Historical Newspapers of South Carolina

Below is the OCR text representation for this newspapers page. It is also available as plain text as well as XML.

2-B—THE CHRONICLE, Clinton, S. C., January 80, 1969 Low-Rent Housing The possibility of a low-rent hous ing project for Clinton is being con sidered. Clinton Chamber of Commerce leaders are concerned about housing in Clinton. That is the reason they had two Regional Housing Authority officials to address the Chamber of Commerce membership meeting last week. Housing is a problem in Clinton, particularly for new residents. The low-rent housing project dis cussed last week would not do much to solve that particular problem but it might serve another purpose. There also is a need for substantial, comfort able housing for the low-income group. Billy Bolt, executive director of the S. C. Regional Housing Authority, admitted that it is preferable for pri vate capital to solve this problem. However, construction costs are at a point where it is not economically feasible to build houses in the low-rent category. Old houses and little or no upkeep currently is the combination providing housing for people in the low income bracket. Some of the houses are nothing but shacks. A landlord get ting $6 or $7 a week rent out of a piece of property can afford little up keep. On the other hand, people who have an income of $80 to $100 per month, can’t afford anything better. The Housing Authority’s low-rent project might solve a problem for Clinton. The amount of rent a person pays in a low-rent project is determined by his income. Some claim that some people take advantage of this, that it kills their incentive to uplift them selves. There is some abuse of this privilege but there also are many ex amples in which people have moved be yond the maximum restrictions on the project and have moved out of the low-rent project into even better quar ters, often into homes of their own. We have watched other low-rent housing projects in other towns and cities in the two Carolinas and we have come to the conclusion that the projects are only as good as their managers. Billy Bolt and Assistant Regional Director J. Alterr Thompson, Jr., who SENTIMENTAL VISIT On Monday, January 13, as he en tered the final week of his residence in the White House, President John son made what was described as a sen timental visit to the AFL-CIO build ing just across Lafayette Square from 1600 Pennsylvania Avenue. He did not go empty-handed. He carried with him a pblished plaque on which were mounted 100 pens which he had used in signing many Great Society bills. “I know of no living single group,” said the President, “that I think has been more responsible for the advances that have been made in this field in the last five years than the AFL-CIO headed by George Meany. . . .” That in itself is a very interesting observation, since it is not a matter of record that any members of the Con gress presented themselves to the vot ers as Labor Party representatives, or candidates of the AFL-CIO. But even more interesting was President Johnson’s observation that he and George Meany, head of the AFL-CIO, had met a total of 49 times over the past 62 months, either in the President’s office or the family living quarters, and that they further had telephone conversations an addi tional 82 times. And some of those telephone conversations were, in the President’s words, “rather extended.” One wonders how many Cabinet Officers had as many as 131 intimate discussions with the President in the course of the 62 months. Granted, the Presidency of the United States is the loneliest job in the world, and the Chief Executive has every right to choose his friends and adivsers. Still, he is President of all the people, and there must be some businessmen and farmers — the head of the U. S. Chamber of Commerce, or the National Association of Manu facturers, or the P r e s i d e n t of the American Farm Bureau Federation— who will notice in passing how their opinions were heard on the affairs of state somewhat less than 131 times in 62 months. Informed estimates have been made that organized labor spent as much as $60 million in the campaign last fall to elect Hubert H. Humphrey. Lyndon has told us why. would be overseeing the Clinton proj ect, apparently run’a closely regulated organization. Residents must pay their rent on time, no exceptions are made. They must keep their unit clean and they must meet certain moral standards. If they fail to live up to these requirements, there are others waiting to take their place in the project. If the property is dam aged, the cost of repair is added to the rent of the person who is repson- sible. The Housing Authority’s low-rent project is worth considering. It might solve a problem for Clinton. NIXON'S CHALLENGE IS OUR CHALLENGE The cold and somewhat murky weather in which Richard Nixon was inaugurated the 37th president of the United States in some ways is sym bolic of the foreboding problems which face him in the years ahead. Nixon begins his tenure of office after an eight-year Democratic reign in which, according to official U. S. Government data published in the January issue of “U.S. News & World Report,” total government spending rose 96%, total taxes paid rose 90%, the value of the dollar declined 15%, the farm population of the nation de clined by 25%, and serious crimes in creased 125%. He begins his term of office beset with problems such as Vietnam which have plagued the American conscience for a decade. He begins with the eternal civil rights questions which have been in the forefront of Ameri can life for years. From the general tone of the Nixon inauguration, it seems that the new President’s primary goal is, as it should be, an honorable but negotiated settlement in Vietnam. His secondary goal seems to be to calm the domestic situation enough so that government can begin to solve its problems and the problems of the U.S. citizen in an or derly, stable, well-planned, and per sistent manner. The years to come will be ones in which Nixon and the America h^ seeks to lead will face both criticism and praise at' 1 home and abroad. Hope fully, the calm he seeks to establish will not mean that the vast problems we face will be ignored. We hope that in Clinton as well as in the White House, Nixon’s