adequate facilities for public meetings, including dinners, other than the school house. And there are instances where private hu.sines.s claims undue, if hot illegal, protection against competition because the buslnes.s opi*ration does rot comply with zoning and li-cense-tax laws. In mo.st cases the dividing Ime between absolute private interprise privllegos and public rights is very narrow Often there is overlapping.

respects attained wider recognition than did Robert A. Taft, who for many years was "Mr. Republican to America. All of their prestige and all of the honors be.stowed upon them could not combat the dread disease that cut them down. The type of cancer was different, but in other re.spects there was close similarity in the Incidence of their illne.ss. In apparent full strength and vigor one day. a slight warning of impending illness the next, end soon thereafter the final verdict.

SfnjicBte, Inc.

By GEORGE SOKOLSKY

S Contribution To Future

Many do get lost.

Obviously, if as has been implied, the property-owncrs share of payments for paving work is to used to pay off the indebtedness on the bond program there can be no revolving fund. Under such a proposition, there.would be nothing left to spend for paving Copyright. 1961, King Features

after that initial amount had been spent, and these Syndicate, Inc. a big city like New

would be nothinii: left to revolve to bring about more ^he other dav a childhood York, where there are 8,ooo.-

paving programs. friend. Judge Jonah Goldstein,

was in my house discussing work

If, on the other hand, the paving bonds are pai-d scholarships in which the Grand

_- from taxes for debt service, a is the normal procedure

bonded indebtedness, the repayments to the city by great men are concerning

generally think oi uis- g - property owners for paving work could be plowed themselves with what is happen-

back into future paving projects and thus create a

revolving fund. <ng himself with what was hap-

, At. /-I M V .# ti j X pening on the block, to the

If, through an error, the Council has failed to pro- neighbors.

vide in this years budget for retiring the paving bonds night'his wife died she

from tax revenues, they can still salvage a revolving ^egp the first women

fund for street paving by subsequently correcting this lawyers and a public account-

MISTER SAM Sam Rayburn Mr. Democrat to the nation, lived longer and in many

way as the main street acro.ss North Caolina, a lineal descendant of the old NC-10 which ran from Beau/ort to Hot Springs and on into Tennessee. Next week. Sunday through Tuesday, the National U. S. 70 Association is meeting at Atlantic Beach. The president of this association is from New Mexico, the vice president from Arizona, and visitors are expected from every state between California and North Carolina traversed by this 3,300 mile long main street of the nation.

POLICY The State Highway Commission has reversed policy e.stablished by the commission during the Hodges administration in two main points. The concept or statew'lde policy has been changed to a system which every paving project and ferry will be considered on individual merit basis. The Hodge.s 7-member commission set up criteria of so much travel, so many residents, so many school houses or churches, and other data as basis for determining priority in selection of secondary roads > be paved. The Sanford 19-mem-bcr commission retained most of these criteria but added 'gnpther factor of discretion for the highway commissioner and the county corami-ssioner.s which to considerable degree voids the point credit sy.stem.

The Hodge.s commls.sion adopted a policy on toll ferries which provided roughly that if the ferry was the only means of motor acce.ss to an area it would be toll free; if it was an extra convenience only it would carry tolls sufficient to pay operating casts. The Sanford commission last week re.sclndeil that policy and ndopUd one under which every ferry project will get Independent and individual appraisal with respect to tolls. Sa tolls remain on the ferry between the main land and Ocracoke. but the new ferry between Emerald Lsle and the mam land will be toll free.

situation.

Trenc.

Coristant Of Price Index

The Daily Reflector

INCORPORATED -

Published Every Afternoon Except Sunday Established 1882 DAVID JULIAN WIIICHAKD, Publishwr

Entered at Poet Office. Oreenville. N C., m second class ma* matter.

Week 30c

SUBSCRIPTION RATES By Carrier (In Towns)

By Carrier (Motor Routes) Week 35c

BY MAIL, Payable In Advanos

OreenvUlt Post Office. Pitt County. Robersonvllle, Vanceboro Washington and Chocowuty.

Three Months .............................. I 1.T5

8ix Months ................................ 7jOO

One Year ................................... Ui

North Carolina (other than listed above)

Three Months .......... I 4-00 '

Six Months ................................. 7<M>

Ont Year ................................... MjOQ

All Other Outside North Carolina

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

Six Months ................................. aOO

Ont Year ................................... 15A)

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By RALPH ROBEY

Changes of one-tenth of one per cent in the Consumer Price Index are not important unle.ss they continue month after month. When there is a decline of "this amount, therefore, as there was in August, it does not indicate that the general trend is changing.

