-Tlie Dally R*fkctr. Grwuvllkr. vr Thanulay. Aagaat 14. IfS

UN Is Still Far From Perfect

The United States made use of its United States veto power this week to block the entrance of North and South Vietnam from UN membership.

The action was taken because the 15-nation Security Council refused to consider membership for South Korea.

U.S. Ambassador Daniel P. Moynihan cast the veto vote against the Hanoi and Saigon govern-inents, both of which are now communist controlled.

He said the United States was changing its position of 26 years which was not to use the veto on membership questions. The ambassador blamed the Security OmnciPs refusal to take up the South Korean membership question for the UJS. veto use.

Moynihan indicated that the UJS. would go along with Vietnam membership provided South Korea is also admitted.

We can understand the strategy <rf the United States delegation on this question. After all the Soviet Union has vetoed the admission of a number

THIS AFTERNOON

of new members, including four vetoes against the South Korean application. Still it is not logical to deny membership to the Vietnamese people.

Given the Soviet Unions history of vetoing memberships there is plenty of justification for our retaliating. At the same time we as the leading democratic nation should set the example for all peoples in the world being represented in the worldwide United Nations organizations.

The UN is far from a perfect world organization. It really has little power to act in international emergencies and certainly at this point we would not be favorable to giving up our sovereignty to the UN.

Still it is all weve got in the way o( a world forum and we will have to do the best we can with it. Maybe our stategy of holding up Vietnam membership until South Korea is admitted will work; nevertheless, like Red China once did, the question of some Vietnam representation in the UN will hang and be a constant problem to the United States.

BECOMING A PERMANENT GfOWtH

Limits

Insurance Pools Indicated

By BILL NOBLITT RALEIGH-Use of insurance pools to guarantee coverage at a fair rate may be the shape of the future in North Cardina in a number of controversial areas.

Wherever abuses occur by insurance firms; can-

ceilaUons. wildly escalating rates, refusal to write coverage for certain people, the experts foresee expanded use of the reinsurance exchange system.

Particular attention seems to focus on problems in health and hc^talization coverage, and homeowner policies in rural sections, near beaches, or in flood-prone sections.

Insurance Commissioner John Ingram delivers a resounding Yes to the question of whether the reinsurance pool might be the answer to a lot of consumer problems.

Pabllc Reaction As the puUic sees the success of our current ^forts, and is further abused by cancellations and other proUems, they will respond through the General AssemWy," Ingram says.

LIVING TODAY

The legislature has already written law establishing insurance pools in two critical areas, both pioneered by Ingram; automobile liability insurance and medical malpractice coverage.

We have abuses in the homeowners areacancellations and rate problems. We have people in rural areas who cant even get insurance, Ingram said.

We have troubles getting insurance on beaches.

Wherever there is red ) tape and second class treatment for the consumer, I can see the state moving to the reinsurance concept so that agents will have to write the policies.

Ingrams approach to consumerism in insurance has won him few friends in the insurance industry.

But the insurance consumer generally endorses his efforts, and the auto liability insurance pool, which replaced the iliscriminatory and highpriced assigned risk system, has proven popular.

Ingram was fought by

insurance firms who dont like the medical malpractice reinsurance exchange system, but the legislature endorsed that over industry objections.

Likewise, Ingrams push to end age discrimination in auto insurance was bitterly resisted, but won legislative endorsement.

Expand Concept

Having fought and won those battles, Ingram now says he is impressed with further opportunities to expand his concepts.

Perhaps signaling what lies ahead, a little-noticed proposal was introduced in the past session of the General Assembly to broaden the reinsurance concept to establish a reinsurance mechanism for major medical or catastrophic disease insurance in excess of basic policy health protection. Such a move could be the foundation of future legislative action toward a health insurance pool.

Wherever there are abuses, Ingram thinks, there could be law requiring that insurance companies write coverage at

reasonable rates set by the commissioner of insurance based on actual loss records in North Carolina.

Whatever the kind of insurance, the reinsurance exchange approach basically operates this way ;

All companies doing business in the state in a particular insurance field are required by law to provide coverage at rates set by the commissioner.

A company can, if it chooses, accept the premium payments, issue the policy, and provide coverage. Or, all premiums paid can be put in an exchange fund from which losses are paid and profits split back out to the insurance firms.

For the consumer, this means you can tell your insurance agent you want particular coverage, and he is obliged to provide it without argument or cancellation or overcharging.

