Mondar, April SO. 1962

Looking for Businesi:

Lingering Adverse Public Reaction

The Bteel industry, a giant in the American economy, will not quickly recover from the one-two-punch dealt in recent weeks by the Kennedy administration.

Adverse public reaction to the abortive price increase announcement still lingers in spite ef the subsequent statements that the differences between the administration and Big Steel were smoothed over after the companies back away from the announced price increase.

Now with the, indictment of three steel companies, five company executiv^es and a trade association on charges of anti-trust violations. Big Steel again finds itself decidedly on the defensive in the public arena.

The steel companies have denied the charges brought against them, and the administration has asserted, there is no connection between the present indictments and the recent controversy over price increases. The fact remains that for the moment at least in the minds of many Americans the ^ steel industry has not one but two black eyes. If the government successfully prosecutes its case against electrical companies and executives, the entire steel industry will face a difficult uphill

Old Agreemen Not Beina Keo

By LYNN NISBET

PARK ROADSThe locaUon of right of way for the Blue Ridge Parkway across Grandfather mountain is not the only squabble the State of North Carolina has with the National Park Service. There is also failure of the park service to keep an agreement signed nearly 20 years ago for a i-oad from Bryson aty to Fontana Dam along the northern shore o Fontana Lake.

The agreement involved the National Park Se-vice. the Tennessee Valley Ac^hority, the National Forests, the State Highway Commission and Swain county. It grew out of develop-me^^ts when the Park Service gnd TVA took seme 44.000 acrc-of land for the lake and the park, including many "hies o paved road.s for which Swain county had Issued bonds and stih owed fo. The same deal required rcocation of hiriwavs a"d the Southern ail road track.

T'he new roed, ^ hich the pari service agreed to build as .<=0011 as nossible after World War II had erded was In partial pay-for th^ roeds dc'^troyed or inundated wjfhcut .eenpen-SHtian The road wcuri make the di.stance frbm Bryson City to Fontana juse 37 miles Beginning in 1946 the authorities in Swain county and the Statg of North Carolina have been insisting the park service keep its agreement The congies-sicna! delegation has persistently refused to live up to the obligation and now after nearly 20 years only two, and a half miles of the route has been 'authorized. Governor Sanford just thia week wrote Secretary of the Interior Stuart Udall and Parka Director Conrad Wirth renewmg demands for compliance with the signed contract.

GRANDFATHER - The National Park Servdce has been marking time even longer on the link In the Blue Ridge Parkway across Grandfather Mountain. The State of North Carolina acquired by gift and purchase right of way for the road In 1939. Almost immediately four miles of the eight mile link were completed. Work was deferred on the other section. Then the park service folks decided they wanted a route higher up on the mountain. and continued to hold up work on the route they had. On one occasion the park service asked the State to take the higher route by condemnation, and without waiting for action put bulldozers on the job to build the road. Meantime, a distribution of the assets of the Lin-villc Company had given title to Grandfather Mountain to

Hugh Morton, who began a long range program of development as a scenic attraction. Morton ordered the parkway workmen off of his land. .

The Parkway folks say the present right of way Is too low although it ranges from 4,-000 to 4.200 feet and is the highest point on the whole Parkway*' from Shenandoah Park to Mount Mitchell. The Parkway now is demanding not only a higher light of way that would come within 150 feet of the famous swinging bridge and other attractions built by Morton, but they are asking for a right of way of 3.000 feet on the side of the mountain as compared vn.ith the average right of way width of 350 feet.

Mertoi says this would cora-plerely destroy the mountain PS a 'esort or scenic attrac-.ion. and would mean utter was p of the hundreds of thou-'and.'^ of dollaA he has spent in bi'tiding roads, bridges, parkin* areas, assembly halls, etc.

apparently Morton has the law on his side and he has been supported by at least three Governors and their highway commissions. Furthermore, many people who know the area think he lower route is more attractive than the one higher up the mountain side.

GOVERNORGovernor Sanford knew' In a general way that there was a hold-up on construction of the parkway at hat point because of right of way problems, but he waa rot familiar with the details of the past historjy So when he urged the Park Service tq get along ^th compietine the Voad. Director Conrad Wirth came to ee him and told him the government was ready to build as soon as it could obtain a rieht of way. Sanford promised full cooperation. But Wirth did not tell him that they already had a right of way and had owned it since 1939. When Governor Sanford discovered that he withdrew support for another route, on the legal grounds that the State having already acquir- ' ed the right of way authorized by the General.Assembly it had no legal authority to exercise eminent domain in forcibly taking other land. He , insists that the Parkway be built on the right of way it owns asspeedily as possible.

