f-......

ay, July 26, 1963

vy :,iit,

The Dropouts

hcuiges Emerge In Racial Problem

Major changes have taken place in recent months in the racial problem of the country.

One; It has become amply evident that the racial problem is not confined to one geographic section of the country. It is a problem which confronts states and communities in all parts of the country just as it does those of the South.

These factors, we think, are increasingly evident in the every-day life of the United States. They are evident to the vast majority of both wnite and Negro citizens. They are evident to many officials in high places as well as average citizens.

Two: Civil disorders and demonstrations which give birth to themhave reached the point now where they are both unnecessary and unjustifiable. Demonstrations have reached the point of rapidly diminishing returns for the causes which Initially they were Intended to help. This is true in all parts of the country.

Third: Improved race relations are not fostered by demonstrations whichset the stage for possible sMe. Better race relations cannot be forced, cannot be successfully legislated. They must evolve through education.

Barriers of racial discrimination have been lowered one by one in many areas of the country and in many segments of community life. Important steps have been taken to overcome racial discrimination, pave the way for greater opportunities for all citizens. But the most significant of these steps have not been born out of strife, chaos or legislation. They have come out of better understanding and efforts on the part of citizens of good will to assess and resolve mutual problems.

iObbyists Are !-iling Reports

Now before Congress are sweeping proposals presented in the name of civil rights legislation. But these proposals, by and large, pose ultimately a greater threat to the rights of individual citizens of the nation than they hold promise'for alleviating the plight of some citizens whose rights are denied.

By WnXlAM A. SHIRES

LOBBXNO-Lobblnff for spe-dal leglslattve InterMU Involv* M thousands and Urausands of dollars during every session of the General Assembly. There's BO way of telling exactly how much.

A state law requires repcuts of lobbying fees, salaries and expenses in the form of sworn statements filed with the 8eo> retary of State wlthtn 30 days after final adjournment.

These reports are coming In. Eighty two had been filed early this week and most of the rest are expected by the deadline next Mcmday. Usually, how-ver, letters must be sent to remind and round up a few stragglers.

The law requires "a complete and detailed statemen*' d expenditures in connection with *'promoting or amotxm In any manner the paasige of legislation. TlMere is a way of getting around being too specific or making a detailed report at all.

HIDDEN A great deal of the actual cost of lobbying Is hidden by inclusion in annual retainers, regular salaries and expense accounts of full time employes and representeUves

llwre is no breakdown on this and fully half of the 125 firms, troups and assoclatton having registered lobbyists during the 19^ sesskm reported no addl* ttoial expense Incurred in their legislaUve activities.

More and man "regulars in the Raleigh loMying fraternity apiHLrently are being retained en this basis.

REGULARS - Many of the regulars are veteran lobbyists, Among those already filing reports:

R. D. Coleman, on regular full time retainer by Champion Papers Inc.; OUa M. Banka, full time employe of the N. C. State Highway and Prison Employes Asm; Pred Dodge, full time employe of the N. C. Association of Launderers and Cleaners; J. C. B. Ehringhaus, general counsel with annual retainer. and J. Wilbert Forbes, executive director-tressurer on annual salary and expense account. representing the N. C. RaOroad Asm; Armistead J. Naupin, general counsel with annual retainer fcH* U N. C. Automobile Dealers Asm. and the Oiddoor AdverOshig Asm. of N. C.

There are other, most of them attorneys or legal finns, receiving annual retainers from one or more clients. In addition, aome of these pick up extra fees end retainers for specific legislative woric.

ITEMS RaJelgh attorney Howard E. Idannlng, with several legislative clients, listed 990 expenses on a report for the N. C. Savings and Loan League for "general entertainment of legislators. He had no cxpmses for the N. C. Granite Crop, or the N. C. Association ef Plumbing and Heating Contractors.

