re-

Monday, November 27, 1961

Export Market Needs Attention

7

The Third Man

for additional stocks. Unless the trend in American tobacco production changes, this will prove to oe a permanent rather^than a temporary arrangement. It will not be because the purchasers prefer the Canadian or Rhodesian tobacco to the American flue-cured leaf, but simply because they are unable to obtain sufficient leaf the American market to fill their customers orders.

It should be alarming to flue-cured producers that while total tobacco consumption in the European and world markets is increasing, the exports of our flue-cured tobacco is decreasing. We are not keeping pace with the increased consumption by our production, and further we are losing foreign markets to other areas.

Export companies and organizations have suggested an acreage increase of approximately eight per cent during the coming year in an effort to put American leaf in a better position to hold its own in the world market.

While this increase may appear slightly higher than some farmers would like to see, it seems to us that Secretary Freeman should give serious consideration to an acreage increase in the neighborhood of five per cent. Such an increase would not be sufficient to have a widespread adverse effect upon prices which farmers could expect to receive for next years crop. On the other hand, it could put American flue-cured tobacco producers in a position to meet many demands from foreign customers for tobacco purchases which otherwise will be permanently lost to American growers.

vfcoiT'T , u u. V 1 complex tobacco industry of today, if is

"SNECY BILL It has infiuencV'th?efecti^ of a pTr*y- enough that various segments of the industry look

been a lon time since a Gov- chairman. Cobb was chosen to only from one year to the next. If we lose our world emor or wy other i^rson Mt- head the RepubUcan organiza- marketsand we have taken a licking in this respect

It was not surprising that Agriculture Secretary Freeman last week set the 1962-allotments fof* flue-cured tobacco approximately th same figure they were for this year. It could prove a crippling long-range blow to the flue-cured tobacco industry, however, if the Secretary does not use his discretionary authority between now and February'1 to effect a slight increase in flue-cured production.

The tobacco industry generally has recognized the vulnerable position of American tobacco in the world market. In an effort to help alleviate this situation and help hold export trade, there was a move to freeze flue-cured price over a period of several years. In spite of this arrangement, however, inflationary influences have continued to push tobacco prices upward and as a result the position of American leaf in the world market has not shown appreciable improvement.

In additi^ to this, tobacco officials have pointed out that there is a shortage in export-type tobacco being produced in the flue-cured areas, and this has forced many export companies which formerly purchased almost their entire supply from American producers to turn to Canadian and Rhodesian markets

'Rare Attack By Gov. Sanforc.

Ing in high level official position ^ referred to an opponent in words as caustic and bitter as those used by Governor Sanford about R^blican State Chairman WiUiam E. Cobb.

yearsthe entire industry as we know it Bert Bennett to head the Dem- will suffer Immensely. The so-called price freeze on

ocratic organi^Uon. supports was one positive step taken to help our flue-

_____ m lifhii' tobacco in the long run, and now it is time we

In an off the cuff address sometimes talked too much, that take another positive step to protect our valuable

delivered to the N C. Farm Bur- he has made some very unwise foreign sales of tobacco.

eau Pederatlon the Governor charges, and that a court charged the Republican leader- Judgement now stands <^bject

8hip7 especially Chairman Cobb, to appeal) against him for libel,

with duplicity and hypocrisy in The fact remains, these statc-

'that they supported most of the ments were made by a polltl-

'recent bond issue on the front cal partisan who has no official

street, but went to the back obligation other than decent

streets and fought all the Items citizenship. Governor Sanfords

on the ballot. statements were made In offl-

Next day at his weekly news clal capacity and to that degree

conference, the Governor re- tend to implicate all the people

ferrcd to Chairman Cobb as of North Carolina. And a lot of

Sneaky Bill, and said he had them are letting it be known

Jost all confidence in him and they do not like it.

That step, we believe, is a slight increase in acreage for the coming year.

Season At Hand When Extra Care Required

By GEORGE SOKOLSKY

Silence Is Intolerable

Copyright, 1961, King Features Syndicate, Inc.

