1%ura4r, t>ecember 12, 1^63'

Shifting Scenes Backstage

Big Business Does Have Problems

The naflon often displays the attitude that big business has no economic problems, and that its appeal for help are merely schemes through which it hopes to heap profits upon profits.

Then comes an announcement such as the one this week by Studebaker Corporation that it will cease its manufactur of automobiles in the United States because of the staggering losses its operations have suffered in recent years.

According to the board chairman of the corporation, the shutdown of the South Bend auto plant came because we were being bled to death there. He added that the -pioneer auto manufacturers losses had mounted to $40 million since 1959 while the company was trying to stay alive in the car business.

The decision of the company will have a severe and direct impact upon some 5,000 people who have been employed in the South Bend plant. Further repercussions will be felt throughout the country through some 2,000 Studebaker dealers who must follow the example of the ^manufacturer, or make other businefii adjustments by acquiring another

Camps Go', New industries Come

By WILLIAM A. SHIRES

CAMPS In county after county across North Carolina In recent months a prisoD camp has been closed and a new industry has come in.

- There may be so direct -ref lation, but the fact 4taa become almost a pattern. State officials feel it is a healthy coodi-tion In a number oi ways.

Prisons director George Randall made mention at the pattern of camp closimi-industry opening in a report to the (Kate Prisons Commission oo ctmso-lidati(i of pris(m campi. He cited examples.

In industry-poor Brunswick County a few mcKiths ago a prison camp was closed. The property was sold to a local Industrial development group and the former prisra facility has now become a garment factory.

REPORT Randall report-^ ed this pattern may be followed in the immediate future in Jackson and Alleghany counties.

The 29-acre Jackson County camp near Sylva is being closed and an area development group with several industrial prospects wants to purchase the property. The Alleghany County Camp, near Sparta, will be divided between the state Highway Commission and the North west Area Development associ-i ation. The prisons CommissltHi approved sale of both properties through the department of adminJrtrmtlon for amounts equal to or exceeding appraised value.

Prescribed procedure for such transfer of property is to offer it first to other state agencies, such as the H i g h-way Commission. If the state has no further need for it, it Is sold on bids.

REASONS A fire which destroyed the mess hall made closing of the Jackson County camp neaeasary ahead of schedule. Randall aid. This camp has a total appraised value of $28,600 and Is expected to go to

- the Cherokee Area Development association.

The Highway Coramisid o n wanta the ma|or portion of acreage at the Alleghany camp but building will be sold for an industry.

In Vance Cotmty, near Henderson. the prisons department will sell 75.6 acres of fanrltnd appraised at $12.340. The land Is no longer needed in the prison systems farming operations. Raleighs Meredith College has made an offer for 56.75 acres of prison land on the old Camp Polk property now east of-the Rale,igh belt line. Camp Pdk Is being converted into an vocational education center for youthful (rf-fenders.

SHRINK Step by step, camp by camp, the states orison ystem is shrinking. Two

- iil^

more camps, those in Alexander and Beaufort counties, were to be closed this week bringing to 19 the total number closed during the past two years.

The priscD camps arc being closed iHlmarily in the interest at more efficloit and economical operation of ibe system.

R-andaii rcpcMted that econo-adcs effected thrcmghout the system resulted in the Prisons Deiwutment returning $1,612.000 to the states general fund this year and $1,153,000 turn e d last year. And another economy jrvey o the system is being conducted.

At the same time, Randall reported the states prison population is continuing to decline now down to 10,498 prisoners.

CL06INGS No prisons em-pbye has lost a ba^ause of prison camps closings, Randall said. Careful planning of the consolidations and normal turnover o personnel enabled the department to absorb all employes into other positions in the system, he said.

Without the consolidatiMis. Randall said, the prisons department would have been forced to spend huge sums for renovations and Improvements to old, outmoded facilities. The smaller camps, he said, also required much higher per unit costs.

PROGRAMS - Randall also pointed out benefits of other programs initiated and developed in the prisons system. He cited the states work-releasc pr(*ram which enables a prisoner to hold a job, pay his keep and support his dependents. There are 850 prisoners now participating in work-re-lease. he said.

There are good results being obtained in such programs as alcoholic rehabilitation, medical, personnel, counseling and group therapy along with the budding vocational education for youthful offenders, Randall reported. These programs, he said, enable the system to carry out its twofold purpose of protecting the public and rehabilitation o offenders.