The policy may be written by another company, but your agent will handle that for you, and the red tape eliminated.

Shrinking Family Impact

By LOUISE COOK Assoctated Press Writer The shrinking American family is forcing U.6 industry to think snuU to survive.

The Census Bureau reports that the size of the average U.Sl househidd dipped below ttmee p^-sons in 1974 for the first time in history the exact figure is 2.97 persons and the trend toward small families is expected to continue Why?

Women of child-bearing age claim they want smaller families. "When married women today are asked how many children they expect to have in their lifetime, those under 25 years old say they believe they will have just enough for zero population growth, the Census Bureau says.

Peo|^ are living longer and the elderly arent moving in with their children They keqi their own homes or iqiartroents.

Young people are moving away from home afta* gradu-atk from college The child who used to stay home until marriage is leaving the nest earlier.

These pet^e will still need

the goods and services produced by industry. But they will need them in a different shape

Smaller householib mean smaller houses. Smaller automobiles. Smaller padcages of food Smaller appliances. Different types of entertainment and amusement

Some of the changes are ai^Murent already, caused in part ,by the pressure of recession. Rising gasoline prices and shrinkit^ budgets have (M'ompted Detroit to put new emphasis on the small car. "No-frills houses provide a bright spot in an otherwise gloomy construction picture

Investment counselor Jesse Siff says industry is going to have to change its thinking even further or get left behind

Business and government spokesmen tend to discount reports of entire industries going out of business because of disappearing markets, particularly in the area of products designed for babies and childroi.

Th*e will be every tat as many infants, but they will be spread out over more households, said Herbert Zeltner, senior vice president of

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The government has been studying changing buying habits in connection with its revision of the Consumer Price Index. The final index isnt due out until 1977, but a spokesman for the Bureau of Labor Statistics said preliminary findings indicate people are buying the same things they always did, but in different proportions. Its a gradual change

Here is a look at what that gradual diange might mean to strnie key industries: HOUSING

Most of the experts agree that houses will get smaller for several reasons. Building and land costs have skyrocketed. More women entering the work force have neither the time nor the desire to take care of a large house. Smaller families need less space.

Zeltner said the living space of the future may be the cluster home, wiUi a group of individually owned bouses sharing common walls and some appliances in an extension of tte current townbouse facility. "Why should each family have the expense of a comsete kitchen and laundry unit? Zeltner said, suggesting instead that IxHnes at the future might have small kitchen appliances, washers and d^ers and share large ovens and cleaning facilities.

Siff said tha*e will be an increasing use of new matoials and new techniques some of them adapted from

research being done in connection with the space program to determine the effects <rf living at very close quarters.

Siff and others said they believed that the size oi the avo-age single-family home has peaked and will start to decline, but the American Homebuilders AssociatiiHi wasnt so sure

Associatimi economist Bob !%eehan said he believed the demand for the three-bednxmi and larger home would continue. Additional ^ce is not all that expensive, he said. He said the people bom in the postwar baby botmi are just reaching their 30s. Theyre getting married. Theyre having children

AUTOMOBILES

Economists inside and outside the auto industry agree that the small car is here to stay. They are less cortain about the fate the large car.

Siff iredicted that in 20 years, very large cars will be an anachrooism, maybe even a cdlectors item.

Nam Crandall, market research directo* of Fod Motor Ca, said he believed large cars woe here to stay. But he said that the cars would become more fuel efficient and what we call more passenger efficient by providing more interior space while cutting overall ctoensions, a trend already apparent in some 1975 models.

While the smaller household wUl mean the (Ceatiiitied on page 8)

Strength For Today

THE LORDS PRAYER

The Lords Prayer has in it one petition which may well make us pause. Forgive us our debts as we forgive our debtors." We ask God to forgive us only if we in a generous spirit forgive others, and that of course is putting a mighty stricture on the movement of Gods love toward our needy hearts.

But how could it be otherwise? If we will not forgive our fellows, how can we expect God to forgive us? The Lords Prayer

assures us uiat if we are to receive Gods forgiving grace, we must hold up to Him a life in which that grace may fittingly dwell. This does not mean a sinless life, because there would be no need for forgiveness if our lives were sinless. But it does mean a life out of which has been expelled all and malice. aUjbfooding over (Senses, all l)(ate enemies, and into which there has come the deep desire to be rid of the infamy and shame and burden of sin.

by Elisha Deuglass

By JAMES J. KILPATRICK

The Power To Destroy

The power to tax, said John Marshall in a famous line, involves the power to destroy. If the great jurist were sitting on the bench today, he might recast his sentence. It is the power to regulate that today involves the power to destroy.

