Tuesday, February 12, 1963 -

Disproportionate Burden Imposed

On the surface, the $7 million recommended in of the total capital outlay money. In the proposed ' states budget for capital improvements at East capital outlay budget for East Carolina College, the Carolina College during the next bienniuin looks im- self-liquidating portion is jumped to 47 per cent of pressive. ^ ____ the total.

A closer look at the source^of these capital im- In all probability it will mean that East Caro-provement funds for East Carolina raises the serious lina will have to increase students fees, dormitory question of whether too much of the total is to come rents and other sources of revenue from college from self-liquidating funds. activities in order to repay the additional loans.

Of the $7 million in ?apital improvement This prospective increase in the mdm^ money to be spent by East Carolina during the next cost of attending college must be carefully vie.ghed two ^ears. it is proposed that only $3.7 million, or against the number of Prospectoe studente who approximately 53 per cent, come from state funds, would be prevented from attending East Carolm^ The remaining $3.3 million, or approximately 47 College because of the increa^d cost inv Ived in per cent, is to be in the form of self-liquidating loans defraying such an additional burden in self-liqui-that would have to be repaid out of student fees, , fv, 4.

dormitory rents and other sources of revenue from The

college activities. This would mean, of course, that possibly meet all the capital improvement needs of,

higher fees would have to be charged students its educational institutions without some self-liqui-

attending East Carolina College in order to repay dating loans. At

thP fldditional loans reasoning behind the proposals which would

the additional loans. u . , . . require East Carolina College to shoulder a larger

1 eoo - ~ 1 17^ nr fc fn hp portion of its capital improvements through self-

only $28 million of the total $1.7 liquidating loans than most of the other^stitutions

o of higher learning in North Carolina.

From the standpoint of utilization of its facilities, East Carolina College ranks at the top of North Carolinas state-supported colleges. From the standpoint of per-student appropriation for operations, East Carolina ranks near the bottom among the states educational institutions. In short, the state is getting a greater return for its money invested in East Carolina College than most of the other institutions of higher learning.

The college should not be asked to bear a disproportionate 'share of its capital improvement funds during the coming biennium through self-liquidating loans.

... and hows YOUR heart?

self-liquidating loans represent about 24 per cent

A

ine-By-Line Search

By WILLIAM A. SHIRES

GAMEA game of legislative hide-and-seek with the record 1963-65 budget proposals wiU begin very soon in the joint Appropriations committee.

This game, played by every legislature, involves searching line by line through the budget documents for funds to do things not provided for in the original reconunendations.

No budget proposals in history have been approved en toto. There always is some adjustment, altering and revising usually upward. The game begins when the governor presents his biennial spending proposals to the General Assembly. This time, with a record $1.8 billion total, what happens should be especially mteresthig.

FLEXIBLETo begin with. Governor Sanfords budget apparently is more flexible than It might appear from its broad outlines, a fact that the legislature likely will seize upon With great glee.

One source, an official who helped write the budget proposals. believes that the margin of safe adjustment" already in the recommendations Is in the neighborhood of $10 million. ........................ ^

Thats already in there to play with, he said. Its just a matter of finding it.

This figure is relatively small, compared with the huge total. But It is incentive, and does Indicate that unlike some budgets of the past it is not so rigid that the administration would fight any such alteration.

ADDITION While the Sanford budget gives the impression of being a tight document, leaving a mere $65 thousand credit balance for the General Fund on June 30. 1965it actually contains additional features allowing possible adjustments far in excess of $10 million.

Administration budget officials point out. of course, that they do not recommend drastic changes and, in fact, are not suggesting changes at all at this time.

They Insist that the budget Banford has presented is both generous and realistic and at the same time very conservative.

It does not, for example, recommend any state bond issues for capital Improvemits, for building programs or port expansion and the like, beyond a $21.9 million bond issue w'hich can be floated by the legislature Itself. The recommendation to take nearly half of the big General Fund surplus, $47 million of the $104 million surplus, and put it Into capital construction projects was described as financing of the most conservative type. Sanford

and his advisors felt certain that this action would receive Immediate approval of conservative groups, such as the N.C. Citizens Association.

INCREASE!It is not beyond possibility that the 1963-65 budget might be increased to the total figure of two billion dollars. It would happen with an increase of only about $175 millionand there is support in the legislature of a highway bond -issue which State Treasurer Edwin Gill has said could be voted and financed without an increase in taxes.

