PACK, f
HERALD AND NEWS, Klamath Falls, Orcein
Sunday, April i, IMS
fcdihftmL (paqsL
"Insurance" is an attractive word. Al
most everyone has some life, accident, fire,
theft, hospitalization, liability. It is protection
against adversity.
But the word can be used in a misleading
way. And that is true of the current effort to
apply the "insurance" tag to the bill which
got nowhere in the last Congress, but is up
again in this one to finance various meas
ures of health care to everyone drawing social
security benefits.
The hill is called, on page one, a "Hos
pital Insurance Act." But if anyone will fight
his way through to page 62 (which, one can be
sure, extremely few will do) he will find that
the payments are described as taxes rather
Marching Doesn't Cure Bomb Danger
There is a certain monotonous rhythm to
the "peace marches" of the ban - the bomb
crowd in Britain and elsewhere.
Lately, however, some British partici
pants have offered a touch of variety by
storming an underground headquarters and
trying to scale the Walls of Windsor castle.
The onlooker can only wonder at the mis
direction of effort. We are'talking, of course,
about genuine pacifists, not the Communist
phonics who try to use "peace" as a weapon
in their undeclared war.
No doubt the pacifists will continue to
argue that their energies are not misguided
so long as they make headlines in the news
papers. They equate publicity for their cause with
advancement of It. But more often than not
this Is pure fancy.
This does not mean that British, Canadian
and perhaps some other politicians have not
chosen to take note of vigorously expressed
ban-the-bomb sentiments.
The point is that these activities have not
produced any serious free world disarmament
negotiations that would not have occurred
IN WASHINGTON . . .
w
By RAI.ril de TOI.EDANO
Rumors tliat the Senate For
eign Relations Committee inves
tigating lobbying by foreign gov
ernments has sunpoenaed the rec
ords of charity organization
have led to speculation as to the
course being taken. Until the
committee reports, it would be
unlair to characterize its work
although to pry into the books of
respected and bona tide chari
table group seems somewhat du
bious. But some klea o( what may be
expected is possible w hen the past
action! of the committee's spe
rial consultant, Walter H. Pincus.
are examined. Mr. I'incus Is very
close to committee chairman .1.
William Fulbright and is consid
ered the real bird uog of the
outfit, lie has. in the past, been
a freelance writer. A series he
wrote in collaboration with Don
Obcrdorfer, ran in the Washing
ton Post and caused a consider
able outcry on Capitol Hill.
Where Mr. Pincus stands in the
Lell-tn-llighl lineup is a matter
lor ol tiers to determine. But cer
ium fai ls about him are of Inter
eft when his association with a
sensitive Investigation by a Sen
ate committee Is considered.
Here again. I draw no conclu
sions but simply slate the facts
as I have been able to gather
them.
Fur example. Mr. Tincus attend
ed the 7th International Youth
Festival, a Communist propagan
da kpedacle held in Vienna dur
ing July I!i9. The American dele
gation was led by Paul Robeson
Jr.. and several Amei leans who
attended in order to try to turn
the propaganda guns on the Reds
weie roughed up A rival "non
Communist" delegation was not
sealed.
At Hie Youth Festival, a num
ber of strongly anti-Communist
Americans were present the job
tiiey set for themselves had been
tiie sabotage ol Communist plans.
Mr. Pincus has said that these
were his motives. II so. he was
remarkably rimimct In his
counter-propaganda, and in an or
ganization lightly controlled by
Moscow, Mr. Pimus became a
member of the Steering Commit-In.
A Tax Is Not Insurance
A 'Special' Consultant
The newspaper series which Mr.
Pincus co-authored, included an
attack on the House Un-American
Activities Committee. It prompted
the committee's chairman, to state
on the floor of the House that it
was "a concoction of half-truths,
untruths, smear, and innuendo"
and that it "directly played into
the Communist hands."
That Mr. Walter should be an
gered by an attack on his com
mittee is understandable and in
no way proves his charges
against the series. Criticism ol
the House Un-American Activities
Committee is not a monoply of the
Right. 1-cft, or Center. What is
disturbing, in view ol the Pincus
position on the Fulhright commit
tee, is the fact that in a number of
instances, he ignored evidence
presented to him by the commit
tee and made charges running di
rectly counter to the facts, ac
cording to Mr. Walter.
A special kind of hanky pankv
was employed to make nnti III AC
points. The newspajier series stat
ed that HUAC's staff and mem
bers had borrowed hooks and pc-rindu-als
from the Library ol Con
gross, that these books had never
been returned, and that they h id
been paid lor with taxpayers
dollars. Tlie facts and this was
demonstrated to the authors of the
series were that the old Pies
Comniiilee. before it was abolished
and IIUAC created. h.M b n r
rowed a large number of bonks
for use in a survey many years
ago. Some were lost and this was
discovered in a Library of Con
gress inventory in VSA At Mr
Walter's direction. Ill AC paid I he
bill for the now-defunct prodivr
sor committee.
