Monay, January T, 1963

Sjrmbolic?

N.C- Taxes Should Be Impartial

- North Carolina faces the question of whether to alter its present policy of no special financial inducements for new industry and follow the trend of other states in offering special deals for new plants built in the state. ,

It is certain that on the basis of what other states are doing and have done, the pressure wil' mount for North Carolina to follow the pattern providing new industries with tax exempt bonds, special consideration on property or corporate taxes and other financial inducements.

Admittedly, North. Carolinas policy of *no special financial favors to new industries is uniqu. Of the 26 states east of the Mississippi, only five North Carolina among themdo not-offer some special state-wide financial inducements for new industries.

Rather than jumping into the battle with special favors. North Carolina could better call attention to fair treatment for all with'special favors to none. The position North Carolina has taken should stand as a testimonial that North Carolina, while it wants new industry, is firmly committed to forthrightness in the handling of its tax structure and that a square

deal is for everybody. ,

' North Carolina has not and should not* play favorites. It will not shortchange the businessei, industries and citizens it already has by offering special concessions^ to others who might consider coming into the state.

One major factor in the success North Carolina has had in attracting new industries and other firms has been its reputation for good government, sound plicies and fair treatment for all. The state, in our opinion, has more to gain in the long run by perpetuating the policies which have brought about this reputation than by offering special financial inducements to new industries at the expense of its* present tbrporate and individual taxpayers.

OH THE HEVK/

N\CKEU^TAIAP LOOK^ LIKE GEORCC ' LOT 4HlRT,TOor

More Freedom Sought Outside Liberty Land

Biaaest Public

Works Proiec

By WILLIAM A. SHIRES

DUNE Building a continuous dune along the length of the chain of Outer Banks, a suggestion considered by the Committee to protect the Seashore, wmd be the biggest public worics-project ever undertaken In North Carolina.

No one has attempted to estimate the eventual cost of such isruroject, extending island by IslaiKHmm Corolla to Calabash, except mat it would be tremendous.

Nevertheless it is something that many feel must be done if the Outer Banks are to be saved. And, in effect, legislation has been prepared to make a start (Ml it at least a token start, one in the Initial and experimental stages,

UNIQUE Saving the Outer Banks of North Carolina is something unique, just as the sandy chain of barrier islands are unique to North Carolina.

There are small - scale experimental projects on reef and bank protection , and restoration being conducteci in a few places els^here, along the Maryland and Delaware coasts, but there is nothing like the problem North Carolina faces.

* Since the problem is unique, there Is precious little informa-ti(Hi and know - how that has been developed elsewhere. What North Carolina must do will be

gioneerlng in a little known eld. Heretofore there has been very little research and very little experimenting.

Fairly large sums have been ipcnt on temporary, emergency measures to protect highways, public facilities and to reduce damage Inflicted by waves and idnd. But what North Carolina proposes now is a long - range program of advance protection jnd gradual restoration.

STUDIES Federal, state ind local studies have been conducted or are in progress in 12 areas al<Mig the Outer Banks and the immediate coast. These are:

Carolina Beach and areas south of Carolina Beach to Ft. Fisher; Wrlghtsville Beach; Ft. MaccMi, Atlantic Beach and vicinity; Ocracoke; Ocracoke Inlet to Cape Lookout; Bogue Inlet to Moore Inlet; Cape Fear river to the South Carolina line; Cape L<x)kout to Bogue Inlet; mainland areas continguous to sounds and estuaries north of Cape Lookout; Outer Banks from Hatteras Inlet to the Virginia line; Washington, N. C., vicinity, and New Bern area.

- These studies were started in 1956, soon after the eight-year series of devastating hurricanes and Atlantic storms began in late 1954 and it became apparent that the Outer Banks might, within 50 years, be destroyed. The studies by the U. S. Army Corps of Engineers were authorized by Congress with costs

borne largely by the federal government with some local participation.