Certain other bond issue proposals were studied and considered, but rejected on grounds that the state could get along without them and they would be too free-spending. Again, this was a conservative view.

FACTORAnother important factor in considering possible adjustments and changes in the budget proposals before the ap-propnations act becomes law is tlie basis for the 1963-65 revenue estimates.

This, too, was on the conservative side. The estimates were made last October. They did not allow for a possible uptuni in the national economy spur-

red. by a tax cut. In fact the

estirnates were basedT cators foreseeing at least a levelling-off if not an actual decline in the basic economy.

Even so, the Sanford budget is based on indicated available state money in the amount of $841 million, and the A budgetfor continuing state services at their present levels and maintaining existing programs -is pegged at $814. Thus, this time the A budget is more than provided for even with revenue estimates that may well be considered conservative, and without touching the $104 million surplus.

Use of the surplus in the capital Improvements budget is a one shot non-recurring expense, and what was left is applied to the B or enrichment budget.

USE If the hide-and-seek game goes as it has in the past, the hidden $10 millionand morecan be gobbled up quickly.

Implementing the Kerr-Mills medical assistance to the aged program, for example, might cost approximately $1 million. Tax relief mentiwied by the governor in his budget message might amount to several millions in revising certain tax laws and perhaps increasing personal income tax exemption allowances.

Another item that might be costly would be reducing the amounts recommended for self-liquidating type college dormitories, thus avoiding steep increases in student rentals.

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Little

New

More

Effort

Than A To Stall

The call for another referendumthis one on the matter of financing public housing and urban renewal programs for Greenvilleappears to us little more than another effort to stall the programs that have been stalled too long already.

In calling for another referendum on the financing of the programs, Councilman James W.

Lee said it is for the purpose of giving the Council authority to put city funds into the programs if that is necessary. They say it wont cost us any thing, Councilman Lee told the Council. Maybe it wont, but if it does this will give us the authority.

Obviously, even without referendum, the Council has authority to defray the local share of the programs, even if a cash outlay from the city is required. The referendum, therefore, is not necessary ______ ...............

to give the Council any authority it does not already up*a**cai^n*'of cigarettes'as he have with regard to financing the programs.

The spexiial referendum .prQEtosed by Council-

man Lee w^ould, of course, cost the taxpayers money for holding it, and it could further delay the programs.

We trust the Council,"inthe best interest of the city and its citizens, will reject this latest proposal for another referendum in conjunction with the public housing and urban renewal programs.

GREENSBORO DAILY NEWS

By ALVIN TAYLOR

'Old Hill Giving Grgunc.

I don't know the validity of the current argument over whether cigarette advertising is aimed at the young folks, but I do know it doesnt teach them anything about prices.

A little tyke was seen to pick

toddled along behind his mother in the super market. He made it as tar as the checkout counter where he tried to

pay for it v\1th a nickle.

Seems he wanted the cigarettes for his daddy.

An ancient hill Is giving way to progress. It is, of course, the hill on Fifth Street beyond which lies thfi ever-expanding campus of East Carolina College. : ................

Drag pans and bulldozers roar in the once peaceful wood-

Other Editors - Sayirrg .- r7 nion Sincerity

Oilemmas Now jOng-Ranging

NATIONAL ADVERTISING REPRESE>iTATrVE8 Thomas P. Clark Co., Inc., New York, Chicago, Atlanta Member Audit Bureru o Circulation.

Ail advertising copy must be received at least one day before |>ubllcatlon date.

By JAMES MARLOW

WASHINGTON (AP) President Kennedys, present dilemmas look gummy and undrama-tic compared with the hair-raisers of his first two White House years. But some of them may be just as far - reaching and more tortured.

Those two years included the missiles-in-Cuba crisis, the disastrous Cuban invasion by rebels whom this country supported but not enough, and the showdown with the steel industry over price increases.

They had no chance to gang up (Ml him. as the present ones are doing, becaus each was settled quickly. They just happened to be the kind that could be settled that way. And there were many months between them.

That is not the case now. Because it is not, Kennedys pr^-ent problems carry with them the uneasy feeling typical of unfinished business.