Relations generally between the State of North Carolina and the National Park Service have been cordial and mutually profitable. In the refusal of the park service to build these two roads, around Fontana Lake and Grandfather Mountain, most North Carolinians see nothing but welching on contracts duly negotiated and signed.

to regain the favorable public image it obviously desires.

Even so, the fact that the steel industry has very recently taken a ^drubbing from the administration should not prove a stumbling block in the path of vigirous prosecution*^of the indictments that iiave now been brought. Neither should the recent denouncement of the steel companies by the President influence the decision in the cases that now go before the court.

In the interest of justice the two matters should be kept separatfi..Jfts much as possible. The differences between Jhe administration and the steel companies and executives over the matter of the price increase were based on the dive;pgent opinions of each. The validity of the present charges will be determined in a court of law, and solely on the basis of the testimony which will be heard during the trial.

Appears Shortsighted'^ After Recent Call-Up ,

For a nation which has so recently witnessed dramatically the impoi^iance of its state National Guard units in a time of emergency or crisis, it appears rather shortsighted for the Army to order elimination of some 475 such units throughout the country. \

It was last October when the Berlin situation degenerated to the breaking point that President Kennedy ordered to active duty soifle 110,000 reservists and National Guardsmen from the various states. These units afforded a quick build-up of Americas military strength for ready use in case a shooting war broke out in Berlin or elsewhere. There is little question that the availability of these forces to the United States on quick notice emphasized their importance to the nations security.

Does the Pentagon order to eliminate the 475 National Guard units indicate that the high brass feels there might not be another critical world situ; ation in which these trained troops would be needed on short notice? Does the Pentagon consider the National Guard units it proposes to eliminate ineffective so far as the scurity of the nation is concerned?

On the heels of the Pentagon order to reduce the number of National Guard units came the announcement that some 110,000 reservists and Guard.mien called to active duty last October will be released during the early part of August. Is there any connection between the two announcements?

We fifid it difficult to understand how an organization such as the National Guard, which was so important to the nations security a few month.s ago will now be subjected to a drastic reduction by the top military leaders.

Hopeful Data On Economy ,

By GEORGE SOKOLSKY

Tito Cant Be An Ally

Copyright. 1962, King Features Syndicate, Inc.

It must be accepted from now on that Tito, the dictator of Jugoslavia, who has taken more than a billion of our dollars, is an ungrateful cur, as they used to say In the dime novels. He is a plain bum who takes and bites the hand that gives him the hand-out.

He Is now at peace uith' Soviet Russia, having to all intents and purposes entered the Soviet Universal State. At the next Communist Party Congress in the Kremlin, It Is to be expected that Tito, wearing all his medals, decorated like a masquerader, will stand on the right of Khrushchev, an enemy of the United States. He will take Chou En-lais place, now that the Chinese Reds have become Albanians.

Those who continue to believe

that the Russians are not making political progress do not quite grasp what Khrushchevs objectives are and how he affects other Soviet nations.

Tito is and has always been a Communist. It has paid him to adopt the attitude of being a National Communist: that is, one who believes in the general principles of Marxism-Leninism but who also holds that this system can be adapted to each countrys history and traditions and thit it is not necessary to establish a Soviet Universal State.

Holding this, view, he formed a separate alliance with Nehru and Nasser and established the doctrine of neutralism which resulted in the Bandung Conference (1955) and which today influences the position of most Asiatic and African countries. Tito,, of course.

By R.\LPH ROBEY

Readers of th|s column know ^ that three of four times a year we hav^ an off-the-record dinner with top managenjent and outstanding private business economists to get their views on the outlook. There has just been one of those meetings and. as -always, it was most informa-tive.

At this dinner every .section of the country was represented and the discussion covered the entire economy. None of the menfefe^^U present would claim to be political experts and there were no forecasts in this field. Many of them, however, expressed dismay over what had just happened in the steel industry and some were quite vigorou.s in their criticLsm of the manner in which President Kennedy used his power and that of the Administration to force a rescinding of the price increase. This episode obviously disturbed them deeply, and raised some doubts as to the strength of the recoverv from hereon.

have declined for four months, jumped in^ March by 23 percent, to an annual rate of 1,-409.000 the highest since last October.

Seasonally adjusted employment reached a new high in March, and there was another slight decline in unemployment.