^ Reports have been made on most of the studies and it was from these recommendations that the long-range plan is being drawn.

WAYS Types of protection being recommended range from the high dune and protective berm, with beach nourishment, in the Carolina Beach - Wrights-ville Beach areas to a 10,400 foot barrier dike proposed for the Neuse River between Cherry Point and Wilkinson Point to protect the New Bern area.

The Neuse river dike alone, of dredged fill construction, would cost an estimated $15 million. *

A study of the Ocracoke Inlet to Cape Lookout area, which cost $195,000,' is expected to recommend protective measures which would cost the state at least five million dollars, aside from the federal participation in the project. Further, beach nourishment in this area alone would cost $100,000 a year.

Estimated costs in the Ft. Macon - Atlantic Beach area for groins, revetrnent and sand beach with berm at Ft, Macon and dune and protective berm at Atlantic Beach are at least one million dollars, with beach nourishment costs of more than $100,000 a year for 10 years.

An amount of $239,100 is being requested in the B budget of the State Department of Conservation and Development for 1963-65 protective work at Ft. Macon State Park.

FUNDS The state also will seek legLslative appropriations of at least $2.5 million for supplementing local project costs on a 50-50 basis, for purchases of such items as a one million dollar dredge, and to speed up research on such things as vegetation.

These expenditures vare merely initial steps, and there are those who feel that the eventual cost will be too much for the state to bear. If this is the case, it may be that the fate of the Outer Banks will lie with the federal government, meaning that more and more of the Banks would become federal property.

Governor Sanford referred to this possible eventuality in (ion-ferring with the state' committee, but indicated It is not the Immediate concern. In effect, he said. North Carolina must decide w'hat it can do, how best to do it, and begin acting on a definite program. The committee study, he said, is motivated primarily by our desire to save the Outer Banks and not so much on extending the federal governments ownership, now confined to the Cape Hatteras National Seashore.

Sometimes one reads something that leaves an uneasy feeling in the back of the mind . . . that things are not all they should be in this Land of the Free. -

We remember our country was founded on a series of basic concepts; among them a variety of personal freedoms, the dignity of the individua!, freedom's of choice, freedom from persecution . . . things like that, weve long taken for granted.

Then, last week we read of a handful of Amish farm families moving to Canada where they expect to find more personal freedom than they can find today in the United States.

True, there have been other disgruntled individuals who left the country claiming more freedom was to be found elsewhere; but this was a group movement out of lOwa, and more Amisn families are expected to similarly leave.

Why?

Because the Amish and Iowa school laws do not see eye to eye ... the plain folk preferring their own schools, their own standards of education and values. They really didnt stand much of a chance against the forces of conformity. So an exodus is seen beginning. ,

Some are saying well find more liberty in Canada; and it leaves a bitter taste* in our mouth. In a country born of Freedom there is a group who find their citizenship rights and freedom intolerably impaired. *

Their battleground was education; but as farmers one might think agricultures rigid regulation would offer a multiplicity of complaints. (For what farmer in our land can ignore agriculture con-trojs and hope to survive?)

But of. prime importance to the Amish was preservation of their cultural heritage . . . which would be almost certainly smothered by the public system of education. On that, they balked.

And for that, right or wrong, are sure to

have the sympathies and admiration of many.

By JOHN CHAMBERLAIN

Odd Double Standarc.

r

r

1 ne wo r aces

1

Of Last Year

Copyright, 1963, King Features Syndicate, Inc.

When it comes to civil liberties, or the liberal definition thereof, we seem to have a double standard.

