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Monday, April 2, 1962

Early Consideration Is Indicated

In choosing one of his close advisers and avid^ of law. fupporters for his first appointment to the U.S. How Whites presence on the court will .^fect Supreme Court/President Kennedy acted in the future decisions of the body is a -moot question, manner which most observ^ers had expected. There are those who assert?ome with delight and

The choice of Byron R. White Tor a seat on some with fearthat he will .represent the more the highest tribunal followed the Kennedy pattern liberal views of Kennedy administra,tion, giving the by putting in high office a relatively young man court a further shift to the left. There are others who is well qualified for the post he has been who size up White, because of his back^ground and named to fill. varied experience, as & member of the Supreme

Although there will be some misgiving among Court who will take more of a middle-of-the-road Senate members when the tirfte comes for confirm- position in matters which have to be deci^ded. ^ ing Whites appointment, it is evident even now Although White is young compared with other that the deputv attorney,general will have ample members of the high court, he is not the youngest support from both politipal parties to assure his man appointed to-the Supreme Court. Although he taking his seat on the bench. The former all-Ameri- has no judicial experience, he is not the only mem-can football player and Rhodes Scholar, while he her of the Supreme Court to come to his place on has no experience as a judge, is not unfamiliar with the bench withouP^revious experience as a judge, the court and its work, having served as law clerk Without question there are many able Judges to Chief Justice'Vinson. He has proved himself a and attorneys the President might have considered brilliant scholar as well as an expert n the field to fill the court vacancy, but certainly \V hite s name

\Vould have been among any such group brought

Family Affair

Drew

Curiosity ARet:ordCrowc.

to the Presidents attention. The swiftness with which Whites appointment came following the resignation of Justice Charles E. Whittaker..,indicates the President already had given considar^ion to the matter before he knew of the vacancy.

By LYNN NTSBET WHY THEY CAME More people attended the Jefferson-Jackson dinner here Saturday night than ever before attended a similar affair in North Carolina. More than 1300 Democrats i^d $50 apiece for the privilege of participating. Why did they cane?

There are several reasons. They did not come to pay $50 to eat a $4.00 m'eal, served in the State Pair arena. Instead of a more swanky hotel banquet hall. Certainly they did not come to hear Mayor Bob Wagner ot Ner* York make a speech. They could have heard him over radio and teevee sitting in the relaxed .comfort of their own living rooms. Besides. It Is quite likely that at least half the audience was not in full accord with the Wagner philosophy of government. Beverly Lake, for example, who publicly protested the selection of Wagner to make the address brought a $50 ticket and took his place among the rei^t^of the varl-idea Democrats.

The chief motivation for attendance at the dinner was curiosity. Each Democrat wanted to see and har what the others were doing, to exchange gossip and ideas. These din, ners have become, even to gfeater degree .than the state COTivention. the home-coming occasion for Tarheel Democrats. Because of that many of the guests would have come if the speaker had been of the most liberal -ADA persuasion or more conservative than Sena-tory Harry Flood. The speech was a minor incident in the series of events during Saturday.

Not many came to prove their adherence to the liberal-element of the party represented by the Kennedy and Sanford administration. It is possible that a few came for this reason. and a few perhaps stayed at home to indicate their lack of approval for the powers that be. This aggregate number was Insignificant, SALESMANSHIP - A few weeks ago when it appeared that attendance might be off this year, some of the conservative critics suggested it was because the citizenry did not endorse the administration policies. The critics now arc re-, luctant to concede that the very fine ttten^mee record may indicate idbr^seiit; *

Another reason so many people bought tickets was the selling Job done by the Democratic party organization,- particularly the younger wing. That is a place where it is quite likely a liberal speaker contributed to the attendance. The young liberals just had more zest and zip and worked harder at selling tickets than wwUd have the older conservatives if they had gotten one of their own to speak. Portunately and In spite of indications of hard times, the people have more spending money in their pockets and bank accounts than for several years.

Besides putting something more than $50.000 in-^the Democratic party treasurj, the J-J dinner occasion cut loose several thousand dollars among hotels. motels and restaurants in the capital area. F\irthermore it afforded opportunity for Democrats from all over to mingle together. From* every viewpoint the affair must be reckoned highly successful.

No Reason To Believe In Summit Success

POLIBUSINESS Several years ago somebody, it m a y have been a bank, coined the word agribusiness- to designate a business man farnjer or a group made up of farmers and urban business people. The wordjias come into rather general usage hereabouts and most people Tinderstan-d what it mean^There Is a place now for aribther new word, polibus-iness.

