Monday^ January 29, 1962

Its Known as_a Jack Paar Contract

Montanas Loss Emphasizes Need

Citizens of Montana, shocked by the death of their governor in a plane crash last week, probably realize today the importance of having a well qualified person in the second highest office of the state to move up to the post of chief executive.

Until recent years the post of second place in "state and federal governments were looked upon as relatively unimportant positions in spite of the high title attached to them, and in spite of the possibility that the man who occupied the place might move into the top governmental position.

It has been only in recent years that the office of vice president of the United States has been regarded seriously with the attitude that the man who

iVIixed Reaction

io trade rair

By LYNN NISBET

TRADE PAIR Announcement that a second North Carolina Trade Pair will be staged in Charlotte during the spring ol 1963 met a mixed reception In the Queen City. When tentaUve decision was reacia to have another lair next year Invitation was published for any community desiring to play host to let that fact be known. However, it was conceded that Charlotte perhaps was the only place with adequate facilities to handle It.

Por favoritism for harlotte at site of the next fair and the reluctance on part of some Charlotte Interests to Join in the Invitation, stem from experiences at the first exposition last falL

This first venture was amazingly successful. It was thrown together on short notice and put on the road by the enthusiastic cooperation of all local business intertsflnanclally and otherwise. More manufacturers bought exhibit space, more buyers came from all over the world to wdCT mer-chandiae, and more public visitors came Just to sec the show than anybody had hoped in advance. To achieve this success the people of Charlotte put up some $M),000.

After the exposition the State officials were happily boasting of the great success of the venture, and announced that it yielded a profit of some $97,000. What the Charlotte folks now want to know is whether this profit will be used for financing the 1963 fair, or if the city will be asked again to put up advance money. One Charlotte man warned that collectors would have e hard time on such a mission. Some Charlotte folks also confess the fear the next fair might not be as flowing success as the first one, and that would not "look good for their city.

also hard on the big shot official being interviewed by the reporters.

New's conferences at the White House and in the office of the North Carolina governor are much alike. There are more reporters at Washington and matters disciissed have w'orldwide interest of state scope interest. The same responsibility for in depth follow-up by writing repcwrters exists here. Radio and TV can present only what is there right at the time, wi'' no opportunity for elaboration or explanaticm. The written story can interpolate salient facts with bearing on the situation and so make the story more meaningful. It is for that reason that TV cannot take the place of newspapers in the field of mass public communications. although in some instances it has bumped the papers from first place in timing of news releases.

occupies the position may be called on at any moment to assume the duties of the presidency. In the past decade considerable emphasis has been plced on the vice presidency, and greater care, in our opinion, has been given to the selection of the nominees for this office.

To a lesser degree something of the same attitude has been reflected with regard to the lieutenant governors of our states. In the case of North Carolina, we were shocked into realization of the impoftance of the lieutenant governors post by the sudden death of the tate Gov. Umstead. Fortunately North Carolina had'*f the lieutenant governor at the time a man who was Jully capable of executing the duties of the governor.

The people of Montana today perhaps realize the importance of careful selection of the man who holds the post of lieutenant governor as did the people of North Carolina a decade ago.

More than at any other period of history the chief executives of our states today are men on the move. They gravel extensively, usually on tight schedules, and during the course of a year log many hundreds of hours in airplanes. An accident such as the one which snuffed out the life of the governor of Montana could likewise snatch from the public scene the governor of almost any state.

With the complexities of government today, it is not sufficient merely to have a good man at the top. He must be backed up by a good man in the number two spot who can assume the top position if fate so de(?rees.

Far Better To Delay

I

Than To Take Chances

TRIBUTEA reporter asked Governor Sanford at his latest news conference what he thought about the announcement that John W. Umstead would come back to the Legislature from Orange county for his 14th tour of duty In that body. The Govemw replied that he is very happy about it, and added that in his opinion "John Umstead is one of the outstanding public servants in the history of the state. During two terms in the Senate and eleven in the House since 1931 Umstead has been a leader for improvement of public schools, and since 1940 has "carried the ball" for adequate mental hospital faculties in the state.

