Mpnday^^ Decenil^ 3, 1962, ' ,*

. *' ' . . , ' . - . j --A'- -

East-West Highway Needs Grow

more evident year by year *>ecome to the north and south of us. For some reason over

one of those needs which has not vet been mpt t ^.u i.- .t ^

Jbut^*or tt Commission should reasleL" 'iil amde%o;^ar7;

A Funny Thing Happen^

-OM TrtE WAV TO THE COMMOW MARKET!

"nvest

, - -

ways, but for the most part they are North-South rather than East-^est roads. The State Highway Commission has for many months had under construction tentative proposals for a major East-West highway that would traverse North Carolina. So iar, however, there has been no evidence that the

major highway linking the eastern and western sections of the state. It should accord the undertaking a higher priority than it now seems to have a move forward positively in planning such a highway. Otherwise in the years ahead North Carolina will still find itself lacking even one major East-

Highway Commsion has accorded any high priori y West hiehZvTo one major East-

to this highway need of the state. T^yfav"e"ta ruT^XZZ South* ho gh tr'st'ate"

ed in terms of possibly making such a major high- inrougn me state.

way a toll road, and they have also pointed to the

luch a highway h^.'*' ^FaiZllly StFl VGS

The time has come, it seems to us, when the TkT* T%

Highway Commission should give more serious con- T OF JMGW KGliaiSSQIlCe sideration to the necessity of a major East-West

highway for North Carolina. The time has come ^ hundred years from now it may be that tho

for the Highway Commission to take a i-more posi- arly 1960s will be regarded as marking the start live approach in making plans for providing this ^ new Renaissance.

facility which would be of tremendous benefit not such does not come to pass, it will not be

only to the Coastal Plain section of the state, but fault of the Kennedy administration. to other sections of N^h Carolina as well. Not for 'many years have residents of the

It will cost North Carolina considerable money White House been so active in promoting the arts to construct a niajor highway across the state. But refurbishing popular pride in American cul-

it has also cost the state considerable money to ^ure.

Noted musicians, poets, philosophers, singers

^i^ecord Year O::

Idina

By WILLIAM A. SHIRES ROADS Barring a severe economic slump pr unexpected calamity, insiders believe that 1963-64 wl be a record year for road, highway and bridge building across North Carolina.

Whether this is true depends largely on the 1963 General As-embly, but most souitjes feel that this will be a road-minded legislature. And aside from how much expanding of the states road program is done by the legislature, the next year and especially the next fiscal year Is likely to be a near-record one anyway.

In terms of mtmey, the November highway letting was the biggest single letting in state hist(7.

This was for only 22 projects, but all of them are in the major category and the low bids totaled a whopping $15.5 mil-llMi. Construction and crfher actual work cm the projects is not scheduled to start unt next Sprfaig. Some will be done prior to June 30, but the bulk of the W'ork will take plac^ in the 1963-64 fiscal year.

Bidding was brisk and keenly competitive oi these projects. There were 130 bidders, and state highway officials were extremely pleased bout results. The Highway Ccmiinlssion quickly approved the low bids for contract and officials estimated that the spirited bidding saved the state possibly several mlUlons of dollars in the wie letting.

SECONDARY Major attention is claimed cm the big primary and interstate road projects in the highway commis-sicxis once-a-m(Hith ccmtract lettings, simply because of the size and cost.

But equally expensive in the long run is the states huge 58,-720-mlle secondary highway system.

It still is surprising to many that North Carolina continues to have more unpaved secondary roads than paved ones. The ratio, according to a recently published secondary roads report, is above 45 per cent paved and 55 percent un-paved.

Additions to the stipes secondary system ccmtinue to increase at a far greater rate than deletiwis, and this is one big reason for the ratio not yet having reached 50-50.

REIPORTThe report wi sec-ondary roads showed that Wilkes

un-

County has the greatest paved mileage of any of the states 100 countiesa total of 859.9 miles of unpaved secondary roads and 234 miles of paved seccmdary road.

Robeson County, with 1.347 miles of sec(Hidary roads, has 828.6 miles paved, boasting both the greatest total secondary road mileage and biggest ti^l of paved secondary roads tn the state.

A couple of small western North Carolina counties have the fewest miles of paved secondary roads. Alleghany County has only 44.8 miles paved and Graham cmly 45.

INTERSTATE - A special State Highway Commission committee wi interstate scheduling priority may come up with reoHnmendations for speed-ups on some interstate highway projects.

