4-Tli Daily HrfWctw. Grivlllf. VC-Thurtday. Jaly I. It7lVery Good Home For Old Salts

We hope the shock of moving from Staten Island in New York to Sealevel, N.C. won't be too much for the aged sailors who occupy Sailor's Snug Harbor,

Once they get settled, however, we think the old sailors will find the North Carolina coastal area quite enticing.

Polluted ais was one of the complaints about Staten Island, but we believe the 81 seamen will find the air at Sealevel crisp and clear as was the ocean air when they-once sailed around the world.

North Carolina ii fighting pollution of its coastal waters with everything it can. We all hope that the efforts in our state are early and effective enough so that our coast wont suffer some of the problems that more populated areas already have.

At any rate we think the sailors will find the waters off Sealevel as clear and refreshing as any they might have found anywhere in their travels.

Of course, there wont be millions of people around as there were when the seamen were on Staten Island, but then we have an idea that the sailors were accustomed to the lonlier life of the sea and the slower pace of Sealevel might be more suitable to them.

Medical care should be good because of the Duke University Medical Center's acute care Sealevel hospital.

For an aging sailor Sealevel can be a very good home and we think these new residents will come to love Ncrth Carolinas coastal areas, just as we who have lived near them many years do.Fund-Raising For Carter Is Now Easier

A fund raising dinner for Jimmy Carter in Asheville last weejc had its promoters smiling.

The $1,000 8 plate dinner brought in $232,000 in cash, it was announced. Wallace Hyde, chairman of the dinner said he thought it was the largest of anyTHIS AFTERNOON

campaign so far.

Carter has the Democratic presidential nomination virtually assured and it is obvious that fund raising becomes easier under those circumstances.

Stakes In Medicaid Fight

By BILI.N0BUTT RALEIGH-There' more a( ilake in the bilUe over Medicaid payments than what will happen to the North Carolina contract Right now, moat attention Is turned to weaknesses in the government-private enterprise contract, who's responsible, and how to fix It That is important, naturally But the real struggle is over future billions of dollarsnot the piddling couple of million being argued about in this state. Those billions are the reason a private firm rushed to sign a contract to handle the state's payments to welfare-eligible Medicaid recipients, and there was even competition for that business

Foot In Door Private enterprise was anxious to get a foot In the door for such Medicaid contracts In other states, but even more importantly to sUike an early claim to the ability of private Insurance firms to manage the overwhelming work (and dollars) when National Health Insurance comes into being The t200 mllllon-per-yearTHE INSIDE REPORT

contract which Health Applications System signed with North Carolina is In truth a testing ground for what most experts consider the certainty that National Health Insurance is on Its way; if not next yeaf, then the next, or one year soon The administration of Republican Gov James E Holshouser is anxious to demonstrate that private enterprise can do the Job. So ts Health Applications Systems, and other private firms. But amidst much confusion and a contract measuring a foot thick, there was room for a lot of slips Then entered liberal interests from the federal level; both in Congress and in the U. S. Department of Health. Education, and Welfare Those interests have a stake In this: the

bureaucrats because their domains would be sharply reduced should private enterprise prove successful; the liberal Congressmen because success would prove that big government is not always the best solution to problems Probe Results In a short time, the In-depth

probe of the North Carolina contract carried out at Congressional insistence by the watchdog General Accounting Office should be made public. It will undoubtedly portray a lot of problems with the present contract, as already demonstrated by the hassle taking place almost dally In Gov, Holshouser's officer between state officials and the private firm

It is clear that it would be to the benefit of the opposing sides to reach a friendly and workable short-term solution A long-range solutidh will prove neither simple nor quickly available

With North Carolina as the proving grounds in the great battle of (Jovernment-Versus Private Enterprise, then, two knotty problems have been unveiled

1 There Is no control over eligibility. If a person meets whatever criteria are established, he must be paid. Thus, the rolls continue to expand.

2 There Is no control over the major expense item -money paid to health care

providers for services rendered. The guideline Is that charges must be usual and customary-and charges keep going up sharply.

