The Seminole Sentinel (Seminole, Tex.), Vol. 49, No. 31, Ed. 1 Thursday, June 28, 1956 Page: 2 of 16
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THE SEMINOLE SENTINEL
THURSDAY, JUNE 28, 1M6
the eagle flies high!
EDITORIAL COMMENT
19 Minutes
Anyone who thinks typical • businessmen de-
vote much or most of their time to counting the
profits would do well to read a report made by
the National Association of Manufacturers.
The average manufacturing company, this
report shows, spends most of the working day
paying off ithe costs of doing business — mater-
ials and supplies, wages and salaries, taxes, etc.
Only about 19 minutes of that 8-hour day are left
In which to earn profits. And only about half of
those 19 minutes result in dividends for the own-
ers — the rest of the "profit minutes" are used
for reinvestment In the business.
By contrast, wages and salaries take two
hours and 19 minutes, taxes a trifle more than'
43 minutes. The workers and the tax collectors
do a lot better than the owners when It comes
to dividing up the money business takes in.
In 50 Years
Men and institutions are ultimately judged
by results.
That la true of medical research. And the
results it has produced In the last half-century
or so are superlative by any standard.
The head of a pharmaceutical company tells
of some of them in the current issue of The Ex-
change Magazine. In 1900, life expectancy at birth
was about 49 years. Now it is around 71 years,
and some experts expect it to reach between 90
and 100 years by the end of this century.
In 1900, the greatest killer was pneumonia.
Now It has been all but defeated, with the death
rate down from 152 per 100,000 to 12. In 1900,
the survlvoro of pneumonia could count on pay-
ing three months' wages for hispital bills. To-
day the disease is often cured at home with anti-
biotics, at a comparatively small cosrt.
Particularly noteworthy progress has been
made In saving children. Of every 1,000 babies
surviving birth in 1900, 162 died within the first
year; today the figure is less than 30. At the
beginnnig of the century, 7,000 children died an-
nually of whooping cough; last year the mor-
tality was 810.
These are but a few of the many facts that
could be cited as to what medicine has accom-
plished on behalf of us all. In the last 50 years
more progress has been made In conquering
disease and In prolonging life than In the entire
previous history of man's existence. - It was done
by free men working in a free system.
Without Reason
The essence of the principal recommendation
made by the Presidential Advisory Committee on
Transport Policy and Organization is simple. It
is that the various comitaon carriers should have
greater freedom In pricing the transportation
services they offer. Each carrier would be per-
mitted to charge a rate without there being tak-
en into consideration the effect it would have
on other forms of transportation — provided the
rate In question was compensatory, not unreason-
ably high, and not discriminatory or preferential.
That proposal has been endorsed by news-
papers throughout -the country, by many legis-
lators and other high government officials, by
the purchasing agents and traffic managers of
many leading companies, by civic and business
organizations, by the railroads, and by others.
It has been opposed, on the other hand, by some
of the railroads' competitors.
The opposition, it would seem, can stem
from only one Idea — the idea that these com-
petitors are for some reason entitled to special
protection even though it means higher trans-
portation costs and artificial and arbitrary allo-
cation of the available traffic. And the users of
transportation — which Includes everyone, direct-
ly oV Indirectly — would pay the higher costs.
This idea has neither rhyme nor reason. If
fair competition is good in other fields of en-
deavor, it is good in transportation. Under fair
competition, each carrier can make the most of
Its inherent advantages — and the public will
get the best possible transportation service at
the lowest possible cost.
New Despotism?
"Liberal" is a grand old word. But its true
meaning and Its significance have been tragic-
ally distorted in recent times.
