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At The Helm Of The U.S.S. Transition Food Stocks For Defensive Growth Capitalist Holiday that our readers will be cautious in The first Presidential Proclama- supporting any such move. For exam- tion of a day of Thanksgiving in the pie. the latest and most complete fig- United States was made by George Washington, in 1789. The day was set aside for prayers and thanks for the new Constitution. Several states continued the practice, each designat ing its own day. Abraham Lincoln was the first President to appoint an official Thanksgiving Day, to be celebrated each year on the last Thursday of No vember. Lincoln issued the Proclama tion on October 3, 1863. Since that time the Nation has joined, on one day, in saying its prayers of Thanks giving, and in remembrance of the small band of religious fugitives who landed, accidentally, at Plymouth Rock. A fact too often forgotten con cerning the Pilgrim Fathers is their trial—and abandonment—of the com ures we have seen show the total vote in 6 states as follows: Alaska 48,248 Delaware 211,413 Idaho .... 279,492 Montana 173,208 Vermont .... 159,661 Wyoming 103,767 The grand total of all votes for all presidential candidates in those 6 states is 975,744. And friends, there are more people than that on welfare in New York City, alone. It comes to mind also that in the District of Columbia the vote for Humphrey was something like 82 per cent, as compared with the almost even split in the nation as a whole Federal Government employees had a clear preference. Further, we have seen a post-elec- munal system of joint ownership and ^ on 8urve y voters in two dis- community labor in the colony. A pri- tricts in a primary election a couple of mary reason for their early hardships campaigns back, which revealed that on the North American continent was the effort to form a Socialist society. At first, the young colony seemed to be working, but following that first ‘Thanksgiving,” the colony went into a tailspin. Many found that under the the Social Security vote was literally 100 percent for a candidate who had established a record of proposing or supporting every increase in Social Security benefits to come before the Congress. The Social Security voters system all shared equally so that no represented more than 20 percent of a few began to absent themselves from t ^ e vote8 caat the fields. Naturally they feigned ill- nes and naturally the number of ab sentees increased. The crops failed, and the “starv ing time” soon followed. Things be- Ours is, after all, a republic, and not a mobocracy. One suggested solu tion is to let a majority of the States —26 States — decide the Presidential choice. But let none fail to realize that came so bad in 1623, just three years election by a simple majority may dis- after they had landed, that the best enfranchise millions of taxpayers, par- they could provide for new arrivals ticularly in small-population areas. was a freshly-caught fish, a lobster, and a cup of water. It was a disas- trous come-down after the bountiful feast of 1621, when they had hosted Chief Massasoit and 90 of his braves. And so it was that in that same year of 1623, Governor William Brad ford, at the urging of the governing council, established a free enterprise system, and the Plymouth Plantation began to grow and prosper. The Pilgrims had learned their les son the hard way. But, from the ag ony of “the starving time” there has grown the most productive and most wealthy civilization that the world has ever known. In Thanksgiving, it has shared the product of its hard work with virtually every nation in the world. Caution On Election Reform The cry for reform of our eletion process is at high pitch. The liberal press has harped on the subject with out pausing for breath, since late morning of November 6. And it was amusing to watch the undisguised dis may of one of the network TV com mentators who campaigned on-cam era for abandonement of the electoral college after every paid commercial 1 during election coverage, or so it seemed. It has already been announced that hearings will be held in both the House and Senate with a view to chucking the electoral college and instituting a direct, majority vote sytsem. We hope WELLESLEY HILLS, MASS.,- Expendiutres for food in the U.S. this year will total $101 billion, — up 6% over 1967. Of course half of this increase will be due to higher prices, with the total amount of food purchased rising but moderately. The balance of the gain in food spending will come from consumer preference for more expensive foods or for those with more marketing ser vices added. STEADY GROWTH — FAVORABLE COST FACTORS There are several factors which recommend the food industry to prospective investors. For one thing, the industry’s growth has been steadier than most. This re flects population and income gains as well as changing patterns of living which have sparked the rapid and wide acceptance of the so-called convenience foods. A second plus for the food companies generally is their low price earnings ratios. In most in stances, these ratios are attract ively low thus leaving plenty of room for growth. Still another favorable factor is the reason able labor cost Except in bak ing, salaries and wages paid ac count for a smaller percentage of net sales than in industries such as building, chemicals, e- lectrical products, and industrial machinery. BROAD DIVERSIFICATION In recent years, food manu facturers and processors have made great strides in