IN DEPTHLincoln White, the news and public relations man for the State Department In Washington, talked to the North Carolina Press Institute at Chapel Hill the ether day. The newspaper folks were interested in his explanation of how news ccmferences are set up in the White House and the State Department. They were especially Interested in what he said about the influence of television coverage of the conference on the Job of the writing reporters. Contrary to popular belief the TV makes the writing Job much more' difficult.

That is because the writer cannot Just list a few pertinent Items of fact announced by the President or Secretary, because TV has already reported tiiem The writer must dig into the background of the subject to discover and tell the public why situations developed and also attempt to forecast what the effect wUl be in the near future. Television is

HAMS North Carolinians have known for a long time that this state produces the best country hams to be found anywhere. Now comes State College with an officially sponsored news story to the effect that North Carolina has grown into the leading country ham producing state in the nation during the past five years. The business has growm from an estimated gross of $10 million in 1956 to more than $20 million in 1961at wholesale rates.

Of course that country ham talk covers a multitude of sins and a wide variety of products. State College tells of one firm turning out 200.000 cured country hams a year. That Just dont make sense in the meaning of country cured ham usually appliedthat is the hind leg of hog hung up in a smoke house for a period of months.

And you can get an argumentmaybe a small wager almost anywhere and any time in the state about the relative superior qualities of a ham from a hog fed out on peanuts, or corn, or forest ma.ss (acrons). Some are better than others, and the way they are fed and cured makes a lot of difference; but it is still true that a North Carolina ham makes good eating.

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Disappointment is the word which probably best describes American reaction to the postponement Saturday of the scheduled orbital flight of astronaut John H. Glenn. But while most Americans were disappointed that the flight had to be delayed, they also found consolation in the fact that the weathernot mechanical difficultiescaused the delay.

McNftuolit

By GEORGE SOKOLSKY

Wielund And The Past

With the flight re-scheduled now for Thursday morning, there is already building up the same anticipation and excitement which was evident last week on the eve of the proposed launching. The scientists in charge of the flight appear to have every confidence it will be successful. Astronaut Glenn, we are told, was not shaken by the long hours he spent Saturday in his capsule awaiting lift-off, only to have the historical flight called off because of poor weather conditions over Cape Canaveral. '

In spite of the pressure which is building up for a successful flight on Thursday, those in charge of the flight should not allow the pressure to cause them to unwisely take chances with the flight. It would be far better for the United States if the flight were delayed a second time, than to carry it out under conditions which may lessen the odds for its successful completion.

The time element is important in this historical scientific undertaking by the United States, but of even greater importance is its ultimate success once the firing button pushed to project a man into orbit around the earth.

Copyright, 1962, King Features Syndicate, Inc.

It Is difficult to understand President Kennedys defense of William Arthur Wieland at his press conference last Wednesday. It is more difficult to understand why the Eastland Committee does not make public the vast amount of unfavorable material it has in its possession on the subject of Wielands activities. This Congressional Committee has held long hearings concerning Wieland and Castro In Executive Session. It Is the duty and obligation of the Committee to make its data available to Congress and the public. Had such data been disclosed, the controversy between the President and Mrs. McLendon at the Wednesday Press Conference could not have taken place. The Questi(Hi that Mrs. McClendon raised is whether two security risks are actually employed by the State Department. The argument hinged over the term, "security risks. Public opinion has long decided that

William Arthur Wieland Is a security risk. The testimony of Ambassadors Arthur Gardner and Earl E. T. Smith clearly substantiate this.

On September 19. 1960,1 wrote an article in which I asked: Who in the United States helped Castro take Cuba? On the following day, I continued the subject. This was not the earliest discussion of Wielands role In Cuba in this column. Smith had appeared before the Eastland Committee and about this I wrote:

"Smiths Testimony establlsh-the point beyond question that it was the United States through the State Department that brought Castro to power. Time after time, he was questioned with regard to that and always it was clear that Assistant Secretary of State Roy Ru-bottom and William A. Wieland, the deskman in charge of Cuba. preferred Castro.

"Regarding Castro, Ambassador Smith testified:

Castro was a revolutionary

ed

and a terrorist.

" From the time that he was a university student, he was a guntoter. I was informed by a diplomat that he had killed one nun and two priests in Bogota during the uprising in 1948.

