PACK
HERALD AND NEWS, Klamath Falli, Ortgoa
Tuesday, Aufust 29. IKS
EPSON IN WASHINGTON . .
The Suspense Is Murder!
United States Stil
o
Red China's No. I Foe
c
onege is
; Go west, young man or east or north
or south just so you go to college.
"' Figures just released by Northwestern
National Life Insurance Co. in its 28th annual
employment survey of U.S. college graduat
ing classes reveals that grads of the class of
'63 did even better than those of the pre
vious year.
Automation, which hangs like a specter
over the livelihood of thousands, has cre
ated other thousands of new opportunities for
college graduates. Not all are scientific or
technical opportunities, for even electronic
computer work requires administrative and
managerial personnel.
. . More jobs at higher salaries absorbed
90 per cent of engineering job candidates, 80
per cent of business school and 70 per cent
of liberal arts majors even before commence
Sooner or later action is going to have to
be taken to establish just how far the head of
a democracy can go via the so-called executive
order route.
Already there are some signs that say
trouble lies ahead and it would be -well for
Congress to start thinking about protective
measures. Legislatures also will have to give
some thought to how far a Governor may go.
The Executive Order since that seems
to be the name given it by President Kenne
dy himself originated in Washington as a
means of, frankly, by-passing Congress. The
President, wishing something done immed
iately, with the stroke of a pen orders It so.
He has on recent occasions used this short-cut,
of questionable legality at times, and at best
lacking in good parliamentary procedure.
Now the idea seems to be spreading to the
states. Kentucky's Gov. Bert Combs used this
very same method to order racial discrimi
Tax Cuts And Their Effects
r " By THOMAS B. CURTIS
' Missouri Congressman
The real damage that is being
caused to our economy, and to
our business opportunities, is
due to our high lax rate structure.
. I have been pointing to the need
for lower taxes for many, many
years, and so have others.
; But, in order to accomplish tax
reduction, our federal expendi-
tures must be brought down to a
j point of manageable size. Spend
ting has to be controlled so that,
' when we talk hi terms of t a x
cuts, we are not talking about
financing a tax cut by a new bond
tissue. Such a bond issue would
.mean noUiing mora than de
ferred tax increases.
If taxes are cut without cut-
ting expenditures, we run into
Idebt management problems, and
am very concerned over the
'. impact of additional problems in .
;Uie field of debt management on
lour balance-of-payme'nts problem.
:Vo don't owe this debt just to
ourselves. The nationals and gov
ernments of foreign countries,
people abroad, own more than
$20 billions of our dollar obliga
tions. What is going to be t h e
impact on those people and their
willingness to hold our debts?
Are they going to buy more of
these bonds? Will tliey create a
market or will tliey demand
gold?
; It is being said that deficit
financing actually will stimulate
;the economy; and that federal
I spending by the political bureau
cracy, with its alleged belter un
derstanding of what and how
'. money should be spent, will stim
ulate the economy. Perhaps this
concept of deficits may have
some possible validity in an econ
omy based on the laws of scarci
ty. But our society is moving
into an economy where plenty,
not scarcity, is Hie problem.
Tlie argument is made that, if
we create a bigger deficit by cut
ting taxes, we will not let loose
the forces of Inflation because
we have idle plant capacity, and
.we havo men who are unem
ployed. It Is argued that you
;do not create inllaUon by putting
;more purchasing power out.
Relate this to agriculture.
Would some of Uie lands that
are now being put out of pio
"duction be restored to produc
tion? Would some of the peo
'ple who are now, and have been
.' since this country was cstab
' lished, going out of agriculture as
an employment pursuit return to
agriculture?
You may agree with my use
of the agriculture example but
will say: Look at steel, operaUng
Job
insurance
ment time. Nearly all job seekers are expected
to be placed by October.
An estimated 48,000 new engineers will
be needed every year during this decade
11,000 less than are currently graduated every
year. Starting salaries for bachelor engineers
were $600 to $610 a month.
For business graduates, salaries ranged
from $475 to $500, with accountants averag
ing $525. Liberal arts bachelors not major
ing in physical sciences settled for $460 to
$485, with physical scientists (chemistry,
math, etc.) averaging $550.
Stiff competition for graduates and
correspondingly inflated pay in the missile
and space fields attracted more students than
there were jobs in that area.
One major area of opportunity was found
by the survey to be neglected or by-passed
by students sales.
