Eugene register-guard., April 13, 1962, Image 13

ElOtttC
ALTON F. BAKER JR.
Editor and Publishtr
EDWIN M. BAKER
General Manager
RICHARD A. BAKER
Managing Editor
ROBERT B. FRAZIER
Aaociate Editor
A. H. CURREY
Associate Editor
14A
EUGENE,
Red Ink May
Columnist David Lawrence writes to
day in defense of the steel industry.
Price increases announced by the indus
try this week are, he says, justified for
sound business reasons. In any event,
he implies, it is not proper for the Presi
dent of the United States to question
what private industry does in such
matters.
Strictly from the bookkeeping point
of view, Mr. Lawrence may be right
about the steel industry's financial
needs. However, when viewed from the
standpoint of total national interest,
there can be no question that President
Kennedy has reason, and the duty, to be
concerned that other industries may now
follow steel into another round 'pf price
inflation.
Because of its bellwether status in
our national economy, what steel has
done apparently without warning to
the President could easily upset the
Kennedy administration's strategy for
meeting an economic crisis without mod
ern precedent. Months ago President
Kennedy called upon American labor
and management to face the realities of
increased economic competition from
abroad, to fight back by producing more,
by reducing costs and by forgoing
temptations to seek wage or price in
creases not justified by increased pro
ductivity or absolute necessity.
Enlightened self-interest has been
the motive President Kennedy has tried
to instill in all Americans. More dollars
mean nothing in either pay envelopes or
company ledgers if they are robbed of
value through inflation. And, if the gain
ing of them leads to pricing U.S. goods
out of markets at home and abroad, net
results can only be recorded in red ink
and increased unemployment totals.
Some economists are now saying
that, actually, the $6 a ton increase in
the price of steel won't make a big dif
ference in the overall level of U.S.
. prices. But the psychology of economic
restraint certainly has been affected. It
now will be increasingly difficult for
President Kennedy to counsel big busi
ness and big labor that they must work
Assist
The aim of the post office depart
ment is laudable enough. It wants to
wipe out its $850,000,000 annual deficit.
It proposes that rates for magazines and
newspapers, now going second class, be
raised 1 cent each. The proposal is
frowned upon, of course, by magazine
publishers. The public is too likely to
regard the publishers' opposition as a
manifestation of economic greed. Some
facts ought to be laid out clearly:
This second class privilege is not par
ticularly important to daily newspapers,
including this one. It is quite Important,
however, to little weekly papers that
distribute local news over vast reaches
of sparsely populated country.
Jt is not a life-or-dcath matter to
the great magazine corporations. They
can raise rates themselves, and other
wise learn to live with an increase. It is
vital, however, to the weaker magazines,
those with limited circulations, low mar
gins of profit and high costs.
It is not particularly important to the
trashy magazines. They are sold, for the
most part, on the news stands. It does
mean a lot to the quality periodicals,
with limited advertising and small circu
lation. Among the magazines that need
this second-class advantage are Harper's
and the Atlantic, The New Republic and
the National Review, The Reporter and
things of that sort. They aren't making
much money now. Atlantic, with 282,00
subscribers, made a profit last year of
$12,60,5. If the revised pbstal rates go
Into effect, it will operate at a loss of
$79,000 unless it raises the price.
It is not in the public interest that
yiese quality magazines should be ever
more costly to the readers. Th's has bcSi
recognized sWe George Washington's
day. It is in the public interest, and thuj
In the government's interest, that thc8
circulation be wide. JTiey perform an es
sentially educational function. The sufo
' o
lAMI COMffYl MK1 HCWfPJ
AN INDEPENDENT NEWSPAPER
ALTON F. BAKER, Publisher, 1927-1961
The Regltter-Guard't policy u the complete and
impartial publication in itt newt paget of all
newt and statements on newt. On th.it page, the
editor of the Regitter-Guard offer their opinion
on event of the day and matter of importance
to the community, endeavoring to be candid but
fair and helpful in the development of construc
tive community policy. A neupaper t a
CITIZEN OF ITS COMMUNITY.
Published every evening and Sundiy morning
by the Guard Publishing Co.
OREGON, FRIDAY, APRIL
Blot Out Steel's New Profits
13, 1962
with his administration to protect the
international position of the dollar.
