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Monday, March 18^^ 1963

Money Problems Loom Larger

Money problems, which a month ago appear- nium is generally regarded as adequate to meet

Its Hard To Enjoy Dinner -WITH WAITING TGET VOUR CHAIR

hlow iO

ed to be relatively minor for the 1963 General Assembly, are looming ever larger as the legislature wades through preliminary work toward the day when final decisions will have to be made*

In spite of the comfortable cushion of surplus funds with which the state is expected to begin its

the needs of the state and provide significant progress in many areas of activities. The problem facing the legislature, therefore, focuses on deciding which requests will be approved and which will be rejected. Unlike other years, the question of increasing taxes to meet increased demands has, for

new biennium July 1, requests for expenditures practical purposes, been ruled ojit. have mounted considerably above what was ini- Call them money problems, or budget prob-tially considered rather liberal budget recommen- lems, the legislature still faces a considerable task " in ironing out the details which will make up the

dations.

Agencies and institutions of the state have presented to the legislature requests for expenditures of many millions above what was initially reommended. There has been the proposal for $200 million in bonds to be issued for new highway construction. More recently there has been a bill presented that would earmark $25 million of the states surplus at the end of the year to be used for public school construction in the 100 counties of the state. And among numerous other things there has been mounting pressure for giving state employes a salary increase considerably beyond that which was recommended by the Advisory Budget Commission.

It is obvious, of course, that the legislature will not be able to meet all the demands for funds that have been made and will be made before the session ends. In spite of the sound fiscal condition of the state and the bright prospects for increased revenues in the coming biennium, there will not be sufficient funds to meet all the requests.

The proposed budget level for the coming bien-

ODDOsition

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1

ADpiisning

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FS-1

By WILLIAM A. SHIRES

OPPOSE Oppositicwn Is forming to a propel to abolish the PS-1 proof requirement under the atate's motor vehicles financial responsibility act.

It would cut the heart out of compulsory liability insurance," says Rep. Sam Whitehurst of Craven County, chairman of the House Insurance Committee in 1961.

Doing away with FS-1 is the best way I know to cause such an uproar that two years from now wed have to scrap the whole thing," Whitehurst said. He predicts the uproar would result from the severe penalties, Including fines and revocation of drivers licenses, which would be attached to an hraor system plan for certifying financial responsibility through liability insurance.

Whitehurst believes innocent victims would have to suffer because of honest, unintentional mistakes." And he adds, the public wcmt stand for it. The outcry would be so great that wed have to repeal the whole financial responsibility act."

PROPOSAL Abolishing the PS-1 requirements and relieving Insurance companies of the necessity to notify the department of motor vehicles of liability law changes drafted by State Insurance Commissioner Edwin S. Lanier.

Motor Vehicles Commissltm-er Ed Scheldt also supports Laniers proposal and believes proper and adequate safeguards can be substituted for the FS-1.

Scheldt objects to the PS-1 system because of the heavy administration load and paperwork which falls on his department and on the State Highway Patrol. He estimates that the woric Involved in checking out liability Insurance terminations and picking up license plates of uninsured motorists is equal to the manhours of 40 full-time state troopers.

Laniers department suggests the so-called honor system" as an alternative to the red tape, delays and Inconveniences placed on thousands of drivers by the PS-1 requirement.

The Insurance commissioner, however, wants a careful study by the General Assembly.

We want to do something," he says. But we want It to be

workable and practical and of benefit to the public. We dont want a fiasco.

PEATURES-Whitehurst told a reporter he is in general agreement with other parts of Laniers proposed insurance package.

I would favor all of it, almost point by point, down to doing away with the PS-1, he said. Id have to draw the line there,"

Whitehurst, earlier in this session, Introduced a bill which would reinforce the State Highway Patrol strength by 100 troopers Instead of the 25 additional troopers recommended by Gov. Terry Sanford and the Advisory Budget Commission.

COURT REFORhlS There are strong indicatims that (Hie of the first, prototype district c(Hirt systems proposed by th^ Bar Association will be in Meek- * lenburg County.

A source close to the Bar Association said Mecklenburg is expected to be one of the first districts set up. It is in good shape to go. Another may be Gaston County.

Setting up of a few district court systems to replace the present system of inferior courts on a uniform basis has been projected as a logical first step toward implementing court reforms.

Dr. Dickson Phillips of the University of North Carolina School of Law told legislators that it is of critical importance to choose good first districts.

The amendment to the State Constitution approved last November provides, among other things, for a uniform system of inferior courts to be established statewide by 1971.