Chairman Worth Joyner of Rocky Mount said he planned to call a meeting of his group sometime in December and a report would be forthcoming at either the December or January COTimisslon meetings.

ECONOMICThere ls% feeling of rather rosy optimism about the economy in North Canrfina for 1963.

A fairly healthy state surplus appears to be in sight and new state spending programs may be in the offing. Retail sales are in a season December spurt and heavy early Christmas buying indicates a probable banner year.

Industrial plant locations and expansions have slumped somewhat in the past month or so, but iKMi-iarm job totals are at a record high. Building trades report a generally good outlook, with prospects for a pickup in the Spring.

INSURANCENew state insurance commissioner Ed Lanier has tentative plans for a series of meetings and roundtable discussions with representatives of the insurance industry.

Lanier wants to hold these meetings within the next few weeks primarily to get the industrys thinking, its points of complaint and difficulty and its views on insurance problems.

, And out of the meetings and other studies may come a number of things other than the widely-publicized auto liability point padding- and financing' abuses. . .

and artists are regular visitors. The First Lady brings home to citizens that the home for presidents is a repository of tradition, and works to enhance its treasures of Americana.

And Thursday night, the First Family shared r> Tr^TTXT * in sponsoring a massive campaign to build a na- JOHN ABNEY tional cultural center on the Potomac. The President -r put his finger on the true significance of the under-taking, by reminding that when the dust of centuries has passed, the United States will be remembered not for our victories and defeats in battle or in politics, but for our contribution to the human spirit.

ion In The Post Office

he Accounting And Billie Sol

MEXICO CITY You know how people are always sitting around speaking about one thing

Which is as true an observation as youTl find Srti?r^5or5?^?'''com^^^ anywhere. The humanities do carry great weight in something like Mr Ted the world. Whitfeld did the other day.

It seems that Mr. Whitfeld was trying to find suitable locations for branch offices of his public relations Industry and he came across this oh, so remote village way off in the mountains.

According to Mr. Whitfeld, the former postmaster had a marvelous deal with an assistant and there was no mail coming in nor going out. But when the first of the year came around, the postmaster was severely criticized by the village council for putting cat food on the post-office budget.

And Mr. l^tfeld says that an Investigation revealed there were mice in the mail bags and several official cats were kept (Ml hand to discourage them.

The council said the cats could work for a living as well as the next person and the item was voted down. This -left the men of letters with a choir of hungry felines which was very distracting.

Well, Mr. Whitfeld says that a couple of weeks later the postmaster and a rather dismal cousin "showed up before the council and asked the Ways and Means Committee for funds to get rid of a mountain Hon.

It gets very involved here.

The Daily Reflector

INCORPORATED Published Every Afternoon Except Sund> Established 188.

WHICHARD, Publishfs

Bntered at Post Office. Greenville. N. C, m e(xmd mall matter.

SUBSCRIPTION RATES By Carrier (to Town.) Week 30r

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

One of the most interesting colloquies held before a Congressional committee in a long time has to do with accounting procedures. The case has to do with Billie Sol Estes which involves many questions of accountancy. Why did the government accountants not catch (mi to what was going on? In private enterprise, why is it so often that when cases come into court, particularly when stockholders sue management for malfeasance or misfeasance, so much time is spent discovering why the accountants reports do not precisely reflect the condition of the business?

There is no question In this discussion as to the ability or honesty of the accountants. The inquiry is into techniques, particularly preventive techniques, that is, where an accountant can foresee an error and fails to call attention. Mr, Harrtll. the Department of Agriculture accountant, said;

If we find an office where they are not able to sit down and discuss the findings with us, and. if you want to call it that, argue with us and justify their points or attempt to Justify them, that, in itself. Is a major finding, and if anything disturbs an auditor, it is that. . . They may talk us out of some cases. Justifiably so. That happens all the time. We dont try to stick to something just because ,we found it.

In private enterprise, the issue is whther the accountant is protecting the stockholders or protecting management. This Is particularly true in an analysis of inventory, when an accountant Is willing to take managements figures until the business is so loaded down with Inventory that it has to take bath*. This can run into huge losses which involve writeoffs to the detriment of the stockholder. Proper accounting would surely protect the owners of the property, the stockholders, against management which has a vested Interest In covering up errors. But It Is management which engages the accountants.