The Raleigh firm of Poyner,

Oeraghty, Hartsfield and Townsend was listed on annual retainer with no additional expense for The Business Development Corp. of N. ., but collected 91.033J6 from the Housing Industry Advisory Council of N. C. for services rendered in preimratlon end passage of Condominium Housing bill. Relatively few ot the reports cite specific legislation. One that did was American Package Corp. 0 Murfeesboro which paid fees of $1,202.62 and $500 to Buxton Midyette and $522.04 to J. Craig Revelle and expenses totaling $202.62 to MldyeUe in connection with House Bill 525.

The key to the racial problem is not to be found in the new laws now enfiTossed in proposals before Congress. It is to be found more realistically in better understanding which will overcome many more of the complex problems than legislation, threats of force or violence can ever overcome.

Visitors Are Leaving

Big Chunks Of Cash

During these summer months which represent the peak of the tourist season in North Carolina, there are literally thousands of out-of-state visitors enjoying the variety vacationland offered in Tar Heelia. What's more, these visitors are leaving liberal chunks of their hard-earned dollars behind for the privilege of enjoying the vacation opportunities North Carolina offers.

Where

.ogic ADDes

By PATRICIA MOORE

AUGMENT Some Mganl-xatlon with "regular lobbyists on their payn^ felt it expedient to augment the staff for the 1963 session.

The North Carolina Motor Carriers Asm. Inc., which represents the trucking industry md which maintained a hmpl-tality ttxm and spread weekly buffet dinners for legislators, had its veteran executive vice president. J. T. Outlaw, and and Raleigh attorney Hathaway Cross as registered lobbyists. Neither reported any "additional expense.

But the NCMA paid the Raleigh firm of Bailey, Dixon and Wooten a total of $3,798.99 along with $28.99 in telephone expenses for "representation in legislative matters relating to public utilities laws and bills affecting motor carriers of property.

The N. C. Merchants Assn. listed Its luU time executive secretary, T. Thompson Greenwood. as a regl^red lobbyist with no additional expense, and paid a $1.000 fee and $132.00 in expenses to lobbyist William Z. Wood of Winston Salem.

Tbe N. C. Merchante Association also listed $31.89 for meals and $49.02 in long distance telephone expense for Raleigh attorney Wmis Smith Jr. The Raleigh Merchants Bureau was represented by two "unpaid lobbyists. G. Wesley Williams and A1 J. Ballard, both on annual salaries.

RETAINERS- Separate "annual retainer and no additional expense reports were filed by J. Melville Broughton Jr. and Robert B. Broughton of the Raleigh firm ctf Broughtmi and Broughton lobbying for the N. C. Restaurant Asm. The same firm had a similar report for its client. Minute Martcets. Inc.

The N. C. Sheriffs Association and the N. C. Ateoclatim of Clerks of Superior Court listed Basil L. Sherrill m an annual retainer with no extra expenses.

Carolina Securities Corp. reported its general counsel, A. L. Purrtngton Jr. had no addl-U(Hial expense.

In adcUtlon to his retainer from the Motor Carriers. Cross reported annual retainers and no extra expense incurred for lobbying for the N. C. Lidustrlal Council. Rose's Stores Inc. and Uie NaUonal A8sociatl(xi of Independent insurers.

In a state where tourism represents the third largest industry, it is extremely important that these visitors are satisfied customers" of North Carolinas Variety Vacationland. Those who are probably will return to enjoy a Tar Heel vacation another year. They will tell their friends of the good time they had in North Carolina, and perhaps induce others to vacation here.

i ravei is hniigntening

But there are many things which can spoil a vacation. An unpleasant experience with a speed trap in one community can give the entire state a bad name in the opinion of the victim. Less thn adequate servuce at resort centers, poor food in restaurants along the way can mar for the visitor what otherwise might have been a most pleasant memory of a few days or a couple of weeks in North Carolina.

A prospective coed of East Carolina CoUege was being given the guided tour of the campus.

And that is the new. big, seven - story skyscraper dormitory for women, the tour conductor said.