This power the power to regulate very nearly destroyed the Bradley Import Company of Los Angeles. The story has eerie overtones of Huxley and Orwell. Such things, we suppose, cant happen in a free society. But they do happen.

In 1962, the Bradley company began importing ornamental, decorative dolls from Japan, and later, from Korea. As Judge Louis C. Bechtle would observe in United States District Court, these dolls plainly were never intended for use by children as toys. The dolls did not cry, wet, blink their eyes, or move their limbs. They were not meant to be dressed and undressed. They were sold in gift shops, not toy shops. They retailed at prices up to 175.

Other Editors Say We Cannot Agree

(WashfaigtonDally News)

Recently on tdevision a group of distinguished peq;>le discussed justice this country.

The ofrinion was offered that the swiftness of Justice rather than the severity of punishment is the greatest deterrent to crime While swift justice does help a great deal, we cannot agree that swiftness is die greatest single factor in deterring crime today in America. As we look at the picture, we must say quite strongly that the surety ci punishment rather than either the severity or the swiftness is the single greatest deterrent to crime

When some crime is committed and a year passes befo'e the defendants are bought to trial, we know that usually justice suffers and that punishment is more difiicult to realize But regardless of when a case is tried, be it swift a slow justice, if guilty parties are allowed to go free or if the officers of the law are tried ahead o the criminals, then there is neither justice nor deterrent there And in our own hearts and minds we see what we believe is exactly this happening

We would like to see swift justice We do not subscribe to aqy school of thought which would put emphasis on severity of punishment Severity in one case mi^t be great, but leniency in another case might be wise and practical But the surety of punishment when a crime is committed, with the punishment of course fitting the crime, is the best way we know to cut down on crime

It is most disturbing to us today in our land to see leadersin the field of law who quite qienly seem to defy our man made laws and who make a modiery of justice itself

Distinguished judges and attorneys have great knowledge but when it comes to the matters of justice and deterrent qualities, we believe laymen have opinions just as good

It is quite surprising to us to hear a distinguished judge say that the swiftness of punishment is the strongest factor. It is strong and we do not minimize its impact foe one moment But somehow a judge who makes such a statement must be so close to the forest that he cannot see tiie trees.

Many factors become invdved in the true search for justice Honesty, truth, decency, conpassion punishment and others are there all the time So is swiftness. But above all of them in the matter of deterring crime is and remains the surety of punishment

When those of a mind to canmit a crime see for certain the punishment being handed out that measure of surety stands far above swiftness.

In 1973, Congress created the Consumer Product Safety Commission, and gave it sweeping authority to enforce its own rules and regulations over products it deemed to be hazardous. The commission forthwith created regulations governing banned toys and other banned articles intended for use by children. Under these regulations, no pins could be used in any doll, stuffed animal, or other similar toy.

On July 9, 1974, without preliminary hearing or warning, the CPSC swooped down upon the Bradley Impo-t Company. This was its crime: Its dolto had pins to hold the elaborate costumes in place. Three U.S. marshals confiscated nearly 80,000 dolls. This was at the very peak of the Christmas order season.

Bernie Hartstein, president of the company, srotested in vain that in the 12 years he had been importing and selling the dolls, he never had received a complaint of injury. As it turned out, neither had the government ever received a complaint of injury from a Bradley doll. But the dolls had pins in them!

The case came on for decision before Judge Bechtle in September, 1974. He found against the government on every point. None of Bradleys advertising material, the court observed, depicted children playing with the dolls. The sales cataloga were not pitched at toy departments. There was no evidence that the seized dolls had been destined for toy dealers. On the contrary, the evidoice disclosed that a typical gift store displays the article like those with glassware, figurines, and statuettes, rather than as toys.

The governments own witness adtnowledged that Bradley-type imported dolls were kept in a glass display case apart from other dolls, and apparently under con-diticms where an employee was expected to pormit access to these articles. In brief, it was perfectly plain to the court Uiat the dolls in

(ConUniied on page 8)

Tested

By LEIF ERICKSON Associated Press Writer

SAN FRANCISCO (AP) - A legal case testing a citys right to limit growth and preserve its small town character apparently is headed for the U.S. Supreme Court.

