PAGE-I
HERALD AND NEWS, Klamath Falls, Ore.
Tuesday, October 1. 1K1
EPSON IN WASHIN6T0N . . .
Overseas Trade Lags
Behind Country Needs
"Wipe Your Feet and For Heaven Sakes, Smile!"
The word "politicking" isn't In the dic
tionary. But it's a good, if homely, word just
the same. It's as American as apple pie. It
describes something that is going on in this
country, in which anyone can run for any
thing, day in and day out the calendar around.
All the way from the Presidency down to dog
catcher, people, informed and uninformed,
are constantly arguing the merits and demer
its of one possible candidate versus another.
The next Presidential nominating conven
tins are a year in the offing. But politicking
involving them has reached an unusually tense
peak. It may be due to the confusion of the
world we live in. Internationally speaking, it
is in dreadful shape. The whole Western de
tense posture is in question. The Common
Market is up in the air due to De Gaulle's in
transigence. The political situation in Brit-'
ain, brought to a head by the Profumo-Keel-er
scandal, has, unless a major miracle occurs,
doomed the Macmillan government. Here at
home, an interminable Congress has produced
practically nothing due to the extremes of dif
ferences over a dozen and one major issues
civil rights, the Welfare State in all its ram
ifications, tax reduction and fiscal reform,
deficit financing versus a balanced budg
et, etc., etc.
So far as candidates are concerned, in
terest centers on the GOP. Mr. Kennedy will
ride the donkey once again. But who will
guide the elephant is a very different matter.
It is probable that if the conventions were
held tomorrow Senator Goldwaler would walk
off with the plum. The Goldwater boom has
been phenomenal. Indeed, some of the meet
ings, largely organized by young people, have
taken on the aura of actual conventions, com
plete with state banners and the rest. The
Senator hasn't announced his candidacy, but
nosne doubts that he will come if called. The
political arguments on his behalf are unique.
His backers freely admit that the great North
eastern industrial states with their huge
; By MARQUIS CIHLDS
WASHINGTON-Tho waters ot
oblivion have a disconcerting way
In this capital of rolling over the
reputaUon of a departed office
holder almost beforo tile eulogies
have ceased. But Estcs Kefauver
of: Tennessee promises to be an
exception to this unhappy rule if
only because he stood for cer
tain deeply held beliefs above and
beyond the erosion of easy com
promise. Whether his last big drive to
Investigate the power of Ameri
can drug manufacturers to en
force high If not prohibitive prices
for wonder drugs in Latin Amcri
ica will be scuttled is (lie ques
tion of today. WiUi his old oppo
nents closing in, the prosects
are not bright.
Kefauver had an old-fashioned
bojief in competition. Ho was for
d ec enterprise free and compel,
itivo enterprise. A close friend
in Uie Senalo once asked him to
join in sponsoring a "price noti
fication" bill requiring firms in
basic manufactures to serve ad
vance notice of upcoming price
increases along with a justifica
tion for the boost. Kefauver de
clined saying this sounded ton
much like government regulation
to him.
.The Senator from Tennessee
with the coonskin cap and the
litnp handshake has a monument
in the greatly strengthened drug
bill that followed the thalidomide
scandal and in an anti-merger
law putting more teeth into the
anti-trust statutes. But his real
achievement Is in Uie massive
record built up beginning in 1957
on his investigation ot "adminis
tered prices" In bread, autos,
steel and other areas in the
economy where monopoly or mo
nopoly understandings keep price
tags high.
Proposing to investigate the
prices of American drugs in die
Latin-American market, Kefauv
er ran into a buzz saw. His as
sociates believe his experience mi
shocked and saddened him that it
contributed to his fatal heart at
tack. . McKesson and Bobbins, Uie na
tion's leading drug wtiolesalcr,
went into Colombia and began
selling antibiotics and oUier drugs
under their KCIric rather than
their brand names. This meant a
saving many times over to Uie
consumer. But the big American
pharmaceutical houses were out
raged and McKesson charged
thorn with shutting off supplies.
When Kefauver proposed to In
' vestigate they turned Uie heat on
i friendly Senators. Kefauver' antl
t monopoly subcommittee was
'.blocked by the full Justice Com
They'll Be Interesting
blocks of electoral votes, will go for Kennedy,
and that some of the Midwestern and far
Western states, including California, will be in
his ranks too. But, they say, this can be offset
and more by a sweep of the South. That would
mean Republican victory in states that have
always gone Democratic by huge majorities.
But times have changed, say the Goldwater
people, and past precedent has lost its mean
ing. The main reason for this theory of South
ern defection from the Democratic ranks, of
course, is the integration issue.
