Suturflay, June 2,

Good Basis For Hodges Proposal

The Forgotten Old Man-

Commerce Secretary Luther Hodges, who on occasion has been"^accused of being out of step with the new frontier philosophy of the administration of which he is a part, n^ay have beconve the center of a new controversy with his assertion that there should be a speed up of action pointed toward a tax cut this year.

Secretary Hodges made the assertion in connection with the steep stock market slide early this week. His statement^was rebuffed later in'the week by Secretary of Treasury Douglas Dillon who declared Hodges does not have administration backing in his call for an early tax reduction. More than that, Dillon left the vivid impression the sentiment expi'essed by Hodges is not shared by other cabinet members and high officials irt the Kennedy administration.

In his statement. Secretary Hodges called for the tax cut and for other major tax revisions which would stimulate business in the United" States. He made his assertion in the face of the stock market tumble, and likewi.se in the face of an estimated $7 billion deficit in federal spending during the current fiscal year. Dillion and other members of the administration have declared that a balanced federal budget is in prospect for the coming fiscal year, but will be possible only if there is a continued business upturn projected on the present tax struc-4ure.

With its plans for increased ^spending during the next fiscal year, the increasing pressure for the Kennedy administration to get government opera tions back into the black, and the slim prospect for a balanced budget even with the present tax structure, it is not difficult to understand how Hodges statement ruffled the feathers of othei^' in the Kennedy administration.

Notwithstanding these, however, the assertions of the Secretary of Commerce are sound. A realistic

overhaul of the present tax structure is sorely needed. In many respects the structure is antiquated, jumbled conglomeration of ideas'that have been put into effect from time to time without careful evaluation or coordination. At a time when it is really dipping into deficit spending to finance operations, and has plans for greater future spend.-ing, it is not surprising that the administration is reluctant to entertain any proposals that may result in reduced revenue even on a teriiperary basis. From the longrange standpoint, the proposal made by Commerce Secretary Hodges should not be disregarded. It has merit which deserves careful consideration. -.....

hospitalization

UNDER. .

medicare

Swiftness Of Hanging

Was Most Surprising

The death of Adolph Eichmann at the end of an Isrcali rope did. not come as a surprise to most people who have followed the saga of Eichmanns arrest and trial for his role in Nazi extermination of six million Jews.

Perhaps the most surprising thing about the former Nazi chiefs execution was the swiftness with which it was carried out following the rejection of his last plea for clemacy to President Izhak Ben-Zvi of Israel. .

Foreian Couple

, Although there is little question about the dorn-inant role Eichman played in the planned extermination of one race under the Nazi regime, the legal implications surrounding his capture and subsequent trial by Israeli courts will remain points of discus,sion among attorneys for years to come.^

Except for the discussion of *the case which are certain to crop up from time to time in future years, the Eichmann case has now ended. The master strategist who supervised the attempted extermination of a specific segment of the human race has paid the supreme penalty for his atrocities.

vaae

By HAL BOYLE

!i^lannina Keturn kusk

ily

oe Colleae Is In Demanc.

By WILL1A.M A. SHIRES

VISITORS A young couple from West Germany visited briefly in North Carolinas capital city by chance rather than by design the other day and liked what they found.

They plan to come back aomeday, perhaps next year, and stay longer and see more of North Carolina something which the state and its tourist industry has been trying to promote among thousands of Europeans.

It is fairly safe to assume that between now and next Spring the young couple from Germany will tell others about America including the brief stop in North Carolina. And they may be as effective as the travel agents In Frankfurt who were contacted a few weeks ago in personal visits by North Carolinians interested in tourist promotion.

It does not reflect one way or another upon the recent N. C. Travel mission to Europe because. in fact. Otto and Ingrid Ketter had not heard about the mission nor the program aimed at increasing North Carolinas tourist business from abroad. It was purely by chance that they got off a bus in Raleigh.