COMMISSIONThe General Assembly is expected to give quick approval to establishing of a 16-member commission which would guide the implementing of court reforms on a continuing basis. The Governor w'ould appoint 15 members, and the Secretary would be the Administrative Director of the State Judicial System. This is a proposed new office to be created as a research staff for the legislative commission (mi <3ourt reform.

The Director would be appointed by the Chief Justice of the Supreme Court and paid a salary of $13,000 a year.

states budget for the coming biennium.

Name Controversy Wagging The Dog

Sen. Ralph Scott has offered sound advice to the Senate Committee on Higher Education and to the legislature as a whole in asserting that wran gling over the new name for State College be ended and attention given the more important aspects of the bill revamping the states university system.

The controversy over the name by which State will be officially designated has become the tail which is wagging the dog. While the name is of importance, in the long run the official designation of the Raleigh branch of the Greater University is not nearly as important as other aspects of the legislative package now being considered.

North Carolina needs to make the revisions in its university system which are provided for in the legislative package. It needs to strengthen the university system by creating full branches at Raleigh and Greensboro now, with others possibly to follow in the future. Eachof the branches, at Chapel Hill, Raleigh and Greensboro, have much By JOHN CHAMBERLAIN to gain from the proposals incorporated in the legislative package.

By giving unanimous approvalat least tentativelyto the new name for State which is a part of the package proposal, the Senate Committee on Higher Education has indicated it intends to get on with the more important considerations to strengthen the state's university system.

The Reflector commends them for their action, and we trust other committees of the legislature

The Intramural Contest

Copyright, 1963, King Features Syndicate, Inc.

Just when conservatives seem to be making headway in their war against modem collectivls-tic liberalism, they go and _ ______ get themselves Involved in a sil-

that have become entangled in the name-making nH

controversy will follovv the lead of the Senate Com- conservatives who champion

mittee and get on with the more important con- oid-fashl<Hied individualism. On

the other there are the ccHiser-vatlves who think individualism is disaatrcHyus, and th^ conservative must think primarily In terms of the community.

The fight, at present, is being conducted (mi a highly theoretical level. In the colleges and in the more academic c(xiservative publications. But academic

siderations.

Jnemployment Data -Concerns

fights and fighters usually end up by erupting into the arena of practical politics. Thus Frank Meyer, who speaks for the individualistic conservatives in a fine book .oalled In Defense of Freedom: A Conservative Credo, and who does considerable lecturing before student groups around the country, has now emerged as one of the top policy makers for the new New York State Conservative Party.

Mr. Meyer believes that conservatives who exalt duty to the community above duty to cmes own individual sense of right and wrong usually end up as State worshippers. They confuse society, which is wider than government, with the set of politicians who happen, because of

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By RALPH ROBEY

There probably is no government statistic watched more carefully than that on unemployment. It is regarded as a measure of how the naticHi is progressing, as well as of how many persons are not properly sharing in the growth.

In February the data always refer to the middle of a month the volume of unemployment, seasonally adjusted, was 6.1 percent of the civilian labor force. This compares with 5.8 percent in January, and it was the highest since November, 1961.

And such details as we have give no comfort. For example, those male jobholders 20 years old and above who were at work which includes most of our family heads declined still further. The rae of unemployment in this group was 5.1 percent as compared with 4.8 percent a month earlier. This accounted fpr about one - half of the total increase.

The Bureau of Labor Statistics, which analyzes the unemployment data, refuses to be dogmatic on what caused the spurt. There was a drop In construction jobs, and a contra-sea-sonal decline In employment on farms. These obviously could have been caused by unusually bad weather. But there also was a reduction in the total number of workers in durable goods manufacturing, and that cannot be blamed on bad weather.

There also was a sharp Increase in unemployment among the teenage group. This category varies widely from month-to-month so widely that no really satisfactory seasonal adjustment can be developed for It.

Those out of work 13 weeks and longer the so-called long term unemployment rose by 150,000. The total was still well below that of 12 months earlier, and much of this drop was among those who had been out of work 27 weeks or more.

We have no measurement of the mental anguish caused by continued unemployment because there is no manner in which this may be .statistically Judged. Many of those out of work are collecting unemployment compensation, and that at lea.st prevents starvation; and

Strength For Today

It should also provide some kind of shelter. It Is'-doubtful, however, if many of the teenagers have had a job long enough to qualify for unemployment compensation; but most of these may still be living with their families, and that should be some help. There Is a fairly substantial group, of course, which has been out of work for so long that unemployment compensation has been exhausted.

