The Clinton chronicle. (Clinton, S.C.) 1901-current, September 18, 1969, Image 10
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BACK-TO-SCHOOL ADVICE
Egyptian Pyramids
2-B—THE CHRONICLE, Clinton. S. C., September 18, 1969
It’s school time again. Children
d young adults are back in the
assrooms and are hitting the books.
thoughts are with them. They
e the future of the nation.
For what it’s worth, we’d like to
ve some advice for young and old on
me of the pitfalls of the return to
hool and some safeguards that we
will save some the students and
eir families from grief:
Parents: Teach the little ones
eir names and addresses. Instill
oughts of obedience. It will help
>th teachers and crossing guards or
hool bus operators. Warn against
aternization with strangers, espec-
those in cars. Train them in the
bits of study and completion of
eir work projects.
Drivers: Watch those little < hil-
■en. They’re at your mercy. They
ay often seem the most hardy crea-
res on God’s earth, but they are
uly fragile when met headon by au-
< mobiles. Taking five extra minutes
r safety can prevent a lifetime ol
sirrow for both you and someone’s
h lly
parents. Heed the warnings of school
crossing signs and the Hashing lights
of the school bus. Slow do<wn. Give
them a break, not a fracture.
Students: What can we tell you
thid hasn’t been said? Listen to your
parents. Respect the policemen or
the crossing guard. Do your work
the best you c a n. Don’t talk to
strangers, whether they are dressed
like the men at the bank or the work
er in the ditch. There are bad men
and women in the world and they
wear many kinds of clothing. Watch
out for the cars. Play hard and study
harder. If you see a grown-up make
a mistake, remember that some day
you will be the Hrown-up and set it
in your mind that you will avoid the
same mistakes. Cherish your school
days. Ask any adult about school
days and watch the expression on his
face. It will be one of longing for the
days of youth. They are your days
now. They are the golden moments
you should cherish always. Bless you
and good luck!
A TWO-MAN LESSON
Within a 24-hour period America
cently lost two famous personali-
tis. One was a figure in the world of
•orts: the other belonged to the
w arid of journalism. Each left a void
w lich may never be filled.
Rocco Francis Marchegiano —
Rocky Marciano—was described as a
li dng figure of the famed cartoon
character, Joe Palooka. His was a vio
let occupation. His job was to get
idto the ring and defeat his opponent
\*6th his powerful punches. He was
undefeated in 49 bouts, 43 of them
\*lon by knockout. But it was no se
cret that “The Rock’’ in victory was
a; softie. He exhibited genuine con
cern for vanquished opponents,
j The comments of his former ad
versaries were free of bitterness. To
a* man they were deeply saddened on
hearing of Rocky’s death in a plane
cj-ash. Great champions of the ring
-j-Louis, Walcott, and Griffith—and
njany not-so-famous wept when they
ere informed of his death. He died
t|e day preceding his 46th bi
ton scene who do not mourn his pass
ing. Three presidents called him a
liar. Countless public officials con-
curred. Pearson appeared willing to
accept the animus of his contempora
ries as the price of smoking out mis
creants on Capitol Hill. On balance,
it is fair to observe that Pearson fre
quently revealed wrong-doing in high
places, some of it of great value to the
nation at large.
In a biography of Mr. Pearson—
The Drew Pearson Story—written by
two newsmen, Frank Kluckholm and
Jay Franklin, he was described as
wielding “more power from Washing
ton than all but two or three persons
in Government.” One of the closing
paragraphs of the book is of interest
at this time. It reads: “According to
Shakespeare, ‘It is excellent to have a
giant’s strength; but it is tyrranous
to use it like a giant.’ Pearson did
not;always use his strength like a
«mnt but rather like a gnome, some
times mischievously, sometimes ma-
mtjwely with magnanimi-
almost never with re-
Andrew Russell “DreW*^ Pearsbn' <4: sfraint. “Drew lias accumulated a for-
wfis proud of his title as a mckrak- tune but dug the grave of his reputa-
There are many on the Washing- tion with his own typewriter.”
A SMALL INCIDENT?
! There’s an interesting article about was evicted. He spent the night on
thje late Mahatma Ghandi of India in
tT^s month’s Reader’s Digest.
| Ghandi popularized the attitude
olj passive, non-violent resistance in
time and its impact has been felt
roughout the world.
We thought it was particularly
noteworthy that the seed for Ghan
di s way of thinking was planted one
ni fht on a boat. Ghandi paid first
cliss fare, entitling him to one of the
st Uerooms. However, because of
piejudice, another man objected to
G landi sharing the quarters. Ghandi
deck reflecting upon man’s injustice
to man and later referred to that
night as the night he became dedicat
ed to passive resistance.
