Monday, March 19, 1962

Undeiscorng Long Delgy By CB

The Big Difference

in making concrete progress, the more detrimental the situation becomes to the future development of the area. >

The Civil Aeronautics Board should end its l-ready unreasonable delay by ruling as quickly as possible on the Eastern Carolina recommendations.

Reports late last week that the Civil Aeronautics Board was ready to announce its long-delayed decision on charges in commercial a\r service in Eastern North Carolina proved unfounded. The reports did, however, seiwe to emphasize the extremely long delay in the CABs handing down a decision on the Eastern Carolina matters pending before it.

It was a year ago last Wednesday that the CAB TTt^

hearing examiner officially made his recommenda- WXiVAiA L A VAWWO ^ kr

tions regarding commercial air service in this section _ _

of North Carolina. At that time it was estimated I Q l-/lSClDDtlIltlIlIlt that the CABs decision on those recommeni|ations sr

would be forthcoming within 60 to 90 days.

For more than a year, now, this part of the stale has been patiently waiting the CAB either to confirm, modify or reject the recommendations of its examiner. So far the waiting has been in vain.

And during the period progress toward better commercial air serviceso greatly needed in this section of North Carolina^has been at a standstill.

Until the CAB makes known its ruling on the recommendations the area as a whole and its individual communities dont know which way to move in order to improve their commercial air service, or their facilities for handling air service.

We recognize that the CAB has many pressing matters which command its attention. In the overall picture of the matters it must consider and rule on, the recommendations concerning Eastern North Carolina may appear to it of relative minor importance. To this section of North Carolina and its peopl^ however, a ruling on the examiners recommendations are of utmost importance.

The section recognizes the urgency of moving forward to develop in a realistic manner better commercial air service to meet its present and future needs. State officials of North Carolina, past and present, have likewise recognized this need and have urged that steps be taken to meet it. In spite of these efforts, the matter has been in the CAB bottleneck for more than a year.

Better air service is vital.to the future of this area of North Carolina, and the longer the delay

.aws Affectina

Donald K. Slayton has come face to face with what is probably the most difficult of all situations for the seven members of the Mercury astronaut team: being scratched from the pilots slot for a space flight.

Through their long period of training, these astronauts have learned that they face many hazards. The possibility that they even faced death seemed not to dim their desire to break lodse from the pull of gravity and be among the first men to face the challenges of outer space. For Col. Slayton, it seemed his chance had come, for he \vas scheduled to be the next astronaut to slip into the space; capsule just before lift-off time. The next ride was to be his.

Now the dream has suddenly be shattered by what an Air Force medical board termed an erratic heart rate that caused them to advise against his attempting a space mission.

In time, perhaps. Col. Slayton may get another opportunity to fulfill what is probabl>^^^s greatest ambition. For now. however, the challenge he faces meeting this dii . nnointment is probably the greatest faced by any oi the spacemen.

Oata Reflecting anuary Decline

ne i ounsts

By BILL CROW'ELL Department of Motor Vehicles Guest Writer

Knowing Lynns interest in travel and tourism, perhaps its not inappropriate to mention here in the guest spot that vacationers this season can dam well run afoul of more than the traffic laws.

I have in mind some recent Intelligence released by the American As.sociation of Motor Vehicle Administrators. It points out some rather unusual, shall we say. provisions of the law In various states which might affect touring Tar Heels.

Like maybe you plan to \1sit Connecticut. Fine, but don't bring a wild rabbit with you and set the creature loose. Its likely to cost you a $100 fine. And if you are driving near Delaware, dont cross over the line with a load of garbage. Of course, if you've got a permit, It's okay.

Watch it in Arkansas if your engine conl^ out or you have a sudden flat. Cussin won't help. Fact of the matter is cursing in the presence of ladies there is punishable by a $200 fine and maybe six months In the pokey. Up in Michigan its illegal (and dangerous) to speak insultingly to a woman.

If theres a teen ager along In your group and you are in Indiana, dont let him or her smoke. Juvenile smoking is more than a Mom and Dad problem there. Authorities don't even allow youngsters under 21 to possess much less puff cigarettes. And In Maryland, keep your slingshot out in the open it's Illegal to conceal one.

Back in Arkansas again, youll want to know that it's forbidden to drive blindfolded cattle down the highway. So If your vacation plans call for driving a feW'

head of blindfolded cattle down the road dont do it near Little Rock.

In Maine don't ride down the highway with a naked scjthe, sharpened and hung in a snatch.

Also in Maine you should never encourage mutiny among the crew of any vessel tied up along the coastline. It should be noted, too. that its forbidden to incite Indians in Michigan to violate a treaty.