POLIBUSINESS That would designate the business man who is taking an active part In politics and government. The tribe is increasing. There re still some' business men who profess d^ste for politics and contempt for politicians. Even these professed haters are. not averse to using political processes to obtain desired advantages from government.

It Is recalled that when Luther Hodges became Governor of North Carolina he announced with considerable fanfare that his would be a business administration. devoid of politics.

It wasnt long before the administration of government was hampered by a complete breakdown in liaison with the Democratic party. Also there was increase in votes for "Republican candidates, cutting Democratic majorities for Governor and all other offices. During the closing months of his term Governor Hodges was an actively partisan Democrat, and as Secretary of Commerce now is carrying high the flag for the Kennedy administration.

Another example Is the case of Hargove Bowles Jr., the very successful business man drafted by Governor Sanford to head the department of Conservation and Development. Skipper said that four or five years ago he thought of politics as a shady business and politicans crooks. After a years experience in the practical appUca^ tlon of business to politics and =vtce \j'eFsa, the Skipper is mak-. Ing speeches at YDC and other party meetings urging fuller participation of business men in government.

Bert Bennett, the business man chairman of the North, Carolina Democratic party, told the Raleigh Kiwanis club the other day that the emergence of a handful of business men had had a tremendous-Impact upon our curent political structure. When more business men participate^in politics actively and constructively the result will be better government and a truer democracy, said the chairman.

Trying Liquidate WW1..

Lack of genuine progress made so far at the Geneva conference toward ironing out differences betw'een East and West bears out assertion^ of President Kennedy that a summit conference at the outset of the Geneva session would have been of little value.

There is no reason to believe that the top leaders of East and. West could have put together a

framew^ork for agreement in a day or two if their ^ QmzrM QXZ'V

closest advisors have not been able to reach accord 1

on any major point since the conference likewise ^ has dimmed prospects for a summit conference in the near future. President Kennedy since his recent discussion with Secretary of State Rusk has reiterated his position that a future summit conference would depend upon whther progress is made in the current Geneva session. This position, we are glad to see the President take.

As he said in response to Premier Khrushchev's demands for a summit conference to set the stage for Geneva talks, there should be tangible evidence that the cflmmunists are negotiating in good faith

before the beads ot^state meet. % Germanys,''a Communist

We feel, too, that President Kennedy.js follow- East Germany and a westerning the correct course in not rushing for adjourn- oriented west Germany. Berlin

ment of the Geneva conference just because the anr and pftf it.

foreign ministers have not yet made any* real prog- ^his solution is a violation of ress. It may take time for the Soviets to recognize the Yalta and Potsdam Agree-the fact that they cannot force a summit conference jnent for pdinr World War by stalling at the foreign minister level. l^hrushchev. like Stalin be-

Results of the discussion of disarmament and T C*

the) Berlin problems at Geneva so far have been L^nVlTlCi

disappointing, at least to the West; but there is ^ .

still hope that out of the discussions will come^ome . .. j ^ T C '

concrete progress toward reducing interhalional i>llJ.mJDr 111 ODQCS

Copyright, 1962, King Features Syndicate. Inc.

The tni object "of the differences over Berlin Is to liquidate World War II which is still continuing but tft an unusual way.

The Russian view Is that the

fore him. does not like those agreements because they represent to him unrealistic arrangements made temporarily but with no permanent possibilities. TJie British view on the subject is formally stated as iollows:

MA Khrushchev says Over and again that what is needed is to liquidate the vestiges of the Second World War. This sounds simple and attractive. In fact, however, Mr. Khrushchevs proposals would not liquidate the remnants of the last w^ar. The most serious remnant is the division of Ger-,^ inany, which is also the main

tension.

Housina Starts

J: orecas

' By RALPH ROBEl^'^^

In February, for the fourth consecutive month, private housing starts declined. The total in that month, on a seasonally adjusted basis, was at an annual rate of 1,126.000. Last October the comparable figure was L434.000.

means many persons have been priced out of this market as purchasers.

Weather also plays a part in' the number of starts that Will be made in any one month, and^ in. Febi/uary this was especially, true. For example, in the Northeast the decline between Janu-

The Tr^nT Tofecast of the STy: anr FebrtiaTy

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Department of Commerce, was 1,400,000. That always appeared on the high side, and now it is quite unlikely that such a total can be realized. Even some of the men In the department are beginning to question this early estimate.

There are jvarimis factors, of course, which influence the volume of budlng. One of these is the supply of funds, and the terms under which mortgages may be obtained.