It was just a small incident in the
life of the man who had Ghandi evict
ed. He probably gave it little thought
thereafter. It was a turning point
u>r Ghandi and, eventually, for India.
Ghandi undoubtedly was nursing
his ideas anyway and had the incident
not occurred, something else would
have happened to give Ghandi such a
time for reflection. Or would it?
The Final Court For The Kennedy Case
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Oil Demand Grows
BY BABSON’S REPORTS, INC.
WELLESLEY HILLS, MASS.-
Today the search for untapped pe
troleum reserves has spread into
every section of the globe. De
mand for oil, today and into the
future, is steadily on the in
crease. To meet this demand, oil
companies now seek out the black
gold even in regions having the
most inhospitable topography and
cllmtate.
TWO EXTREMES
Alaska and the Arctic will un
doubtedly provide a huge pool of
oil in a few years, but some cold-
weather operational problems
and the very difficult question of
getting the oil to the refineries
have yet to be resolved. At the
opposite end of the thermometer
are other prolific fields in South
America near the Colombia/
Ecuador border. This is a sec
tion of dense rain forest averag
ing 25 inches of rainfall an
nually, but the difficulties which
have been overcome here in get
ting oil production to market give
proof that the Alaskan problem
can also be solved.
OVER THE TOP
The most logical outlet for Co
lombian oil was a seaport on the
Pacific Ocean, some 200 miles
away. A pipeline of this length
is usually not particularly diffi
cult to construct, but in this case
the route of the pipeline took it
from the eastern slope of the
Andes Mountains, up and over the
top at nearly 12,000 feet, and back
down to sea level.
A joint venture by Texaco and
Gulf Oil, the Trans-Andean pipe
line must rank as one of the most
awesome construction feats of all
time. Heavy jungle, vast swamps,
landslides, extremes of heat and
cold, and the constant rain added
to the difficulties of laying pipe
at high altitudes. Much of the work
could be done only by hand and at
times as many as 2,500 men
worked on the job. The $50 mil
lion project not only spans the
mountains, but also crosses six
rivers which were rarely at
less than flood stage. Helicop
ters provided access and trans
port of men and materials. With
out either manual labor or the
modern helicopter, it is doubt
ful that this pipeline could have
been laid at all.
Pumping stations boost the
crude to the top of the moun
tains, while on the downhill run
pressure reduction stations re
move the tremendous energy built
up due to elevation. The capacity
of the line is 100,000 barrels per
day, with storage capacity at both
ends providing flexibility in tank
er operations.
A MAJOR FIND
The effort of constructing this
important pipeline would indicate
that Texaco and Gulf have ex
tremely important fields in Co
lombia and Eucador. In Ecuador,
for example, Gulf had 10 poten
tial production wells out of 11
drilled. Further, since the
Trans-Andean pipeline began
operating in April, Texaco and
Gulf have negotiated new royal
ty agreements with the two coun
tries.
In Colombia, royalty and tax
payments were increased from
40C t of net income to 60^ and 1/2
of the oil companies’ concession
acreage was returned to Colom
bia. Ecuador received back 2/3
of its concession acreage. For
this, permission was granted to
build a spur pipeline from the
Ecuador oil fields td the Trans-
■ Andean line. Authorisation was
also given for another new pipe
line across the Andes. This would
appear to give evidence of oil
properties with high potential in
these two countries. The roads
required to build and maintain
the pipeline have opened remote
areas of Colombia to settlers.
PROSPECTS
Both Gulf and Texaco are pro
minent * international” oil com
panies with operations in all
phases of the petroleum business
conducted world wide. While
higher costs and early-year la
bor troubles have impaired earn
ings to date this year, the re
maining months should see im
proved profit margins and better
earnings gains. The Research
Staff of Babson’s Reports feels
that Texaco is in a slightly more
favorable position than Gulf, and
hence is currently reconnnending
purchase of Texaco shares. How
ever, the edmmon stdek o/ Gulf
Oil is certainly well worth hold
ing for long-term growth.
SENATOR STROM
THURMOND
REPORTS TO THE
PEOPLE
THE WELFARE PROBLEM
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SERVICEMEN
Servicemen who are within six
months of discharge will be of
fered training as police recruits
under a new Manpower Develop
ment and Training Act Program.
The program, which is designed
to relieve the critical shortage
of police manpower, will operate
until October 1, 1970. Soon-to-
be-released servicemen will be
trained by Junior colleges and
other policy science institutions
under a subcontract with the In
ternational Association of Police
Chiefs, Inc.