The coed was properly Impressed. "Gosh. I sure hope they have elevators in that thing.

all her luggage, money and clothing as well as picking up a few things from the house such as the hi-fi, television, etc.

However, the power of South America Is strong. Apparently the visitor Is now' over the introduction, for Tim says she is having a grand time with South American hospitality.

Fortunately for North Carolina, speed traps have pretty well vanished from the state. Service rn moat resort areas is good, and by and large tourists can find good meals. But North Carolina, and its tourist industry, still needs to give more attention to the little things which may make the difference between a satisfied and dissatisfied customer.

Another young woman was being Introduced to life in South America Colombia, to be exact. But her introduction was more dramatic.

Tim Jones of our composing room was relating how his younger sister was an exchange visitor in Colombia this summer. She had gone with her "adopted family to a beach.

While the whole clan >5{as enjoying the surf, somebodj^ visited the house by taking the door off the hinges and then went in and relieved the young lady of

Speaking of the Americas, Roy Martin and his wife. Betty Faye, just breezed through the building from Panama, where Roy is stationed in the service of his country.

We were asking about the living accommodations south of the border.

It seems Roy had written his wife, prior to her arrival, that there were laundry facilities in the apartment building they were to occupy. She arrived and found three large sinks in the basement of the building.

It seems some of the people

who live In Panama City are very industrious.

The Martins related one story about burglars who slipped chloroform through the air cwidl-tlonlng unit of an apartment and thus put the occupants a whole family to sleep. This provided the burglars with plenty of time and a quiet atmosphere in which to execute their assignment.

Strength

?or Today

For the state as well as for individual businesses. satisfied customers still provide the best means of increasing North Carolina's tourist industry.

Other Editors Saying...

Kennedys Plan

Keyed To ICC

Compulsory Gouging

The Daily Reflector

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Published Every Afternoon Except Sunday EgUblished 1882 DAVID JULUN WHICHARD, Publisher

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7

Ry JAMES MARLOW

WASHINGTON (AP) President Kennedy's plan for solving the railroad dispute or at lea.st postpcmlng a showdown until after the 1964 elecwi should fry several kinds of fish, none of them to his disadvantage.

1. It should eliminate the dispute as an issue in the election campaign.

2. It should avoid getting labor in general mad at him.

3. It should take the railroad union leaders off the hook.

4. It should help the railroads begin saving money.

All this is conditioned on one thhig: that the 11-man Interstate Commerce Commission act Instead of stall.

Kennedy has aked Congress to empower the ICC, for a two-year period, to hand down decisions in this railroad-unlon argument which already has dragged on for four years.

He also wants the IC!C to have authority to get a federal court Injunction to stop a railroad strike if the unions don't like its decisions. This should save the country frwn a withering shutdown until at least 1965.

Thus the railroad case wouldnt be an issue in the 1964 election. After that a reelected Keimedy or his successor w'ould have until 1965 to face the problem again, if there is still one by then.

The plan as Kennedy devised It may cost him the votes of swne railroad workers next year, if they lose their Jobs through ICC decisions, but or-ganifsed labor as a w h o 1 b wouldnt have much reason to be sore at him.

It might have been very sore if. Instead of thLs plan, he had asked Congress to force a settlement by compelling railroads and unions to submit to compulsory arbitration, a device unions and management both detest.

That would be naked use of government power. Kennedy in his mesage to Congress Monday also expressed distaste for settling disputes through compulsory arbitration.

But the very plan he worked out. and the way he worked It out, is In effect compulsory arbitration although he didn't dress It with tjiat name. He made it sound much milder.

This is why:

Since the ICC can hand down decislns. and can get a court injuiwkr to prevent a strpce if the unions resent the decis-kms, the result ts that the unions wiU have to accept the RXs fhidlngs. Thats compulsory abitration.

True, the decisions are supposed to last only for the two-year life of the ICC's authority. After that, supposedly, the decisions will have no effect and railroads and unions will be free to settle their differences themselves.