Then there . is another personable fig
ure Nelson Rockefeller. His standing in the
polls plummeted with his remarriage. It was
widely stated that, politically, he was all
through. But a lot can happen in a year and
memories are short. And, some political writ
ers say, the fact that various of his influential
political backers ran for the woods when his
popularity sagged may be something of a
blessing in disguise. They deserted his camp;
therefore, he is no longer obligated to them
or their views and wishes in any way. He can
be his' own man, just as Goldwater can, and
say and do precisely what he thinks. This is
no small asset.
These two men certainly do not exhaust
the possibilities. They could eliminate each
other, and bring about the nomination of a
comparatively dark horse. This could very
well open the gates for George Romney, who
is Eisenhower's favorite and has a great deal
of support in powerful industrial and financial
circles which prefer a mitldle-oMhe-roader to
an outright liberal or conservative. And if
Romney, too, fell by the wayside, a real long
shot, such as Governor Scranton, could get the
nod.
Differences between political groups
the prime examples being the Rockefeller and
Goldwater factions are hot, increasing, and
in some instances downright bitter. The bat
tles that lie ahead may not be enlightening,
but they'll be interesting.
WASHINGTON CALLING
Kefauver Tried
mittee. This was a mailer f o r
the Slate Department or the De
partment of Justice. The hot
potato bounced from hand to hand
as Kefauver looked on with a
growing sense of helplessness.
Finally Kefauver was granted
a hearing before the Senalc For
cign Relations Committee to con
sider the repercussions in Latin
America ot tlie proposed investi
gation. To the hearing came
Thomas G. (Tommy the Cork of
the New Deal oral Corcoran,
representing his hrolher, David,
president of .Sterling Products, a
drug company w ith a large oper
ation in Latin America. Conor
an's law partner. Edward II. Fo
ley, represents the pharmaceuti
cal manufacturers association.
Corcoran made a forceful, nut
to suy fierce, presentation. He
told Uie committee that even the
proposal of an investigation had
been blown up in sensational
newspapers in Brazil and else
where to show that American
drug firms were guilty of trying
to extort criminally high prices.
This would bo used by political
demagogues to justify confisca
tion of the American drug busi.
ness and that, Corcoran warned,
would be another blow to foreign
aid in Congress.
Sen. Wayne Morse, chairman of
the Latin-American subcommittee,
sided with Corcoran. Kefauver felt
"Now I bat I'm a noiJ figure, LAy Bird tbinkt t
ewrAr to bi a national figurt."
Hard
that his allies of Ihe past had
deserted him. In the face of Cor
coran's warning It was agreed
thai if anything was done it
should he by the Department of
Justice inquiring into possible vi
olation of the law in this country.
In an administration showing
little interest in anti-trust, in
marked contrast to Uie Eisen
howcr Administration, this
seemed to Kefauver a brush-off.
The other day Sen. Phillip Hart
of Michigan, who succeeded to
Ihe chairmanship of the anti
monopoly committee, got a vote
of all eight members approving
a resolution keeping in force tlio
subpoenas issued for records of
the big drug houses. Hart (eels
strongly about the Kefauver goals
of checkmating monopoly pres
sure so Uiat business can be free
to produce to Uie fullest. But when
the real showdown comes on
whether to investigate or not the
chances arc that he will have
only two votes his own and
that of Son. Thomas J. Dodd of
Connecticut.
A melancholy footnote to the
Kefauver career is that he left
an estate of $20,000. Friends und
admirers are trying to raise a
fund to help educate the four
Kefauver children. Honesty, as
Lincoln said, may be the licst
policy. But in an era when mon
ey values are supreme it can im
pose heavy penalties.
IN WASHINGTON . . .
By RALPH de TOLEDANO
For most people, labor - man
agement relations mean strikes,
charge and counter-charge, and
industrial dislocation. For some
companies and unions, however,
it means finding a means to co
exist peacefully, to pay the maxi
mum wages yet keep industry
alive. In the case of General Elec
tric and the International Union of
Electrical Workers (AFT-CIO), it
is confusion compounded.
On the one hand, the company
tries its best to do the right
thing by its employes as it has
always done. On the other hand,
the union tor to be fair about it,
its pugnacious president, James
Carey) feels that to get along
with management will violate all
the rules and perhaps put Into
1 office a more reasonable labor
leadership. As a result, Mr. Car
ey has devoted himself less to la
bor relations and more to violent
name-calling. Given another kind
of management, the dues payer
would have lost substantially.
