Thursday, March 20, 1969

The U.S. Should Play For Time

WHO WILL CAST THAT LAST STRAW ?

If pver there were a time for proceeding cau-tiouily in Vietnam thi? is that time.

The administration for the piTsent should avoid any acts which might appear to be an escalation of the war, even in the face of the current enemy offensive. There are simply too many unanswered questions to fake precipitous action.

\Vas the offensive begun, for instance, to shw Xorth Vietnams allegiance to Red China? The Chinese and the Soviet Union have reached a new low point in their relations. This has been dramatically illustrated by the recent fighting on their borders.

Bad relations between the two Red giants could be helpful to the United States and South Vietnam in the southeast Asia war, for there no doubt that the communist could not continue fighting without assistance from the Soviet Union.

So f^r now, at lea.'^t, the United States .>;hou]d play for time.

On the other hand so-called American doves on the Viet fighting all too many of whom have played the situation for their own political adx an-lagp should hold their tongues for a reasonable time.

A new administration has taken office in W'ash-

Governor

Snells

O

His Views

By WILUVM A. SHIRES Reflector Raleigh Bureau

RALEIGH - Gov. Rob Scott spelled "out his position on campus disorder and disruption quite clearly again la.st Friday in a lengthy Icc-Pire to the executive committee of the Cniversity of .North Carolina trustees.

WILLIAM

SHIllt^

It was the position hr m-sum'^cl earlier m issuing poii-CN guideline to adminisfa-tor.s of state-supported colic-gcs and universities and then followed up by dosme .Manning Hall and ordering the re opening of a cafeteria on the r.NC campus at Chapel Hill last week He feels the actions thus far have strengthened the hand of the various adminis-trator.s and enhanced rather than tarnished the image of the university .'system in dealing with such situations.

Hi? purpose, he said, was to trv to give some firmness to this thing "

Explains Position governor, Scott is chairman of the Consolidated Ini-wluch fixes policy for all of the universily campuses.

In addition, he is chief executive officer of the state charged wph the duty and r==ponsibilitv of upholding the law and carrying out constitutional requirements.

This motixated his action. Scott sa.vs. 1 have no desire to interfere with the normal educational process nor be-romie involved in tne day to day operations o: the var

ious imstitutions.

But last week he felt the time had come to act m what wasrapidly becoming a crisis stirred by demonstrators and outside agitators who had barricaded themselves in Manning Hall and who had blocked food line.s in the Lenoir liall cafeteria in dear defiance of llie policy Scott laid down

\Nas Bcconimg Worse I'..\pJaining tins decisions at a ic\s conference. Scotts aid lie felt ihat if the administris.'', lailfri 10 move in re->'>l\uiu siieli situnlions, I h I 1 lit I On*:, bility to do it lie 11 lie h k1 hern in al-iiiosi t onsiani communication wiih iinivrrsitv officials from the time the trouble began.

lUit tliriT was alwa.vs some delay, some excuse, for putting off getting the situation in hand "It begun to deteriorate. It was going to get wor.ie.'

The governor then told the administrator.s they "just had to move, and to go ahead and open the cafeteria He was told to would be opened by

the noonday meal the next

da.v.Scott ordered it opened by brcaktast It was Manning Hall The governor furtJicr explained why he ordered de

monstrators out of Manning Hall and was prepared to use force to remove the.

For one thing he said intelligence reports indicated that the demonstrators had weapons inliiding a sawrd-off shotgun, sticks and rocks and ncrhans other types of weapons.

There were complaints of rofaniiiF's and obscenities shniiied over ihe loudspeaker 5 tern -^et ii, bv the demon-siraiors .-\nd there was the proDicm ot a "neallh situation" inside the 'building.

Sc'otl order the demonstrators cleared and the buidling closed "in the best interests of all concerned.

The Daily Reflector

INCORPORATED

E'Cabbsbed 1882

.'one 2

a.