The series which Mr. funus
co-autlwred also charged thai
IIUAC had been holding a "road
show," moving from city to cit.
presenting the same evidence and
the same witnesses in order to
make headlines all at a cost in
the taxpayer. The falsity of this
charge was explained to Mr. Pin
cus and his collaborator and a
casual reading of lianscripis
would have corroborated the de
nial but the charge was novel
tlk'less male
Mr. Pincus has attempted this
technique on the Fill, to wh.ih
than premiums. And page 62 is the truthful
one. Social security payments are taxes
and not premiums. Social security offers no
contract, as an insurance policy docs. The taxes
collected for medical care, for example, would
not be set aside for the future use of the tax
payers, under an actuarial system, but would
he used on present beneficiaries.
The courts have held that these taxes are
exactly that taxes. And so has the Internal
Revenue Service, which has placed liens on
"delinquent taxpayer accounts" within the
Social Security System.
' Let government medicine, socialized med
icine, be debated to the limit. But let's not
accept misrepresentation which is exactly
what calling a tax an insurance plan is.
without the peace marches. Free world lead
ers do not need pacifists to tell them the
perils of nuclear war.
Is the pacifists' parading really the tri
umph of sensitive human intelligence which
its honest advocates imagine it to be?
Or is it just an easy way out for people
who haven't the stomach to tackle the prob
lems which have given us a world society in
which nuclear confrontation is possible?
Sir Winston Churchill, then a voice al
most alone, said it far back in the 1920s when
he told the world that the way to achieve dis
armament is to solve the problems that lead
nations to arm.
Aside from some militant and often ig
norant persons (perhaps most of them in Red
China) who do not know or care about the
danger of nuclear ruin, people all over the
world want to avoid it.
The pacifists flatter themselves that this
is their special cause. It is everybody's cause.
If they want to contribute to it seriously,
let them get busy and do something more
productive and imaginative than scaling castle
walls and storming underground shelters.
Those are children's games.
he )6 antagonistic, but with no
success to date. However, the
Fulbright committee investigation
may give him the forum he seeks.
There are a good many hon
orable people in Washington who
represent foreign governments,
register this fact with tlie Justice
Department, and go about their
business openly. But the indica
lions arc from stories circulating
on Capitol Hill, that the misdeeds
of a few will be attributed to all.
The laws delimiting the activi
ties of Americans representing
foreign governments ore clear
cut and stringent. If the Fulbright
committee hearings become anoth
er senatorial Roman holiday, no
one will benefit but Mr. Pincus
w ho w ill have material for a book
or anoiher series of articles. Tins
is hardly justification for the la
bors of a Congressional commit
tee. Al
manac
11 1 nilrd Vrr IntrrnlHinal
Today is Sunday. April 2. Hip
118th day of l:vt with 247 more
tit follow.
The rrnon is appto.nhine its
firt quarter.
The mnrning stars are Venus
ind Saturn
The evening stars are Mercury
and Mars,
Thiw horn today include .fames
Monroe, the fifth President of the
I nited States, in 17M.
On this day in history:
In 17S8. Maryland entered the
I mon as tlie seeiith state
In PM 1 . aviator Charies Lind
bergh re-Mcned as a colonel in tlie
I S. Air Force rrr-ervc
In HM2. the government ordered
a "dim-out" in all communities
alonji the Atlantic foast alter
d.isk
In l!,2. the war uith Japan of
f'cially ended as a tieaty signed
in I'VSl by the t'.S. and 47 other
nations became e(fectie
thou tint for the day Italian
dictator IVnito Mussolini Mid
' War alone brings up to its high
est tension all human energy and
puts tle stamp of nobility upon
the peoples who have the courage
to face it " ,
New Rate System Needed
Excerpts from an article by
Herbert H. Harwood Jr., in the
magazine Trains.
The present railroad rate struc
ture is an amazing anomaly. The
word "structure" is a misnomer
the system is no longer a struc
ture but rather a hodgepodge of
individual rates, each one de
signed to serve the needs of a
particular customer, maintain
some marketing relationship, or
meet some individual competitive
situation. Several different rates
may apply to the same commod
ity between the same two points,
and the same rate may apply tn
similar shipments moving over
greatly differing distances. Rates
are quoted by the hundredweight
on some items, by tlie ton on
others, and in some cases the
weight makes no difference what
soever. A new customer may be
charged less than an old faith
ful customer.
In sum. there are few other in
dustries with so chaotic a pric
ing system.