President Nixon has outlined
a bold new program to reorga
nize our outmoded system of as
sisting the needy and indigent.
The proposals are so fundamen
tal in their attack on a system
loaded with waste and abuse
that they will require careful
study in detail.
If some kind of reform is not
forthcoming, the welfare burden
will soon become staggering. Be
cause the various welfare pro
grams are scattered throughout
the Federal Budget, little no
tice has been taken of the total
.sum. A recent study by the Sen-
nate Republican Policy Commit
tee shows that all programs for
promoting the general welfare
in FY 1970, if added up, total
some $60.4 billion. In addition,
State and local welfare pro
grams cost more than $6 billion.
Thus the total of welfare spend
ing in this country is close to
$72.5 billion.
WELFARE AND DEFENSE
This sum of $72.5 billion for
all welfare is much more than
we spend on general military
preparedness, exclusive of the
war in Vietnam. For general de
fense purposes, the FY 1970
budget is estimated at $55.4 bil
lion. With Vietnam added, the
total is still only $77?6 billion—
that is to say, about $5 billion
more than the total welfare
spending in this country.
The cost of Federal welfare
expenditures breaks down this
way: For health, $14 billion; for
job training in all agencies, $3.5
billion for income replacement
programs, such as Social Secu
rity, $42.9 billion; for public sup
port, such aa Aid to Dependent
Children, $6.1 billion.
Something must be done to
halt the spiralling costa of wel
fare. The President has asked
Congress to give close considera
tion to four areas of the welfare
problem.
PRESIDENTS PROGRAM
Ik the welfare programs, the
President would continue aid to
the fged, blind, and disabled,
but he would establish a national
minimum. He would eliminate
the Controversial Aid to Depend
ent v •Children program, where
costs are soaring, and abuses
rampant. In its place, he would
substitute a family assistance
£
Investment Capital
Very Important
To Provide Jobs
BY THURMAN SENSING
Executive Vice President
Southern States Industrial
Council
While it is important to give
individual taxpayers relief from
growing burdens, it also is neces
sary that the nation’s lawmakers
bear in mind the need for main
taining investment in the coun
try’s free enterprise system. No
thing could be more hurtful to the
financial interests of all citizens
than a drop in investment of capi
tal in productive enterprises that
furnish jobs to working people.
Secretary of the Treasury
David M. Kennedy clearly had
this fact In mind when he pro
posed changes in the tax bill
developed by the House ofRepre-
sentatives. Testifying at the Se
nate Finance Committee’s pub
lic hearing on the House mea
sure, Mr. Kennedy proposed that
the House bill be changed to re
duce corporate income tax rates
by one percentage point in 1971,
and by another in 1972. The Sec
retary maintained that redis
tribution of tax relief toward
corporations is necessary be
cause of the “bias in the bill
against investment in favor of
consumption.”
Secretary Kennedy went on to
observe that “such overweight
ing, embodied in the proposed
treatment of capital gains as well
as corporate tax increases, could
impede economic growth in the
years ahead by curtailing the in
centive to make productive in
vestments.”
Liberal members of Congress
are not likely to take kindly to
Mr. Kennedy’s proposal. They
apparently feel that there is po
litical mileage in soaking U.S.
business. But informed citizens
are aware of the tremendous im
portance of maintaining a high
rate of investment. And invest
ment is made only when there is
an expectation of reasonable re
turns.
If industry lacks sufficient tax
incentive, new investment will not
be made on the necessary scale
and job openings will not occur
in the desired number. It’s as
simple as that The alternative
facing government will be to
create jobs for government
spending — to order make-work
projects, or relief, that is. And
no thinking American wants re
lief programs instead of pro
ductive employment in private in
dustry.
Secretary of the Treasury Ken
nedy was on the right economic
track, therefore, in dealing with
this aspect of the tax bill. Un
fortunately, he didn’t go quite far
enough in another area --the
oil depletion allowance area.
i
The Nixon administration has
decided not to oppose the House
plan for reducing the depletion
allowance from 27.5 per cent to
20 per cent. Recent events in
the news underscore the danger
of reducing an allowance that
encourages development of new
oil fields in this country.
The liberals in Congress be
lieve they have an easy target
in the oil depletion allowance and
try to present it as a present
for “economic royalists," to use
the old Rooseveltian term. Actu
ally, students of the oil situa
tion around the world understand
that the depletion allowance plays
an important role in guarantee
ing the United States adequate
supplies of oil to power its in
dustries and light its homes.
