raesdajr, September 25, 1962

Pay-As-You-Go Still Appears Best

Y^ou Shouldnt Have Dragged Him In-

A statement from State Treasurer Edwin Gil! highway miles for its money than it would through has fairly well established the financial ability cf a bond issue program.

3 North Carolina to finance a $200 million bond issue As the state continues to grow economically as

for highways without levying new taxes. well as population-wdse, its needs for more and

, The statement, however, should not be con- better highways will increase. As this growth takes strued as resolving the question of whether North pl^c the state will also have additional funds frora Carolina would be wiser to follow the bond rouie current tax levies to put into highway construction or the pay-as-you-go route for enhancing its system p year-by-year basis. The matter of another majoi of highways. bond issue for highw^ay construction should be

The Reflector is of the opinion North Carolina undertaken by the state only if there is no other would be exercising greater wisdom if it plans to feasible method to meet the highway needs, meet its highway needs by paying as it goes rather For the moment at least, the feasibility of meet-

than by moving into another major bond program iug the states additional highway construction

for roads. If the state is financially able to pay oif needs through a pay-as-you-go program has not been some $200 million in bondsalong with the interest eliminated. We seriously question whether it has

required on such an amountwdthout increasing its yet been adequately considered, present tax levy, it is also in a financial position to beef up considerably its present rate of highway construction.

On the best possible basis, it would require Howard of $10 million annually to finance a $200 million issue over a period of more than tw o decades.

By putting a similar amount into a pay-as-you-go

Higher Yields, Better Methods Are Sought

program, the state could appreciably increase the lu n "V- ' xact ajsx.-

number of miles of highw^avs it is now' constructing culture in Eastern North Carolina is rapidly chang-

each year. By carefully planning its constructio

program on a long-range basis, the state could carry out a program with appreciable speed.

The Highw'ay Commission and other state officials should give careful consideration to the feasibility of a pay-as-you-go program for additional road construction before they settle on the bond issue idea. It may take the state a little longer to meet its highway needs through a pay-as-you-go program, but the state probably would get more

!?^resident

Adds

Persona.

Note

By WILLIAM A. SHIRES

JORDANSenator B. Everett Jordan had a telephone call waiting from the White House and revived personal thanks from Presidoit Kennedy for his vote against the Bush amendment to Kennedys trade bill.

The junior senator frtHn North Qutillna, a textile industrialist himself, cast the defending vote in defeating the Bush amendment key opposition measure designed to deprive the bill of the broad tariff-cutting powers the president wanted and later won with passage of the biU.

.The amendment vote was only 40-38 and it was Kennedys closest call on the trade bill. The Kennedy victory is being called the greatest legislative triumph for the president since he en-tened the White House.

TARIFPThere was much trepidation about the Kennedy trade bUl both in Washington and bade home in North Carolina.

The domestic textile industry of course figures at the heart of the matter of tariffs. The Bush amendment, in effect, would have retained present provisions under vrhich the Tariff Commissi(Hi fixes defljpite tariff rates. North Carolinas senior seator, Sam J. Ervin, favored this as a protective measure.

But the Kennedy administration argued that it needs the power to reduce or eliminate tariffs in order to improve and strengthen the countrys bargaining position in world trade. This, It was argued, is necessary in view of competiticm by the Common Mai^et and the rapidly-changing world trade picture.

HODGES Commerce Secretary Hodges was the principal boo^r of the Kennedy Trade 'Bill, so North Carolina figured prominently in giving the president the unprecedented new powers.

Hodges favored giving the U. S. elbow room for touch negotiating and bargaining power for tariff reduction with the Eun^jean Common Market, Japan and other areas, especially In view of what he called politically-inspired competition for world trade by the Soviet bloc.

Hodges successor in Raleigh, Governor Sanford, also sent a

to

telegram of commendation Jordan. . .

EDUCAnONfaction to requests for million in

enrichment funds for pubic schoos is that the requests are modest and conservative.

niere are some views that education could have asked for more and gotten It.

The total in B budget requests by the ^ate Board of Education to the Advisory Budget Commissiwi is less than half of the whopping education enrichment program voted by the 1961 General Assembly.

There is, of course, a built-in A budget increase in public education to take care of growth and increased school enrollment. This had been reported in the neighborhood of $20 million, and it fell somewhat short of that, again on the modest and conservative side, only $18.3 million.

The education requests would provide for teacher and principal salary Increases, more teachers and reductiwi in average classroom size.

