October 9, 1962

N. C. Progress From 1949 To 1959

Eastern North Carolina, where economic prog- to a low of |1,451 in Greene County. Half of the rcss has become a matter of considerable conversa- 34 middle income counties were located in the tion in the past decade, should take a good look at coastal plain section. Twenty-three of the 33 counties the state-wide economic statistics for the period- in the lowest income group (less than $2,000 median from 1949-1959. family income) were also located in the coastal plain

Although that 10-year period brought to North section of the state. The Piedmont section, by con-Xafdtiiia an^ per cent increase ih mediaft family -only 4w^ m the low income

income, this state lagged behind neighboring states

in the rate of progress. The Coastal Plain area of It is of further significance that the greatest

the state lagged behind other areas within North of econornic gain during that 10-year period

Carolina in the rate of progress as well as in median North Carolina was made by the mountain counfamily income. The lowest rate of gain was recorded in the

The survey showed that median family income Coastal Plain counties, in North Carolina had risen to $3,956 by 1959. By Throughout most of the Coastal Plain section counties, however, the median family income rang- there has been greater emphasis on programs for ed from a high of $5,632 in Mecklenburg County economiq, progressduring the past decade than at

any other time in the sections history. It has come as a result of the recognition that the area must forge ahead in pushing its economic level upward. In spite of this greater emphasis, however, the Coastal Plain/showed less tangible gain than other area of the state during the 10 years covered by the survey.

This fact strongly suggests that the counties of the Coastal Plain area must yet put forth greater effort toward their own economic development if they are merely to keep pace with the rest of the state. Much more must be done if the Coastal Plain is not to remain the economic doormat of North Carolina.

Economic progress of the Coastal Plain counties in the pastalthough it has been significant by earlier standardswnll not be sufficient for th future if this section is to improve its relative position wrth the rest of the state.

A Good Week To Look For Fire Hazards

Image

Assigned Risk Plan And Buyers

By WILLIAM A. SHIRES HEARING A tape recording of a spot radio announcement was produced from a brief-case and threaded (mi a playback reel.

Ihere was a hush In the hearing roran, the spacious office of the state commissioner of insurance.

I want to hear this. commissioner Ed Lanier said. He leaned iOT^wird.

The voice of the radio announcer came mi. His message was for folks who wanted to buy auto liability insurance right away, with no waiting, no red tape, no assigned risk plan.

R was sponsored by an insurance agency which said It might help them.

MESSAQK-Why wait, the innoimeer add, &nd gave th address of the insurance firm hi Gastonia. The same firm also had an office in Charlotte.

In all probability, it advised, you can get off te assigned risk have yow Jnsurn<5e placed with a licensed cmnpany and have that necessary FS-1 issued Ml the spot at no additional premium to you.

An FS-1 is that slip of paper attesting to fiscal security under liability insurance protec-Umi and either the FS-1 or a heavy cash bond is required In North Carolina to register an automobile.

Ninety-nine per cent of the reglstratlMis carry FS-1 forms.

COST That part about no additional premium was especially interesting to Lanier and his Insurance department investigators.

Sworn testimony later on indicated that three-fourths of the policies Issued by the firm during a five mMiths period bore overcharged premiums. The overcharges on 322 such policies amounted to nearly $8.000 and In some cases were boosted 100

FS-ls for $15

was selling

dOUTi,

This enabled a motorist to get his registration and drive a car right away, without waiting to go through the assigned risk plan or trying to get standard insurance elsewhere. Perhaps he did later, and according to the cancellation records many did. Many financed the remainder of the annual premium costs and never came back, Hundley said.

Lanier, CMitinuing his inquiry into premium financing practices, asked Hundleys opinion as to whether the finance company could lose under a typical finance contract, providing for cancelling the insurance for non-payment. Hundleys opinion was that the finance company had no risk.

PITCH :r- Will Weill Jr.. an employe of the HuncUey agency, described the sale pitch which he said was explained by S. Dean Smith of Eastern Underwriters. Inc.. of Greensboro, and which he said Smith called perfectly legitimate.

The pitch WeiD said, was to make the custMner realize that if be accepted additioiial points, i.e.. a hfeher premium cost, then be could be insured through the company Issuing tte policies. Southern General Insurance Co. of Atlanta.