The fact that the Ketters came to North Carolina at all does prove the point that Europeans these days are going abroad, to new places, more and more of them to Amertca, and that they have the money and leisure for travel.

CONTRASTS - This young couple, good-looking studious Otto and his attractive blonde wife came to America primarily to visit New York and Washington and to see Florida. They flew to New York, then chose to travel to Florida by rbus to see the country and make stops.

Otto Ketter is an' electrical engineer back home in Essen, which is an industrial city in the Ruhr, and he was impres.s-ed with the clean air and wide open space of the U.S. coun-trjside.

They walked and window-shopped in downtown Raleigh after dinner, and wondered

where the people were. Suburban living was a new experience, and after New York so was the absence of downtown nightlife. In New York. Otto observed, there were many people and few smiles. There were bright lights and sad faces.

In North Carolina, they noted, things were not so hurried. Things were not so crowded. After hours, the business and commercial district was emptied of people who went to homes in the suburbs or outlying residential districts.

On Fayetteville street in the morning, Otto and Ingrid found people cheerful, friendly and smiling. They were greeted and spoken to. Their English was limited, but flawless, and Otto thumbed through a thick little German - English dictionary. They visited shops and restaurants. In a Fayetteville street bank, they met Gerda Pleasants, a native of Germany who is the wife of Wake County sheriff Bob Pleasants.

CAPITOL A high point of the visit was the walk up Fayette vle street to the Capitol and inspection of the building. They found the House and Senate chambers intere.sting. but were more fascinated with explanation of the bicameral system and the legislative process, and also in the fact that the legislative chambers and even the office of the governor of the state were open to anyone 'Ivho cared to come in.

They met and visited with several state officials, a n d, toured the Hall of History. They were especially interested in North Carolina's geography, location of the cities, industries, the mountains and historic locations.

The network of highwa3';s across the state was impressive to them, and it came as a -surprise to them to learn that North Carolina has Indians and Indian towns.

They signed the register. Otto and Ingrid Ketter.

Jansennstrasse, 28A, Es.sem Ruhr. Germany, and loaded themselves with North Carolina travel folders. Including one printed in the German language.

Shows Anaer

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%

Bv JAMES M.ARLOW

WASHINGTON <AP Ever since he took office Secretary of State Dean Rusks press conference remarks have been so calm, unexciting, generalized and obvious that .some newsmen have fallen, asleep during the sessions.

This was because Ru.sk, who work.s in the closest collaboration with President Kennedy, seemed to regard himself more a.s the navigator of the forei^ policy ship than the captain.

There has never been any doubt that Kennedy is the captain. The President has made the big pronouncements.

Thursday for a change Rusk showed real irritation at Kennedy administration foreign policy critics, particularly when told Sen. .Barry Goldwater, R-Ariz., had accused the State Department of advocating a no-win *rather than a victory policy in dealing with communLsm.

After citing all the problems the administration is trying to solve. Rusk called on the critics to offer some alternatives, instead of just criticism, if they have alternatives.

This moment of anger, so"contrary to Rusks policy of deliberate calm, is not likely to be repeated .soon. If it were, his news conferences would be a little livelier.

His generally unheatecl and unsensational dealings with the press have made it a little hard for newsmen to get used to after being exposed for so long to a more colorful and flamboyant predecessor. John Foster Dulles.

In his almost year and a half in office Rusk has never once used such provocative statements as Dulles, agonizing reappraisal or massive retaliation.

Y'et, both men have had one^ thing in common; A feeling that they had to move around the World fast and often. But even on this pai-t of his job Rusk used a soft-pedal even before be got it. n January 1961, when the Senate Foreign Relations Committee was questioning him before approving him, he was asked it he planned to spend most of . his time in the department and let amba.s-sador.s do the work abroad.

' Came the typical Ru.sk statement which closed no door.s on whatever he might decide to do.

I do believe that the .secretary has an important role in the department, but sometimes has an important role, outside it. he said.

