A Different Prospect At KC

SEEING IF IT ALL ADDS UP!

Now about that Kansas City convention In August:

Its going to be some different from the bash in Madison Square Garden.

Those staid Repubiicans have a showpiece coming that appears to have all the suspense and tensions of a time bomb. You can hear It ticking.

You'll remember there was no question about who would win the Democratic nomination; and the party's platform was predetermined to be a structure built to suit that man from Plains, Georgia; Jimmy something-or-other. (Did somebody say he was a household word?)

Something else. In New York City the password was Unity. Delegates and nondelegates lived and breathed it. There was also the Impression that demonstrators were abiding by 'The Word.

As of today, one gets the feeling there will be a divisive struggle between two strong candidates for nomination; and, reflecting that contest, a quarrr!me difference of opinion on the party

THIS AFTERNOON

platform that Republicans shun when necessity dictates.

Another factor is present (or absent, depending on ones point of view): there will be no All-Star game to conflict with the business at hand. A lot of loyal Democrats called time-out during their convention to keep up with the contest being played out on another field.

It all depends on where you're sitting, but we get the impression too, there is a gradually growing friction between the Ronald Reagan and Gerald Ford camps; a something-more than attitudes toward governmental policies. If this is true, the convening of The Grand Old Party may well portend the kind of blood-letting affair were much more accustomed to seeing when good Democrats get together.

Kansas City could prove to be a most satisfying affair. Two conventions in a row, filled with harmony, love, sweetness and light, would be bard to swallow.

Pricing Plan Has Promise

BrBOXNOBUTT

RALEIGH-"The electric power compsDiet have overbuilt, and the public la paying (or It ."

With that blunt atatement. State Senator McNeill Smith. D-Guilford, opened a recent aeaalon of Cltliena Utility Day in Raleigh.

Overbuilding, Smith cbargea. ii the cause of at least half of the tremendoui price increase for electricity in North Carolina. The average price per kilowatt hour was gl.M to 170; It was U-ti last yeardoubled in Juit four years.

Just what la overbuilding? And what la meant by "peakload pricing"?

The Federal Energy Ad-rolnlatratlon has put up $IM,000 for "tlme-of-day" price studies in North Carolina, indicating the story interest such an approach generates.

TwoStudicB

Carolina Power and Light Company will carry out a project with 300 residential

THE INSIDE REPORT

customers at a coat of 1533,000; while the Blue Ridge Electric Membership Corporation will use $303,000 to study 150 customers.

What is so interesting shout this technique that around $2,000 per house will be spent just to study the matter over the next two years?

The heart of it Is this: electricity can't be stored (or future use: It must be made "fresh." This means that when the air conditioners all come on during a hot summer afternoon at about the same time dads are getting home from work and taking a shower while the kids watch TV and mom flicks on the stove, washer and dryerthe electricity has to be at hand.

Thus, massive generators have been sitting idle In big power plants just waiting on the man to flip the switch to meet that "peak period demand.

So troublesome la that situation that Duke Power Co. Is actually selling only 33 per cent of the electricity It is built to generate: Vepco is

selling about 3$ per cent. In both instances, present sales compared to capacity represent sharp declines over a aix-year period from selling up to 62 per cent of the capacity in 1(70.

The simple fact is that the market price you pay for electricity covers all that extra generating capacity which you never use-r seldom useand which you could get for less if you cut down on use during particular times.

Bargains?

Electricity, Senator Smith says, is about the only thing we pay for whether we use it or not. If we could, by changing the laws and the rates, enable customers to know where and when the bargains are in buying electricity, we could use, and the companies could sell, twice as much electricity without building another generating plant and without raising any rates."

In the experiment, customers will be testing systems for determining

peak-load demands, and consumer attitudes toward that.

Much of the expense In testing such a system comes from the sophiaticated equipment required to monitor actual times during which power is used so that bills can reflect a higher rate during peak-load times: lower rates for off-tlmes.

Several alternatives are available: simple recording devices which record usage by times: devices which are wired back to the power company offices so that usage can be monitored from central controls rather than at individual household meters; devices which sound or flash a signal to the consumer when peak demand times arrive: and devices which actually interrupt electric service during certain times so that heavy power users such as water heaters or clothes dryers could not operate until later.

The two-year study is sponsored by the State Utilities Commission.

It's All Up To John Sears

By ROWLAND EVANS and ROBERT NOVAK

WASHINGTON - The long, exhausting struggle for the Republicsn presidential nomination now comes down to one simple question: where are those covert Reagan delegates that Reagan campaign manager John Sears claims are squirreled away in Ford delegations from the Northeast?