When Health Applications .System said it could do the Job better than government (and cheaper) it meant it could cut administrative over head, hold down payrolls by hiring fewer people, use computers to weed out cheaters and double payments. All that done, the amount has proved terribly insignificant in the face of rising numbers of eligibles; and escalating payments to hospitals, doctors and nur sing homes Can government let private enterprise define eligibility; set rates for health care providers; limit payments to those eligible for various reasons? The answer obviously Is no But government can establiah those limits Itself, and that may be the direction in which things will head in coming years, especially as National Health Insurance broadens the eligibles to include every man, woman, and child

That Mississippi Windfall

By ROWLAND EVANS and ROBERT NOVAK

JACKSON, Miss - While Ronald Reagan was dispensing the conservative gospel to Mississippi's national convention delegates here last week, this state's informal unit rule was In Its death throes a fatality with possible consequences for Reagan ranging from merely damaging to absolutely catastrophic.

Reagan's national strateglsu had hoped for a nujorlty within Miuisalppi's split delegation to deliver a 1,130 votes lor Reagan at the convention under Ihe unit rule But alter last week's developments, at least four or live delegates will break the rule to vole for President Ford and thereby deprive Reagan of a convention-week psychological boost. More startling the Ford total could easily reach eight or coiv ceivably even 10 or 12,

perhaps providing the margin of victory in a closely contested convention.

Ihis raises the staggering prospect of Mr. Ford being saved by a breakthrough in what was once considered the heart of Reagan country. Even Ford support,ers here privately conceile Reagan is vastly more popular at the Mississippi grass roots and stands a much better chance against Jimmy Carter. In a role-reversal, Reagan's delegate problems here stem from the bad luck and miscalculations that plague the Ford campaign elsewhere.

Mississippi's source of trouble for Reagan is that Reaganites Clarke Reed and W D, (Billy) Mounger, longtime state chairman and state finance chairman, respectively, are not absolute leaders of the Mississippi Republican party today as they were a decade ago.

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With electoral aucceas, Ihe party has developed a fairly liberal wing-currently pro-Ford-led by Gil Carmichael, nearly elected governor last year, and2ft-yearold Jackson city commissioner Doug Shanks

Had Reed and Mounger choae to fight it out they surely could have elected a unanimous Reagan delegation. Instead, they avoided bloodshed and opted early this year for a har mony delegation, where hard Reagan strength barely exceeds 50 per cent. That decision was based partly on the mistaken belief that the presidential nomination would be decided in the primaries. But Reed and Mounger felt secure in the unit rule, first adopted here In I960 and passed again, 3 to 1, by this year's state convention in April. Why not magnanimously allow Ford backers on the delegation when their vote would not count anyway?

Reagan leaders were still hoping for 30 to 0. untii last week when Commissioner Shanks, chairman of the state Ford committee, . declared publicly he would bread the unit rule on Ihe floor at Kansas City and record his

vole for Gerald R. Ford. Although Reagan forces still believe Shanks is bluffing and will not risk his political career in Mississippi, the signs are unmistakable that he has burned his bridges

What's more, he has some company. Although Carmichael had promised to honor the unit rule. Shanks convinced him that this was a dead issue once one delegate broke it So endangering dangering his futtu'e ambitions for governor or Senator, Carmichael will Join the rule-breakers So will the sute's two black delegates Gloria Beal and Bill Dease.

That total of four could climb to five if Miki Cassidy, a pretty young housewife from the Mississippi Delta town of Marks and a staunch supporter of Carmichael, feels .Mr Ford needs her vote Three others delegates, now uncommitted, told us they may decide to back Mr Ford and, il they do also may break the now-shattered unit rule. There is enough doubt about four other delegates to raise the Ford total to a maximum of 12.

Thus, the Reagan campaign can no longer think about a Misaissippi sweep but 'Conllnurd on page .V)

Strength For Today

IIAPPINE.S.SSPRU8N THE.SEEKEIR The Roman emperor, Tiberius came aa near to ruling the whole civillted world as any man who ever lived. At the height of his power he betook himself to one of the most beautiful spots of the Medltetranean. and in a softly delicious climate built a great castle and plunged headlong into every form of voluptuous luxury. Someone has written of him thsi he tried Ihe the experiment of achieving maxhnum happiness by pressing the world's moat absolute suthorily and the

world's guiltiest indulgences into the service of a completely selfish life.

Yet, when he had everything the heart could desire. he wrote in desperation to the Roman Senate, "What to write to you, or how to write to you. may all the dogs and goddesses destroy me worse than I feel they are destroying me if I know."

Happiness is never achieved if we seek after il, and the more gross the indulgence, the less satisfaction does it yield

H\ Elisha Duugltss

(III. llijl a 1 iiiigrr-'iiMii I lliiiik thal

sin 111- i-jll<-<l jn 'liiruiiilH-iil

By JAMES J. KILPATRICK

Hot Time In High Court

The Supreme Court's 5-4 decision last week in the states' rights case left Mr Justice Brennan "Incredulous" He could not believe what his erring brothers had done. By contrast. the decision left some of the rest of us delighted.