The 9th U.S. Court of Appeals ruled Wednesday that the city of Petaluma, Calif., acted within its rights with a 1972 ordinance seeking to maintain its small-town character, its open spaces, and to grow at an orderly and deliberate pace.

Petaluma, 40 miles north of San Francisco, grew in population from 10,300 in 1950 to 24,-50 in 1970. Then explosive development boosted population to 30,500 by 1972.

The city council imposed a development freeze in 1971 and the following year voted a 500-a-year limit on new housing units in projects involving five or more units. The law does not affect single-family home construction, or even four-unit apartmoits which are not part of a larger project.

Were going to the Supreme Court with this, said Gordon Blackley, executive vice president of the Associated Building Industry of Northern California, after the appeals court decision was announced. We regard this as the most critical land use planning issue in the country----

The issue is this: 'The city this year can impose a 500-a-year limit in new housing units. If this stands, then that city council can steadily cut it back to 200, to 100, to zero.

The Court of A^ieals decision reversed a trial judges verdict holding that Petalumas no growth ordinance is unconstitutional.

U.S. District Court Judge Lloyd H. Burke had ruled that the ordinance violated citizens right to travel or to abide and settle and that the ordinance abridged rights of equal protection.

The appeals court rejected Burkes finding that the Petaluma Plan violated the constitutional right to travel. It said the plaintiffs in the suit.

(Continued on page 8)

40 Years Ago Today

August 14,1935

Plans were begin pushed forward rapidly here today for a swimming contest with Tarboro next week, and local swimmers who desire to take part in the contest have been asked to register at the municipal pool here.

H. A. McDougle, manager of the local pool, announced this morning that a meet had been arranged, and asked that swimmers register today or tomorrow.

The tryouts for different dives and races will be held Thursday night, August 15, McDougle said.

He said that many good swimmers and divers have been observed in action at the pool here from day to day. Among these are J. Weston Hodges, Graham Gulley, George Sickar and John Lautaros.

Greenville business houses observed the next to the last Wednesday half-holiday of the summer today with a baseball game at Snow Hill holding the attention of hundreds of fans.

James Kyle

The People Remain Cautious

By JOHN CUNNIFF AP Business Analyst NEW YORK (AP) When Washington empties for vacation time there often develops a hiil in the news, as if events themselves were taking a vacatioa But thats an illusioa The truth is that the news is nmde by comumers or whatever you want to call the o^ cSnary Americans who noake tiie decisions on whether to buy or sdl or be afraid or be optimistic. Washington reacts.

When the President and his advisors are away it probably ceases to react, but the events go oa Nature continues to {day its tricks on us, frosting or droughng food prices higher.

It looks as if potatoes will join the list of higher food prices. The government lowered its estims* nf the

acreage to be harvested and right away tlM prices for future delivery soared.

In itself that doesnt mean a disaster in the housdrald budget but, added to all those other rising prices, it does suggest that Americans mi^thavetocut ba<dt even a bit m<e.

It iuit likely that noany Americans are shocked by these prospects. Disappointed, yes, but all along they knew it was wise to (hscount those forecasts of steady recovery. How could tiie recession be over when they were out of woit?

Commofi sense told them nature could intervoae anywhere in the world and that they would have to pay. Agriculture Department forecasts of record crops notwithstanding.

It doesnt take a drought in

midAmerica to drive up the price of graiitt. The drought can be in the Soviet Union or in India and the impact on domestic prices is Just the same. They rise This is a world economy.

Interest rates are rising. They were sui^posed to be levding off; even some of the big banks that recently raised their prime rates again were saying tiuit Just a few weeks ago But in business, opinions never override the facts.

Official figures show that peofde are getting their jobs back, but suspicion about those figures remain Some private analysts say they wouldnt be surprised if the joMess rate rebounded in September.

One tiling that can be said for the administration reports is that they seem more consistent, at least, tiian some private forecasts.

Right or wrong, Washington does seem consistent

Any attempt to fathom what is being said in some of the private investment letters and reports from financial institutions is bound to lead to frustration. Forecasts change by the week.

Sometimes two analysts give conflicting views in the same report They hedge more and more

In one well-known

economic analysis by a university group a former Presidential adviser foresees a steady upturn while a few pages later a consumer forecaster worries about possibilities of a qukfc return to recession.

The real truth, meanwhile, resides with the quiet consumer, with the su^iiclous. cautious consumer you might add