Now, let me Indicate the manner of thinking of a numbers man:

If the Billie Sol Estes case hadn't popped the way It did. and we had been able to wait until after the fact, made our audit, submitted a report,, recommendations for this, that or

something else, maybe an Inves-t^ation, maybe a recommenda-ti(Hi for a decision by General Counsel, or several other things, if that had been able to go on through to the State office, back into Washington and to the operating people, and if we had received a reply to that report indicating the action, I am referring to that as the maximum, from zero to maximum.

The other point is we stopped this work as of a certain date. Our files today show an incomplete situation.

In a word, whatever Billie Sol Estes was doing was an incomplete situation to the audit office. In private industry, a company can lose huge sums while the accountants keep the situation incomplete. Why do they not report that we cannot make an honest report because we cannot find honest figures? That would probably be an admission of incompetence. How long is it necessary to wait for a crooked situation to disclose itself? At whay point does ordinary auditing cease and policing begin?

'The defense against an incomplete audit, if translated into police activity, would be like saying that a man must first jump off the 68th floor of the Empire State Bldg. before any steps can be taken to prevent him from taking ' the plunge. Perhaps the theory Is that if he is dope enough to want to kill himself, he should

The postmaster said the howling cats were driving him crazy so he brought in several dogs who won a brief but spirited encounter and took over. Then the postmaster could not get rid of the dogs and their scratching and haying at visitors was nerve wracking.

This led to bringing in the cousins helf-grown, pet mountain lion to get rid of the dogs. But the lion took a fancy to the postoffice and objected in a terrible manner when they tried to drag him out by the tail.

So the committee chainnan asked. Where is this lion now?

He Is limning the postoffice. senor. He has been in complete charge for three days and there are strong indications he does not wish to give up the job, said the postmaster.

Then the cousin chimed with a suggestion. My wife the most disagreeable person know^ and if you hire her to work with the lion, he is sure to leave because nobody can stand being arouhd her.

The chairman thought it over and said, The mail must go through even if there is no mail. Let us study the case.

And Mr. Whitfeld reports that after an interview with the cousins wife, the committee decided they were better off with the lion since he drew no pay and had a better disposition. There are certain advantag-

Other Editors Saying... Tax Cuts And Reforms

es. the chairman pointed out. In the first place there has been no mail in or out of here for fifteen years. In the second place, the man who rents us the building will have to collect from the lion and that will be his problem.

So the postmaster asked what was the final decision and after a very brief vote, the council named the lion postmaster and closed the case.

It ended up that the ex-post-master and his assistant went home to live with the cousin, who sent his wife back to her parents figuring it served them right.

Mr. Whitfeld said the lion was doing a reasonably good Job running the post office although he is now several months behind with the rent.

* Opinions In Brief

The administration has a responsibility to protect the defense bffort of this country, as domockheed and the union, but it does not have the righl to say to the labor union that it will do the unions organizing simply by applying the screw to defense -contractors. The Charlotte Observer.

(Atlanta Constitution)

The Kennedy Administration through Secretary of the Treasury Dillon has announced it will follow through with plans for a tax cut next year. This, coupled with proposals for a thorough reform of the nations revenue structure, is aimed at ending the chronic sluggishness of the United States economy

be allow'ed to.. On the other its slow rate of growth.

hand, suppose he kills half a dozen people in the process, who Is to blame? When a firm of accountants permits the stockholders to lose their money because of' a difference of opinion between the accountants and management, the accountants wait until after the fact. This explains the r e c e'n t shlock market in Wall Street.

The probability is that accountants should be made responsible for all errors and omissions. The argument against that is that it would cost too much to discover whether an Inventory was marked up. let us say, 100 percent to affect net woi%h. On the other hand. It costs a great deal more when many lose their money when the amounts are accepted by a public accountant on the say-so of management. A bit of moral policing can hurt nobody.

The 'Billie Sol Estes investigation before the Permanent Subcommittee oh Investigations provides food for thought.

Mr. Dill(m and the majority of economists in this ccmntry agree that the present tax structure is restricting full prosperity, full employment and economic growth and modernlza-tl(Mi. Business has been discouraged from expansion and plant modernizati(m by a squeeze on profits and unrealistic depreciation schedules. High income tax rates have put a damper on investments and spending by private individuals.

It is somewhat ironic that were talking tax cuts at a time when the Federal budget is facing a deficit of more than seven billion dollars. The reasoning behind it all. how'ever. is that if the brakes can be removed from the economy, new

revenue that will be generated through full employment and prosperity will erase the deficit. This is not wishful thinking. Even former President Eisenhower has come around to the view that our present tax structure is self-defeating.

