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.

PAGE TWO THE NEWBERRY SUN THURSDAY, NOV. 11, 1954 1218 Collegre Street NEWBERRY. S. C. PUBLISHED EVERY THURSDAY O. F. Armfield, Jr., Owner 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: $2.00 per year in ad vance ; six months, $1.25. COMMENTS ON MEN AND THINGS By SPECTATOR Loose Talk A Habit Are people inclined to be malevolent and malicious, or do many people talk idly, casually, sometimes cocksurely, with out real knowledge and without serious, honest effort to ascertain the truth? Now and then some question is debat ed, leading men taking opposite sides and oftentimes as serting as facts a lot of guesses, rumors, suspicions and sur mises. Eve been wondering about the contract of the Atomic Energy Commission with the Middle South Utility Co. and The Southern Co. As you know, the Tennessee Valley Authority, known as the T.V.A. is a vast electric power development sponsored, paid for and operated by the Government of the United States. After years of operation the advocates of Federal power and the friends of T.V.A. decided to enlarge T.V.A. into a mammoth power enterprise; it would not be just a convenient use of local conditions but would become a gi gantic power concern, with power the principal interest. As the problem of power for atomic energy presented it self the Eisenhower Administration opposed the spending of a hundred milion dollars, or more, for additions to the T.V.A. and suggested that private power should furnish the ad ditional power needed. This led to almost endless bickering —and the bickering has not ended yet. Fve just read that a banker of Arkansas, opposed to the Arkansas Power and Light Co., in opposing an application of that Company for an increase in rates, took occasion to throw mud on the contract for Atomic power, saying: “You’d better watch out for it or it will be a national scandal.” Then when a Senator asked this banker “Whether he knew any actual facts of the contract for providing power for the A.E.C., to back up his statement, or prediction, of a na tional scandal over the A.E.C. power contract, he said No.” Loose talking has become a habit. I have read so much about the contract between the A.E.C. and private power companies that I have requested two Government organizations to give me all the truth. I read something in The Charlotte Observer some weeks ago, an editorial, I think, on this same contract. It was headed: “DETAILS OF AEC POWER CONTRACT OPEN TO ALL WHO CARE TO READ THEM. “Some critics have taken us to task about our comments on the speech of Democratic National Chairman Stephen Mitchell. The chairman, they say, was not opposed to the idea that a steam power plant to supply the city of Memphis should be built by a private company. His chief objection, they tell us, w&s that no competitive bids were taken, that the contract was handed over to the Southern Company and the Middle South Utilities Company, without proper con sideration of a proposal by Walter Von Tresckow and as sociates to build the plant at Fulton, Tenn. “If our critics and Mr. Mitchell will refer to a statement prepared by the Bureau of the Budget on these two pro posals, they will find that the Von Tresckow offer received full consideration. This statement contains the terms of the contract offered by the Von Tresckow group, together with a detailed analysis of it, and another detailed analysis of the contract with the Southern Company and Middle South Utilities. “In view of this statement, Mr. Mitchell’s innuendo that there was some underhanded skulduggery about the con tracts falls flat, because all the details are there for anybody to read. “Mr. Von Tresckow is a financial consultant of New York. He was joined in his proposal by, three investment banking companies and three legal firms, and they intended to fi nance an engineering company in Kansas City in building the plant. No utilities company existed for operating this plant. It was purely a financial maneuver. The promoters do not own a foot of powenline or any of the other facilities for distributing power. “This group of financiers and the engineering firm would build the plant and get a fee of $4 million. After thirty years of amortization they would get their money back, with in terest. Then they would sell the plant to the TVA for one dollar, if TVA would assume all outstanding debts and cur rent obligations. “There is the joker in the whole thing. Congress has re fused to let TVA go outside its territory and build a steam plant at Fulton, Term., on the Mississippi River. But this Von Tresckow group would build the plant there and in tegrate it into the TVA system. At the end of 30 years, TVA by paying one dollar and assuming a few outstanding debts, would have its plant on the Mississippi River. It is a very neat scheme of circumvent Congress and for TVA to get its RENEWED PLEDGE OF VETERANS' DAY foot in the door for expansion outside the Tennessee Val ley. “The Atomic Energy Commission rejected this contract because, it was explained, it wanted a ‘firrn contract; that is, one under which the delivery of power would be guaran teed. Both the Southern Company and Middle South Utilities have been selling power to TVA in large blocks. They are old established companies that can be depended on to give the city of Memphis a dependable supply. The Von Tresckow company, which has not yet been organized, cannot give that assurance.” I don’t know anything about The Southern Co. or The Middle South Utilities; I have no friend or accquaintance with either Company; nor do they operate anywhere near South Carolina. This, then, is not a local issue, but it is of interest to all of us because it is a matter which comes be fore us as citizens of the United States. “The contract (for construction by private utility interests of a plant to supply TVA with power to supplement TVA’s service to AEC) has not yet been signed. It