The proof of the pudding and
it should serve to inform other
companies and unions is in Gen
eral Electric's brand new in
crease in pension payments to re
tired employes. Without any
prompting or threats from the
1UE, GE has increased its medi
cal and hospitalization insurance
coverage to some 25,200 retired
employes makng them eligible
for non-Kennedy Medicare pay
ments of up to $ti,ooo a year for
themselves and their wives.
Jim Carey is, of course, furious
at this new development. He likes
it better when the companies
By SYDNEY J. IIAKKIS
The only disturbing aspect of
an otherwise fine summer in the
country was a new and menacing
noise, heard overhead almost dai
ly. This was sonic hoom, and
both tlie natives and the city peo
ple who had fled from such re
minders of "civiKatinn" were
grievously upset by it.
Our sonic boom was created by
fighter planes from an air base
some 200 miles away. This (ear
some noise, I suppose, was bear
able to those who believe that
such maneuvers are a neces
sary part of America's defense
program.
But now the government is
promising to give us "SST."
which stands for "supersonic
transport" in the commercial
field. To produce even a proto
type of such a plane, with siced
up to 2.000 miles an hour, will
cost $1 billion. Nearly all tlie mon
ey, of course, will come from
Ihe taxpayers.
Do we want or need such a
project except for the dubious
reason of "international pres
tige"? Noise has already reached
a highly objectionable level
around airports; and supersonic
planes can rattle and break win
dows for a 50-mile Strip across
the flight palh. Why race into
such a program until technol
ogy has at least found a way to
eliminate or greatly diminish
the tonic boom?
Besides, nobody In the public
Enlightened Management
doing business with the IUE are
nasty to workers. Then he can
justify his unshakable anti-business
policy. This is good labor
politics, or so Mr. Carey believes.
It reflects a viewpoint perhaps
conditioned by the fact that Mr.
Carey has not done a day's work
in a plant since he was 21 years
old. Those of us who have had
to work for a living think some
what differently.
General Electric's unilateral in
crease in the benefits it gives its
employes has only been a con
tinuation of its traditional policy
of getting along with unions. This
policy has, sadly enough, n o t
paid off in the eyes ot Jim
Carey and other doctrinaire labor
leaders. They hate GE precisely
because it has met the union
more than halfway.
A look at the record shows
that GE established a pioneer
pension plan in 1912. Under the
New Deal, it agreed voluntarily
to collective bargaining, thus
sparing its workers the kind of
violent strikes which shook other
industries. The Harvard Business
Review recently pointed out that
"by 1938, GE had signed a com
pany - wide agreement with the
newly formed (United Electri
cal Workers)" precursor of the
IUE "without strike or legal
bickering."
The GE story is important to
day because the company devel
oped a new philosophy of collec
tive bargaining in order to cope
with Master Carey's explosive
demagoguery. Under Lemuel
Boulware, one of its vice presi
dents. GE embarked on a collec-
STRICTLY
PERSONAL
sector needs to go that fast. At
present jet speeds of 600 m.p.h..
our bodies already arrive before
our minds and spirits have caught
up with tliem. Time spent in the
air, in fact, is only a portion of
the vexing travel schedule that
fares most airplane passengers.
The great transport need today
is for a reduction in terminal de
lays, in faster access to airports,
in simplifying the cumbersome
process of parking, checking in,
walking to gates, transferring
from one line to another, expe
diting baggage pickup, and, most
of all, spending appropriate sums
(or research in how to beat Uie
weather.
Everyone has remarked that we
can now cross the continent in
(our hours, but it takes longer
to drive or taxi across midtown
Manhattan than it did by horse in
1910. There seems little point in
doubling or trebling our air
speed especially if accompan
ied by sonic boom as long as
ground traffic becomes increas
ingly chaoUc.
The majority of Americans, it
may surprise us. have never
flown in an airplane. Trey can
not afford it. or they are afraid
of it. or they prefer to make
trips by auto. "Supersonic trans
port" would benefit only a few,
and wxnild not necessarily attract
new passengers. Our national
prestige, and our morale, would
be far better served if we learned
to cope on the ground, with safe
ty, comfort, and speed.
Jf
Uve bargaining course which in
volved a "communications" pro
gram with its employes. The
Boulware line: Tell them the
truth. The unions immediately
tagged this new approach "Boul
warism" and tried to make the
term a dirty word.
But "Boulwarism" was simply
an application to collective bar
gaining practices of American
business principles. It meant that
a company would carefully ex
mine labor's demands, compare
them with its capabilities and
abilities for increasing wages and
fringe benefits, and then make
Ihe best possible offer. In the
past, to meet labor's onslaught,
management's counter-offer was
always hypocritically low to per
mit "bargaining." (Read: Hag
gling.) GE, moreover, was al
ways ready to revise its offer if
the union provided information
which justified a bigger settle
mentand in a number of in
stances, it readily increased its
offer.