But if then a strike threatened again, the President would again step in by asking that the Ices authority be Invoked for another two years or hed try some other method. But he wouldnt let a strike happen.

The ICCs almost total problem will be the manpower one.

The railroads want to cut expenses and presidential commissions and the Supreme Court have said they have a right to by wiping out jobs which, they argue, have been rendered unnecessaiy by modernization.

The railroads want to eliminate thousands of jobs, mostly tliose of firemen who used to be needed to shovel coal in steam locomotives but now ride in diesel engines.

Under Kennedys proposal men whose jobs are ordered elimli.Wed by the HXJ are to be transferred to other ones or. if they are laid off, are to get severance pay, like 60 per cent of their regular salary for three years, or other benefits.

Suppose that, for the two years before the KXs authority ends, theyve been laid off or removed to other jobs. When the ICC then no longer can give orders wlU the union leaders start another national crisis to get their jobs back

They might try, but its doubtful they would. Their cause would have lost much of its steam not only in the public mind but probably in the view of the other unlcaiists who still had jobs. The excuse for a strike would be diminished.

Up to now union leaders in the face of approval of job ellminatlcm by a presidential commlssicm and the Supreme Court have refused to yield. This is understandable.

The leaders, elected by their union members, are paid to fight for them and their own jobs depend on their membei-s, support. They can say they did all they could if now\ under congressional approval, the Icc starts wiping out jobs.

They can truthfully say theres an end to how much fighting they do against the government. Thus the eKnnedy plan is In a sense protection for the uni(Hi leaders even though Its purpose Is to eliminate Jobs.

From several standpoints, (Continued On Page 5)

(Henderson Dispatch)

There is nothing unusual about decisions of the Interstate Commerce Commission in refusing application of freight carriers to raise their rates. But the custom is reveraed in a ruling by that body recently in forbidding the Southern Railway and other railroads to reduce charges to shippers. Who said there was nothing new under the sun?

Even so. the ICC decision was not unanimous. Some of its members saw eye to eye with the railroad and favored the reduction. But the majority decree was that rates on grain must be Increased by around sixteen percent. Shippers are the people who must bear the brunt of this new regulation.

President Brosnan of the Southern said ICC had decided that the public must be charged "more than we need to charge them at $1.16 for a Job we are now doing for a dollar. This, he added, "may serve the interests of the truck lines and the barges, but is definitely a decision against the people of our country who must pay these unnecessarily high charges and who are least able to pay.

Usually there have been those who shout from the housetops against increases allowed to carriers, and who like to accuse the corporations of robbing their customers. But we have not heard their voices raised in behalf of shippers or of the railroad In this decision, which strikes at both alike.

One hears often of the benefits of competition In Industry, but here is an instance where competitive rates were denied

the railroad. The higher rates will, of course, drive at least some of the business away frofn the rail carriers, Cpmpetltlon usually means that the seller who can offer the buyer the best price makes the sale, but in this case the seller is denied the right to serve the buyer to his best advantage.

Railroads have been regulated to the hilt, often it seem without necesity and certainly to their disadvantage. But ICC rarely strikes the same blow at both the shipper and the carrier. In the current strike crisis threat. Federal officials readily admit that a stoppage of normal operations would be tragic for the national economy. Emphasis is placed, where of course it properly belongs, up on the vital need of railroad services, but ICC, In the order for a sixgeen percent rate increase on grain shipped from the Midwest into the South, is reducing, or perhaps raising, the rail carriers to the level of their competitors, which means a loss of business to them and a corresponding weakening of their financial structure.

The Commerce Commission does Indeed move in strange ways with its regulatory practices. of which this is an outstanding example. If the railroads an move grain shipments more cheaply, they should certainly be allowed to do so. In other fields, those who are unable to meet competition have to abide the con.sequences. In this case one Industry is not even allowed to compete. It appears to be a glaring injustice toward the common carriers.