If they really exist, then the nomination will be fought out to the last delegate at Kansas City beginning Aug. 16. If not. President Ford's nomination will be wrapped up shortly, and he will have no greater convention worries than writing a platform and picking a Vice President. Whats more, the Northeastern coup must be pulled off next week at the latest to have any effect.

That Ronald Reagan's powerful challenge of an incumbent President depends on Sears's backroom talents la galling to his critics within the Reagan organization. They (eel Sears relied too much on his superb contacts within the regular Republican hierarchy (built up aa a 1(63 Nixon delegate hunter) Instead of straightforward challenges for delegates. Now the future

of the Republican party depends on whether Sears or his critics were right.

In support of the critics, Reagan forces have pulled off their most impreasive delegate grabs California, Texas, Missouri and Indiana among others where they have attacked decrepit Republican organizations, which were easily toppled. By contrast, the Reagn share has been meager in states Pennsylvanis, New York, New Jersey, Connecticut and, most recently snd disastrously. North Dakota -where the bag of delegates depended on backroom negotiations with party leaders. Had Reagan relied mainly on such maneuvers, Mr. Ford would have pinned down the nomination months ago.

Sears correctly replies to such charges by saying Reagan's csmpaign had

neither the money nor

manpower to confront the President In every state. Yet, even underfinanced and

undermanned efforts in the big Northeastern primaries might have switched a grand total of 30 delegates, enough to have clinched the

nomination for Reagan.

Instead, our count of committed and leaning

The Daily Reflector

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delegates as of July shows 1,123 for Mr. Ford (1,130 needed), 1,030 (or Reagan and 56 uncommitted. That amounts to the Presidents certain nomination unless dramatic gains (or Reagan Intervene.

Mere Reagan gains among those 56 uncommitted delegates even with Tuesday's endorsement by prestigious Sen. Strom Thurmond of South Carolina, long awaited by Reagan will not be enough. What Reagan must have are actual Ford-to-Reagan delegate switches to drive the President's total down from the 1,130 goal.

That Is precisely what Sears has been promising (or weeks from the big Northeastern delegations. Republican leaders in those states and Ford chieftains In Washington deny these claims as preposterous. Sears refuses to Identify these covert Reaganlte delegates on grounds that premature disclosure would soften the impact. Indeed, not even middle-level operativea in the Reagan campaign have been filled in.

But time Is running against Sears. The longer he tskes to announce his coup, the greater is Mr. Fords magnetic attraction on uncommitted delegates.

Yet, such attraction is not irresistible, as was shown this week in the case of William Swain Lee, Republican county chairman of Sussex County, Del. The Ford campaign had always believed that Lee, a conservative but practical

politician, would jump on the winner's bandwagon. But when a Ford operative Monday told Lee he had better endorse the Presldeot now because the nomination was just about wrapped up, he replied: well, that's the time I had better help Reagan. His Reagan endorsement was announced later that day.

But the Bill Leea seem a tiny fraction in the Republican convention. Of the 16 previously uncommitted delegates announced (or Mr. Ford Tuesday, four of the five from Virginia were unexpected, a shock to Reagan delegate counters and a signal of bandwagon psychology on the rise.

Ford agents are using that psychology in a high-pressure campaign to sew up a majority of the Mlssluippi delegation, once thought to be safely for Reagan. A majority would deliver all 30 delegates votes to Mr. Ford under the unit rule. Even If this cannot be absolutely assured, the President has privately agreed to fly to Jackson, Miss., Friday. July 30, to bid personally for the 30 votes that would clinch hit nomination.

The secret plsns of John Sears t re the only remaining obstacle to the Ford bandwagon. Whether they jell within the next week will not only cast the final judgment on hit grand strategy: It will determine the Republican nominee for Preaident.

Strength For Today

WATCH THE CORNERS

On a certain college campus the students were cutting comers at the intersection of two walks and were thereby preventing the growing of grata In the area. Pleat and notices were of no avail. At last the superintendent of grounds put four large thoraberry bushes al the four comer of the intersection. After that, students kept on the walks and grass finally covered the bare placet.

God will not allow us to cut gomera forever. At last he

will put a thomberry bush at the point at which we leave the path of rectitude and force us to follow it again.

All of ut are cutting comers in one way or another. And we are suffering (or it much more than the students who walk across the grasa at intersectiona If we will not learn by counsel. God will teach ut by discipline. If we will not learn through our minds, eventually we mutt learn through our skins. So let ut not force God to retort to the thomberry bush.

by lUsha Dotiglau

By ART BUCHWALD

Apparently We Blew It

WASHINGTON - No matter what the Viking pictures show us concerning the planet Mars, there are still a number of people who believe that there are life-tise Martians living there.