To begin, when the supporters of desegregation invaded lunchrooms and chain stores in the Carolinas last year, civil libertarian students in far - distant Providence, R. I started a scholarship fund for Negro boys and girls who had the misfortune to be expelled from college for taking part in the Southern sit-in demonstrations. And there was a rash of sympathy picketing in the North of chain variety stores which had been following segregation policies in their branches below the Mason - Dixon line. ^

For all sincere civil libertarians, the ^thor of this column, who happens to be the staunchest sort of believer in the free speech provision of the First Amendment, has a great deal of sympathy. Peaceful picketing in defense of free expression of opinion should always be supported. But why is it that

the passion for civil liberties is seldom extended to those who fall afoul of the local police because of anti - Communist dem-wstrations?

The double standard In the defense of picketers by civil libertarian groups has been very much in evidence ever since seventy right - wing demonstrators were pounced upon on December 15, 1%2, for invading Kleins store in Yonkers, New York, with signs that called attention to goods on the shelves that had allegedly been manufactured in countries ea.st of the Communist Iron Curtain. Among the invaders of Kleins were members of the new New York Conservative Party. Although the anti-Communist demonstrators were, by all reports, dignified and orderly in their march on Kleins, detectives failed in a couple of instances to handle the invaders gently. Eight of the demonstrators were held for an hour and a half and arraigned later inMhe day on charges of *^ disorderly con(luct. A couple of days later * the chai*ges were amplified to in

clude allegations of profanity and molestaticxi of the Klein shelves, although onlookers had failed to note any evidence of such unseemly behavior.

WeU, the trial of the anU-Communist demonstrators has been set for today, January 7. in Yonkers. Although we liye in hopes, We doubt very much that the new National Student, Movement, a coalition of college civil rights supporters who are busy planning boycotts companies which discriminate gainst minority groups in their Hiring practices, will take any part in the defense of the eight anti-Communists, ^

The Daily Reflector

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T

By RALPH ROBEY

There were many developments of a cheerful character in 1962, and there also were quite a few that were, and are, disturbing. On the good side the following were outstanding;

The total value of goods and services produced in the nation, or gross national product, increased quarter by quarter. For the year as a whole the figure is estimated to be about $554 billion, as compared with $519 billion in 1%1.

Personal income rose month by month throughout the year. In November, the last period for which data are available,' the total was $447 billion; in T'961, the comparable figjire was $428 billion.

The total of new construction private and government combined made a new annual high of $61 billion, as against a shade above $57 billion in 1961. Private non-farm housing starts did remarkably well. In November the seasonally adjusted annual rate was i.533,-000 A year earlier the comparable figure was 1,345,000.

Retail sales also did well for the year as a whole and apparently the Christmas trade was a little above that of 1961. However, the picture was rather spotty, both by line of goods and by regions. One significant complicating fact was the new-spa-per strike in New York just at the crucial Christmas shopping period.

The 1963 automobile model year has started off at a terrific pace and the industry is widely forecasting a total volume of sales for 1963 of about 7 million. If this turns out to be tme it would be the first time in history that we had two great automobile years back to back.

Wholesale prices have continued their stability. The index has not varied as much as a point for five years. Consumer prices, in contrast, have sho\\Ti

a slow upward creep. The increase during the year has been about iy percent, but that has come on top of a similar rise for each'of the past five years.

The money supply has remained plentiful throughout the year and interest rates have tended to decline slightly in many categories.

Farm income in the third quarter was at an annual rate identical with that for 1961 as a whole.

In the Cuban crisis the Kennedy Administration revealed maturity and courage. This may foreshadow a generally better foreign policy.

On the disturbing side Uiere aie the following: .....

Total industrial production, seasonally adjusted, has been unable to move off its plateau since last July. For this item this is an unusually long period of stability.

The rate of unemployment remains distressingly high. In November it was, 5.8 percent of the civilian labor force, and no one sees appreciable improvement in the coming months.

Business profits remains squeezed. The last official figures are for the third quarter, and they still are below the final three months of 1961. Some companies and some industries are doing better, but for the economy as a whole the total is well below what is needed.

Expenditures for new plant and equipment are now predicted to show a slight decline in the first quarter of 1963, and business inventories no longer are being accumulated at a stimulating rate.