Henry Hazlitt describes what has happened
In the introduction to his new book, "The Free
Man's Liberty." He writes: "One of the crown-
ing Ironies of the present era. . . is that it is pre-
csiely, especially In America, the people who flat-
eringly refer to themseives*as 'liberals' who have
forgotton or repudiated the essence of the true
liberal tradition. . . . Historically, the liberals
fought against government tyranny; against gov-
ernment abridgment of freedom of speech and
action; against governmental restrictions on ag-
riculture, manufacture, and trade; against con-
stant detailed governmental regulation, interfer-
ence and harassment at a hundred points; against
(to use the phrases of the Declaration of Inde-
pendence) 'a multitude of new offices' and
'swarms of officers'; against concentration of
governmental power, particularly in the person
of one man; agsifm government by "film «nd
favoritism.
"Historic liberalism called, on the other hand,
for the Rule of Law, and for equality before the
law."
Today's self-styled liberals are enthuiasticai-
ly in favor of just about everything the historic
liberals opposed. Their goal is to concentrate
more and more power — over business, agricul-
ture, labor, everyone — in the hands of the gov-
ernment They are, for the most part, cantem-
tuous of state's rights, and believe in a solidly
concentrated central government, In which all
major decisions are made In Washington. The re-
sult is wha/t Mr. Hazlitt accurately terms "a trend
toward a new despotism."
Real liberalism stands for maximum freedom
for all. It Is predicated on the principle that gov-
ernment Is the servant, not the master of the
people.
Matter of Time
Once again various proposals are being made
for extending the coverage of the Fair Labor
Standards Act (which includes the federal wage-
hour laws) to retailing and other service trades
which have been exempted by Congress after
Congress ever since the Act came into being.
One proposal would continue to exempt
smaller retailers—those with annual volume un-
der $500 thousand and fewer than four stores-
while covering all others.
The grave flaw in this is that retailing is an
absolutely local business. Even though the auto-
mobile has increased the consumer's potential
shopping area, consumers make the overwhelm-
ing bulk of their purchases within a short dist-
ance from their homes. Labor is drawn from
local sources. Business and living costs for store
operators and store employees alike are de-
termined by local conditions, which vary from
region to region. Each store must compete with
other local stores. This is true whether the store
in question is a family operation or an outlet of a
great national chain. Size has no bearing on the
Inescapable fact that retailing is local in nature.
In this connection, it is a matter of interest
that smaller retailers are opposing the proposal
mentioned—even though they would not be affect-
ed by it in its current form. The reason for their
opposition is that these retailers realize that in all
probability subsequent amendments would bring
them, too, under federal control. Once a segment
of any industry becomes a subject for bureaucra-
tic regulation, it is usually only a matter of time
before all the industry is included.
The precedent set by previous Congresses
and Administrations—representing both the poli-
tical parties —was a wise one, and should be fol-
lowed again.
Who's at Peak ?
The New York Times quotes a statement
made a short time ago by the present head man
In Russia, Nlklte S. Khrushchev: "The United
States hasf passed the peak of Its postwar econo-
mic opportunities;' no new markets are in sight.
There is therefore no prospect of a further sub-
stancial increase in production."
This amazing example of wishful thinking
can be profitably compared with something said
by Dr. Arthur R. Upgreen of Dartmouth, in a
talk before an American Petroleum Institute
meeting: "The most remarkable fact in the entire
economy today ds the planned determination of
industry-, the petroleum Industry particularly, to
keep abreast of expanding family demands."
Dr. Upgreen forecasts a great increase In our
total gross national output within the next 10
years, along with a big jump in the average
family income — and, consequently, fast-expand-
ing markets for all manner of goods and services.
He also points out that "as an industry, petroleum
has the highest plant Investment per worker and
one of the very highest levels of per worker earn-
ings found in all the United States."
In other words, the oil Industry — by its ac-
tions — is exposing the communist claim that
capitalism is about through for the economic id-
iocy that it is. All manner of other enterprises
are doing the same thing. The case for free en-
terprise was never better.
Out of Business
Some good news which hasn't received as
much notice as it deserves is coming out of Wash-
ington.
