Monday, January 1, 1962

Redorders Court Is Widely Noted

Now I Know What Happened to Her

* %

In recent months the recorders court of the city of Greenville has attracted, cgnsidefabie attention in North Carolina and some other states for Its handling of traffic cases.

We have read with interest'a number of editorials from other parts of North Carolina which have commented favorably on the ground rules which Judge Charles Whedbee and Solicitor Eli Bloom have laid down'ior the handling of traffic,cases.

The latest such editorial to come to our attention was the comment of the Charleston (W. Va.) Gazette. We feel the comments of that newspaper on the Greenville city court'Vill be of interest to readers of The Daily Reflector.

' The Charleston Gazette said:

In Greenville (N.C.) traffic officials in cooperation with the municipal judiciary hav.e inaugurated a program which deserves the aUention of all those involved in the business Of ihakTng the public safety-

conscious. "

Any traffic violator summoned to court must

No Clean Page ?or New Year

By LYNN NISBET

NEW YEAR Artists and poets portray the New Year as a naked infant, utterly helpless in a world of problems, but with a expectant hop>eful gleam in his eye.

Or they depict the New Year as a bright new page in the account ledger, un marred by carry-over items from the past with nothing to influence the writing of a record without mistakes.

It might be nice if those concepts were true. They are not. and It may not be entirely bad that there cannot be a complete break and an entirely new -start. Some things we would like to forget. The clean page has some attractions. Many things we cherish in memory and would not renounce if we could.

It would be terrible to start the New Year without friends upon whose friendship we can rely, or writhout beliefs in moral principles which have proven^ their value under severe^tests. The recollection of sorrowful experiences will enable us to avoid the same conditions.

That little naked 1962 who moves onto the stage is not so lonesome orhelpless as the artist would have you believe. He has the benefit of experience attained by his predecessors from 1961 back into the dim ages. Although he is sure to make some mistakes of his own, he is a pretty wise little fellow.

The new ledger page is tot quite clean. There are some carry-over items, but they have been culled* out so that only the credit or debit balance shows. The objective now is to have all the new entries increase' the credit, reduce the debits.

The point Is, there is something there to work on. The new year docs not begin in emptiness but in hope-

U. S. 1 A group of NBC . cameramen have been in Ra-' lelgh for some days shooting scenes to go into a national network telecast entitled U. S. Highway 1: American Profile. Color views were obtained of the captol, the Governors Mansion, other historic old buildings around Raleigh and the modern-^ istic structures at State College and the Fair Grounds.

The selections for pictures emphasize that old building often have attractions beywid any spe-cic historic significance attaching to them. In the period between the Civil War and about 1910 North Blount street was the elite residential section of Raleigh. Many fine old homes still stand, although in some-instances marred by proximity of ultra modem neighbors.

The Governors Mansion still dopiinates North Blount street and retains for it the atmosphere of elegant home living. But adjoining lots are being taken over for State office buildings and apartments. Some of the oldtimers' along the street arc fighting to preserve the'ele

gance of other years in the: homes and yards.

The late Graham Andrews, who owned a handsome home on the street, when he was mayor led a one-man and unsuccessful campaign to have the address of the Governors Mansion officially designated and commonly accepted as 200 North Blount Street. He was too late with his idea. His suggestion was that the White House in Washington was better known as 1600 Pennsylvania' Avenue. and the Mansion here should be designated by street address. That was before the White House, rather than Capitol Hill, had become the actual political capitol of the United States and the-* world.

Now the address of the White House is of no significance. The name is a symbol, not a place. In rect years it has been accepted with equal authority at Warm Springs. Camp David, Gettysburg and Palm Beach-

GRASS ROOTS The Washington Daily News is the latest of several North Carolina newspapers to insist that In revamping or re-writing the Plan of Organization of the Democratic party more consideration should be given to the opinions of the grass roots folks-

A few weeks ago Governor Sanford told a news conference that he was. very happy at the interest being shown in the party reorganization plan, because it indicated that the Democratic party belongs to the people, all the people. Maybe the grass roots have not spoken as loudly as they'may or can, but it is of record that some proposed revisions were abandoned when the precinct workers were heard from. , ,

Nearly all the nomenclature of politics has the tang of the sp. emphasing the rural concept df North America, although the census shows increasing urban population. As-A&r back as Andrew Jackson the common people were identified by coon skin caps. Gene Talmadge in Georgia capitalized on the wool hat boys, and Ken* Scott in North Carolina built his support on the branch head boys.

These- terms, though applied sometimes in ridicule, actually have an honorable connotation. When it comes to town folks the term most often used is ward heeler, of very unsavory copnotation.