At present it is generally agreed that there is no shortage of funds, and the interest rate on mortgages has shown only a very slight increase and no change at all in the most sections of the nation. The persistent drop in the number of starts, therefore, is not explained by any change in either the volume of funds available, or the terms at w^hlch it may be borrowed.

Another important element is the total cost of a house. We do not have an authoritiltive index on this, but there is no quesUon that over the past several years the trend has been upward. Land values have been Increasing, w^ages have been rising, and building materials and the fixedv.cqtiiiMnent which goes Into^om^ cost more and monT The gnanges have not been pectacular from one month to another, either in the aggregate o)\ by the individual items, but a house today is expensive, and that

cent: in the We.st the drop was 29 percent; in the North Central Region there was an increase of 12 percent; and in the South the rise was 3 per cent. The Department of Commerce states specifically; The very heavy rains in Southern California, particularry in the Los Angeles area may have contributed * to the sharp drop in the West,

Finally there Is the question' of demand. During the depression of the 30s there was relatively little home buUding, and this continued through the war. This created a backlong of demand for housing that was enormous.

This accumulated backlog has all been w^orked off. and then some. This does not indicate that everyone has the type of home he would prefer, but there is not the pressure for new houses that there was over most of the past decade,. To a major, extent the demand today has to come from those who are establishing families for the first time, from those who w^ant and are willing to pay for a^ better home, and to replace^ buildings which are destroyed or abandoned.

This aggregate demand should rise from year to year, but for 1962 It will be closer to 1.300.000 than 1.400,000,

Obviously private housing starts are only one part of the total construction picture. When (Continued on Page 5)

(Richmond News-Leader)

The solid merits of the committee system are being demonstrated in the Congress these days in the fashioning of a bill that will clear the way for privately financed communications in space. We have written of the plan several times before.'In brief, it calls for the launching of a series of communications satellites from w'hich telephone messages and television signals could be bounced around the world. The plan is bolder than the proposals for trans - Atlantic cables more than a century ago. If it works =^aiid .rBcJl-i .engineers .

are convinced it wall work a worldwide revolution in communications could be achieved in a very few years.

The communications industry last fall proposed a system by which private capital would finance, owm and operate the whole affair. Siieh liberal magazines a.s Reporter and the Nation have been aghast at the very idea; they want the government to put the satellites in orbit anc|, run the operation. President Kennedy earlier this year tried to carve this conflict down the middle; he proposed a Con-gressionally - chartered corporation that would be controlled by the public and financed in part by private capital.

This week the Senate Space' Committee unanimously approved, a plan that impresses us as the best yet. Under this plan, Congress would create a communications satellite corporation in w'hich stock u.vncr-ship would be divided equally between the public and the jn-

cause of instability In Europe . . .The Western Powers also want the remnants of the last war removed. But they want to do it in a lasting, safe and satisfactory way. by reuniting Germany. with Berlin as its capi;^ tal.

Soviet Russia does not regard the unilateral violation of an agreement as improper, because urftler the Marxist system, not morals matter but the rule of necessity. Whereas 17 years ago, it was all right to agree to what the Western Powers required of Soviet Russia because it was necessary "for Russia to receive Western aid,/Russia no longer sees such necessity at the present tii|^.

Furthermore, should Germany become united questions might be taised about the Ger-' man provinces of Poland and Czechoslovakia. Khrushchev expects to add to Communist territory not to lose any. The Western Powers, at great sac-

ternational communications companies. The stock w'ould be sold at a maximum of $160 a rifice, have enlarged the sphere

of self-determination throughout the world: Soviet RuSsla refuses to grant self-determination to Germany. This can lead to w'ar. because throughout European history, since the beginning of the fall of the Roman Empire, the Germanic peoples sought for and found a way to achieve freedom.

The weakness of the British position, how'ever, is that what a Marxist must interpret as the law of necessity, the British regard as the rule of reason. They favor endless conferences In the hope that Soviet Russia win see the hght r ^

This Chamberlain policy Is not due to 'cowardice; It is rather an inevitable product of British geography. The " mistake that Napoleon made was that he fought Russia instead of Great Britain on British soil; the mistake rthat Hitler made in 1941 was that he fought Russia instead of invading Great Britain before the United States got ready. The next w'ar must be between Soviet Russia and the United States, and Western Europe, including Great Britain, will be .squeezed berween those two giants. The British wisely but somewhat ineptly are doing what they can to prevent that from happening.

share (Mr. Kennedy had proposed $1,000 a share), in order to achieve wddje distribution. The board of directors would Include six chosen as representatives of the public, six as representatives of the private companies, and three to be named by the President.

