J

Monday, March 26, 1962

I i . ' . : 1 ,

More Smokestacks Not Full Story

f

Akhough most people of Blastern North Caro- state.transportation and distribution are becoming una think in terms of new industrial plants and new * inci^easingly important industries for North Caro-industnal jobs when they thinks of economic devel- lina. The location of large warehouses and terminals opment of their communities, this is just one of account for considerable employment in many corn-many ways in which the economic level of a com- munities. There is also the nation-wide increase in munity can be raised. demands for services of all kinds whi<ih is having

The increase of non-manufacturing jobs in a its effect upon the employment of North Carolina,

community may be of equal if not grqeater im- There are many''economic opportunities for communities in seeking headquarters establishments or branch offices for major ser\*iee companies.

The old idea that the only route to .economic the past month showed^hat non-agricultural em- buifcing^more smokestacks is obvious-

ployment in North Carolina in February was 32.000 outmoded. It is. to be sure, an import-

higher than the total in the corresponding month # route lo** * community to explore in its quest of 1961. Of these 32,000 additional jobs, however economic development. But a communit^v which factoryj'obs accounted for 14,000 while non-manu- likewise explore other opportunities for '

facturing employment was 17,900 above the figures potential is missing out on an already

for February last vear. large and growing market \

. ... Good year-round jobs with reasonable pay

'Jb\i<msiy all of the economic gams being made levels are important,.to the economic growth of a

by North Carolina are not coming directly from the community whether they are manufacturing jobs increase in manufacturing jobs. Increased employ- or office jobs. And for the most part the community ment in fields outside both manufacturing and agri- with the best balance in its economy is usually the culture is likewise .making an important contribu- one which has .the greatest economic stability as

\ion to the economic growth of the state. well as growth, and the one which offers the great-

W ith the increase in manufacturing in the est variety of opportunity for its people.

portance from an economic standpoint than manu facturing jobs.

A report of the State Department of Labor for

The Same Answer for Every Question

RBAU OR FARA PROBLEfA^, mVL DEFENSE, AFWC^

FAR EA^T,

UNEfAPkOyN\ENT/

ANYTHING!

3attle

Sixth

jines in District

By CHARLIE HAMH.TO.V Greensboro Record Guest Writer Battle lines in the "Untouched Sixth Congressional District remained hazy until the final hour for filing last Friday.

Democratic incumbent Rep. Horace R, Komegay of Greensboro long had been assured a primary skirmish with a disgruntled Democratic challenger from High Point, Promise of a full-fledged Republican primary dimmed that momi^ when an announced Republican candidate from Greensboro changed his mind and switched to the State House race.

The decision by Insurance-man Donald Badgley to withdraw appeared to leave the Republican nomination open to a Burllngtai attorney, Walter G. Green. Greens other threatened opposition. Womans College history professor Blackwell Robinson, had announced earlier that week that he would not run.

But Robinson had a private change of heart early last Friday and drove to Raleigh unannounced in time to file before the deadline. His decision assures the district its first Republican primary since it was formed.

It now stands that Komegay will face primary opposition by High Point businessman A. G. Whltener who decided to remain In the Democratic Party after his efforts late last yev to form a new Progressive Party aed.

Until the campaign strength of his three challengers are revealed it appears that Komegay is in the drivers seat. However, Democratic leaders throughout the district plan to keep a watchful eye on the GOP Primary to see if their party may be in for threat from the much-talked of "Republican surge which GOP leaders are predicting for other areas of the state.

Komegay will have completed his first term in the Con-gr^ by the time the general elmion rolls around next fall. His record so far has brought no serious attacks against him. He seems to have weathered in comfor^ble fashion his first story which came about early In the session when be and nine other Tar Heel Democrats voted against enlargiM the House's . controversial \ rules committee. The change was a prime goal for the Kennedy ad-minislration.

And Komegay ha^ again received the positive endorsement of a key figure in the district, former Rep. Carl Durham of Chapel Hill. Durhams long years of service in the HotLse left him a highly respected fig-ure in both Washington and the

Sixth District when he retired.

Republican leaders have promised the most. active GOP campaigning in thr 31-year his-tor5' of the district. But they will be withoi^ one big issue that other GOP congressional candidates are armed with gerrmandering.

The Sixth District Is the only district whose boundaries were left untoucheiLJjy the 1961 legislature. <The states. congressional districts underwent re-alignment when the states 19^ population count showed It would lose one of its 12 congressmen this year.) The district is formed by four thriving Piedmont counties, Guilford, Alamance, Durham and Orange, with a total population of 487.159 people.

