High Point Enterprise Newspaper Archives Jun 21 1974, Page 4

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High Point Enterprise (Newspaper) - June 21, 1974, High Point, North Carolina The High Point Enterprise an Independent shut paper Randall b. Terry president co publisher d. A. Rawley co publisher David a. Rawley jr., vie pre. Mrs. C. H. Lockwood vie pres. Joseph p. Rawley Gen. Mgr. Joe Brown editor Washington merry go round secret fees for postal chief traced 4a Friday Jane 21, 1974 thoughts for today another said. Quot i will follow you lord but let me first say Farewell to those at my borne Quot Jesus said to him. A no one who puts his hand to the plow and looks Back is fit for the kingdom of god a Luke 9 11, 62. It might Nai of look Kirk in bit it is to a Are he i ten uni from poit errors and for Tho pm poem of profiting bad or bought . Pc Oft trothing ton fir it . P rot id ant. Our spiralling tax rate although it tends to vary from month to month current rate of inflation is figured at roughly la per cent. When High pointers get their tax Bills later in the year they will find that the City s asking of them is up better than 13l per cent. It is our belief that the three members of City Council who voted a no Quot on thursday at budget adoption time had considerable Merit in their approach. Looking around the area and comparing City financial operations with those of other local governing units it becomes quickly apparent that High Point s added asking on the property tax is near or at the top. County governments and municipal governments All around have either managed to hold the tax line or raise it minimally. While financial problems obviously vary from place to place Many factors Are reasonably the same. If High Point is suffering a drop in Federal Revenue sharing so Are the others. If buying habits have produced changes in sales tax and gasoline tax income for High Point so presumably have they for others. This City a growth rate has not been exceptional and thus there should be no unusual addition demand for municipal services. It is not greatly surprising that City Council members sitting around the study tables at City Hall or at Home have not been Able to ferret out budgetary problems with any marked Success. As pointed out Here on prior occasions the physical budget is a very complicated document we have attempted to Analyse it from several different standpoints without uncovering any chances for major savings. It May. However be noteworthy that when Council held its open forum for discussion of the budget the forces for restoring a threatened police Cadet program were far better organized and More knowledgeable than were any Public efforts to reduce spending. Councilman Arnold Koonce made a convincing argument that projected across the Board employee pay raises in addition to Merit considerations would produce an unusually High Benefit level. With Little incentive for increased individual productivity. It May be that the majority of Council was persuaded of the need for such increases As 47.7 per cent for civil service costs. 18 per cent for the finance department 15.3 per cent for Parks and recreation. 15.3 per cent for the City clerks office and 14 2 per cent for the inspections operation. These increases Are based on the difference in amounts budgeted last year and budgeted this year rather than on actual expenditures our total tax Bills fortunately will be More in line with Normal Cost of living increases since we will be called upon to pay at the same 6ite for both county taxes and school District taxes. Could there be something about fiscal management that has t been fully Learned by City Hall can this be Legal Pardon us while we take a stroll into a Legal Thicket without a Compass Law degree i. But we find it appalling that two lawyers could go for months with the knowledge that a crime had probably been committed and not pass that information to proper authorities. In Syracuse n. Y., the two said that their lawyer client Confidence precluded their revelation until now that they had seen two dead bodies last september. Only after their client made a witness stand admission of their slaying did they feel free to admit their prior knowledge. According to associated press dispatches a preliminary investigation projecting the news Wall Street s Shakedown cruise the Stock Market seems to be rallying but the same cannot be said about morale on Wall Street. For a number of reasons the mood of the securities Industry is decidedly bearish and Likely to remain so for some time. One of the Industry is main problems is the flight of the private no institutional investor. A in 1973, private investors bought and sold nearly 20 per cent less Stock on the National exchanges than they did in 1968, and that 20 per cent represents $20 billion a a vice president of a major brokerage House recently wrote. A the percentage decline in Public participation has been even steeper in the Over the counter Market where several thousand shares not listed on any Exchange Are As a result institutions now account for 70 per cent of All transactions on the new York Stock Exchange. Because institutions buy and sell Large