4Thf Daily Reflector. Greenville. N.C.Thursday, October !, If74

Just More Spending Money?

President Ford has proposed a five percent surcharge on corporate taxes, on family incomes of more than $15,000 and individual incomes of more than $7,500 annually.

In a talk to Congress the president proposed increasing the investment tax credit from 7 percent to 10 percent.

There was a proposal for providing $3 billion for mortgage purchasing, financing some 100,000 new homes.

Removal of crop allotments on food crops, reduction of foreign oil imports and vigorous enforcement of antitrust laws were also among the presidents proposals for handling the nations econmic problems. There were also plans for extending unemployment benefits and creating additional public service jobs if unemployment exceeds six percent.

Finally there was an appeal to the public to grow more, waste less and drive less, heat less.

The one-year surtax, which must be approved by Congress, would raise about $4.7 billion. The immediate question that arises is what would be done with the funds? It is well known that government spending, particularly deficit spending, is

THIS AFTERNOON

inflationary. The question has to be whether the surtax funds would be used to eliminate the deficit in the federal budget and thus ease the inflationary trends, or would they just be more money for the government to spend, sending us still deeper into the inflationary spiral?

But then President Ford has to walk a thin line as the spectre (rf a major recession hangs over the nation. The house building industry is already in trouble and there have been some industrial layoffs around the nation. Since recession and resulting unemployment can occur quite rapidly, the Ford administration could be accused of not acting quickly enough to throw federal mwiey into the soft areas qf the economy, once people are walking the streets out of jobs.

Basically the president is asking Congress for weapons to fight either, or both, inflation and recession, depending on how things go in the economy in the next few months. We happen to feel that inflation is the more immediate problem, which would mean that government spending should be carefully controlled. It is encouraging, however, that the administration at last is proposing definite actions to strenghten the economy.

Spending Blame Shared

By BILL NOBLITT

RALEIGH-It takes a brave fellow to point his finger at his own bosses and tell them that when it comes to passing around blame for ever-increasing spending in state government, members of th# General Assembly have to accept a major share.

That is precisely what Mercer M. Doty, chief of the General Assemblys fiscal

research division, did recently for members of the joint Senate-House governmental spending com

mission.

The commission, chaired by State Sen. I. C. Crawford. D-Buncombe. has been

meeting regularly this fall to probe spending activities in a number of state agencies, serving notice that they want some money saved, and generally attempting to organize itself into a permanent watchdog activity over what most members consider runaway spending by state government.

Look To Selves

But, Doty, chief staff advisor to the commission, put the legislators on notice that if they are going to look for the big bucks, the big-programs where spending can be held down they had best look to their own

Political Notes

responsibilities.

Historically, this General Assembly has appropriated dollars far beyond Advisory Budget Commission recommendations, Doty said.

A 10-vear review shows General Assembly appropriations higher than budget recommendations in every year, ranging from a low of $10.5 million in both fiscal 1964-65 and 1971-72, to a high of $166 million in fiscal 1973-74. The average increase over the 10 years is $50.2 million per year; a total of General Assembly increased spending over the 10 years of $502.8 million

What happens is complex; budget recommendations from the governor and the Advisory Budget Commission are drawn up in November. The Legislature gets the budget in January. In the meantime, state revenue officials have drawn up revised income estimates, firmed up surpluses, totaled up reversions of money not spend by state agencies and turned back to the general fund, and the early cutting of some programs by the General Assembly is underway.

The net result is that lawmakers suddenly see themselves blessed with

unspent. uncommitted money, and thoughts turn away from the budget toward ways to use surplus money for pet projects.

Political considerations and lobbyists take over deliberations, and the General Assembly turns its energies to the traditional task of spending every dollar it can get its hands on.

Meanwhile, folks back home with favorite spending programs turn up the heat; state employee and teacher lobbies increase pressure for pay increases; legislators who had moved for cuts in spending find themselves under pressure from em

ployees and agencies affected ; and a few days form adjournment the lawmarkers rush through an ap

propriations bill historically higher than any previous one

Doty warned the spending probe group they must not fall victim to a general attitude that state ad

ministrators are incompetent or unconcerned over high

spending, and they should tread softly when it comes to ideas about across-the-board program cutting of 10 or 15 per cent as some members suggested.