On December 21, 1960, I began telling the story of William Arthur Montenegro which was a pseudonym for Wieland. I wrote:

William Arthur Montenegro under another .name wrote for the Havana Post from 1933 to 1937. That is a good place to start If anyone needs a tip. There are articles In that newspaper which were ^ntributed

Curious Budge

Other Editors Saying... obs And Education

Balance Fiaures

(Greensboro Daily News)

By RALPH ROBEY

As repeatedly promised. President Kennedy has submitted a balanced budget for the fiscal year starting next July 1. But it is a most curious balance.

Expenditures are projected at $92.5 billion, which is an increase of $11 billion over 1961, and over ^ billion above the amount estimated for this fiscal year. Almost every major category of spending shows a rise.

The balance is obtained by estimating government receipts at $93 billion, and that is fantastically high. It Is $11 billion above what is expected for this year.

Back of these official expectations is an estimate that corporate profits in this calendar year will be $56.5 billion. That, of course, is pre-tax profits. Most competent private economists predict that pre-tax corporate profits this year will be not above $53 billion, and many think they may be even lower. It is generally believed, too. that the peak of profits will be in the second quarter, and certainly not later than the July to September period. If these private estimates are correct, the Presidents prediction of $26.6 billion revenue from corporation income taxes will i)e one or two billion dollars too high.

The other large increa.se in government recoints is to come from a major rise in per.sonal ircome taxes. This is based upon a prediction that personal Income in (Ms

w'ill b? $448 billion Cn this Item private economis ,s anticipate a growth quarter bv quarter, but for the year as a whole it is believed the total will f>e at least $5 billion below the Presidents figure. However if per.'.onal income continues to grow in the first half of 1963, a.s it shotild. the official e.sti-mate of $49.3 billion from individual Income taxes may not ,he as wide of the mark as the prediction on revenues fmm the rorporate income tax. The difference between the two in

this respect is that corporations pay a tax for the previous year, while individuals pay currently on their income.

An increase is anticipated in the other divisions of governmental income, but in each instance it is relatively insignificant.

These huge totals for corporate profits and personal income are based upon a predicted gross national product of $570 billion for this calendar year. Our personal estimate for gross national product for this year is $560-565 billion, and we think that may be a bit high. But if we happen to be correct, it certainly will be impossible to have corporate profits of $56.5 billion and personal income of $448 billion.

On taxation there again is a recommendation of an 8 percent tax credit for Investment In depreciable equipment. The loss of revenue caused by this is to be offset by enactment of the same suggestions that were made last >ear withholding on dividend and interest income; repeal of the present dividend credit provisions: statutory provisions covering business expenses for entertainnient and other expense account items; elimination of tax deferal privileges on foreign business income. except in less-developed countries; and so forth.

It also Is recommended that the 1(J percent tax on transportation of persons be repealed in so far as railroads are concerned as of July 1. 1962. Also recommended is enactment of "new systems of user chargo.s for commercial and general aviation and for transportation on inland waterways." but no details on this are given.

A recommendation for a lifting of post?l rates sufficient to put the Pos Office Department or ? sMf-.supporting ba.sls al-o is made.

Now. does this budget makes sense? It ma''e.s .sense only if on ass-ms fairly substant'nl inflation W'lh1n the next elgh-ti'cn months.

Figures compiled by the University of North Carolina Placement Service office show that while demands are greater upon educational institutions there is also increasing demand for the services and knowledge of their graduates.

This latter demand is all the more significant in that employment of college graduates gained even when there was disturbing unemplosrment nationally.

Understanding of one of these factors will probably go far toward explaining the other. Many older w'orkers are retiring. Jobs for unskilled or even semi-skilled workers are decreasing. Job requirements and responsibilities are greater. The new jobs that are opening up require a minimum of a high school education. In many instances, these requirements rise to the college and even postgraduate level. Jobs of the automation, the jet, the atomic and the space age are not for the ignorant.

These hard facts must be realized as we overhaul our

attitudes, our curricula and our educational structure. They must affect young peoples as well as parents and educators attitudes. Going to college nowadays Ls not easy; young people who are assured entry must have shown their ability, their earnestness and their scholarship back in high school, for here are made the records which count for much as college admissions officers seek to screen the mounting applications, far more than the colleges can accept, which pour in upon them.

Borne in upon the public mind too should be realization that the states and the nations boys and girls who qualify for and desire a college education should not be priced out of it, that education pays rich dividends in job opportunities, living standards and tax resources and that ignorance not only means unemployment but piles up social problems and the burden of dealing with them.