This index Is compiled by the Bureau of Labor Statistics. It 15 the nearest thing to a cost of living index that we have, but actually it is based upon the spending habits of only urban workers and has only an accidental relationship to what it costs anyone else to live. However the figure is used in all labor contracts which contain a wage e.sealator clause. This means that no other figure compiled by the government, with the possible exception of that on unemployment, has such fax-reaching effects within the economy. In common with all indexes of the government. 1947-49 is iLsed as a base, or equal to 100, The base is going to be changed for all Indexes in a few months in order to have it more recently, and the Consumer Price Index is being completely, revised with a view of making certain that it refk'cLs the goods, services, and spending habits of today. Such a revision Is an enormous job and it will be more than a year before it is finishetl.

For the past year a.s a whole the index has risen a little over one per cent. That us not much, but unfortunately the index has be*n on an uptrend for tin* pa.st .SIX year.s. Tin* item winch has contributed most cousstent-ly to this persistent increase ha.s been snrvice.s rent, medical ex-in-nse.s, electricity, ga.sviline. barber and beauty .shop price.s, and S') forth. Alrno.st every month the aggregate of these services shows a rise.

Food Is the most unstable large Itt in in the riidex, and lu'cessari-Iv It I.S assigned a heavy W(ight. It was largely respon

sible for the drop in August and it was the primary cause for the increase of four-tenths of one per cent in July. Prom the middle of 1958 until March 1960 there was a general downward trend of food prices, and since then, except for a few months at the turn of this year, there has been a gentle upswing.

All commodities other than food increased in prices as a group from 1958 until the end of 1959. then declined until a few months ago, and recently have shown a slight rise. All of these changes have been most moderate, and the index for such items is no higher today than it was at the end of 1959, All of this is history. Does It give us any indication of what to expect in coming months and the next few years?

Fortunately it does. It clearly indicates that there is no ba.s-ic for expecting a sharp runup of consumer prices in the next few months. The most rapid increase in the index we have had in recent years was from 19.56 to 1958, and that amounted to le.ss than 10 points.

But the history also gives us no warrant for assuming that we shall have appreciable lower prices. The last time the index declined from one year to the next was between 19.54 and 1955, and that was a period when federal government expenditures were being reduced.

Today, of course, government spending is growing by leaps and bounds, and all signs point to a continuation of this unfortunate tied. It' will take some little time for such outlays to work through the economic system at leu.si to have a direct effect upon con.sumer pricesbut it will bo only a matter of months.Our judgment, therefore, is that the Consumer Price Index will remain substantially stable through say. the remainder of this year, and perhaps through the first quarter of 1962, but about then wr ^hall .see the beginning of a ri.sc of disturbing proportions.

ant to boot. It had been her idea that when Judge Goldsteins judgeship reached its terminus and he had to retire, he should not hang out a shingle and practice law which in a big city like New York could mean getting receiverships and other favors.

She preferred that he devote himself to the public benefit. So for 27 years, he has been president of the Grand Street Boys Club and of the Grand Street Boys Foundation which does so much that is worthwhile in an intimate way in a big city.

In,a small town, if a bright boy is stuck because his father dies before the boys education

The principal of a high school may discover a genius but how does he finance his education? The smart boy cannot keep up his marks if he has to work whe he goes to school. There is too much homework to do mese days, to much concentration is required. The best colleges require very high marks for admission and the boy who IS sleepy because he has ha/1 to work after sch(X)l may not get those high marks although a keen teacher knows what the boy really 'can do if he has a chance. ^

So, Jonah Goldstein, who worked his way through high school and college, has devised the concept of a work scholarship: that is the boy works in the school, where he is being taught, clerking for the principal, washing test tubes in the laboratory, putting books back on the library shelf, and so on.

The idea is not altogether new because many of us, who had to work our way through school and college, found such jobs, but this is different. It is so

Other Editors Saying UN. Snag Remains

(Rocky Mount Telegram)

Although the U. S. government has agreed with reservations to a Soviet plan for selecting a temporary United Nations secreUr>--general, it is doubtful if that post will ever be filled to the satisfaction of all concerned, and it is equally doubtful if a man of the stature of Dag Hammarskjold is ever allowed to take the job. The Soviets will see to that.

The way things look now the U. N. post may go to U Thant of Burma. The U. S. attitude on acceptance of the Soviet plan increases hope that a way will be found to break the deadlock with its threat of paralysis for the administrative arm of the world organization. The U. S agreed to Soviet insistence that the secretary-general be picked by the Security Council. The reserva-Uons are that the two big cpun-tries first agree on the candidate and his powers.

There hangs the trouble. The candidate may pose enough of a problem: his powers could prove even more of a stumbling block, for the Soviets want a man with virtually no authority, .such as that exercised by Dag Hammarskjold. The U. S. had previously indicated a desire for Dags successor to be chosen by the General Assembly, thus avoiding a veto by Russia in the Security

Council over a possible choice.