Komgay. 38. was bom In Asheville but his parents moved to Greensboro when he was a child. He was graduated from Greensboro Senior High School. Wake Forest College and its law school. He is a past president of the Guilford and the North Carolina Young Democratic clubs. He had served as solicitor of the 2th Solicitorial District for six years when he resigned to go to Congress. He maintains his permanent residence in Greensboro.

His primary opponent. Whltener, received statewide notoriety last year with his unsuccessful attempts to form the new Conservative Party. He spent much of his time seeking enough signatures on petitions to establish the party^ And he rained a steady verbal barrage against both Democratic and Republican parties, attacking them as "bit spenders and of spawners of bigger government."

But when Whiteners effort failed, he decided to hold on to his Democratic registration and run for Congress. He has already issued a voluminous amount of material in which he stated he is running as Bus-ine.ssman versus a politician and as a Jeffersonian Conservative against a Jacksonian liberal.

Robinson, 45, who was given clearance by the universitys board of trustees to run. Is a native of Goldsboro. He taught at High Point College before joining the WC faculty. He has studied at Chapel Hill and Duke University and Is author of the North Carolina State, published by the State Department of Archives and History.

Green, .55, was bom in Char-le.ston, S. C.. but spent most of his life in Burlington. He has textile mill interests as well as his law practice. He has studied at the University of the South. UNC and Oxford University.

Must Be A Reason For Contintiing Talks

In fairness to President Kennedy, one must assume at this point that his determination to continue the Geneva disarmament talks is based on more than just wishful thinking.

On the surrrce, at leasts no progress has been made which indicctes the major East and West powers are any closer to agreement on a ban on ^ nuclear testing than they were before the confer-

ence began. The West has maintained its position cc^rrxr

that a reasonable inspection program must go along vJiiUKvjrrj oOKULoKY

ackie Is Doing The Job

with the agreement. The Soviets have sfood by their f-previous assertions they will allow no inspection within the Soviet Union to show' that they are living i

up to an agreement. * _

its posJilrUh*

Vl * any agreement are being one task at which the Unit- states, which would not even The Indian trip of Mrs. John

fulfilled by all parties. And there are indications ed States has not been too sue- Kennedy,, the Presidents

that neutral nations participating in the conference cessful has been world-wide

are coming to the support of the West on this par- ?KLtlng?nd r

ilCUiar point. ings shocked the world, the Rus-

While at the moment there appears no mutual ^^ch their owm

ground upon which a compromise will be effected* thi'n''

it would be surprising to us that President Kennedy Id statertuS to thi gS-

would insist that the conference continue unless he er pastures of the Kremlin for

had good reason to believe some agreement will be ^P^o^ement ^viet

forthrnminir Russia, the most imperialist of

lorrncoming. nations, gives the impression of

In the past it has not been possible to effect.

East-West agreements quickly on basic issues, and J * j. O

there is little reason to believe the situation would utner Laitors bavina.

differ on a que.stion of such import as the agree- ^ ^

become the votary of war.

It has been shocking to our people that we. who can make bubble-gum palatable and Who can glorify cosmetics until the natural bloom of a womans face or the beauty of her hair is lost under pounds of falsifiers, do not know how to tell the truth about ourselves effectively. As propagandists, our advertising agencies and our

w'ife, has proved something very important. It has established that all the world loves beauty, particularly in the natural flowering of a young woman, that good manners and

3egun With An Idea

By ROGER BABSON BABSON PARK. Mass. ~ 8o many young people seem to feel that it is necessary to have some capital or a college degree or an Important relative In order to start a business of their own. This week I wish to write about some acquaintances who started with only an Idea; but who, with persistence, made a great success.

CURTIS PUBLISHING COMPANY My first job was with George Horace Lorlmer, editor of the Saturday Evening Post. He told me that Mr. Cyrus Curtis paid $10.000 for the Post, but could raise only $100 as down payment. I saw its circulation grow over 6,000,000 copies, and including the Ladies Home Journal the Curtis Publishing Company stock sold for over $100,000,000.

- Among the Important people Mr. Lorimer sent me to interview was Thomas A. Ediscm. Mr. Edison told me that he had only five years of schooling and only $MM) of capital when he Started In business. With the help of Sydney Z. Mitchell and my cousins he built Americas great electrical industry, based upon the Incandescent light, the phonograph, the storage battery, etc., which Mr. Edison invented. All these came from Ideas, as neither Mr. Edison nor my Chicago cousins had any money.

