Wednesday, April 25, 1%2

For Below The National Average

And No Fringe Benefits, Either!

Tar Heels should be encouraged by the increase forth in recent years represents only a token of In per capita income in the state for the year of what will be required in future years if North Caro-1961, but they should likewise be gravely concern- lina is to gain for itsielf and its people a per capita ed about the states relative standing with respect income and economic level that makes it average or-

to per capita income. above, rather than far below average, among the

The increase of $66 in per capita income in states.

North Carolina during 1961 indicates an improve- North Carolina should not be content with only ment, a move in the right direction. So does the token improvement from year to year in this im-fact that North Carolina ranked 42 among the 50 portaiit field. The rate of improvement must be states in per capita income rather than 44 as it did accelerated if the state is to achieve in' the reason-

the previous year. . able future the goals it has set for itself.-

In spite of this small improvement, however.

" -- ......

the per capita income in North Carolina remains ^ar below ,the average for the nation, and below that of the people in 41 other states. \Ve may take pride in the improvement shown in 1961, but the $1,604 per capita income for the state that year shows that North Carolina .still has a long way to go in its effort to achieve a higher economic level.

The Competent Voter Is Important To All

Opposition to the administrations effort to fix by-Congressional act literacy qualifications for vot-North Carolinians always have taken great ers should come from more than just the Southern pride in their state and its progress in many fields, states, it is inconceivable th^t the people of the state will

be content in the ^future to remain in so low a position among the 50 states in per capita income. It takes time to raise the general economic level of a state the size of North Carolina with its diverse economic interests. This diversity, while it is in some ways a handicap to efforts to raise the economic level and per capita income, also offers a broad potential for the economic growth North Carj^lina hopes for and is working for. ^

Although the state has made great strides in

The legislation is of tremendous import to all of the states . , . not just to Southern states who arc accussed of opposing the measure on civil rights grounds. The constitutionality of the proposal is highly questionable in that it would put into the hands of the federal government jurisdiction udiich is specifically reserved to the individual states.

From a practical standpoint, the literacy requirements which specify that a voter must be able to read and write are considerably more logical than a law which would require that he has completed

attracting industry, in diversifying its agriculture a certain number of years of formal education. If

and in developing its potential in other business fields, it is* apparent that we are just beginning to scratch the surface. The effort which has been put

A Good Job In

!?IoadDiscussina

By LYNN NISBET . ROAD MONEY Merrtil Evans, chairman of the N. C. Highway Commission, is doing a good job informing the public on the condition of the state's highways and the amount of money needed to bring them up to standard. It is commonly believed that one primary purpose in this educational pro-gram_ is to condition the people and the Legislature to accept a request for a $200 or $300 million bond issue. The suggestion is that. these bonds be issued and an additional one cent a gallon tax leried on gasoline to pay them off, this tax to continue only until the $200 milUwi bonds Issued by the Scott administration are paid off in about three years.

Chairman Evans makes a very plausible presentation. The trouble is that a number of the c(xutftk>D8 and premises he bases his arguments ailJ not stand up in the light of experience. In the first place, taxpayers have ccpie to realize that there is no such thing as a temporary or Emergency tax levy, either Federal or State, Once an additional one cent is added to the gasoline tax It most likely will remainip budgets year after year,

. A more serious error in the Evans presentation, and one which intentionally or not is a direct error in his explanation of the relationship of the tax to the price of gasoline. The picture he paints is not true.

Evans said the other day that the gasoline tax was the only use tax not governed by the price of the CMnmodity upon which It Is levied. It is not a percentage tax. but Is fixed on the quantity rather than the , value of the product. That much Is true, but his elaboration on the fact runs into strange ground.

MISLEADING Chairman Evans went on to say that the road tax levied on Gasoline had remained at six cents a gallon for many years while the retail price of gasoline had risen-from around 20 cents to more than 30 cents per gallon.

