The Atlanta Constitution from Atlanta, Georgia • 92

REPAID DEBT IN 1836 Priority Debate Revives Jackson View jTiiinin 20-D THE ATLANTA CONSTITUTION, Friday, Dec 1969 Rfiilroads, Unions Reach Agreement By HARRY F. ROSENTHAL WASHINGTON M-The threat of a nationwide rail shutdown was erased Thursday when agreement was reached on a wane I' -I'i 4 sv I. LAk increase for 48,000 shopcraft workers-after 20 hours of nonstop Udl gcUlllllg. The agreement still must be ratified by members of the four unions involved, but Secretary ot Laoor ueorge f. Siiultz said, we win not oe naving any Of what little is left, perhaps no more than 10 per cent will go to social programs.

That is an estimate of the portion of total nondefense output going into such uses now. Tax reduction would chew up the rest Herbert Stein, a member of the President's Council of Economic Advisers, sees a paradox here. Many of the chief supporters of tax reduction in Congress, he notes, are also leading advocates of social programs. The explanation could be political expediency alone. It might also be something more subtle.

By dragging his feet for almost a year over passage of the surtax, Rep. Wilbur Mills, the Arkansas Democrat who heads the House Ways and Means Committee, may have reversed the American course in Vietnam. The confrontation with Congress epitomized by Mills' stance undoubtedly was a factor in Lyndon Johnson's withdrawal from the field. Similar indirection may offer the only practical course to Congress today to effect a change in national priorities. By cutting federal taxes and expenditures Mills was careful to link the two Congress would give the states and cities greater elbow room for revenue-producing efforts of their own.

The military would get none of this. Social programs, unfortunately, might get considerably less than the full potential. It is unlikely that states and cities would increase their taxes by the full amount of the federal reduction. A more practical approach would be for Congress to permit taxpayers to credit part of what they pay in state and local taxes against their federal tax bills. This would obviate the need for distributing federal revenues to the states, with all the dangers of political control that Jackson perceived.

But it might also assure that a significant portion of the drop in federal receipts went to public rather than private purposes. (ConrrtfU IMf by tb New Tit Time NEW YORK In 1836, the federal governmentfor the only time in its history-completed the repayment of all its outstanding debt. Andrew Jackson, then President, signed a bill to return remaining cash in excess of the working needs to the states on the basis of population. These events, which have seldom appeared to be more than a footnote to history, have a 'curiously contemporary ring more than a century and a quarter later. Jackson, an early advocate of distributing the surplus, changed his mind.

He vetoed one measure to return federal monies to the states, J)ut signed another later as a matter of political necessity. He made no secret, however, of his objections. In his veto message, Jackson said the -proper way to deal with a surplus was to cut Jhe price of public lands and reduce taxes, the twin factors giving rise to the surplus. He Warned particularly against centralization. "Money is power," he wrote, "and in the government whicn Pavs a11 the PuWic officers of the states will all political power be substantially concentrated." This was before Abraham Lincoln discovered the income tax, but the revenue-creating propensity of the federal tax system already was proving embarrassing.

"I cannot assent to the principle that a Surplus be created for the purpose of distribution," Jackson added. Today, distributing a surplus might seem 'to be far less a problem than assuring that one continue. Nevertheless, in the debate about national priorities about who should be taxed, Ihow much, and for what the Jacksonian discussion has relevance. I Statists argue that urgent needs, for urban renewal, for economic opportunity, for elimina--tion of air and water pollution, make a high Zlevel of federal taxation essential. However, is no assurance that federal revenues, strike on the railroads." Wil liam W.

Winpisinger, the chief union negotiator, agreed. Details were withheld, but it man of the industry's national Railway Labor Conference. Throughout the marathon bargaining session, Shultz remained in his office. The Nixon administration had a major stake in the negotiations, hoping not only for a settlement without government intervention, but also for one that would hold down increases in wages and prices in line with efforts to curb inflation. The agreement, if ratified, lifts pressure from Congress for legislation to prevent a nationwide rail shutdown.

The ratifi HIS PROBLEM Richard Nixon INCOME TAX Abraham Lincoln "MONEY IS POWER" Andrew Jackson was learned current average pay will increase from $3.59 per hour to $4 for 1969 and to $4.28 by August 1970. The agreement covers all of 1969 and will mean back pay to Jan. 1 of $380 to $400 for each worker. "While we were" not able to cation votes will take a week to achieve every goal we set out to achieve, we did hit some milestones," said Winpisinger, vice 10 days to complete. The dispute has dragged on which recently have outpaced considerably the growth of the economy, will find- their way into such outlets.