words might be re membered — “The American dream does not come true for those who fall asleep.” Richard Milhouse Nixon begins with problems. With him we will sink or swim. With him we must passion ately and compassionately seek solu tions to our local and national prob lems rather than sink into a noncha lant and unrealistic slumber. SECOND THOUGHTS The bankers who were predicting a crisis for the dollar in the first months of the Nixon Administration are hav ing some second thoughts as they do some of the end-of-the-year pencil work. First, President Johnson re ported in his State of the Union mes sage that the United States had ex perienced a surplus in its internation al transactions last year, the first since 1957. That was an Eisenhower year, and the word in Waahinton is that the Nixon approach to the coun try’s fiscal and monetary problems will tend to the Eisenhower pattern. Also, last year foreign investors sent $1.8 billion to our shores as in vestment in the U. S. economy. They bought that much in Wall Street shares. In 1966, by contrast, foreign ers invested only $333 million. That big flow of dollars to the United States says something elo quent about the relative strength of our economy as compared with that of Europe, at least in the eyes of invest ors. Those who gambled on gold have found it to be a rather static invest ment and to date the return has not been very rewarding for those who bought it in anticipation of price in creases. But probably more important than the disappointment over gold as an in vestment was the Soviet invasion of Czechoslovakia. That development frightened thousands of businessmen in Europe and they promptly sent their investment funds out of the con tinent to the safety of the United States — to Wall Street. Red, White And Blue Submarine Amendment Is Asked On Property Taxation The , South Carolina General Assembly has been asked to enact a resolution proposing to the people of the state an amendment to the constitution - relating to property taxation - to the ef fect that property be assessed for the purpose of taxation on the basis of the value of its use, rather than its cash market value. South Carolina Farm Bureau made the request at its annual Legislative Banquet held in the Wade Hampton on the evening of January 22nd. In the visual presentation - given by Farm Bureau Director of Information Tom Warren - it was pointed out that the legal basis for the assessment and valuation of real estate in South Carolina is derived from the State Constitution; which provides that - "All taxes upon property, real and personal, shall be laid upon the actual value of the property taxed, as the same shall be as certained by an assessment made for the purpose of laying such tax.’ “This presents aseriousprob- lem to property owners - es pecially rural landowners - ‘the presentation stated; ‘because as applied to properties in the rural- urban fringe areas, this method of assessment results in valua tions for tax purposes that are strongly influenced by sales of farmland for non-farm use.’ “ Lands that can support a mar ket value of no more than a few hundred dollars per acre in agriculture may be valued at sev eral thousand dollars per acre for taxation; if nearby lands have sold for subdivisions or indus trial purposes for that amount." “We certainly realize," said Warren, “that as our population expands there is need for greater local government services and for the revenue to pay for them. Property tax, however, is not the only source of revenue - as it was in our early days of state hood when we were a rural state, and property represented our primary tax base.’ “Property owners want to pay their fair share; but since the majority of our citizens enjoy the fruits of business and industry; and our economy is becoming to a larger degree based on in dustrial enterprises, property owners feel that the time is past due - when there should be true tax equalization with everyone paying a proportionate share of the bill." ‘Nationwide, property taxes increased by 23C^o from 1945 to 1965,’ continued the presentation, “while during this same period the increase in farm income was practically nil.” It was pointed out that the city property owner also feels the same adverse effect of the situa tion, since he has no control over many factors that artifically in crease the speculative value of his property. SENATOR STROM THURMOND REPORTS TO THE PEOPLE INVITATION TO DISARMAMENT Now that the Soviets are achieving parity in regards to long range intercontinental bal listic missiles (ICBM's), they are aggressively seeking an im mediate opening for disarma ment talks with the new Admin istration. It is not surprising that the latest invitation to dis armament came only two days after outgoing U. S. Secretary of Defense Clark Clifford told Congress that the Soviets are pulling abreast of us in the num ber of ICBM launchers. SOVIET HISTORY Historically, the Soviets al ways intensify disarmament ne gotiations whenever they have achieved a significant stage of development in a particular field. By seeking arrested de velopment whenever they have equalled or surpassed us, they can then turn their attention to the development of new weapons of destruction. Mr. Clifford’s final accounting to Congress confirms that the Soviets have been engaged in an intensive program of ICBM pro duction. In mid-1966, the Soviets had 250 operational ICBM’s. In mid-1967, they had 570 ICBM’s. By September 1968, says Mr. Clifford, they already had 900. At such a rate of develop ment, it is easy to see now, four months *later, that the Soviets must already have equalled or surpassed the U. S. total of 1054 operational ICBM launchers. Obviously, this accomplish ment was not the result of any sudden shift in Soviet strategy. Such a tremendous production required many months of plan ning and three or four years in execution. The Soviets were not interested in talks to limit IC BM systems until they had achieved their goal. SOVIET SEA POWER In the same way, the Soviets are also making overtures to the new Administration in an effort to limit American defense prep arations generally. Over the last eight years, U. S. defense re search and development in new fields has lagged, while older programs have been phased out. For example, a recent study published