Lets look at these figures a little closer. In the first place the State road tax on gasoline

has been seven cents a gallon since 1949 instead of six. In addition to the road tax there is a quarter-cent inspection tax charged by the State, and the Federal government collects four cents a gallon. These several levies the six cents regular road tax. the one cent special bond retirement tax. the quarter-cent inspection fee, and the Federal four cents and we find that the total taxe.s paid by the customer at the filling station is IIV4 cents a gallon.

For several years the average retail pump price of gasoline has been around 30.9 cents per gallon. Subtract the 11.25 cents taxes from that and the gasoline itself cost 19.65 cents a gallon just about the same price it was at the close of World War I. and before most of the taxes had been levied.

Sure, the amount paid by the motorist for gasoline has risen from around 20 cents to 30 cents or more but the price of gasoline has not incre^ed much. Maybe gasoline can stand another one cent tax. Maybe the motorists would like to pay it in order to get essential road Improvements. But if the tax is to be related to the price of the product that price mu.st be figured at around 20 cents a gallon rather than 30 cents. It must be remembered also that one of the immutable laws of economics is the law of diminishing returns.

a voters qiiaHfication i.s questioned on the grounds of literacy, it may be much easier for him to prove that he is able to read or write than it would be for him to furnish proof that, he had successfully completed six or more grades of formal schooling.

The question, after all, is not how muchr formal schooling an individual might have had, but whether or not he is literate-and competent to participate in election of officials.

. 'We have gained the distinct impression 4hat many of those who have given their support to the administration proposal have done so because of the civil rights label given to the proposal rather than on the basis of the merits of the proposed legislation.

T'^ 60VT POLI THAT IT \NOOlt> BE HPATR/OTIC TO Givey^^ A RAi^e.

By HENRY HOWARD

One Extreme To Another

Tlie story is that one of Americas largest production If members of Congress from everv .?tate give corporations lost ,a valuable

as much consideration to the proposal itself as they noT\Jhhr*dSh"oT'Tn no to thq label attached to it, we are confident they executive, will reject this unworthy piece of legislation.

One Exceotion

Amona Leaders

CONSISTENCY? This little item was purloined from some newspaper which came to the office, the name of which has been lost so that credit cannot be given:

The other day the Communication Workers of America publication on page 5 presented an article on automation titled Think Machines May Wipe Out Jobs. Undermine Democracy.

On the next page was a report on how this union had installed a new electronic computer in its Washington headquarters to write checks, prepare financia! reports, analyze bargaining data, and keep subscription lists up to date for the union paper.

The Da3y Reflector

INCORPORATED

Published Every Afternoon Except Sunday Established 1882 DAVID JULIAN WHICHARD, Publiihar

Entered at Post Office, Greenville'. N C., as second claaa mail matter.

SUBSCRIPTION RATES By Carrier (In Townt) Week 30c

By Carrier (Motor Routes) Week 35c

BY MAIL, Payable In Advance

Greenville Post Office, Pitt County, Robersonville, Vancboro. Washington and Chocowinity.

Three Months ............. ;...... $ 8.7$

Six Months ........................ 7.00

One Year .. .................. 18.00

North Carolina (other than listed above) .

Three Month* ............ $4.00

Six Months ............................ 7JO

One Year .............. 14J0

Plus 3% N. C. Sales Tax All Other Outside North Carolina

Three Months ..................... I 4J0

Six Months ............................. 8J0

One Year ........... IOjOO

MEMBER ASSOCIATED PRESS Tht Asaodated Press la exclusively entitled to use for publi-cataa all news dispatches credited to it or not othcrwlae credited to this paper and also the local news published herein. All right* of publication of special dlspatchet. here are also reserved.

NATIONAL ADVERTISING REPRESENTATIVES ITioma* F. Clark Co Inc., New York. Chicago, Atlanta Member Audit Bureap of Circulation.

All advertlslnf copy must be received'at least one day before publication data.

By JAMES MARLOW

WASHINGTON (AP The elderly and the aged with one exception. President Kennedy are leading the world.