MEMBERS Warm praise for the state prisons .system came from Gov. Terry Sanford on the occasion of w'elcoming two newly appointed members of the Prisons comm<i.''ion, State Sen. Carl Meares of Fair Bluff and Ruben J. Dailey, N**<>rro attorney of Asheville.

The tw'o took their oaths of office administered by Supreme court justice William H. Bobbitt Dafey said he was particularly pleased to have Bobbitt administer the oath because h'' began his law practice before Bobbit*^ when the justice was on the superior court bench.

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product.

Profit is the life blood of any business. Without it the business cannot infV.finitely continue it.i operations. When it find.s itself in an unprofitable position, it must make the nece.ssary adjustments to correct the situation or face a certain total lo.ss at some future date. Whether it is a one-man busine.'-s of an industrial giant such as Studebaker. the same principle applies. The loss is measured not only iti terms of the sseti of the eompany,^ but also in job.s, payrolls, gupplies. The repercussions always are feit far beyond the company itself.

Whether the casualty is an industry the size of Studebaker, or a little store on a side street, its continued operations, the jobs it provides, the contribution it makes to the over-all economy, is dependent upon its ability to cope with the business climate in which it finds itself.

To the degree that all the elements which make up that business climate help support rather than erode the foundation upon which our businesses are built, the nations overall economic situationand that of its people is either enhanced or reduced.

Citys Street Work

Is Significant Step

Addition of more than two miles of paving and more than three miles of curb and gutter work to Greenvilles street system in the past six months is a significant step in the citys effort to overcome the problems of dirt streets.

To be sure, Greenville still has more unpaved streets than it should. It has more miles of streets without curb and gutter than it should. But the city Is making stedy p'rogress in improving thes streets; This progress is not only making the city more attractive, it is providing greater convenience for residents of the city and at the same time reducing the high cost of maintaining dirt streets in reasonably good condition.

It may be many years before Greenville can boast that it is a city with no unpaved streets, but with each passing year the backlog of unpaved streets is being reduced. This, coupled with the provision that new sections brought into the city must have paved and curb-and-guttered streets, points to the time when the dream of a totally paved street system will be realized.

City officials whose policies and attitude toward a progressive street paving program have encouraged the progress deserve a part of the credit for what is being accomplished. Credit i.s also due property owners who are participating financially writh the city in paving streets adjacent to their property, and to the citizenry of the city without whose support such progress would not be possible.

Greenville has every reason to be proud of the manner in which it is attacking its problem of unpaved streets, and proud of the accomplishments which are being achieved.

By ART BUCHWALD

Smoking Publics Ally

Despite the recent publicity concerning the effects of cigarette smoking on the human body, we are happy to report to the cigarette companies, who have so much at stake, that our wife is not impressed with the evidence so far. If she speaks for the majority of cigarette smokers, and she insists she does, sales should continue and even rise as the reports coming piling in.

The other night we said to her, I see someone from the American Medical Association has come out and said there Is a definite correlation between cigarette smoking and heart disease.

What do they know about it? she said angrily.

Well, theyre doctors and theyve done a lot of research on the problem.

The tobacco industry also knows a lot about it, and they

say we should wait until all the evidence is in. Would you please pass the ashtray? The evidence Is pretty conclusive, we said. I read the other day that in an independent investigatlcHi they had 20 mice smoke cigarettes and 20 mice who didnt, and the cwies who didnt lived twice as long as the ones who did.

Other Editors Saying.. The Mind Of Os wale.

(Richmond News Leader)

President Given Period Of Grace

By JAMES MARLOW

WASHINGTON (AP) - President Johnson will never sec the likes of it again. It probably will last through Christmas, but not much longer.

The Republicans are muted. Premier Khrushchev is as quiet as a doll, and Fidel Castro must be playing a mandolin, hes so quiet.

This isnt the first time a man In Johnsons spot suddenly thrust into the White House on a presidents death was given a period of grace.

It happened when Vice President Harry S. Truman took over in 1945, after Presid e n t Franklin D. Roosevelts death.

The tasks confronting Johnson since he became president are just a mild daily routine compared with what laced Truman.

He had to end a war in Europe (Johnsons main problem now is with the budget) and another in Asia, help get the United Nations started, decide to drop atomic bombs on Japan, reconvert the country to peace, hold down living costs and settle strikes.

For some months after he moved into the White House Truman practically had a honeymoon with the Republicans in Congress. That was in 1945. The honeymoon didnt last long, the next year was a congressional election year.