Jim Carey did not like this.
For one thing, it deprived him
of the chance to proclaim a great
'and paper! victory after every
contract negotiation. Secondly, it
made the company look good to
employes. The National Labor Re
lations Board seems to agree with
him that "bargaining in good
faith" means making an uncon
scionable low offer and then back
ing down a practice common in
the bazaars of the Orient.
An NLRB examiner has cited
GE and. if his decision sticks,
all of management for an "un
fair labor practice" because of
"Boulwarism." The examiner list
ed five legal acts by GE, and
said that in combination they
were illegal. As the Harvard Busi
ness Review noted, the examiner
constructed a "theory of illegali
ty resulting from a series of legal
acts."
Given this kind of reasoning. T
am surprised that Jim Carey, the
IUE. and the NLRB have not
attempted to throw GE into the
plan which makes Medicare un
necessary and unwanted. In the
upside-down reasoning of the la
bor moguls, the more manage
ment does right, tlie wronger it
is. which may explain why the
IUE is losing members.
Almanac
By United Press International
Today is Tuesday. Oct. I, the
274th day of 1963 with 91 to fol
low. The moon is approaching its
full phase.
The morning stars are Mercury
and Jupiter.
The evening stars are Jupiter
and Saturn.
On this day in history:
In I-.I03. the first baseball World
Scries got under way at Boston
as the Boston American League
team played the National League
team from Pittsburgh.
In 1908. Henry Ford introduced
the model-T Ford automobile.
In 1938, German troops crossed
into the Sudeten area of Czecho
slovakia and enslaved one-million
Czechs.
In 1982, James Meredith regis
tered at the University of Mis
sissippi and became tlie first Ne
gro ever to attend classes there.
A thought for the day Aut
maker Henry Ford said, "History
is bunk."
By PETEB EDSON
Washington Correspondent
Newspaper Enterprise Assn.
WASHINGTON (NEA) - Presi
dent Kennedy's goal for a $2
billion or 10 per cent increase in
U.S. exports to wipe out Ameri
ca's balance of payments deficit
in 1964 was not equaled in 1962
and will not be achieved this
year.
This is the opinion of Fred C.
Foy of Pittsburgh, board chair
man of Koppers Company and
vice chairman of the two - day
White House Conference on Ex
port Expansion.
So the going for next year will
be tough.
But the drive to increase Amer
ica's foreign trade now moves
out of Washington and into the
country with 39 Little White House
Conferences on Export Expan
sion. These conferences will be held
within the next month by the
39 U.S. Department of Commerce
field offices in cooperation with
regional Export Expansion Coun
cils. The 800 members of the Export
Expansion Councils are private
businessmen.
This program, which has been
dubbed "Operation Ten Thou
sand," is intended to interest 10,
000 more American manufactur
ers, who are now selling only on
the domestic market, to get into
foreign trade.
If each one of these 10,000 could
do $200,000 worth of export busi
ness next year, the $2 billion goal
would be reached. 1
At the present time between 15,
000 and 20,000 U.S. manufactur
ers sell abroad. Nobody knows
the exact number. But the 500
biggest exporters do 75 per cent
of the business.
The final report of the big
White House Export Conference
of 200 private business leaders
has now been submitted to Presi
dent Kennedy by Secretary ot
Commerce Luther Hodges. It con
tains detailed recommendations
from 11 subcommittees of busi
nessmen on what should be done
to build up U.S. exports 10 per
cent.
The conference itself got oti
slightly on the wrong foot by
holding a press briefing immedi
ately after adjournment. The 11
committee reports hadn't been
fully analyzed or properly sum
marized. The result was an impression
that (lie principal recommenda
tions were to give U.S. industry
WASHINGTON REPORT . . .
Federal Agencies
Enter News Field
By FULTON LEWIS JR.
WASHINGTON A combat vet
eran of World War II. crewcut
Paul Findley runs two small
weeklies in downslale Illinois.
Voters in that state's 20th Con
gressional District have twice
sent publisher Findley to Wash
ington and he is one of the few
members of cither house whose
background is that of a working
newsman.
Findley, to a greater extent
than most Congressmen, sees the
threat of managed news. He pre
dicts a federal news service if
current trends continue. He bases
that opinion on the words and
deeds of Administration officials.