Details of the Administrations proposals have not yet been worked out. It stands to reason that there, can be little if any reduction in the Federal budget. Revenues must remain high. The problem is how to apply. taxation to spur instead of to re-strict ecbnomic growth and stability.

Tax reforms enacted this year were a beginning. Yet Congress resolutely refused to close such loopholes as the notorious gas depreciation allowances for the petroleum industry and to withhold taxes on interest and dividends. Certainly such areas as this must be included in broad-based tax reforms.

Certainly the need for revision of our whole tax stnicture is evident. And, as Secretary Dillon says, there will be am-pllB time for Congress to do the Job at its next session.

It is illegal to read the Bible in the public schools of Illinois, but a law requires the .state to provine a Bible for every prison inmate Moral of the story: Dont worry kids, if you cant read the Bible in school, you will have the opportunity to do .so when you get to pri.son.Lennox (S.D.) Independent.

People who continually brood about the changeless pa.5t are running somewhat the same hazard as the driver of a car who keeps his eyes fixed on the rear vi&w mirror ' and is inattentive to the road ahead. 'Manning (Iowa) 'jj^nitor.

Use Chrislmas Seals

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Fight TB and Other Respiratory Diseases

m me Moon

By ROGER BABSON BABSON PARK, Mass. Al-though I have already discussed this subject, in my column of November 8, I believe readers will want to know more about the probability ot going to the moon. This likelihood is confirmed by my most faithful friend, James P. W. Davidson of Wellesley, Mass., who has just returned from a 10,000-me trip visiting the leading space plants of the United States. He aroused my enthusiasm with his account of the way their activity is helping to prolong prosperity, and I was especially Impressed by the large percentage < of men entering that field.

This great moon project*. may not only be very Important of itself; but It may bring about a new era to ec(Miomio history, as did the steam engine, the electric motor, and the au-t(HnobIle. This project may prolong the present period of prosperity which otherwise might now come to a close. Therefore every wageworker should help the cause al(xig.

An idle daydream only a decade ago ~ going to the moon is today a practical, feasible engineering ' and medical subject. Many of the hazards involved to this 238,000 - me trip through outer space have been anticipated and solutions have been found to minirnire the dangers. Others require further research. Spacecraft with human cargo have already completed space orbits around the Earth,,simulating many of the conditions to be encountered in the longer trip.

The Apollo project is the one that is currently concerned with placing man on the moon by 1967. It will be, preceded by an initial testing of a three-man space flight around the Earth in 1965, a similar flight around the moon In 1966, and finally a two-man LEM (lunar exploratory capsule) landing on the moon in 1967. The ultimate project involves landing the spacecraft. on the moon by 1970.

In 1967, when all arrangements and testing will be completed, the Apollo spacecraft containing three men and a LEM will blast off, presumably from Cape Canaveral, Florida, on its voyage to the moon and back. After traveling only a few hundred miles, its speed will stabilize at 18,000 miles per hour and the spacecraft will go into orbit around the Earth. At the proper instant while in orbit, a second blast-off will boost the speed to 25,000 miles per hour in the proper direction to reach the moon and escape the Earths pull.

Finally, after 220.000 miles (and 66 hours), the speed will slow to 2,000 mUes per hour and the astronaut will guide the spacecraft into orbit around the moon. Two astronauts will then enter the LEM, drop away from the spacecraft, and land on the moon. They will return to the mother craft by blasting off from the moon, going Into orbit around the moon, joining with and entering the mother craft while in orbit, then blasting off for their return trip to Earth.

MY REASONS FOR WRITING THIS Where does the investor fit into this picture? To complete the Apollo project will require the participation of hundreds of companies, both large and small. The cost of the project will run into billions of dollars (from $20 billion to $40 billion Is the estimate). Melds of activity Include the manufacture of propellants, spacecraft, guidance systems, instruments, and heat- and radiation-resistant materials. Involved are chemistry, biology, medicine, psychology,* mathematics, communications, and astrophysics.

My reasons for writing this ar to suggest: (1) Readers should ask their Investment advisers to name the companies that will be benefited by the project. Since the space industry is one which wUI see many unpredictable changes over the years, and since the mortality rate among new companies is likely to be high. It would seem sound policy to make moderate commitments In each of several leaders which may be brought as a package. (2) Readers also should realize that the huge cost comes to only about $110 for each man, woman, and child in the United States over five or more years, or $20 per year.