Retail trade has broken out of its sluggish performance and now is clearly on the upgrade. .Automobile sales also have taken a definite turn for the bet-

Other Editors Saying, Withholding UN'Tunds

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It never is easy to summarize in meaningful terms the views of such a wide ranging analysis of what is ahead. Perhaps the best expression for this particular meeting is cautious optimism. No one foresees a boom in the immediate future, and conversely no one predicted a downturn during the remainder of 1962. It is widely expected that the next decline will come in 1963, but even there is only questionable reasoning to support this conclusion.

This dinner, it is-worth emphasizing, was held immediately after a fairly large batch of reporls revealing increased recovery- over a wide area. For example:

Industrial production, as measured by the Index of the Federal Reserve Board, reached a new all-time high in March, and the Board .said that it appears the" increase is continuing in April.

Private housing starts, which

Personal income continues to advance and is at a record level.

Aggregate corporate profits for 1961 were a shade over $52 billion. That is, profits before taxes. The after-tax figure was only one-half that amount. And the rise in the total figure.con-tiiiued during the first three months of this year, but the rate of profit per dollar of sales is still distressingly small for business as a whole.

Gross national product in the first quarter was $549 billion. This is a new high, but it is the smallest advance from one quarter to another since the recovery began.

Now these data, both individually and collectively, may be interpreted in an encouraging manner, and the Administration is doing just that. But they do not warrant anyone throwing his hat in the air. and they do not indicate appreciable progress in solving any of the basic problems we face in this nation. There Is a long list of such problems among which are an im credibly bad tax system, monopoly power of labor union leaders. a continued squeeze on profits, too much unemployment, an international balance of payments deficit, and so forth, and so on.

Management and business analysts are keenly aware of these problems. Until-some real progress is made in solving these trouble spots, no one in management can be expected to become overly optimistic.

(Rocky Mount Telegram).

United Nations Acting Secretary-General U Thant said several days ago what should be common knowledge for those who --know anything about the U.N. organization. The U.N. chief said a powerful nation could bankrupt the U.N. by withholding its dues out of dislike for a U.N. peace keeping operation. That seems to be precisely what Russia and several other Communist bloc countries are now' doing.

Bankrupting the U.N. would be one way of destroying the world organization and that is the ultimate goal of the Communist bloc. The Soviet Unions share of the cost of the operations in the Congo and Micidle East ha.s been one-sixth. Cost of the operation is $11.8 million each month, and up to the end of 1961 member n-tions had paid only 65 per 'cent of the Congo operation and only 73 per cent of the Middle East costs.

Thant frankly has discussed the possibility of bankruptcy for the U N. TTie U.N. depends upon three Ms for the peace keeping operations it assumes: men. money and materials. If these three Ms are not forthcoming. then the future of the U.N. is quite gloomy. Those are the words Thantnhimself used.

Actually, the U N. is solvent on its normal activities and running behind only on the Congo and Middle East forces. This means that the U.N. would be in relatively good

shape financially if some of the delinquent countries would come through with their share of the costs.

It is understandable why Russia and some of the other Red nations would w'ant to see the end of the U.N. It is not easy to understand why some of Ihe Western nations deliberately set out to ruin U.N, prestige in its field operations by refusing to pay their share of the cost. That . is what France, for example, is doing.

Along this same line, Thant defended the idea of every country having one vote in the U.N. General Assembly, however lalge or small its financial contribution. British Prime Minister Macmillan and U.S. Sen. Richard Russell both thought it unfair. Thus, w'e have the spectacle of Russia not paying its dues, yet enjoying the same vote privilege of the U.S., which is paying far more than anyone.

Thants attitude w'as that in regard to representation in the context of their (member nations) capacity to pay, we should look at this problem in the ligLht of the practices prevailing in many countries. Well, what goes on behind national borders hasnt anything to do with what goes on in U.N. headquarters in New York. Thant has missed the point there; responsibility should be at least in proportion to the amount of money and effort each nation pours into the U.N. to make that organization a success.

was' not present at Bandung but hia Influence was there.

Assuming that half a loai is better than none at all, it was State Department policy during the Elsenhower Administration it is policy now, but less so, to regard the neutral countries as worthy of our economic and military assistance. As a result of his neutralistic gambit, Tito got more than a billion dollars from us.

But he has now come out into the open. He is not only a Communist but he Is an ally of Khrushchev. It would not at all be astonishing if Tito uses his hew relationship to go after Albania, a little Communist country' that lies adjacent to his but which is presently more allied to Red China than to Soviet Russia.