blocks of Stock they pay much lower commissions than the average individual. Volume discounts were granted on trades of More than 1,000 shares in 1968 in april 1971, commissions became negotiable on trades of Over $500,000 last april the amount was lowered to $300,000. And next May fixed commissions a in effect since the new York Stock Exchange was founded in 1792 a will be eliminated. These developments have contributed to the shaky financial condition of Many brokerage houses. A in 1973 alone 33 brokerage houses were absorbed by others while 73 closed up shop a Bernard Shakin wrote in Barrons financial weekly. A through april of this year six More were absorbed and 16 called it quits. A in two of the past four years the Industry has suffered losses last year new York Stock Exchange member firms lost $49 million. While they showed a profit of $69 million in the initial Quarter of this year april brought a loss of $47.8 million May also undoubtedly was in the the Industry a current watchword is a merge or bearing that imperative in mind two pairs of Wall Street brokerage firms recently announced plans to consolidate. Hayden Stone inc. Intends to merge with Shearson Hammill l co., while Kidder Peabody l co. Wants to acquire Clark Dodge a co. Bad As things Are now for the securities Industry rockier times May lie ahead. Legislation now pending in Congress would Reform and modernize the Industry in fundamental ways. Three Bills approved by the Senate provide for Federal control of securities processing and transfers Reform of Exchange membership rules and brokerage fee structures and creation of a Central Stock Market system. Final action on these measures probably will not come this year however. Legislation similar to that passed by the Senate has been stalled in the House interstate and foreign Commerce committee. In the Long run securities experts say the Stock Market cannot flourish unless interest rates come Down and Small investors return in Force. The recent upsurge of the Dow Jones average May in fact Stem largely from slight declines in the prime lending rate. Some analysts contend moreover that Stock values were so depressed that they had nowhere to go but up. But the president of a Bank in Columbus ca., offers this cautionary note Quot nobody rings a Bell when the Market hits Bottom a adds Wall Street columnist Alan Abelson a is this the end of the Bear Market we can answer that without equivocation a just wait six by Jack Anderson touted feature Syndicate Washington postmaster general ted Klassen has collected several thousand dollars in secret fees from a firm doing business with the postal service. While he was Deputy postmaster general he intervened personally to help the Martin e. Segal company earn a 13 per cent commission on a half million Dollar postal contract. Then he moved up to the Board of governors which controls the postal services unknown to the other governors he accepted a management consultant fees Quot from the Segal company while he was serving on the Board. When my associate Jack Cloherty confronted him with our findings Klassen admitted he had received around $20.ooo from the firm. Our investigation determined that the payments touted $22,917.67. The Board of governors meanwhile elected Klassen As the nations 60th postmaster general. Not Long afterwards the Segal firm was Back Angling for postal contracts. It landed a $50,000 contract although its bid astonishingly was More than double the lowest entry. Ted Klassen is a us. Stern impressive figure with a tired sagging face. He Rose from office boy to president of american can company before president Nixon recruited him to bring his business skills to the postal service. Instead we have exposed a record of miss pending and mismanagement Klassen Cut Back postal workers and slowed Down the mails during the 1972 election Campaign we reported in order to avoid raising postal rates and antagonizing the voters against Nixon. While the mail service deteriorated we wrote he right a Ounim Mihn s Jellin Mir Iii ight Choice cub. Hilt faint tut no am a a a a lavished postal funds on himself for everything from a Penthouse dining room to Christmas presents for his friends. He also padded the postal payroll with his cronies and handed out contracts to favored companies. Although these boondoggles Cost the taxpayers much More than the Segal company collected Kussen s dealings with this firm constitute a Clear conflict of interest and an apparent violation of the Law. Here Are the details on March 5. 