The majority ringlngly affirmed Ihe doctrine that state sovereignty survives Judicially speaking, to be sure, the ring was a somewhat hollow ring, for a

5-4 decision lies on the law books like Ice on summer seas. This rulingmay not last past the second year of a Carter administration.

But while Ihe opinion prevails, it is good news for all us old-fashioned fellows who cling to the Tenth Amendment It is Immensely encouraging to those who believe Ihe states never delegsted to Congress a power to control their own most intimate affairs The

opinion suited me fine.

Speaking through Mr Justice Rehnqulsl, Ihe majority ruled that Congress may not impose upon Ihe state governments, as public employers, the minimum wage and maximum hour laws that apply to private employers. The states and localities, in brief, cannot be compelled by federal law to pay overtime after 40 hours to a teacher or a trooper; they cannot be compelled to pay minimum wages to the Janitor who sweepa a Capitol's floors

The majoritys reasoning is that the "power to regulate commerce," which Ihe states delegated to Congress under Ihe Constitution, is not an unlimited power. In the name of regulating commerce, said Ihe majority. Congress cannot take'from Ihe stales the power to make "fundamental employment decisions.

Other Editors Say Johnny Mercer

(Chapel Hill Newspaper)

In the late ItSO's a very famous entertainer returned to his home town of Savannah, Ga. He did not go back to receive a special honor, to help in a local celebration or to visit his relatives and friends. Rather his mission was one of a very personal nature.

The mans father had been a very successful businessman in Savannah until the great depression at which time he lost everything. His obligations were in the neighborhood of tlSO.000.00 which was a ton of money at that time, and the son was returning home to pay off those debts. To the best of his knowledge he paid off every debt his father owed and returned to New York and Hollywood to take his place among the famous and near famous. The fellow's name was Johnny Mercer, and his contribution to the popular American music scene will last forever.

Who will ever forget such songs as Laura." "Blues in the Nighl," "Atchison, Topeka and Santa Fe, "CooL CooL Cool of Ihe Evening" "Goodie Goodie," "That Old Magic," "Moon River, and "Days of Wine and Roses. " And of course you will remember "Hard Hearted Hannah, the Vamp from Savannah." Johnny Mercer was one of those who did smell the 'wine and roses'; yel during the 66 yean of his life he never forgot the humanness and frailty of man. His words, for the most part, were only an expression of his basic philogophy. For example, he told frienda that he wrote, "You've Got to Accentuate the Positive. Eliminate the Negative, Latch on to the Affirmative. Don't Mess With Mr. In-Between for the psychiatrist What he was trying to get the psychiatrist to tell him in several sesaions. he told the psychiatrist in four lines.

Johnny Mercer was genius with lyrics, yet after those lyrics will have faded into dusty memories, we will sbll remember that visit he made to Savannah, Ga. In the late 30's to repay some surpnied friends of his father

This holding did not suit Brennan at all He wrote a .sizzling dissent in which White and Marshall Joined Mr. Justice Stevens added a peppery dissent of his own It was like old times on the high court Hugo Black and Felix Frankfurter must have been chortling in their graves Brennan began mildly, by saying he found the decision "surprising. Then he

warmed up. His brothers had repudiated principles that had been settled since the time of John Marshall. They had engaged in "patent usurpation" of Ihe legislative powers of Congress They had manufactured an "ab

straction without substance." Neither the words of the Constitution nor any Judicial precedent could support their cavalier action The more Brennan thought about It. the madder he got Parts of the majority opinion were absurd" His brothers had engaged in mere

"sophistry." They had exercised "raw judicial power." They had dealt a "catastrophic Judicial body blow to Congress' power under the Commerce Clause" Brennan saw "an ominous porleni of disruption of our constitutional structure implicit in today's mischievous decision.