Care must be taken in Illinois not to sell a book with the title page removed. That is, of course, if you had any serious intentions of selling a book while journeying in Illinois.

And dont carry a red flag in Iowa. Dont carry' either a red or a black flag in Minnesota. 'Gainf the law' both places.

If your vacation takes you to Louisiana, youd best not figure on doing any shrimping. Only residents are permitted to take shrimp. And nix on fishing for shad on Sunday in Florida.

Probably you won't be opening someone elses mail while touring. But if you do slip it will cost you $2.50 and three months in jail in Kansas. And if you get an urge to row a party across the Mississippi for pay within two miles of a public ferry dont. Not in Loui.siana anyhow'. State law forbids this.

Its illegal to tell fortunes in Indiana, to fight a duel In Arkansas or unhitch a stranger s horse in Michigan.

Now and then a tourist has an affirmative obligation, like maybe in Colorado when you encounter a sick bee. By law youve got to get in touch immediately with the Commissioner of Agriculture and tell him.

So happy vacationing.

The Dafly Reflector

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By RALPH ROBEY

Almost everyone is discussing the slight downtrend in business during January, and perhaps continuing into February.

Was It a mere pause or does It indicate that this recovery is over? Here are some of the data which reflects the decline:

Total personal income dropped by $1.5 billion. This is after making a correction for normal seasonal behavior of this item.

In manufacturing the seasonally adjusted hours worked per week declined from 40.4 in December to 40.0 in January. Average weekly earnings fell from $%.^ in December to $94.96 in January.

Total industrial production, as measured by the Index of the Federal Reserve Board, slid from 115 in December to 114 in January.

Private housing starts were down for the third consecutive month.

Preliminary estimates for retail trade in January revealed a slight decline. The estimates have now been revised and show' a slight increase.

"Various other important statistics. such as gross national product, personal consumption expenditures, corporate profits, expenditures for plant and equipment, etc.. are compiled only on a quarterly ba.sLs and we have nothing on them so far.

Now obviously this is not the manner in which statistics should behave during a recovery period. But Administration spokesmen are not disturbed. Two of them expressed their views a few days ago and they reflected complete confidence in the outlook.

Secretary of Commerce Hodges. in a new's conference, said that he expects continued expansion in the months ahead, and forecast that gross national product will rise to more than $.560 billion in the second three months of the year. (It was $542 billion in the fourth quarter of 1961.

Walter Heller, chairman of the Presidents Council of Economic Advisers, just shrugs off the January fimires. He has been predicting that gross national product would be above $5.50 billion in the fir.'it quarter: and he sees all kinds of facts which will a.'^sure a continued upward trend for business the remainder of the year and into l"6l. And he holds to ?.57(i bil

lion for ei'oss national product for the year as a whole.

Is such optimi'^m justified

Secretary Ilodiu s appears fairly rea.sonable. tnit Dr. Heller, in <jur jud' ment, is going too far.

The January decline was not serious, and a major portion of it can be accounted for by weather. But granting this, it still remains true that there were setbacks, and these must change total estimates for the year 1962. For example: ^

Our original estimate for gross national product was $560-565 billion. That now definitely appears on the high side, and we would be inclined to place the figure at $555-560.

Industrial production, w'e said, should rise by 7 per cent. That figure probably needs to be shaded to not more than 5 or 6 per cent.

We estimated that unemploy-, ment would decline between 5 and 5.5 percent of the civilian labor force, 'Whether this proves to be accurate will depend primarily upon the growth of the labor force.

Our forecast on private housing starts was 1,325,000. That was a low figure, and still is reasonable.

We objected to the Administrations estimate of corporate profits, and used that as one important element for insisting that the proposed balanced federal budget would not be realized. There now is* no question but that we shall have a deficit for the fi.scal year which starts next July 1.

But the recovery Is not o%er. We experienced a pause in January. and we may find that some of it was continued into February. But the busine.ss trend basically still is upward, and should remain so for the remainder of this year.

Opinions

In

Pending any overall solution.'. there is something that every parent can do which wouid help considerablybe sure that their own children are not among the drop-outs, among the youngsters .starting out in a world which ha.s no place for them. Atlanta (Ga.) Journal.

Money doesnt make you happy. but it quiet.s the nerves. Sean O'Ca.sey.

"Reading of Mr. Shrivers viuj to the Hill, on the .same d.ay the Pre.sident asked $4 8 billion in new foreign aid. we are minded to wonder if the fanta-tic outpouring of American funds will ever slop. I.s our Republic never again to ])ursue a course of simply minding its own business? " Hichrnond News Leader.