offsetting the adverse effects of highly cyclical markets. In some cases, this has been achieved through vertical integration. More often, it has been accomplished through a steady and generally orderly trend toward diversification. Baking companies, whose pro fit margins have been among the lowest in the industry, are mov ing with increasing rapidity into convenience foods and/or insti tutional food services. Mean while, the dairy companies and the makers of processed foods are seeking broader markets for their products by expanding into such areas as delicatessens, res taurants, and drug and health i- tems. Without question, the largest growth area in the in dustry is in packaged, con venience foods. Nearly every large food company either is al ready directly represented in this field or is making plans for such representation. NEW MARKETS ABROAD In addition, food makers are seeking broader markets for their products by setting up pro cessing and distributing facili ties in foreign countries. During the past decade, vast new mar kets for U.S. food companies have opened up in Western Europe. Others are in the process of open ing up in Asia, Africa, and La tin America. The opportunities inherent in this expansion are nothing short of tremendous. Alert food man agements have already shown ap preciation of this by investing in ways calculated to take maxi mum advantage of foreign re sources in materials and labor as well as for foreign markets. American food know-how and know-why, if properly exercised on a world-wide scale, could ob tain for this industry a mea sure of prosperity far exceeding anything yet experienced. SOME ATTRACTIVE SITUATIONS We are convinced that the food industry has plenty of long-term investment potential for those in a patient irame of mind. The fol lowing companies offer good growth prospects over the longer term: CAMPBELL SOUP. Although earnings this fiscal year will be hurt by strikes and higher costs, Campbell’s long-term record of excellent sales and earnings sug gests an early snapback in pro fits. KNUDSEN COPR. A leading da iry in the fast-growing Southern Californis market, commencing to diversify. The strong capital position is enhanced by valuable real estate holdings in downtown Los Angeles. NATIONAL BISCUIT CO. This leading cracker and cookie baker also produces specialty mixes, frozen items, and pet foods. For eign subsidiaries account for 20% of sales. High start-ig) costs in terrupted the earnings uptrend this year, but 1969 prospects are good. Junior Achievement In Full Swing Two local Junior Achievement or ganizations are off and wingring. Within the next few weeks, the two corporations will be promoting and selling their products. We urge you to listen carefully to their sales pitch, not only out of politeness but because both corporations are produc ing attractive, useful items. Members of the Junior Achieve ment corporations are high school stu dents who purchased stock in their re spective corporations. They have put in a great deal of time setting up their corporations, planning and pro ducing their products. Now they are involved in marketing. The idea behind the organizations is to give young people an appreciation and understanding of how business works. They learn firsthand both the pitfalls and rewards of the business world. We salute Clinton Mills and The Torrington Company, sponsors of the two young organizations, and also the local businessmen and civic leaders who are lending their support and guidance to the .project. We wish the Junior Achievers well. May their products be popular and their ink blade. BY RICHARD GANTT Attorney Presbyterian College As 1968 is closing it is wise to take stock. If you are con sidering giving to a church or church agency such as Presby terian College you will want to plan your gift to take advantage of the Government’s encourage ment of such generous actions. If you own securities that have increased in value you can re ceive a charitable deduction for the full present value. You will completely avoid tax on the ap preciation. Perhaps you have se curities purchased less than six months ago. If they are sold be fore the six month holding period is completed, any gain will be subject to hill ordinary income tax rates. However, this can be avoided by contributing the se curities to a charitable insti tution. You would get an income tax deduction for the fall value. If you expect that your income for 1968 will be higher than 1969, you should make your contribu tions before December 31 this year to obtain maximum tax savings. The new 10% income tax sur charge is imposed from April 1, 1968, through June 30, 1969. If the tax surcharge is not extend ed beyond June 1969, you will receive a greater tax advantage by contributing this year. How ever, if the surcharge is extend ed until December 31, 1969, the tax savings of a 1969 gift will ex ceed those of a 1969 gift Pledges are deductible in the year in which they are paid. If you expect this year’s tax bracket to be higher than next year, ful fill your pledge for maximum tax savings. Pledges can be satis- 1 fled with money or appreciated securities. If you use appreciated securities you can deduct the market value and completely a- void any tax on the appreciation. A check mailed to a charitable institution this year is deductible RICHARD GANTT this year, even though it is not received until 1969. Thus if you mail a check on December 31st, you deduct it on this year’s re turn even though it is not re ceived until January. I trust these suggestions will be of help. “To the young people of America today. I say this: it’s true that you are inheriting a world you never made. But this was also true of every genera tion. The great, exciting dif ference is that you live in a world you can change. Never has it mattered so much in the world what the people of one nation do — the choices they make — the vision they hold out. It’s our chance today, and your chance tomorrow, to give a new dimension to the Amer ican dream, a dimension which can change America and enable America to help change the world.” Richard M. Nixon “Before offering a seat to a girl be sure she is!” BE THOU THANKFUL "Virgil's Been Like A Vegetable. He Hasn't Had All Those Polls Lately, Telling Him What He Thinks..." 