To move goods from shipper to
receiver, any railroad must per
form three basic jobs, and does
each one with a widely differ
ent degree of efficiency. Usually
it must: (I) provide a container
for the shipment the freight car
or piggyback trailer; 2 perform
a pickup and delivery service
that is, collect cars from separ
ate shipper sidings, and on the
other end, distribute them to scat
tered receivers, and finally Mi
carry the cars between termin
als in trains the line-haul opera
tion. The line haul is railrnading's
real ace.
The other two items are dif
ferent kinds of animals. Moiling
stock is expensive to buy and
diflicult to keep moving. The aver
age new 50-foot boxcar can cost
lietween $lo.ouo and sit. mm
stripped.
The average freight car is load
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it
ed to less than 80 per cent of its
weight capacity.
Including idle lime, switching,
and all other factors, the aver
age car moves at the glacial
pace of 1.9 m.p.h.
It spends 90 per cent of its ac
tive life standing still.
Even when it's rolling, over one
third of its mileage is empty.
Thus a freight car really earns
money only about six per cent of
the time, 22 days a year. .
If equipment efficiency leaves
something to be desired, terminal
operations are worse. The nature
of the service makes it inherently
expensive small cuts of cars
must be shuffled, trotted around
to widely scattered sidings, fetched
when empty, and rcshulfled.
The I.C.C. has calculated that
it costs tlie average Eastern rail
road over $40 to place a boxcar
on a customer's siding and pull
it out later on. or $81 a car to
switch it at both ends of the
movement more than the cost of
hauling the car .100 miles over
tlie road.
So railrnading's inherent effi
ciency is at best only partially
exploited.
A properly designed rate struc
ture may well be the only way tn
cut unit costs and beget business
within the framework of present
operating practices and equipment
and plant capabilities.
If there is any one magic word,
it is incentive.
The whole object of incentive
pricing is to give the customer
some sort of stake in railroad ef
ficiency, and to allow both cus
tomer and carrier to share sav
ings. This concept would center
around several simple elements:
Get more into each car thus
making the car produce more
earnings and cutting down car
needs.
Reduce terminal switching by
9 Parti of
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properties
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capital
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34 Spanish it the
language
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initials
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getting more cars in each ship
ment. Get Hie cor loaded and unloaded
quicker.
Entice the customer to give the
railroad at least a portion of his
normal, year-round business rath
er than simply his peak overflow
or unusually large shipments, or
conversely, penalize any extraor
dinary shipments which demand
extra equipment.
Finally, and inescapably, relate
the rail rate to the cost of han
dling the shipment rather than to
artificial classifications or expedi
ent compromises.
No matter what form future
rail rates take, they must some
how be based on costs on both
rail costs and those of the com
petition. A customer now has many al
ternatives. He no longer finds it
too difficult to run his own
trucks, boats, barges, or pipelines,
and if he can't afford those, he
usually can find some highway
or water carrier willing to make
a cost-based contract rate. The
result: pricing by anything other
than costs has become practical
ly unworkable. Despite occasional
lapses. I.C.C. rate decisions have
tended toward using competitive
exists as a major criterion of what
a "right" rate should be.
President Kennedy's transporta
tion message has recognized the
hard facts of transport competi
tion and has sanctioned a broad
range of new principles for the
railroads to follow. His invitation
was unmistakably clear but of
course he left it to the railroads
to decide w hen and how to accept.
The solution devolves complete
ly on the railroads and particular
ly on their presidents. The tools
are available. It is up to some
one to give the word to use
them.
QUESTIONS and ANSWERS
Q What mountain Is often
railed the "monarch nf moun
tains?" A Mont Blanc, western Eur
ope's highest peak.
Q Which slate produces twist
wheat?
A Kansas.
Q Is It true that ants kill rows?
A An ant of southeastern U.S.
is known as the cow-killer ant.
Although it is a wicked stincer,
it ability to kill a cow is doubtful.
BERRY'S WORLD
"Tb utrit ftrt U
tbt rtfUttd mt gtvt
Q
An incident that occurred in the
business office the other day
serves as an instrument to point
up a practice that is prevalent
with the Herald and News, and
other newspapers, generally. A
fellow came in and wanted to
publish an advertisement for girls
to sell magazines. We don't run
such advertising, as we believe
that Klamath area young ladies
are better off unemployed than
they would be running around
the country with some old goat
soliciting magazine, or other,
sales.
' We apply some pretty tough
yardsticks to the types of ad
vertising we will publish In
the Herald and News. While
we do not attempt to keep a
record of advertising we re
fuse. It runs up into a pretty
big figure every week. Once In
a while a bad one will get by
the ad staff, but Deb Addison
keeps a hard eye on undesir
able types of advertising and
consistently refuses publication
If he thinks they oontain any
element of exposing our read
ers to a bad deal. For instance,
we do not accept any "mall
order" advertising at all, un
less It Is placed by a local
business lirm, or a representa
tive of a local firm that has
national or regional headquar
ters in a city other than Klam
ath Falls.