What positive alternative might the
able managements of steel have em
ployed to avoid price increases at this
time? Certainly they would have been
wise to take their price, profits and mill
modernization problems to President
Kennedy for careful study and discus
sion. Now, by putting him in a position
where he must oppose them or appear
as the biggest hypocrite alive, leaders of
the steel industry seem to have deliber
ately invited presidential wrath in pref
erence to help and understanding.
President Kennedy was full of praise
for the steel industry and the steelwork
ers' union when they recently negotiated
a new contract, without a strike and,
as it then appeared, without giving the
wage-price spiral another twirl. The
President also has on several occasions
indicated that he is quite aware of the
profits squeeze affecting U.S. industries
and their abilities to retool to meet for
eign competition.
In this atmosphere it would not have
been "knuckling under" for leaders of
the steel industry to have consulted with
the President about their problems.
They stood to win points in any such dis
cussions and to gain concessions which,
in the long run, could have been much
more meaningful than a 3.5 per cent
price increase. They also had an oppor
tunity to assist a national anti-inflation,
business-spurring program which has
been endorsed, at least in principle, by
the U.S. Chamber of Commerce and
many authorities in finance and in
dustry. All things considered, the steel in
dustry's price action seems almost naive.
It obviously won't do anything to pro
mote the increased sale of American
made steel, here or abroad. And, even
if it does increase the gross profits of
American steel firms for a brief time, it
may trigger more than enough inflation
to erase the actual value of those profits.
Worst of all, if such proves to be the just
deserts of the steel industry, these des
erts will be shared, justly or unjustly, by
the entire nation.
sidy they now enjoy is a subsidy that
goes back to the birth years of the
nation.
Similarly, Congress has recently pro
vided more than $50 million with which
television stations can expand their edu
cational offerings. That's in the public
interest, too. The $50 million subsidy for
television is almost the amount ($53 mil
lion) that would be raised by the postal
rate increase.
These magazines, especially the
quality magazines, are in financial trou
ble. This is no time to abandon the
government's historic policy of giving
them a sorely needed assist.
The Symphony
The look of spring is on the land, and
so are the smells. But don't forget the
sounds of spring, that neighborhood
symphony that plays into the lengthen
ing evenings.
In the overture, birds twitter outside
the bedroom window. Through the day,
the orchestra plays softly. The music
gains momentum about 5 o'clock. Traffic
on the residential streets picks up a
little. The sound of children at play is a
delicate counterpoint to the distant roar
of the power lawnmower. This is punctu
ated by the chuckle of a pheasant off in
the brush.
The music changes abruptly about 6.
That movement opens with the call of
children to dinner. The music grows
softer, with only a few barking dogs,
sometimes nearby, sometimes in the dis
tance. It picks up again, then, for the
sounds of tag and kick the van, and again
the roar of the ubiquitous la.vnmower.
The last movement opens with bang
ing of garbage can lids. Birds twitter, as
thev did in the overture. This is replaced
by the croaking of frogfc And so the
synfphony ends croaking frogs, crick
els, an occasional dog and the romantic
activities of the fclinwor3.
.
David Lawrence
JFK Poke at U.S. Steel
Called His Worst Blunder'
WASHINGTON President
Kennedy has made perhaps the
worst blunder of his political
career. He has delivered a
severe blow against the sound
system of pri
vate capitalism
in America.
The statement
t h e President
made to his
Wednesday
press confernce
not only im
pugned the in
tegrity and pa
triotism of the
various execu- Lawrence
tives who manage one of Amer
ica's biggest industries steel
but, in effect, told other busi
nessmen that, when their costs
go up due to labor-union extor
tions, they must absorb such
costs without increasing their
prices. If they attempt to fol
low the simple rules of sound
economics, they are to be pil
loried as in "pursuit of privale
power and profit."
This is the most discouraging
news event in many years es
pecially for investors. For it
tells the businessmen of Amer
ica that their fears of the Ken
nedy administration as a dema
gogic champion of labor unions
and as the foe of business have
been justified.
Without waiting to examine
all the facts on both sides, Ken
nedy spoke impulsively and
gave the impression that he had
never read the statement issued
on Tuesday night by the U. S.
Steel Corp. in announcing its
reasons for an increase in prices.
Yet he called its action in rais
ing prices "a wholly unjustifia
ble and irresponsible defiance
of the public interest." With bit
terness unbecoming a president,
he threatened reprisals through
the Federal Trade Commission
and the Department of Justice.
No such words of intimidation
have come from any American
president in the last 50 years.
The threat to use punitive pow
ers will prove to be a psycho
logical discouragement to indus
try leaders throughout the
country.
