Northwest Arkansas Times from Fayetteville, Arkansas on October 16, 1974 · Page 5
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Northwest Arkansas Times from Fayetteville, Arkansas · Page 5

Fayetteville, Arkansas
Issue Date:
Wednesday, October 16, 1974
Page 5
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Editorial-Opinion Page The Public Interast Is T/i« First Concern Oj This Newspaper 6 · WEDNESDAY, OCTOBER 16, 1974 Senator Finds Land Bank Loans Useful A: Legislative Visit A couple of members of the Legislative Joint Auditing Committee are in disagreement with the University of Arkansas' use of supplemental funds for administrative salaries. Outside funds are tapped in order to boost salaries of UA President Charles Bishop and Pine Bluff Chancellor Herman B. Smith above state authorization levels. The subject broke surface here last weekend during a Joint Auditing session held in conjunction with Legislative Day on the Fayetteville campus. Rep. John Miller of Melbourne says he views the padding of salary authorizations as a.transgression of legislative intent. The salary provided in current appropriations for the president is about $37,000. The UA is paying Dr. Bishop §45,000, with the use of University of Arkansas Foundation funds. The Pine Bluff chancellor is getting $35,000 rather than an authorized $25,000, also by virtue of Foundation resources. "It's a matter of very grave concern to me that the Board of Trustees can wink at the law and expect other people to abide by the law," declares Miller. Rep. Alford adds that with the extra benefits of the presidency "it's about a $75,000 job." In defense of the University, which has just concluded a long and careful search for a new president, and which has just acquired the services of a new chancellor at UAPB, there is a direct relationship between qualifications of candidates and their willingness to accept sub-competitive salaries. It surely goes without saying that in order to effectively and efficiently utilize the state's considerable Investment in higher educational facilities the system must have quality administrative talent. At the same time, we must confess to a smidgen of sympathy for the Miller-Alford position. There is entirely too much taking of liberties in what a certain group sees to be the higher interest, at the expense of the law, these days. If a law is wrong, the proper remedy is to seek its change, not to ignore or circumvent it. We have qualms in taking sides either way with legislators who complain about the indecencies of contemporary public rip- offs, -however. These, bear in mind, are a- mong the legislators who have busied themselves circumventing state law with various expense account and salary supplement schemes of their own over the last half a dozen years or so. They decry a few college professors doing less than the full teaching load presumably envisioned at biennial appropriations time. They could be right. It sometimes takes one to spot one. But the answer to a better educational system for the state is not in tearing down what has presently been achieved, but rather in shoring up what we've got. The Legislature, for instance, would be well advised to "legitimatize" basic salary requirements for its entire University system at the earliest opportunity, Rep. Alford notwithstanding. (Rep. Alford, it might be mentioned in this context, is the fellow who wants to water down the state's air quality standards, too.) Leonard B. Kendall Leonard B. Kendall, 71, of Fayetteville, who died last weekend, was one of the most perceptive, persistent and effective boosters this city and this corner of the state has had in recent years. Mr. Kendall was a former president of the Fayetteville Chamber of Commerce, former director for Industrial Development for Arkansas Western Gas Co., was active in the .NWA Industrial Council and had extensive service with the state Public Service Commission. No mere booster, Mr. Kendall used the practical eye of an engineer and the critical eye of a suspicious native in giving counsel for the industrialization efforts of his home corner of the state. The enviable balance and stability that Northwest Arkansas' economy has acquired in recent years is in no small part due to the sort of good judgment and tempered decision-making provided by Mr. Kendall. He served his state, and his neighbors well; unobtrusively so, which is even more the mark of a very remarkable gentleman. He will be missed. From The Readers Viewpoint Vegetables . , _ , To the Editor: Inflation has taken the place of Watergate in our day lo day discussion of the news. There is however a refreshing d i f f e - rence ; ;in the two topics. Watergate was a fait accompli and we could do nothing ahoul it except to correct the circumstances that brought it about. Inflation is a direct result of you and I (sic) and our country spending more than it produces. ' and we can do something about The citizens of t h i s country are the only ones who can overcome tile horrendous results of a continuous debasement of our dollar. In essence we have lo produce rnqre than we spend ' and do this with our own hands' and not by printing more money. In the Ozarks we are blessed with acres and acres of tillable land which is waiting for its owners to get out and with hard From Our Files; How Time Flies JO YEARS AGO Construction of a new courthouse-jail complex and hiring of a county purchasing agent were recommended today in the final report by a Washington County Grand Jury. Yesterday was Jim Trimble Day in Fayetteville and hundreds of persons turned out to greet the veteran Democrat so VEARS AGO T h e .Fayetteville Lions C l u b will promote Education Week in Fayetteville. The Washington County Home for the Poor and Friendless, one of the most attractive buildings in the county has been (00 YEARS AGO T h e city cornet band enlivened the town with several of their sweetest airs Saturday afternoon. Do so again boys. , who has served 20 years in the H o u s e o f Representatives. Trimble was a former circuit judge in this district. Early response to the United Fund IDS'! campaign has been extra good and the push to raise the full quota of $66,645 is proceeding as the week draws to a close. rcfinishcd. repainted and made new and clean. . A blazing electric light wire threatened to burn the A.P. Eason home at the corner of East and Dickson Street yesterday. All those who vote (or the new constitution are in favor of placing the state in the hands of the people. By JACK ANDERSON WASHINGTON -- Oklahoma's soft-spoken Sen. Henry Bellmon. a Republican ami tanner, in that order, pushed hard to get a federal land bank bill through (he Senate. Then he snapped up a whopping $475,000 loan under the legislation which he had helped pass. ' On the federal land bank' ·board of directors is H.C. Hitch, whom the senator supported for his bank job. The bank quickly approved the loan at rates lower t h a n Bellmon would have had to pay a commercial lender. The loan was recommended by an old friend and nieghbor, Lin Truchloorl, who lives less than six mites from the senator. Trucblood happens lo be the tri- county director of the federal land bank. Bellmon and both his friends, in long talks, insisted that it was all on the up-and-up and that the senator got no more consideration tlian any oilier farmer in the Oklahoma cattle and wheat country. The storv began in 1971 in the Senate "Agriculture Committee, where Bellmon is-a respected member. At issue was a bill to let federal land banks raise the permissible mortgages on farm land from 65 to 85 The Washington Merry-Go-Round They'll Do It Every Time WHEW ARE WJ60IN6TOPAY THESE SlUS? ' THEY'VE BSEM PILING DP MONTHS.' ,Y£AH» ItU/MKE '£M OUT SOON AS I GET A CHANCE TWHEN HE DOES . eer AROOMPTO WffNlY" Tenon 1 FREP HOOPIS, MINNEAPOLIS, MINN, E work produce more food for themselves and their neighbors. For about one dollar enough vegetable seed can be bought lo produce over a hundred pounds of edible food. Today Ihe average pound of vegetable cosls 30 cents and thus for one dollar and with lots of sweat you can produce $30's worth of food and can help stop inflation. Production is the keynote of stamping out inflation. If you are inclined to put out a little more sweat you are fortunate in this area lo have a non-profit co-cop called the Rural Mountain Producers Exchange Inc. This is a group of small farmers who bring their fresh produce to Fayetteville twice a week and lo Springdale once a week and sell it lo Ihe city folks. This helps fight inflation as high priced oil from foreign countries does not have to be used to transport this produce from thousands of miles away with all Ihe attendant packaging and cooling to keep the vegetables fresh for the week or more it takes to come from the West or East coast. To illustrate with one concrete example: Did you know that here in the Ozarks we can grow the most delicious tomatoes and would not need to import tomatoes all the way from Mexico? Inflation can only be overcome