IH'Ouab Friday Afrernoors

.'d Suod?v Mornirtg

DAVID JUltAH WHICHAPD, Chairman of the Boar

S. 'vVHlCHAkD-CAVID J. WHICHARD

Publishers

k.ntrrrd at po'-t iiffire. rtr<Piivillp. N, C. as <^rrond rlass mail matter

SUBSCRIPTION RATtS

Horne Dcliv-fy By Carrier or Motor Route Week 40c By Mail, Payable In Advance

Onr VFr . llJi.OO

Six Months ............ Jt.Sfl

Three .xiootbs ....... &.W

One .Month ........... 2.00

, <Prices toclude saies tax wh^re applicable i

MEMBER OF .\SSOCLATED PRESS

The Associated Press Ms exclusively endtled to use for pubh

catioa ail ows dispairbes credited tu it or not otherwise

credited U ttus paper and also the local news published

herein. All rUhts of publications of special dispatches here are also reserved.

UNITED PRESS LNTER.NATIONAL

ington and a new president could be most effective in bringing about a .ettlenient at the beginning of hi.s term of office. There have been some reports perhaps only rumors that secret negotiations may be underway for a cease fire based on the withdrawal of 100,000 American troop.s.' Whatever i.s underway behind the .cenes we can rest assured that Ni.xon ks making every effort to honorably settle the V'ietnam xvar as quickly as possible.

Now ]<! the time for restraint in our country, so far as the Vuetnam war is concerned. It may be that a .-settlement is still far off. However, the United States has committed itself to negotiations and a new administration. Responsible citizens those who are triil.v infere.sted in a fair settlement as opposed to furthering their own political careers will withhold critcism, at least for the time being.

Some Reform Needed If Death Penalty Goes

If the General Assembly pas.es legislation banning capital punishment in this state, it should likewise insist that necessary reforms be instituted in the penal system operation to provide adequate safeguards for society.

If is obvious that the measure that would ban capital punishment in thks state is closer to passage now than at any time in the past. Gov. Scott has voiced his approval of the measure now before the lecrislature. Attorney General Robert Morgan has likewise said he favors doing away with capital punishment in North Carolina. There are strong voices in addition to those others heard in the leg-i.slature and elsewhere in the state.

jUet NoHh Carolina move.s to take this .step at a time when the crime rate in this and other states is rising sharply. It is moving to ban capital punishment at a time when crimes of violence are on the increase and respect for law and order appear to he deteroriatihg among a number of groups within the states pnnnlation.

In spite of declaratiops to the roptrar.v, there are good reasons to believe that elimination of capital punishment will' weaken the legal deterrent to the worst crimes. If it chooses to han capital punishment. the legislature should likewise move to assure that tho.se convicted of the most serious (rimes are not allowed to srrve token .sentences and then he turned loose again on society.

By JAMES KILPATRICK

An Unthinkable Thought

opreaamg me nflation Fires

One treads up to this topic on tiptoes: The time may have come, at long last, for tlioughtful public discussion of a concept that has been effectively suppressed for the past 40 years. Put mo.st simply, it is the proposition that inherent differences exist among the races in intellectual aptitudes.

As Josepli Alson has remarked, even to speaK of tnis possibility Is to spea*i the unspeakable; it is to mention the unmentionaol.3. Yet a Berkeley professor of educational psychology, Dr. Arthur

R. ' .lensen, has dared to challenge the old taboo Hb long article in the winter issue of the Harvard Educational Review has dropped with explosive impact on the educational scene. Boldly, but with impressive scholarships, he expresses his conviction that genetic factors have an importance that has been too long ignored in the learning process.

Now, this is heresy. In anthropology, psychology and education, as in organized religion, a kind of authoritarian theology develops. Articles of

Advertiiinf rates and deadlines available Member Audit Bureaa of Circulation.

upon request

Bv STERLING GREEN

WASHLNGTO.N (API- The fire hose is being turned on the money market to wet down inflation. Some officials, fear that, like water on gasoline, it may just spreaci the flames.

in theory, higher interest rales should discourage borrowing, And since major

banks this week raised their basic interest rate to a rcrord per cent, companies which want loans for plant expansion should be thinking about postponing the borrowing.

