July 30, 19t

ing Picture Of Confusion

. wms about a year ago that the President and have been made before high officials launcltied theii* otheri in high places in government were pointing program to have private fallout shelters buik moie out to the citizens of the country the necessity for than a year ago. If there were not sufficient study constructing fallout shelters. and research on the problem prior to the all-out

There was great urgency in the plea made by elfort of the administration to have shelters built, cfficials, hundreds of thousands of pamphlets, certainly someone is guilty of unduly alarming the books and other materials were distributed by the people and officially urging them into an undertak-government telling citizens how to plan, construct whose value now appears highly questionable and stock their shelters. Many shelters were con- If on the other hand, there was sufficient structed by individual citizens in their own homes, study and research prior to the launching of the Other families joined in constructing neighborhood private fallout shelter program, why is there a need shelters. In some instances local governments pro- for an additional $10 million in tax dollars to be vided shelter areas for special use in case of an spent on the research program? " emergency. , Either the administration went off half-cocked

Almost overnight a great new industry was the first place In boosting the fallout shelter proborn, flurished for a few months, and then for all Congress now is neglecting its obligation

practical purposes died.

Of late, however, little has been heard of the necessity of constructing fallout shelters for the safety of the civilian population in case of nuclear attack on this country. A few days ago the House Appropriations Committee cut out of an appropriu-

tions bill a Presidential item which would have should immediately take steps to clear up. provided more than a half billion dollars for constructing fallout shelters in public buildings.

The reason, the committee said, is that additional study is needed on the matter of fallout and civilian safety before the government makes such a substantial expenditure for the purpose At the same time the committee approved the expenditure of some $10 million for study and research" in connection with the problem. *

It would seem to us that sufficient study and research" on the matter of fallout shelters would

Wups-Sorryl

to provide sufficient safeguards for the civilian population in case of a nuclear attack on this country.

To say the least it is a picture of confusion which is viewed by the citizens of the country. It is one which both the administration and Congress

Bombsheir

On

! Political Front

By WILLIAM A. SHIRES

CX)BB Disclosure of the double life led by State Republican chairman WiUiam E. (Bill! Cobb came up<m the state scene as a political bombst^ll

Its tanmediate effect was to wash Cobb entirely out of political and public life.

And that in itself was a blow to the Republican party in North Carolina both in this years election campaigns and for the long-range plans of the GOP.

R removed Cobb as state party chairman and as a candi date for the state senate. And Cobb had been a rising young star of the state GOP.

The 40-year-old Morganton businessman had become one of the most active and hard-hitting Republican advocates in the state. His career in politics spanned a relatively brief 10 years but in that time he had become the second best-known Republican In North Carolina.

FUTUREFurther effects of the Cobb scandal, those to be felt in the future, are a mat ter of poIitlcaJ speculation. They may never be measured accurately but polUlcaJ obsen^ers agree that they will be felt.

It was, according to political observers, certainly a setback for the GOP in a number of ways>and (me which likely will be felt (m all levels of state politics.

It is expected to have, at least to some extent and In varying degree, an Influence on chances of Republican cahcU-dates for Congress, the legislature and poAsibly other offices this November.

This will be in the matter of coordinating and assisting in the overall campaign, liaison between local and individual party organizations and the state party headquarters which, until now, have been maintained In Morganton.

PARTY State Republican leaders, officials, candidates and the state executive committee began woiidng feverishly to reestablish the leadership and di-recticm of the state organiza-ti(m.

There were hurried calls and c(Hiierences and plans for immediate meetings.

And am(mg the top party leaders being (^(msulted was the man recognized as North Carolinas Urn Republican. Rep. Charles R. Jonas of Llncolnton.

Otlmr Republican candidates for Congress this year also were being ccmtacted.

And national Republican party officials in Washington were being advised of developments R was recognized that unless the state party headquarters and its lines of communication could be re-established quickly. vigorously smd effectively the Individual GOP candidates, including Jonas, would have to shoulder even more of the load of conducting their own campaigns with whatever additional help they might secure from the natlcmal party.

JONAS Jonas himself Is the most embattled of the GOP candidates, opposed In the Eighth district by Incumbent Rep. A. Paul Kltchln.

Cobb began his rise In state GOP affairs in his adopted hometown of Morganton and normally Democratic Burke County, taking an active part in the*Jonas campaign in 1952. He was only 30 years old. But he won attention as a comer, a hard worker and effective personality.