by all the people doing their share of fighting It and with just a bit of old fashioned sweat we in the Ozarks can help to overcome this disaster and not just talk about it. Benj. Heynen Good Judge To the Editor: I am sure everyone in Washington County is interested in our roads. We are so t h a n k f u l for the help our county people have had the past two years and I feel like I can speak for the whole county when we know we have something good -- let's keep it. I am speaking about our county judge Vol Lester. He has made us a good judge. Let's not lei him d o w n and also thanks to his good employes. E.A. (Mick) Counts Bible Verse "Howheit. when he, the Spirit of t r u t h , is come, he will guide you into all truth: for he shall not speak of himself; but whatsoever he shall hear, that shall he speak; and he will shew you things to come. He shall glorify me; for he shall receive of mine, and shall shew it unlo you." John 16:13, 14 Just as God was in Christ, even so Jesus is in the Holy Spirit. How dare we repeat the rejection that Jesus experienced when He came, by ignoring the person, power and presence of the Holy Spirit, "Grieve not Ih8 Holy Spirit." per cent of. the value of Ihe land. : Bellmon nol only was one of Die sponsors of the bill, but more specifically, he personally helped push it through the committee. "I sure worked for ·· it," he acknowledged candidly. Subsequently; 1 Bellmon tried lo gel a private loan on some of his land holdings. But money was light, so he turned to Ihe federal land bank. Last June 17, the senator and his wife were granted a $475,900 loan, according to records of the federal land bank in Wichita, on 1,319 acres in Oklahoma. The Bellmons are paying a low 8.5 per cent interest. lar less than they would be charged by a commercial bank even if such a huge loan were available. Trueblood, who contributed $150 lo Bellmen's current Senate campaign, sees nothing wrong with his approving the loan. It got the- final approval, he pointed out,' of the- parent bank in Wichita. Hitch, who conlribulcd $4.000 to Bellmon's campaign, said Bellmon had little, if anything, to do with his appointment as a land bank director. In any case, Hitcli insisted he never knew Bellmon's loan liad gone 1 through the land bank. 11 is the nature of bank employes, of course, . t o give favorable decisions on loans for the friends ot directors. The Senator : insisted there was "no connection" between the loan and his friendships. 'That's as clean a loan as you can find," he said. THE KO.IAK CAPER: .Top federal drug officials are In an absolute tizzy' over a recent episode of the popular "Kojak" TV series. Kojak is a lough New \ o r k co], played by aclor Telly S;i- valas. In the September 29 episode, entitled "A Very Deadly Game," he was in hot pursuit of a police killer and narcotics dealer. . He wanted to move in on the police killer, but Ihe federal drug agents warned the killer to lead them to the narcotics kingpin. The plot, according lo discomfited drug officials, showed federal narcotics agents in a bad light. The New York cops shared their information with the "feddie-woddies," as Kojak called them, but the feds wouldn't cooperate with Kojak. Heading In The Same Direction State Of Affairs Jerry-Built Grand Design By CLAYTON FRITCIIEY WASHINGTON -- The trouble with President Ford's economic "Grand Design" is that it is Jerry-built. His new 10-point structure is so f l i m s y that the first ill wind is likely to blow it away. Now that there have been a few days in which to view Mr. Ford's first big effort in more perspective, the impression grows that the architect of the "Grand Design" himself doesn't have a contagious confidence in it. What emerges is an unconscious defeatism. Instead of being a ringing call to get the economy moving again, the President's uncertain trumpet sounds as though he were just resigning himself to more unemployment, as if it were inevitable and beyond the power of government to rectify. Every American who lived through the Great Depression can testify that, bad as inflation may be, there is something worse -- deflation, which is roughly a synonym for mass unemployment. But Mr. Ford seems oblivious of this. It is oepressingly obvious that he takes growing unemployment for granted, since much of his message centers not on how to combat it but merely ameliorate it. The President apparently has swallowed the "old-time religion" of the business advisers he inherited from Kichard Nixon, a group of economic fundamentalists