Kennedy at 44 is the only major world leader under 68. The rest range up from there to West Germanys Chancellor Konrad Adenauer, 86.

No wonder, then. Kennedy seems so full of bounce while the others, as the years slide by, appear more and more with-dra\^Ti.

Most of them may be gone by the time Kennedy finishes a s^ond term,-provided he seeks and wins rc-clection. If they are, the world will be in . for some rearranging which may make these days, disturbed as they are, look tranquil by com-pari.'ion.

Here are .some of the other leaders and their ages and the problems their passing can bring: Soviet Premier Khru.sh-chev, 68; -^^firitish Prime Minister Harold Macmillan, 68; French President Charles de Gaulle,' 71: Indias Prime

Minister Nehru. 72; Red Chinas leader, Mao Tze-tung, 68; Nalionali.st Chinas President Chiang Kai-shek on Formosa, 74; Yugoslavias President Tito, almost 70: and Spain's Generalissimo Francisco Franco, 69.

Under Khrushchev the Soviet Union has made gigantic industrial, scientific, and military progress. He has been a hobgoblin for the United States. He Is no less dedicated than Joseph Stalin to world domination by communism.

But he .scrapped the crudities of the dictator and Stalins barbarisms: he rattles missiles, but he also preaches peaceful coexistence. And he has always stopped a good bit short of precipitating war.

His passing could mean a shuddering experience? inside and outside the Soviet Uniflm particularly if his succe.ssoW wants a retuni^to Staliiis tactics. at home arid abroad.

De Gaulle has been a one-man show and a one-man boss in France for four years. The people, confronted with civil war and political chaos when he took over, gave him a blank check to save them all.

He has so far. Re.sentment again.st him Is building up. There is no reason to think judging from previous French hl.story, that chaos and civil war wont explode when he disappears. No succe.ssor ls*in sight.

Of all the leaders outside the

United States the passing of Macmillan in Britain and Mao Tze-tung in Red China may cause the least 'commotion.

Britain, with its long democratic tradition, may not have much trouble replacing Macmillan with some one very much like him.

The iron wills and rigid discipline of Mao Tze-tung and the men around him. developed to brilliant degree in 20 years of preparation, is what made the Communist takeover of China possible.

His right-hand men will still be there when he goes. There has never been any talk of rivalry among his possible heirs. The transition from him to one of them may be easy and perhaps is already arranged for.

Adenauer consistently steered West Germany into partnership with the West and away from the Commimist world. His successor, whoever he Is. may be less enchanted with the West, prefer a neutral position, or even a new' relationship with Moscow. Here lies the chance that Adenauers going may shake the Western alliance to its roots.

The United States has put a lot of effort and money into supporting and protecting Chiang Kaishek on Formo.sa. He has kept alive the myth he is still the legitimate boss of mainland Cabina.

One guess is as good as another about Yugoslavia when Tito goes. He split with the Soviet Union, but. while accepting We.stem help, poses as a neutral.

As for Franco, he has been a dictator for a quarter of a century. Spain had a fierce revolution In the 1930s. It may have a Worse one again.

Nehru has led India dow'n a road of democratic socialism. But that's no assui'ance that his succe.s.sors. In a country as W'retchedly poor as India, will do the same.

For years, the story has it, this exeoutive not unlike a political dictator in this respectstudied product designs very carefully until he, all by himself, screened from various designs submitted by the design department a final and absolute choice.

On this executives iron-qlad decision hung the likes and dislikes of the consumer public. Perhaps the public was just as happy, since it was denied a glimps of alternatives. There was no, choice for customers unless they should turn to another brand.

This procedure of ruling the product design depart

ment with the quite undemocratic iron hand was adjudged to be valid by the qualified judges. Its validity wa.s proven by consistent ascent of the critical line on the sales progress chart.

But, the death of this ironclad executive was mentioned*. Yes indeed. And what then was the policy of the corporation in selecting its product design? Who did the qualified judges pick to succeed the Design Dictator?