Too much must not be read Into the figures for one month. But it is highly disturbing to have the volume of unemployment behave In this manner.

Opinions

Other Editors' Saying... On Being Acceptable

in

3rief

Perhaps our most republican form of government we have in this country is county government. It is the government that is closest to the people where, if they only knew and took intere.st. they have the most control. Waterville (Wise.) Empire Press.

It has been said that the power of words is one of the worlds most potent powers, and judging what It costs to put words on paper for the public to read, the statement doesn't surprise us,"'Tucker Ga.) DeKalb 'Tribune.

One hundred years ago, George S, Boutwell first Commissioner of Internal Revenuehad a staff of only one clerk, and personally read all letters from taxpayers." Bridgehamption, (N.Y.) News.

Ground has been broken for the nation's first 343,000 volt underground transmission line. It is being built by the Consolidated Edison Company in New York, not by the Rus-.sians who have been overly touted by U.S. sources for their electrical progress. Industrial News Review.

(Richmond News Leader)

If the controversy over the TFX fighter craft were the only disquieting incident involving Federal government contracts, the story would be getting no special attention. Senator McClellans investigating sub-com-mlttee probably would be looking into something else instead.

The troubling fact is that the TFX contract does not stand alone. Scarcely a week passes that some rumor, or tip, or public complaint does not come along. They boil down to this, that Federal contracts are not being awarded on considei-ations of price of quality alone; they are being awarded in part for political reasons. A new phrase has crept into the business community. A bidder on a federal job must be more than merely cai>able of doing the work; he must, it is said, be politically acceptable too.

In the case of the TFX fight-qr, four separate military evaluation boards recommended a proposal put forward by the Boeing company of Wellington. Civilian administrators gave the contract. Instead, to General Dynamics of Texas, even though Boeings bid was $600 million lower on a $6.5 billion contract. The Defense Departments blustery public relatitms men are so woefully inept that Secretary McNamaras defense may be better than It has appeared so far. Evidently, It was a close point.

But such close points appear to arise with uneasy frequency. For one recent example right here at home, consider the cy-clotnm contract at Langley Field, awarded last month by the National Aeronautics and Space Administration. Nine original bidders on this seven million dollar lnstallati(Mi were reduced in time to three bidders. Of these three, the AllKs-Chalm-ers company appeared to most observers to be manifestly the best qualified: it had- the in-

house resources, it had built working cyclotrons before, it had a blue - ribbon team ready to put on Langley's job. But the contract didnt go to Allis-Chal-mers. It went to a Pennsylvania company with no experience in this field at all. Around the fingers of the deal, quiet as a cloud, went the word that Wisconsins Senator Proxmire had been getting a little too rambunctious lately; he needed a small lesson in docile behavior. Allis-Chalmers has its principal plant in Milwaukee.

A great many other such stories provide the raw grist of gossip at industrial conventions. Those who doubt the authenticity of these disturbing tales are derided as naive. When a political explanation can be found for a contract award, the cynical practice grows of accepting the explanation as true.

Well, we may be naive, but a good many years in the newspaper business have left us skeptical of most of the hoarse cries we hear of political corruption. In our observatl(Mi. most government officials charged with^ contract awards are honest man trying to exercise their best judgment in spending the taxpayers dollar. And eight times out of ten, these howls of political shenanigans are no more than the banshee yells of bidders who hoped to get a contract and lost it.

What does concern us and it ought to concern the Kennedy administration keenly is the degree to which this theory of political acceptability is gaining credence around the country. And it is not merely in the field of industrial awards that these fogs of politics creep in. Federal judges, ambassadors, under - secretaries of commerce, seem increasingly to be chosen for political reasons, A lot of this may be partisan .smoke, not actual fire. Whatever it is, the Washington scene gets smokier all the time.

a majority vote that may be transient, to be in power. They forget Polonluss words: To thbie own self be true.

Personally, I think conservatives would do well to listen to Mr. Meyer and drop their battles over individuallsm-ve*'* sus-the-community. The conservative movement still needs to close its ranks. I say this not because I am insensitive to community needs. Community spirit is obviously a fine thmg. But it so happens that concem for the community is a commodity which, in Ameriija, is always in plentiful supply. The worry about what might be called com-munltarianism Is misplaced.