Joseph Terrell of the Wall Street Journal re-
ports: "A major Eisenhower Administration
move toward freer enterprise — yanking Uncle
Sam's long hand out of competition with private
business — is gathering new momentum." Var-
ious government business operations — ranging
from a steel foundry to housing developments —
have been sold to private enterprise. Of greater
moment, the chances seem to be Improved for
law changes which will eliminate certain obstac-
les to the get-out-of-business drive.
A recent Budget Bureau survey shows how
deeply government has gone into business. To
quote Mr. Terrell again: "Although by no means
all-Inclusive, the survey found Uncle Sam has his
finger in almost 20 thousand commercial or In-
dustrial activities. . . with total assets of nearly
$11.9 bllMon." He also says: "The military men,
deeper into business activities than their civilian
colleagues, are apparently leading the way in get-
ting out of them. In all, the Defense Department
has reviewed almost 2,000 business-type installa-
tions for possible discard."
The benefits that result from getting govern-
ment out of business are many. For one thing,
sale of the properties could bring huge sums to
the Treasury, to be used for dent reduction w
tax reduction. For another, when these business-
es go Into private hands, they become taxpay-
ers — Instead of subsidized tax-eaters. Most im-
portant by far in the long run, every time gov-
ernment takes a step in this direction, the free
enterprise system, upon which representative gov-
ernment itself rests, is strengthened and vitalized.
What a thrill for America's youth
Joyous, free, on the Fourth of July
What a heritage, theirs, in all truth,
As the star-spangled Eagle flies high
The 56 stout-hearted (they
faced hanging for Insurrection
against the British) patriots
who signed the Declaration of
Independence didn't just go
home after their bold act and
forget'about it. They fought for
the convictions they had sub-
scribed to — and after the shoot-
ing was over, they worked for
them — to make them work.
Two of the signers became
Presidents —- Jefferson and
Adams — and one, Elbrldge Ger-
ry, became Vice President. Sev-
istadf ibecame Governors, others
state legislators.
Born on the Fourth of July
were George M. Cohan, Ameri-
can actor-playright, who wrote a
song about it ("I'm a Yankee
Doodle Dandy,') and laconic Cal-
vin Coolidge, 30th President of
(the United States (who never
said much about it)
Three Presidents died on In-
dependence Day —^John Adams
and Thomas Jefferson, in 1826,
and James Monroe, in 1831.
Nathaniel Hawthorne, who
wrote "The Scarlet Letter" and
"The House of the Seven Ga-
bles," was born July 4, 1804. On
Independence Day, 1894, French
sculptor Bertholdi's famed monu-
ment "Liberty Enlightening the
World," known to us as the Sta-
tue of Liberty, was formally pre-
sented to the United States, in
Paris.
July 1-3, 1863 — The battle of
Gettysburg (Pa.), decisive in the
War Between the States.
July 4, 1776 — In his lodging
room in Philadelphia, Thomas
Jefferson, "without reference to
book or pamphlet," wrote the
immortal Declaration of Inde-
pendence, accepted by Continen-
tal Congress this date.
July 9, 1776 — By order of Gen.
Washington, the Declaration was
read ito his troops "as an incen-
tive to act with fidelity and cour-
age."
July 11, 1667 — Townsite of
Newark, N.J., bought from In-
dians for, among other things,
four barrels of beer, 100 bars of
lead, 20 axes.
July 26, 1775 — Congress made
Benjamin Franklin the first U.S.
Postmaster, at $1,000 a year.
If we have reflected for a mo-
ment on the significance of In-
dependence Day, it is none too
early now to begin reflecting on
how each of us can, come No-
vember 6, do his part to assert
that independence, acknowledge
our freedom.
The on big way to do it is to
begin informing ourselves on the
campaign issues — and then
firmly to resolve that when Elec-
tion Day comes, we all Will vote!
Fewer than 44,450,000 inde-
pendent and free Americans both-
ered to vote in the Congressional
elections of 1954 — less than 52
percent of those eligible. That is
a sad, almost disgraceful com-
mentary on whatever noble
thoughts we entertained on the
Fourth of July.