Nobody.

Tliey did the thing that is so , unmistakably American. They zoomeci to the opposite extreme.

Now (and tliis is a true story so far as I know') each plant operated by the corporation has frequent occasions to act as host to an elaborate little display with accompany

ing ballot boxes.

Usually to be found in a corner of the plant lunchroom, the display includes six oF so alternative designs of a particular product to go on the market soon.

A supply of fiber washers is situated beside the ballot boxe.s that are arrayed beneath the different designs. Each alternative has its owm box.

Corporation employes in

spect the various designs and ascertain their choices. Each employe then speaks his

opinion with a washer.

When the balloting is completed, the washers are counted to determine which design w'ill be marketed.

Theres the drastic switch. From one ,extreme to the

other. And, chances are, sales progress charts are about the same as before.

As we know it in America, thats business.

Other Editors Saying ;Rise On Arnis Of Books Opinions

Quote

True scholarship, the spirit of learning that a truly great college or univer.sity mu.st nourish, is undermined by sloven work. The faculty has the basic re.sponsibility for weeding out the playboys and the misfit.*: who are taking up the valuable space that could be occupied by the more deserving.Macon (Ga.) Telegraph.

(Charlotte (N. C.) Observer)

The National Educatiop Association has a favorite term for slum area children who do not, as a rule, perform as well in school as those from areas of higher income and better cultural background, NEAs definition: Disadvantaged .children. We have no quarrel with that description. The area in which a child iadrc^ired and the influences brought to bear upon his young life are strong factors in his education.

But we were heajrtened by an article in the April 14 issue of Saturday Eveiig Po.st. Its entitled Reading: A Way Upward. And it documents the fact that school officials in St. Louis are showing that education, especially the ability to understand and appreciate good books, provides a road out of poverty for the disadvantaged. This presuppo.ses that more job opportunities will be provided. The article has to do with the amazing progress of children who live in the midst of St. Louis urban blight. All except 5 percent of the students in the district are Negro, mo.st of them being of southern ^origin.

Credit for the great increases in reading speed and comprehension, with concurrent improvement in other studies, must go largely to Samuel Shepard Jr.. director of the 23 elementary schools in the district. He uses three principles hard work, high morale and good leadership in rescuing these children from the economic dungeons to which ig

norance consigns the disadvantaged in later life.

Shepard and his assistants operate on the principle that they must face reality. They dont look for gimmicks or shortcuts to learning. They outline for the children and their parents the future stakes and "in-.spire them to work. The district director is conscious that there Is an indisputable relationship between what a man knows and how much he eanis. So he demands a first-rate performance from his students. It is a hard-headed, unsentimental approach to a thorny educational problem.

One of Shepards keys Is the Parents Pledge of Cooperation. Mothers and fathers are asked to sign this promise to carry out a simple, practical list of tasks in helping their children to leam. They mu.st have a set place to study. They must be encoui*aged to make fullest povssible use of libraries. And they must have dictionaries and other learning aids in the home.

Shepards prescription for the dii^dvantaged is one that is sometimes overlooked in a society that spends much time deploring slums,, poverty and ignorance but believes money to be the only antidote. He prescribes hard work on the part of students and parents. He furnishes the inspiration and the incentive. And he stays behind them until results are obtained. Maybe more schools in disadvantaged areas need to get on that road.

in

If a man empties his purse into his head, no one can take it from him. Benjamin Franklin,

Wlien men are most sure and arrogant they are commonly most mistaken, giving views to pas.sion without that proper deliberation w'hich alone can secure them from the grossest absurdities. David Hume.

The federal governments deficit for the fiscal year ending last June was $3.9 billion. The Administration estimates the deficit for the fiscal year ending next June at $7 billion. Others, Senator Byrd among them, think it will be higheras much as $9 billion. What next?Industrial News Review.

GOP is

n Neec. Of Issue

By GEORGE E. SOKOLSKY Copyright, 1962. King Features Syndicate, Inc.