Other refinements have been made by the committee in earlier pronosals..Under the approved bill, the investing companies could not use then investment in satellite.s, as a part of their rate base for domestic service. The object 1 - to lend inec^nt-iv - towtard-making the satellite system profitable in its own right. Both the new corporation and the individual investing companies could own and operate ground stations. Investment by foreigners .would be strictly controlled.

Senator Kerr of Oklahoma, who has been working patiently and intelligently for many months on this complex piece of legislation, describes the compromise version as *a product of negotiations and conversations ariiong all parties concerned. That is what the committee system exists -to provide. Now, with only three month.s of the Congress remaining, the important next step is for the committee to get its show on the road. Other committees of both House and Senate also have to be heard from. We venture a hope for no. delay along the line: Senator Kerrs bill rings a right number! It w'ould be a pity t .i encounter a busy signal now.

For Instance tht statement Is t>Tical of British thinking: It is true that the East German Communist regime is both w^eak and oppressive and that its economic planning has failed. It feels that the existence of a democratically governed (Continued on page five)

'-ear :;

abor nions

By ROGER BABSON

BABSON PARK. Mass. Most manufacturers, many merchants, and even some investors with whom I talk are disturbed about the labor unions. They fear labor will ruih our export trade which we need to stabilize our dollar, and reduce the profits of our businessmen up-., on whom our Federal Government depends for tax money. STRIKES NOW BEING THREATENED tJnlon leaders are facing in-, to the spring bargaining season with every intention of bettering the gains mfl/de for their members during the recent reces-sioh. IShe AFLrCIO is keenly aware of: The restraining influence of joblessness In spm areas: the fact that the consumer price index has remained practically unchanged over the past four months; and the growing reluctance on the part of employers to permit gains in labor costs. Laboi;.also recognizes the problems emerging from the spread of automation and its reshuffling of manpower needs.

Heavily stressed will be pro- . ductlvlty and the upturn In corporate profits. Both these fao-tors will ke exaggerated considerably beyond their true significance. Laborites have already given their members the Impression that productivity from early 1961 and on into 1962 has Increased at a record-smashing rate in many non--manufacturing lines. Actually, even the most optimistic estl--mates do not place the current rise per year at more than 2^ percent.

LABOR LEADERS RESENT GOVERNMENT INTERFERENCE Labors distaste for intervention by the Administration was once again quickly revealed when Labor Secretary Goldberg stated that the government -should define the national interest involved in labor-indus-try disputes and help settle any differences accordingly.

Union leaders Indicate they are going to push for wage gains and fringes that the White * House may consider inflationery, and they do not Intend to be curbed. Many union negotiators \rtll be seeking raises this year of as much as 5 per cent on the basis of productivity gains. Where employers clearly recognize that this is a misrepresentation of the actual.rise In productivity, firm resistance may mean strikes. The Federal Gov-* emment appears sympathetic to 2^2 per cent wage increases instead of the 5 per cent demanded with costly fringe ben'efits.

A wage hike of 24 per cent equals from 4c to 7c per hour according to the industry involved.

EFFCTS OF SECRE.TARY GOLDBERG Over the months ahead, large-scale bargaining is slated in aircraft, airlines, aluminum, communications, petroleum, textiles, paper, and railroads. Of particular importance are the current steel negotiations, since an , agreement long in advance of contracts expiration would en-'' courage similar government pressure in other fields.

If Secretary Goldbergs is successful in achieving an early settlement in steel, it will be met by ttnioff^drs it kind of intrusion into free collective bargaining. It would not be surprising. in fact, if some of the more radical unionists refused to co-operate in future proposed premature bargaining sessions to avoid last-minute disputes.

WHAT A U.S. AGENCY - - HAS JUST DONE!

While the above negotiations have been going on, a U. S. Government Agency has, for the first time, granted exclusive bargaining rights to a labor union to negotiate on grievances, safety, vacations, etc., but not on wages or the total hours in a work-week. The government is also asking for a no-strike pledge and no restrictions on race, color, or creed.

This important precedent was established In connection with a Department of Agriculture decision on March 8 that its 2,-472 meat Inspectors would be ' represented by a unit of the American Federation of Government Employes, AFL-CIO. The (Continued on pge five)

'Lconomy Also Has Bright Spots

3treng.th For Today

By EARL L. DOUGLASS

BLtLT-IN RETRIBUTION

We often use the word web when speaking of deceit. It Is like the spiders web which catches the fly for the spider later to devour. Sometimes we use the word Hrap in the same connection. ..The evil man falls into the trap of his own wdcked oritriving. God has laid down the plan of His universe, according to certain lines which seeni. among other things, t() include the punishment of evil by the evil Itself.