C of CSaysli. S. May Compete
In Field of American Business
WASHINGTON — If you're in
business there's a good chance
Uncle Sam is one of your com-
petitors, says the Chamber of
Commerce of the United States.
And if you're not in business, you
as well as the fellow who is, are
helping to pay the tax bill for
government's business-type acti-
vities.
Just recently the federal Bu-
real of the Budget reported that
Uncle Sam actually is operating
19,771 commercial-industrial ac-
tivities With 266,000 employees
and $11.9 billion in capital assets.
Previously, it had been estimated
that government: business-type
activities totalled only 3,000.
Someone, the Chamber notes,
had been making a molehill out
of a mountain.
Hie new report shows that Un-
cle Sam's business projects fall
into more than 200 categories, in-
cluding mining, contract con-
struction, manufacturing, whole-
sale and retail trade, services,
farming, forestry and agricul-
ture; also, transportation, com-
munication, finance, insurance
and real estate.
That puts Uncle Sam into
just about every field of private
business and industry.
The Chamber points out that
when Uncle Sam runs a business
that private citizens could run
just as well, he is adding unne-
cessarily to the cost of govern-
ment. Further, he is losing rev-
enue — for private business pays
taxes while government busi-
ness-type activities do not.
•twAy.ran narrow rat."
About Small Business
WASHINGTON—Contrary to
some widely-publicized state-
ments, small business in this
country is doing quite well, ac-
cording to the Chamber of Com-
merce of the United States.
The statement is based on
the Federal Trade Commission-
Securities and Exchange Com-
mission Quarterly Report for
Manufacturing Corporations.
The report shows that in the
test year corporations with as-
sets of less than $250,000 have
shown the greatest increase in
profit margins of all classes.
Profits for this group were
57.1 per cent higher than 1954
levels. This compares with an
average increase for manufac-
turing corporations of all sizes
of 20 per cent. Also, profits per
dollar of sales for corporations
from $250,000 to $1,000,000 in
assets have risen faster than
the average for all corporations
(though not as fast as the prof-
its of the smallest group).
It is often said that the in-
creaising number of business
failures shows that small busi-
ness is not sharing in the pres-
ent prosperity, the Chamber
notes. But, while it is true that
business failures have risen
since 1950, the number of new
incorporations in the same per-
iod, shows a greater increase—
36 per cent against 24 per cent.
If the pessimistic reports
about small business were all
true, the Chamber asks, how
would it be possible for such
large numbers of new business
to spring up?
NO COMMENT
By JAMES DOUTHAT
WASHINGTON — The nation's
economic growth is being util-
ized for growth of the govern-
ment. There Is more—rather than
less—government spending.
Between fiscal 1955 and 1957
—based on current available da-
ta—federal government revenues
will have Increased about $9 bil-
lion with none of it going back
to the taxpayer.
This situation is distressing to
the economy advocates in Con-
gress, who are greatly concerned
over constantly rising spending.
Here's the fiscal situation at
the present time:
• A joint Treasury-Budget Bu-
reau statement estimates the
surplus at $1.8 billion for the fis-
cal year ending next June 30.
The administration says this will
permit "a most welcome reduc-
tion in our huge national debt."
The staff of the joint commit-
tee on internal revenue taxation
estimates the surplus at $2.3
billion — resulting from a more
optimistic view of actual rev-
enues.
Republican and Democrats
agreed with the administration
that a surplus of this order will
not warrant tax reduction this
year but should be used for debt
reduction.
The economy-bloc in Congress,
however, points out that these
figures do not tell the whole
story. For example, the adminis-
tration's revised data also show
an increase of $1.6 billion in ex-
The American Way
By DR. ALFRED P. HAAKE
(EDITOR'S NOTE: Alfred P.
Haake, Ph. D., Is a noted econ-
omist, public relations consul-
tant, authr and lecturer.)