Professor William T. R. Pox of Columbia University is not With the Thanksgiving holiday week-end behind different from a great

nism. There is the bad way of against reaching a conclusion

setting neighbor against neigh- that a member of the Commu-

bor and sowing dissension, as P^y is not a good citi-

However, the Supreme Archbishop WUliam E. Cousins court has reached that con-

Of Milwaukee reported to his elusion and Attorney General

fellow Catholic Bishops only this Robert Kennedy says that he

will enforce the law. Therefore,

all about?

{tre'S"r wS'n he tad - PrctIca - The !!* ''

caslon to deaJ with the Repub- practical poUMclana are not con- throughout the country, every motorist should the Comimmlst Put ^ iow tsi. i. .11 00,

llcan party he would get his in- cerned too much with social be reminded that the deadly days of December are been finally outlawed by the

formation from sources other amenities or with personal feuds, almost unon us Sunreme Court Tluh Dothan the party headquarters. They are mainly Interested in ing everything, as all parents

Many of Governor Sanfords votes. There were not enough season of the year when mild fall wea- ^ Denartment ^ jiSl sooner or later tell their chil-

fricnds as well as other elect- votes for the bonds the other ther gives way to the rigorous winter blasts with rains ^ jusuce. Professoc. I am sure,

ed officials who ^ve responal- day to authorize their issue. The and snows that makes highway travel more dangerous is a fine of $10.000 and do deep research on someone elses

bimies in connection with mak- failure was admittedly a set- Li LI I uangerous ^he possibility of a jail sentence ^ subject, to reach this pro-

Ing State government efficient back for the administration. other seasons. It is the time of year when of five years for every day that conclusion. However, it T

nH fat.. 4 <4. tfx all C/___ ____ ______ fwom/. oaormc 4-n awx:4-,a cv T 4-U- ..-i. .. cvcijr v-.... j i.. * CrUTle UniO .

and fair citizens were viciousness

tack, and _____________

personal animosity. They fear recouped, and the best Interests reaches its peak

the effect on future develop- of the State served. Obviously it is the season of the vear wbpn tViP However, Professor Pox dls-

ment of educational and health Most folks are waiting for Gov- * L 1 ^ me year wnen tne ^ ^

advantages, especially the phas- ernor Sanfords radio-television motorist should exercise greater than normal communist meeting In Greenes which arc dependent upon speech Monday night to furnish caution. More than at other times he should not let wich. Connecticut, where he

vote or Je^tlon-and some guide for activity at local his rush to get to work, his rush to get the shopping lives. The Professor said:

that takes In nearly the whole level. There Is widespread opin- u j I

field. Despite the great powers Ion he may use reaction to that home after a hard day at the There are good ways and

accorded to and assumed by the speech to determine whether or business dull'his sense of caution behind the wheel. bad ways of fighting commu chief executive, not very much not he will call a special session

can be done without specific of the General Assembly. He

authorization of the people or almost suggested that at his lat-

their elected legislative repre- est news conference,

sentatlves. LEADERSHIP The practl-

WHOLE These critics point cal politicians admittedly are

out the Sanford statements were disappointed at lack of vigorous T

made in his official capacity as showing of leadership on part TV^ k-N /'"N L-J

Governor of the whole sUte. of of the Governor. Early in the III ill (llll t* I 1 ^

all the people of North Carolina. Legislature the Governor said X X X X kJ

to each of whom he has equal he might submit the idea of a responsibility as an elected of- sales tax on food to popular

ficial although not all of them vote. The legislators made it

cuss the subject. How does one fight a plague without discovering that thore is a plague?

The Professor apparently feels that an anti-Communist meeting in Greenwich will turn neighbor against neighbor. The poor dears are apparently to be protected

Of course, if in the iwocess of holding such a meeting, someone takes a shillelagh and busts bead open, that assault and battery and itself, but it can-crime for discuss econom-may be

inconvenient for some who fail to recognize that freedom of speech does not consist merely in saying Amen.