The international balance of payments will show a larger deficit this year than had been anticipated a few months ago. It is expected to be about $2 billion, as against a hoped for total of $1.5 billion.

Federal government expenditures continue to rise and rise.

'Continued on page five>

Other Editors Saying... Red Merschandise

(Greensboro Daily News)

Of all the patriotic campaigns adopted by self-appointed cold warriors in the U. S., the campaign against Polish, Czech and Yugoslav merchandise in American stores strikes us as the most short-sighted and inept.

It all started, apparently, when Dr. Jerome D. Harold, Miami chiropractor, organized the first Committee to Warn of the Arrival of Communist Merchandise; now the Wall Street Journal reports similar committees at work in some 260 cities in 48 states.

These committees, using pressure campaigns and even card parties in which tiny cards are inserted reading always buy your Communist merchandise at have man;

tacts for Communist merchandise. For about five yeai s. Communist bloc imports have risen T-they now are valued at about $125,000,000 per year, as again.'^t the some $287,000,000 worth of goods the U. S. sells behind the iron curtain. ,

aged to curb the Irajiort of Polish hams, Yugoslav clothes hangers, and Czech Christmas tree decorations, apparently under the illusion that they are helping this country in its struggle against Communism.

Are they? WeU, it aU depends on how the cold war is conceived. If the object of these drives is to force the East European satellite countries back into economic thraldom to Communist bloc markets, and perhaps to impoverish the Polish laborers who first rose against Russian neo-imperialism, then they are likely to be quite successful. A number of l^rge chain stores have canceUed their import con-

In economic terms, the total figure is negligible, representing less than 1 percent of all U. S. imports from abroad. Politically, however, it is far from negligible. After Titos break with Stalin in 1948. it was decided to try to coax Yu-gloslavia into closer trade ties with the West. This policy has succeeded. WeU over 60 percent of Yugoslavias trade is with

:Vthe West. Polands, incidentaUy, is approaching 50 percent.

It is a simple ccontMnic and poUtical fact that where Russia dominates the markets of a sat-eUlte country, she also dictates its poUtical alignment. UntU 1956, when the Polish and Hungarian revolts forced Moscow to change tactics, this, with occupying Red Army troops, had been the sticking agent of the Soviet imperium.

^ The busy-body campaigns against Communist merchandise could weU wreck this delicately-planned policy. In fact, it might be argued that the committees to warn of the arrival of Communist merchandise, far from fighting their countrys battles, are really abetting a good KremUn cause.

Costs

Imoact

There is. of course, a legal doubt that the First Amendfnent guarantee of the right of free speech can be used constitutionally to cover the invasion of private property. As the late Justice OUver WendeU Holmes once said, nobody has the right to shout fire in a crowded theatre unless there reaUy happens to be a fire. The right to control behavior in a theatre belongs to the owners of the premises, who make the rules governing' the usage of their o)^ti property. Presumably, the owners of the Klein store in Y(mk-ers have a comparable right to lay down the rules of the road for traffic in their aisle.s.

By ROGER BABSON

BABSON PARK, Mass.,No analysis of present conditions or prospects for the future should leave out the impact of labor costs on our manufacturing and services. Workers naturally think in terms of how much they are getting In today's pay envelope and how much they. will get in tomorrows. They do not often give much attention to the fact that employers must think always of how to hold employment w, how to meet rising labor costs, how to keep their businesses healthy, how to ensure fair proflte, how to keep prices down, or now to put aside funds for modernizar ti(Mi and expansion. Perhaps only an emplojfw can really appreciate these problems.