The main ones now are French President Charles de Gaulle, the Russian men and weapons still in Cuba, American leadership and participa-ti(Hi in the European alliance, and perhaps some anti-Americanism in Can^a. ,

The problem with De Gaulle and the European allies seems by all odds the most important, the least easy solution, and the one which may in the end shape the history of the world.

The Canadian problem should be short. When the U. S. government nudged Prime Minister John Diefenbaker for not putting nuclear warheads on American weapons turned over to him, he snapped b^k that this was interfereni^e in Canadas business.

But the American criticism gave other Canadians, including members of his own Cabinet, a chance to show their displeasure with Diefenbaker. His government was overthro^Ti.

In the campaign to choose a new government some anti-Americanism may crop up. This is not likely to be deep or last long, in view of the Canadian criticism that has piled up on Diefenbakec.

For this reason a nice question dances in the background: Did the American government have reason beforehand to believe Its complaint against Diefenbaker once made would give his critics a springboard and in the end perhaps result in getting the warheads on Canadian w-eapons?

As for the Soviet men and weapons in Cuba this is sticky, uncomfo^ble, and at the moment apparently not critical. Some members of both parties in Ctragress have stormed about the Russian presence 90 miles from the United States.

They see more danger in the situation than the administration admits to. They want a solution but they do not advocate an Invasion of Cuba to effect the solution.

That leaves Kennedy just about only two things he can do and both take time:

Keep a watch on Cuba to be sure the problem does not get worse and, in the meantime, negotiate with Premier Khrushchev, as he is doing now, to get the Soviet troops out.

De Gaulle is the biggest long-range problem. American efforts to create and keep a Western alliance that is not (Mily international but transatlantic (Ckjntinued on page 6)

The Lynchburg (Va.) News

The costly big strikes, settled or unsettled, reveal one or two things, probably both. Either the union leaders, who call the strikes in demand for higher wages and benefits that are also increased wages by indirection, are ignorant of what creates wealth or they are utterly indifferent to the future of the men they rule. They are insincere in what they tell union members. They lack a true patriotic concern for their country.

Capital used in production creates wealth. Increase of profitable production, and there ^ no production increase when it is not profitable, increases wealth. Do the labor leaders tell the workers this? No, they do not. In fact they seek to curtail production through an ever shorter work week. And they threaten to kill American export of the surplus the country produces by making production costs ever higher so that American products cannot compete with the products of (^ef countries.

In the face of the rise of the European Comm<Mi Market in stimulating production, increasing the efficiency of production, and selling the world excellent products at lower -prices than we can sell them. American organized labor Is forcing up production (josts and therefore prices. If ever there were an adequate living example of killing the goose that lays the golden egg, this Is it.

In the process, moving straight ahead against the economic principles of a free society, big strikes are called, crippling the essential industries and

Injuring eccmomlcally milli(Mis of Americans not able to have a voice though they do have a voice to direct toward spineless members of, Congress who refuse to curb uni(Hi power. And it is reasonable to say that the spinelessness of the members of Congress is due to the indifference of the American voters. There are exceptions, but they are minor in the total body of the electorate. These things are not theory, but the sound elements of economic processes.

Organized labor sincerity takes, on this basis, the form of being sincerely interested in immediate gains for itself, though the gains of ten are illusory and if the process is not controlled will be fatal to the economic welfare of those who forced it, as well as to all others.

Equitable union - management bargaining is one thing, but ruthlessly enforced demands is something else. And the rise of economic power, the production, of Western Europe, Is proving it more every day. There Is a slow rise of the standard of living in Western Europe, accomplished by efficient production, improved Industrial techniques, lntroducti(Mi of automation processes. And production of quality goods making them highly competitive with American quality goods.

The program of the top union men should be caUed Project Overlord for what they seek is the power to control eveiT-thing. Yet their economic ignorance and lack of sincerity in their programs and proposals is the best proof that they are not competent to exercise great power, the power they hold and the additional power they seek.

ed area where, fpr more years than man has been here, the sounds of wild life have resounded.

The construction machinery tear into the coastal plain soil, preparing the way for a foundation on which a seven-story dorm will rest.

The hill. In iact ^tthe whole college campus, was rural when the first buildings of East Carolina Teachers Training School were ccHistructed.