Caution may require a few extra minutes behind the wheel, but it is much less costly during this rush *

sea.son than risking a few weeks or months in the LjU.L(Jo OLiyiliy

Coltrane..Ideal Man

ho.spital

or worse.

voted for him.

It has been the custom for some years for political analysts to consider North Carolina as approximately two-to-one' Democratic that the Democratic votes would Just about double the Re>publican. Even so, at least one-third of the citizens were still citizens if they had voted wrong.

The hard, cold, and unpleasant facj for Democrats to face Is that the two-to-one ratio no longer applies. Terry Sanford was elected Governor la.st fall by a ratio of Just under 6.S-45. In other words, more than 45 percent of the voter* wanted another man for Governor. And it is this 45 percent which

known that was their responsibility. Then he said if the Congress did not enact school aid legislation he might call a special session to act on State school house bonds. Nothing has been heard ol that idea lately. After the debacle in the bond election, and even in his speech to the Farm Bureau, the Governor strongly intimated his intention of calling a special session to re-submit some of these bonds. As of now it seems to depend upon popular reaction to

Aaain Shown Ud

By RALPH ROBEY

Two years ago there was widespread worry about the loss of gold from this nation as a result of the deficit In our international balance of payments. At this time last year, there having been a vast improvement in the first few months, there again was worry. The first part of 1961 also started out well, but

$3.8 billions. At the start of this year it was generally believed that 1961 would reveal a great Improvement, and a few persons predicted that there would be no deficit at all. Now It is officially forecast that we shall have a $2 billion deficit, and it may be somewhat larger than that. What Is causing the worry is that the deficit

(The Raleigh Times) '

It is fortunate that David S. Coltrane is retiring from one important state Job right into another. Even though he has reached retirement age, he is completely vigorous and it would be unfortunate for the state to lose both his ycnithful vigor and the experience he has accumulated during the many years he has served the State so well.

In his new Job as a special consultant and member of the Advisory Budget Commission, he will be a sort of super expert on efficiency and economy in state government. Governor

It used to be, in this country, that discussion was welcomed; that citizens sat about the crack-er-barrel in the general store listening to the wisdom of their neighbors and arguing points.

It was a peaceful world then

when men and women freely differed on all questions and remained friendly relatives despite their differences. It was a time when no one was afraid of dis-needed, or whether by now they turbing his neighbors by ques-have Just become frills. tiomng anyones Judgment. But

For one thing, there are count- ^ when if a fel-

his Monday night speech wheth er a special session will be call- iavorablc and once again there ed. -is real concern.

And It must be kept in mind The international balance of that the Monday night speech payments Is the difference be-

will be heard by the 45 percent tween all the goods and services

now has turned appreciably le.ss is on the uptrend and next year Sanford feels that Coltrane can

has chosen Bill Cobb to head of the electorate who did not we buy from foreign nations and

_ _A A A____ I_____ M______ W.

their party organization. vote for Sanford last fall, but

There is no point here in go- did vote for BUI Cobb to be Ing into the background of poli- their party leader.

The Daily Reflector

INCORPORATED

Published Every Afternuon Except Sunday EsUbllsbed 1882 ..DAVID JUUAN WHICHARD, Publlabar

CnUred at Poet Office, OreenvUls. N C. a* oscond cIms matter._____

o

WMk 30c Wek 35c

SUBSCRIPTION RATES By Carrier (In Tovms)

By Carrier (Motor Routes)

_ MAIL, Payable In Adwanoc

Oreenruie Pom Office. Pitt County, RobersonvUt, Vaoostm Washington and Chocowlnlty.

Three lionths .............................. 0

Six Months ..............

_ * ijn

Oat Year ................................... nflff

North Carolina (other than listad abm)

'Three Monthe .................... |

^ ..........................