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7

By EARL L, DOLGL.\SS

THAT EFFECTIVE GUIDE

There is an arresting story in the 19th chapter of the first Book of Kings which tells how on one occasion the Prophet Elijah at the command of God went forth, and stood before the Lord upon a high mountain. "And behold, the Lord passed by, and a great and strong wind rent the mountaln.s and break in pieces tho rocks before the Lord; but the Lord was not in the wind: after tho wind an earthquake; but the Lord w'a.s not in the earthquake; and after the earthquake a fire; but the Lord was not in the fire; and after the fire a still small voice.

We are alw-ays expecting God to speak to us out of earth

quakes. hurricanes, and holocausts. God does speak out of circumstances such as these, but a more inspiring reality, is the fact that usually God speaks' to us in a still small voice. We hear it in the mind. We experience it in the conscience. Perhaps a verse darts out of the Bible and pierces our hearts bringing comfort, or challenge, or rebuke. Sometimes the word of a friend or an event which happens to someone we know brings us up short and causes UK to hear for the first time, the voice of the Lord. Be prepared to hear it. Be at the spot God wants you to be for you will not hear It if you are else' where.

The .still small voice. It remains the most effective factor in the whole of human life.

By ELMER ROESSNER

The income tax cut promised for January 1 will yield very little for either the individual or the corporaticm. Increases in state and local taxes will neatly offset any cuts in Federal rates.

The taxpayers ability to pay Is an important factor Ih any tax system. In countries where the people have little income, an income tax is: of course, out of the question. But even where Income is. substantial, the rate of tax must be within the peoples ability to pay. If taxe.s are greater than the paying abilityIf they diAnot leave enough for th comforts taxpayers expectthen those taxed refu.se to pay or revolt. Tea has been dumped in Boston Harbor.

Tax Impasers gear, their lew-lc.s closely to this ability.

New y'ork presents an interesting case. In the depths of the depression. Mayor Fiorello La Guardia won the passage of a 1 percent sales tax on the plea that the money w'aa need

ed to help those on relief. Even before the recession was over the rate was tacreased to 2 per cent and, during subsequent prosperity, the rate was raised to 3 percent.

The people had shown an ability to pay increasingly greater amounts, and succeeding admihlstratlons kept boosting them. Some day the rate will rise to 4 percent and perhaps 44 percent, as it has in other places. But it is doubtful that it will go to 5. because at that point resistance rises. People show they will stop buying rather than pay taxes beyond their ability.

The same pattern was used for personal income taxes. When the Federal goveniment first imposed them, the top rate ^as less than 6 per cent. If the government had started with the pi-esent top of 91 cent, the people would gatheiTd at crossroads their shooting irons, ready to fire on an.^ revenuers.

ABILITY NEARING PEAK But the govenuneat started

out

per

have

with

in low and slowly tested the ability to pay until present rates were reached.

The fact that the government is now planning a cut in taxes is evidence that the Administration believes that the maximum ability to pay has been reached. Of course, no aimed revolt is foreseen. But the step before thata decline in the rate of business expansion and a stubbornness in unemployment figures seems to have been reached.

Politically, it is far better to beat a retreat now than to face a deep recession or revolt later on. Of course, an armed revolt Is unlikely: even a passive revolt need not be expected in the next decade, but a political tax revolt could happen

in 1064

HUNGRY STATES

But the Federal goveniment has demonstrated the ability of th'^ taxed to pay current rates. Anri If the Federal goveniment cuts rates, .state and local governments will recognize the fact that an ability to pay High.

er taxes will have been demcm-strated. So state and local taxes, so(Mi or late, wUl offset any cut In Federal rates.

State and local officials are not conspirators, seeking to get more taxes to spend for the fun of spending.

To a large extent, they are a sorry lot, besieged by hundreds of pressure groups. These groups are demanding new schools with swimming pools, more highways for their autos, more parks to drive to, more magnificent colleges, better care for the poor, fatter checks for the unemployed, nurses for the 111, more psychiatry for criminals, more sendees for the booming population and more stately pleasure domes.

They will be quick to move Into any areas the Federal gov-erament relinquishes.

Note that state and local taxes totaled $8.5 billion In 1942; reached $16 bllUim by 1950; passed 30 billion In 1958 anil w're more than $36 billion in 1960. They probably exceed $40 biliion this year.