AURAThere is an aura of fiscal health and fairly rosy outlook for meeting the states money needs in the next biennium. The states revenue picture apparently is reflecting satisfactory growth and the economic outlook generally is good.

Money, as always, will be the chief cwicem of the 1963 General Assemblybut insiders indicate the Ad\i.sory Budget Commission is, at this stage, escaping the pressure that this commission has felt in the past in trying to fit anticipated revenues and requests into a balanced biennial budget.

This does not mean that there wont be some paring here and there and trimming fat off the various requests. But sources say the 1963-65 A budget already Ls about in shape.

BIGNESS-North Carolina has entered the billion dollar plus biennial budget category in fact, it approaches the billion and a half dollar level.

How much bigger it will be in the 1963-65 biennium remains to be seen.

'There Ls. however, a definite feeing among state officials that the forthcoming budsret W'Ul cover the states essential needs and reflect growth and progress.

more change than has taken place in any comparable period in this century.

Mechanization of farming in this area, because of the pecularities of the principal crops and the predominance of small farms, has lagged far behind mechanization of farming in many areas of the nation. Even so Eastern North Carolina has seen literally thousands of people leave the farms in recent j-ears because of changes.

One of the foremost^ctors in recent years hfls been the decided decrease in the number of acres of tobacco under cultivation. This year, for the firit time in many years, tobacco allotments were increased a small amount, but already there is talk of a decrease in acreage of this principal Eastern.

Carolina crop before next season.

With modern production and harvestin.c: methods in the offing, and with a constant upward trend in per acfe yield of tobacco and other crops, there appears little likelihood that additional manual labor will be required on the farm to handle crop.s whose production is strictly Kiontrolled There are fae?uf'"5*

experts who assert that even though the agricul- After winning international

tural economy makes significant strides in the years honors at Montreal it must

immediately ahead, the progress will make for fewer to lAurinburg and

rather than for more jobs on the farms.

Pitt and other ocounties of this section of the thafs becaus^ftis." state are moving to generate more income for their

8y ALVIN TAYLOK

lest ror leam

of practice and this was for the state title, enough to set the bfst the But it isnt that simple. For United States and Canadg igd one th^ig, Greenville has won to offer on its earfe. The local

squad took first place in rescue competition and l2th

place in first aid competition.

They returned home to all the The international competi---acclaim that w as properly

agricultural economies through better producticii bon happened to come first theirs,

methods, higher yields from crops, the introduction highly trained Green-

of new sources of farm income and the expansion headed cS wuhall

oi>so-called supplemental crops. Such efforts a*e the brashness that a bunch of

important to the economy of the section which is Carolinians could mus-

bound closely to agriculture.

The progress in agriculture will contribute to 7aidmLS hTr's a healthier and more vibrant overall economy for the area. It would be a mistake, however, for the ai*i

agriculture, and even with a greater agricultural income, fewer full-time people may be required in

It would appear there were no more worlds to conquer for the local group, but, aias, the state rescue convention awaited them. It might seem that, since the Greenville squad Is already the best they could sit this one out and let others try

Jc iiccx* XL *VL/U*Ll X/vi lIlXoLciIv"^ IivlW CVCxj XOx Lri*i ^ * J_ *

rea to overlook the fact that with this progress iii tiC itOXS ^QVinCf

griculture, and even with a greater agricultural ' ^ J ^

'^he Commonwealth

farming operations in this area.

Mankind' Must

the state first aid contest for the past two con.secutive years. The trophy, given by the N.C. Medical As.sociatlqn, becomes permanently theirs if they Win it a thjrd time.

They have also won the rescue cup for the two years that It has been offered. The trophy doesnt necessarily become theirs after three w'ins but the local squad wants it a third time badly.

So come Oct. 20 and 21 the Greenville boys will be off to Laurinburg for further competition. Some other hungry squads will be yearning^to cut them to pieces. Thats the kind of pressure that makes champions, however, and the Greenville squad is ready to take on all comers.

'-ind New Way

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By JAMES MARLOW

WASHINGTON (AP) The inescapable conclusion from history is that man throughout most of it has acted like a bird-brain.

He used reason of philosophize but fulfilled his ambitions by invasion and settled his dilemmas with weapons.

The Egyptians, the Hyksos, the Babylonians, the Sumer-ians, ihe Etorians, the Achae-ans, the Carthaginiansrthe Romans. the Goths and Visigoths and Ostrogoths, the Huns, the Vandals, the Moslems, the Christians, the Jews they sought solutions in battle.