Reader may ask: Jtist^ much of an Inroad have labor costs made? A recent surwy Indicates that total pay for tlmo worked ha soared 120 percent over the past 15 yean. Far more spectaailar is the fact that fringe benefits now cost management about 325 percent more than they did at ^ end of the Korean War. B to see what overwhennlng pressure this exerts <m the price of American goods and services. Little wonder that cheap-labor foreign goods are underselling us along steadUy broader fronts. Ec(Mi<Mnl5ts are justified in crying for a return to the law pf supply and demand for labor rather than having to operate under the pay-price Inflation that is so economically unrealistic.

WORKERS LOST OUT No sane observer wants to see the nations workers deprived of their fair sli< of the profits pie. But when wage and fringe costs become top-heavy, the workers lose their gains through skyrocketing living costs, a cutdown in working hours, and unemployment. Too many union leaders, however. act , as though profits should be used only to swell payrolls. They give little or no regard to the necessity of distributing reason^le segments of profits to owners, Investors, researchers. dlstributiMs, planners of future plant expansion, and most important of all, to the pubUc in the form of lower prices all along the Une.

When employers balk against exaggerated wage demands, unions frequently resort to schemes of taking less In actual cash In return for new or extended fringes. But workers should realize that fringes ar just as expensive for the ccxn-pany as are dollars placed In pay envelopes. Fringes may be out of sight of the emptoyes; but they ar e very much In view when coipany expenditures ar totaled. They are just as Inflationary as outslzed wag hikes, if somewhat more subtle.

GOVERNMENT GUIDELINE IGNORED

But if the case for Kleins in Y*onkers be conceded, the same constitutional dispensation

should be accorded the owners of hamburger stands and drug store soda fountains in the South. If there Ls to be a limitaticm on the reach of the provisions of the First Amendment, that limitation should be the same everywhere. Contrariwise, if the defense of free speech carries into the interiors of chain stores and coffee shops in North Carolina on the ground that shops and restaurants are public conveniences, then that defense of free speech should carry inside the portals of Kleins store in Yonkers. In a democratic republic, what is fair for one is or should be fair for all.

The H'esidents Council, in a move 'designed to curb the pay-price upsplral, decided some time ago that It would be all right for unions to negotiate raises as long as they did not go beyond the roughly 3 percent annual productivity guideline. Instead, coosistcntly more than that has been asked for in straight pay boosts, and In calls for further additions to fringes.-

Human nature tjeing what it is, it is probably unrealistic to expect our civil libertarians to rise abov^the parochial pers-bective of civil liberties for our side. As they recall it, Voltaire was talking through his hat when he said, I wholly disagree with what you say, but I will defend to the death your right to say it. They think that Voltaire, that sly old fellow, had a mental reservation and they have consequently amended the Voltalr-ean dictum to read: I may have mixed feelings about what you say. but if you can prove to me that my ox has been gored I will defend to the death your right to help my side with your insistence on free speech for yourself.

Looking ahead, I foresee no change in labors decision to bypass the governments productivity guideline. Labor leaders, in order to hold their own jobs, try to get all possible c(Micessi(Mis in both straight raLses and fringe beneflte. It certainly lo<*s now as if any reductiHi in union demands over the period ahead would stem from possible business weakness and the fear of layoffs.

RAISES VIA SHORTER HOURS

Some union leader have oo their agenda another move that wUl result in still higher labor costs,and this is the drive for the 35-hour week, They want this concession with no change In take-home-pay, which would mean a 14 percent hike in basic hourly wage rates. Since they see little chance of getting C(i-gress to grant such a boon, they hope to get it by fighting ahead company by company, industry by industry. I fear you may see more of this as 1963 wcM-ks along.

Dont Count On Income Tax Cut

Strength For Today

By EARL L. DOUGLASS LEADERSHIP

Leadership is one of the mast important factors of life.

