Historical Newspapers of South Carolina

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PAGE FOUR THE NEWBERRY SUN FRIDAY, FEBRUARY 25, 1949 !§tt» 1218 College Street NEWBERRY, S. C. 0. F. Armfield Editor and Publisher PUBLISHED EVERY FRIDAY Entered as second-class matter December 6, 1937, at the Postoffice at Newberry, South Carolina, under the Act of Congress of March 3, 1879. SUBSCRIPTION RATES: In S. C., ?1.50 per year in advance outside S. C., $2.00 per year in advance. COMMENTS ON MEN AND THINGS BY SPECTATOR Santee-Cooper has a surplus of thirty five million dollars. The very interesting annual report for the fiscal year ending June 30th, 1948 tells a story of a re markable achievement, but no fact of the many arresting items of mat summary of ac complishment will carry so much genuine satisfaction 'to Old Dealers, New Dealers, Fair Dealers, Square Dealers — and other Dealers—as the surplus of thirty five million dollars. To be exact I quote the report on page six: “Total surplus $35- 920,278.87. If the accountants had squeezed just a wee bit, the item might read thirty six millions. After all, who wants to haggle over a mere seventy nine thousand dollars when handling millions; and in an age of billions. The President, you recall, insists on increasing taxes so as to raise a mere four billions of dollars. We Americans are no pikers! We are willing and eager to be taxed for the multudinous bu reaucracy, as well as to let th ^ •. reaucracy play at re- f' .ir i rebuilding and regen erating the world. I assume that »"• plunge with playful zest into all the world uplift because we are content to trim a few dollars here and there instead of laying the axe to the root. So, it may be that the sur plus of thirty five, nearly thir ty six, millians of Santee- Cooper will not excite us. Heading through the excel lent and informative report I find a commendable wealth of detail. Though I do not always understand the why and where fore, I can, at least, read the words and figures. The gentlemen who prepare finarcial statements speak a language of their own; they probably know what they mean to say and understand what they have said. In that, they differ from us of the legal pro fession, for the Courts frequent ly indicate that we don’t know what’s what, and that stands until a higher court says the same thing about that Court. Just about the time a layman marvels that one head can hold so much learning, some court suggests that the head was not crowded with law; what the lawyer may think of the the court is something else again— possibly what the private thinks when he salutes the General’s limousine. I’ve been urging some of my banker friends to use English, simple English, in public state ments. Now and again we read that “debits increased a million dollars.” What debits? Whose debits? Loans can be debits; so can deposits. It seems clear that I don’t know what a debit is—and I hope I may never find out, if it’s against me; but I still plead with my banker friends 1 to put the fodder low in the rack, as the old preacher pray ed. Now as to surplus: I have a fair idea what a surplus is. In my earlier days of exuber ance I went to New York and “took” courses in Banking and Foreign trade, among other things such as Spanish, General Economics—and what not. If I had learned nothing I should have been repaid by the stimu lating association with Dean Wellington Taylor, whom I cherish with great respect and affection. At that time an other great figure was editing a financial daily. That man, the author of the Federal Re serve act, had tried to cram me with Economic somewhere else. I’ve wandered away from the surplus. The mail brings me statements of some corpora tions. I read such items as this: Surplus: Capital Surplus, Earned Surplus. The two taken together are surplus; and to explain what a surplus is would be mere surplusage, wouldn’t it? President Leguia in hand ing me an application from a young lady said: “Muy para- cida la nina, No?” I replied “Si Senor, muy bonita.” We said the same thing. So whether we say a Surplus is an over-plus, or accumulated reserves, or unused profits tak en from current operations and undistrubuted, or whatever may be the language, we come back with conviction that a surplus is a surplus. In the remarkably frank and clear statement, which I find so worthy of praise, appears an item that I wonder at: “F.W.A. Supervision and other Deferred charges—$296,587.19.” That is just a small charge, but why? We believe in the competence of the management, so why this item for the year—$296,- 587.19. What are those items? So detailed is the report, and so frank and businesslike, that errors in construction are