No Left-Handed Grocers
nation ended in all state-licensed businesses
and professions. He issued his order regard
less of the apparent fact that even the Kenne
dys, Bobby and the President, seem to be
agreed this is a matter for Congress to decide,
or else they, too, might have taken the exec
utive order routine. The President, however,
did use the executive order method in telling
the Defense Department to curtail operations
at military bases located where private enter
prises discriminate.
We must irrcgardless of what the ex
ecutive order may be for take caution not
to let this approach become too prevalent.
It can get out of hand, for sooner or later, it
will flow down to all levels of government
and a mayor somewhere will decree that
there shall be no grocery stores on the left
hand side of the street. Too much power
can be more detrimental than no power at
all. Congress, truly, had better watch this.
at 60 per cent of capacity. What
would happen if we increased con
sumer purchasing power at a
time when we arc having, in
many respects a record-breaking
year? For two years in a row,
automobiles and construction, two
of the great users of steel, are
at these high levels.
I suggest that this idle steel
plant cupacity is not in demand .
and would not be in demand
even with higher consumer pur
chasing power, bccau.se it is a
capacity that is obsolete. With a
60 per cent plant capacity utiliza
tion last year, steel spent well
over a billion dollars building
more plant. More plant to pro
duce the kind of steel for which
they had tlic plants? No. This
billion dollars is to produce a
very thin steel sheet to compete
with plastics and other metals,
such as aluminum, that arc mov
ing into markets steel once held.
Tliesc arc the problems of rap
id economic growth, not ol a tired,
sick economy. You don't have
obsolete equipment and obsolete
skills in a tired economy. If
your economy is going nowhere,
you have no change. Whatever
your occupation is, it is still use
able. It's only when your econo
my is growing rapidly that you
have Uiis increased obsolescence
of plant and equipment.
Iteducing the corporate tax
rate from 62 per cent to a rate of
49 per cent, or a 47 per cent
rale, actually would produce
more revenue. In my judgment,
because we are now beyond the
point of diminishing returns in
tlie high rates.
Now, that kind of rclorm can
come at any time, and should
come at the earliest possible
time. But it follows a completely
different economic philosophy
from that which says that this
tax reduction is going to release
purchasing power to tlic private
sector, or investment power it
you want to use the money (or
investment, .vipport ior the
need to cut (lie corporate rates
is on the theory that tlic tax rates
themselves arc so high that they
produce diminishing returns. If
we can get some people to come
along with Uiat kind of thinking,
we may come forward with some
tax reform legislation.
If the requirement Is t h a t
to cut taxes you have to compen
sate revenue-wise by closuig
what are called loopholes, it will
take many months to develop
adequate tax rate reform, if dc
veloied at all.
What is one man's looplxile is
anoUier man's equity. Is deple
tion allowance, for instance, real
ly a loophole? Actually, it's a
differential, reflecting the fact
that in an extractive industry,
you are bringing out capital. A
portion of what you dig out of
the ground is depicting your capi
tal asset. Under Uie 16Ui Amend
ment, capital recovery is not to
be taxed as income. Depletion al
lowance is necessary, so that
when you have depleted an ore
body or mineral deposit, you can
replace it and remain in busi
ness. If an attack on depiction is go
ing to be the kind of tax reform
that is urged or if Uie Treasury
comes forward Willi a proposal to
repeal the dividend credit, which
was put into the tax laws in
11154, then there is serious doubt
that there will be substantive tax
reform in the near future.
The dividend credit was not put
in the tax laws to give the in
vestor a break. The issue is this:
There are three ways a business
can finance its growth. One is
from retained earnings, another
is from borrowing either from a
bank or debt financing and Uie
third is through equity financing
by floating new stock issues.
The first two ways are taxed
only once. Retained earnings
have tlic corporate tax but they
do not get taxed against the in
dividual holder, unless he sells
and then only at a lower rate.
Borrowing to finance growth, you
deduct the interest from income,
subject to Uie corporate tax, and
it's only taxed once.
A new equity issue, the
healthiest way to finance growth,
is taxed twice. It is taxed at
the corporate rale and then, when
the corporation declares the divi
dends, it's taxed at the personal
income rates.
All we were trying to do in 1954
was, in a small way. to bring
about a little equalization so that
this form of financing was not
put at a disadvantage with Uie
oilier two methods.
This illustrates the complexi
ties involved in some of these
lax issues, particularly as you
relate them to economics and
to economic growth.