One who has lived through the
almost cataplysmic changes of
the almost 70 years since the pas-
sage of the Sherman Act in 1890,
can indulge in a little ironical
amusement when he sees repeat-
ed, over and over again, the fire-
breathing with which the dema-
gogues way back there attacked
the wicked trusts.
Of course, there is a difference.
The year 1890 closed an era of
frank and unimpeded search for
monopoly in business. We had
not yet learned the lesson that
monopoply can teach. The Sher-
man Act was needed and served
a useful purpose, together with
the later Clayton Act, In stem-
ming the tide against monopoly.
Now we have no monopolies,
such as rightly aroused indigna-
tion In the closing years of the
past century. The Sherman and
Clayton Acts have served us well.
We do have some big businesses,
thanks to their efficiencies and
enlightened public policies.
But, we still breed demagog-
ues who burn their nostrils with
new fire-spitting search for votes
over the dead bodies of success-
ful business ventures. Of the
many, many examples, consider
these — itypclal for their simulat-
ed moral indignation and adoles-
cent logic.
We are in an election year,
with some men groping almost
desperately for issues to upset a
reasonably successful administra-
tion. So it is not surprising when
up comes a Senator, waving the
tail of his coonskin cap as he
stentoriously demands that a
great automobile company be
forced to reduce its prices, we
presume, of course, lest it be-
come a wicked monopoly. It is
the rallying cry for the disgruntl-
ed incompetents who seek rea-
sons for failure outside them-
selves, always.
Another Senator, the pro-
nouncement of whose name an-
noys most the Senator himself,
is quoted as asserting that the
same automobile company is
quoted as asserting that this
same automobile company is
making much too much money
arfd demanding that its prices be
cut.
A coterie of professional "fall-
guy" hunters complains to high
heaven that the same automobile
company Is being unduly favored
by the Eisenhower Administra-
tion in awarding of defense con-
tracts. »
Let's see.
If the two Senators had their
way, cut the automobile prices of
the great company, and permit-
ted the other manufacturers to
retain their prices and hope for
profits, the great company would
soon be selling so many cars that
there would be only such business
left for the others as the great
company could not supply. So
the big company would have to
build still more plants and make
still more cars while the others
built fewer and fewer cars and
fired more and more men .And
we would have a real monopoly,
thanks to the fire-breathing dem-
agogues.
The Government would then
have to step in and spin the whole
box of Pandora's ills over the
body economic. Price-fixing
would be followed by wage fix-
ing, output fixing, control of
management as well as men, al-
location of product among dis-
tributors, prices and profits and
employment of distributors, and
the rest — until the inevitable
end of complete government dic-
tatorship.
As for the share of business
given by the Eisenhower admin-
istration, it is interesting to note
that General Motors was in first
place, right on top, on the list
for defense contracts awarded
during the five years of Harry
Truman's Administration. And
Harry did not give the contracts
there because he loved the re-
cipients!
From July 1, 1953 untile June
30, 1955, during the Eisenhower
Administration, the government
cut back the volume of defense
work, and General Motors drop-
ped to 21st place on the list. With
the resumption of defense activi-
ty and need for goods, General
Motors was in 7th place with
2.7 percent of the total. Ford
was given 2.2 percent. Both, be-
cause their services were very
much needed.
Wouldn't it be wonderful if the
fire-breathers could be turned
loose on the job of melting the
Soviet iron curtain?
Of the 187 companies engaged
in making petrochemicals in the
U. S. and Canada, 63 are oil com-
panies or oil company subsidia-
ries.
penditures for this fiscal year.
Otherwise the surplus would
be at least $3.4 billion — enough
to make possible some debt re-
duction as well as a substantial
cut in existing discriminatory in-
come tax rates. •
Furthermore, despite an ever-
growing economy, the joint
committee staff perdicts a slight-
ly smaller surplus for the fiscal
year beginning July 1 — only
$2.2 billion — again due to in-
creased spending.