The RepiJblicans made their attacks on 'Truman so convincing that in the 1946 elections the voters gave them cwitrol of Congress. From then on few presidents ever had so much raucous trouble with Congresa as Truman. -

idential candidates have declared a moratorim on speech-making until alter Jan. 1.

But then they'll come back, re-charged by their rest, and able to make more noise than ever, particularly since Johnson, like Truman, has to encounter aa election year, this time a presidential elect i o n, with himself no doubt as candidate.

Johnson, a shrewd manipulator, may do better. But its not a good bet.

Right now the congresslMial Republicans are layihg off him. The Republican would-be pres-

But Johnson, deliberately or not, has followed the Truman pattern in a general way up to this point.

Truman lost no time, after becoming president, in addressing a joing session of Congress to say he would continue Roosevelts policies. Johnson did the same, to .express his support for the late President Kennedys programs.

Truman a^ed the Roosevelt Cabinet to stay, although there were changes later. Johnson has asked the Kennedy Cabinet to stay. ^

Truman paid the House of Representatives a surprise visit 19 days after taking office, and had lunch , there. Twice within the 19 days since he took office Johnson has visited the House, and had lunch there.

Truman early favored a tax-aid program. Right from the start Johnson favored Kennedys tax-cut program.

Within six months after Truman became president the Republicans began opening up on him. They ..seem to be getting restless already about their moratorium op Johnson.

One of them Rep. Frank J. Becker of New York complained Tuesday that when Democrats call for a moratorium on politics, Its just to gag Republicans. His wasnt the only voice <rf complaint.

So things ought to be getting back to normal around the first of the year.

Last night WNRL rebroadcast the August debate in which his belief in Marxism.. The pieces of Oswalds mind fall into place with interlocking precision. Here is a mentality moulded by Communist ideology, trained to grapple with the ^ippery line. It is a mind that is outside the American realm of political debate.

A chilling thing it is, to hear Oswald maintain that the Fair Play for (riiba Committee is not a subversive organization. Eight volumes of Senate hearings detail the connections of the committee and some of its members with the Communist government of Cuba. Castros money paid for a fuU-page ad in the New York Times, for propaganda published both here and in (ZJuba, and for illegal travel to Havana: yet Oswald calmly says that the committee has no connection with Communists.

Oswalds distortions parallel the current line of the Fair Players. Immediately after Oswald was apprehended, the committee released a statement that the New York office had never heard of Oswald. It was a statement that Castro wanted, because the (Tuban ambassador to the UN was wi American TV within hours, quoting the denial with approval. He also said that the Cuban government had never heard of Oswald.

The Cuban ambasador either lied or did not take time to check, for it was soon proved that Oswald had been in the office of the Cuban consul in Mexico only weeks before the murder. The Fair Players were also somewhat unfair with the truth, and they have now released their correspondence concerning the organization of Oswalds chapter. Dallas police have also noted that letters written to Oswald about the organization of the New Orleans chapter had an interesting char-actiristlc. Although written by the same man, some were on stationery of the Fair Play for Cuba Committee, and some

were wi that of Ihe Cwnmun-ist Party of the U. S.

Nevertheless, Oswald quite deliberately said in New Orleans that his group had no connections with communism. He declared that he was a Marxist, and explained that the difference was one recognized by the United States in giving aid to Ghana, Guinea, and Yugoslavia. He got* the most propaganda mileage out of a statement that was the truth, namely that the Pair Play for Chiba Committee was not on the Attorney Generals subversive list.

FBI and Senate invesitgation have shown conclusively, however, that the committee has been Infiltrated and in some areas dominated by the Communists and the Trotskyites. There Is no question of their place in the network of subversion. Members of Congress had pleaded in floor deb ate that the Pair Play committee Itself should also be cited. But nothing was done, and Oswald and a good many other leftist were able to mislead the American people.

The latest reports from Dallas connect Oswald with pickets protesting the Adlai Stevenson rally, and with the attempted assassination of former General Edwin Walker. The common denominator of Mr, Stevenson, Mr. Walker, and Mr. Kennedy was that all three 'had spoken out against the Castro regime. Oswald told the Cuban exiles in New Orleans that he would defend Castro.

The very next month, September, Castro threatened to kill the leaders of the United States if they continued to plot against him. The circumstantial evidence is now fairly complete: It tells us that a Marxist enthusiast for Fidel Castro assassinated the President of the United States shortly after contact with agents and officials of the Castro regime. What remains to be proved is whether a mind dedicated to the violent overthrow of the U. S. political system needed a direct command to do his deed, or whether a hint would suffice.