But even then, when a portion of Austin and two dorms were built, the hill was spared as a buffer between campus and town.

Since then, of course the town has surrounded the old campus. It, and many acres added since, have seen new structures rise as East Carolina College expanded to fill the educational needs of its area.

But somehow the wooded hill remained nearly untouched, an oasis of quiet between the hustle and bustle of the citys business district and the youthful activity of the college campus.

This is not to criticize the decision that brought about the present digging w'hich will forever split asunder the peace of the hill.

It is simply a victim of progress. More dorms for w(Mnen were needed; there was ho room elsewhere; it was logical that buildings s<x>ner or later push into this area. >

But many a man will remember, varying years back, walking arm in arm wdth his best girl across the hill. Many a serious student will recall shuffling alone in silent meditation through the fallen leaves that annually sprinkled its crest. There will even be memories of occasional snows, when the front of the hill made the best sledding spot in town.

The wooded hill will soon be greatly changed.

Quote

Useful occupation for young people and older people are the basic tranquilizers. Frequently those can be counted on to be more effective than those taken from a bottle at a price. Greenville (S.C.) News.

Hurting

Uncles

Subsidy

By JOHN CHAMBERLAIN

Copyright. 1963, King Features Syndicate, Inc. Anti-Americanism is demonstrably on the Increase in-Canada. Mostly its a matter politics. But in addition to disliking the attitude of official Washington vis-a-vis the Ottawa government. Canadians must also be feeling pretty contemptuous of private U. S. citizens these days.

The truth is that Americans who believe in a free economic system are being played for suckers by provincial governments north of the border. Respectable Wall Street , Investment houses and U. S. insurance companies have been ponying up the funds to finance Canadian local government take-overs of privately owned electrical power companies that have been efficiently mn at a regulated profit of .less than six percent (Hi the Invested capital.

This business of cutting our own throats ideologically speaking by financing provincial socialism began a couple of years ago, when the local government of British Columbia grabbed the pr()erties of the British Columbia Power Company at a price that was well below the market. In spite of this assault (Ml equity and the principles of the free market, the British Columbia government has had no difficulty in selling its State bcttids to the tune of $25 million through underwriters In the United States. And in addition to expropriating the local private power interests, the Brit- Ish Columbia government went Into the ferry business In com-petiti(Mi ^dth commercial ferries.

The success of British Columbia in its power take-over venture probably encouraged the Quebec premier Jean Le-sage offered the eleven companies a total of $604 millioo for their stock. One of the bigger c(xnpanies, Shawinlgan Water and Power, was told that it could have $30 for each share of surrendered stock, with owners granted permission to reacijuire assets "other than electric at $5 a share. Though the offer was fairness itself when compared to the prlca paid to the private investors in British Columbia, it still seemed a little under true worth to the dire<ttors of the Shawinlgan company. A professional engineering company in Montreal, wbiklhg in conjunction with tha U. 8. firm of Stone and Webster. made an audit of Shawinl-gans property, and reached tha conclusion that it was worth $40 per share at present reproductive values. But the Quebec government said its offer was not negotiable.

R is, of course, no business of United Slates citizens to tell the Quebec government what it sh(^d do.

Since eighty percent of tha owTiers of Shawinlgan live in Canada (with fifty percent of them domiciled in Quebec), the proposed take-over is an internal Canadian affair. Even so, it might be pointed (Hit that the argument for take-over presented by Quebecs Natural Resources Minister Rene Levesque seems pretty fishy. Looking at the record of public ownership in neighboring Ontario, Mcmslaur Levesqua avers that the Ontario govem-mit has been saving the power c(Mi8umer money by giving him electric current that la not subject to Federal taxation. True enough, the private power companies in Quebec have, in a manner of speaking, been subsidizing the Canadian federal government by paying taxes which Ontario has not had to pay. But why, so the Shawln-igan owners wish to know, should their company be grabbed simply because Ottawa has been letting the province of Ontario get away with an Inequitable special privilege? If there are no private power companies to tax, other sources of revenue will have to be found and Quebec will still have to shoulder a share of the burden.