'Suddenness'
Kennedy didn't reveal any
knowledge either of just how
prices are developed competi
tively in industry. He talked as
if he didn't know that the larg
est company usually takes the
lead and the others follow. This
is the result of the antitrust
laws of the day. He spoke of
the "suddenness" of the deci
sion of many companies as if
for several months now every
one in the industry hasn't
known the approximate increase
in labor costs to be expected
from the labor-union settlement
and the impact it would have
upon prices.
Those present at the Presi
dent's press conference did not
interrogate him on the points
made by the V. S. Steel Corp.
in its statement. The so-called
"equal time" privilcg on tele
vision wasn't in operation at
all. How, therefore, will the
American people ever get both
sides of the argument and be
enabled to make up their minds
whether the polemic statement
issued by the President reallyt
rebutted the basic reasons given
by the steel companies for their
action?
It's only fair to present the
other side. Businessmen will
understand it, even if the Presi
dent nimself doesn't. Here is
what the 1Q S. Steel Corp. said
in part:
tlSj is. f?
'It's Your Baby!'
'"Since our last over-all ad
justment in the summer of 1958,
the level of ateel prices has
not been increased but, if any
thing, has declined somewhat.
This situation, in the face of
steadily mounting production
costs which have included four
increases in steelworker wages
and benefits prior to the end of
last year, has been due to the
competitive pressures from do-
tttfSSS&'EK
well as from other materials
which are used as substitute!
for steel.
Pressures Undiminished
'The severity of these compe
titive pressures has not dimin
ished: and to their Influence
may be attributed the fact that constitution preserving our per
the partial catch-up adjustment sona, freedoms. The ..Biu ot
announced loaay is sucsianuai-
ly less than the cost increases
which have already occurred
since 1958, without taking into
consideration the additional
,uhii. ...in ...i, i .u.
new labor agreements which be
come efffective next July 1."
The steel corporation empha-
sized that its last annual report
had shown clearly "the effect
of the profit squeeze," and then
added:
"In the three years since the
end of 1958, United States Steel
has spent $1 billion 185 million
for modernization and reolace-
mcnt of facilities and for the
development of new sources of
raw materials. Internally, there
were only two sources from
which this money could come:
depreciation and reinvested
profit.
"Depreciation in these years
amounted to $610 million; and
reinvested profit, $187 million
or, together, only about two-
thirds of the total sum required.
Public Borrowing
"So after using all the income
available from operations, we
had to make up the difference
of $388 million out of borrow
ings from the public. In fact,
during the period 1958-1961, we
have actually borrowed a total
of $800 million to provide for
present and future needs. And
this must be repaid out of prof-
its that have not yet been
earned, and will not be earned
lor some years to come.
"During these three years.
moreover, U. S. Steel's profits'
have dropped to the lowest lev-
e Is i nn 1952: wh o riinvtH
profit which is all the profit
there is to be plowed back in
the business after payment of
dividends has declined from
$115 million in 1958 to less than
$3 million last year."
Small wonder that steel shares
in the stock market have been
dropping in value recently, par
ticularly since it became appar
ent that the new labor settle
ment would cost the industry an
estimated $100 million a year.
Only a modest rise in prices
is coming. It means 65 cents
extra in the cost of a washing
machine, or 51 cents more on a
refrigerator, or an extra $8 to
$10 on an automobile that is
priced at $1,500 or more.
Yet this, under the Kennedy the states use either their legij
administration, is regarded as laturcs or call special conven
a sin. lions to ratify amendments. Can
Orvricnt, t;. , York Hciid
Trlfcine Inc.
So They Say-
t don'Pthink the country ii
stand another three years of
the Kennedy administration.
?n. Barry Goldwiter, D-Arls.
Congressional Quiz
Questions
. Concerning
Constitution
Prom Congressional Quarterly
The Senate recently approved
a constitutional amendment bar
ring i poll tax as a qualification
for voting in federal elections
and primaries. This amendment,
if approved by the House and
ratified by the individual states,
would become the 24th Amend-
ment to the Constitution. This
ouiz tests your knowledge of
constitutional amendments and
the amending process. Try for
four correct answers.
Q The "Bill of Rights" is
the term applied to one of the
most important parts of the
Rignts.. is 8ctualy (a) tne 5tn
Amendraent; (b) lhe first 10
amendments; (c) the 13tn, 14th
and 15th Amendments.