probably will not be signed until the Joint Committee on Atomic Energy meets and decides whether or not to approve it. Representative Cole (R., N. Y.), who heads the joint committee, expressed confidence that the contract would be approved ‘unless there is some stark, glaring objection’ which did not appear when the committee first considered the general terms of the contract. Opponents of the contracts are centering their fire on a provision guaranteeing the Dixon-Yates group a 9% re turn on its equity capital investment. This provision lepds itself to misinterpretation which general publicity so far has not clarified. Some 95 % of the total investment ($107,- 250,000) will be raised by issuing 3-5/8% first mortgage bonds. It is on the remaining 5%, representing equity capi tal investment, that the 9 % return will apply. The over all rate of return, as figured by the company, will approximate 3-3/4%. But such explanations are not likely to make any impression on certain critics, which are out to discredit and defeat this contract in any form.” As I said, I hope to have something clear and definite to offer through Spectator. One very singular feature is that one banker is throw ing mud on the contract, apparently being in favor of the bid of a group of New York speculators, who seem to be more or less in the condition of bidding for an immense job with no known facilities for the work. Down at bottom this fight by a New York syndicate ap pears to be a clash between the Government and the AEC on one hand, and some disgruntled bankers on the other. Seasonal Business Problem » We Americans want every man to have a job; and every family to have a full pantry and abundant meals. Sometimes our industries have to shut down; sometimes demand is so slack that business operates at a loss. It frequently happens that a business continues to operate even at a loss. But it has to have money set aside for that, or it must be able to borrow. We have some kinds of business which are seasonal. For example, overcoats are not in great demand in July. Re membering the July of 1945 a small bow-tie was almost op pressive, don’t you think? But American industry is trying to avoid seasonal business; that is why so many great enter prises are constantly diversifying; they try to produce dif ferent artices so that they may operate full time. That is a great problem of management and management is try ing constantly to solve it—and doing a great service to us by the effort. Consider coal, soft coal: Normally there is more demand for coal in September, October, November, December, Janu ary and February, perhaps, than in other months. What are the miners to do in slack months? Then the problem of the O NE of the most important ac tions expected here following the elections will be the Supreme court decision on how to imple ment the anti segregation decision so as to put the ruling into ef fect as the law of the land. Several states or communities are already proceeding to abide by the court’s ruling without waiting for the full decision to be handed down. There has been trouble in some areas, but no attempt has been made to enforce the decision in southern states where feeling about segregation runs high. Some states, (Mississippi already has done so) plan to abolish their pub lic school systems and make all schools private, supported by pub lic funds, to evade the issue in the public schools. * * • There are some faint signs of a business pickup according to reports from government agen cies. Such reports however, are not borne out by unemployment figures or employment figures either, for that matter. While the rate of unemployment has been somewhat retarded, usually the Fall months show a much larger ratio of emplpyed, as school age youngsters return to their class rooms, and as the fall and winter business upturn takes place. * * * In the farm field, new lows are expected in farmer income before there can be any betterment. The government reports there is plenty of credit for the farmers, hut the fact is there are huge increases already made in farm debt. The farm income for 1954 will likely be the lowest in a decade. Some brighter spots are seen in an in crease in exports of farm prod ucts, mostly cotton. The figure amounted to a total of $213 mil lion in July, an 8 per cent in crease over last July. Customarily exports of farm products reach a low point during July of each year and the volume for the month this year was $54 million below the June total and the lowest for any month since January. At the same time Agri cultural imports have been cut about 9 per cent from July last year, or about $300 million for the month. However non-competi tive imports such as rubber, cof fee, carpet wool accounted for about $172 million of the total. * * * The Federal Trade Commission has given the Cigarette Comp?* nies another chance for Voluntary cooperation before the FTC cracks down on false and misleading ad vertising. As a result you have seen a decided change in the trend of cigarette advertising. The FTC has told the manufac turers they will not be permitted to tell the people that smoking cigarettes are beneficial to health in any respect; or that smoking any brand of cigarette is not harmful or non-irritating; that by virtue of the length, or filter meth od of manufacture, or any other reason that one brf(nd of cigarette contains less nicotine in the smoke, or tars or resins than any other brand; that they cannot refet to the throat, larnyx, lungs, nose, digestion, nerves or doctors, in their advertising; that they should not use any phase or word to imply medical approval of any cigarette. From the Dmxc&nnoe Record, Duncannon, Pennsylvania: It has long been a favorite opinion of metropolitan writers that small towns are the places where every body knows everything about ev erybody else. While this world- startling piece of information is given with a smug shrug, the great big