The Soviet has also softened its positlPn somewhat on the matter. Originally the Reds had demanded a so-called troika plan for a three-man secretariat to replace the one-man secretary-general post. They changed this to the provision that the secre-taiY-general be selected by the Security Council and they would agree to a temporary officer with three advisers, rather than the troika concept.

The preference, now growing in the United Nations, for the Burma official, U Thant, to be secretary - general, indicates growing determination of the 47-nation Asian - African neutralist bloc to have a voice in U. N. affairs. This could have a profound influence on U. N. operations in the future.

One naturally wonders, too. just how neutral U Thant would be should he win the important post of secretary-general. Burmese government officials are not as neutral as the West would like to think. Some are decidedly pro-Communist. Others are not too happy about the West. 'This leads one to doubt whether the West would get as fair a shake under this man from a so-called neutral nation as it did under Dag Hammarskjold. a decidedly neutral and just man from a definitely neutral country.

arranged that it does not interfere with the studies. It gives a boy ample time to do his school work under prpftpr supervision.

It is not only a matter of bread: in a big city, a young fellow may not have ample clothes and his morale is lowered by comparison with other boys. Or he may find living conditions so awful at home that he cannot do his work there adequately. He may live in an atmosphere of (ionstant quarrelling and bickering that he finally throws in the sponge.

The psychologists call this a character defect but Jonah Goldstein and I, who were brought up under unsatisfactory circumstances. know that it can be fatigue rather than character defect, that it can .t>e weariness rather than distress that drives one to defeat. We had seen it as boys. We had seen these forces of evil turn brilliant minds into racketeers.

And so Jonah Goldstein is doing something about it. He has the Grand Street Boys Foundation to work with and he finds co-operative high school principals who discover the bright boys and give them a chance by providing proper and supervised work in the school where they study. And if a boy needs a telescope or a slide rule or a suit of clothes the money is found to help him become a person of great value.

This is noble work done In a quiet way. I do now know but this may be the first story wrot-ten on the subject, because the Grand Street Boys Gub does not advertise its good works. Why should it? Most of the mem^rs are returning past favors. When I first met Jonah'Goldstein, he was a boy managing the game room of the Educational i^i-ance: I borrowed my first tuition money for Columbia University from a fund in the s^e Educational Alliance. We both know what a little help at the right time can do if it is gently given.

v>-

THE UNITED WAY

By ROGER BABSON

BABSON park. Ms^.As I look back upon a lo^ and active life I have com^tKan important decision. Furthermore, this is in connection with Investments, of which I should have excellent knowledge: my entire life has been devoted to the study of them.

BABIES VERSUS STOCKS Babies are probably the worlds oldest investment, having survived many thousands of years of wars, massacres, panics, and revolutions. In many nations even today the l^^est families are believed to be tne richest, while a famUy with no children is looked down upon.

Stocks are only two hunted and forty years old. The first big promotion was that of the Misslssi^ Bubble, sponsored around 171V1720 in France by a Scotsman: while- the s^ood great stock promotin was the South Sea Bubble, which followed in England under the leadership of Robert Harley and later under Robert Walpole. Other than in the United States, the sales of stocks (new Issues! reached a maximum just before World War I, w'hen London was the worlds center of stock trading. world War I gave the I^n-don market a great blow: while World War II put New York ahead of aU the worlds centers.

BABIES VERSUS BONDS Stocks offer a speculative profit which bonds do not Stocks also benefit from Inflation, Interrupted with a few eras of deflation, the inlaon of currency has been going on lor centuries,since money was first used in Persia and Babylon 3,000 years ago. Bonds suffer through inflation, thence longterm bonds should usually be avoided.

Of a given corporation, however, the bonds should be safer than the stock, provided the bonds are due within about five years. They have a first hen on the company and, in case of trouble, interest on the bonds comes before dividends on the stock. The safest investments ()f all are healthy, well-trained children. To be doubly safe, take out an insurance policy on each child as soon as it is bom. BABIES AND COMMUNISM Stocks, bonds, and other pieces of paper such as we recognize as wealth have no value in Russia. Only In bank accounts of the Russian Government Bank can one safe money in Russia. Even then, Russia devalues the ruble (or Russian dollar) whenever It suits hr convenience. Savings are not en- * couraged under any communistic government. The Russian government is supposed to own all land, factories, stores, etc. Well-trained children art the only assets considered.

In view of the above, those of us who have property dread communism. All property would be taken away from us: we would all work for the state, buying our food, our rent, clothes. and entertainment from the state. On the other hand. Russia is gradually becoming capitalistic, while the United States is gradually becoming socialistic.

If we can continue fifty years without a World War III, there may not be much economic difference between the East and the West. This especially applies to those here who are living on inherited money and are not actual workers. The income of non-producers will gradually be taken away by taxes of various kinds.