. ... ,. ,. . , ,
A (b). The first 10 amend
ments were ituiueu ueiween
1789 and 1791, when the Con-
ctilntinn itcalf uroa haint an.
proved b the stateJ
0 In many cases, witnesses
' court cases and congressional
investigations have invoked the
fth. Am"dmeIV,0 the,.COnsti"
tution What right are they in-
vokln-
A The guarantee that a per
son snau not tie required to
testify against himself in a cri
minal case. The courts have in
terpreted this to include testi
money before congressional com
mittees. Q The most recent amend
ment to the Constitution is the
23rd. It provides that (a) the
President shall be limited to
two terms; (b) women shall be
allowed to vote; (c) residents
of the District of Columbia can
vote for president.
A (c). The D.C. vote amend
ment was ratified March 29,
1961.
Q Only one amendment to
the Constitution has ever been
repealed. What did it involve?
A Prohibition. The 18th
Amendment prohibited the
manufacture and sale of intoxi-
eating liquors. It was repealed
by the 21st Amendment.
Q A constitutional amend-
ment must be approved by a
vote of cach chamber
wungieM una 01 me
states. Fill in the blanks from
the following possibilities: (a)
a majority; (b) two-thirds; (c)
three-fourths; (d) all.
A In Congress a two-thirds
vote is required and three
fourths of the states must rati
fy. Q True or false: After an
amendment is approved by
three-fourths of the states it
must be signed by the Presi
dent? . A False. An amendment be
comes part of the Constitution
at the moment -of ratification by
the 38th of the 50 states.
Q The Constitution specifies
that Congress can direct that
eou name the only constitution-
al amendment for which Con
gress required special state con
ventions for ratification?
A The 21st Amendment.
Congress used this method to
avoid the entrenched influence
in many slato legislatures at
Qthat time of the Anti-Saloon
League.
J In the 'Editor's Mailbag
Selection of Queen
EUGENE (To the Editor)
Although I have nothing against
the University of Oregon, or its
coeds, I am of the opinion that
the queen and court of the
White Water Boat Parade should
not be selected from this source.
After all, whose show is it? It
is sponsored by the McKenzie
River Guides, not the univer
sity. In previous years, the queen
and her court have been select
ed from McKenzie River High
School or from one of the towns
along the river. The people in
the McKenzie River area work
very hard to make this event a
success, and it seems unfair
that one of tehir girls did not
have the opportunity to become
queen.
A U. of O. alumna,
SUSAN E. ANDERSON
(Mrs. James H. Anderson)
1790 15th Ave. W.
DST and Politics
EUGENE (To the Editor)
Why is it so important to the
economy of this state to adopt
DST? Is it really worth nullify
ing the vote of the people? The
governor and the Legislature
nullified our votes this time, but
will the next governor and Leg
islature nullify theirs? Where
does it stop? Does when I get up
and go to bed justify throwing
our votes in the waste-basket?
Mr. Montgomery, who has ad
vocated DST for years, voted
against this confusion bill last
session. Does this make him a
man who respects the voter, or
was he just playing politics?
I'd rather believe he respects
the voter. He is undoubtedly a
member of the chamber of com
merce, who push this to the
hilt, but still he respected our
vote. For this he should be com
mended, and he has earned my
vote next November. (I can't
help him in ,the primary be
cause I'm a registered Demo
crat.) The DST issue is relatively
unimportant, but I would like
to have the people who were
responsible for this mess justify
it publicly. (I doubt that they
will.) I think we have the right
to know, because I believe the
people of Oregon have the men
tal capacity to express a rela
tively intelligent opinion. I don't
think those in the Legislature
or the governor have the right
to nullify our vote because they
think we are stupid. We may
be, but I'm sure that most of us
are literate people. If those
people have something to sell
that has merit, people will buy
it. Sell us your idea, but don't
try to slip it in by the hack
door or don't literally force it
on us. All you have accom
plished this time is make us
doubt you and create a time
mess. May primaries are not
far off.
WALDO E. HILL
Rt. 4, Box 108.
Leisure and War
COBURG (To the Editor)
Today man is working to make
this a push-button world, not
taking into consideration what
God says about it. Today things
in this world are changing fast.
Man has more time, and what
is he doing with that time? Does
he spend more time in the
House of God? No. Does he
help the needy? A few do, but
too many keep their minds busy
on devising ways and means to
invent useless things.
I'll admit it would be nice to
see our loved ones on the other
end of the telephone line when
we get a call, but for goodness
sake get the women to get rid
of the Jackie Kennedy hair-do.