Whether or not to cut taxes
isn't the sole Issue. It is import
ant to get the entire fiscal ques
tion in context, in order to un
derstand what we are going to
face. Once we open Uie door to
reviewing our lax structure, we
don't liave to pursue the econom
ic line based upon the concept
of deficit financing. Rased on
sound fiscal principles, sound
economics and sound lax policy,
e could have some good tax
reform even in this session of
Congress, and that would be with
the help of members of both po
litical parties.
Jit
By WASHINGTON STAFF
Newspaper Enterprise Assn.
WASHINGTON (NEAl - Pres
ident Kennedy and Sen. Hubert
Humphrey of Minnesota, Demo
cratic whip, were discussing the
nuclear test ban treaty with Brit
ain and Russia.
'Well, Hubert," the President is
reported to have said, "now that
we have your test ban treaty
signed, let's sec you get it rati
fied by a big majority of the
finale."
"We'll do that, Mr. President,"
the Senator assured him. "But
what happens then?"
"Then," said the President, "it
becomes my treaty."
Mayor Ivan Alien Jr. of Atlan
By SYDNEY J. HARRIS
While driving through a state
park Uie other day, the children
saw me carelessly tossing a dead
match out of the car window,
and reminded mc of Smokcy the
Bear's warning: "One tree can
make a million matches, but one
match can burn a million trees."
This is more than a homely
aphorism for children, and it
says more than the dangers of
being careless about fire. It
strikes to the very heart of the
human condition.
We can observe the same truth,
on the children's scale, at the
seaside. Six children may labor
for hours to build a lovely end
intricate sand castle but in
one second a baby can come along
and wantonly destroy their
achievement.
Man is a creature of creation
and destruction. The creation re
quires labor, talent, skill, patience,
cooperation, imagination, and
often great courage. The destruc
tion usually requires little ex
cept the urge to destroy; it calls
for no destinctivcly human abili
ties. Nature has loaded the dice
against us. One fanatical assas
sin wiUi a gun can change the
course of history, no matter how
many statesmen and savants are
ranged on the other side. The work
of decades can be undone in an
instant, as a cathedral that took
a century to build can be de
molished with a well-placed
charge of dynamite.
These are all the most obvious
truisms yet truisms seem to be
the last things that human hemes
learn, accept, and act upon. Our
capacity for violence and de
struction has increased a million
fold in modem times, but out ca
pacity lor creation and for co
operation has lagged far behind.
Humanity has not yet begun
to tight its real war which is
not the war of people against
people, but tlie war of all of
us against our own destructive
tendencies, and against Nature's
indifference to our fate. Better
control of tlie physical universe,
combined w ith better control over
our own natiux. is the only way
to assure our survival as a species.
08S
I wo
. A' If.
WASHINGTON NOTEBOOK
Humphrey's For
ta gives no open hints as to the
degree, if any, of his attachment
to President Kennedy and his
administration.
But a few clues may be seen
in his handsomely-outfitted ofiice.
Its furnishings include six Kennedy-style
rocking chairs, a 1 1
with cushioned seats in the best
presidential manner.
An also-ran in the first Missis
sippi governorship primary was
Robert "Blow Torch" Mason, a
welder from the town of Magee.
Asked why he ran for gover
nor on the Democratic .ticket,
Mason said: "Every three or four
years, I save up enough money
to take a big trip or to run for
governor.
STRICTLY
PERSONAL
But we have not yet begun to
regard man as a species. What
L. L. White calls "the unitary
nature of man" is dimly per
ceived by only a few in each
country; the rest retain a primi
tive view of their own sub-culture
as being the finest and the
best.
The basic task of modern edu
cation is not to teach reading and
w riting and counting, but to leach
young people (and older ones
as well) what it means to become
a human being. All other tasks
are subordinate to this one, for if
we turn out skilled technical ani
mals who do not know what a hu
man being ought to be, we are
simply hastening our violent ex
tinction. Man's nature is not forever giv
en, like the other animals,
which cannot help being what
Uiey are. We .make ourselves,
as we make our history: and it
is wholly up to us whether wc
use the trees for matches or set
the matches to trees.
BERRY'S WORLD
. . And u method actor, baby bt can icrttcb
and mumble uith the best."
4
A While
"This time I left it up to my
wife to decide and she told me
to run for governor. "-
"Blow Torch" ran fourth in a
field of four.
The slow legislative pace of
the 88th Congress is so appalling
to Yankee Sen. Norris Cotton,
R-N.H., that he has decided to
stop sending weekly newsletters
to his constituents back home.