OTHER WELL-KNOWN NAMES I remember interviewing John Deere, who founded the farm machinery business when it seemed impossible to Interest any farmers in machinery. I also interviewed Henry Ward Jones, of the Johns-Manville Company, He became interested in asbestos, believing that it had a great future as a building material. Clarence Birdseye, founder of the great froz-en-food industry, was a personal friend of mine a Gloucester , boy, and later one of the trustees of the Gravity Research Foundation in w'hlch I am much

.'nl? Interested. He asked me to buy

III some of ills stock, but I didnt:

later he sold out to General

ment to ban the testing of nuclear weapons.

Plant Investment And Recovery

are attractive wherever one .sees it. It may or may not be useful to influence neutral governments, but it is alw'ays ad-'antageous to be beloved by great masses of people. If we can afford to do anything, we can afford to send this particular Presidents wife, who speaks many languages and who Is so flexible in her rela-

Foods for over $20,000,000. If I had bought his stock at $100 per share, I could have got $100,-000 for each share. Bill Walker of Thermos Bottle fame, and Elisha Otis, who, with no capital and after many failures, founded the Otis Elevator Company, taught me lessons. I remember the Walter Baker story

p.. 1,. Trn Ho Drr^Kl om o ulSlmblr thi wliVr Sr .. U.Ur6 .. rac.6 .:*^r0.3..6rQS mZy coLS fai^ly started their

many countries. farrfcus chocolate business in

By RALPH ROBEY

Business investment in plant and equipment is one of the factors which has been counted on to keep the recovery going for the remainder of 1962. We have just had released the governments estimate for the year and it is significant because.

funds Is also a matter which may be controlling. And always there is the question of whether it is the correct time to make further investments in the business .

At present there is no shortage, over all, of funds. The cash-flow of business is high.

while it forecaste an increase, -Depreciation now' amounts to

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the rise is not as large as had been anticipated.

The data on this item are collected by the Department of Commerce and the Securities and Exchange commi^ion. Companies are requested to make an estimate of what they will invest in plant and equipment. and these are then "blown-up" by the government agencies to cover the entire economy. For the past several years McGraw-Hill, the publishing firm, also has been making surveys by means of ques-tionaires and issuing the results, Necessarily there has been much duplication in the companies covered by the two projects, but the results have been remarkably close, and. in the aggregate, quite accurate.

The government survey was made in February and covers investment plans for^the rest of this year. It reveals an increase quarter by quarter and an aggregate inve.stment in plant and equipment of $37.2 billion during 1962. This is 8 per cent above 1961. and exceeds the previous high of $37.0 billion in 1957. This is a fairly substantial increase, but the Administration had anticipated a much larger rise in its forecast of a gross national product of $570 bUlion for the year.

Decisions to make an investment in plant and equipment, or not to make it. are a function of the managements of the iiKlividual companies. Of coui*se many elements are involved, but the likelihood of making a profit mu.st be given great weight. The availability of

over $25 billion, and that, while well below what it should be to cover the actual value of the capital used up each year, all goes into the cash flow. Profits for the economic system as a whole still are on the upgrade, and provide further funds that could be used for investments in plant and equipment. And wages are at a level which provides a strong incentive for the substitution of machines for manual workers wherever it is possible.

Why, then are we not getting more business investment in plant and equipment?

The answer varies from Industry to industry and from company to company. In some instances there Is so much unused productive capacity that there Is little or no justification for further expansion. In other cases it is irnposslble, or expensive, to substitute machines for manual labor. In some companies, and some industries, there is such strong labor union objection to the elimination of workers through further investment that management dare not make the move.

Over-riding all these individual situations, however, is the fact that buslnes.s profits are becoming increasingly difficult to make. And there is widespread belief that after the second quailer we shall see the beginning of a profit decline. The drop Is not expected to be sharp, nor to apply to all companies. B\it the broad, and longer term, outlook is not .such as to provide real encourage-

Contlnu#'! on page five

(Rocky Mount Telegram)

There have been lots of debating over the question of U. S. trade relations with the new European Common Market. Much of this debating has gone on in North Carolina, and with good reason. Tar Heel industry has much at stake in whatever the government decides to do with its tariff program. The obvious result of any lowered tariffs by President Kennedy would be to benefit this state.

Secretary of the Treasury Douglas Dillon pointed this out In a recent visit to Raleigh where he spoke to the North Carolina Citizens Association. Enactment of Kennedys plan to trim tariffs, he s;ard, would stimulate this states overseas busine.ss, Heres an example: In I960 North Carolina sold abroad some $400 million in manufactured products, which gave employment to 28,000 workers. Thats big business any way one looks at it.