And there was This when a senator asaed him what the lanv Kennedy administration planntd to do. after it took office, about a couple of American airmen held captive by the Ru.ssians;

I think.'' Rusk said, it would, be iinporiant lor the new ad.mini.stratioii to miike eve; y

effort possible to obtain the release of these two airmen; The Russians released them five days after Kennedy took office.

W'hen asked why Rusk has refrained from trying to make a more personal impact on the public mmd, one of his aides-said:

He hopes to be judged not on any single accomplishment but on his total performance so that when it comes tirne for him to step out it can be .said of him that he did a good job In short, he has insisted upon operating as a foreign policy technician. This explains why he has been in no fights with Congress as Secretaries Dulles and Dean Acheson were or any publicly known quarrels with Allies.

NEW Y'ORK-fAP) Is Joe College getting spoiled?

Many personnel executives think he t.

University graduates today are not interested in starting at the bottomthey want a job as near the top as possible, grumbled one executive.

Most of them dont ask what opportunities lie ahead. They want to know Whats in it for me right now? They d about pension jgrpgram^ ical care, borfuse^^ ahd of fiinge benefits.V^/

They dont want to live In small towns. They dont want a job that requires them to travel from home much. They are le.ss intere.sted in what they can do for the corporation than in what they can get the corporation to do for them.

iquire

med-

kinds

Sometimes theyre so choosy you get the feeling the corporation isnt hiring themtheyre hiring the corporation.

There is no doubt that ever since the World War II life has been getting rosier and rosier for Joe College as he makes an al-mo.st effortless step from the campus Into business life.

A recent survey by the Family Economics Bureau of the Northwestern National Life Insurance Co., indicated 1962 graduates will get starting salaries $20 to $30 a month higher than tho.se of a year ago.

And a Ph. D. degree Tiolde.r with .some experience could expect from $900 to $1.000 a month.

Ah, me; Those figures awaken a feeling of w'ry nostalgia in those of us who were graduated just a generation 30 yearsago.

It was a far, cruder world that faced the graduates of 19,32. No personnel scouts from big firms stood in line to ask how they could make us happy.

The survey showed beginning salaries ranging from $450 to $.500 a month awaited liberal arts or business school alumni. Graduates in engineering or science could look forward to even more$565 to $580.

That was still in the pit of the great depression, and no one seemed to want usour alma mater, our parents, or the outside world. A sheepskin was no automatic passport to employment. You couldnt even look forward to a corner on which to sell applesthe best corners were already taken.

Yet. he hasn't had a quiet moment. Always there has been Russia, and Red China, in addi-, tion to Cuba. Laos, Viet Nam. Latin America, the Congo, dis-arament. nuclear testing.

His time in office has left marks on him. He looks older, a little more tired. He talks with conviction, never with pa.ssion. The anger he showed Thursday was hardly more than a temporary detour from urbanity.

Other Editors Saying. FDR Jr. Gets A Tax Bill

(Richmond Times Dispatoh)

Ooinions

Brief

A dollar may not do as much for you as it used to; but you dont do as much for a dollar, either. Maple Shade tN.J.i Progre.ss.

Gjvcn an honest chance th.e railroads could become the large,st industry in the nation today, and undoubtedly one of the mo.st important. Sylacauga News.

Any person who is always feeling sorry for himself should be. The Dubuque (Iowa* Telcgraph-Herald.

The modern mans idea of prosperity: 1912 taxes. 1928

dividends, 1932 prices and 1962 .''iilaries. , Rockingham Post Di.spatch.

If e\ery taxpayer liad to pay an ocmal share of the total national 'debt, it would come to S4.949 apiece; $107 more than at this lime last year. Tempo (Ariz.) Daily New.-.,

We sympathize with the tax troubles of Franklin D. Roosevelt Jr.. really we do. The Internal Revenue Service says that in 1958 Mr. Roosevelt reported a taxable income of $29.026 His income was really $93,051, they say. .so he still owes $38,736.