If we deceive, we are event-.4*ftlly.^.aught^ia.rtbe .

own deceit. If we lie, the lie comes back tp haunt us an(l - perhaps to drive us into further lying. If ^e set a trap for^oth-

'..f

ers, we are more likely than not to fall Into It ourselves.

Every v^ has a certain retribution buUt into it. If we succumb to that evil, the retribution is liable to overwhelm us. This is just another way of say-ing that in the world as God has created it evil to* a very large ,.<tent punishes itself. We do not have to wait for the heavy hand of God to smite* us. Nothing externa needs to come upqn us to remind us of the nature of our evil, and the disadygntage, and perhapr danger, in which It Involves us. - *

Evil* cannot cure itself, ohly .-Go4-*m. da ..lhai. BuLcyil . caa, punish itself.. And .when we are -tempted to any evil we need to bear ,ln mind that built-in retribution wlth-^which it is equipped.-

V,........

By ELMER ROESSNER .

Despite Commerce Secretary Luther H. Hodges lament that the economy is not holding up to the Administrations expectation, there are many bright spots ahead.

"Mr. Hodges s^id that government figures for the first and second quarters would be somewhat less than earlier estimates. This w-as'a sort of prepare-the-people statement, since firm statLstlcs for the first quarter will not be available for another week, and second-quarter estimates are three months away.

The government has been estimating a gross national .product of from $565 billion to $570 billion this year, and Commerce economists have been ^ taking about a $550 billion rate in the present tense. However, new estimates put the 'GNP for the first quarter at a rate of $548 billion, whl^ is still higher than anything efjie In history, even when adjusted for the ipbberi-neks of the 'American dollar.

mmmm ^

There Is a lot of promise in other areas.

The recent survey by the University of Michigan Research

Center indicating a high <le-mand for durables in the next six months is significant. The decline in the economy in January and February w-as, in addition to the weather, attributed to lack of consumer confidence. But if the Michigan figures are valid, consumers were eager to resume buying* There has never been a recession while consumer spending was rising.

The recent figures showing another increase In-the consumer price index in February has some significance. Consumers w^uld not have met those prices buyers resistance would have forced prices down If they did not have 'both confidence in the future and the money.

MORE CONSTRUCTION

Also significant is the fact that the^F. W. Dodge Corp. has fattened its prediction for con-

The Morgan Guaranty Survey .^ports that even If final January and February figures are uninspiring, some Jaggedness in the business, curv'e is inevitable, once recovery has passed its initial phase, and past expansions are replete with instan(> es of month-to-month setbacks which did not foreshadow' basic trouble.

The new tax bill, if passed In substantially its present form, will beef up industrial spending. The 7 per cent tax concession on money spent for new plants and equipment will prime such Investments, which is exactly what the government Intends. STEEL PEACE BENEFICIAL , The governments drive for more exports will have no immediate effect, although It may help by the end of the year. The legislation intended to make this possible and profitable ' not be enacted for ^ome time

struction this. year. Last Novem-

bef the reporting serpee pre- The settlement of the steel dieted a 7 per cent in^^e In wage question Is also helpful, constnicfion year, ifdw the - While it Is, true that stockpib Torecalst has ' Ihg th ahtl^ of" a strike*

per cent, for a tcital of $41 bll- leaves users with heavy inven-

lio. That involves a lot of or- tories, and while this may slow ders, lot of jobs. ' down orders during spring and

summer, the end result will be good. Avoidance of a strike means avoidance of losses of millions of dollar^ a day in wages and consumer spendingand that will add to the total economy.

When there Is a steel strike, the mills eventually make up for the lost orders, but the strikers regain but little of their lost pay and the economy recoups little of the lost sales. ATLANTIC CITY SHOWS HOW TO OFFSET STORMS EFFECTS

Atlantic Dty is showing other cities how to overcome the effects of a storm and. the resulting threat to business.

; The New Jersey resort town was hard hit by the spring Atlantic storm. Businesses rushed repairs and stepped up the big-name attractions planned for the season, which opens on Easter. The Steel Pier Music Hall has booked Linda Scott %nd the Glen Miller orchestra for Eptej. and Ricto Nel

son, Paul Arika, CliuDby c:hec1S:-ers,- the Everly Brothers and other stars have been signed up for the season.

A