................................. IgM

All Other Outside North Carolina 'Three Months Six Months One Year .

eeeeee <

aeeeeeeei

MKMBCB ASSOCIATED PBKSS

The Associated Prea* Is exclusively enUUed to um for pobllcatloc all oaws dispatches credltad to It ot not otherwiM credhad to Om paper and also tbs local osws published herein All rlgbte af pubUcatloo of spedal dlspatcbas here art ako

NATIONAL ADVCSTfSING REPRESENT ATI VI. Tboina* P Clarfe Oo Inc., New York, Chioago AUanU M(

Audit Bureau of Clrculatloa All advcrtisuig copy must bt received at least one day beftne pubtlcation data

the amount they buy from us. In term* of dollars the largest item la the import and export of goods. We recently have been exporting about $20 billion a year and importing about $15 billion. This means we have had a trade balance in our favor of approximately $5 bUlion.

Other significant items are

private investment both in this nation and abroad, travel ex

penditures. and transfer of funds because of a difference in Interest rates. On private Investment

this nation gains on balance. On

tourist travel Americans spend much more abroad than foreigners do here. The grants in aid and military expenditures, in so far as our balance of pajments is concerned, are all on the deficit side. The transfer of funds may be in either direction, and it mav be of a magnitude whkh Is enormously disturbing.

In both 1959 and 1960 our international deficit was about

may be substantially larger.

Underlying this growing concern are a few major facts. Imports are continuing to increase, but exports recently have

shown a tendency to decline. Continuation of these trends necessarily will increase the deficit by an equivalent dollar amount.

save many times his annual salary of $15,(X)0 by his work,on efficiency and economy, uid that feeling 1 well based in fact.

Dave Coltrane has been with state government for more than 25 years, the past decade in

less state publications of one sort or another. Are they all necessary? The history of government pubUcations has always been that once one is started, it is never stopped even though the reason for its existence may no longer even exist itself. For another thing, the cult of public relations has grown by leaps and bounds in recent years aroud Capitol Square. Are all the vari-ous press agents really needed?

For another thing, are some of our agencies getting top heavy at the top? There used to be only one assistant director in Conservation and Development, but now there are two. There used to be a highway director and a part-time highway chairman, but now there is a fulltime highway director and full time chairman.

For anbther thing, exactly how many state institutions and ag-

high spots in the Budget Bureau ____ ___

Morel and more American nro- ^ Department encies have state-owned auto-

ducer? e buUdii^ Adminttration. His expert- n^obiles above the lowest-prtce

aucers are Duuoing ractories ence on all levels of state bov- range? And are the more ex

. pensive cars really needed? Are

prob- all the state station wagons.

low doubted this was Gods own country, he most likely would likely invite fiery antagonism and might get a punch on the nose which would teach him to express an opinion in a proper manner. Nobody, however, questioned the right of another to speak his piece, particularly as regsu*ds some foreign enemy.

I do not question Professor Poxs wisdom that it is prefw-able not to discuss public questions and to be dumb in order to avoid giving offense. But as* one who Jollily gives offense on most occasions, I must say tluU silence in the presence of a traitor or an enemy or a fool is intolerable and that I will have none of it, evey if very polite folks regard me as a boor. 'The time has come to speak up In this country, and speak many of us shallnow that the Supreme Court has led the way.

It is too bad that k has taken so long, but the enemy within has now been pointed out to

knr*notonrSlS%rebi

elgn^t of production are less. f the departments, but 5rtch^clt*^oMW^blv*'Sore ^

in other instantes they _do U in also of the opportunities for more ..S-JUn! obnoxious, call a cop!

order to be able to sell in the European Common Market without tariff handicaps, and is some Instances it is merely to broaden their selling areas.

'Quote-...

, than regular model cars, really

efficiency and economy in gov- needed or do at least some of

ernment. simply please someone

Our state government has vanity?

curtail. grown by leaps and bound dur- There are other fasdnating

Our^ ffoTernmem^ frantic years since corridors Coltrane can explore

abroad keen increasina Much World War II. It is high time ia the state government. Hell So often, after meeting an

of this It is true involves the ^ survey of the have a lot of enthusiastic back- old friend you havent seen for

Durchalse of Booda from this oHlces around Capitol Square, era in any exploration he does years, as soon as you get home

nation hut a larire nart is not deciding wheth- which leads to a saving in gov- you go look into the mirror,

used in this manner and, hence.t Post-war additions are ernment spending. Valley Register, Middletown, Md.

adds to the deficit.