In addition to that, some 51,000 Tar Heel farm workers were involved in producing over $200 million in farm exports. That, too, is big business; Of course the top exporting industry of the state is tobacco, with almost $200 million in exports. Where are the top customers of this tobacco? They are in Prance, Belgium, The Netherlands and Luxemburg. Thats four of the six members of the European Common Market. So we simply cannot ignore the Market even if we wished.

That's why President Kennedy wants to do bu.siness w'ith Europe. Thats why he wants to make a tariff deal.

In return for lowering some of our tariffs, he hopes to gain consideration at a later date for a similar lowering by the Common Market of barriers to our farm products. This would include tobacco. That would be to our benefit.

There will be exceptions; one of these will be textiles, because it is quite obvious domestice textiles need some measure of support and protection. Dillon made this clear to Tar Heel business leaders in the Raleigh address. Our .second biggest exporting industry i.s textile mill products, accounting for over $80 million in I960.

Some steps for helping our textiles include revised depreciation allowances on textile equi^ent and the recent five-year international cotton textile agreement which will limit increases in imports to 15 per cent over that period. Liberalization of trade is the only answer to the need for finding expanding overseas markets. Tobacco is a prime example of this need.

The one common factor noted in countries w'ith a resurgent economic growth is the removal of trade barriers tariffs. We cannot join the Common Market for diplomatic rea.sons but we can certainly do business with it. Conceslons and trade agreements are the two ways we will survive economically. In todays quick moving world there is no room for ancient ideas which include the use of tariffs to keep out trade from other nations, and at the same time the foreign tariffs hurt American expvorts. It works both ways.

many

We have been painted to all the w'orld as crass materialists; .vet we have here the best, or If that citation is given to La Scala, the second best, opera house in all the world; we have more and better museums; more and better symphonies; and so one goes on, but these accomplishments are hardly noted. Mrs. Kennedy is an artist and when she goes among artistic people she can hold her own and she does not give the Impression of having lived a crude, materialistic life. In Europe and Asia, her cultural attainments strengthen the United States.

I have read the criticism of her trip and they make two general points:

1. It costs money;

2. Why send the Presidents wife? Why not send someone from the State Department or from Congress?

As to the money, ^ what this trip costs Is peanuts compared to what we .spend on propaganda for our country that hardly scratches the surface; the impression Jackie is mak

the Wtchens at Dorchester, Mass.'Charles Goodyears idea of vulcanizing rubber was a similar "kitchen" illustration. Their only assets were a new idea and the persistence to develop It.

My father kept a drygoodi store in Gloucester, Mass. Manufacturing and engineering did not interest him, though I ^as an MIT graduate. He urged me to go into merchandising: he would teU me the story o! Rowland Macy, who started his great retail venture with a little "thread and needle shop. Today, 175,000 shoppers a day visit Macys In New York! His new idea consisted of elaborate window displays and original advertising, always marking the price of goods in the wlndown and in the advertisements. The other drygoods merchants thought this was undignified and would have nothing to do with it.

THE HENRY FORD STORY

Mr. Ford himself told me that he was seven years in raising $100,000 after makeing his first Ford car. He had only one idea.

ing seems to cut deep, because he stuck to it. without ed

she does what the people of India like to have their visitors do. And whatever she does, is done gracefully.

As to why the Presidents wife should be sent, the answer is that she fits the job. Lots of folks, including myself, often have had much to say about Eleanor Roosevelt because we did not like her politics, but in her day, she managed to win the good-will of a great mass abroad. This can be said with assurance, Jackie Kennedy is not likely to put her spoon in the boiling kettle of international relations. She will talk about art. fumlturCi dresses, archi-

(Contlnued on page five)

ucation or capital. However, those who Invested $100 in the first Ford Motor Company stock ultimately were able to take out $1,000,000 for each $100 they invested, all from an idea and perserverance. Opposite my fathers drygoods store was a "Great Atlantic and Pacific Tea store. My father would tell me about Geqn?e Hartford, who opened the first A & P. His one idea was to cut out the middleman. He went to the wharf, where the ships from China came in, and bought Ms tea. Then he took It to New York in a horse and cart and sold it at retail, proving It was (Continued on page five)

conomic Education For Public

Strenoth

For

odav

By EARI. I,. DOUGLASS THE STARS IN THEIR COURSES

Disaster.

Have you ever analyzed the woid? It is made up of two Latin words which mean "an unpropitious or baleful aspect of a planet or star." The word ha.'-its origin in astrolog Dlsastei occurs when, according to the ancient astrologei>. the stars are unpropitious or agaln.st vou

One does not have to believe In astrology to realize that the stars do. perhaps have some influence on our everyday living Some people heartily believe that certain vegetables and flowers should be planted in the light of the moon, and others in the dark of the moon. Very few people today believe in a.s-trology, but there was a time

when it wa.s a highly respected "science" and when the most learned people ol very dlstin-gui.hefi age.s believed implicitly In the teachings of astrology.