One of them is my friend Kampelman who reads every Kicnce fiction book he can get his hands on.

We were watching television together as Viking was transmitting the photos on the screen.

"They landed in the wrong placel" Kampelman shouted.

"What do you mean the wrong place?"

They landed on the Chryse Planta. No one goes there in the summertime."

"Why not?" 1 asked.

It's too hot. It's worse than Palm Springs at this time of year."

"Why didnt someone tell them?"

"Who knows what those crazy scientists are thinking. All they were interested In was finding a smooth place to set down the camera. They didnt cart what kind of pictures they would get out of It."

Where should they have landed If they wanted to tee Martians?

"Coney Chryse. That's where everyone goes on vacation. They not only have a nice beach but a fantastic amusement park.

But there is no large body

of water on Mars. Why would they go to the beach? "

"There used to be water there, Ulllons of years ago, and when it dried up they decided to keep the beach up. They had a roller coaster there, and they didnt want to move It,

"I think you're putting me on.

ART

Public Forum

Letters submiUed for Public Forum must be limited to 300 words.

To the editor;

Recent advertising of Carolina Telephone has threatened a 80% telephone rate increase locally if the "Consumer Com-munlcstlont Reform Act of 1(76" is not enacted. CTAT is concerned about competition coming to the formerly monopolistic telephone industry, forcing rates up.

What has not been reported, however, is that a significant body of opinion in the telecommunications field believe that competition would have no adverse affect upon consumer telephone rates.

Recently, the Bell Telephone Syatem and the U.S. Independent Telephone Association (of which Carolina Telephone is a member) sponsored a debate between experts from telephone industry as well as the Federal Communications Commission and others in telecommunicatlona. The trade press reports that this group did not conclude that the cost of telephone service would increase. To the contrary, telephone company representatives were unable to provide a detailed basis for the rate increase assumption.

A representstive of the Federal Communications Commission. federal overseer of telephone matters, said backers of (he reform act have not shown this has an economic impact on any body's phone bill."

Position papers have been issued by the Federal Communications Commission and the U.S. Office of Telecommunications Policy regarding the legislation. The FCC said "Enactment of the proposed legislation would disserve the public Interest by limiting important consumer rights." OTP felt that the proposed legislation would virtually complete monopolization of and industry in which historical, technilogical, and economic considerations suggest . . .free market forces are quite capable of serving the best interest of the public."

The CTItT advertisement was simplistic and highly biased treatment of a complex matter. Telephone consumers should look carefully before supporting legislation possibly detrimental of their interest.

Lawrence Behr Greenville

BUCHWALD

I am not, Kampelman said indignantly. Look, suppose the Martians sent a camera to earth. They would look down and find the smoothest area to land it on. That would be the Sahara Desert. Do you think theyd learn anything about us by taking plcturea of the Sahara?

"But we surveyed the planet and we didn't see any buildings."

"They live in rocks," Kampelman said. "Everyone knows that."

"I didn't know it.

"Sure, they have the equivalent of a Housing and Urban Development Department there, just like we have in the states. But like HUD, they're to snarled up in red tape they've never gotten anything built."

"If they don't have any rain, maybe they don't need houses, "I suggested.

"Actually, their rocks are very nice. Theyre warm at night and cool in the daytime. They also make great tax shelters."

"Kampelman, you teem to know more about Mars than anybody."

It'a common sense. If you lived on Mart you certainly wouldn't pitch a tent on some barren spot where nothing was happening. Viking isn't going to tell us anything about the planet that we dont know alreaady."

"But suppose they find micro-organisms or germs where Viking landed?" I at id.

(Cootinued on page 5)

Dreary

Period

Behind

By NOEL YANCEY Assoeiatad Prtss Writer

RALEIGH (AP) - Ust week. Revenue Secretary J. Howard Coble had good newt (or Tar Heel citisena. He taid that instead of a deficit which tome observers bad expected during the dreary days laM winter. North Candinas state government had wound up the fiscal year June 30 with a credit balance.

Making what be called a "ballpark estimate, Coble said the credit balance would amount to more than $30 million. He uid that with reversionsfunds appropriated but unspentthe state's general fund would have enough to offset a $24jnllUon ahortfall and still prodRe a credit balance of more than $30 million.

Lloyd OCarroll, a fiscal analyst for the General Assembly's FUcal Research DivlMoo, uid that, indeed the ertdlt balance would be more than $30 million, a whole lot more.