10—THE CHRONICLE, Clinton, S. C., November 28, 1968 Time To Take Stock Sensing Sees Vote As Mandate For Change BY THURMAN SENSING Executive Vice President Southern States Industrial Council Though the presidential elec tion had a photo-finish, it re presents a mandate for major change in government policies. It was a close victory for Richard Nixon; but to get the real sig nificance of the election one has to count the votes that went for George Wallace. Considered to gether, as they ought to be, the Nixon and Wallace votes repre sent a big majority of Ameri cans who disapprove of the po licies and programs of liberal ism. Whether the Nixon victory was big or little, the electorate de cided that it is time for a change. The Great Society was re pudiated, as were the specific solutions offered by the Johnson- Humphrey administration. It is clear that a majority of citi zens don’t like the way the war has been conducted in Vietnam. They don't like violence in the streets and anarchism on the campus. They don’t like inflation that robs the ordinary citizen of his earnings. Mr. Nixon will not have an easy time when he takes office January 20. His administration will inherit the terrible fiscal mess created by the Kennedy and Johnson administrations. E- normous sums have been wasted in the last eight years, such as the $6 billion poured into the War on Poverty without good results. Unfortunately, American tax payers will have to pay the bills for the last two administrations for many years to come. They also will be paying for these wastetel programs in the form of inflation. On the financial front, the need is to cut federal spending. The Office of Economic Opportunity, which runs the War on Poverty, should he abolished as an Ini tial step to save resources. For eign aid should be brought to a halt, except where it involves the security of essential military allies of the United Stales. The federal payroll should be pruned of unnecessary help recruited by the Kennedy and Johnson ad ministrations. Many, many things need to be done. For example, the Post Of fice Department should be placed on a pay-as-you-go basis under businesslike administration. It is likely that Mr. Nixon will bring businessmen back into gov ernment and be business-or rent ed in his thinking. His experience of high-level government was during the Eisenhower adminis tration when experienced busi nessmen were regarded as a national asset All government programs need across-the-board appraisal from business teams, so as to weed out programs that retard the free enterprise sys tem. No government can create prosperity for the United States. But the Nixon administration, if it makes the right decision, can help create the right climate for enterprising citizens and com panies. The response of Congress to the new administration will be of critical importance. For tunately, the election returns in dicate that the conservative coalition will be stronger than ever. The conservatives have picked up some good allies, such as Senator Edward Gurney (R- Fla) and Barry Boldwater of Ari zona, who will be welcomed back to the national scene. Those who believe in responsible govern ment also have reason to re joice at some of the retirements ordered by the voters, such as Senators Wayne Morse of Ore gon and Joseph Clark of Penn sylvania. The new administration cer tainly will have reason to be mindful of the Increasingly Im portant role of the Southern States in the national political picture. Mr. Nixon could not hive been elected without the electoral votes of such Southern Stales as Florida, South Carolina, North Carolina, Virginia, Tennessee and Kentucky. The next acfcninis- tration should include leaders drawn from the South. The new administration also will be politically wise if it takes note ofthe tremendous con servative protest vote given to former Gov. George Wallace. The new President will have to bear in mind that, in a political sense, he has need of attracting those voters during the next four years. This can only be done by strong White House action in behalf of a conservative program. Always, there is a battle for the mind of an administration. The same type of battle can be expected in the months ahead. Conservatives need to keep up their activity so that their views get both a hearing and top-flight reception at the White House. Wish I’d said] That The truth seldom hurts ... unless it ought to.—Dale Holdridge, The Langford (S. Dak.) Bugle. If you stand by a tree long enough sooner or later you’ll be in the shade.—Louis Graves, The Nashville (Ark.) News. Tennis is the one sport in which it is permissible to have the best racquet in town.—Lee Batcheler, Sauk Rapids (Minn.) Herald. 1he Old ii/rm/i “People get into debt to ip with those who al ready are."