who maintain that the only way to curb inflation is through recession and reduced employment, a myth that has been discredited time ana again by the actual performance of the economy. IF MR. FORD would look at the record (or himself, he would see that the only time his pre- dtcessor got the inflation rate down to around 3 per cent was during that period in his Administration when unemployment was at its lowest. Since then, unemployment has steadily increased, rising steeply to the present peak of 5.8 per cent, meaning more than 5 million Americans out of work. Nevertheless, inflation, instead of going tlown, has risen more than 300 per cent to the current rate of around 12 per cent annually. Th« administration! of John F. Kennedy and Lyndon Johnson provide even more impressive proof that hi'gh employment does not necessarily mean high inflation. During most of the Kennedy-Johnson years, the inflation r a t e was ·well under 2 per cent, although the period was marked by consistent high employment. When L.B.J. left office, the jobless rate was little more than half of what it is today. Still, in the face of this, the President talks merely of providing longer unemployment compensation fo;' those already out of work and for others who will be, as the Administration reins in the economy instead of stimulating it, as it should. If it weren't so serious, some of the "Grand Design" would be downright funny. The Prcsi- ' dent, for example, proposes to cu,r, $5 billion out of the budget, leading to more unemployment, perhaps as high as 7 per ccnl, thus putting possibly another million on the jobless rolls. The Chief Executive, however, plans to counter this by spending up to $5.25 billion on a public works program which would hire at least some of the now jobless. In short, the $5 billion budget cut might well be cancelled out, except a number of workers would end up raking leaves instead of being more productively employed in private enterprise. A C T U A L L Y , M r . Ford's make-work program is something o( a hoax, for it doesn't become operative until the national unemployment rate hits 6 per cent or higher for t h r e e consecutive months, regardless of how high the level is in particularly hard-hit communities. Even then, the federal ·government would pay only for t e m p o r a r y relief projects, which could not extend beyond six months. Workers could participate only after exhausting all unemployment benefits. At his latest press conference, the President said the United States "is n o t . i n a recession," which is news to most of his constituents. George Meany, head of the AFL-CIO, has a different definition. He says, "A recession is when your neighbor is out of work. A depression is when YOU are out of work." Sen, Walter Mondale (D-Mirm.) sums up the "Grand Design" this way: "It's not a WIN; it's a PUNT." · . : (C) 1974, Los Angeles Times What Others Say AND SAFETY, TOO Important as cows and cooking are, the latest word from the 4-H Clubs In Jefferson County is that "4-H ain't all cows and cookin!" The new 4-H program has room for karale, energy conservation and aerospace projects. · Plus safety. This year, Jefferson County's 4-H Clubs will he distributing Hot Dots -- small reflectors with adhesive 'backs that stick to bicycles, clothings, shoes and books. They shoidd help motorists see kids in the dark, which is a public service as the days grow shorter and nights longer. Jefferson County's 4-11 is said to be the largest in the slate, and the variety of programs and services it offers may explain why. --Pine Bluff Commercial Kojak got his man by locking tho heud fed In a room vvhll* he arrested the pusher-killer. In the process, the feds worn mad* to look petty and Ineffective. Two (lays before the show wus aired across the nation, th» Drug Enforce me n I Administration s public information chief, Vince Promulo. was tipped off that the episode would ha "detrimental" to the agency's image. He was toll! that im ex-narcotics agent served as an adviser on the show. Promulo made several Inquiries, discovered no adviser existed and dropped the 'matter. "They have a right lo put on whatever they want, he told us. . The show's top writer, Gene Carney explained tliat the plot "was invented" to give the show a solid "antagonist situation." The story was not based on "any specific Incident" and "was nbl intended" to harm the reputation of Ihe federal agents, he said. FORK PROJECT, Sen. James B u c k l e y , C-H-N.Y., once amazed fellow senators in a