Well, before we chalk him down as the blackguardly scion of a famous father, it would pay to look into the IRS charge. Mr. Roosevelt has no secret income from opium sales in Hong Kong at all: all of the figures were fully reported on his tax returms. ,The dispute is about which column the figures belong in. The largest amount at issue. $45.409. came from a partnership in which Mr. Roosevelt was involved in an automobile agency. Mr. Roosevelt says that this money was actually received by him in 1959, and it was reported in that year, and .taxes paid on it in that year. IRS says thgt even though he didnt receive it, he earned it in 1958, and it should have been reported on the 1958 return.

The other $18,615 in conte.st was received from Dore Scharys play about the elder FDR and his family. Sunrise at Campobello. . The younger FDR, who was of course portrayed on the stage, makes the pointand rightly, W'e think that tMs sum represents compensation for lo.ss of privacy and actual damage. It is not income, but sale of a capital a.s-,set. Capital gains are taxable at the relatively piddling rate of a straight 25 percent.

We sympathize with 'Mr. Roo.sevelt, but it is a strange

twi.st of fate that his father Is also the father of the progressive income tax in this country. This tax law' has become so complex in its very nature that evpiy day citizens with names ^riess illustrious than Roosevelt are summoned by agents of the IRS. These unfortunates are not necessarily people who are unscrupulously shii'king w'hat they owe those in higher brackets already are paying heroic taxes and, they understandably don't want to push their heroism farther than the law demands. But sometimes it Is impossible to *1611 what the law demands, and more often the plain meaning of the law hinges upon some obscure ruling that might or might not be held to In a different case. We dont know whether Mr Roosevelt is well-fixed or not, but to many a man a sudden tax bill of such epic proportionspresented four years latercould mean disaster. Our society lives in an advanced state of despotism when mans legitimate property can be threatened by an overzeal-ous bureaucrat w'hose breakfast perhaps w'eighs heavily on the morning stomach.

We live in such an age. The frightened but tax-illiterate citizen now runs to a tax-advlser, as in darker ages the ignorant paid a fee to the Scribe. As sophisticated a man as Franklin D. Roosevelt. Jr.. fmds his name blackened even If his lawyers win a favorable settlement. He typifies the plight of the American today, but his name makes the irony more bitter: the sins of the father are visited upon the .son.

To cite a personal example, it was a full year after graduation that I landed my first job. It paid all of $62.50 a month, and I was so glad to get it I could have cried in gratitude.

Two and a half years after leaving college I had worked up to $100 a month.' I had been away from the campus 11 full years before I got up to $100 a week.

Maybe Joe College Is a bit 'spoiled, but maybe that Isnt all bad either. Its a wonderful thing to be wanted, and to find a welcome market waiting for your talent and ability.

The class of 1962 is emerging into a better and more prosperous and exciting world than did the class of 1932and thats a good thing, too.

Quote

Six months after the birth of the European Common Market a prototype coin of what .some day may become common currency throughout the member nations was minted. They are not yet in common use, but the inscription on them may be prophetic; Unitate et Pace on one side, and, on the reverse, Via E.st Libera. Freely translated, the Latin means The road to freedom lies in unity, and peace. Silver Springs I Md.) Record.

Soviet cosmonaut Gherman Titov says he didn.t see God in outer space. Maybe he didn't look hard enough. His space.ship W'as put aloft and kept in orbit according to immutable law'.s of physics. Who prescribed tho.se laws? Man didnt. He only discovered them.Tlae Daily Oklahom

an.

By GEORGE E. SOKOLSKT

Copyright, 1862, King Features Syndicate, Inc.

The argument tp favor of a withholding tax. of any kind, is that there is considerable cheating in the payment of taxes. The American people are an honest people, but as every tax collector knows, In any country. most folks find It a pleasure to evade a tax, avoid a tax, find a loop-hole In a tax-law. This has been true from time immemorial and a tax collector is usually disliked not for his personality but on account of his profession. He Is like a hangman.