1970, the firms founder and namesake. Martin e. Segal wrote a personal letter to Klassen in behalf of a client retirement advisers inc., which wanted a contract to produce retirement literature for postal employees. Postal employees already could get All the retirement literature they needed from the civil service commission nevertheless Klassen agreed to award Segal s client a five year half million Dollar contract. The Segal firm s take was 15 per cent. After Klassen already had agreed to the contract he instructed personal aides to make out the paperwork that would justify the Deal. Then he tried to hide the transaction by entrusting the Segal file to a Loyal aide who kept it under lock and key. We got hold of the file anyway the following year Klassen began collecting secret fees from the Segal company which retained him he told us. Because of hts expertise As a labor relations expert. He insisted that he could see nothing at All wrong with this. He also denied Advance knowledge of the subsequent $50,000 contract which was awarded to the Segal firm in March 1973. When Klassen was pm. Yet the company got the contract even though it was one of the highest bidders. Martin Segal told us he earned no Money personally from the company s Good Fortune. He said he is now an unpaid consultant to the company he founded. Footnote last week the Washington Post documented in a series of articles How the postal service under Klassen is Ridden with waste and inefficiency resulting in higher costs and slower mail service. The series by Ronald Kessler a painstaking reporter showed that first class mail users Are overcharged and therefore Are subsidizing the a junk Washington whirl the watergate prosecutor have drafted a favourable secret pre sentencing report on sex White House Hatchet Man Charles Colson acknowledging they would have had difficulty convicting him. The likelihood therefore is that he will get a Light sentence. Washington sceptics suspect Colson s sudden embrace of christianity was a scaffold conversion. But members of his prayer Circle Are convinced his heart has changed. They come to his office daily for prayers. They also spent weeks helping him fill a huge scrapbook of clippings to dramatize to the court that he get a fair trial. Washington a controversial International police Academy which provides training for foreign police As part of our foreign Ald program amazingly also trains Security guards for overseas corporations. Guards have been sent to the school from the arabian american Oil co., Firestone tire and rubber co. Of Liberia saudi arabian airlines the liberian american mining co. And the Creole Petroleum corp. Of Venezuela. An Aid spokesman assured us that except for $9 insurance Premium for each student the corporations reimburse the . Government for the training. Following our recent analysis of the foreign Aid program the Agency a Public information officers were provided with a a guidance in answering anticipated press inquiries. The official line was that the accuracy of our figures could not be challenged Only our tends to absolve them of responsibility. Even so. Further conferences Are being held on the possibility that the two were guilty of obstruction of Justice. Somehow we had Laboured under the belief that the Law makes it illegal to conceal knowledge that a crime has been committed a Rule doubly of importance to one who is an officer of the court As ail attorneys Are. Even ignoring the moral responsibilities to the families of the deceased it would seem that this requirement would supersede the confidential relationship. We d be delighted to display in this space on a subsequent Day any informed response to our dilemma. A word edgewise the Man Brezhnev anything but a clod by John p. Roche King features Syndicate with president Nixon and Secretary of state Kissinger embarking for Moscow in the near future we Are fortunate that John Dornberg a former Newsweek correspondent in Moscow and widely respected authority on the soviet leadership a has just brought out a penetrating political biography of Leonid Brezhnev. For far too Long Brezhnev has been a faceless Man a nobody who suddenly arrived on the scene with the fall of Khrushchev in 1964. Domberg so Brezhnev the masks of Power Basic books goes a Long Way towards filling that Gap. As he himself is the first to admit tracking Down the history of a communist party figure is a form of detective work. With the exception of an ebullient extrovert like the late Nikita Khrushchev it is often impossible to get details on private lives. When did Brezhnev get married did he or did no the serve in the armed forces in the 1930s? these and other simple questions that normally could be settled by reference to Standard sources remain unanswered i was for example quite startled to see Brezhnev right behind Khrushchev in a photo of the famous a Kitchen debate the soviet party chief had with vice president Nixon in july 1959. Invisibility Brezhnev developed a Superb set of defensive a reflexes in the 1930s when he began his party career. Essentially he seems to have had a Talent for invisibility at dangerous moments such As Stalin a periodic purges. Heads to the right of him Heads to the left of him would fall a and then when the bodies had been removed you would discover the taciturn Brezhnev somehow one notch higher in the Hierarchy. He also had Good Luck several times for example in the a Virgin lands Quot agricultural program it seems As though he just missed the titanic and he was fortuitously abroad when Khrushchev losing his support in the politburo summoned the Central committee and triumphed. Dornberg suggests that one of Brezhnev a strongest suits is his close relationship with the military both marshal Andrei Grechko and Admiral Sergei Gorshkow Are old companions and Brezhnev s apparently outstanding