The practice, WeiH said, was to let the custmner say hes got the points and attest to it on the application. Hi^idley and Weill both said they knew or assumed In most cases that the customer actually didnt have the points. They said that they had assumed the procedure had been approved by the Insurance department and Was all nght. <

If the customer did not want to accept the points. Hundley said Smith s instructions were:

Another

Civics

By ALVIN TAYLOR

Stories O::

These taxi drivers! Your

With SO many weeks of the year given special designations, it is often difficult to separate the significant from the insignificant.

It would profit every citizen of each communi- 'StTcaravan wa^tagto

ty, however, to give special attention to Fire Pre* for the Redskins football game

vehtiori Week which is being observed during the weekend. The driver who current seven-dav neriod

current se\en-aa> perioa. ^ tion to the hotel was taika-

In spite of giant strides made in recent years tive, as most <5f them are.

in better fire protection for cities, towns and rural areas, losses each year due to fire still soar into the hundreds of millions of dollars. For the most part the better equipment, the better trained personnel and the better alarm systems dont come into play until the fire already has begun to do its damage.

The fire fighting machinery goes into action to hold the loss to a minimum.

Although many cities have fire inspectors who make periodic checks of business and manufacturing firms to eliminate fire hazards, it must primarily be the responsibility of the business proprietor or home owner to see that his premises remain as free as possible from such hazards. It is a matter which must be given attention not just one week out of the year, but constant attention. The vast majority

per cent or more. ' tw9 accidents, l^ut in cases.thev ArV

-have ^ ^ esfldoft me-

..... ii i- cvx txi sagg contrasted editonal hon-

proper attention. esty of good citizenship vs the

If you haven t made a thorough check of your reaUty of poUtical coUu-home for fire hazards, this Fire Prevention Week

would be an opportune time to do so. The fire de- wenMo /re

partment will answer a call after a fire starts, but to acquaint the citizenry of the

each family must be its own fire prevention or^ani- i^iPfrtance of the coming

2^tion election, and the candidates

3ia -Weekenc

He learned we were from North Carolina.

Is one of your Ifeams playing up here this weekend? he asked.

No, he was told. The group came to see the Redskins play.

Well I dont keep up with it, he continued. "Back a few years ago North Carolina played Maryland and the town was full of North Carolin

ians.

He chuckled. I took a group of men out to Maryland. You know you can catch a taxi out but you dont know how youll get back.

Well, we got out there and one of the men asked me how they would return.

Your guess is as good as mine, I told him.

Well come, he told me. 'Youre going to the ball game. Ive got an extra ticket.

"I went into the stadium, the taxi driver recalled. When we left I didnt know whether I was going to drive back to Washington or to

North Carolina.

'Thats the story he told. Must have been a rich oilman.

i^ublic

rorum

TO THE EDITOR:

PREPOSTEROUS PRECEDENT FOR CITY.

Security caravaners got the royal treatment on their trip to Washington, D. C. during the weekend.

There was a reception at the Raleigh Hotel given by Rep. Herbert C. Bonner Saturday night.

Sunday, when the buses took the group from the Hotel to the magnificent D. C. Stadium, there was a police escort to move them rapidly through the heavy pre-game traffic.

The day had been proclaimed North Carolina Day by the Redskins and there were appropriate half-time ceremonies.

GastOTiia firm. Hundley Insui nce Agency, was brisk.

Norman C. Hundley, the firms president, said his business in such liability policies was tremendous and that the volume surprised him. He could hardly believe it when applicants lined up on the streets outside his office and signed up for such policies as fast as they could be processed.

Why, on some Saturdays we had to call for extra help from Charlotte to handle the business, he said. He said the policy Jokingly Inquired whether he was bootlegging.

Equally surprising was the fact develMied in the testimony

ASSIGN Apparently there IS nothing more irksome in North Carolinas automobile financial responsibility-liability insurance system than the assigned risk plan. Apparently, the witnesses said, there is a stigma attached to the assigned risk plan in which the assigned risk office places unwanted or poor risk , liability with a participating company, a procedure which takes at least a few days or a week or longer.

People were completely opposed to the assigned risk plan, Hundley said.