Up to that press conference on steel prices, it could be said that the principal opposition to President Kennedy came from Democrats on special issues. On the whole, the Republlcan.s took to the President and tended to avoid. opposing him and his program.

One reason for this attitude was that, except for Senator Barry Goldwater. the Republicans lacked effective leadership, neither Dwight D. Eisenhower, Richard Nixon nor Nelson Rockefeller offering anything that stirs mens hearts. Also, the nature of the Cold War requires sincere national unity and Senator Everett Diricsen provides every evidence of that.

President Kennedy was achieving a unity perhaps not known since the era of goodwill of the Monroe Administration. The public was weary of the trickiness of the Roosevelt Administration, the blatanty of the Truman Administration, the emptiness of the Eisenhower Administration. The Kenne-dys presented a picture of imagination, charm, enthusiasm, which captured the sympathy of the largest part of the country, although many Republicans had their fingers crossed.

This is, after all, a two party system even if one of the parties has been left headless. The Presidents furious response to steels price rise won him an immediate victory, but it gave the Republican Party what it lacked, an issue. The issue is the rights of* private property. After all, the U. S. Steel'Corporation is not owned by one man or even controlled by one person. It is owned by about 300,(KX) persons and institutions, some of them very wealthy, others posse.ssing few shekels. The Presidents anger with the ineptness of management was perhaps justified, although It would have been better had the President u.sed a rapier Instead of a sledge-hammer. The Republicans will say that the President opposes the profit and los.s' system. What is his substitute?

An elderly reader from West Springfield, Pennsylvania, writes me, In obvious distress:

We boast about the Land of the Free. What freedom have We left? I suppose we will wear meters on our noses and pay for the air we breathe before long.

The writer of this letter says that he and his wife are in the 80 s,, which does not make them old fogies any more than the young men about the President are children, and each has only one vote on Election Day when an opinion may be expressed in a manner that counts.

President Kennedy must take reparative steps to win back that popular unity which so strengthened his position in his European negotiations, a foreign official, wise in such matters, a.sked me smilingly what I would think of it all if I were In the Kremlin waiting for my chance as a cat watches a mouse? The simile 'v^as apt. The Russians play for time time when the United States seems to be soft or disturbed.

It is sound politics for the United States to keep its distress behind closed doors, as when ^ husband and wife quarrel. In public, it is always unseemly; in private, it may lead to reconciliation and even heightened affection. The Republicans went along with Kennedy because, in the clrcum-tance, there was nowhere else to go. Now, the Republicans have elsewhere to go, namely, to the support of private enterprise as an ideal of life.

My gjiess would be that such excitements as may be caused by Senator Estes Kefauver will not go far. It is impossible to produce steel efficiently except by the expenditure of hundreds of millions of dollars. At a time like the present, It is as ridiculous to disrupt the steel In-

An Atlantan, late for church ustry as it was for U. S. Steel meeting, swung his big car into a filling station and de

manded Where ^ is Christs Church? The surprised attendant scratched his head a moment, then said: Mister, the big church at the head of the street is Mr. Willinghariys, the one over thar is Mr. Pikers church, and that one thar is Mr. Andersons churchLord Goodness, I dont believe Christs got any church here! High Point Enterprise.

nf

to arrest inflation by such methods as his economic advisers recommended.

The Republicans face the problem of mobilizing public opinion in support of a program and a leadership. This party cannot find public support on tlie issues of the 1930 s or even the 1950's. A new generation of voters view many problems from altogether a different (Continued on Page 5)

now M

r

Jox Does She Pay?

By El .MFR ROESSNER

Strength For Today

. Tax experts all over the country are scratching their heads, largely hairless, over the question of how much taxes Princess Grace of Monaco will pay

on her income for playing the

By EARI. L. DOUGLA.SS SOI RCE OF MUCH POWER

Are you filled with .self confidence or are you filled with a haunting scn.se of insecurity and frustration? Confidence means a state of mind characterized by ones reliance on himself. It is a feeling of assurance and self trust. This sort of thing can. of course, go to an extent where it becomes a tremendous liabllltyy-The person all swelled up with a sense of his own importance is ridiculous in the eyes of his, fellows and a terrible liability ' so far as his own future prospects are concenied..