Lee Loevinger, a Kennedy-appointed
member of the Federal
Communications Commission, re
cently suggested a "broadcast
news association" be set up to
compete with AP and UPt in the
dissemination of news for radio
and television. He claimed that
present w ire services are oriented
toward the printed, not the spoken
word. He implied they should be
replaced with a specific radio
news service.
Loevinger made his observa
tions at the same time that an
administration colleague was set
ting up his own news agency.
Secretary of Agriculture Orville
Freeman was creating the Mar
ket News Service to provide cost
free reports and data on farm
market activities (or publications
across the country.
The Agriculture Department has
19.000 miles of teletypewriter
circuits to carry news to "clients"
in every comer of Uie country.
Its spanking new service now
threatens with extincUon a privately-owned
news agency, the
P.A..M. News Corporation, which
serves some 300 customers.
The American Newspaper Pub
lishers Association has issued a
statement protesting against
"the highly improper nature of
the (Freeman i news service." It
pointed out that the department
can cancel service to any client
for any reason when "in its sole
judgment, such cancellation is de
sirable." The publishers association de
clared: "This provision would per
j V S. Government censorship
in in t i most odious forms."
The pnriwt nvicai4 possible
an incentive tax benefit, to get
them into the export business and
to resume trade with Soviet Rus
sia and other Communist bloc
countries.
Those two subjects were recom
mended for resurvey by the gov
ernment in view of changed
world conditions. But both would
require changes in existing laws.
And Congress in its present mood
on taxes and Russia won't grant
cither Ulis year.
Only last June, Congress
unanimously approved a three
year extension of the Export Con
trol Act.
Other recommendations of t h e
11 subcommittees, as summar
ized by Eugene M. Brademan,
director of the Bureau of Inter
national Commerce, include these
main points:
Revise ocean freight rates,
which now make shipments from
Europe to America cheaper than
from America to Europe.
Set up a commission to re
view American anti-trust laws as
they affect export business and
to speed up handling of applica
tions for exemptions by Depart
ment of Justice.
-Provide for better financing
of export operations with liberal
ized credit and guarantees by Export-Import
Bank and (he For
eign Credit Insurance Association
of 70 private companies.
Push tariff negotiations under
Foreign Trade Expansion Act of
19S2, with hard bargaining to give
U.S. firms equality in competi
tion and to include American ag
ricultural products. I
Ask labor unions to conduct ed
ucational campaigns with mem
bers on idea that foreign invest
ments do not necessarily deprive
American workers of jobs, but
actually create employment, since
blanch plants are set up pri
marily to preserve markets in
compliance with foreign protecUve
taiiff laws.
Simplify foreign aid procure
ment policies which now have so
many regulations small business
can't handle them.
Improve foreign commerce at
taches in American embassies
away from State Department con
trol and return them to Depart
ment of Commerce, where they
were prior to 1939.
Improve Department of Com
merce market surveys and infor
mation services for benefit of
American exporters.
Continue and expand existing
Department of Commerce pro
grams for U.S. trade missions,
fairs and centers overseas.
cancellation of the service to a
newspaper whose editorials hap
pened to be critical of the ad
ministration. "Thus," the publishers ob
served, "this news service has
transcendent importance. If it is
not halted now it could lead to
further ambitious attempts by
this and any other U.S. govern
ment agencies to expand and en
ter into competition with private
news agencies.
"An expansion of this concept '
would result in a government
controlled news service such as
presently exists in some other
countries, including the Soviet Un
ion, where the so-called news
service Tass is government
owned and operated."
Congressman Findley insists the
government is not always a re
liable source of information. He
notes the philosophy of Arthur
Sylvester, Undersecretary of De
fense, who insists government
has "the inherent right to lie."
Freeman especially has utilized
the half-truth in plugging for
passage of pet projects such as
tlie Administration wheat pro
gram. There are now too many gov
ernment press agents. More than
3,000 separate press releases
have rolled off the Department of
Agriculture mimeo machines so
far this year. We need more good
reporters, says Rep. Findley. and
fewer propagandists. He adds:
"Spoon - feeding Washington's
press corps from a mountain of
press releases is bad for report
ers and had for freedom. Like
farmers who get dependent on
government checks, reporters get
dependent on press releases.
Farmers forget how to farm and
reporters forget how to dig (or
news.
"Government domination of
news gathering and distribution
the discipline that makes (or
quality, accuracy and integrity."
Governments do not rise and
fall on the Integrity of their press
releases, the Congressman says,
but newspapers do. If a reporter
is inaccurate, warped or slanted
in his writing, he will 1 o t his
job. If a wire sen ice goes
astray its customers will buy
elsewhere. If newspapers and
magazines are not reliable they
will lose their readers.