This must be understood about the Communist Revolution: it presents several facades. One is the fundamental, ideological Marxist-Leninist position on all phases of life and thought. This possesses the quality of religious ritualism and obedience. This side of Communist life iff the same with all Communists and there can be no distinct tion among^ them. However, as this movement operates, it breaks into four groups, the Orthodox Marxists who are represented by the Chlnese-Albanian group: the Right de-viatlonists w'ho used to be represented by Tito; the Orthodox Leninists represented by Khrushchev; the Stalinists of whom Molotov is the leader. The Stalinists and the Chinese-Albanian group tend to'" coalesce. Tito has' now joined Khrushchev.

The inner politics of the Soviet Universal State are in a constant state of flux. For instance, such satellites as Fidel Castro and Cheddi Jagan cannot be readily identified. They w'ill go as the wind blows. Such neutrals as Nehru and Nasser are frightened by the developments which must engulf them as they are helpless.

It is not sound to exaggerate the differences among these various groups and personalities: they are all opposed to democracy and capitalism. They all believe that the world the entire w'orld must be conquered by Marxism-Leninism: that the mystical, monotheistic religions have run their course, much as Christianity reduced the magnitude of Judaism and totally eliminated Manich-aeism. They are uncompromising in their assumptions concerning dialectical materialism. They only differ as to the best mechanism for winning the battle and who is to be the chief.

The error that Westerners (Continued on page five)

Caal In Civilian Defense

By ROGER BABSON BABSON PARK, Mass., I do not expect a nuclear war unless one starts by accident.

I do expect the cold war to last for some time, during which time fallout shelters will be constantly discussed. It is not expected that such shelters would protect us if our city or one nearby should be bombed. But a properly constructed shelter should protect from the faUout accompany- ' ing nuclear war, when some not allof our large cities would be destroyed.

STOCKING SHELTERS It is one thing to build a shelter; but another thing to stock it properly with food and the many other articles needed to make it livable for two or more weeks. For details, send to the Department of Defense, Office of Civil Defense, Washington 25, D. C.or check with your local Civil Defense officials. At best, only a few of my readers will build shelters. Therefore, I wish to write this week about what the rest of us will do. Here is some good advice. , -

I am urging my family and friends to seriously consider how much we all owe to electricity,our lights, oil burner, refrigerator, aftd often our cooking and other conveniences. Yet. whether or not we have a shelter, we would have no electricity if a nuclear war should start. Furthermore, those of us who would be compelled by law to remain indoors until the federal signal allowed us to go out should have enough food and water to care for our necessary requirements.

HAVE A DRIVEN WELL IF POSSIBLE Our first, expenditure should b for a driven well, to give an independent water supply. This would need a modem double-action hand pump to pump up the water. This pump should be located in the cellar, as near as possible to the water table level. Our city or town supply of water may be available in quantity: but it probably would be contaminated and dangerous. Whether boiling this water would make- it safe to drink will be told us by CivU Defense authorities via CONEL-RAD (either 640 or 1240 on y8ur radio dial).,

Until a comparatively few years ago, most homes had a coal bin and a coal-buraing furnace in the cellar; also, a coaJ-buming stove in the kitchen. That coal bln, fiUed with coal each fall, was a real safety deposit box. It could be more important than one at a local bank containing stocks, bonds, and our will, IMPORTANCE OF A FILLED 5OAL BtN Sucb- A-icoal bin. filled with coal, with A small jcoal furnace and small coal cookstove, should be a MUST "for every family not near a gas reserve. At the first shot of a nuclear war, our electricity would be cut off. Therefore we should today determine how to get on wlthput it. A bin full of the best small anthracite or cannel coal would be the answer plus some lanterns and a barrel of kerosene. Both the coal and the kerosene are merely stored heatwhich can be used to keep us warm, cook our food, boil our water, and supply us with the light which satisfied American families for over 100 years. Readers who have no coal furnace and can buy none locally may write for free catalog to Holland Furnace Co.. Holland, Michigan.

We are used to buying stocks and bonds to store in our safe deposit boxes; but during the months ahead I shall discuss stocks, bonds?'and coalwith a pile of hearts of pine wood for starting a fire vrtth matches. It is a shame that coal has, been forgotten. Someday there vdll be a war from which we Americans will suffer, even if it is not a nuclear war. Just as Dr. Einstein discovered atomic energy which led to the destructive bombs, so Col. Glenn by his triple orbit of the globe showed us where the next great war will be fought 200 miles (1.000,000 feet) above our cities.