Colleges and universities are costly to be sure. But, after all, theres nothing like them to strengthen our economy or make the standards which they set self-perpetuating.

Unions !Role In

t inance

By ROGER BABSON

by such a person.

"The State Department has a technique for covering up and for evading scandals. When a State Department official goes wrong or is caught with bloody hands, the trick Is to send him to other parts qf the world, far from news centers until those who are Interested forget about him, get interested in something else, or dies. Then the career official who went awry may return to Washington.

There is no need to go further in this material. It has been available to the State Department since about 1959. Despite that, Wieland was promoted from a Foreign Officer 2 to a Foreign Officer 1. This promotion has been embarrassing to the State Department which Is not accustomed to seeing Federal Officers 1 walking about lobbies of the State Department doing nothing.

The plan then was to send Wieland to Zurich as a Consular Officer. This the President undoubtedly stopped because this involved in effect an investigation of himself.

The Wieland situation is now out in the open. The Eastland Committee has all the data on Wieland and why it has not printed the hearings and made them public, I do now know. But there can be no doubt but that the evidence, if brought before a court, would be very embarrassing to all parties. At least three former Ambassadors would have to testify against Wieland or perjure themselves because they have already testified before the Congressional Committee.

It is unfortunate that the President permitted himself to lose his temper over this issue. Either the Wieland testimony before the Eastland Committee should be made public (Continued on Page 6)

BABSON PARK. Maas. One of the Ug land (Jevelopmuits near Lake Wales, Florida la the Indian Lake Estates, which waa started by Lecm A(dcerman. It Included 7,000 acres with hard roads, 6,500 residential lots, and a beautiful waterfront.

HISTORY OF INDIAN LAKE ESTATES

The original promoter bit off more than he could chew and either sold out to or went into partnership with an Alaskan Company which was to furnish the mcxiey to complete the sewerage, golf links, club house, etc. Storms and hlgl^ water discouraged this new group. They turned to the Teamsters Union for money, by giving the union the blanket mortgage, subject in part to other mortgages, on all the property -that was not owned free and clear by those who had already built homes or bought lots. This probably means that Indian Lake Estates will become the property of the Teamsters Union.

It is said that Mr. Hoffa has bought several hotels and other property in Key West and elsewhere in Florida, as well as stocks and bonds, which he can sell at any time. Mr. Hoffa, however. has another string to his bow: If he doesnt sell the Florida property, he can use it for union members who have reached retirement age. Thus, Florida Is going through a real estate cycle. First, it was the home of native pers(Mis, especially from the Central West, began to retire in Florida; then followed the very rich who built up Miami and the Gold Coast; and now Florida Is lo(ridng to the Labor Unions for its bankers!

ERA OF PRIVATE BANKING, TRUSTS. AND INSURANCE COMPANIES The big men of Wall Street were originally such men as Daniel Drew, Jim Fisk, and Jay Gould, who played with the stocks of the leading railroads of that day. There was then no Interstate Commerce Commission, or State Railroad Commission, or Securities and Exchange Commission. It was free for all untU Mr. J. P. Morgan came into the picture and brought order out of chaos. Mr. Morgan was a very wonderful man. After he had accumulated money for himself, he assumed control of the Investment situation in general. Those who followed his order and generalship usually prospered; those who did not often fell Into bankruptcy.

The second era was that of trusts, organized by certain famous lawyers under the laws of Delaware. These were the beginning of what are now known as holding companies but they were unsupervised. Among the most prominent were Have-meyer (sugar), Harriman (railroads), Rockefeller (oils), and Duke (tobacco). Following these, the great life insurance companies which had money rolling in every month and "unsupervised bankers became powerful.

ERA OF MUTUAL FUNDS

The third great era of combining and accumulating large aggregates of capital. In which the small Investor could buy shares, was that of the Mutual Funds. These have grown greatly during the past few years since they have been sponsored by many of the best New York Stock Exchange houses which send salesmen out all over the country. Before the Mutual Funds became popular, the stock exchange houses could not afford to do this as their commissions were only a fraction of one percent. With Mutual Funds, however, they allowed commissions of around five percent. These Funds now control $24,-(X)0.000,(X)0 in stocks and bonds. As their salesmen sell Mutual shares, the Mutual companies buy stock to protect the purchases. As the Mutual company stockholders sell, the Mutual companies must sell stocks they are holding. During 1961 Mutual companies were obliged to redeem 4 shares for every 10 sold.