For U. S. citizens, Canadian methods of raising taxes are an academic matter. But it Is not academic when the Quebec government, to pay for its take-over of the eleven power companies, proposes that U.S. financial Institutions put up the money. This, of course, is what has happened. Just last week representatives of the Quebec (Continued on page 6)

Lver More Govmt Workers

Strength For Today

By EARL L. DOUGLASS ALL OF ONES LIFE There is a thrilling account in the sbrth chapter of the Book of Isaiah which describes the vision of the young prophet. In the year that King Uzziah died. Isaiah saw God seated upon a throne, high and lifted up; and his train filled the temple.

Uzziah had reigned for fifty-two years. The nation had come to believe that there was no true security for them unless Uzziah vfks on hand to lead them. Thfc year he died a par-alyj^g fear spread over the nation. Multitudes were sure that without Uzziahs leadership the nation would be overwhelmed by enemies from without and dissolved by weaknesses from within.

It was at this time that young Isaiah had his vision of God high and lifted up." It was Gods way of saying that although Uzziah had died, there were others who would and could take his place. Furthermore. Uzziah was a mortal. The irnmortal and unchanging God, also king, and king of an area vastly greater than that which Uzziah had reigned over, would see that his people were taken care of. |

As (Mie leader dies, God stands ready to raise up another In his place. Furthermore, we are to be conscious of the fact that at all times God is near us, supporting us, guiding us in the way we should go. His train fills the tempe. He must have all of our life or He will take none of it.

By ELMER ROESSNER

Businessmen, from top executives of AT&T and IBM to Jos Psquat, who runs Psquats grocery store at the comer, today face the fact that the texture of their customers is changing.

More and more their customers ai'e bound to be government employees: Federal, state and local employees. The numbers continue to rise and, as they do. they present new opportunities and new problems to the merchandiser.

In 1920, there were 2.603.000 persons on Federal, state and local payrolls, each getting a niggardly wage. In December, 1962, there were 9.623,000, most at comfortable salary levels. This was an increase of 345,000 persons In the year, a rise of 3.5 per cent.

At the end of 1962, the total labor force was 74,100,000; therefore 12.9 per cent of the total force was working for governmental agencies. Total employment was 67,600.000; therefore of those employed 14.2 per cent were working-for a governmental body.

1 OF 14 ON GOVERMENTAL PAYROLL

These amazing figures shows that of the working populaUon. 1 out of every 14 works for some governmental agency.

The number and percentage of Americans <m governmental payrolls are crtaln to increase.

The Federal budget now stands at the highest mark hi history. This makes It certain that Federal hiring will increase.

In 42 states in which legislatures are now In session, many are c(Misidering plans to Increase taxes. Each plan has this in common: it will mean hiring more persona to collect the new levies; the new levies will provide salaries for new employees.

SELL THEM

This rise in the percentage of Americans on tax - supported payrolls wUl require itoost every businessman, even backroom bookies, to constantly adjust their (^rations to changing clienteles.

Planning should take in these facts aboHit government employees:

1. Their Incomes arc steady. They are less subject to layoffs Emd strikes than other customers.

2. For the most part, their salaries are modest compared with other employed persons. Few afford Bentleys or $60,000 homes. But rates are steadily gaining on civilian salaries.

3. Their credit is usually good. Since salaries are small but steady, government families are trained to budget their income. Furthermore, many governmental agencies discipline employees who let bills idanger their solvency.

SELL THEM FUN

4. Their leisure time is large. Federal employees ordinarily have up to six weeks vacation time each year, plus up to three weeks sick leave. They are^good prospects for autos, boats, trailers. cabins and cabanas, sporting equipment, vacation gear and so on.

5. Their status symbols differ from those of clvlUan employees. Find out what they are and promote them. Never try to sell

to a civil service em-ose boss drives a

aCadlUi ployee Bulck.

6. Paydays differ from those of civilian employees. Learn the dates and promote when wallets are fullest.

7. Keep in mind that their salaries are likely to keep on rising both through promotion and higher scales. Keep trading up.

8. Cater to the aging, for government pensions are usually fatter than civilian or Social Security benefits,

9. Remember ttere are many discount houses catering to government employees. Merchants must meet uelr prices, oven if it means giving q[)ecial discount cards to government employees.

10. Government employees are clannish. Word of an offense to one spreads rapidly; so' does word of good treahnent by a merchant. Generate favorabla word-of-mouth promotion.

If n(me of these suggestions work, shut the shop and get a job with Federal, stats or local govemmenta.

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