dis cussed frankly, and the ex pense of correcting the errors at the cost of about four mil lion dollars, as I read the fig ures and explanations on pages 41 and 42. The report deals with the problem fully but technically and gets over the head of a mere layman. In detail are mentioned the employees, their pay and the increases allowed each person because of the high cost of living. The management oper ates very frugally and has the taxpayer in mind. We read that some workers were given a special increase of $6.75 for two weeks; others up to $12.50 —which is the highest. Ap parently every official and em ployee was given an increase of five per cent to 15 per cent, except the Directors and the General Manager. They re ceived nothing. For commendable strictness of management we note a case of “one day leave without pay.” Ther e is an item that I pon dered over; on page 75 “Semi monthly (directors and Gener al Manager) $766.16. Of course it can be readily explained, because if one of these mathe matical sharks comes along with a pencil he turns back to page 68 and sees that the di rectors receive $800, or pay at the rate of “$100 monthly rate.” That is a bit confused, but the total payments to directors is given as $8,400 for the year, or $700 a month, $350 bi-week ly. Added to the bi-weekly stipend of the Manager we get the total $766.66 referred to. I dug that out, but it might have been made clear in the first place. Don’t think I’m finding fault; seldom do I spend so much time on a report. If I point out something I am confident the management can throw a flood of light on it. It is a long report, perhaps to long, yet not long enough. That may sound as involved as the state ment of a girl to her beau (boy-friend now). Said the en trancing damsel to the big he- man, “I love you with all my heart—if I have a heart.” After giving us in such not able detail the pay of so many, even the deduction for one day off, there appears another item: “Other salaries and wagesl— $397,670.12—nobody mentioned. For the payment of $338,435.46 we have every individual from directors to temporary janitor, but for $397,670.12 we have no name. There is another item that the management might clear up: On page 75, under the head Total Salaries and wages ap pears this: “Bi-weekly (other) $12,173.99” — or $26,347.98 a month. Perhaps I ask too much when I ask more details, since such WIDER HIGHER LONGER < ► 4> 4 4 4 ► ON THE INSIDE ON THE INSIDE ON THE INSIDE 4* <► NARROWER LOWER SHORTER < ► 4 4 4 ► ON THE OUTSIDE ON THE OUTSIDE ON THE OUTSIDE 4 ► 4 4 ► 4 Save Regularly Here you save money in convenient amounts. You also save worry...for savings at work here have insured safety plus attractive earnings. Lay away a Portion of each pay check the 'own INSURED IAFETY Payment on a home of your own. Start now and save re 9ularly 3* a mass of detail is given. The management will not object to giving in detail the items which make up the totals given in any case. The excellence and readable quality of the report prompt me to mention these parts which are not clear, at least not clear to me. If I might ask a personal favor it would be to avoid such variation as this, on page 75; Semi-monthly and bi-weekly. Of course there is a difference of days and that counts up in money. Bi-weekly is two weeks; semi-monthly may be fifteen and a half days. The surplus of nearly thirty- six millions might serve to re tire the entire bonded debt of the Santee-Cooper and provide the eight million that the San tee-Cooper is said to pay in terest for the Central Coops. Why should Santee-Cooper con tinue to pay 2%% interest on bonds totalling $27,094,000. The report shows that it has paid only $480,000 on its bonded debt. The annual interest charge must be nearly seven hundred thousand dollars a year; and we add to this F. W. A. Supervision, etc., $296,- 587.19—or about a million dol lars. The Santee-Cooper could then pay that interest and su pervision money—about a mil lion—to the State. The loan of eight millions to the Co-ops might tie the Co-ops in with the Santee-Cooper, unless the several Court decisions would restrain the Santee-Cooper from operating indirectly — through the Central Co-ops. It is an old maxim of the law that one may not do by indirection or subterfuge that which he may not do directly. So my sugges- , tion that the Santee-Cooper lend the money to the Central Co-ops may not stand the test of the Courts. I asked a law yer friend what he thought of my suggestion and he replied that the Courts would not per mit the Santee-Cooper to lend, guarantee, sponsor or other wise collaborate with any ef fort to go beyond its defined territory. That sounds like a lawyer, doesn’t