Letters To
Questions
Tlie April 22 issue of our local
newspaper carried two items of
vital interest to us: One on the
front page complete with picture
and large black headlines. The
second was inside on the editorial
page. In my estimation Mr. Hyde's
letter should have shared t h e
spotlight with the other article,
but I'm certain our editor knows
more about publishing a newspa
per than I do. so please forgive
the criticism.
In headlines we are oflercd
equality by both county and city .
interests. The question is: "What
is this one county unit how much
more will it cost us in tax dol
lars?" Is it long-range or short
term? My personal viewpoint is that
the one faction has handed tlie
other a blank check and in es
sence said. "Sign here, we'll talk
it over later" lalter the check has
been fiignedi. Wiry don't you
Q Whose likeness appears on
the Sllnute .Man monument on .
the Lexington, Mass.. village
green?
A Capt. John Partcer as he ap
peared on April 19, 1775, com
manding the Minute Men.
Q How did the expression "ta
feel one's oats" come to meaa
playful and full of energy?
A It originated a$ a farmer's
expression, indicating how much
more energetic a horse acts after
it has had its meal nf oats.
mil um, ubtn tlx mtchn,
m Bronx ckttr tt I Uft.m
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NOTHING
SPECIAL
(W. 8. S.I
Want some long-range, big-time
statistics? Here are some re
vealing that the American public
set a 3-way record in 1962. Amer
ican people set up a record in
individual savings, spending and
personal debt last year.
Accumulated long-term sav
ings of individuals in life in
surance, savings accounts, and
Scries E and H savings bonds
grew by an estimated f3l bil
lion. This topped the previous
peak annua growth pf the year
before by more than $8 billion.
Accumulated long-term savings
totaled $3687 billion at the end
of last year. At tlie same time,
consumers, increased their expen
ditures for goods and services
by more than $18'i billion last
year. Tliis is practically twice
the comparable rise, the year be
fore and one of the largest an
nual increases in personal spend
ing on record.
Aggregate consumer spending
in 1962 hit 156.7 billion. This was
accompanied by a record in
crease of just under $22 billion
in personal debt outstanding dur
ing the year two-fifths greater
than the rise in tlie year before
and $2 billion above the previous
peak annual increase in personal
debt of J193 billion in 1959.
Well, here we are In official
Daylight Time and the earth
hasn't stopped orbiting yet.
It hurts some people to say a
kind word even to children.
The Editor
people make a few calls on your
school board representatives and
find out (or yourselves, as I did?
We suburbanites are oifcred a
choice, and believe me, we ars
Soins to be propagandized by one
group more than by the other.
One side offers equality and the
other offers information spelled
out in doilars and cents.
I do not attempt to influence
any person's choice you will do
as your conscience dictates on the
May 6 election.
1 poked my nose into a few
cracks and crannies and on invita
tion sat in on a few committee
meetings. I learned enough tn
send me looking in the opposi
tion's direction don't misunder
stand me. I believe in studying
both sides of a question my vote
will be counted right along with
those who also deem it worth
while to vote on school ballots.
I do say gel out and vote',' but
make it your own individual
choice. Don't allow one faction
only tn influence your decision.
Our county and city school ofli
cials are hard-pressed with an ex
treme load of duties and dilem-.
mas to face as this year's ses-'
sion ends and preparations must
he made for the next. However,
they are real flesh and blood
human beings like you and I.
Don't stand in awe of great sound
ing college degrees and official
titles. These are people who will
welcome your interest because it
means that our procrastination
on school problem! is finally get
ting out in the open and becomes
subject to our own correction.
Remember t important Is
sues: U1 Inevitably, more tax
dollars, either for or against one
county unit: i2 the moral impart.
Is it going to be a good basic stan
dard, or will it bring more chaos
in a few years' time?
Educational standards and phys
ical facilities are directly influ
enced by local economic levels,
and low level economy does not
produce the dollars and cents
that are needed to finance our
schools' progress. Budgets and
new construction plans get voted
down and we have only ourselves
to blame because we have not
had the time to make intelli
gent inquiries.
Here is another solid fact. th
information is available if you
know what to ask 01 your district
representatives, and then apply
that information to experienced
knowledge.
(lood intentions have never yet
solved any problem. Only our
votes can do this, so get smart
and make it a persona1! project tn
find the right answer (or the good
nf the majority and not lor thme
privileged few who are popularly
thought tn be above average in
inioMKrnce. Our standard of edu
cation is what we make it
Mrs. R K. Ferrarki.
11T7 Wurd Street.