But if the corporation feel sure of continuing inflation, they may borrow anyhoxv. To postpone the borrowing would Mirtply mean paying a still

higher interest rate later

The high credit cost doesnt matter much nayway if the

corporation can pass it on to consumers by marking up the price of the goods it sells. And if consumers also are conditioned to the expectation of' inflation, theyll buy now in fear of still higher prices

ahead.

The only way to stop this spiral is to destroy the expectation of inflationthe "inflationary psychology that e. o-nomists deplore.

.A collapse into a recession would destroy it, in a hurry.

But it would he painful, with a million or two million people thrown out of jobs, including a disproportionately large number of Negroes and ( jl slum dwellers UL v--/LCx

serve Board concurs. Its chairman, William McChesney .Martin. says there can be disinflation without deflation.

But business is not convinced, seemingly, that the government reaily means busi-IV V that antinflationarv measures wall be applied hard enough and long enougft to do tlie job.

The continuing expectation of inflation showed lip clearly and ominously last week in the official announcement tnat companies plan a spectacular 14 per cent increase from last year in their plant and equipment spending in 1969. Most of the money so spent will be borrowed money.

That spells more boom, not disinflation. The increase compares with a 4 per cent rise in 1968 and a 2 per cnnt increase in 1967.

Officials are hoping that the host in the hanks, prime rate to 7h per cent will induce many companies to postpone their expansion plans.

But that seems most uncertain unless the administration finds a way to persuade businessmen and consumers that ^he White House, the Treasury, and the Federal Reserve Board are united in their determination to step inflation and will keep pulling the brakes on harder until they succeed.

Other E(ditors Say

Keep Tax Competitive

The Nixon administration has promised to do it less painfullly by gradual and persistent restraint, applied steadily for a year or two years if necessary. The Federal Re-

Tf the government doesn't watch out its liable to price itself right out of the postal business.Ocala (Fla.1 Star-Banner.

(Wilson Times)

Some action should beg i n this week on the revenue bills in the General Assembly, to rai.se the additional millions GTOvernor Scott is requesting for the educational programs the highway fund and other enrichment objectives.

Of special interest to this section is the five cents tax recommended on a pack of cigarettes and a two cent tax on cigars. The five cent a pack tax on cigarettes is a higher tax than has the state of Virginia and the recommended gasoline tax when passed will be higher than the gas tax in either Virginia or South Carolina.

In view of this state's position in the tobacco world, for more tobacco is raised in North Carolina than in a n y other state, the first tax on cigarettes should be lower than the tax charged by any other state. Tlierefore a tax of two cents a pack on cigarettes would keep this state, now the only one without a tobacco tax, the state with the lowest tax on cigarettes. This would be in our favor. We could still catch the traveling trade and tliis is a sizeab 1 e sum.

Today the tourists wait until they get to North Carolina In load up on cigarettes and the gasoline tax is also favorable.

Now what is to take up the slack and supply the additio

nal revenue? A crown tax on soft drink.s could easily make up the difference, and the price soft drinks are bringing today of ten cents or m o r e, which is twice the five cents charged when the argument was so effective against crowm tax.

Yes, if there is to be a tax on a pack of cigarettes, it should he kept a little lower than charged in other states. This would continue to give an advantage to this tobacco raising state.

It will be interesting to see the vote on the tobacco tax, and it may come soon. The eastern part of the state, where the golden weed is grown, will vote against the tobacco tax. The Piedm o n t with its big representat i o n, will vote for the tobacco tax and how the west votes is to be seen. The one hope of defeating the tax is tn find the revenue from some other sofirce. Tliis is why it is bet-tef to reduce the tax and make it competitive and put some of the burdeii on a crown tax.