He became active In Young Republican affairs and later in the local and state party machinery.

He pulled something of a political upset in 1956 with his successful campaign for the state senate, and he became the spokesman for the Republican delegation in the legislature.

He was elected state party chairman four years ago with Jonas blessing and approval.

Jonas looked upcm Cobb as a man who could heal the intra-party rifts and ccMiflicts which had kept North Carolinas Republican leadership split into two or more factions for more than 10 years. This dated back to the days when there were Taft-Dewey disputes and divisions within the state GOP hierarchy.

Now, 10 years later. Jonas was looking to Cobb to marshal support and the full backing of the state party organization for Jonas most' critical campaign in the decade that he has been North Carolina's lone Republican c(Higressman.

It was thus plainly significant that, in admitting the double personal life, one of Cobbs first statements was:

Its going to hurt Charlie Jonas. Its going to hurt the Republican party.

Industrys Worth Is More Than The Payroll

What an industry means to the economy of a community or an area usually is evaluated in terms of the number of jobs the industr>^ provides and the annual payroll for its employes.

This, however, is only part of the total picture of economic impact.

The DuPont plant in our neighboring Lenoir County announced recently that during the past year it put almost $14.5 million into the economy of its immediate area, and spent another $1.6 million for goods and services from 637 other firms located within North Carolina.

Of the almost $14.5 million spent locally by the plant, the lions share, or $13.5 million went into salaries and wages of the 2,000 employes of the plant.

This amount of personal income to people in the area, in turn meant the creation, or at least the continuance, or many^ other jobs in all types of businesses in the immediate area. Like most other people, those employed by DuPont in this area probably found most of their income went into living expenses. They bought groceries, clothes, automobiles, homes, spent money for recreation, and did all the other things which other residents of the area did.

The spending of the $13.5 million in personal income provided by the plants annual payroll required the goods and services of countless other people. It moved through the economy of the local ^

area creating other payrolls, other purchases, other to ftSdf

spending, that ^caused the initial $13.5 million to College which ultimately bebe multiplied many times. came Columbia University.

Without the 2,000 jobs and the $13.5 million in ^oung Alexander Hamilton, ey-

payroll at the DuPont plant, there would have been ti"X IcUve supS"ofth fewer jobs, lower sales, and less demands for goods Revolution. He became an aide in the local economy. ^

The economic worth of the industry in this area reaches far beyond the number of people it employes or its annual payroll.

By GEORGE SOKOLSKY .

Hamiltons Vital Role

Copyright, 1962, King Features Syndicate, Inc.

A Joint Resolution was passed by the present Congress providing for the establishing of the former dwelling house of Alexander Hamilton as a national memorial.

This means that the home of Alexander Hamilton, known as The Grange, situated in New York City, becomes a national memorial.

The role of Alexander Hamilton as one of the founders of the United States is often forgotten. Born in the West In-

Not

Of

r

me

Sians

to George Washington and was undoubtedly his ghost writer. During the Revolutionary War. he was constantly at Washingtons side.

However, Hamiltons greatest service to the new government w'as the publication, with John Jay and James Madison, of Federalist Papers which to

this day laid the foundation for the understanding of the 'Con: stitution and the perpetuation of the New Government. As Secretary of the Treasury, he laid down the economic basis in his Report on Manufactures which established the concept of the protective tariff and which gave to the country economic independence.

Hamiltons ideas' conflicted with those of Thomas Jefferson. Hamilton feared the Incompetence of the masses: Jefferson believed that the voice of the people is the voice of God.

I will be permitted this over-simplification which is good enough for present purposes: otherwise a monograph beyond allowable space would be necessary. Aaron Burr, who disliked Alexander Hamilton, was the leader of the Democrats in New York, perhaps the founder-of Tammany Hall. At any rate, Burr and Hamilton fought a duel over on the Jersey side and Hamiltixi was killed at the age of 47.

In these days of Keynesian economics and sophisticated assumptions, it is good to see that Congress has recalled the

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By RALPH ROBEY

William Me. C. Martin. Jr., chairman of the Federal Reserve Board of Governors, said a few days ago, "You cannot say categorically this is a recession. That is true. He then added: There is a lot of pessimism in some quarters but that pessimism is not warranted yet, in my opinion, by the figures. We think the current reports amply justify worry about the remainder of this year, and in many instances actual pessimism.