For every (Hie person who is concerned with individualism, there must be a thousand people who are out beating the bushes for some community project. Graduates of private schools and colleges are busy as blrddogs collecting for endowment funds. Klwanls club locals hold peanut sales to raise money for scholarships and for day camps for crippled children. Bereaved parents who have lost a son heads up drives for youth community centers. Garden club women, having read Rachel Carson's dire warnings that the indiscriminate use of insecticides may be poisoning the earth, pressure the community to do something about the situation, Other people who are equally concerned with our environment crusade for the continued use of Insecticides lest devouring-beetles and malarial mosquitoes should Inherit the globe.

Then there are the charitable and public - spirited foundations* so many of them thJd it takes a book to list those found in New York City alone. They pour money into medical research, into social service work, into new experiments in educa-tl(Hi. They subsidize colcxiies for artists; they underwrite performing dance companies; they offer scholarships to aspiring students.

Every church, every private club, has its c(Mtnmunlty programs. Every labor union provides scane community service. There are the Boy Scouts and the Girl Scouts and the selfless adults who give themselves unstlntlngly to Scout work. The den mother" Is a community institution. And every spring the fathers are conscrto^ ted to coach Little League baseball teams. There are, too, the volunteer firemen.

All of this seems to be lost on those conservatives who are busy assailing their individualistic brethren for supposedly spreading the idea that conservatism and selfishness are synonymous. 'The truth is that the communitarians am(Hig us are so legion that nobody needs to worry about multiplying their number. As for the incorrigible individualists among the conservatives, you wurhnd very few of them who are anarchic monsters of personal greed and aggrandizement.

liects

By ROGER BABSON * BABSON PARK, Mass.,Several factors can help to Insu-. late a company against the effects of inflation: (1) GROWTH. A company experiencing rapid growth will find that its rate of business increase can lift profits at a faster pace than the rU in costs. (2) VITAL INDUSTRY. This Includes companies in Industries which are vital to the economy or to (xrnsumers and which can pass on KUeased costs by raiaing prices. (3) DI-'VERSIFICATION and INTEGRATION. Companies wh(x.e profits are squeezed by inflating coste owa their pos

ition thrtmgh diviralficatton and integration (4) VALUABLE ASSETS. Some companlcB are in the enviable position of possessing assets which are vital to their principal business and ai-so potentially valuable to other respects.

BUILDING MATERIALS Companies to the building materials field also possess in-flati(m hedge characteristics. Their timber and minerals properties should gradually become more valuable. Population growth and migraticm are favorable to the building industrys future.

U.S. GYPSUM Is the largest company in its field; It supplies half the domestic requirements of gypsum wallboard and plaster, and also 20 per cent of the bullglng industrys metal lath needs. The company also produces roofing material, siding, insulating material, and paints. Its properties include strategically located quarries and acreage.

MASONITE CORPORATION is the largest domestic producer of hardwood. It has large ^ timber holdings in Mississippi and California. Company also derives oil revenues from its properties,

DIAMOND NATIONAL CORPORATION produces paperboard, folding cartons, omtain-ers, matches, and wooden ware. It also sells lumber and building materials. C(wnpany dwiis 500;000 acres fimbcr-4. land,

COAL INDUSTRY

This industry has been subjected to a long shakedown. Elimination of marginal producers and the shift to mechanical mining has enstoled the surviving companies to merge in a stixmger position to benefit from the growth to coel consumption by steel and electric power plants. Also, research being conducted could lead to discovery of new uses for coal.^ln addition, many companies are diversifying Into other fields" CONSOLIDATTON COAL is the larbest domestic producer of bituminous coal, and has substantial coal reserves. The company Is a joint owner with Freeport SulphurIn a potash mining venture.

EASTERN GAS AND FUEL ASSOCIATES is a large bituminous coal producer, rapl(ny becoming a gas utility. Its wholly owned Boston Consolidated Gas is a consistently important contributor to profits. CoQU>any juf^t recently exchanged Its holdings in Norfolk and Western railway (dividends from which had provided about half of Eastern s earnings to late years) for it.s own shares, and also called some of Its bonds. This reduced Easterns number of outstanding c(nmon shares and simplified its capitalization. Insofar as future income Is concerned, the companys coal, river barge, and other operations will from now on becioine far more significant than In the past.

COLUMBIA GAS SYSTEM is one of the largest gas utility systems in the cexmtry, serving the Eastern, Central, and Mid-Atlantic regions. R owns over 400,000 acres of land to the Atlantic - Appalachian region which contain large coal. oil. and gas reserves.