The grass roots designation helps some because it Is more generally accepted as mearung the great mass of people, rural and urban, who do not claim special recognition or privilege, but who go about their duties every day with a view to building a better community.

Coonskin caps, wool, hats, and branch head'residence are rather limited. Grass roots folks are all over. They will be heard from, whether asked or not. It will be better for everybody if they are consulted before a new plan is announced.

put in au appearac. He cannot forfeit bond or simply plead guilty, pay fine, and cost and proceed blithely on his way,, In each case the judge hears the evidence th^n finds the defendant guilty or innpcent

If the verdict is guilty, the judge invariably delivers a stern lecture along with the sentence. Also the local press in Greenville is cooperating with the program by printing the names of^those involved and thi^ disposition of their cases. Any teen-ager brought into^ court must bring a parent or guardian to court before the judge will hear the case.

Admittedly, this program has drawbacks. For one, its time-consuming for that individual who heretofore has wiped out a minor offens%by the relatively painless method of mailing a checK to the proper authoritie.s or forfeiting a bond. For another it's humiliating to be hailed into court to listen to, a stuffy old judge give a morality lecture on traffic safety.

But it also should generate more respect for traffic laws in general and safe driving in particulari"

New Pump-Priming Is Unlikely To Be Needed

Last January when President Kennedy took office and began to make recommendations to Congress on changes in the budget prepared by the Eisenhower administration, considerable attention was given to pump-priming recommendations.

This year the Kennedy administration has pre- , pared budget recommendations which will go to Con-gi'ess later this month and early reports indicate the budget will be balanced, but some $3 billion above the one adopted for the current fiscal year.

There is nothing yet to indicate - whether the Kennedy administratiojl in this new^ year will continue to lean tow^ard programs to stimulate the economy as was the case a year ago. Conditions throughout the country have changed sharply in the past year so far as the economic pace is concerned. Whereas the^nation was coming out of a recession in lalter^960 and early 1961* the recovery has been rapid a^^business activi-t.v for the most part has moved to new High ground. It would seem, therefore, that no pump-priming program would be needed in the new budget which will be considered in the next few months.

The economic experts are predicting a bright^ outlook in 1962 with a continuing decline in unemployment, and a continuing increase in production and business activity in every category. Some of the programs urged by the administration last year and approved by Congress have yet to make their full impact felt upon the economy of the nation, and w^hen these come they will "sgrv'e to push the upward economic trend even higher. Further pump-priming would appear both unnecessary and unwise under present circumstances.

If the new budget does contain extensive pump-priming programs, Congress should not hesitate to pare them dowm or remove them entirely from the spending program President Kennedy presents. At a time w'hen the economy of the country appears certain to be headeddo unprecedented heights, there is little need for anti-recessioft programs.

?orecasts For Coming Year

By GEORGE SOKOLSKY

Management Is Changing

Copyright, Features

Syndicate, Inc.

American industry was built by individuals investing their savings in enterprises, nurturing them, occasionally combining with other enterprises, expanding out of earnings, taking out limited profits and putting savings and reserves back into the business. It was a private enterprise, designed to provide a profit but conducted prudently to guard against a risk turning into a failure.

This is the capitalist system-It is often called the profit and loss system. Its essential is that the enterprise is privately-owned and originally was owned by those who managed* it; latterly widely owned by individuals unrelated to management. Its growth depended upon the character. sincerity and ability of those who owned the enterprise. Ownership and management were identical,^ The final responsibility rested in ownership. However, as the corporation developed and as management began to assume the responsibility of ownership, the nature of industrial management changed.

Ownership became diverse and diffuse.r Paid employees, assifn-ed increasing authority, some-%mes in disregard of the law, weakening initiative and absorbing parts of the profits by ex cessive wages, expenses, and other devices to entrench themselves in power.

In recent years, management h * often neglected the principal function of the business which is to earn a profit for the owners, by burying earnings and other increments in what are called acquisitions which is* the increase of an enterprises value by purchasing other enterprises by- the exchange of stock. It is often difficult to ascertain why Company B, obviously profitable, sells itself to another company, sometimes less profitable than Company B.

Often an acquisition is really an exchange of power within an enterprise without disclosing the shift of control. Sometimes the acquisition includes prosperous and unprofitable enterprises, the expectation being that by the acquisition the unprofitable enterprise will be buried. Some-

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By RALPH ROBEY

There must now be literally tens of thousands of organizations and persons Who make forecasts of business for the fol-* lowing year. Most of these already have appeared in one form or another for 4962. And this time there is such agreement among all of them that it is almost disturbing. This is especially true for the first six months of the year. For the second half there is, some disagreement, but even here It is more a matter of shading than of basic'differences-Our own thinking is as follows; '

Gross national product, which is the monetary value of all goods and services produced in the nation, will increase quarter by quarter in 1962 and for the year will average between $560 and $565 billion The recent low of this aggregate was' in the first three months of 1961 at

$101 billion. We do not have the

official figure for the final quarter of this year, but the Administration. is estimating that it will be around $540 billion.