Strennth For Todav

P,\ FAKI I DOK.I.A.S.S PIA TI( F WHAT ^<H PHFA(M

We do not know who wrote the FoisUe of Jajnes but wbo-e\( F he wa.s. he was a piac-tical .soul. Apparently he bad ixT-omc annoyed over the fact that .so many pc'opl' were pro fes.siiig a gieat dea a.' regards their religious faith and then living the sami' kind of life they had always lived. In other word.s. .James complained that some Chrlstian.s were lone n their profession and short in their practice. Thev claimeri to believqi rnanv Chri.stlan truth.s and principles which tlle^ apparently took not (he .slighte.st interrst in putting Into practice 'Be ye doer.s of tlie woicl, wiole Jame.s. and not hearers only, deceiving your own .selves. For if anv l)( a hearer of the

By GEORGE SOKOLSKY

^Reason For Civics Stud'^

Copyright, 1962. King Features Syndicate, Inc.

I have a rather remarkable letter from a reader in Phoenix, Arizona, which explains to me why the teaching of civics should be restored to the public schools. The writer says;

It is my belief that the duty of the Supreme Court, when a case comes before it, to decide it on the basis of law or whether the constitution has been violated. That they should be able lawyers, know the law or where to find it, and be thoroughly familiar with the constitution. They should not be politicians.

Frequently cases are decid

ed on a five to four basts. One lated. How can that be possible? If they all know what the constitution says how can a decision be other than unanimous, one way or the other.

The questions raised here are only difficult to answer because the writer apparently cannot envisage the Supreme Court, which consists of nine men appointed for life, all of whom are lawyers and know the Constitution. But the Constitution. like the Ten Commandments. is a tightly drai^'n document w'hich from time to time requires interpretation.

For instance, we have moved into a w'holly new relationship between government and pro-

V

Other Edifors Saying... The Efficifent Samaritan

(Christian Science Monitor)

The foreign aid program of the United States has been drastically reorganized. That is the Presidents own phrase. It has new objectives, new methods, new staff.

The only old thing about it was properly .stressed by the President: The aid program

was and is, thank goodness, bipartisan.

The American people can scarcely realize the extent of the recent changes. They were not properly told what wa.s wrong w'ith the old system. Sympathizers with foreign aid were afraid to face its defects, lest the aid itself be stopped. Critics of foreign aid usually picked the wrong things to criticize. Why help other countries anyway? they asked. Or they picked on cases of poor administration, which are inevitable in any big public program.

The flaw went much deeper. Economic . aid did not produce economic growth. Much of it wa.s dissipated for military reasons, in ways that are hard to describe to the layman. Yet its worth the effort to try. Suffice it to say that the great bulk of aid was. in fact, militaryyet it took the form of economic goods and .services. These were used for military purposes, in a way that hurt the. economies more than it helped them.

The other great flaw was in the political regimes that weie helped. Many were opposed to social and economic refonns. Yet without these reforms, the obsolete economic systems were too sluggish and narrowly restricted to get going, even

with foreign aid.

This is a capsule account of what went wrong, greatly oversimplified.

The new bipartisan aid program has been, to repeat, drastically changed.

It requires tax reform and land reform.

It requires carefully unified economic growth plans for each country, with which all projects must harmonize. Especially military aid.

It uses more loans, less gifts.

The United States must agree to each project.

There are better safeguards against corruption.

Other well-to-do countries, like those of the Common Market, are urged to carry their share.

Aid administration is streamlined.

Long-term financing does away with short-sighted projects.

Local military forces are put to work usefully.

These are admirable chang-e.s. long overdue. They call for the strongest bipartisan support.

The high aim of the ai(l program is now matched with methods. The thing to watch next is the follow-through. If the methods are reasonably successful. the result for the first time can hope to bring the advances in human well-being which flow from economic development joined with political liberty, as the foreign aid me.ssagc to Congress says.

For we should know by now that where weakness and dependence are not transformed into strength and self-reliance, we can expect only chaos, and then tyranny, to follow.

side will claim some law or the constitution has been vio-duction arising out of the fact that many industries are forced to unite to produce the kind of goods that the goveniment buys such as missiles, rockets, satellites, etc. These cannot be jnade by small enterpilses or by a single company. Some 2000 American industries played a role in the Manhattan Project which produced the atom bomb. The application of the anti-trust laws to production will have to be re^interpreted to meet these conditions. In fact, both large and small industries are now essentialbut the big ones are generally enormous.