But nomial self confidence, belief that one Is able to do in 1S life what needs to be done this Is wholesome, normal

and something which we should all possess^ Let us always take the position that no matter what^ we have'to confront, we w'ill be able to handle it. Part of this confidence should arise from the realization that we have plenty of power within us if we will only use it. Most of all' do ^'e need to realize that when we have done our best there is a good God w'ho presides over the universe and who will reach down and guide us and give us the lift wo need.

Let us not grow discouraged amid the trials, sorrows, pre-plexities, and problems of life. God did hot create ns for failure but for achievement. f

Self confidence In the b e .s t sense of the tenn Is justified In every normal life,

title rble iir the movie version of Mamie.

This much is certain; Alfred Hitchcock says she w'ill earn about $1 million in her return to the movies. Princess Grace has announced that she W'ill give the proceeds to charity.

To the questions, What will she actually net? and Will charities get a cool million? depend on enough variables to give a Philadelphia lawyer ulcers. f

WHAT IS STATUS?

Here are some of the factors that enter into the calculations;

1. 1s Princess Grace a citizen of Moneo or the Unite States? Since there Ls no re-poit^ of her renunciation of American citizeaship. It i.*: as-

will be made in the U. S. and how much out of the country?

3, Is she to work on a salary or other arrangement?

4. Is she an employee of a corporation, and is it a charitable corporation?

Depending on the answers, her taxes might run from dollars nothing to almost all of her reported million-dollar take.

HOW IT WORKS OUT

Prentice-Hall experts offer calculations on both ends of that scale:

Suppose Princess Grace is still an American citizen, working for a straight salary of $1 million for the movie and intends to give all that is" left to charity.

She can deduct expenses, say $.50,000, and she can deduct $600 for each of her two Childs but only if she can show' tltpj' are American citizens ojiit that she has been providing

That would leave about $950,-OX). She w'ould be allowed a tax-free charity deduction of up to 30 per cent, or $285,000. Since Grace Is assumed to have a large wad of American securities. she could be paying th top rate, 87 per cent, on the i taxable remainder, or $604.650. leaving $86,450 more for charity.

The bieak would be:

Grace for expenses Income taxes Charities 371,450

ON THE OTHER HAND But suppose Her Highness, flanked by tax experts, made this deal: She would sign a contract to work at the direction of an American charity for $1 a week and expenses. Could the charity then make a contract with Hitchcock to lease her .spnicps for .50 weeks for $l million?

Perhaps. That sort of arrangement was once granted Eleanor Rijpsevelt, but later rulings

6.50 43.50 949.950.00 In-between pay may

more than half l|ieir support an unMkely assumption. She

could deduct another $600 for ^ would wnjiit it only if she .sutiied. that she ha.s du'al cltj- .^jprince Rainier, but only if his" w'cre a regular employee of the zenship. ^ Income is le.ss than that, an un- charity. How ever, under the

2. How\ much of movib likely premise. ^ specialX circumstances involved,

a way might be found to permit it. Then the table would look like this:

Grace for expenses $50,000 Graces salary, less 87 percent Income taxes - Charity There are many situations. Grace's run over more than one tax year. Part of the picUiiT'may $50,000 be made outside of the United 578,.550 States, with proportionate exemption of Graces pay. Payments may be spread over the income-producing years of the picture, sharply cqtting the tax liability. Payments may be made in stock options, cutting taxes to capital gains rates.

Grace might be working as an employee of a tax-free Mon-aga.siSue corporation, but in that ca.se it might be regarded as a holding company, which would wipej)ut the tax advantage.

In short, Grace can probkbly determine how much or little will be paid in taxes. Tax laws were written for girls like Grace

J