A more likely prospect is that most of the additions will go to the military. A study by the National Industrial Conference Board shows that in only four periods in the nation's history, from the founding of the republic until the War of 1812, between the Civil and Spanish-American wars, between World Wars I and II, and between World War II and Korea, have military expenditures fallen below 40 per cent of total federal outlays. During wars, they have leaped as high as 90 per cent. One reason is obvious. Defense and the related area of foreign affairs are domains in which the federal government has exclusive jurisdiction.

There can be no argument whether such activities are better administered at the national or local level or perhaps by individuals in their capacity as private citizens. There can be no challenge to political power centered in Washington. There is little reason to believe that peace In Vietnam will produce any big change in this situation. Much of the $30 billion "peace dividend," administration sources have said, will go to restoring military programs to their pre-Vietnam levels after adjustment for the sharp rise in prices since 1965. nearly a full year under delay ing provisions of the Railway president of the AFO-CIO International Association of Machinists.

"We are confident our membership, in evaluating it, will agree with us." Labor Act. The unions have been free to strike since 12:01 a.m. Wednesday when a 60-day Other unions involved are strike baninvoked by President Nixon expired. electricians, sheet metal workers and boilermakers. The unions had demanded a Shultz called the settlement a triumph for collective bargain retroactive increase of 10 per cent for this year, plus 20 cents an hour more for highly skilled ing.

"The earners are very grati men and a cost-of-living escala NYSE President Sees Volume Rise fied," said John P. Hiltz, chair tor clause. Georgia Strikers Demanding Boycott, of All GE Products I Ul I Ll I Inl NEW YORK iB Average daily volume on the New York Stock Exchange could double by 1975 and triple by 1980, Robert W. Haack, exchange president, said in a year-end statement. computer, named the GE-655, The computer was called the "Record demand could be the In an unrelated Atlanta development, GE announced via closed circuit television Thursday that it's marketing a new "largest and fastest dataproo essing system to date." hallmark of the 1970s," Haack IV MUTUAL FUND -1 LOOKING FOR CURRENT YIELD FROM GOVERNMENT SECURITIES? Mutual Fund for Investing In U.S.

Government Securities Seeks Current Income by Investing In Securities Which are Guaranteed by the U.S. Government or its Instrumentalities both as to the Payment of Principal and Interest said. "Ten years hence, shares compared with the peak of 2.93 billion in 1968. Stock prices, it said, slid some 16 per cent from their peak in November, 1968, through November, 1969. listed for trading on the exchange could reach 38 billion FOR INVESTING IN I).

S. GOVERNMENT SECURITIES, of f.f v. compared with 15 billion today. By FRED HELLER Constitution Business Writer Georgia's 1,300 striking General Electric Corp. employes called Thursday for a boycott of jjtll GE products.

In Atlanta strikers picketed jRich's Citizens Jewelry Co. Ellman's of Atlanta. The pickets carried signs emphasiz-4ng that the boycott was only jagainst GE products, not pgainst the stores themselves. 'i The workers are involved in employer cease his 'take-it-or-leave-it' bargaining stance." Oliver Singleton, regional director for the AFL-CIO, said the U.S. Court of Appeals ruled on Nov.

1 that GE had bargained in 1960 on a "take-it-or-leave-it" basis. He said management was using a similar stance this year. The court ruled that in 1960 GE used "a veritable avalanche of publicity, reaching awesome proportions prior to and during negotiations." At the press conference Sin NAM Session Warned NLRB Outdoes Unions Both long-range planning and capital are needed to meet this potential demand, Haack de Daily Interest Accrued by the Fund On the Portfolio Securities No Sales Charge No Redemption Fee Minimum Initial Investment: $250 BE UNFAIR! -COMPARE THE clared. CHANGES And EAT at NEW YORK (AP) The right of business to manage its own "A series of fundamental business is being threatened more by the National Labor Rela changes aimed at alio wing For Fund Protpectua write: AC MUTUAL FUND FOB INVESTING IN U.S. GOVERNMENT SECURITIES INO.