Quote

Issue

Boilec.

'Down-

I dcmt think they should allow mice to smoke, she said. Ive always thought it was very bad for them. Theyre just trying to dramatize the effects of smoking on the human body, we said.

I dont see why we should give up smoking because mice cant do it, she said.

It isnt just mice, we told her. They did the same thing with rats.

Are you <ailltag me a rf? There is nothing personal about this. T Just thought youd be interested In what theyre saying these days about smoking.

I never liked mice or rats, she said.

Thats not the point. We are dealing here with medical evidence.

Ill bet the mice who lived longer were nervous wrecks, she said.

Why dcMit you come right out with it and say you want a divorce? she said.

I dont want a divorce. I just suggested you give up smoking,

As far as Im concerned, she replied, its the same thing.*

When a pal lets you out-fumble him for the check, thats a shellout falter. Daw.son (Ga.) Advertiser.

They didnt study that part of it.

Of course they didnt. All they were concerned with was cancer and heart disease. Why didnt they study their mental health? Do you know why women smoke? Because theyre nervous. Do you know who makes them nervous? Their husbands. Why dont you find out how many marriages have been saved by smoking instead of how many mice have died from it? Do you think there is a co^ relation between marriage and cigarette smoking!

There is in any house w'here a husband starts throwing mouse and rat statistics at his wife.

You may have a point, we admitted.

The trouble with all these reports is, the more they put them out, the more nervous smokers become and the more they smoke.

Why dont you just give them up?

By JOHN CHAMBERLAIN Copyright, 1963, King Feature Syndicate, Inc.

Lyndon Johnson has called ^for the creation of five million new jobs, and has taken the position that the proposed tax cut will do a good deal to conjure up a big surge in employment. Connecticut Junior Democratic Senator, Abe Ribicoff, has, on me other hand, doubted that tax cutti.ig can result in the sort of investment that will put unskUl-ed men to work in any significant numbers.

While this column would like to accept President Johnsons line of argument, the present trends in patterns of employment tend to support Ribicoff. As the Chase Manhattan Bank makes plain a recent analysis published by its economic research department, the job questicm boUs down to a case of them that has, gits. When new Investment creates the need for extra work, the skilled operator tends to get more overtime. Or he takes a se-ond job. s a moonlighter,

According to Department (rf Labor surveys, there are now some 23 million Americans or a full third of the work 1 n g force who are employed more than 40 hours a week. Some 13 mUlion do more thmi l^rs of wor^. Now, if the extra work beyond 35 hours a week were to be shared out among the five- million unemployed. the job problem that faces America would not be entirely solved. But would be much more manageable.

The Chase Manhattan ecmio-mlsts, however, in analyzing the nature of moonlighting,** show why a share the work* program cannot succeed. Of the 23 million people who now put In more than 40 hours a week, some five million are entrepreneurs. They work long hours, whether on their own farms or in their own .small businesses, as a matter of pro-ftt-and-loss necessity.

Then there are the three million mowilighters. They feel they need the extra money to support their families in an inflationary era. A million of these moonlighters are s e 1 f-employed in their second jobs. Others have professional skills that make their employment a must for those who pay them their second salaries. It 1 obvious that no law could bis framed in a free country to prevent the .three million moonlightera*^rom exercising ttielr God'- given rights to the irtiits of personal initiatives.

Next cwne the 15 mill i o n wage and salary workers with one job each that carries with it considerable overtime. Pour million of these are professional and managerial men and women, and their extra work cannot In the nature of things be parcelled out among those without professional traini n g, as the Chase Bank economists say, Its the old story: our skill requirements have outstripped our educational attainments.

The 11 million non - professional overtime workers who might be forced, by company pressure, to share their work with the unemployed are not likely to be touched. For it is to the interest of an employer to pay his existing work e r overtime rather than to take on new people who will have to be provided with fringe benefits and Social Security checkoffs. Moreover, many unions frown on spreading the work. The Incentive to join a labor union is to place ones self in a favored positltm for getting all the woric and money that one can.

It Is not to be argued, of course, that new investment created by money saved on tax cuts will fail to'produce extra jobs. But insofar as those new joba require kills, they will be a temptation to further overtime tod more moonlighting. There is no way of getting around this as Itmg as the five million unemployed remain largely unemployap ble in an advanced and increasingly automated economic system.