Or to give another example: villages and even small towns are being deserted and more and more people are moving into large cities. The urbanization of our population has raised many questions of inter-racial relations in a country where there are about 19.0(X),0(X) Negroes, many of whom have in recent years left farms and plantations and moved to large cities: some of whom have

fought in two w'ars abroad; others of whom have been to college. They have raised questions as to their rights under the Constitution which the Supreme Court had to hear.

A five to four decision is in no manner a violation of propriety: it simply means that nine trained lawyers of distinction have reached different conclusions in their interpretation of the identical clause in the Constitution as applied to a current situation brought before them. The Supreme Court initiates nothing. It does not act on a case unless it comes up to it from a lower court. The Supreme Court reviews decisions: It does not try ca.ses. Naturally, each justice applies his own judgement to a problem: otherwise he would not perfonn any useful service.

This kind of correspondence is not unusual these days. I receive quite a few letters which attack the Supreme Court, the way the Communists used to. The attack is generally on Chief Justice Earl Warren who is being held responsible for the integration decision, although nine justices were re-spon.sible for it. Again, it needs to be pointed out that the Supreme Court did not Initiate this case: that it comes from the lower courts, as all cases must, on appeal.

The attack on political judges is usually an attack on Chief Ju.siicp Warren, although CTiief Justice Taft and Chief Justice Hughes were politicians of (Continued on Page 5)

Other

"ncome

Choices

By ROGER BABSON^

BABSON PARK, Mass., Last week I discussed investing in - common stocks and mentioned Several of the most popular groups today, one or tw( of the most speculative, and some which should be good for the Tong pull. To be safe, not more than one third of an investors funds should be In ccwnmon stocks ^day.

PREFERRED STOCKS AND CORPORATION BONDS

This week let me describa other securities to be purchased solely for Income: Preferred stocks will yield the most nearly 5 percent. I prefer only the cumulative and non-calla-ble preferreds. Best M these seem to be the preferren stocks of the Utilitiesavoiding New York, Chicago, and other large cities which might be bombed. Of the Industrial preferreds United States Steel Corp., 7 percent Cum. Non-callable Preferred should fit most investor requirements. It sells at over $140 per share but yields nearly 5 percent.

Following the preferreds we may consider high-grade corporation bonds. These yield about 4/5 percent. Avoid collateral trust or subordinated bonds, sticking to a mortgage bond except for large corporations such as the American Tel. & Tel. Co., which puts out debentures of the highest grade. This company has just issued $300 million due in 32 years yielding about 4F2 percent. I would not hold them too long,as someday the federal government may take thli company over. First-mortgage bonds of strong railroads are worthy of consideration. All State Bonds not revenue bondsshould be good.

MUNICIPAL BONDS AND GOVERNMENTS

I next rate Municipal Bonds especially for those investors in a high income bracket because Interest thereon ia ntm-taxable. Here again I say; Avoid the large cities which might be bombed. I prefer the bonds of state capitals cities usually located in the interior of the state. State capital cities seldom suffer from unemployment. Moreover, their income is largely derived from State taxation. State Revenue Tunipike Bonds are worthy of mention. Although these are non-taxable as to interestyet their interest payments depend upon uncertain toll receipts.

We next come to Governments. These will always be paid,principal and interest. The Federal Government la the only corporation which can print money in case of a severe depression. On the other hand, U. S. Government Bonds are taxable both as to principal and interest. My favorites are the U. S. Savings Bonds Series E, on which the interest is paid when the bond is cashed at the end of 7 years and 9 months. Or the U. S. Savings Bonds Series H, on which the interest is paid by check twice a year. These Series H Bonds are Issued to be cashed at the end of 10 years. Both Series' E and Series H pay about 3'*4 percent.

BANK ACCOUNTS

I sh(5uld also mention Interest paid by Savings and Loan Banks. Commercial Banks, Mutual Savings Banks, and Mutual Funds. These pay 4 percent or more. An ideal investment portfolio, in my humble Judgment, now consists of about one third in common stocks; one third in preferred stocks or corporation bonds; and one third In bank deposits or good shortterm bonds which can readily at any time be turned Into cash. This last third I like to think of as Liquid Funds which can be used later for buying more common or preferred stocks, or for buying more bonds, or real estate whenever any bargains occur in any of these possible Investments, I like Kansas real estate acreage.

In closing, I must say a word regarding inflation. With President Kennedy spending federal money so freely It seems that eventual inflation is ahead of us. The present dollar worth 100 cents in 1940 is now worth under 50 cents. If we should get into a World War, It could go to 25 cents, or less. This means that preferred stocks and all bonds having no matur-

(Continued on page five)

'Railroads Cauaht In Glum Spira.