They are bad enough to see in
real life and pictures in the
newspapers; don't punish us
over the telephone, too.
The magazine Changing Times
has an article on the push-button
world of tomorrow, stating
leisure time will be abundant.
But what will people do with
it? It now is a problem.
We are just a bunch of mis-
Carmichael
ITfc MoT vH? BaP
M00P4 THAT BoTMtS,
1 I L I I S ' I ' VtJ
guided human beings here on
Earth who have listened to the
Russians brag abput what they
are going to do, and we try to
keep up with the Joneses. The
third World War is aurely go
ing on right now, started by the
Russians right after the close of
World War II. But it is a war
of psychological warfare of
propaganda, infiltration, subver
sion, demoralization. It is war
fare that has attacked our
minds, our moral and spiritual
values, rather than our bodies
and our earthly possessions.
What our leaders fail to
grasp in our struggle with Rus
sia is this: We are not fighting
a single nation in a military
war, but a gigantic world-wide
plain-clothes army, masquerad
ing as a political party, seeking
to conquer the world with an
entirely new kind of warfare.
It is the kind of warfare either'
the heads of our government
don't understand, or else don't
want to understand. Russian
leaders use every kind of propa
ganda they can think of to weak
en our morals; sabotaging our
educational system, wrecking
our social structure, destroying
our spiritual and religious life,
wrecking our industrial and eco
nomic power, demoralizing our
armed forces. They intend to
overthrow our government by .
force and violence. All this is
being done under one word,
communism. Man does not seem -to
make any effort to stop them.
I wonder if God will before it
is too late.
We need somebody in our
State Department who knows
how, and has the nerve to say
"No."
ALBERTA HULSEBUS
Box 92.
'Uniformity'
EUGENE (To the Editor)
More power on articles like you
had in last Sunday's edition . . .
" 'Uniformity' and How to Ap
proach It" . . .
I've been battling this issue '
for years now, every time the
heat is on . . . Seems like one
stands alone, though. But, just
to satisfy myself, I try and get.
the last word in . . .
I don't dare let myself start
expounding (in writing), what
I have said verbally . . . Again,
keep it up . . .
MRS. JOHN WENDEL
3366 Donald St.
Millrace
EUGENE (To the Editor)
In reference to your editorial
in relation to the architects' pro
posed rehabilitation of the Mill
race, apparently you were not
at the luncheon Friday when
the architects clearly stated that -what
was proposed was primari-'
ly an idea and direction. None
of the details nor refinements
have been incorporated as yet. .
They are more interested in
feeling out public support and .
opinion.
Certainly your suggestion of
adequate lighting, at least to the
level of any normal public
street, will be incorporated. I
am also sure that if the police
department considers this area
a "back alley" they will per
haps assign a patrolman, on
foot, whom I am sure the exer
cise would not harm.
I was not a resident of Eu
gene when the romantic Mill
race, without lighting, police
protection or controlled banks,
was in operation. If you are
concerned about the moral as
pects of the proposed strip park,
I am also sure you overestimate!
the morals and social conduct
of the generation involving your
youth in relation to the roman
tic canoe-filled moonlit nights
on the old Millrace.
Rather than your "great idea,
hut creating another back al
ley" observation, why not be a
little more envisionary as to
how wonderful an element of
this type really could be in re
lation to all the inhabitants of
Eugene and also as a reflec
tion upon a progressive and en
lightened community.
At this point we should not
be too overly concerned with
easily solved details; it is your
reaction to the total scheme of
things which is more important.
OTTO POTICHA
350 Ful-vue Dr.
Library Schedule
EUGENE (To the Editor)
Eugene has a beautiful library,
and we are very proud of this
fine building. But I feel, along
with many others, that it could
be of more service to the people
of the community by being open
to the public on Sunday after
noon and on holidays.
For many, this is about the
only time available to them to
visit the library for a little re
search or reading.
EDITH B. DAVIS
1159' Mill St
MEMBER Or
THE ASSOCIATED PRESS
The Associated Presi Is entitled
exclusively to the use tor republi
cation of all the local news printed
In this newspaper.
MEMBER Of THE AUDIT UREAU
Or CIRCULATIONS
Serrlcl United Press International
WILLIAM WASMANN, News Editor
DO.NJI L. BQNHAM City Editor
ROSS G. JOHNSON,
Advertising Director
JARL KUGH Circulation Maufar
ROBERT K. BERTSCH Promotion
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ARXt STROMMER Production