This is not to say that a tax cut is to be deplored. It could add health to the present ec-(Hiomic system by stretching it to capacity and by giving moonlighters and over time workers even more purcha.sing power. It could serve as a cushion against a future down-(Continued on Page 5)

Strength For Today

J'

arge Loopholes In Tax System

BY EARL L. DOUGLASS

YOUNG MAN MAKES GOOD

John Mark, w'ho wrote that life of Christ which we call the Go.spel of Mark, was an intere.sling character, an important figure in the life of the early church.

He was the son of a woman wlie bore the name of Mary and in whose home Jesus and his disciples were accustomed to gather. Paul and Barnabas on their first missionary journey took Mark with them as a young man to handle the chores of this arduous trip, but when Maik realized how dangerous the country wa.s through rhlch they were paar.ing he turned back and retunied home. Paul was furious over this defection; 50 much so that when he and Barnabas planned a second rniKsiona!"' ^''flrney, Paul refus-.ed to take Mark with them. He had shown the white feaHier once, he might do it again.

But Mark recovered from his timidity and youthful weaknesses, He ree^' ^auls confidence to such an extent that Paul towr pnd of his life

asked that Mark be .sent to him, for he is useful to me for mil.: ing.

Mark Is believed to have become the amanuensis, or secretary. of the Apostle Peter He wrote the Gospel which bears V name, and this gospel was later used by Matthew anc Luke as a-sort of outline for their longer accounts of tl'.. life ministry of Jesus.

So Mark who started out badly turned out well In the end. This lias tieen the life story of many a young person since ttiose ancient days. If a boy has the stuff in him and is honest ' and i^Biffent, he can surmount almo.st any dlffffcul-ty and rise above past mis-take.s.

Let UK not be too hasty in our judgmcnl#.

By ELMER ROESSNER One of the biggest loopholes in Federal tax laws te the exemption of interest on state and local bonds. Almost $3 billion a year, flowing largely to the wealthy and big corporations. escape taxes.

This lopphole is comparable to the loophole for profits from oil and other mineral production. There are depreciation allowances up to 27per cent on this production. Its the reason there are more millionaires in oil than in wheat or corn, although grains and other farm products deplete the earth as pumping oil does.

Youll hear lots about the oil loophole in the next nine montli.s or so. Because President Johnson is from Texas and becaiise he Is closely associated with Texas oil interests, hi opponents will raise the question time and time again to embarras him. THEORIE.S AROUND

loophoi.es

The depreciation allowance

is based on the concept that the production of oil and minerals depletes the earth controlled by drillers and miners; they are supposed to be consuming their capital, hence theli profit is not pure but a conversion of part of the total investment.

Thats sound in many cases. In other cases, wliere the operator gambles relatively small amounts on leases and drillings, the profit may be manV times the investment. Tax abatement is often a second gusher for the lucky or astute operator.

The theory on tax exempt bonds Is this: If there were a Federal tax on their bond is-.sups. states and localities would have to pay higher bi-terest rates; hence the Federal tax on interest would be a tax on states- and localities.

That theory, of course. Is nuts. By reductio ad absur-dum, pay of policemen, firemen and ^other state and local en^ployees should also be

exempt from Federal taxes. LOOPHOLE IS LARGE

Tax - free bonds benefit only those who have. These bonds yield an average of around 3 per cent.

A person earning less than $15,000 a year can usually do better by putting Ids savings in a bank or savings and loan association. But a person in income brackets taxed at 60 per cent or more can do even better by buying state or municipal bonds.

A man with a capital of $10 million could invest all in tax-free bonds and enjoy an income of $300,000 a yer without paying a penny in taxes.

There are rich men eager to buy these bonds. The Investment Banker Association of America reports that more than 17.7 bllUon in new municipal bonds were told during the first nine months of 1963 and that for the fir.st time in history, this year may see the sale of $9 blUion In u c b

bonds. In fact, the total may top $10 billion.

The CJhicago Federal Reserve Bank estimated that there were $74 billion in state and local bonds outstanding at the end of 1961. Allowing for bonds paid off, the total today may be above $80 billion.

This would generate almost $3 billion In interest a year, all tax free. If this were taxable, the prevailing rate could be cut. Hence the smaller taxpayer shoulders part of the burden the wealthy escape.

There I another fault with tax-exemiXs, Aboiit thit toino#-row.

ONE COMPANY SEES DROP IN TOY SAI.es The A. C. Gilbert Co.. after a sharp fall in the (iricf of its stock, said that It gxpectfd a los thii year. One official said toy sales were hit because of unseasonable weather in October and November and a lull in buying after the assassination of President Kennedy.

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