Finally, the American dollar I." no longer regarjded by many foreign experts as absolutely impregnable. Just why this is true Is open to much difference (Continued on Page 6)

?utr Stock Values

By ROGER'BABSON

BABSON PARK. Mass.The poasibilky of devastation from Qucletu* explosion is now a matter of concern to the whol# world. It could be argued that this dismal ix>8pect will have a depressing effect on the value oji fire and life insurance stocka. However, the Insurance Imku-try assumed no war risk liabiljr ty during World War n. biR acted moely In the capacity of a government agent when war risk insurance was Institutet}. ** Today, most of the insurance poUciee which are in force exclude payment for damagea from enemy action. 'These facts should at least be reassuring to those Investors who own Insurance stocks.

WHAT ABOUT PRICE

CONTROLS?

A study of fire insurance com* mon stock prices, from the postdepression stock market peak of 1937 to the wartime low in 1942, Indicates that they held up bet^ ter than twice as well in value as did the mighty Dow-Jonee Industrial Average during that same interval. Hice, despite the pressures ot wartime uncertainties during World War II and the rigid price controls in effect then, investors owuitngl stocks of companies insuring property and life had much. less worry than those who pinned their faith on the Issues which made up the Dow-Jones Average during that time.

Today Investors are disturbed about the possibilities of controls and anxious about what their institution might do in the way of d^ressing common stock values. This is not so serious*^ a matter for stockholders of fire' and life insurance ccunpanies because price controls would at least dampn down the chronically rising costs encountered in settling claims and would thus, tend to Improve underwriting results for the Insurance companies. In sh(t. business stocks are not so vulnerable to price controls as Industrial stocks are.

FIRE INSURANCE STOCKS

VS.

INVESTMENT TRUSTS

Fire Insurance companies traditionally hold a substantial part of their reserves in common stocks. These insurance sux:k portlolios are managed with professional skill, providing the stockholders with advantagee similar to those enjoyed by owners of good investment trust stocks without the added cost of the salemans commission and the continuing management fee.

' This leads us to the conclusion that many insurance stocks now represent good value for holding during this time of trouble and danger and lOO-megaton bombs. I therefore recommend * that all investors have at least one well-chosen fire and life insurance stock In their list of securities to help them maintain peace of mind in this dan-' gerous atomic age.

LIFE INSURANCE STOCKS

Both fire insurance stocks and. life insurance stocks have the public working with them. The cost to the city in which yoa livefor its fire department, Gamewell fire boxes, etc. directly benefits all fire insurance stocks. This is especially important with fire insurance losses constantly Increasing year by year. Furthermore, fire insurance policies are issued, as a rule, for only three years, and seldom for longer than five years. 'This gives the companies opportunity to readjust their rates according to changing conditions. These rates are set by the state .authorities, and they are known to be fair in making adjustments.

The public goes even further in helping the life insurance companies. Every doctor, hospital, and individual is working to protect life and lengthen the lifespan. Polio epidemics have been. virtuaUy eliminated, while, because of proper municipal san-' Itation, very few cases of dip-theria or typhi(xl now occur. Tuberculosis is still being fought by private associations and other means. I repeat that all Individuals, physicians, and municipalities work to-eliminate disease, and this benefits every life Insurance company. 'The biggest dangn* now is the automobile. which has not yet been controlled.

Rembrandt And The Tax Angles

Strength For' Today

By EARL L. DOIT.LA.S.S TRUE RICIIE.S

Money is the root of all evil.

Who said so? Certainly not the Bible. The Bible says something vastly different. It declares that the love of money is the root of all evil. This is something else again. Money is not evil in Itsslf.' It Is the love of money which is evil.