CHEMICAL OHMPANIES I beUeve AMERICAN AGRI-CULTUI^ CHEMICAL is one of the ^dest and largest producers and distributors of fertilizers. It also manufactures pbosphpric and sulphuric acids, phosphates, and fluorides. The company owns 60,000 acres of land In Florida, underlaid by beds of phosphate rock sufficient to sustain productlcHi for 60 years.

INTERNATIONAL MINERr ALS AND CHEMICAL Is an Important producer of mixed fertilizer, and a major producer of phosphate ro(^. It also pro-(Continued from page 10)

ook-Aheads In Business Worlc.

By EARL L. DOUGLASS IT PAYS

It has been said that nothing costs so much as love or pays so well.

Ponder for a moment the cost of love. It costs to raise a family not only dollars but denial, sacrifice, the setting aside of adult ambition that youthful ambition may be achieved. Marriage is a costly affair. Two people cannot live tMether without accepting glaoly, the curtailment and frequently the surrender of many personal desires. Men love their country so much that they shoulder anns and march away to war. and fre<wently they pay the ultimate price and are buried in F foreign Jaud.

Yet i.s it out of this welter of sacrifice, denial, and frequently suffering that the best things

of life arise. Difficult as it is to raise a family and have them all come out on the side of decency and purpose, the raising of a family is about the best investment human beings can ever make. Marriage rai.ses more problems than it settles, but certainly ninety-nine per cent of all married people would elect to go back and follow the same pathways again If they had a second choice. Few men who have g(Hie Into battle and returned have been bitter over the price they had to pay to keep human life free and whole.some.

Love costs plenty, but there Is nothing so absolutely sure of paying dividends, good dividends. continuous dividends, as the living of a life of love. It pays handsomely, and if y o u don't know this you ought to learn it by experience.

By ELMER, ROESSNER

Here are more look-aheads In business, derived from analyses of developing trends and a few advance tips:

A sharp rise in retail sales is ci>niLng. Totals have been running 5 per cent above a year ago and, with an earlier Easter immediately ahead, will rise further. Another factor appears to be public confidence. While the public may not have confidence in a tax cut, neither has it accepted the Idea that there is danger of a recession later this year.

Cheaper tea. World tea su*' plies^ appear abundant, enough, so to force down prices later this year. The entrance of Brazil. Peru, Argentina and Indonesia into the tea export ..market has swelled supplied.

MORE AUTO SALES No alack in car demand. Public confidence, notetl two par-P ,

agraphs preceding, is also promising increases In . auto sales. Manufacturers are adding second shifts to some plants In confidence that demand will continue higher.

Flmier building materials prices. Co.st of builder.s supplies usually )isc a bit when spring demand begins. This year it looks as if they will rise a little bit more than usual, but less than in some boom years in the past. There are-almost no serious shortages.

Pulp going up. While newspaper strikes in New York and Cleveland have created enormous oversupplies of newsprint, there has been no let-up in demand for kraft pulp and prices may rise. Later there will be price increa.ses to cover higher labor costs.

Sugar higher. Available sugar i.s being bid up (wr* the world market, hence domestic prices will rise again,

HIGHER STEEL SHUMENTS

Steel demand rising. Orders on hand call for stepped-up production of steel this month and in April, May and June. Some demand is caused by stockpiling because of fears of a steel strike; some, is due to the .strong market for cars, and a good portion i.s due to the general pick-up In durables.

Fondue kick (0>ming: House-ware manufacturers, having sold outdoor beef cookery and Hawaiian luaus to the American public, believe they can put over a fondue fad this summer. Fondue Is a bowl of melted cheese meUowed with white wine into which guests dip chunks of bread. Special fondue pots will be promoted heavily this spring.

Higher guarantees: Savings and loan associations are asking Congress to increase the government insurance ir(xn $10,000 to $25,000 a deposit. R may stimulate a flow of money into these associaticHis, which

pay higher interest rates than banks. The fact that they loan a major portl(Hi of deposits on mortgages may stimulate home building.

OI.D PROMOTER PROPOSES TAX CUT INSURANCE Its too bad we havent got a Lloyds of IxmdcHi over here. the Old Promoter sugg^ed during his heartrwarmtog. cotton-picking, dollar-cadgtog visit today.

I wanted to know why.

"Then businessmen could Insure themselves against failure >of the tax cut, he explained. A corporaUon may expect $1 million in a cut. and could Insure Itself for half that for. say $250,600. Then If It got' uii^ tax cut, it would be <r750,000 ahead. If the cut was voted dowir, it would still get $250,000 after the premium.

Theres something wrong with the idea, but I havent figured it out