Says the Senator:
"For 15 years, as congressman
and senator, I have sent my re
ports regularly, without interrup
tion. But never has Congress
gone into what amounts to a re
cess in midsession to rcsumo
work in the fall and run until
snow flies."
Not wanting to "spoil" his re
ports by writing a scries of fill
ers on trivial matters. Cotton
suspended them, adding:
"It just isn't good New England
horse sense to write reports when
there's nothing to report."
"Will you run against U.S. Sen.
Kenneth B. Keating in New York
state next year?" Under Secre
tary of State and former New
York Gov. Averell Harriman was
asked at the National Prss Club.
"There's only one person who
needs to worry about that," re
plied Harriman with a big grin.
"That's Senator Keating."
Fresh from his, success in Mos
cow, where he initialed the new
nuclear test ban agreement with
Britain's Lord Hailsham and
Russia's Andrei Gromyko, Harri
man relates that the first time
he went to Russia he got in with
out a passport.
"I mentioned this to Stalin
while I was wartime ambassador
to Moscow," says Harriman.
"He asked me when that was.
1 told him it was in 1899. when
I was only 8 years old. My fa
ttier had taken me to the Si
berian coast after a trip to Alas
ka." "That was in tlie days of the
czars." commented the late Rus
sian dictator. "You could not do
that now."
. , -
By PETER EDSON
Newspaper Enterprise Assn.
(First of two columns on)
Russia Red China split.)
WASHINGTON (NEAl Signs
that "the dust is beginning to set
tle in China again" are considered
deceptive.
When Lowell D. Skinner of Ak
ron, Ohio Uie American GI Ko
rean war turncoat arrived in
Hong Kong after 10 years' forced
service as a lathe operator for
the Communists in Red China, he
was reported by cable dispatches
as having said:
"Anti-American feeling in Chi
na is not as great as anti
Russian. . . . There has been a
notable increase in the violence
of anti-Russian statements ever
since the Russian technicians
were withdrawn in the late
1930s."
There is a lot of wishful think
ing in Washington and other
free world capitals that the split
between Russia and Red China
will develop into a full-scale war.
The hope seems to be that
they will destroy each other com
pletely and that international com
munism will perish from earth at
the same time.
That would be a historical solu
tion by letting the dust settle.
For thousands of years China
has been overrun by invasions.
China has absorbed them all and
survived. In modern times, Japan
has tried to take over and make
over China in two wars, failing
both times.
When the United States and its
allies liberated China in World
War 11, they became the No. I
enemy of the Chinese Commu
nists, who overran the mainland
and drove out the Nationalist gov
ernment. Then came the.Russian wave of
domination, beginning with a 30
year treaty of friendship signed
in 1949. In less than 10 years Rus
sia began to renege on its prom
ised aid and to repudiate the
treaty, being unable to swallow
China.
So the Russians now are the
No. 1 enemy of Uie Chinese. But
it does not follow that the dust
is beginning to settle in China,
in another moment of history.
The diary of a former congress
man, Dr. Walter H. Judd, R
Minn., provides an illustration of
WASHINGTON
) Organizer Of March
By FULTON LEWIS JR.
WASHINGTON. Aug. 19 Of
the 100,000 demonstrators ex
pected here Wednesday, it is
doubtful that more than a hand
lul know the background of Bay
nard Rustin, who has been de
scribed as "Mr. March-On-Wash-ington,
himself."
The description was offered by
A. Philip Randolph, the Negro
unionist who has helped stage
this rally. Randolph has turned
down suggestions that Rustin,
Deputy Director of the March-on-Washington,
be fired.
Rustin's background was re
searched by Sen. Slrom Thur
mond, a Southern segregationist
who admittedly has an axe to
grind. (Rustin issued a denial
of some of Thurmond' s charges.
He said he had been a member
oi the Young Communist League
in college, but never a member
of the Communist Party.)
But the facts, obtained from
the House UnAmerican Activities
Committee and the Federal Bu
reau of Investigation, speak for
themselves. So does Rustin, who
told the Associated Press he has
been arrested more than 20 times
in the fight for civil rights.
He was arrested, too, with two
other men in a parked car Jan.
22, 1933, in Pasadena, Calif.
Charged with sex perversion,
Rustin was convicted and sen
tenced to six months in jail.