"I cannot recall another instance in the Court's history, " said the Infuriated Brennan, when Ihe reasoning of .so many decisions covering to long a span of time has been discarded roughshod." The opinion, he said, reflected "nothing but displeasure with a congressional Judgment " Hi,s brothers, he reminded Ihem. were not at liberty to erect a mirror of their own conception ol a desirable governmental structure" They had no right to trump up a transpareni cover lor invalidating a'congressional Judgment with which they disagree "

This Is heady stuff What Brennan was revealing, as he Hung moderation to the winds, was Ihe essential phoniness of a great American myth The myth tells us lhal "ours is a governmenl not of men, bul iConllnued on page M

Tourist

Frills

Added

By WERNER VOLLMANN Associated Press Writer

VIENNA (AP) - Fiddling gypsies, classical playa performed In the moat of an old fortress, and rooms in an Itth century castle have been added as attractions in Auatria's drive for more foreign tourists.

A major effort is being made in Austria's easternmost Bur-genland province, which so far has not had an equal share of the tourist boom that has especially benefited such (R-ovinces as Tyrol and -Salzburg.

In the Burgenland, they even leach visitors to handle, serve and drink wine There are "wine seminars" in Ihe scenic village of Don-nerskirchen near Lake NeusiedI, and elsewhere. The courses are reported to be a great hit They teach what wines go with what food, how to differentiate among wine tastes, and how to establish your own wine cellar

IConllnued on page 5)40 Years Ago Today

July 1.1976

One of the largest votes ever cast in a runoff primary is expected Saturday as runoffs are held between the Democratic contenders for governor, lieutenant governor and secretary of state.

Dr. Ralph W. McDonald and Clyde R. Hoey will run for their parlys gubernatorial nominatioa W. P. Horton and PauiO. Grady will compete for the lieutenant governor nomination, and Thad Eure and Stacey Wade will vie for secretary of stale.

Many observers believe that 400, 000 voles will be cast in this primary due in part to the high level of competftion between Hoey and McDonald

The Greenies boosted their lead in the Coastal Ptaln League by defeating Snow Hill 7-6 in a home game yesterday

by Barbara Matthews

Rising Doubts Over Govm't Data

NEW YORK (APi-Doubts about the accuracy of official government economic indicators exists among what appears to be a growing number of concerned Americana, including economists and even governmenl officials.

Revisions, changes In concepts. weighting and seasonal adjusting help raise the doubts, as does what would seem to be an element of human expectation In interpreting or announcing the figures In January, for example, just days prior to the Gross National product report for the final quarter of 1F75. a governmenl official indicated the rate might be as high as 7 per cent, in marked contrast to some private forecasts of a 4 to 5 per cent increase The actual figure turned out to be 5 4 per cent-strong, but not nearly so strong as that projerted by Ihe olficial. alluded lo in some other

statements by officials, and circulated widely by the media.

The inflation rate, as measured by the GNP deflator, was reported at 6.5 per cent, which was called an im provement over the revised 7 1 per cent rate for the previous quarter originally announced at 5 per cent.

But even as the encouraging figures for the third-quarter GNP were revised earlier, so yer* the fourth-quarter figures deslined for the same late this February GNP growth was lowered to 4,9 per cent; Ihe inflation rate was upped lo 6.8 per cent.

Revisions continue in Ihe name of greater accuracy. Some advances may appear even larger beeause com panson figures for the preceding periods were simultaneously revised downward, often with very little notice made

In Mav of Itiis year Ihe

Commerce Department announced that April retail tales were almost unchanged from March. But lhal statement tjould be made only after a downward revision of the March gain, from 2.8 per cent lo 1 3 per cent.

The potential impact of such revisions, unintentional though II might be, could be lo produce the impreHion of a series of vigorous advances when in fact the advances were moderate The search lor refinements, which con sequently results in revisions, alinosi never ends The well known Index of Leading Indlcatiirs, a barometer of things to come, is revised each month thal is, even though it is a forecast tool, the index for each month is revised each month, month after month To illustrate, the index lor June 1975 was announced in July 1975 as having advanced 2 10 per cent 'niereafler il

was revised during 1975 to read 3.22 per cent, 3.30 per cent. 3 52 per cent and 3.60 per cent.

The highest figure occurred in both November and Derember and may have been, as were several figures in that period, overstated. In Jauary 1976 that June 1975 figure was lowered to3,46 per cent and in February to 3.33.

It isn't only the revitiona that dislurb critics, whose rage includes some states, the City of St. Louis, the American Hospital Aaaociaiion, the AFL-CIO, statisticians and laymen too Some numbers may be misleading to begin with

Prof. Richard Ruggles, an economist at Yale Univer sity. il examining the scope and quality of the Wholesale Price Index, under a grant from Ihe Council on Wage and Price Stability, with Ihe cooperation of the Bureau of labor Statistics It onllnurd n page .5)