Oh. Im independent. I do my own thinking and go my own way. Only to a certain extent, my friend. Even our good interttions have to be organized and set forth by a per-sonality-^and this personality is a leader. If we had no leadership in the world, we would have chaos. A world without leaders is unthinkable. If people began to mill about Injuring one another because they had no leadership of any kind, they would soon choose leaders, and in all probability bad leaders.

imagination. They cannot carry on their enterprises merely by looking up procedure in a book. They must have an ideal before them and press toward that ideal. In the third place, good leaders have to be resourceful, and to be resourceful means to have the capacity to call upon one's powers quickly, to arrange them in effective pattenis, to get something started and to get it started in time to avoid trouble.

What arc the requirements of good leadership First. of all, sincerity. This needs no ampli-. fication. In the second place leaders need to have vision, or

1*^0 other necessary (jualities in the life of leaders are firmness and commitment. The weak, pliant person in a position of leadership gets himself and hLs imfortunate followers nowhere except into trouble. Furthermore, eyery leader in the world has to have the capacity to forget himself, to throw himself into whatever he is'doing in other words, to be committed.

By ELMER ROESSNER There is a strong possibility that the promised income tax will be bogged down in a swamp of politics. Almost all Congressmen and other ^litical leaders want a tax cut, but each one wants to write his own schedule.

However, because there is such strong sentiment. sort of cut will probably get through. Meanwhile, it will be hazardous for businessmen to proceed on the assumption that the' cut will be either large, immediate or certain.

Best guidspice? Dont start spending or investing tax savingsor paying them out in dividendsuntil you know how much and when.

PORTABLE TV PUSH Rere are more .look-aheads In business;

This will be the portable-TV year: One of the least exploited television' markets is that' of portables, especially in the 16-inch size. Importers and manufacturers are planning heavy promotions for this second-set business. One big mailorder house is planning to offer

a 16-inch made-in-Japan set for under $80; American manufacturers are planning to compete. The biggest push will come in late, spring, when advertise-. ments will stress the pleasures of portables at the beacjj, on water craft and in the mountains.

New lead price hike: Lead is~ui short supply and the recent price rise may have been only a starter. The longshore strike has kept out imports, tightening supplies.

Cement prices steadying: The new round of cement price increases is not succeeding. Several companies in the South and Midwest are shaving recent increases and other companies, expected to boost prices, are holding finn. The timing was bad; highway and construction users need less in winter.' MORE TIME PAYMENTS

terms in some areas, it found.

Mona Lisa boil up: The display of the famous painting in the United States will stir up a Iptof opportunistic -pronotions.* Expect Mona Lisa hair styles, beauty aids and accessories. However, there are limits to how much Monalising the public will take. Chromo copies of the famous painting are now cut-price items.

Im out of town," I said when the Old Promoter strode in unannounced tciday. He had that have - you - a - few -thousand-to-lnvest look in his eye.

Instalment credit to rise: A study for the American Bankers Asso<:iation indicates that the Xhristmas rise will carry bn, perhaps at a milder rate, into the new year. Competition ha.s reduced rates and softened

New Cuban problem: The release of the 1,113 Bay of Pigs prisonei*s, plus thousands of their relatives, is creating a situation which government agencies are trying tb answer. Its all being done quietly to avoid clouding the success of the liberation negotiations. But the success has brought thousands more Cubans to America who need food, shelter and, above all, Jobs. Expect a public appeal (it may get into print before this column) for assistance .in integrating these heroic people into the United States economy.

He grinned at my remark.

"This time I have tt made," he said. Everybody elM i bringing out diaries and account books for businessmen to use to substantiate deducticms under the new tax law. But I want to bring out a book of receipts, printed With the bus* inessmans name and address. When he spends a fLstful of bucks in a Joint to cntrtain customers, he simply shoves the receipt book to the maltre d' and gets a signature on payment. It's much better than trying to get signed chits and tabs. My gimmick will be an ad campaign built around the idea that $2 spent for a book of blank receipts can save hundreds of dollars to taxes."

OLD PROMOTER PLANS PERSONAL RECEIPTS

We told him It was a good idea, that It will be swiped as soO as it la publicized, and that we would rather put our money to olL