It is your responsibility to oversee the budgeting and

spending of state agencies . . to set priorities. . . Doty told the legislators.

Members of the probe admittedly have bogged down in attention to isolated, localized projects where little chance is seen for affecting state spending in a major way. Were just chasing rabbits, one member complained.

Doty took the opportunity to point out that the need not be the role of the commission; it could go for in-depth evaluating state programs in an effort to determine whether or not a given activity is needed at all. or effective in its work.

The solution, he suggested, lies in learning to use staff effectively to research programs and formulate the right questions before calling the agency people on the carpet; looking for the big bucks by concentrating on program acitivites rather than isolated spending projects; and analyzing reports of savings put out by various state agencies to determine if the savings represents actual dollars saved, is simply a cost-avoidance of dollars budgeted but not spent, or a shift of dollars from one activity to another.

Savings Of $40 Million?

By JOHNKILGO State Senator Cy Bahakel of Mecklenburg-Cabarrus is one who says hell lead a fight to repeal the sales tax on food Bahakel says one way of making up lost income if the

tax is repealed would be for the Legislature to adopt recommendations to be made by the Costs Study Commission That commission is headed by Sen I C. Crawford of

Statement of Ownership, Management and Circulation

Actor August 12.1970; SecUoa 3685. Title 39. United States Code

Date of Filing- October 1, 1974 The Daily Reflector

Frequency of issue: Evenings Monday through Friday and Sunday morning Location of known office of publication: 209 Cotanche

Street, Greenville. Pitt County. N.C Location of the headquarters or general business offices of the publishers: Same As Above Publisher David Jordan VMiichard John S. Whichard. Co-Publishers, Greenville, N.C.

Editor David Jordan Whichard. Greenville, N.C.

Managing Editor Alvin B. Taylor, Greenville. N.C.

Owner:

The Daily Reflector, Inc., Greenville, N.C Stockholders:

David Jordan Whichard. Greenville. N.C.

John S. Whichard, Greenville. N.C.

Known bondholders, mortgagees, and other security holders owning or holding 1 per cent or more of total amount of bonds, mortgages or other securities

Asheville and Bahakel is a member. Says Bahakel; That commission will recommend savings of $40 million a year.

Sen Crawford tells me he doesnt yet know how much money the commission can save taxpayers annually, but he says; It will be a very significant amount. Commission recommendations are supposed to go to the General Assembly in January of next year.

The most overrated flap in state politics at the moment is the one between Attorney General Jim Carson and Democratic nominee Rufus Edmisten over Edmistens failure to pay North Carolina taxes while working in Washington. I would say both sides have milked this one for all its worth and then some..

Bv the way. Edmisten winces just about every time he picks up a newspaper Many headline writers refer to him as E^minsten

The battle for the Ninth District Congressional seat became downright stormy this week. Democrat Milton Short accused Republican Congressman Jim Martin of having a private slush fund He also implied that Martin might be giving preferential treatment to those who contribute to the Martin Boosters Club.

Martin, usually calm, cool and collected, ripped back at Short for the Allegation. He said Shorts campaign had reached the desperation stage, and that many of Shorts supporters had changed sides because of it. He is definitely traveling the low road. said Congressman Martin

If Im traveling the low road, Short responded, then its his low road Im traveling on.

Integon Life Iniarance Corporatioa Wintton-Salcm. N.C.

UNC-CH is trying to stay on the good side of potential legislators. The upcoming (CooUnued on Page 5)

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DAVID JULIAN WHICHARD Board Chairman

EGO PECANS Many books have been written about the nature of sin, but there is one simple characteristic about it which tells us as much about it as do hundreds of printed pages The middle letter of the world sin is I Which is just another way of saying that sin is the fruit of selfishness. It arises from the desire to be comfortable, indulgent, unrestrained in our impulses, indolent, malicious, vengeful, covetous When sins gets people into trouble, as it so often does.