The columns of the newspapers are full of tragic stories of what people do for money.

Never have w needed monfijL- * ..iRJtofntial

so much x'we need lt-4!ay7 leader, with Nicodemus

because the overwhelming majority of us do not produce a single bite of food we eat or a single thread of clothing we wear. 8o we have to have money to buy these things. In the past, most of the people rxUed their

own food, wove their own cloth, made their own clothing. But not 80 today. Accordingly we have to have money to buy these things.

This puts upon us all the terrific pressure of money seeking a pressure even greater than previous generations have known. But let us not get morbid about this matter. There is much righteous wealth in the world. The most religious woman I ever knew was the richest woman I ever knew. Jeseph of Aramithea, rich and ipjluential Jewish prepar

ed the body of Jesus for burial and placed the sacred body In his own tomb.

Neither riches nor poverty make us evil if we can resist the love of riches and rise above the degrAdation of poverty.

By ELMER ROESSNER The sale of Rembrandts "Aristotle Contemplating the Bust of Homer to the New York Metropolitan Museum of Art for $2.3 million Involves some amazing tax angles of interest to the millionaire readers of. this column.

Here is a capsule recap of the basic facts:

Rembrandt van Rijn painted Aristotle in 1653 for Antonio Ruffo. a Sicilian nobleman, for too florin. I7AOO today. It pas.s-ed through many harids and in 1928 Joseph Duveen sold it to Alfred W. Erickson. New York advertising wiz, and his wife for $750,000. After the 1929 crash, the Ericksons sold It back to Duveen for $500.000 and. after regaining. fimncial ascendancy in 19%. the Ericksons bought It back for $590,000. WIDOW HOLDS ARISTOTLE Erickson died that year and ownership of the painting passed to his widow. She died in February, this year. The executors of her estate auctioned the paint

ing and the Metropolitan bought it at the highest price ever paid for a painting, with contributions of trustees and other friends

tax.

However, if the executors want to value the painting at the date of death value, there

M * capital gains tax

Erickson collection brought th^v. and that misht save th^ estate total to 14,679.250. a record for * * ^

a single collection.

With all that money changing hands. It might be expected that the government would dip In for a share.

It wont. In fact, the sale of the painting may cost the government tax money.

A superficial look may indicate a great capital gain since the painting cost $590,000 in 1936 and brought $2.300,000 in 1961.

But the Increase in value prior to Mrs. Ericksons death (or. at the option (tf the executors prior to the first anniversary of her death) isnt taxed by the Federal government. If the executors choose to value Aristotle as of the date of sale for (ftate tax purposes, there wont be any capital gains tax.

MAY MEAN TAX SAVING So thers is do capital gains

money.

The value of the Erickson estate is not known and may not be determined for several years. However, the art alone brought in almost $5 million and it is not unreasonable to suppose that the other property was of equal value.

If we assume the entire estate was worth only $5 million without "Aristotle. then the first $1 mlliton of the Aristotle worth is taxed at 67 per cent; the second $1 million at 70 per cent an4 the last ^00,000 at 73 per cent.

So if the executors elect to value the painting at the date-of-death value, they will pay 25 per cent on any increase In value between the date of death and the salebqt they will avoid pay ing around 70 per cent estate

taxes on such Increase in value. OTHER TAX ANGLES Two other tax beneficences; Because museums are exempt from city sales taxes, the sale avoided a $69,000 city tax.

The wealthy friends of the Metropolitan whs put up the money will all probably get charitable deductions for their gifts. According to "Taxes and Art, a fascinating brochure prepared by Prenticf-Hall for French L Co.. New York, people in the top income bracket can give away dollars at a cost of only 9 cents each.

There will be more about this brochure tomorrow so all of you millionaires reading this better reserve your copy of the paper right away! -

Here Is another interesting calculation: If Rembrandt has Invested his 500 fiortns at 5 per cent interest compounded annually. the total today would be $3 5 millionenough to permit -his heirs to buy Aristotle back' and have more <ihan |l milUoo left overt