it — may not guarantee, sponsor, or other wise collaborate. Well, any how, there is the thirty five million surplus; Why shouldn’t the State use it? If the San tee Cooper should pay off its debt, the State might use the eight millions of the surplus left over. The State needs the money; like the Federal Government— though on a smaller scale— the State needs more money all the time. One notices that the Santee- Cooper pays the premium on a ten thousand dollar policy for each of its directors. One doesn’t know whether the pol icies are payable to the State or to the families of the di rectors. Unless there is some special, peculiar and aggravat ed hazard in being a director, it isn’t apparent why the San tee-Cooper carries the policy. It is possible—and quite like ly, that the Santee-Cooper feels that the passing of any of the gentlemen of the Board would be an insurable loss to the Cor poration. I have a couple of very special friends on that Board and I know that their departure would be a serious loss to other enterprises; and of course the same thought follows in this case. In conclusion I read on page 111 that the biggest customers of Santee-Cooper appear to be power companies and the Pitts burg Metallurgical company. If these are thrown overboard, there is one Co-op. mentioned. It uses less than three per cent of the sales indicated. A news release from Wasing- ton reports that Santee-Cooper is considering—or has been of fered—the use of all existing private power facilities to trans mit Santdfe-Cooper power to Co-ops throughout the State, paying a small transmission fee out of earnings and avoid ing new investment, new con struction and new debts. That sounds like the original idea of Manager Jefferies when speaking to the Federal Court. In any case, whether the San tee-Cooper lends the Co-ops eight millions of its surplus, or makes its own contracts with the Co-ops. transmitting its own power over existing lines, the legal question must come up again: Can the Santee- Cooper operate throughout South Carolina? I do not say that any of these proposals would stand the test of a chal lenge in Court. One naturally wonders why the Central Co-ops should have to borrow eight million dollars, under the sponsorship and resi duary lien of the Santee-Coop er, when the Santee-Cooper has a surplus of nearly thirty six milions on one hand, and power companies offer special rental arrangements for the transmission of power, on the other. What will the Courts and the General Assembly say? WANTED — Scrap iron, brass. copper, lead, zinc aluminum pewter, old batteries, radiators, all kinds of rags, old waste cot ton, mattress cotton. We also have a nice line of groceries. W. H. STERLING, VINCENT ST. Newberry Federal Savings and Loan Association 1§S|1$EI1 A Memo from General Dwight D. Eisenhower President of Columbia University ^1, - . Organizations and institutions—educational, social, humanitarian—supported financially by voluntary individual contributions are character istic of our way of life...evidence of our people's readiness to help each other. In their forefront is the American Red Cross. Once a year the Red Cross calls upon us all to help carry on its work. Each of us has his own personal reasons for answering this call. These are mine: To men in the Armed Forces, the Red Cross is a prompt, efficient friend in personal emergencies. To war veterans—particularly those confined to beds and wheelchairs in Veterans' Hospitals—the Red Cross remains a constant friend and counselor. And to all of us. the Red Cross is the recognized civilian disaster relief agency. It has the know how to meet human needs growing out of a large-scale national emergency. , For all these deeds and for the other services it performs, the Red Cross deserves our continuing support. You, too, can help through Your RED CROSS Give Now! PURCELL’S FINANCING — INSURANCE — REAL ESTATE REAGIN’S SHOE SHOP DAVIS MOTOR COMPANY JOHNNIE’S NEWS STAND & DO-NUT SHOP B. C. MOORE & SONS, INC. "BUY AT MOORE'S AND SAVE MORE" S. C. NATIONAL BANK SEARS-ROEBUCK & CO. AMERICAN LEGION POST 24 FEDERAL SAVINGS & LOAN ASSOCIATION ODORLESS CLEANERS MITCHELL’S GRILL 1209 FRIEND STREET BUZHARDT FURNITURE CO. NEWBERRY. S. C. G. B. SUMMER & SONS GILDER & WEEKS "THE REXALL STORE" SMITH’S DRUG STORE T. ROY SUMMER MRS. J. W. WHITE MILLINERY. BABY & GIFT SHOP HOME FURNITURE CO. FIRESTONE HOME & AUTO SUPPLIES SUSANA SHOP LIVINGSTON-WISE POST VETERANS OF FOREIGN WARS SERVICE FINANCE CO. 1506 MA^N STREET LOMINICK’S DRUG STORE NEWBERRY LUMBER CO. COCA-COLA BOTTLING CO. NEWBERRY CREAMERY SPOTTS GROCERY 1251 HUNT STREET A. W. GLASGOW & SONS CITY FILLING STATION "NEXT TO THE P.O. & JUST AS RELIABLE"