There are several bills offered to put on a crown tax. How this tax is favored in the General Assembly will have a big effect on the tax levied on cigarettes. For the objective is in raising revenue. Dividing the tax levy so as not to be too burdensome on any one product appears to a wise course.

faith are propounded. To violate themeven to question them publiclyinvites excommunication. And no article of religion has been more fiercely defended than the proposition that white and Negro intellectual aptitudes are inherently identical.

The dogma was laid down as far back as 1928 by Franz BoaSj whose influence controlled an entire generation of social anthropologists. His disciples spread the gospel: Melville Herskovits of Northwes-tern, Otto Klineberg, Ruth Benedict, Ashley Montagu. Their view, that race is a myth, became the dominant view. In May of 1957, the Group for the Advancement of Psychiatry saw the matter as closed: The fact is, of course, that the Negro possesses tne same capacities and potentialities as does the white.

It is this fact, of course, that Dr. Jensen has challenged. He is no segregationist, no racist, no Kluxer. He is simply a scholar who is unwilling to conceal his own findings, however greatly these findings may contradict the conventional wisdom. He concludes that environmental factors cannot fully explain the sharp differences in the scores of white and Negro children on carefully conducted educational tests. When it comes to cognitive learning that is, to abstract reasoning the typical black child, in Dr. Jensens view, suffers from an inherent disadvantage.

From the shock waves set off bv Dr. Jensens paper (summarized fully in U.S. News of March 10, you might suppose that no one else had ventured such heresies before. Actually, the testing of Negro intelligence goes back at least to 1897. Elaborate tests were conducted on white and Negro recruits in World War I and again in World War II. Professions! literature abounds with exner-iments. Dr. Frank C.J. Mc-Gurk, of Villanova, analyzed 63 such studies between 1935 and 1950; in all 63, the test scores of Negroes averaged significantly lower than the test scores of whites.

The response of the Boas disciples was to denounce such (Continued On Page 6)

Mafia '-irms oan

By ROWLAND EVANS and ROBERT NOVAK

WASHINGTON The governments loan of nearly half a million dollars to a Mafia-controlled company in N c w York run by one of the countrys most vicious loan sharks reveals how Small Busin ess Administration (SB.A) polices can favor well - heeled hoodlums over impoverished ghetto merchants.

The SBAs $466,000 in loans to the gangster - owned ANR Leasing Co. in 1965 was revealed last week in hearings by New York state investigators. Who is to blame is bidden by bureaucratic secrecy here and perhaps may be pried loose only by Congressional probing. Available information does point to slipshod administration by the SB A, possibly aided by a rare investigatory lapse by the FBI.

Beyond the identity of t h e culprit, however, is the exposure of whats wrong with rigid government lending policies: while Negro businessman in the ghetto are of t e n denied loans because of poor credit ratings, the good risk has the best shot at the Federal Treasury quite apart from the desirability of his enterprise.

Significantly, the suspect Ljans of $66,000 and $400.000 to ANR were made by SB-A's New York area office run by Charles Kriger, a 67-year - old lawyer closely connected with the B r 0 0 k 1 yn Democratic Organization. Removed from his post last fall because of a notorious record for withholding loans from minority businessmen, Krig? er has now been reinstat e d through the demands of h i s patron: Rep. John J. Rooney of Brooklyn.

While super - cautious in processing loan requests by ghetto enterprises, Kriger found no difculty in quickly approving the application of the unsavory cast of characters running ANR Leasing.

One officer of ANR is Thomas McKeever, a former official of the International Longshoremens Assn. (ILA) who has been convicted by Federal courts of labor racketeering and truck theft. The other listed officer in ANR, John Masiello, Jr., has a name much more familiar to students of the Mafia.

His father, John Masiello, Sr., really controlled ANR and is an important middle-level Mafia figure. A soldier in the Vito Genovese fam i 1 y, he served Federal time for grand larceny and is one of New Yorks biggest loan sharks. Inside the Mafia, he has argued for the loan shark business as the safest and most lucrative of rackets.