there is an almost irresistible temptation to blame the difficulties on someone else. Yet in the overwhelming proportion of cases, the sinner himself is the cause of his problems. And it is only by recognizing this fact that we can improve the moral quality of our lives. One of the persons Jesus praised most highly was the Publican who beat his breast and said, (Jod be merciful to me a .sinner. It may help to dispell illusions about ourselves to remember that the middle letter of sin is I

by Elisha Douglass

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lirV'thf Tonrirr-.^iinijL

"Right. (ilii<f! WeVe figliliiig iiirialioii . . . and al^i. I*iii Mirn tu *>a>. a bunch of farnici> and Kii^isians and . . . T

By JAMES J. KILPATRICK

Tuition Grants Retried

The United States Supreme Court settles down to work this month on a long docket of pending cases. Among the more significant actions are two more cases testing the tough question of public aid to parents who want private schooling for their children.

One case comes from California, the other from Pennsylvania. Actually, there is a third case from Missouri. not directly related, involving a parent

who wants bus transportation for a child attending a Catholic school.

Each of the cases raises difficult issues under the First and Fourteenth Amendments. In almost every other test case in recent years, the high court has rejected public aid programs that might benefit church-sponsored schools. In the Courts view, such programs violate the constitutional prohibition against

Public Forum

To the editor:

I am writing to correct a number of discrepancies in the letter written to Public Forum by Ms. Gail Gregory, which was published in the October 6 issue.

To begin with, she was incorrect in her assumption that the Humane Society determines the policies regulating the Greenville City Shelter and the Animal Control Officer. The Greenville City Council passed the ordinance requiring dogs to wear city tags several years ago. This year it built the shelter and hired an Animal Control Officer so that Greenville could be independent of the County Pound, where the animals are still put to death with cyanide gas.

The city tag does not cost $6.00, as Ms. Gregory stated, but $1.00. The additional $5.00 is charged as a redemption fee when the owner reclaims his dog at the shelter. The purpose of the tag is to make the dog readily identifiable in the event it is lost or injured. While the dog could also be identified by its rabies tag, this would take more time, particularly at night when the County Health Department is closed. Hundreds of animals in this area have had to be put to sleep after they were injured by cars, because the owner could not be found, due to the lack of tags. The Humane Society was unable to pay the veterinary fees in these cases because we do not receive adequate financial support from the community. In short, the protection the tag affords is well worth the money and effort required to get it.

I agree with Ms. Gregorys statement that the Animal Control Ordinance has been inadequately publicized by the city. Several of our members have suggested that the city should circulate this information in flyers, door-to-door, in the same manner as it has publicized its garbage collection policies. Other concerned parties with suggestions should make them known to the City Council and City Manager.

The Humane Society needs the support of those concerned with animal welfare, in terms of active membership as well as donations.

Liz Whalen

President. PittCa Humane Society P. O. Box 1155, Greenville

laws respecting an establishment of religion. But Justice Lewis Powell, speaking for the Court, has said that the narrow channel may still exist through which a valid law might be piloted. It seems doubtful, but perhaps one of the pending attempts will succeed.

The California case tests an act passed by the state legislature in December of 1972. The law provides a tax credit of $125 per child for taxpayers with incomes under $15,000 who send their children to non-pulic schools. Smaller credits are provided for those with incomes up to $19.999. but no credits are offered beyond that point.

Before the act could go into effect, an organization known as United Americans for Public Schools sued for a summary judgment and a permanent injunction against the laws enforcement. A three-judge federal court agreed with the plaintiffs and held the act invalid.

The test case from Pennsylvania went the other way There the state legislature approved an act providing for reimbursement by the state of certain costs for auxiliary services in nonpublic schools. These include such services as guidance counseling, testing, remedial speech and reading, the teaching of English to Spanish-speaking children, and such other secular, neutral. non-ideological .services as are of benefit to non-public school children and are presently provided for public school children. The Pennsylvania plan also permits the state to loan textbooks in non-religious fields A three-judge federal court found the program a constitutional exercise of state powers.

These latest efforts by California and Pennsylvania (Continued on page 5)

Gloomy

Over

Market

By MARTIN IIIRSCIIMAN Associated Press Writer DETROIT (AP) - A mood of pessimism and uncertainty has dominated a semi-annual meeting of stock analysts.