Now at last, with w'eapons so powerful they can w'ipe one another out at Iwig range* men are beginning to show some restraint, although it may not last, and in the restraint have a sense of bafflement.

The Red Chinese ache to take over Southeast Asia but hesitate because its this country, not theirs, which has nuclear bomhs. a discretion they may discard when they have bombs, too.

In the J940.S, when this country had a monoiwly on the atom bomb, Russia was discouraged from pushing its luck in Greece and Turkey.

Since Russian communism Is a cn>sading philo.sophy there is only one explanation for its reticence about gobbling up Europe: not rea.son but fear that inva.sion means war and in a nuclear war there may be only the dead and no winne-.

Fear of that same kind of war is the onlv explanation for the self-control the We.st ex-hibted when the Pn.ssians up the Berlin wall, a risk the Ru.ians (cok and one the We.st was unwilling to tahe by sma.sh-Jr the |he Rus-

vie iTn i force.

Now commnnlsm l.s encamp

ed In Cuba, Russia pumps in men and supplies, outraged Americans in' Congress, forgetting American outrage in this country when India invaded tiny Goa last year, called for invading Cuba.

Try it, the Russians said, and It means war.

President Kennedy did- h I s best to chill such martial ardor and the overwhelming majority in the Senate contented themselves with a resolution wam-ing communism not to push beyond the shores of Cuba, or else.

The resolution cited the Monroe Doctrine with its warning to European powers to stay out of the Western Hemisphere while overlooking another promise in the doctrine laid down by President Monroe: That the United States would stay out of Europes affairs.

It hasnt, either in two world wars or since. The United States has been very deeply involved in Europes affairs, first with arms and then with men, since President Truman with his doctrine revised the Monroe Doctrine by a.ssuming American responsibility for stopping communism in Europe.

If tomorrow the United States went back to the Monroe Doctrine by pulling out of Ehirope, which it won't, and in return expected Europe, meaning Russia. to stay out of this hemisphere. theres no reason to think Russia would and it would probably be fatal to think so.

So the two great antagonists, relying like their ancestors on force to discourage each other from impetuous programs, are both showing a sense of bafflement. Russia with Europe and the United States wlth Cuba.

(Chiistiaji Science Monitor)

The triumph of unselfishness and statesmanship which marked the end of the Commonwealth Conference will be appraised by future events, Tlje saga of Britain. EEC, the European neutrals and the Atlantic Community remains to be acted out. Right now it is the vei*y moving picture of Commonwealth friends w'restUng with great shifts in the economic and political forces of todays world that touches the sensibility of everyone who has concern for this remarkable grouping.

The Commonwealth conference communique on the Common Markettwas so hard to write that it looked for a w'hile as if there might be no communique at all, A first draft embodying four so-called principles-generalities would have been a better word for them w'hich Prime Minister Macmillan had offered in his final speech at the meetings had to be abandoned for a pew effort.

Between tJfOit first draft and the last try the flow of wishfulness w'ith which some circles had heralded the Commonwealth meeting, many weeks ago, appeared once more. It was' short-lived this time. But it deserves more than a casual examination. For it is composed of a mixture of at best good-natured and at worst csmical assumptions that the expressed anxieties of the non-British members of the Commonwealth over proposed British member-.ship over proposed British membership in the European Economic Community are just political window-dressing.

It had been foreseen (only partly correctly that the Prime Ministers would go to London Ynainly to speak their pieces as their constituents w'ould want to hear them. Then, having kept the record

clear, they were expected to return home in political safety and therefore personally satisfied.

Communiques are usually regarded by a skeptical reading public as endeavors by statesmen to find agreeable phrases in which to wrap disagreements. Insofar as the Commonwealth communique on EEC is such an effort, it is at any rate more honestly half-hearted than most such attempts.

If it had been any more optimistic it would not have been credible in contrast with daily reports from the meeting, reports whose grim reliability has been attested in clear evidence of a diplomatic struggle, as distinct from the more familiar Commonwealth consultation.

Even Macmillans speech with the four principles about expanding trade and taking account of Commonwealth needs and so forth was viewed mainly as a warning of his firm Intention to take Britain into the Common Market rather than as a promise to satisfy Commonwealth concern. And the communique which now follows looks more like a statement of stlU-conflictlng. points of view than of gaps closed.