Here are some recent developments:

Total industrial production,.

seasonally adjusted, remained the same in June that it was in May. One can rationalize this by saying that the continued drop in steel, and a decline in automobile output as a result of a strike, were the cause of the overall stability. But if recovery were w'hat it should be these developments would have been more than offset.

Personal income reached another new high in June, but the increase from the preceding month $750 million w'as the smallest since the start of 1962. The total personal Income is now $440.5 billion, and such a limited growth is most discouraging.

Durable goods orders declined 3.5 per cent between May and June. This was the largest drop in five months, and the backlog of orders fell for the fourth consecutive month.

Housing starts have been one of the really bright spots in the reports since last January. In June the nunrber of private, nonfarm starts fell to a seasonally adjusted annual rate of 1,361,-000. As compared with May

Other Editors Saying... he Cigarette Study

this was a drop of 180,000.

Retail sales also eased off in June. The decline was 2 percent, and covered most types of stores.

Total employment, as customary, increased in June, but so did the number of unemployed. As related to the civilian labor force, the unemployed increased from 5.4 to 5.5 percent.

Common stocks Fairly widespread pessimism continues on the level of the common-stock prices. There has been an appreciable rally from the low of June, but many careful students of the market believe this is merely a temporary rise, and that the June low will be tested and may not hold.

Gross national product the value of all goods and services porduced in the nation has been revised again for the first quarter. The new figure is $545 billion. This is a downward adjustment of $3 billion. For the second quarter the total is up slightly to $552 billion. The old forecast of $.570 billion for, |he year as a whole now appears fantastic.

The situation in the Congress remains extremely compldx and confused. Defeat of the medicare bill by the Senate aroused tempers to an extraordinary degree. and it will be a long time before some of the things that were said are forgotten.

The Senate Finance Committee has made numerous important changes in the Administrations tax bill, and has now set It aside while It holds at least a month of hearings on the new tariff bill. During this time there will continue to be prcs" sure for an immediate overall reduction at this time, and be-(Continued on Patre 6)

(Winston-Salem Journal)

The announced plan of the U.S. Public Health Service to form an unbiased expert panel to study the impact of smoking and other factors is welcome news. The study, which hopefully will be comprehensive, thorough and objective, should go far toward removing the relationship between smoking and health from the realm of controversy, rumor and conjecture based largely upon differing statistical data.

A reassuring note in the announcement of the study program made by Surgeon General Luther L. Terry following a meeting with representatives of government, professional. health and industry organizations this week was the statement that scientists who have already taken a strong pro or con position on smoking and health will not be cho.sen for the study. This precautionary . step minimizes the danger that the study might be too much influenced by those who had already committed themselves, and felt under obligation to prove they were right. The matters at stake in this study demand an open-minded approach by scientists w^holly dedicated to a search for the facts.

The present wide divergence in so-called expert opinion on the smoking-health

question is emphasized noi only by the opposed views expressed at intervals by American doctors and the differing conclusions emerging from British studies^ but also by the findings reported by Russian Soviet and Hungarian scientists at the International Cancer Congress in Moscow. The Soviet doctors, on the basis of their studies, appear unwilling to accept the contention t h at cigarette smoking is the major cause of lung cancer.

There is an urgent if not compelling need for the doubts and uncertainties on this score to be cleared up. There is much evidence to indicate the smog, climatic conditions, the over-all health condition of individuals, and other factors, possibly including viruses, are related to lung cancer. But if smoking is the major cause of lung cancer. the public ought to know it.

This panel may not be able to say with finality whether cigarette smoking is a cause of lung cancer, but the public and the tobacco industry have much to gain from a completely fair and thorough study by experts of all the factors in the development of lung cancer. Once the available facts are laid out on the table, the public and the government will have a basis for deciding w^hat corrective action, if any, shopld be taken.