Only a short time ago a re
volutionary socialist regime took
over the North African country
of Libya, which is the seventh
largest oil-producing nation in
the world. U. S. companies have
invested heavily in the Libyan
oil fields. These fields are now
endangered by the leftwing re
gime in power in Libya.
The United States and its al
lies may need to develop new oil
fields in speedy manner. Ex-
or the re- v P# rati ^ n f n Alaska’s north slope
turn ofjpsups ‘s:J^ ver y T>?omising, but oil com-
from^WlWfltMost oftKesk to invest vast sums
are young draftees who will leave ^ ex Ploratory drilling. To bring
military service on their return
and start looking around for jobs.
If they are to find jobs, indus
try must be expanded. The only
way the nation’s industrial plants
are expanded is by investors put
ting more money into factories.
So if high employment is to
continue in this country, the Sen
ate Finance Committee will have
to amend the House-passed tax
bill to give free enterprise com
panies as adequate incentive to
enlarge existing facilities and
add new ones.
out the oil to refineries will be
estremely expensive. One com
pany is spending $40 million in
trying to send a specially re
built tanker through the ice of
the Northwest Passage. All this
means that the oil industry needs
adequate incentive to undertake
risky new ventures essential to
the country’s well-being. The
Senate Finance Committee should
consider that fact and restore the
full depletion allowance. The real
beneficiaries in the long run are
U. S. taxpayers who gain from a
healthy, active oil industry.
roRram that would offer a basic
ederal payment of $1,600 for
a family of four. In order to
encourage recipients to take a
job, the basic payment would be
continued even if the recipient
earned up to $60 per month;
after that point, there would be
a reduction of 50 cents in bene
fits for every dollar earned.
One of the moat impressive
merits of the President’s pro
gram is that those who CAN
help themselves will be encour
aged to improve their situation
and get off the welfare rolls. For
the first time, those who CAN
work,, and refuse to work, or re
fuse to take job training, would
be taken off the public dole.
However, the ovef-all effects
of this program need to be
examined realistically. In the
beginning, the program would
cover 22.4 million beneficiaries,
instead of the present 10 mil
lion. It would cost $4 billion ad
ditional. The President’s rea
soning is that costs will ulti
mately decline as those who are
able to accept training, get jobs,
or get off the dole.
REVERSING THE FLOW
In the area of job training,
the President wants to reorga
nize the present scattered pro
grams, so that Federal adminis
tration can be phased out in
favor of State and local admin
istration. Seldom has a chief
executive proposed to reverse
the flow of power by returning
jurisdiction over a program to
the States.
As regards the Office of Eco
nomic Opportunity, the Presi
dent would make it into a lab
oratory agency, testing pilot
projects. Any successful proj
ects would be spun-off into reg
ular administrative agencies for
better control.
Finally, the President has pro
posed a plan of revenae sharing,
whereby a set portion of reve
nues from Federal Income Taxes
would be remitted directly to the
S^es with a minimum of Fed
eral restrictions. The President
would begin revenue shoring by
the middle of FY 1§71.
desling with s thorny pi
TAX REFORM-1969 EDITION
We are aH interested in sound, constructive tax
reform. It should be based on a careful analysis of
the nation’s needs and the most equitable way to
attain them.
The recently passed House bill, “Tax Reform
Act of 1969,” adopted after only two days of con
sideration of the 368-page document, contains
serious distortions which should be rectified before
the Senate approves it.
One of the most serious drawbacks is the bill’s
long-term negative implications for capital forma
tion. We should be thinking of the kind of tax sys
tem that will be appropriate to the economic con
ditions that will prevail for the long term after the
boom is over. The tax system should not penalize
job creating, domestic capital formation.
Serious consideration should be given to possible
economic and other effects, and indeed, to whether
or not capital gains should even be considered part
of regular income taxation.
The proposed change of rules governing the
taxation of deferred compensation is a striking ex
ample of complicating the tax even though no abuse
has been shown and where there is only a slight
revenue effect.
These are but a few examples of areas where it
is hoped the Senate Finance Committee will give
serious consideration, before releasing the bill for
a vote on the floor.
Taxes will be with us for a long time—so why
rush legislation through—when a little more time
will result in a better tax code for aH concerned?
Wish I’d Said
That
IhtOldlcmwi
(net prepar'd or printed at
A good listener is not only
popular everywlfrre, but after a
while he knows £|gw things.
LuciUe Thies, lie Manteno
(III.) News.
‘The oifrly safe thing to do
behind a person's back ia to
pat it.’’ - > *