Inventories were liquidated irt the first quarter at -an annual rate of $4 billion. In* the sec

ond three* months there was a sharp turnabout, and since then the accumulation Has been at a constantly increasing rate. Such additions will continue 'at least through the first six mnths of 1962. partly because of the fear of another steel strike. No one knows ^-whether there will be such a strike, but business dare not gamble that there will not be.

Over-all , industrial production, as measured by the Federal Re-.serve Board index, has resumed its upswing and this will continue in a mild way throughout 1962. Currently such production is about 14 percent a.bove 1927 and it will rise, say, a further 7 percent in 19G2. >

Business investment in plant and equipment is slowly increasing, and for 1962 It will be some $38-39 billion. The previous all-time high was a little over $37 bUlion.

Personal income will continue to rise and by the end of the year it should be above $450 billion, or some $24 billion higher than at present. This, plus an expansion of installment credit, will assure a moderate increase in retail trade.

Employment will advance to new high levels and unemployment will drop but not by enough to eliminate this prol> lem. As compared to our present civilian labor force, we now

hav.e 6.J percent unemployed-

This will decline to 5 or 5.5 percent. Wages, of course, will continue to rise.

Corporate profits in the aggregate will continue to advance through probably the second quarter and then tend to level off. Currently they are about $47 billion pre-tax. and they will rise another five or six billion. But it must be remembered that the federal government takes Just about one-half of this amount in taxes*

The public appears to approve of the 1962 model automobiles and there is much reason to anticipate sales of about 6.5 rrUl-lion cars- This does not include imports.

Housing starts, still show no real zip- In 1961 we shall have about 1,275,000 private starts, and in 1962 the figure will be around 1,325,000. Construction as a whole is to. be up some 7 percent, according to the F. W. Dodge Company.

Federal government spending will continue to rise. For the fiscal year ending next June 30 the outlay is estimated at $89 billion. No one yet knows what the figure will be for the fol-'lowing year, but $92 billion is commonly mentioned.

Other Editors Saying... Offering Ideas For A

StrengtK For Today

By EARL L. DOUGLAS.S

WE FACE THE NEW YEAR

The Bible is the dLsclosure to man of Gods law and purpose. We would know something- about an infinite creator even if we did not have the Bible, but we would not know about God, the loving Heavenly Father.

The Bible from beginning ' lo end contains patterns by which we are tp be guided In matters of belief, faith, and conduct. It Is signiflq^Bmt that in the first four woFds of the Bible God sets iorth one of the"^ most imporlant of these patterns- The Bible begins with the words, In the beginning Gqd.

On this first day of the /New Year we are to remember that Gods 'most imperative requirement of us is that we put Him

first. He tolerates our rebellion. He forgives our many sins, but what He will not endure Ls having anything or any person set before Him.

In the next to the last chapter of the Bible occur the words Behold, I make all -things new Is this going to be truly a new year for usa year of renewal. of opening prospects, of objectives achieved, of triumph? Only if we adapt our lives to the patteras laid down by God Himself. And the first of-these patterns is, In the beginning. C?od. .

Put Him first in life and keep ,Him thpre. Then will life indeed be new. It will be renewed. It will be filled with trlumph^or the power of the Omnlpote.nt will be behind all we dp, and think, and strive to achieve.

(Goldsboro News-Argus)

A plan in effect for the Greenville rescue truck operation is one worthy of consideration for adoption by all Rescue Squads.

Actually the idea would not be adopted by the rescue- teams and management, but would be up to the courts and to the public conscience.

A year or so ago, Greenville Rescue answered a call to a wreck. There were injuries and apparently there had been excessive drinking .among those injured. One became belligerent and attempted to assault a Rescue member.

When this information carne out during trial in Recorders Court of the cases growing out of the wreck in Greenville, the judge took note of the attack on the* Rescue member. He ordered that court costs include a sum designated to go to Resn cue.

Since then it has become general practice for Greenvle Recorders court to designate sums on costs to go to Rescue. Usually the amount ordered is $5 to $7.50.