(Continued on Page 6)

LXDense. Accounts And Taxes

Public 1

orum

To the Editor.

We the undersigned wish to thank all the folks of Greenville for their kind thoughts and expression at the loss of our 'dear son. Louis Jr. He liked Greenville end the people there, gincerely,

Mrs, Louis Schelper Jr. and family.

Mil and Mrs.*. Louis Schciper Sr. and sister Louise, and brolber.*;, Clarence. Wilbur and Donald.

Southern Pines, N. C.

By EIJVIER ROESSNER

Many corporations are secretly hoping the House Ways and Means Committee will come up with a tough bill denying tax deduction for all money spent on business entertainment.

Most are keeping fairly quiet. To come out openly for such a law would offend some of their best customers.

But a ban on all deductions would enable them to get out of the practice of entertaining customers. They'd save more on net profits than they w'ould in tax deductions.

As the law stands today, companies can deduct spending in entertainment of cus- tomens and prospects as long a.s they are "ordinary and ne-cts.sary expenses paid. . .in carrying on any trade or business."

Thus companies can buy coc'ctalls. hmcheons. theater and fiyht tickets, keep up yachts and susiport club members in the vague hope that this will make .sales.

CHANGES ASKED

President Kennedy last year a.skcd Congrc.s.s for an amendment to eliminate dofluction.s for luxury entertainment items. Such a change would pick up

$250 million a year in taxes, he said.

The Ways and M^s Committee has been wrestling with the problem ever since. A current proposal calls for allowing companies to deduct half the cost of entertainment, but only to the extent that the company could establish the spending was directly related to the production of business, and not simply generating good will.

However, many compartes would prefer no loaf at all to this half. In fact, no loaf

would yield more profits.

Take the Whopper Corp.. and its customer from out of

town. Gus Geevem.

When Gus comes into town now, he expects the Whopper executives to entertain him

to no end. He expects tickets to all the best shows, dinner at the fanciest places, and perhaps an invitation and a plane ticket for a week at the Whopper Corp. Lodge in the Bahamas.

HEAVY DRAIN

If the cofnpany hints that its outlays are out of line, Gus will .say. "Its only tax money anyhow. Lets live it up.

So Whopper pomes through because if i* rinesn't it /Wlll

lose a customer. The amount spent, as Gus said, is deductible. But Whopper would rather have the cash instead of the deduction which, after all, can only be about half the cash.

And if someone suggests to Gus that the .money Whopper is spending on him will be figured into the price Whopper is charging him for its products, he shrugs. Im still ahead. Now I have all this fun for cash before taxes. If I spent the money on myself, it would be cash after taxes.

DOWN THE DRAIN

But many companies are forced to entertain customers without hope of laying off the costs. Some New York companies maintain small departments Just to arrange tickets and entertainment for * VICs (very important customers). They include specialists in getting tickets for sold-out shows, in getting rooms in booked-up hotels, and in getting ringside tables in top nightclubs.

The money spent in maintaining these departments, and the money spent for this entertainment. is now deductible. But it is also lost to the companies. Furthermore, they have lost fuvm ** ihir ton talent in

maintaining these meretricious activities.

Many of these companies would not be unhappy if Congress changed the law so that they could aay to free-loading customers, You know. Congress practically wiped out our expense accounts. But why dcHit you and your wife come around the comer and have a cup of coffee and a dougimut with us?

SHORT ft SIGNIFICANT BITS OF BUSINESS NEWS Hong Kong, not nonxially a market for United States com, has ordered 1,(X)0 tons fDr delivery in January and Febmary. Food-short mainland China may be unable to siqiply the city. . .Thirteen successive annual Census surveys show that one-fifth of the American population moves every year. . . Thailand has introduused its first domestic fllter-ttp cigarette, the Krong Thlp, at 29 cents a package of 20. Kmng Thip means City of Angels, which Is the true name of Bangkok, the* capital, and reminds one of Los Angeles, which l.s short for Ciudad de Nuestra Seora, La Regina de Los Angeles. What you dont learn herel