"Its more like $50 million. O'CarroU uid.

O'CarroU uid that gsan! fund tax diectloos, wh^ amounted to $1,571.3 million (or the 1(75-76 fiscal year, amounted to $21.7 mlllioo more than the 1(76 legislature estimated when it approved the state's budget (or l(76-n.

O'CarroU uid iat reversloos are now estimated at about $70 mUlioo. That's the amount of unspent appropriations the state bad as the result (rf the governor ordering a freeze on state jobs last spring and spending cuts that the governor and advisory budget commission ordered plus normal reversions.

"Auuming we get the $70 mUlioo in revertios the budget office uid we should get, it looks like a credit balance of about $51.7 mUlk." O'CarroU uid.

He noted that when It planned the budget the legislature estimated the credit balance at the start of the l(76-n fiscal year would be about $30.3 miUion to that if the $51.7 mU-Uon credit balance is realized, the general fund wUI wind up the year with a turplut of about $21.4 mUllon.

"It's not a whole lot of money when you consider you're dealing with a budget of $1.5 bU-Uon, O'CarroU commented.

That's money avaUable to be appropriated by the next General Asumbly. auuming the revenue forecasts for 1(76-77 is accurate.

In planning the budget, the legislature estimated that revenue collections for this fUcal year would exceed actual collections for 1(75-76 by 11.3 per cent.

Coble's report showed that general fund collections in June ran ahead of June a year ago by $21 mUUon, or 23.26 per cent.

But the situation is not as rosy as those figures would indicate. O'CarroU uid that $13 mfllion of the $21 mUUon Increase came when the Department of Revenue handled state Income tax refunds faster than it did last year.

Cobe noted that sales tax collection, in June showed an Increase of about 12 per cent. This came after It had shown increases of about 20 per cent during the previous three months. Coble took this as an "Indicatkm that retail ules In the state may be levelUng off. O'CarroU uid that actually retaU tales In both the state and nation had slackened off since peaking in March.

"That's normal at this point in a recovery," O'carroU uid. "Since incomes are stlU rising (Continued OS) paga 5)

Concern Over 3rid Worltd Debts

ByJOHNCUNNirr AP Busincu Analyst NEW YORK (AP)-Atthe end of 1(75 the six largest United States banks had nearly $12 billion In loans outstanding to 15 less developed nations which were not guaranteed by American companies or government agencies.

Considerably more in-debtedneu wat run up by these economically troubled nations, but a good part of that at least it guaranteed by governmental agencies, however insecure they too might be.

Some of these nations, as you are well aware, are undergoing serious economic dlfflciUtlea, and tome have political problems st well. In some, a poor crop or commodity price fluctuations could be deadly.

Atsesting the situation, a ,good many observers have

been outspoken in their view that mauive defaults could ensue, unbalancing not only the economy of the United States but much of the industrialized world.

Nonsense, says one of those deeply involved, the First National City Bank. It maintaina that while there might be tome pains and even defaults, the in-temationtl financial markets have a proven capacity to absorb shocks."

Large aa It might teem, the bank said, that $12 billion owed to just six large banks accounted for about 5 per cent of their combined assets at the end of 1(75.

It states that a survey of the 21 largest U S. banks yielded similar results, specifically that such loans as a percentage of combined assets were about 4.3 per cent

So. it argues, Ijfhe port]^

folios of U.S. banks are sufficiently diversified to withstand even a mauive rescheduling of LDC leu developed country debt, which is unlikely to occur.

The bank reasons also that governments today aren't likely to permit aevere and prolonged contractlona of their money stock

Governmenta, it says, unlike private butlneu en-terprisea, are not dissolved when their financial obligationa exceed their financial retourcea. "So long at governments utilise their sovereign power to levy taxes, debts csn be aervieed and retired."

Even those loans that are extended to private entltiea are often guaranteed by national governments, parent companies In the more developed countries and Intematiooai agenclet.

Whiie financialiy strapped, tome leu developed countries have undrawn credit at the International Monetary Fund and. uyt First City, "it'a likely that new IMF credits would be extended In the event of difficulties.

Whether Firat Clty't reasoniog will calm the (ears is still debatable, although the title of Its ratiooale is "Third World debt potting the squelch on the Ksretalk.

Laymen without any special knowledge of banking or intematiooai affairt are likely to wonder if the situation it aa secure aa claimed, particularly In view of the Third World's inexperience and tiowneu In doting the gap between themselves and the highly advanced economiea of Europe. Japan and North America.