Roy Hardee of Greenville., who has served as president of the Rescue Squad organization in the state, says that he knows of no other city which has adopted the Greenville cost plan. Probably when the routine becomes knowledge over the state

3usiness

By ELMER ROESvSNER The calendar will create many problems for businessmen in 1962. Six weeks will be split by holidays, the traditional summer vacation period will be four days shorter than in 1961 and Easter falls so late it will upset fashion sales. Scarcely offsetting this will be the fact that the Thanks5iV^ng-to-Christmas shopping spell will be one day long- ^ er than in 1961.

Washingtons Birthday falLs on a Thursday; Memorial Day on a Wednesday; July 4 on a Wednesday: Columbus Day- on a* Friday; Thanksgiving, as always. on a Thursday, and Christmas on a Tuesday. Split weeks usually hurt retail sales.

Lincolns Birthday falls on a Monday and this day and Columbus Day have become great sales days in many .localities, which will offset some of the losses of the other split weeks. Veterans Day, Nov. 11-, falls'on a Sunday. . ,

Lent'begins March 7 and Easter -Day will be April 22. Th latest Easter can come Is April 25. Easter was April 2 in 1961.

other cities and counties will adopt it.-Hardee says that approximately $500 to $710 a year c^n be anticipated for Rescue expei^es as a result-of the costs policy.

Actually we see no reason why Rescue should not make a reasonable charge for this service. Trucks .wear* out, equipment wears out. New materials must be bought.

The Rescue mambers perform a labor of loVf. as a public service. They would be the la^ to stand for commercialization . of the Good Samitarian effo Be it said to the credit of ma of those who know the helpi, hand of Rescue in Goldsboro or in the scores of cities where this service is offered, that many make a donation to the Rescue Squad,

Even those who make a donation, we think, would feel on surer grounds if they had some yardstick for determining what would be a fair and reasonable contribution. Say so much ppr mile.

Rescue Squads everywhere must go back to the public for new donations periodically. If the operation could include the Greenville costs, idea, plus some suggestion as to fair gifts for answering calls according to distance,, such steps would give the Samaritans a stable source of financing.

times, all these combinations are managed for a tax advantage, the management of the two companies taking advantage of the ownership which only reads of the astonishing rise of prospective annual income.

The emphasis on management is unsound and gives strength to those who should be subordinate employees. The emphasis on management has grown beyond reason and tolerance. Management only, is legally responsible for the affairs of a company to the extent that it serves on the Board of Directors which represent ownership.

The trick devised here is the appointment of an Executive Committee which usually consists of senior officers of management who meet between Directors meetings and act for them. The Executive Committee often usurps the authority of the Board of Directors but none of its responsibilities. Theoretically, the Executive Committee, meets because it is smaller and more mobile than the Board of Directors and can put over devices which the Board would resist, but which a Board can never ratify because steps have been taken and commitments undertaken from which withdrawal would be costly and, in fact, inappropriate. Thus management uses the Executive Committee to turn a Board of Directors into drones or into a crony Board.

Thus, the Executive Committee hurls a report on the table which should take many hours to study. Somebody moves that the report is approved unread, unstudied, unscrutinized. The result is hurried and unjustified action. \

The euse for much of this is bignW the lust for bigness, the sh6w-offness of bigness. The worthiness of an enterprise is to be measured by its so-called size or growth. Profits prove competent man-agement and prudent operations.

When management absorbs too great a share of the earnings in disregard of the interests of ownership and the reserves of the enterprise; the business is badly managed. Those engaged in acquisitions have to be watched closely because this word, acquisitions, is a blanket for all sorts of queer practices, including the shifting of the control-power of an enterprise without regard to the protection of ownership. In fact, ownership may find itself out of control without knowing what has happened for some. time. The reason for this is that in a company with a large and diffuse ownership. management can move swiftly to concentrate powei through small devices and when* the Board wakes up to what has (Continued on Page 6)

By ROGER BABSON

1. 1 am hc^eful for 1962; it should be a better year for my reader than . 1961. Industrial production will exceed that of

1961.

2. will be neither a nu

clear war nor total disarmament in 1962. Considerable progress my be ma>ie toward a ban on atomic weapons.

8. Some thirty stocks may reach an average of 1000 during

1962, although these will not ne-' cessarily be the thirty Dow*

Jones stocks.

4^^ Retail trade will make new records during 1962. Increased newimaper advertising, expeclal-ly In c(dors. will be a great boon to merchwidlslng.

5. Commodity prices will act erratic during 1962. Agricultural prices will be held up by legislation. but many metals wiU sell for less.

6. The official cost - of living figure will rise slightly in 1962, but there may be a scandal in Washington over how this figure is calculated or adjusted. The real Increase in the cost-of-living will be due to increased wages demanded.