I dont know whether its

The Redskins won the foot-

tned to claim that this was in nonor oi me Greenville visitors.

and the went to great depths to explain their standing on current Jssues.

The voters read all about It and voted their convictions and wishes. A new government was

the, ftppiiPMts. foit. liability .

policies apparently knew they were being overcharged.

The way Lanier described it was that after a sales talk in which they were told they could be Insured and Issued a policy and FS-1 If they could count as many as three points under the Safe Driver Reward point system. they picked their own crow and accepted bogus points.

The additional points boosted the premium costs.

SELL In effect, Hundley aid, what his firm was doing

6d thSl II they* did not have at least three points he would have to go the assigned risk plan. Most took the points.

Hundley said he learned later that points could not be accepted or rejected at the applicants opinion.

Lanier said he felt that the bogus points practice was a major cause of the dissatisfaction coming upon us like a tidal wave, with people realizing they were paying through the nose.

. How Did He Do

With ConoreSS? Editors Saying...

rnnges And Guidelines

Installed in the city with a clear pronouncement from the polLs.

Instead of trying to follow the wishes of their constituency. o-omo k- i

ttid td e>mti prg^ *

every honest effort to accom- Booger Scales, even

plish the voters mandate.

Rather than having a special election to accommodate the special Interest group, probably we need a special election to determine if we want to keep certain of the currently elected city council.

It is time to separate the men from the boys.

With sincere congratulations for your timely editorial.

Richard G. Culbertson Greenville

There w%s also .some pretty royal treatment by the Atlantic Coast , Line railroad which brought a special train to Greenville for the occasion.

Before the caravan left, the train made a .fpecial run to Winterville with more than 300 kids aboard. 'The train backed to Winterville but. forward or backward, the kids loved it. Many had never rid-

By GEORGE E. SOKOLSKT '

Copyslit. 1962. King F^aturea ^ Syndicate, Inc,

The New York Herald Trl-bune prlntB the foUowtog let-^ * student wrote to Senator difiord Case;

.. f* Wstory class I learned that when a President of the U. S. commits a serious crime he Is Impeached. Why Isnt a Federal governor, who is only to one state, Immed-l^ly taken out of fflce when he commits such a serious demeanor as not obeying orders of government?

The young student Is not to be blamed for his ot her Ignorance. Since our public schools have ceased to teach civics, not only chUdren but adults who have the right to vote, know very little about our government. My maU on tho subject would make an interesting volume and might explain the apathy or extremism of many citizens, who have not yet discovered that we are governed by a CMistltutlon which has managed well for us for 173 years, making us the oldest continuous government on Earth.

I hope Senator Case explains to the student that the United States Is a federation of sovereign states; that it was the states that formed the federation and ratified the Constitution; that Governors of states are not assigned to their posts by the President of the United States but are elected by the people of each state; that they are not Federal officials; that the Tenth Amdndment to the Constitution safeguards the rights of each state.

Many of the states existed, as colOTiies, prior to the Revolutionary War. Others came into the nation by the Loulslaha Purchase (1803). Florida was ceded by Spain by treaty in 1819. Texas was brought into the United States In 1845; the Oregon Country a year later and California and the Rocky Mountain States came in In 1848. Hawaii became a state in 1959. In a word, the United States has been growing as a federation of states from 1778 to the present day. Remaining outside the federation are Puerto Rico and some Islands in the Pacific.

For a considerable period of American history, the question bothered the people as to whether a state, having joined the federation, could secede from It.

The question was settled by the Civil War. Had the South won the Civil War. the probability is that there might have been a number of natiMis in the area tUaft is called the United States.

hsive cheln attcteelh* er a different kind of nation. However, the North won and ihe i4ih ana 15tn Amencunenis to the Constitution were passed.

Nevertheless, there has never been a period in American history when the question of States Rights was not raised in some part of the country. Under the 10th Amendment, the authority of the Federal Administration In Washington Ts limited. However, the welfare and the inter-state commerce clauses of the Constitution gave the Federal Government oppor-(Continued on page ten)

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By JAMES MARLOW

WASHINGTON (AP) - President Kennedys campaign to get more Democrats elected to Congress In November raises a natural question: How did he do with this present one run by Democrats?