By EARL L. DOUGLASS DEMOCRACY AND RELIGION

Democracy is a wonderful Ideal. We rejoice and thank God that we live under democratic Institutions. We rejoices today in the liberty which has become ours largely through the sacrifice and persistance of our noble forebearers.

But democracy Is not something to be worshipped. There appears to be the tendency today among many Christians to Identify Christianity and democracy. This Is a mistake. Churches and denominations are leaning backwards to make democracy operative in the whole of the Christian life. And this is good. It becomes evil only when democracy gets ahead of Christian faith and when people think more of democratic processes than they do of the cultivation of the spiritual life.

Let us never believe that by taking religion out of public life we are going to add force and direction to the processes of democracy. This will not take place. The church represents Gods life among men, the working out of His spiritual purpose. Let us recognize this function of the church and support it. And let us carry our religion into our politics and our government. Bub let us not get to the place where we think so much of democracy that we forget the spiritual, divine, supernatural nature of the church.

There is a tendency today to exalt democracy in the church and to decrease its spiritual witness. This is a great mistake which will hurt us as citizens. It may destroy the power of the church to witness and work in the Ch-eators name.

Quote

"Add to the reasons why other people find it so difficult to underetand Americans: labor unions constantly seek higher wages and fringe benefits which restrict earnings of corporations, then invest union pension funds in industrial stocks from which they expect to reap big dividends. The Daily Oklahoman.

By JOHN CHAMBERLAIN

Copyright. 1963, King Features Syndicate, Inc.

When it comes to currency matters, this columnist is a curbsUme economist. But I once took a course in Aristotelian logic, which ought to hold good both on and off curbstones, and some of our distinctly nwi-logl-cal ways of defending the dollar have me completely baffled.

Since a currency, in this suspicious world, must be tied to iupporUng base (short of the of dubs and guns to make _ple accept paper at face Wue). the aim of any American administration must logically be to keep a certain amount of gold at home. This could always be done by fordble imposition of exchange cimtrols. But we are a free people, and we have preached the desirability of free ctmvertiblUty of currencies. So the democraUc way of defending the dollar in a free world would seem to involve making a couple of kindergar^ en, or primer, moves. The first move would be to stop giving Utles bo gold away - U.. cut foreign aid save where it Is very demonstrably a substitute for defense expenditures. The second move would be to slice the tax - consuming fat out of domestic spending programs that helps keep us a hteh-cost nation and so makes lb unprofitable for foreigners to buy our 0oods>

But the days go by, and the kindergarten moves are never made. Meanwhile, the gold drain continues. On July 17 U. S. gold stocks declined to $15,633,000,-000 the lowest figure since April of 1939. (We once had 723 billion.) In early July France took $50 million in gold. Mean-whe, the foreign "free world nations have increased theif short-term dollar credits from some $11 billion to $25 billion.

If the bill were to be presented all at once, we could pay three-fifths of our obligations. Then the "run would close the "bank unless Washington chose to grab title to U. S. - owned foreign plants in order to sell them for gold or hard currencies.

The methods which have been used to cajole foreigners Into withholding the presentation of bUls have been many and devious. We have accepted friendly prepayments by France and Germany of Installments onr long - term debt. We have borrowed foreign currencies and, in effect, moved them about the board to forestall gold withdrawals. We have tried to stop tourists from spending their dollars on Venetian glass beads and Bavarian gewgaws. And now come the more drastic moves, such as raising short - term interest rates (to keep cash from leaving our shores) and asking Congress to pub a penalty tax on Americans who buy overseas securities. The final note of desperation is contributed by the news that the U. S. has arranged for credits that will enable It to borrow up to $5(K) milli(Hi in foreign currencies from the International Monetary Fund.