7. The only certain shortagca during 1962 will > be in land suitable for parking places and waterfront property readily accessible to building lots; also for automobile graveyards near cities which have been zoned.

8. TTie building of shelters will look silly before the end of 1962.

.Xlertalnly the Federal Government will not underwrite the building of private shelters for individual families.

9. Good real estate must rise in price as the population increases. Elementary mathematics determines the price of suburban real estate. This is notwithstanding the claim" of the space companies which are said to be interested in selling rights on the moon. There probably are crazier speculations.

10. While the land on which your house now stands should increase in vailue during 1962, the building itself' depreciates from the moment when it is first occupied. A possible exception would be certain very attractive ranch houses painted in color.

11. Automobile production will be the most Impoi^nt statistical indicator during 1962. This applied to both the number of automobiles and their sales value. We now have no reliable figures for the latter.

12. We will gradually approach an average of two cars for every family. The life of automobiles should gradually increase. The percentage of automobiles annually destroyed will decrease In 1962.

13. Automobiles and gasoline will we, increasingly, sources for raising money by taxation. These means, will be extended to include an additional assessment on the manufacturers of automobiles.

14. Taxes, as a whole, will continue to increase in 1962 for every family. Business net taxes. however, will decrease In 1962, through the granting of depreciation refunds which can be done by Executive order. The manufacturer may greatly increase his deductions for past investments and new machinery, plant, and equipment. Douglas Dillon feels that such tax reductions will increase the purchase of new equipment, develop greater efficiency, and result in a net improvement in the employment situation. This is good news for 1962.

15. Speculation in real estate and securities will be active during 1962: but good childrep will gradually be recognized as the best investment. Young people will be married earlier and will want to have large families.

16. Public education will gradually be reorganized during the years ahead. Schoolhouses * will be built as places to park the kids while the parents are at work. New schoolhouses will be built so as not to be over one story high, with lots of sunshine.

17. Owing to the lack of airport facilities and to inadequate equipment, there will be increasing airplane accidenta during 1962.

18. With all the above changes. plus increased public improvements and longer vacation periods, families must save somehow and cut somewhere. I

(Continued on Page 5)

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62 Calendar

Experience in recent years shows that very earlj or very late Easters hurt apparel sales, if very early, inclement weather retards sales; if very late, many shopi>ers are most interested in summer fashions. The spring fashion .sale.s thereby suffer.

With Thanksgiving on November 22, there are 27 shopping days until Christmas, compared with 26 in 1961. However, Monday, December 24 is experience of recent years Is repeatedwill be a dull day, with only last-minute sales. Many persoris will take off from* Friday, December 21 to Wednesday, December 26.

With July 4 on a Wednesday and Labor Day on Monday, September 3, the traditional summer vacation season, Including the two holidays,'.will be 62 days. In 1961. the season got under way Jviqe 30 and went* through September 5. ,Thab meant skipping .work oh Monday. July 3. But to get an early start In 1962 would require skipping both July 2 and 5. The 1961 season was 66 da;).

FOUR FVE-FRIDAY MONTHS

There wl be four months with five Fridays; March, June, August and November. Friday has become the traditional payday of those paid weekly, and the months with five paydays yield what is often considered found -money. Sales in the last week of these months are likely to rise, especially in,November, when the fifth payday comes within the Christmas shopping season.

Passover begins at sundown, April 18, a Wednesday, Rosh Hashana and the Jewish year 5723 begins at.sundown Friday, September 28. Yom Kippuh begins at sundown Sunday, Octe-ber 7, and Hannukkah, begins at sundown Friday, December 21.

uttered the . commercial 171 times in May.

The Federal Communications Commission was not concerned with the monotony, but with the fact that the law prohibits commercials in which the sponsor is not identified. The station, which said it did not know of the law, has 30 days in which to make a fwmal reply.

THREE-WORD BROADCAST MAY COST $5,000 Radio station KDAY, Santa Monica, Calif., has been warned that it is liable for a $5.000 penalty for broadcasting a three-second three-word commercial, remember June 25." The date was that of the IntroductioT). of a new product, and the station

INDIA URGED TO STERILIZE LOW-PRODUCING COWS

Sterilization of cows that produce little milk has been proposed by an Indian professor, the_^ Foreign Agricultural Service re- ports.

Spaying cows can convert them into draft animals, he said, at a loss of insignificant amounts of milk. The cattle and buffalo of India, protected by religious rules, are a serious economic drain, since they consume forage on land that could produce crops, they produce little milk, and their meat is forbidden to believers.

Spayed cowe become more masculine and work as well as oxen, the professor found.