British foreboding that this" meeting would be as historical, in a less welcome sense, as that which produced the Statue of Westminster which gave all British dominions full independence in 1926 may be overwrought, Yet the communique out of London does .seem to mark a profound change in Commonwealth relations an unwelcome change which Macmillan and his Common Market aims have uncovered rather than created, but which will cause many Britons to demand a more careful handling of Commonwealth interest in future.

The folks who put in the two-point after touchdown rule in football several year.s ago didnt have the 1962 State-Carolina game in mind.

Your columnist attended the game Saturday. If you non-football enthusiasts dont know, Carolina was behind 7-0 when it scored a touchdowm making it 7-6. They had the option of kicking for the extra point which would make it 7-7 or running or passing for tw'o points Which would have put them ahead.

Coach Jim Hickey decided to kick, a nice safe w^ay of tying the score. Well, again for non-football fans the kick wa.s missed, Carolina was behind one point and ardent Carolina supporters will argue for some time that he should have pas.sed for a two-pointer.

Me? I always play it .safe. I figured he was doing the right thing to kick.

United Fund is here again and somebody will come around with those foreboding pledge cards soon.

First reaction for most folks is to head for the hills. But remember, the man with your pledge card isnt paid a dime for his work. His time is donated. So is the time of his team captain and his division head and the drive chairman and the United Fund president.

In fact, everybodys time is donated this year with the exception of office persomiel. This means practically all the funds collected will go directly to the participating agen-cie.s.

So . dont brush off the .solicitor when he comes by at your place of busine.ss. Your help Is needed.

A New Youth

image

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

It is often asked why the Kennedy AdministraUon uscis so many young and untried men in critical positions. It could be assumed that the President being in his young 40s is not comfortable with oldsters, say, like Bernard Baruch at 92 or James A. Parley at 74.

Robert Kennedy, in his n e w book. Just Friends and Bmve Enemies, discloses the philosophy of youth. He writes:

I remember that Ambassador Reischauer, when he encouraged me to make this trip, said the great problem we face in Japan is the growing feeling that the United States is a tired old country and that Communism and the Communists are developing young leaders for the future.

As the President pointed out, a new generation now carries the torch in the United States, We must, as Ambassador Reischauer said, try and project our true image around the world.

Come to Japan, he told me. You are young. You look rested. Come and offset this false feeling.

And so we went: we listened; we learned: we told people about the United States and about the American people. We left the United States, as Ambassador Reischauer said, young and rested. .

Ardent, inquisitive youth if often, like Marco Polo, always discovering something new and unknown which was alwrays there. Bob Kennedy visited Japan more than 40 years after I first saw that country and I always came away from Japan, young and rested. For since 1868, when the Melji Revolution occurred, Japan has been young and virile and not tired. In a word, a older man can know what a younger man newly discovers.

My own experience has been that age is difficult to determine. For instance, Herbert Hoover at 88 went through a , cancer operation and, except for a day or two, worked all the time. He Is back to turning out three books this year. ' Bernard Baruch at 92 is mentally more vigorous than most men in their 40s. His store of knowledge, his vast experience, ' his record of trial and error, is advantageous to anyone w h o has access to him.

There are young men who are Intellectually sclerotic in their youth. They may wear Phi Beta Kappa keys, but their mental processes ai*e inflexible and they seem unable to leam from history or experience. They move like a horse ulth blinders.

Age is a matter of glands, arteries and the conceits which can be just as rigid at 18 as at 80. Mozart was intellectually mature in his teens; Talleyrand. Bismarck. Baruch, Hoover and so many others have been able to remain young in mind and progressive in spirit far into a ripe, old age.

The United States obviously is a tired nation; yet, in the arts the United States is expressing a vibrant virility, a young and driving imagination which proves that the fatigue is being shaken off. Ths is particularly true in music.

Our political responses, however, are not inspiring. It l.s many years since this countiy has produced a political mind such as Ellhu Root possessed.

In his generation, we have no Henry Clay or Daniel Webster. Our political fatigue is the result of our electoral system. It is too costly to be elected and too tiresome. It cost^too much to be an independent person. Such a figure as Abraham Lincoln or Robert La Follette th elder would have a difficult time finding a role in American politics.

This is a more Important factor in our fatigue than age. It means that valuable talent is wasted because we have made the cost of service to the nation too extravagant and excessive.