Proponents of tax reduction
also must face the fact that the
House, in acting on ten appropri-
ation bills for fiscal 1957, made
net reductions of only about $600
million, or 1.2 per cent from a
total of $50.5 billion requested.
Based on its record, the Senate
is not expected to cut below this
amount, as this body is normally
more generous than the House.
PRIVATE vs. PUBLIC ENTER-
PRISE — The House for private
enterprise; and Senate for pub-
lic ownership. This is the situation
on legislation dealing with the
street car-bus system in the Dis-
trict of Columbia.
The Senate's cure for labor
troubles was to pass a bill set-
ting up a U. S. agency to run the
business — and, further, estab-
lishing a new precedent by giv-
ing the employees of the govern-
ment agency the right to strike.
But the House voted to continue
private operation — and a joint
conference will seek to break the
deadlock.
This same conflict in basic
philosophy may develop again —
if and when the House considers
the controversial Niagara power
project.
The issues was unprecedented
in public-private power contro-
versies. The elements usually de-
pended upon to justify socializ-
ing hydroelectric power projects
— flood control, navigation, rec-
lamation — were absent. It was
simply a choice between public
ownership and private enter-
prise.
Senator Styles Bridges (R-NH)
— assailing the bill — said that
never before has Congress been
asked to authorize government
development of purely an electric
power project. Always before, he
said, other elements were involv-
ed. And he added:
"Enactment of this bill would
represent the greatest victory yet
accomplished not only by those
whose philosophy requires the,
unlimited expansion of public
power, but by those who would
nationalize all our basic indust-
ries."
Despite this, the Senate voted
for the Lehman (D-NY) bill 48
to 39 (with eight not voting).
In .its headlong rush for pub-
lic ownership, the senate over-
rode the law of New York by giv-
ing absolute priority in power to
public bodies and cooperatives —
Thus paving the way for build-
ing transmission lines In com-
PUNT AND EQUIPMENT EXPENDITURES
40 r—
(BILLIONS Of DOLLARS)
~ 1 LpZLJ
HI
ttttf
K
j
1946 1948 1950 1952 1954 1956
PREPARED »Y NAM FROM GOVERNMENT STATISTICS
Business Planning Greatest Outlay
For New Plants, Equipment in 1956
American business enterprises
are planning to spend more mon-
ey for new plants and equipment
in 1956 than in any other year.
These expenditures will provide
additional goods for an expand-
ing nation, and provide millions
more jobs in the future.
The 35 billion dollars of pro-
jected expenditures In 1956 is six
billion, or more than one-fifth,
greater than for all of 1955. A11
major Industry groups plan to
increase their capital outlays by
at least 10 percent over last year.
The largest increases are being
planned by the durable goods
manufacturers and the railroads,
41 and 42 percent respectively.
Many factors are contributing
to such record breaking outlays.
Geographical dispersal of plants
to obtain lower transportation
Charges to consumer market
areas is an Important one. The
assured future growth in popula-
tion requires additional produc-
tive facilities. Competition among
business organizations for a
greater share of old and new
markets has an important bear-
ing. The high level of defense
spending is also a contributing
factor.
The trend of business capital
outlays is shown on the chart.
The total amount spent by busi-
ness for more and better plants
and equipment has amounted to
nearly 270 billions of dollars
since 1945.
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LEWIS A. REDDELL ..
BARNEY THOMPSON
BILL SANDKL
MISS GLENNA MA YFIELD
FIJBU5HKK
EDITOR
GENERAL MANAGER
- SOCIETY EDITOR
cor-
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Thompson, Barney. The Seminole Sentinel (Seminole, Tex.), Vol. 49, No. 31, Ed. 1 Thursday, June 28, 1956, newspaper, June 28, 1956; Seminole, Texas. (https://texashistory.unt.edu/ark:/67531/metapth416166/m1/2/: accessed July 17, 2024), University of North Texas Libraries, The Portal to Texas History, https://texashistory.unt.edu; crediting Gaines County Library.