Onlv the remnants o' this belief are with us today. .The -ar.s perhabs affect ii.s - we know not how All we do now is that we are part of a great astral sy.stem. Our universe is made up of countless billion.s of .stars and planet.s The moon cauies the rising and fallinv of the tide.-. The sun i.s the .source of our life. But do the heavciiiv boites atfect us otherwise About that there can be no affinnative answer .sa\e that .everrthlng In the unlver.se has- slgnlfiraeee anrl that the stars in their rour.se.^ mu.st In some way touch our lives and influence them.

By EL.MER ROE.SSNfeR On the same day that President Kennedy a.sked Congre.ss to enact law's to give consumers paycheck-to-cash register protection, the Committee for . Economic Development proposed thateconomic education be offered the young from the first grado onward.

The CED said that students get very little economic education Ijefore high school, and w hile 90 percent of the students depended on high schools for thi.<-- training, only 2.> percent of the .social .studies teachers in high schools were qualified te teach the .subject.

While the CED did not make this point, it appears that many 0 Mr. Kennedys recommenda tions would have been unnec* e'sary If the public schools did

have to do is to Insist the butcher show them the blue Inspection stamp on the carcass.

Butchers, of course, often resist this. However, a course in holding ones own with butchers could be given* in the seventh grade.

Mr. Kennedy also a.sked for a "truth in lending" law, which would require lenders, instalment .sellers and others to state exactly what interc.st and other charges amount to.

Mr. Kennedy, whose family rai-ely buys anyting on time, tfuortcd yiat used car buyers pay up to 25 per cent a'year and more in interest.. If the u.s-ed cai buyer had a daughter in the eighth grade where CED economic and arithmetic, at lea.st through percentages, was laiuihl he rould find out how

teach economics, simple arith- . much ot aJsucker hr would b< metic, reading and common brforw he ibought.

en.se in the lower grades. Sjri K-PnUTEUTiON

pov.sible

For example, the President ?s .ed for cgi.slation to require nvernment inspection of all nret. not jii.st meat sold in In-.ci-tate conni^ierce. Blit If given i dash of economic.s and a por-to of 'omn on .srn.se, even

IN TEI.EVl.^rOV FIELD

Mr, Kennedy also a.sked legislation to require television.set manufacturers to manufacture receivers handling the 70 UHF channels as Well a.*: the \2 VHF channels.

All any piircha.ser nectTdo Is to ask Ihr advice of a .son or daurliter w'ho has had fir.st-

slxih graders slionid know tljat--' gied common sensf; and sac if they want to buy only Fed- ond-gi;ade economic.s. The child crally inspected meat, all they would surely say, "Daddy,

dont buy a set with only 12 channels when you can get one with 82 channels if you tell the store man to go to hell."

The President also w'ants new packaging laws. He said. "Frequently he (the consumer) cannot feadlly compute the comparative costs per unit of different brands packed in odd sizes, or of the same brand in large, giant, king size or jumbo packages. And he may not realize that changes In the customary size oi; shape of the package may ccount for apparent bargains or that 'cents oft' promotions are often not real savings.

LITTLE CHILD CAN LEAD

EM

What the consumer really needs Is nqt more laws, but more kids educated under the CED plan. A rather small brat who know'S simple arithmetic, who can read enough to see what labels promise, and who ha.' a smattering of economics and common sen.se, can present her mother from paying more per ounce for something in an Imperial-slze package than sIk wpiild get in regular package. Makes you wonder when Mr. Kennedy was la.st in the A A P.

And even a child in the'llrst

grade should be able to tell whether a package Is tlghUy or loosely filled and anyone knowing how to operate a scale the primary tool of economicsshould be able to tell whether there are six ounces of cheese in a six-ounce package.

Mr. Kennedys proposals for tighter control of drugs, monop-/Oly, Jalse advertising and coemetics have validity. But lawa that try to protect consumer from one-cent sales well, I can find you Republicans who will say that Is an Insult to the Intelligence of the average American.

PODS INCREASE DEMAND FOR JET FIJGHTS

The addition of the 990 Astro-jet, featuring pods on top of the wings, is Increasing bookings between New York and Chicago, American Airlines reports. The pods, like Inverted canoes, delay the formation of shock waves as the air flow over the upper surface of the wings, reducing the drag. They are also used for extra fuel, giving the Astrojets greater range. They will be used later on New York-Dallas, New York-D e t r o 11, New York-St. Lduls and Chlcago-Dalla runs.