But there are many other factors in our general tirednes.s. The public obsession with sex and gossip and so-called celebrities diverts from a con.sid-eration nationally of the virtues of a great personality. The Democrats in New York nominated (Continued on Page 5)

3e Careful It Miaht Be Taxable

The nuclear age is .so young and so new the Two giants are

Continued on Page 5>

Strength For Today

t 4 36

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7

Ry EARL L .DOGI.A.S.S AN!) DONT CO.MFLAIN

We have to take people as we lind them. Why are we memoe; s of one race and not of another? Why are our s k 1 n .s white, or black, or brown, or yellow, or red? Why do we belong to this nation or that? Why are we membei*s of this branch of he church or of no branch at all?

Thei-e are matters which largely have been established by a Power much higher than our own. God appaj'ently did not ;ask our counsel as to wlien we wanted to be born, where we wanted to be bom. if we wanted to be born at all or not. what color skin we preferred to have, or in what branch of the ch'irch we would feel most at home. He put us In families,

nations, and races, and churches as His will chose. Here we are. Here you are. Here I am. Over 95 percent of our live.s was all arranged for u.s before we iir.it opened our eye.s.

Such being the case, people ha\e to take us as they find us and we have to take them in like spirit. Basically we are as the good God made us. There are many things we can do to improve or unmake the Crea-tor.s purpose. But there is a limit to our efforts.

Therefore, let us be charitable. Let us be understanding. The more we disagree with people let us endeavor the harder to e.stablish understanding and fellowship.

We have to take people as they aie. And let us thank God for it.

By ELMER ROKSSNER

Housewives should be csue-ful about what they feed their maids. It may be taxable.

A new mling by the Internal Revenue Service dramatically shows the scliizothymlc nature of American tax laws. And it may make housewives liable for Social Security taxes on the value of the food their .servants eat, and it may make ship op-erator.s and .season liable lor taxes on the value of tongues and sounds and other food fui-nlshed sailors.

Undei- Federal income t a x laws, meals and other fringes funiishcd for the convenience of employers are not consid-erec! income, and are not liable to Federal income tax. But under the new IRS ruling, if such food and facilities represent an appi-eciable pait of the remun-rralloa of the employees, the value is taxable.

trine further;

Although the 'convenience -of-the-employer test hks been used in the income tax area to determine if the value of meals furnished is includible in gross Income, this is no longer a test for Federal employment tax purpose.s. The furnishing of one or more free meals by an employer to an employee is an appreciable part of the icmun-eration of the employee.

Whether the employer is in the business of preparing and serving meals to customers is immaterial since, m applying the relatively small value test under the applicable regulations, it is obviously impossible to distinguish between the value of a meal furnished, for example, to a bank employee an^ the value of one furnished to jan mplo.vee of a hospital restaurant.

And. it adds, the value oiZ one free meal a day is consld-

eied appreciable for employment tax purposes.

IN GOVERNIMENI E.SE The IRS expounds this doc-

This conclu.slon is also applicable for pui'po.srs of the Fed-

Mrs. Doakes shoves a plate of spaghetti and meat balls in front of her cleaning woman, or when Seaman Doakes is confronted with a similar mess, It is income and it isnt.

It isnt income for Income tax purposes, but it is Income for Social Security taxes, which employer and employee share, and it is Income for unemployment taxes, which fall on the employer.

COMPLICATIONS AHEAD

The language of the ruling states that such things aa entertainment, medical services and so-called ooui-tesy discounts on purchases are not taxable remuneration if they ai-e of relatively small value. But, as noted. a.s much as a meal a day is appreciable.

This will affect employers of waiters, cooks and busboys as well as companies that provide free meals to other employees, and give'Vmployees discounts on good'i taken out of stock.

It also, poses questions for

the difference between the value of the food and tlie price paid an appreciable payment to the workers? If so. it will open more jobs for cost accountants.

And if a waiter watches a floor show with a $3 cover, is that part of his wages? Is a bartender, allowed a drink a day, earning the 32-cent cost or the 85-cent selling price?

The IRS has opened a Pandoras box of problems. And must Pandora pay unemployment taxes on the mess?

oral Uiifmploymcnt Tax Act. ^companies that operate cafete-It would scua that when rias lor employees at a loss. Is

INFLATION CUTS TRUE PROFITS

Heres a thought: A company reports a net income of $2 million. It earned $1 mlllitm In 1939. Is it going ahead?

No. It is barely staying ev-en and even with a lousy year. The purchasing power of its stockholders dollars is just about half it was before World War II.

Few companies frankly recognize the fact that their eamlnpa are whittled away by Inflation.

J