by the House Armed Services Committee shows that U. S. naval strength has been under challenge by a Soviet drive for numerical superiority. The United States has 105 attack submarines, while the Soviets hsve 250. The United States has 41 missile submarines, while the Soviets hsve 100. The United States has 86 minecrmft, while the Soviets have 300. The num bers do not reflect greater U. S. sophistication in equipment and other qualitative differences, but they leave no doubt about the level of recent Soviet effort. A result of this relentless So viet drive for sea power is that much of the Soviet fleet is more modern. The United States leads in destroyers, 177 to 86. How ever, only 14 of the 177 U. S. destroyers have been built in the past 20 years, while all of the Soviet destroyers are less than 20 years old. Only 45 of the U. S. attack submarines have been built in the past 20 years, but all of the Soviet attack sub marines are new. MERCHANT MARINE In the area of the merchant marine, the Soviet fleet is also newer. At least 80 per cent of the U. S. fleet is more than 20 years old. while 80 per cent of the Soviet fleet is less than 20 years old. j The importance of having both modern vessels and sophisti cated equipment was illustrated recently when the commander of the intelligence ship Pueblo tes tified that his operations under enemy attack were hampered by antiquated equipment on the converted vessel. The one thing that the Soviets fear most is the promise of the incoming Administration to re store the United States to a po sition of unchallenged strength. By issuing an invitation to dis armament on the very day that the new President took office, the Soviets hope to prevent the overturning of policies which enabled them to catch up to the United States in many fields of military capability. We must be wary of such invitations when they are presented agaihst a background of intense military effort. (Not prtporod'or prUCiod «t ‘pmAt*«5porjt) Peace And The Defense Stocks WELLESLEY HILLS, MASS. - With de-escalation of the Viet nam conflagration possible in 1969, what lies in store for the defense oriented companies? Since the Paris peace talks be gan there has been very little momentum, on either the upside or the downside, for the stocks of these companies. What can the aerospace industry (chief de fense suppliers), and particu- ’arly its shareholders, expect from any cessation of hostili ties? FISCAL 1970 BUDGET SHOWS STABILIZATION EFFECTS The defense budget, as pro posed by President Johnson just before he left office, shifted from a defensive Vietnam posture to a strategic emphasis. Sizable ex penditures for new missiles, planes, and ships were requested, as well as large outlays for re search. The Babson’s Reports staff feels this is the clue to the future for defense compan ies. Defense spending should con tinue high for some time after the war’s end because of the need for inventory replenish ment. Also, maintenance of a high level of post-Vietnam spending for the funding of certain de ferred or stretched-out pro grams (due to the more press ing war needs) should militate against any notable reduction in defense business. SPECIFIC SYSTEMS ACCELERATED $30.1 billion for 1968, slightly better than the $29.2 billion es timated to be spent for Viet nam in the fiscal 1969 year end ing June 30. Because only about 10% of the aerospace industry’s sales is geared to the Vietnam war effort, the staff of Babson’s Reports feels that the impact on the defense companies would not be as severe as many investors imagine. Moreover, these firms have been building systems readily adaptable In time of peace to extensive programs in trans portation, pollution control, ocean exploration, medical sys tems and public health. AEROSPACE INVESTMENT VEHICLES BOEING COMPANY. As the In fiscal 1970 the Pentagon pro poses to almost double funds for the controversial “Sentinel’anti- ballistic missile system from $960 million to$1.8 billion. Major participants in this program will be Raytheon, General Electric, Me Donnell-Douglas, Martin Marietta, Sperry Rand, Bur roughs, Hercules, and Thiokol. The intercontinental missile pro grams will receive substantial increases for the advanced ver sions of the “Minuteman* mis sile (the II and HI versions) and the “Poseidon" submarine- launched missile. Boeing is the prime contractor on the former and Lockheed on the latter. In addition, the new Navy fight er (F-H) to replace the cancelled F-1U-B, will require outlays of almost $500 million (for two ver sions). Grumman Aircraft was recently selected for the F-14A model. An Air Force model, the F-15 supersonic fighter slated for operation in the mid-1970’s, will constitute a sizable award for one of the three companies (Fairchild Hiller, McDonnell- Dougias, and North American Rockwell) now hotly competing for production contracts. Of great significance is the fact that the research authorizations are ex pected to be almost as large as the production funds. Finally, a $ 2.4-billion shlp-bulldlng pro gram (almost twice as great as the average of the last five years) is also proposed. This includes such multi-diversified com panies as Litton Industries. Sales for the aerospace in dustry were around a record leading producer of commercial aircraft, the company derives over half its sales and the bulk of its profits from this sector. Thus, it is less vulnerable than most defense contractors. But is is prime contractor for the Minuteman missile programs and has an important role in other missile and space projects. NORTH AMERICAN ROCK WELL. Through mergers, this giant contractor has become one of the most diversified companies in the business. Management ex pects the corporation to be nefit rather than suffer from termination of the Vietnam war. Like Boeing, North American Rockwell has a sizable and grow ing commercial product mix and looks forward to generating sig nificant earning power over the longer range. * * * For freedom Christ has set us free.—(Gal. 5:1). God created us free. With the power of God within us we activate faith. And this faith quickens a light which is more powerful than that which dark ens our life and causes us to fear. The freedom which is generated by faith has no lim itation. God fashioned us in the image and after the likeness of freedom.