WE SHOULD REVISE OUR PLANS Since February 20th we have been living in a new world.

(Continued on Page 5)

3BB Has A Friend In Court

Strenqth For Today

. By EARL L. DOUGLASS t ONE THING ONLY

St, Paul in writing to the Philippians declares: I count not myself yet to have attained. but this one thing I do. . He forgets the things that are behind. He reaches forward to the things which are before.

He presses toward the mark for the prize of the high calling

of God in Christ Jesus.

Lifes greatest .successes are made by those w'ho say 'This one thing I do Thomas A.

Edison did just one thing, or rather worked in just one area of life. The whole energy of his inventive genius wa.s turned into the definite channel of investigating electricity and utilizing it. Other invention.s bear his name, but the electrical inventions constitute the one thing into which he poured most of

his lifes energy. /

Lincoln, Lee, Carnegie, Ford here were men to reckon with in the nineteenth century. They were men of one object. They all had to forge'^ lot of things which past generations had a.ssumed to be true. They all had to rid themselves of encumberanees. They kept their eyes upon a dim light In the future. They pressed on towaTd a mark.

That young person Is well advised who decides to make himself or her.self a specialist of some variety. Success in this line may not bring you great fame, but as Emerson pointed out even If it is only the making of a better mousetrap the world will make a path to your door.

One thing I do. . ^ .1 press toward the mark for the prize.

By ELMER ROESSNER The United States Supreme Court, in a decision that was largely swamped by more important rulings last week, has turned up as a strong ally of Better Business Bureaus.

It upheld the Fedejal Trade Commission's ortleFrequlrini a luggage company to cease ticketing its products, when it knew that the products were customarily sold at lower prices The luggage company, as many companiess have done in many Unes, put tickets on its products that, the Federal Trade Commission charged. were about $2 above the price ordinarily charged by retailers in major Eastern markets. The ticketed price was from $12.50 to $22 an item.

If that was the margin of fictitious pricing, the luggage _ company was Indeed an inncH cent in this curious field. * MARGINS OlfTEN GREATER Better Bu.siness Bureau in-ve.stigator.s have .^potted factory-packaged tableware with gold stripes reading, $12 Ihe

set, offered for $7.95 and. if you were persistent, you could have bought them for *$4 95. Blankets and bedding are often offered in stores at half the prices embroidered into the goods at the factory. I have seen sets of kitchen utensils with 635 pric tags,

although the tools were worth only one-tenth that.

Better Bu.siness Bureaus and other organizations have been fighting this widespread practice. Honest merchants fight It more vigorously than others, since each offering of these phony discounts makes the square-shooter look like a gyp.

Neither the FTC or the BBB objects to a retailer selling at below the regular price. But they object to items factory-marked with a price that nev-.er was the regulai price. They do not object if a violin, regularly sold for $i)9, is sold for $49. But they say the public is being gypped when a violin regularly sold for $49 carries a label 'saying the price is $298 or even $99 if that isnt true.

PARTIAL DECEIT NOT ALLOWED

In this case, the luggage maker argued that reduced prices were offered by retailers representing only 37 per cent of its total retail sales. The FTC order was ill-founded, the company cpntended, because most of the retailers across the country were selling the luggage at ticketed prices.

But, the Justice Department declared, misleading a substantial proportion of the retail customers is not excused by not having deceived the oth-^ers. The relevant market area in question, it said, is where the customer, deceived by' false implication, buys.

In general, the Supreme Court has given the FTC full power to cite all manufacturers who use exaggerated prices on their goods. The fact that the so-called list price Is asked in Alaska is not a defense if most of the market charges less.

Thus a fight of a quarter of a century by Better Businss Bureaus, and by almost as long

by the Attorney Generals office, has been won in the Supreme Court. But until the authority granted is generally exercised, a housewife going into a discount store and liking an appliance should weigh the words of the salesman who points out a $145 price tag on the Item and offers if for $129.

A good step may be to tear off the price tag and say, My uncle Elmer told me about this, and then offer what she thinks it is worth say $95.

SHORT AND SIGNIFICANT BUSINESS NEWS ITEMS Tax collections show that smoking, drinking, travel and entertainment are increasing. Commerce Clearing House reports. . . .Service Leasing Corp. reports that more than 500,000 vehicles are on lease. . . .Billiard and pool balls sold to a manufacturer of pool tables are not exempt from the excise ;.,tax, the Internal Revenue Ser-vlce rules. . .The Syrian Tobacco Monopoly has introduced its first filter cigarette, called A1 Hamra.