Wind aiul not a doer, he i.s like iinto a man ('holding his nat-nia' face in a "la.'.^^. for h hc-holdi-th himself and gorth his and strahhtwav foruf-tetli v.hat manttor of man ho was . . .Put a door of tho work . . shall bo bitsod In his

dot d

No oiio probal)ly ovor livos up oomnloiolv to tho highost and host Mia ho bt lieve^^^ Wo no\f"- fot ono hundred por conl on life'.' examination.s. But wo aro urged hv rhrtst. hlm.solf to .srok porfortion. Wo may not 'dtain It in fact we are pretty .oiUf wo .shall not but only if wo try for pot fectinn will wo aohiovo any 'tti.'farfoiy I'^'ult whatsoever

Let us tiof 1?o afraid to pio ft.' much vd''ardiug rcli"ioi!.s' faith, hut lot u.^ bo fiilioid to .'Of ihat wo put into operation the faith we profess.

By KL.MFR ROKSSNFK

. Thoiv s a curiou.s. inexplicable .'-ituatiou in (he vailroad itusino.....

. Shippers are demanding moi - and better freight cats.

. Railroads aio making tliin profits bocauso llioy an* losing, levonut' Irtnght i;; tiuoKor;- and otlu r uiovi.'- of fii-.h-lit.

. Buiklors of roiling stock have almn.4 no ordt'is on tlioir books.

Tlio railroads. ospocially tlio.so in tho ila.si, .say they do not have funds with which to buy Irolght cars They soo-u loikPd in a do.scendiug, fright-(-uiug piial. Freight revonuo.s are f.dliin off bf'tau.'O they do not have adequate (rtigbt cars; becau.'C rov'enue^s are fieclmirp they do u it have fund.i to finance more fre:ght ca I

A curious, quirk to tho silua tion Is that fact that the biiild-ors 0' ralroad .stork have h ni .spending large .-utas to design more ofllcient and ht'ueo moK-profitable car.':.

SIlirPFItS (OMIM-AIN

Tho lack of fid'Tit mot ii.ig rolling .stock Is very real. Cou-

.sidor;

. The number of freight cars now sidotiackod for repairs 1s now 9 per cent of the total, al-ino.^t double tlie ratio of ti\e yoars ago.

. Grain dealers, lumber com-pauK's, .stool nulls and other in-du.'-uial gioups are increasing coniplalnts al)out delayed deliv-o'los and incroa.sed costs of switcliing to trucks and other typi's of tianspoit.

. A spoKc.snian for tho National Asiociation of Shippers Advi.soi-y Boards said last month, Tho cuirent car situation Is o.vti('nioly critical.

. Shippers have been com-ph inim, that available freight c.ars are gotlliip full of holes or full of termites,

. The American Railway Car Institute last July declared that freight cars were in tho poore.st sliape since the Depression, and warnrc! that a crlsi.s was coming Th(' emergency Is upon us and inriusiry is going to feel the pinch

Traliic nianaroi's of tlie countrys Corn refiners', who spend $66 million a year to move

their products, met In St. Louis la.st spring to complain about shortages and poor quality of freight cars.

IN COMPETITIVE CINCH

There is no easy solution to the problem. Railroads are not prospering and few are in position to build up reserves to finance new rolling stock.

The lailroads share of intercity freight has declined from a postwar peak of 67 per cent to aroupd 43 per cent today. Tliey liave lost revenues, mostly to tiuckers, but some to planes and other means of moving freight.

Records of tlie American Railway Car Institute show that fifty .years ago the Class I railroads had 2.145,050 freight cars and that In 1919 there were 2.-3H9,8(iO. After that the total declined and today there are only about J.6(K).000 cars. Last year cars were being scrapped at twice tlic rate new ones were tK'ing built. On January 1. this year, tlie car builders had orders for only 1.5.670 cars, about n tenth of tl numl)er on order only six years ago. The av

erage age of freight cars U now

19 years.

GREENER FIELDS The car builders have cea.sed to depend on railroads for major parts of their business. Pullman has gone into truck trailers and oll-refinery equipment. ACF Industries is deep into auto carburetors and electronics. Other car builders are similarly diversifying.

Some of the railroads are Into oil. mining, timber, land development and similar activities that grew out of original grants. But most of them are Just dle.seling along, hoping th^t truck competition may Just go away. '

UNIVERSITY FAILS GOOD TO SPEAK THE LANGUAGE Columbia University Press mall promotion starts

A

direct

off:

Quality Distinguished -i-Intelligent Scholarly D^ .sign Interesting Price. Tlie.se are some of the Ingredl-ruts that go into Columbia Pa-porhack.s. The ingredient of grammar appears to be missing.

h