Senator Paul Douglas of Illinois is a trained economist. He believes in the withholding method of collecting taxes as fair because theie is an estimated cheating of $1,100,000,-000 per year and therefore those who honestly pay are at a disadvantage as compared to those who manage to cheat. He favors using the withholding device with regard to dividends. He says;

. .the bill as written provides for either exemption or for quick quarterly refunds which in my judgement will mitigate almost all the objections which previously have been made against the provision. The fact is, that over 75 to 80 percent of those over 65, in my judgement, would be exempt from withholding, and an aged couple both over 65 would need Investments of well over $100,000 even to be subject to withholding.

I dislike the withholding tax because I prefer to keep my eainings as Ipng as I can and to manage my own money however badly I may do it. Nevertheless, any citizen mu.st agree that the tax evader is a cheat and that he cheats not the government but his feUow-cltizens who pay their taxes as they pay other bills.

But there is another point of view In all this and Senator Douglas might give it consideration. Actually tax evasion must amount to more than the $1,-, 100,(KK),000 which we lose be-cau.se the income taxes on dividends are not paid. The loss in tax collection from American money on deposit In Switzerland. West Germany, Liechtenstein, Monaco, Panama, Hong Kong and other places and managed by bankers and brokers in those places must be much larger than one billion dollars, although I have been unable to get accurate figures.

These funds may be kept on deposit in foreign countries forever, and, although owned by Americans, pay no taxes because their transactions are on European exchanges although they deal in American securities. This form of cheating is altogether legal and will continue as long as lawyers and accountants know how to i x things.

Why penalize the American who keeps his money In .the United States and uses It to ex- -pand and strengthen American industry and commerce?

Perhaps if the Income tax w'ere simplified and were not so brutally collected, involving huge bookkeeping costs and irksome man-hours spent by individuals and small businessmen, who can hardly afford the time or expert advice, there would be less cheating.

Would not a transactions tax be a suitable substitute fo^r the Income tax and wou^d that not make the withholding tax unnecessary? American money held abroad could evade the transaction tax as It evades the income tax, but if any form of papers were moved, the transaction could be taxed Immediately. In fact, if a transactions tax W'ere used, the government w'ould not have to wait for its money, as It would be paid Immediately any transaction occurred.

There w'ould be no reports, no questionnaires, no field men making spot checks, no accountants. no lawyers. A transaction would simply have no legality, no validity, unless the transaction stamp w'ere affixed to the documents., be they nothing more Involved than checks or receipts or contracts.

If there is a gap. as Senator Douglas points out, of be-1?w'een $4,900,000,(XK) and $5,200,-000,000 between dividends and interest paid and the amount reported on income tax returns, obviously there Is something .very wrong with our system of (Continued on Page 9)

Su pended .-.enlences. ha-roles and iiruljntiorii are Dieted out to murderers, ra})ists anti-depraved thugs as though tliey were merit badges."^J. Kdear Ihaner.

Industrial Construction Brokec.

Bv EI.MEIl ROKSSNER

n)

C)trenatn ror loday

Bv i:\KI. L. DOl'i.LASS NAVIGATION BV THE STABS

When naviolation tiegau many centuries ago. sailors crept only from one point of land to 'a.ugothcr. Scarcely ever did tla-y venture ,ut of sight of land, h was only when men bregan to sail by the stars that navigation as we know it today became poj>siblc. \

People without religious taith have to creep through life darting from one ci curhstanoc to the next. Such pconlr are guided almost wholly by typed iency. Life for them is no a voyage, their saUs taut with tlie breeze, tl prow of theh ship fearlessly plowing the waves. .NCiviic; do they sornc distant port in mind. Their lives consist of a series of petty,little *ob5ecUvcs to be attained by stealthily darting from one point

0 safely to wliat appears to aiio.iier.