name and significance of Alexander Hamilton. It is interesting also to recall the words of EUhu Root, written in 1934 which somehow sound like 1962: The United States is at the threshold of a very serious discussion upon matters materially affecting our system of government and our social organization. For the avowed purpose of dealing with an emergency, many powers have been assumed and exercised by our government which the people of the country had never thought of granting. The people generally, however, have felt that an emergency did exist, in the stagnation of business and in the lack of employment for millions of workers of all kinds, and they have strongly desired the success of the Administration-In its efforts to produce activity in business, general reemployment, and renewed prosperity; and although many Americans have doubted the wisdom or the authority of some of the things that have been done, there has been a general unwillingness to undertake active opposition to particular acts lest such opposition might tend to retard or to show lack (rf sympathy with the special efforts the Administration was making,

It woulf be advantageous for an understanding as to why the American economy was unlike any in Europe to study the papers of Hamilton who could for-see in 1791 that:

There are certain species of taxes, which are apt to be oppressive to different parts of the community, and, among other ill effects, have a very unfriendly aspect towards manufactures. All poll or capitation taxes are of this nature. They either proceed according to a fixed, which operates unequally and Injuriously to the industrious poor, or they vest a discretion, in certain officers, to make estimates and assessments, which are necessarily vague, conjectural, and liable to abuse. They ought, therefore, to be abstained from in all but cases of distressing emergency. Perhaps some of our current statesmen might have a look at this to see what is preventing our economy from moving. They would perhaps find in Alexander Hamilton rather than in John Maynard Keynes the Intellectual leadership which is so sorely needed at the moment. However, when anyone complains of the youth of President Kennedy and his entourage. It might be recalled that Alexander Hamilton was only 34 when he wrote his Report on Manufactures, that he was 30 when he wrote The Federalist; that he was 32 when he was appointed Secretary of the Treasury. He was only 47 years old when Aaron Burr shot him. This country was founded by young men.

Growth

Stocks

loaay

By ROGER BABSON

BABSOK PARK. Mass, - This Is not an endorsement of Growth Stocks. I do not recommend specific stocks in this weekly column; I will, however, discuss ten companies whose stocks are listed on the New York Stock Exchange that I believe have a bright future.

OFFICE EQUIPMENT COMPANIES Owing to social security, retirement pensions, etc. many men and women who are now doing office work will retire within the next few years with fewer replacements. This means there will be an Increase-ing demand for machines to do office work now being done by these people especially speeding up said work. ^

Among such companies I might especially mention the Addressogriqih-Multigraph Corp. and International Business Machines. Iwill also ln(dude Zenith Radio which hopes to get one million of its TV cabinets into tbe public schools, hospitals, and office buildings. I believe that TV will revolutionize teaching in our schools. Zenith Radio Is also leading in color TV.

CAMERA COMPANIES These compwiies not only make, profit on the sale of their cameras and films to tbe public; but are also making large sales to the . S. Government. Families are not content to own one camera, but each member of the family wants one. The family also buys the latest models as they come out.

Among these the Eastman Kodak Company stands out most prominently. The Polaroid Corp. is very progressive and has many valuable patents for the use of which other camera companies must pay royalties if they want to hold their trade. It is rumored that the Gillette Company has some plans along these lines, using part of the huge profits made from their razor business. All three of the above should profit from the constantly growing population of the U. S., which should reach 230 million in 1975.

NEW BUILDING COMPANIES Although Coming Glass Works is best known for its "Pyrex glassware, its great growth should come from new modem buildings. More glass is continually being used in new office buildings; while factories will appear as being built of all glass.

As new buildings of all kinds will need automatic heating, cooling, and ventilation systems the products of Minneapolis -Honeywell Regulator may be in great demand. I could also include Minnesota Minning & Manufacturing in this general growth due to their ingenuity and new products. This company is known as the Three Ms. DRUG COMPANIES AND

HOME PRODUCTS

The drug companies probably spend more money on research than any other group. Furthermore, they are on the verge of making some very wonderful discoveries hi connection with DNA and RNA; two chemicals which may provide living cells. My first choice is American Cyanamid Company (which owns Lederle Laboratories). I also think that Bristol-Myers Company has good growth possibilities; and also PltHJgh, Inc. of Memphis. However, perhaps the best of all is the great duPont Company of Wilmington.

My mention of Home Products in the above heading is because the American Home Products Co. has a very large sales force handling some products ordinarily sold by Proctor & Gamble which could also be listed here. These are two companies that should profit by inflation toward which we are surely headed. Let me add the steels, coppers, oils and natural gas companies; yes, most . companies with great natural resources.