boys from the city overlook one thing, when it comes to being small-town no one can beat a good press agent I will not deny that residents of small towns have a lively inter est in the affairs of their neigh bors. And it is not entirely ac cidental that they know all the details about a person's family from the time it staggered ofi the cattle-boat from Yurrup. But the details that can be sketched in, eagerly, at the drop of a loud word or the expulsion of a way ward daughter, are often tinged with sympathy. The difference in the big-time (the world of stage, screen and ridiculous) is that the details of the past are not only embroidered with callousness, they often are augmented by the im aginative qualities of press-agen- try In the small town we can get in a scrape and know that it will liv€ with us forevermore; in time, actually, will become so much a part of town lore that we would feel uncomfortable if it was not mentioned when the neighbors considered our progress But at least it would not be spread over the front pages of the paper—any paper—and part of it would al ways be suspect, not concrete fad Of course, you have to live in a small town a long time be fore you can reason this out enough not to go mad when some one says they knew the success when he was a bum • • . From the Westbrook Sentinel. Westbrook, Indiana: Has it ever occurred to you that in our social system the politician is enabled to reach a position of responsi bility without having any train.- ing? / He serves no apprenticeship. He masters no course of study. He need pass no examination as to his ability. He receives neither a diploma nor a license to practice The veterinary who doctors our dogs and cats is required to show more careful preparation for his calling than the politician who seeks to assume the right to di rect much of our personal life. Dale Carnegie — - . • * ^ AUTHOR OF "HOW in STOP WORRYING AND START LIVING" O NE year after she was married. Nadine Cloud, 30 Monroe Street, New York, New York, went far away from home to live and she was very homesick. Missing her parents and her sister terribly, she became obsessed with an unreasoning fear that something dreadful might happen to them while she was away. She brooded over this al most constantly, nearly driving herself frantic with worry. Her husband was patient and understanding. 'He had to be/* she says, “to put up with me/* He sug gested that in order for her to overcome her ground less fear, she find some new and absorbing inter est to occupy her mind. She* agreed, but did not know exactly where to turn. Then, one afternoon at a cocktail party, she met a very talented sculptress who had a .studio in Hol lywood. They became close friends and one eve ning she told her what her husband had suggested. Immediately she said, ‘‘Why not try sculpture?** At CARNEGIE first the idea seemed fantastic but she decided to try it, and became so completely absorbed in it, that she soon forgot . all her fears and worries. Not only that, but she derived great pleas ure and satisfaction in doing something creative. That experience taught her something ’which stood her in good stead years later when she had real fears to conquer. What it taught her was simply this: busy people are happy people, they have no time for fear and worry. miner is made more acute by competition with gas and electricity. Suppose two or three hundred great manufacturing estab lishments closed for a month. Could the power Co. shut down ? It would operate at a loss. As I said, nearly all busi ness operates at a loss, sometimes. loose talk of 9% on the whole investment reminds me of some careless, malicious or ignorant talk in our own State. You’ve heard it said that the State guarantees 6% to our power Companies. The State does not guarantee one, soli tary nickel; it holds down the power Companies to 6%. Quite a difference? It’s How You Look At It Slipshod talk is too common. The Company provided the additional power for AEC may possibly receive 9% on $5,- 000,000, but the entire risk is about $107,000,000. The over all profit may be only 3 3/4%—not 9% by any means. The We can easily become excited over politics and scandals, but we need bread and meat to maintain our vigor so that we may, perchance, indulge in exchange of views and specul ations on the live topics of the neighborhood. 1 '/ 1 r ' " ' a t Tr\~? Q—What is meant by the phrase, “the supreme law of the land?” A—The constitution, plus laws of the United States made “in pursuance of” the constitution, and treaties made under authority of the United States, constitute the supreme laws of the land? Judges are bound by them regardless of anything in separate state con stitutions or laws. Q—Does a naturalised citisen of this country have the same rights as a horn citisen. A—Yes. Except that he may not become President of the United States. Q—Can yon tell about how much paper money is printed? A—As of a recent date, about $44,000,000 worth daily in various de nominations. , i Q—What is done to mutilated or worn out currency? ^ A—The Treasury at its big money factory in Washington has laundry machines where badly soiled curfency is washed. Money so dirty or mutilated as to be unfit for use is ground into pulp and made into paper again for reprinting at the bureau of printing and engraving. Q—What generals have been awarded the five-star rank in the U. S. Army? A—Generals Grant, Sherman, Sheridan, Marshall, Mac Arthur, Eisen hower, Arnold and Bradley, all have been five star-generals with the rank of General of the Army. Hie only rank above five-star is that of General of the Armies, which has only been held by Gen eral Pershing. Q—Is the Federal Bureau of Investigation an autonomous agency? A—No. The FBI is a Justice Department Agency, or in effect the in telligence agency of the Department of Justice. Congress, how ever has given it many other duties, some not within the realm of the Justice Department.