It is this columns curbstone opinion that the latest moves must tend to defeat themselves for several reasons which have to do with human nature on the one hand, and with logic on the other. From the human natuie standpoint, they are advertisements of weakness. 0<rfd, it is well known, has no scent but -people who prize gold have very sensitive olfactory nerves. Smelling fear in Washington, the foreigner who possesses a short-term dollar credit must think twice about hanging on to it. On the other hand, he might desist from cashing it out of sheer friendliness for the N. S. But against his friendly felings he must balance his worries that Washington ma ysoon be driven to embargo the free movement of gold from U. S. shores.

From the standpoint of logic, the idea of putting a penalty tax on U. S. purchases of foreign securities is a mystery. We advertise that we wanb a productive world. We need a productive Canada to complement a U. S. economy that consumes Canadian woodpulp and metals. Yet we threaten to penalize American citizens who aro willing to help make the rest of the world productive. Meanwhile, we seem willing to give the outer world upwards of $4 billion in annual aids. Since the compulsion to earn money in order to pay dividends on this ^ billion Is just not there, it can (Continued on page 5)

Wonderful World Of Business

By ELMER ROESSNER

The temperature seems to affect business, as these reports show:

The Swiftles craze has caught up with the staid New York Journal of Commerce, a headline the other day: Cotton Case Affirmed, Balefully.. . . .Income-producing property doesnt have to produce income to make expenses deductible, a tax service reports. . .Half the states now have uniform credit laws. Commerce Clearing House reports.

Malicious obedience is rec-Cgnlzed as an employee fault by Supervisory Management magazine. It C(Misists of an employee following instructions even though he knows it will hurt production.

Income - tax payers can deduct none of the money spent for liquor in New Hampshire, the Internal Revenue Service rules. . .Thermos is a generic term, not a trademark, the Sec

ond Circuit Court,^ Appeals has

ruled. The case will be appealed . . .The number of bus companies has dropped from 23,(KX) in 1928 to less than 3,000 today. TIME GROWS SHORT Businessmen have until July 31 to make their record-keeping conform to new travel, entertainment and gift expense rules . . .Russia poses a major competitive challenge to America In the world lumber market, Robert F. Dwyer, Oregon lumber executive warns after a trip to the Soviet Union. . JSiickles made from October, 1942, December, 1945, have silver in them now worth 7 cents.

In reporting on the summer houseware shows. Retailing Home Furnishings, said, "attendance seemed satisfactory to most, buyers placed orders for basics and the outlook appeared promising, although enthusiasm seemed somewhat muted. Well, yes and no.

Read contracts with coUectlMi agencies, the National Better Business Bureau warns. Scrnie give collectors more money than

they collect. . .New waistless fashions for women are threatening many belt makers with bankruptcy. . .Corporations spending for public relations will be 3.7 per cent higher this year than last, the Gallagher Report says.

NOW THAT IKE IS OUT

The Internal Revenue Service has ruled that amounts paid by golf club members for using golf carts, gas, etc., are dues and therefore taxable. . .Authentic prints of Eluropean tiles on vinyl wall coverings have become a big item in the U.S. . . The new fur hats that match fur-trimmed coats are probably taxable, the National Retail Merchants Associations warns members.

A doctor and his wife who looked in on alcoholism treatments around the world get a tax deduction of the $10,000 costs. A district court held the doctor was an authority in the field, he had to keep up with world developments to m a 1 n-tain his standing, and the wife

was a partner in his clinic. They keik diaries showing that most of their time spent in study, not gallivanting.

Imports have taken over 10 per cent of the American shoe market. , .Variety stores face lean years ahead, one market analyst reports.. . .The Federal Trade Commission has available 10 guides for advertising in as many Industries.

RETAIL SALES CLIMB BUT AT SLOWER RATE

Retail sales in May and June were much stronger than a year ago, but June sales were virtually unchanged from those of May. The Department of Commerces preliminary figures for June show a sales total of $20.6 billion, 6 per cent above those for June, 1962, and about the same as for May. 1963.

The Departments revised figures for May, after adjusting for trading day differences, were $20.3 bUlion, 4 per cent above those .in April, 1963, and 5 per cent higher than sales in htoy, 1962.

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