closed-door meeting by hassling them on the money they waste on pork barrel projects. Buck-ley was slapped down by, his seniors, but refused lo give up. Now, it appears he will win a battle to gel a three-man board appointed to review pork; barrel deals before they gel into the hands of the A r m y C o r p s of Engineers. His ,· bill would open up Ihe pork barrel and, perhaps, even save, a few hundred millions of dollars. ,, . . --United Feature Syndicate Banking Industry In A Bind NEW YORK (ERR) -- The failure of Ihis city's Franklin National Bank has been des- · cribed by some financial ex^ . perls as an isolated case of mismanagement on a grand scale. Others see il as symptomatic of the problems facing . the entire U.S. banking system. There is much to be said tor both interpretations. Although Franklin National s troubles had been building for years, Ihe public was generally unaware of them until last May. Franklin New York Corp., the bank's holding company, announced thai it was omitting dividends on its preferred and common stock and was seeking $50 million in new capital. It also disclosed that the bank had lost at least $14 million on" unauthorized" foreign exchange trading. Franklin National's financial ' position promptly began to crumble. On Dec. 31, 1973, it had ranked as the nation's 20th largesl bank, with deposits of $3.732 billion. By June 30, 1974, it had dropped lo 47th place, with deposils of $2.085 billion -- a 30 per cent decline in just six months. Harry Keefe, of the securilics firm of Keefc. Bruyelle a n d Woods, which specializes in the banking industry, believes that Franklin National's downfall was of its own making. "All you have to do is look at Iho figures," he lold a Wall Street Journal reporter. "Of the 65 banks in its size category -$1 billion to $5 billion in deposits -- Franklin ranked C5lh in earning power." It was Ibis lack o( earning power thai drove the bank to speculate in foreign exchange. A SOMEWHAT more charitable view was expressed by . Santord Rose, an editor of Fortune. "In one respect, certainty. Franklin's problems were nnt at all typical of U.S. banking," he. wrote. "Just about every big-league bank in the country has had betler management. But in another respect, Franklin does f a i r l y represent a powerful new current in the banking industry: a zeal for endless growth is shared by many other banks, including some big ones. It might ' ultimately prove to be a problem for some of Ihem too." F r a n k l i n prospered in the 1950s and early 1069s. when its operations were confined to fast-growing suburban Long Island. Then, in 19U4. the hank branched into New York City. It soon found it was unable fo compete with Manhattan's giant banking institutions for major loans. A series of highly risky financial ventures followed, capped by the foreign exchange fiasco. MISSING? It is embarrassing to be welcomed back from vacation when you haven't taken one yet, but even worse to be asked when you're going to t a k e the vacation you already have.--Anderson (S.C.) Independent WHY NOT? The exotic dancer from New Orleans, Habeba, wants an invitation to do her belly routine at the White House on the occasion of the visit there of the Egyptian chief of stale. Why not? It should at least partially mcel the demands of t h o s e Insistent on the bare facts. --Baton Houg* StaUt Timei OVER-EXPANSION is only one of many difficulties confronting the nation's banking system. "Taken as a whole" · Business Week . stated, "tho -. system is in more trouble today than at any time since (he 1930s, with a distressing number of banks over-loaned, over- borrowed, over-diversified and under-capitalized." In addition, all banks must cope with inflation and tight money. Some bank holding companies that diversified into non- banking activities are now having second thoughts. Many invested heavily in real estate, . here and abroad -- and now the real estate market is in disarray around the world. T h e ' failure of a major airline like Pan Am also would be p a i n f u l , for much of the nation's fleet of large jetliners is leased from banks. Few financial experts look for an epidemic of bank failures like that of the early 1930s. But the Federal Deposit Insuranca Corp. has 152 names on Its "watch list" of troubled banks, and some of these may fold or merge with other institutions; Franklin National was the nation's largest bank failure lo date, and almost certainly it will not b» th« last,

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