The answer has to be mixed. In this Congress, where Democrats far outnumber Republicans. hardly any big item he asked got through unaltered. Yet, over-all Congress put through a number of his major requests. It also killed some major ones.

It has been a tardy, dawdling Congress. Until a few weeks ago Kennedy .seemed due for a robust flattening. Then, with members anxious to get home for the elections. Congress picked up speed and did important woi'k.

It j.s still here, though winding uo. after the longest se.s-sion since 1951 in the Korean War. That year it quit Oct. 20.

In a demoncratic society like this it would be asto.ilshing, perhaps lethal, if Congre.ss were so submis.sive to the executive it gave liim precisely and without question everything he a.sked.

This one didnt with Kennedy. To get much or most of what he wanted, he had to accept compromise measures.

In a very broad sense Kennedy handled both hoiuses of Congre.ss, not like the scrappy and head-knocking President Truman. but like President Eisenhower.

He leaned over backward to avoid per.sonal conflicts even with those in the Capitol who were wrecking some of his programs totally or tearing big holes in them.

But his administration put in a lot of work behind the scenes, with his aides working on individual members of Congress, sometimes with pathetic results.

Rep. Wilbur Mills, Arkansas Democrat and chairman of the very powerful House Ways and Means Committee, was to- tally against Kennedy^ medical care program for the aged. That was it. The program died.

There were efforts Kennedy could have madelike broadcasts to try to rally popula support for his program, hoping the people would put pressure on senators and representatives.

He did little of this.

He tried it once on the medical care program but talked off the cuff and the talk was far from his best.

Its true, as hes saying now In his campaigning around the country, that the Republicans in Congress repeatedly harpooned many of his programs.

But so did a lot of his own party members, particularly Southern Democrats who teamed up with Republicans again and again to frustrate him.

If the Democrats had stuck together, voting as a party, they could have drowned the outnumbered Republicans.

Besides medical care, two other major Kennedy programs were simply slaughtered: his proposal for a new department of urban affairs and housing and his request for federal aid to colleges. Last year Congress ignored his program of federal aid to public (but not Catholic) schools although it can hardly be said he worked overtime for that one.

Kennedy fared most perfectly in his requested authority for the government to buy up to $100 million in U. N. bonds to overcome a U. N. deficit, mostly from its expenses in the Congo.

His bigge.st, perhaps most far-reaching success came with congre.ssional approval of a broad, new trade and tariff-cutting program he will need In dealing with Europes Common Market. The program had wide bipartisan .support in and out of Congress.

This was also a prime example of how he had to compromise to get most of what he wanted. Over his opposition Congress in the trade bill put restrictions on trade with Yugoslavia and Poland.

Here were other major programs, in each of which Kennedy had to accept some compromise :

Foreign aidThe House approved a compromise of $3,-928,900,(K)0. a cut of $1,032,400.-000 below his original request. The Senate was dxpected to send the bill to the White House today.

Taxes- kennedv asked a 7 percent tax credit for business fiiTns for Investment in new equipment. Congre.ss gave him that.. But it turned down pleas (Continued on page ten)

r

(Roanoke (Va.) Times)

The list of fringe benefits which employers pay workers on top of straight wages and salaries runs Into the scores. These add up to a very substantial portion of labor costs. Some fringe benefitsthe employers share of social security taxes, for exampleare required by law. Others include such things as pension and insurance plans, payment for time not worked on holidays, vacations, profit sharing. Christmas bonuses, etc. The United States Chamber of Commerce has just released a report on a survey of more than 1,1(X) firms showing that costs of fringe benefits last year Increased $122 per employee over 1960. This brought these costs to a record high of $1,254.

More and more, contract negotiations between unions and employers emphasize fringes. When it is possible for these to approximate a fourth of the employees regular wages they become a primary Issue in bargaining. They account also for major increases in the co.st of production, affecting ability

to operate at a profit, a fact sometimes overlooked.

The U. S. Department of Labor is a Government agency to which we look for accurate economic statistics. Yet the department unaccountably omitted fidnges in Its report on negotiated wage rises in the first six months of 1962. The report noted that the average increase was 3.2 percent.

This percentage increase conforms with the guideline the Administration has adopted in trying to keep wage advances in line with industrys productivity gains as a brake on inflation. However, the guideline includes fririge benefits in the calculation of the economically permissible ratio of wage gains to productivity increases.