Federated Investors Building, 421 Seventh Avenue, Pittsburgh, Pa. 16219 the nationwide strike against GE which began Oct. 26. About tions Board than by unions at the bargaining table, Virgil B. Day, vice president for industrial relations of the General Electric Vunk member firms to sell their own securities to the public could be implemented in 1970 to provide an infusion of capital to securi gleton said "GE workers reject Nam.

said Thursday. RESTAURANTS the position of their employer that salaries of less than $7,000 a ma aa asim ties firms," he said. Address. Clty Open 24 Hours Daily 4 per year are of super inflation' -ZIP- levels in a year when many cor "Most important," he added, "sometime in early 1970 we hope to have a new commission porate officials have received "The NLRB has seemed to operate on the philosophy that the right to manage is naturally to be shared" by labor and management, Day told a session on industrial relations at the annual congress here of the National Association of Manufacturers. "Decision making should be kept in the hands of those who have responsibility," Day said.

"It is no good to keep management rights at the bargaining table and to lose them in decisions" by the NLRB, Day said. He called for labor-law reform that would "give back to em increases of up to $100,000." schedule that will provide incentives for firms to expand ser Singleton said the workers ex vices to the small investor. pect to continue "selective pick "Since the commission is the eting" until the strike ends. He said plans call for eventually picketing GE products at every economic backbone of the indus ployers the right to management which NLRB has taken away." Turning to the current nationwide strike at General Electric, try, what we are seeking is a rate structure that will provide outlet. 100 GE workers employed at small plants in Atlanta aren't involved.

Their contract with management is still effective. All 1,197 production workers employed at the Rome GE plant are striking. Only six aren't union members. The Big discount house in Rome responded to union requests for cooperation in the GE boycott by "boxing, casing, and removing" all GE products from the store. The 130 production workers at the Chamblee plant are also on strike.

The workers announced their plans for a boycott in a press conference held by the AFL-CIO at the new Union Auditorium in Atlanta. They said "the overriding issue in this strike is the insistence by GE workers that their Currently GE management brokerage firms with the oppor Day defended the company's reluctance to commit itself on wage increases for the next three years on the grounds that GE did not want to be a party to "superinflationary" pressures in the future. tunity to earn a reasonable and workers from the 13 unions involved in the strike are at the negotiating table, working from over-all profit on orders and the incentive to provide service He predicted that the GE strike, now in its sixth week, would about 9 a.m. to 5 p.m. not just to large but to small "be settled and settled evenhandedly in the best interest of us all." customers as well," he said.

But there's been no sign of a Another speaker at the session, H. C. Lumb, vice president, break in what is seen by many IMITATIONS corporate relations and public affairs of Republic Steel Corp. as a crucial test of GE's classi "It is clear that the demands said the increase in the unionization of public employes had been cal "Boulwarism," a form of of the 1970s cannot be met by firms if they must work accompanied by a dramatic increase in the number of strikes in the public sector. management-worker relations developed by former GE head within the limitations of the The number of strikes by employes of federal, state and local Lemuel Boulware.

1960s," Haack concluded. governments, he said, has risen from 42 in 1965 to 142 in 1966 to 254 in 1968. In a separate year-end review, ine exenange notea tnat re Asked what he thought was the most effective deterrent for ported volume for 1969 would total some 2.88 billion shares, i strikes in the public sector, Lumb replied, "Hit the union in the pocketbook." He said he thought fines would be more effective than mass jailings of strikers. Cleveland Transferred To Burbank by Lockheed ooo Bank Clearings 1 Totals for Thursday $176,600,001 Corresponding Day Turner Merger Last Year 153,900,001 F. A.

Cleveland, Lockheed-Georgia vice president for advanced programs, has been named vice president for enginering of the parent company, Lockheed Aircraft Burbank, Calif. Cleveland has been with Lockheed-Georgia for 23 years. Two former employes of Lockheed-Georgia, Roy A. Anderson and Eugene Matiison were also named corporate vice presidents. In an unrelated development, Lockheed also said Thursday it's arrangements for purchase of Aviquipo an aerospace spare parts concern based in New York, have been completed.

Aviquipo, a privately held firm, will be acquired in exchange for Lockheed stock. Increase 22,700,000 Approved bOUR CANDIDATES WIN? uiGEni rminm miajuLLif ruTTLtrt, aiuivts, JACKSON-DOES YOUR ADVERTISING WIN? Coke Acquires Water Firm Coca-Cola Co. has acquired Belmont Springs Water a privately held processor and distributor of water, for about $1 million in Coke stock. Coca-Cola told The Constitution the purchase was a stock transaction, with Coke swapping 13,250 common shares for John J. McGrory's company, located in Belmont, Mass.