Reflecting the gloom on Wall Street, one analyst said his colleagues were searching for the catalyst that will turn this herd of bears heading for the cliff

Chief among the topics of discussion at the meeting of the 14.000-member Financial Analysts Federation that ended on Wednesday was the future of their trade The people Ive met here are puzzled. said Ted Lilley. president of the l4.000-member federation They're gritting their teeth and talking about buying bars of gold to put un der their beds

The analysts are market advisers. and an unusually large number of top executives from major companies attended the conference, partly to boost con fidence in their industries and firms.

But by and large, they ran into strong resistance.

At last nights cocktail party. it became clear that anyone here with over $100 million to invest is sitting on the sidelines. wailing for something to happen. said Frank Cappiello Jr.. president of Monumental Capital Management Inc.

The question is, what will be the catalyst? he said. Somewhere along the line, something will turn this herd of bears heading for the cliff.

The analysts agreed generally that by rights there should be as much or perhaps more - work for the analysts in bad times as good In fact, many smaller investors simply pull out of the market in bad times Incomes in our area are down. said Lilley. of New York.

And attendence at the conference was down proportionately. Only about 325 analysts paid the $265 registration for the four-dav fall conference, down from 800 a year ago.

If we are not near the bottom. this will be the worst depression the industrialized western world has ever seen, and the capitalistic system is done for. said Cappiello.

Despite gloom and uncertainty on Wall Street, leaders of the (Continued on page 5)

40 Years Ago Totday

October 10.1931 Judge Dink James says the Eastern North Carolina Associations Expansion movement is making a good start. Many new memberships are rolling in daily, despite incomplete canvassing by many committeemen.

Tobacco prices continued to hold up on the Greenville market yesterday when little more than a million pounds brought in $371,663.31 K. W. Cobb said the days sales averaged $35 40 per hundred pounds

The east wing of the main exhibition hall at the State Fair grounds was in ashes today, and the cause of the fire has not been determined Today was governors day at the fair

Susan Price

Old Newspapers' Price Slumps

By JACK LEFLER Associated Press Writer LOS ANGELES (AP) -The bottom has dropped out of the market for old newspapers.

the market is very soft, said Harold Cowan, owner of AAA Industrial Paper Supply of Los Angeles, a firm that buys old newspapers for recycling into newsprint and industrial products.

The price has slumped from $32 a ton six months ago to $10 for domestic use and $5 for export.

Early this year there was a scramble for old newspapers, with Japanese and Korean interests grabbing a big percentage of the market and driving the price up. Now there is a su^us.

Japanese sources, commenting on the slowdown in paper imports, noted that their countrys economy, which has been growing at a rate of 10 per cent a year for the last two decades, has slowed down and this has affected imports of all types.

In 1972, Japan and Korea shipped about 2,200 tons of old newspapers a month from Southern California ports.

As the demand rose, a monthly shipment of 12,000 tons was projected for 1974, but it should fall far short.

(^owan said he has a surplus of newspapers on hand, hasnt bought any in eight weeks and probably wont for another two weeks. This has put a crimp in collection drives by schools and

churches, but their efforts are still going on to a limited extent.

Probably the biggest user of old newspaper for recycling into newsprint is Garden State Paper Co. with plants in Pomona, Calif., Garfield, N.J., and Alsip, 111.

Sixty-five newspapers in California and about 200 throughout the country are using recycled newsprint.

Although prices for waste newspapers have dropped in recent weeks, the general paper industry, particularly on the West Coast, is stronger today than at any time since World War II, said Richard B. Scudder, chairman of Garden State.

Todays waste newspaper prices are higher than any

paid since January 1973, when an unexpected export demand resulted in unprecedented high prices.

The so-called current drop in prices occurred as the export market closed off its purchases and the domestic market adjusted to the situation.

Scudder said Garden State has played an important role in attempting to bring some degree of stability into the traditionally cyclical waste paper market.

For example, he said. "Garden State is the only company in the industry to establish a guaranteed floor price, providing our dealers with an assurance of profitability regardless of market fluctuations.