It makes a big difference, certainly, in an understanding of an important issue, to leave out of consideration entirely a central fact affecting it. To overlook fringe benefits in what purports to be a factual report is to give a completely erroneous picture of labor costs. It raises the serious que.stion of the reliability of the Governments economic statistics.

By EARL L. DOUGLASS FROM THAT VAST STOREHOUSE What Is the source of true wisdom?

Wisdom, we should never forget, is quite different from information. It often happens that people who have a great deal of information at their fingertips and stored away in their minds have very little wisdom. By the same token, some o* the wise.st people the world has ever known have possessed a very small amount of information. We

have had occaslcm to remind ourselves before that wisdom Is the ability to use facts.

But what is the source of this wisdom? It would seem that there Is a great storehouse of wisdom in the iml- ^ verse and that as we grow and I confront the different situations of life some of this dle-dom is passed over to us. Physiologically we do not understand the process nor do we understand it to any great extent psychologically. But wisdom is something which eomes from a source unknown to us. It enables us to classify and Interpret the facts with which wo are familiar. It leads us Into a proper use of these facts. Best of all It leads us to further revealing of truth.

Let us always remember that wisdom Is essentially mysterious and of supernatural nature. It is something which appears to come out of tho nature and life of God Himself. God is ready to giro us as much wisdom as we can take and use, and we develop the capacity to take and uso wisdom by the falthfulnoss

Oh# Mf. fW iM dm -Cm administer that

truth we already know.

eveled Out On A Hioh Plateau

By ELMER ROESSNKR

Lets take a look at what .some of the authorities are saying about American business: The New York Federal Reserve Bank: There is no evidence of significant weakness developing in th^ econorhy. . . however. . .the economy seems to be marking time. . .Business and personal incomes have continued to rise moderately, or at least to hold near peak rates, thus providing the purchasing power to support the current rate of economic activity.

The First National City Bank of New York: Business activity appears to have leveled out on a high plateau. Merchants and manufacturers have entered the fall .season in a cautious mood, mindful that the economic picture is mixed, displaying no definite tendency cither up or down.

Ray H. Mulford, Owens - Illinois Glass president, told a Los

Angeles audience he was concerned about the short-r a n g e provspect.s for the national economy. Too many companies today are caught between the nutcracker of rising costs and inability to raise prices, he said. However, he said piospects for the long tei-m were good.

The Morgan Guaranty Tnjst Co.: The summer months probably sustained a modest expansion in over-all busine.ss activity, but the trend was not sharply etched. Certainly it wasnt .sufficiently strong to dispel concern over the expan-.sion's staying power foi' tlic longer pull.

Printers Ink, after a survey, said, paraphra.sed, ,L e . ding merchants acro.ss the nation cx-pres.s belief that tlie high level of consumer confidence will .*:park .sales, bi iskly through the fall.

UPS AND DOWNS Dr. Paul S. Nadler, noted ec

onomist: The home construction boom has slowed and Is not likely to surge again until the war babies reach home-buying age in the late 1960s.

A. W. Zelomek. another noted economist: Christmt volume will show a moderate increase of up to 3 per cent over 1961 for a new record high , . .the result of a further gain in consumer Income as well as the record liquid assets of the public. We are not at the beginning of a major recession. The National Industrial Conference Board: Pretax profits thi.s year are expected to top last years figures for more than three-fourths of the 175 manufacturing firms participating In a survey.

Jack R. Wentworth, director of Indian Universitys Biusiness Review. wrote in the Septemberissue: FortJinately for the bu.siiie.:s analyst, there are many times when most of the

Indicators in our e(jonomy c-lrap-ly point In (Hie direction or another. It is difficult for the analyst to be wrong during these periods, except In ttie matter of degree, and busi-ness-men are less concerned with degree than with direction. This is not one of those times. The indicator* fall to present a clear pictureIndeed many of them are behaving aa though they were deliberately trying to test the analysts agUity.

At a time like this, the safest forecast is one of sideway movement, which will rarely get you Into too much trouble.

NEW WAY TO LURE CUSTOMERS IN A San Jose, Calif., savings and loan association attracts customers by stocking a pool In Its office with trout and Inviting visitors to fish free.

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