RELY ON AVERAGES This makes fifteen corporations in all which I believe have distinct growth possibilities. I suppose my readers would like me to boil the list down to ten companies. I will not do thla as so much depends upon the human factor of management which cannot be forecast. I feel, however, that some of the fifteen will turn out to be great disappointments, but no living soul can now tell which are the five that should be avoided.

This leads me to emphasize once more the great importance of diversification. Those who had their money distributed ov-(Continued on page five)

Always A Fight For Legal Righ

Strength For Today

By EARL L. DOUGLASS

BELIEVE AND RECEIVE

Jesus declared on one occasion: What things so ever ye desii-e, when ye pray, believe that ye receive them, and ye shall have them. (Mark 11:24.

This is indeed a strange and startling philosophy. We get things from the Giver of all good gifts not just because we ask for them but because when we ask for them we definitely believe that the petition elth er has been granted or will be granted. It is not enough that w'p should ask. We must ask with confidence. This may discourage some who find praying hard under ftU conditions but we should remember that God never expects us to utilize powers we do not possess. If our

faith is but the size of a grain of mustard seed, let us use that and it will be sufficient in God s sight.

In other words, confidence is a great factor In prayer. It not only supports us it actually enables God to do for us the things He could not do if we did not have that confidence. All physicians know how important the cooperation of a patient is In the treatment of a disease. Sin is a spiritual disease. God is the Great Physician. He stands ready to help us. What He asks Is that we stand ready to cooperate with Him.

If we believe that we can receive, will receive yes, even have receivedGods nands ai'e extended tow'ard us filled with many gilU.

By ELMER ROESSNER

Every new' industry must fight for the legal as well as the economic right to survive.

Farmers used to fire rifles at balloons because they were trespassing on the air right over their "propitty." There wa.s a.s much question as to whether planes would have the legal right to fly over other peoples land as to whether they could fly at all.

Every new building material has been illegal until local boards have approved it, sometimes only after a little cum-shaw under the table. Plastic piping, cannot be used In most communities today. Want to go to jail? Paint sprayers were illegal in many places because they fumed the air and threatened to throw union men out of johs.

At the moment, the coin operated, self-service dry cleaning Industry Is going through the same purgatory.

The established dry cleaners have the votes and the city councilmen. There are some 4,(X)0 established coin operations in the country. The proprietors command fewer votes than the thousands of commercial dry cleaners.

In New York, for Instance, a law, adopted before the coin-perated machines were invented, Is keeping hundreds of new establishments out of business, preventing the creation of thousands of new jobs, and Immo-bolizing an Industry that could provide an estimated $50 mth lion in business a year.

Curiously, this law was enacted originally to protect the wholesale cleaners from competition of neighborhood cleaners. By limiting the number of cleaning machines and Imposing other restrictions, it saves the market for both the big operators and the neighborhood cleaners who survived.

IN NEVER-NEVER LAND In California, the restrictions

are almost incredible. Coin machines are regulated by a "State Drycleanlng Board, whose seven members are all commercial dry cleaners which recalls Aesops fable about the stork king of the frogs.

There are few coin operated dry-cleaning machines in California.

In New Mexico, a state dry-cleaning board, also controlled by commercial operators, has extreme rules. Here, and In Mir.ml, St. Louis and elsewhere. It has been alleged that the solvent-used in coin operations, perchlorethylene, is dangerous and causes dizziness. Perk has been used safely for 25 years in commercial stiops.

Michigan, New Jersey. Cincinnati and Denvei have adopted codes which operators approve.

Meanwhile, the National Automatic Laundry and Cleaning Council is fighting for freedom of operation, state by state and city by city. In many places, the

coin industry will be set back. Restrictions will be thought up and imposed to keep upstart enterprisers from competing wlUi politically established industries. In other places, the Council hopes, it will gain the legal right to compete on equal terms. And some day, said Word Gill, general manager of the council, coin dry cleaners will have rights comparable with those who fly airplanes in other businesss air space.

SHORT & SIGNIFICANT BUSINESS NEWS ITEMS The French pack of glace cherries Is expected to be 15.000 short tons this year, a whopping increase over 1961. Biggest cua-tomer; England; next, U. S. . . A highway sign near Bethel, N. Y.. reads, "Beware. Turtle crossing. Officer on duty. . . . If you are planning a beach house, construct it like a boat so that it will float on shifting sands, advises Daniel Chait, New York architect, -