Officially, the SBA flat 1 y refuses to say whether it requested a name check from the FBI routine procedure-before granting the loans to ANR. However, two separate SBA officials informed us privately that name checks were requested and that 11. e ANR officials were given a clean bill of health by the FB-I a blunder of proportions that would defy credulity.

Even if the FBI erred, however, the SBAs own investigators should have discovered ANRs mes.sy pedigree with any thorough check. Rather, there is evidence that Krigers SBA office depended almost exclusively on the credit reference given ANR by Royal National Bank of New York and its president, William Goldfine (which financed 25 percent of the loan (Continaed On Page I)

Strength For Today

Any Advance Against Inflation?

WORLDS GREATEST TEACHER

often marvel at He simplicity as well as the ei-iccuveness of the eachings of Jesus.

Most of his trachings took the form of parable. The word parable comes from t w o Greek words, para, which means beside and the verb ballem, which means "to throw " A parable, therefore, is a story thrown alongside a religious truth to explaui it and illustrate its meanmg, Why did Jesus use this form of teaching? We cannot, of course, know the full mind of the Master, but certainlv religious truths set forth in parable form were ond continue to be graphic and understandable Furtherm ore, when truth and story illustra-

tinc that tiiith. are linked together, one is able to remember the truth for a long lime, probably indefinilelv.

When Jesus could teach his contemporaries and ma k e them understand he evidently felt sure that people would for all time understand the '.'eli gious truths he was trying to set forth We never outgrow the teachings of Jesus. Most of his teachings are so simple that the humblest of persoms can understand them. Some of his teachings are of such character that the greatest minds of the ages ponder them and admit that they are unable to compass the height, depth and breadth of these teachings.

The divine character of the Teacher of Nazareth alone explains his teachings.

Earl L. Douglass

By ELMER ROESSNER

If the drive against inflation IS beginning to succeeij/as some observers say, the success is minute.

The bloom is off man y st(x:ks. New York Telephone's new bonds, although paying 7.7 per cent, the highest yield yet on top - quality corporate bonds, failed to sell out. Bank interest Tates continue high, although an influx of Eurodollars has made m.ore money available. A survey by the Department of Commerce shows manufacturers expect an aM'upt slowdown in sales in the first half of this year.

The Celveland Trust Companys Business Bulletin said, Recent estimates of econo-nuc activity indicate the rate of expansion of business activity is beginning to slow. First National Bank o*' Boston stated, The fitful antici

pation of a slackening in o u r frenzied growth pace now seems credible.

One Swallow Doesn't Make A Drunk

On the other hand:

Consumer prices keep on rising. and that, to the Joe Doakes, means more inflation.

Commodity and Indusirial prices keep on rising.

Wages keep on rising in new union contracts.

Employment increased by half a million in February and unemployment decreased by

18.000. f

CiMisumer credit increased $641 million at seasonally adjusted rates in January.

One - family housing sales were at an annual rate of 529.000 in January compar e d with 482,000 in January, 1968, despite a rise in prices.

Plans for spending for new plants and equipment are

now 8 per cent above last year, partly because of fears that Congress may end the 7 per cent investment credit.

The merger boom goes merrily along, again speeded up by fears that Cong r e s s

KtMKR

BOESSNEB

Underlying all of this is the fact that spending for the war in Vietnam continues at a high rate. The rise in industrial prices portend even higher spending in the months ahead.

There cannot be much of a slowdown in the econ o m y while government spend i n g continues at the present high rate. There cannot be i slowdown in inflatiwi while a large part of the government spending is of borrowed money, because borrowing it inflationary in itself.

may blow the whistle on conglomerates.

Retail sales continue above year - ago levels, indud i n g the sale of autos, and despite higher Social Security tax e s and the surtax.

The War Goes On

New Safety Devices Dont Cat Auto Deaths

Despite all Ralph Nadi? and Congress have done for increased auto safety, the death rate in anto acclde n t s set another new high 1 a 11 year with 53,(XN) fatalities.

One reason: there were more cars on the road.