War record he was not a political commissar who sat in rear Headquarters endeared him to a wide Range of High military officials. Naturally enough he has kept these relationships warm by appropriate budgetary payoffs to the elite on Frunze St. A Moscow a equivalent to the Pentagon. Probably the most significant conclusion that merges from Domberg a Book one which runs against the conventional Wisdom that the present soviet elite is composed of second rate clods is that Brezhnev is an extremely intelligent Man with a Superb sense of timing. Moreover again contrary to various commentators who have Brezhnev caught in an Enfil Ade Between a a Hawks and a doves a the evidence Dornberg submits indicates that first Brezhnev a position is by soviet standards quite secure and second that the degree to which he is personally relaxed can be estimated from the fact that his apartment is on a floor Between those of the head of the uniformed police and the head of the secret police Kab he is no paranoid Al Stalin secreted in a private fortress. Heir unc Hosen to quote Dornberg a Brezhnev is the soviet a Bossy today. He got where he is through patronage intrigue manipulation mane vering and political influence peddling. Brezhnev a political machine is undoubtedly a precision instrument. But its smooth operation is not the Only explanation for his durability. Unlike Lenin Stalin and Khrushchev he has never chosen an in the strategic terms that or. Nixon and Secretary Kissinger must contemplate his top priority has been to quiet things Down in the West so that China seen As the top enemy can be dealt with. Not the least of his accomplishments in this respect has been to get the United states to accept the Post War status quo in Europe and in effect accept the user As an equal on the world stage. In psychological terms i would argue further that Brezhnev has recently managed to outbox the americans at virtually every turn. He has managed to present the picture of a United states grateful for the favors it has received from Moscow for example the great favor they did us by taking our surplus wheat off our hands and for another by permitting american corporations to move in and compensate for soviet technological incompetence. I Hope that president Nixon and Secretary Kissinger will keep their wallets securely buttoned their next favor could be to Exchange a no aggression pact for the elimination of nato. Who Are our friends ? javits zeroes in on Earl Butz by Alan Emory North american newspaper Alliance Washington sen. Jacob k. Javits r-n.y., says there is a not a salutary appearance in agriculture Secretary Earl l. Butzu a comment that he is a playing pretty closely Quot with congressmen supporting president Nixon against impeachment when his department has jurisdiction Over the Dairy Industry whose Campaign contributions to Nixon form a major Issue in the impeachment inquiry. The House judiciary committee is investigating whether the president raised Dairy Price supports in 1971 in response to a Promise by a major milk cooperative to raise $2 million for his re election Effort. Butz said he made the assessments himself on a who our friends Are on the Hill. I do not go out of the Way to favor those who Are against javits told a reporter he considered that a a rather curious in fact he observed it helped reintroduce the idea of a impeachment politics he had vigorously criticized a few weeks ago. Javits says it is impeachment politics to tailor administration policies to satisfy conservative lawmakers in Hopes of collecting anti impeachment votes in Congress. He said the Congress had to be a a vigilant against such efforts. Javits said he was asking Butz a to explain exactly what he Means by playing pretty closely with these congressmen How they Are being favored and Why and under what provision of Law which allows such the president has some important decisions to make on legislation javits pointed out including a Legal services corporation consumer Protection welfare and land use. If he played impeachment politics on them it would prove Quot very damaging for whatever remains of Public Confidence in the asked whether he thought Butzu a comments tied in with the widely criticized Dairy cooperative payments to the Nixon Campaign in Hope of winning higher Price supports Javas said it Wai a certainly not a salutary appearance when it Cornel out of the same department which has such jurisdiction Over an Issue which is one o the areas where Thi impeachment inquiry ii Nixon raised the Pulci supports after that agriculture department announced they would remain unchanged. That White House attributed Thi switch to the threat o congressional approval o even higher supports with tin votes to override t presidential veto. Congressional source indicated. However tha evidence is overwhelming i veto would have been sustained. Both the House judicial and Senate watergate committees have come a with evidence indicating Thi decision to raise Mill supports was linked close to the Promise of Campaign contributions. Key evident May come from forme White House aide Charles w Colson in tile near future

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