It was not his first stint be
hind bars. During World War
II Rustin claims to have spent
lime in prison as a "conscien
tious objector." He was sentenced
to federal prison for violation of
the Selective Service law alter he
refused to report for "work of
national importance" required o(
conscientious objectors.
He was in federal penitentiar
ies at Ashland, Ky., and Lewis
burg, Pa. He was subsequently
arrested, FBI files show, for dis
orderly conduct in New York
City and for picketing an em
bassy in Washington.
Rustin was one of "five im
partial observers" at the Com
munist Party's closed-door 16th
NaUonal Convention in 1937. He
was a member of the American
Korum for Socialist Education,
an organization infiltrated by
Communist operatives and tlie
subject of a Senate investigation
in 1937.
The Fellowship of Reconcilia
tion, a left-wing pacifist outfit,
printed a profile of Rustin in the
January, l'.ivi, issue of "Fellow
this. One entry covers a Febru
ary, 1930. briefing on China poli
cy which former Secretary of
State Dean Achcson gave a group
of Republican congressmen who
were worried about the situation.
Chiang Kai-shek's government
had fled to Formosa in December,
1949. India recognized Red Chi
na immediately. The United King
dom followed. There was fear the
United States would follow suit
to establish a two-China policy.
Then the Red Chinese made
tlie mistake of seizing the Ameri
can consulate in Peking. Presi
dent Truman decided that t h e
United Stales would never recog
nize a bunch of bandits. .
This ended that worry. But it
still left unanswered the ques
tion of what American China pol
icy really was. Acheson uied to
straighten it out in a series of
closed congressional hearings and
major public addresses. f
At the Press Club on Jan. 12,
1950, in what was probably h i s
most controversial speech. Ache
son drew a line on the American
defense perimeter in the Paci
ficthe Aleutians, Japan, the Ry
ukus leaving out Korea and For
mosa. Immediately lie was in hot wa
ter, and he was still up to his
chin when he was invited to ap
pear before the Republican con
gressmen. No minutes of the meeting were
kept, and memories of those who
were there and what they said
are vague.
In his briefing the secretary
analyzed Red China's weaknesses
but did not predict its collapse.
When he was asked what Amer
ican policy would be in this situ
ation, the entry in Judd's diary
shows that the secretary replied,
"We'll let the dust settle."
In full fairness to Acheson, it
may be reported that he does
not now think the dust is settling
in Red China.
The United States is still the
principal enemy of the Chinese
Communist government, as the
strongest power of so-called capi
talist imperialism.
The dispute between Red China
and Soviet Russia does not settle
any dust. It just raises more
dust of a different kind.
Interestingly enough, this is also
tlie opinion of Judd.
REPORT
Has Unsavory Record
ship," its official publication.
The magazine relates one mile
stone in Rustin's life, when he
tried vainly to prevent the French
from exploding a nuclear device
in the Sahara. It referred to
Rustin as a "friend" of Ghana's
Communist-lining Kwame Nkru
mah. Rustin has worked closely with
the War Resistors League, an or
ganization of men who refuse to
serve their country in the armed
forces; Liberation Magazine, a
left-wing publication; the Medi
cal Aid to Cuba Committee, a
group under Congressional inves
tigation earlier this year; the
General Strike for Peace, a proj
ect of the Communist-infiltrated
Women Strike for Peace; the
Monroe Defense Committee, a
group set up to defend Robert
Williams, the Negro integration
leader who fled to Cuba when
sought by the FBI on a kidnap
ing charge; and the Greenwich
Village Peace Center.
This is not the first Washington
march staged by Rustin. He co
ordinated two earlier "youth
marches" and a "prayer pilgrim
age" that brought an estimated
40.000 people here several years
ago.
Under Secretary of State Av
erell Harriman, negotiator of the
partial nuclear test ban now un
der Senate consideration, is giv
ing indications that he'd like to
get back in politics.
Last time Harriman ran for
office. New York voters turned
down by more than half a mill
lion votes his bid for another
term as Governor.
Now Harriman, 71, is consider
ing a Senate race against Repub
lican Kenneth Keating, up for re
election next year. Hc has refused
to deny he wants the Democratic
nomination:
"The only people who are wor
rying about wbetlier I'm going to
run are the Republicans."
And even tliey are not staying
up nichts worrying.
THEY
SAY...
Tlie only really surprising thing
about women in space is Uiat
anyone should be surprised. Why
on earth or in space not?
Writer Margaret Joees.
It '..' r
r 4"