The transaction was officially made on Tuesday, when Coke's stock closed on the New York Stock Exchange at $78 a share. McGrory is expected to con-i tinue as president of Belmont i tnh 'I 'l r-, Jit WIIBllli Georgia Institute cf Real Estate i ANNOUNCES classes fir prospective sales- men ill preparation lor February sales- man's euminition. Twice weekly classes day and inning, leginnint Monday nenini. laniiary 5th and Tuesday morning. January 6th.

Advance course for inkers twice weekly, day and eneninf. beinnini Friday Turner Communications Atlanta radio and advertising concern, said it has received Federal Communications Commission approval for a merger with Atlantic Coast Broadcasting of Charleston. Turner currently has an application pending with the FCC for approval of a plan to merge with Rice Broadcasting, operator of UHF television station WJRJ in Atlanta. Atlantic Coast operates radio stations WTMA, Charleston, and WMBR, Jacksonville. Turner holds the South's largest outdoor advertising chain and radio station WGOW, Chattanooga.

Terms of the merger and the proposed acquisition weren't disclosed. Springs, said a Coke spokesman, Diamine; and Friday evening. January m. Enrollment limited. Approved lor training ol veterans and other eligible persons.

Call Director ol Admissions. JOHN S. CORRELL Director 3330 Peachtree 261-1571 237-0259 fllllllllllllllllllllllllllllllllllllir. 4 Major Chains Report Sales Up in November NEW YORK (AP) Four major retail chains Thursday reported sales increases in November over a year earlier. Sears, Roebuck Co.

said its sales in the five weeks ended Nov. 29 rose 5.9 per cent to a record $1.1 billion from $1 billion a year earlier. J. C. Penney Co.

also had record sales in the five weeks ended Nov. 29, posting a 9 per cent gain to $417.1 million from $382.8 million Tn the like 1968 period. S. S. Kresge Co.

sales climbed I 22.6 per cent in the five weeks ended Nov. 29 to a record $243.3 million from $200.2 million a year earlier. W. T. Grant Co.

reported, record sales of $127.8 million in the month ended Nov. 30, up 3.5 per cent from $123.5 million November 1968." Big Jump Predicted By Vintage Vintage Enterprises Atlanta maker of mobile homes, said Thursday it expects profits for the year ending March 31 to reach $1.1 million or 62 cents a share on sales of $30 million. Profits for the year ended last March 31 were $867,546 or 51 cents on sales of $19.2 million. Thomas S. Cheek, president, made the predictions at a directors meeting.

Cheek also predicted 1970 sales will reach $45 million. Vintage has manufacturing plants located in Georgia, Texas, Kansas and Florida. It also has 49 sales display centers for mobile homes, all In the Southeast. Butter and Eggs NEW YORK BUTTER USDA)-Butter Hj Offerings adequate. Jand fair.

Wholesale selling prices in AeA ponnd (nulk to ber boxes) (93 score) 69-70; A (92 score) NEW IORK EGGS NEW YORK (UPI) (USDA)-Egg Offerings light. "jod Wholesale selling prices In cents per dozen (Minimum 25 cases). 1 mj jp r.m.Hi.-.iL. i ,1,1.1. I jrm (Mm- 10 AA, 63'm derate 47 pounds) whit 7tF.cv Min- 10 wr cent AA.

75 per cent avg. 41 lb.) white 6m-i2. Fancy small pullets (Min. 75 per cent 36 lb.) white 49-49V4. (Min.

80 per cent B. avf. 45 too few to report. CHICAGO BUTTER AND EGGS CHICAGO (UPI) (USDA) Butter market Thursday: Wholesale selling prices paid delivered to Chicago steady. Georgia Poultry USDA-GDA Market Report Broilers nd fryera, live at farm quotations Thursday mostly 13 cents.

Supply was adequate, demand good, sizes tending little heavy. Slaughter 1,573,100 head, compared to no slaughter last Thursday. Hen trading was active, offerings were adequate to short for needs. Estimated slaughter of heavy type 38,900, light type 51,000. Prices at farms, heavy type mostly 19, light type 10-11 Va.

FOR FREE ADVANCE RESERVATIONS CALL: 633-6231 iLJ iW H3E i a t. r. t. r. 'i 'V.

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