Ciiii.si evaie into the world to giv(; people life and to give it more, abui^antly. For a person venuinelv religious, life is a .oyage to- a dt.stsmt point: TlicK will be storms. There will b( nlcht,.'-^ when the heavens are black ^nd fearful But about the Christ an s whole life there is a rodjcking scn.se of adventure and trust w hi^b ares from the fact that he steers his ship bv the stars and know.s foi a cer iaintv tha^ b'>cause these .slai. 31-,' ecTiai hG voyage will no' fail.

Look up lot guidance . not out but up - on the turmoil and chaos of the world. Happiness is suic only for thn e who make life a voyage and life eternal the distant harboi toward which the prow is set.

The stock market has clouded the bu.sines.s horizon. About the only .sure-fire piediction today is that the numlier of ex-plana'tion.s of what really bap-pened to the market will not be excesded by the number of explainers.

However, a few thing.s seem h'ighly probable:

Industrial oiistruction slowdown. Almost every corporation

with con.struction ^projects jn

early .stages re adopting a' wait-and-see attitude. They want- to see the an.swer.s to ihe.<-e'questions; Will money be available to complete the job'' Will prices of materials drop? Will the new facilities pay off-in the changing market? How p\cr, pio.ecvs well on their way w'lll !.? generally completed. NEED FOi: HOMES CONTINUES

Residential eoiistruetion hold ing up. Starts in April and car ly May wc'e up. April starts were 32 percent higher than those,of April. 1960 And since most home construction is bas

ed on firm contracts, constrac-tion will continue. The swellhig population ' requires more liomes, /

(lovernnient construction will soar. The Administration will pass the wordif 11 ha.sn't done .so before thi.s Is printed ^that government cunstniclion is to be maintained at the highest l*).ssibie level.provided by contracts and appropriations.

Tax <-ut hue. The .stock market slide vrill revive demands lor a law giving the Pre.sident liowTFXd lower taxes Th event of a rece.sslon. However, it is doubtful that It will be enacted unles,s thing.s get much, much worse. Congress does not lightly .surrender powers invested in it bv the Constitution.

DEEPER .MAKhET PROBES More investigations: The Se curitics and Exchange Commis-sioii investigation into' brokers; practices is likeIV to be intensified and several Congres.*^ional committees are about to plunge into affairs of the stock market. Thc.se will have political potency; many voter.s brieve the market dio was caused by

efforts to squeeze out small in-vestons. Surely, a lot of them were squeezed out and whipping boys are much In demand.

Western vacation boom;

Pairs rarely make money, but. the Seattle fair will make a lot of money for western hotel and motel owners, gas stations, restaurants all the way from the Steel Pier to Seattle. A record-setting number of auto tourists will take to the road this year and a high ratio of them will head falfWards. Tip: Make hotel and motel reservations^ in ..advance as often as po.ssible: start early In mornings: quite early in Hhe afternoon; keep looking up relatives where room rent.s are excessive.

New insurance probe: The

Federal Trade Commission is con.ridering a new investigation of direct-mail liipurancc advertisers. A Federal court decision upholds the right of the FTC to regulate mail .solicitations in .states w'hcre, the insurers are not licensed and. .since the decision has not been appealed,

the FTC consider the law !s on Its side.

OLD PROMOTER PLANS NOVEL FAIR ATTRACTION

The Old Promoter confessed that he was looking for investors and I Invited him to explain his proposition.

I want to have a space capsule concession at the New York Worlds Pair, he said. Well seal the customer in a capsule, and h^ have all the instruments hairay to Ily. by wire, te fly manually, or to fly automatically. Well even have a few space biscuits for him to eat. Furthermore, well play a tape recording of the radio in.structions to Carpenter on his kuit flight.

It i-eally sounds like a prof-itabL idea. I said. AU the thrills of a space trip without ever leaving the ground!

What do you mean? the Old One demanded. Of course tlic customers wiU leave the ground. I am going to shoot ^ them into orbit! And with a grin and a handful of my cigars^ he was gone.

X