HEALTH, EDUCATION,

AND

RELIGION

'This brings us back to our original thought, that well-trained children are the best security and insurance. Our President Kennedy, seeing this change coming in the distance, is working for legislation to give free medical service to those who deserve it. Already England has from the womb to the tomb coverage: while many other

countries such as Sweden are trending that way.

I agree with the physicians that such a program is dangerous. I am even opposed to giving free obstetrical services. But some plan could be worked out whereby the family could get a tax reduction, directly or indirectly, on each baby born. With the growing Importance of babies, some inducement should be given for the expenses connected with their birth and early years. To bring this about is a basic purpose of the Isabel Bab-son Memorial, in which I am much interested.

Strength For Today

A Company That Has No

By KARL I.. DOICLASS AT IT ALL TIIK TIME

We have vreat admiration for tho;.p people who having lived lives of lurid and devastating Kin turn from their evil ways and b^-coine upslandinii and useful clti/v-ns, Occa.slonally this comes about Ihrounh a mere exercise of the will, U.sually in fack almost alway.s it is the working out of a profound religious conviction.

We honor the sinners who have been Kami*. How much better, however, are those people who have always lived the good life and' whose growth in character has been gradual and continuous. No ome Is perfect. Anyone who believes he Is a saint and sets him.*>clf up as such Is a va.stly mistaken pt-rson, and usually an object of ridicule among hia fellow men. And he should be.

But there are people who. like the great preacher Phillips Brooks, can say: I never knew what it was not to be a Christian: From my earliest moments 1 was trained in the things of faith.

This Is idea, but unfortunately this Ideal state does not always obtain. A Chrl.stlan home mean.n a home In which the paronLs are constantly aware of their responsibility to keep the process of Christian nurture In operation and in which the children feel themselves in a fellowship of love and religious faith. There may be some protest on the part of the children, but this is not serious. What is serious Ls the continuous program of Christian nurture continuously carried out.

It takes time to develop moral character. It involves sacrifice. But it is worth all it costs.

Bv ELMER ROESSNER

In the midst of strikes and threats of strikes, members of the American Management Association will meet at the Astor in New York tomorrow and hear about a company that hasnt had a strike in 23 years.

The company is the Rogers Corp.. a manufacturer of speciality materials, with plants at Roger.*^, Manche.ster and Will-mantic. Conn. The expositor will Is* Saul M. SllverstPln. president of the company, who was Jast week awarded the 1961 Human Relations Award by the Society for the Advancement of Management- Previous winners have , Included Henry Ford II. Cyrus S. Chlng, Clarence A. Wlmpfhei-mer and J. *C. Penney.

One of the keys of the Rogers peace record Ls its monthly la-bor-management meetings. The corporation and the United Pa-p<*rmakers & Paperworkers International. AFLrCIO, hold 12 contract talks a year. Ten are

to settle current differences, the eleventh is to put the next years contract into final fbrm, and the 12th to sign it.

110.NOKARY MEMBERS OF UNION

When the latest contract was ratified last week. Silverstein and his personnel director, were made honorary hfe members.of the union.

As the A M. A. members will hear, the company has done considerable pioneenn in labor relations. In 1942. six years before General Motors and the United Auto Workers had agreed on a cofit-of-livlng clause in their contract. Rogers granted the bene-

111.

The company also encouraged Its white-collar workers to form a union, which they did in 19.58.

The monthly meetings have a double purpo.se: the settling of current troubles and the development of the next annual agreement.

If a grievance is fought into a labor-management session, we appoint a two-and-two committee on the

out to bring back a report in 20 minutes, if passible, Silver-.stein will tell the A, M. A. meet-

oiilER POINTS

Other points hell make (weve seen a synopsis of his talk) are:

Management needs more codal 5cienti.*^ts rather than management technicians; more attention to why than to how . . . ^

There are still too many managers who think of good human relations as (Chapter 17 of a textbook on management. Good human relations is the whole book. . .

All too often managers who emphasize social and moral responsibilities of industry are castigated do-gooders. For the life of me, I see no evil in doing good. . Jt seems to me that

the basic responsibility of management is really to make this world a better place to live in. With this type of leadership we can earn and preserve the right to lead. . .

The whole business of labor relations resolves itself into less collective bargaining more collective thinking,

and

CHRISTIAN BROTHERS LOSE TAX EXEMPTION

A Federal District Court has ruled that Christian Brothers, a Catholic organization making the best-.selling brandy in the United States, must pay taxes on its profits.

Athough it uses the profits from its manufacture of brandy and wines to subsidize its edu-(ational and mis.^ionary activities, the court held that they tMd not conduct rellgiou.s wor-.''hip or exercise priestly functions, which the court found V ere cs.sehtlal under Internal Revenue regulations.