North Carolina Newspapers

The news in this publi cation is released for the press on receipt. THE UNIVERSITY OF NORTH CAROLINA NEWS LETTER Published Weekly by the University of North Caro lina for the University Ex tension Division. JUNE 3 , 1925 CHAPEL HILL, N C. THE UNIVERSITY OF NORTH CAROLINA PRESS VOL. XI, NO. 29 Kd.loriai Bo.., J, E. C. Eran.on. S. H. Hobbs. Jr., L. R. Wilson. E. W. Knight. D. D. Carroll. J. B. Bullitt. H. W. Odum. Entered «B secend-clasa matter November 14. 1914, at the Postofflec at Chapel Hill, N. C., under the act of August 24, 1912 MANUFACTURE IN CAROLINA value of output per wage earner it is ^ .. ,, , f i. ,. r! probable that the tobacco industry Not counting the value of output of'u„j, ,, . • , a. • i. . , . A ui- u i. u I major industries. The fac- manufactunng establishments whose „ , . . ^ a a i_ , . f. . , A. cl value of manufactured tobacco products amounted to less than five icn j- % .an d-u r d. 1 „ averaged $21,150 per wage earner for thousand dollars, the factory value of • ^923. The average output per textile products manufactured m North Caro- Jina m 1923 was nearly 962 million dol- ^anuf^eture of tobacco, especially of cigarettes and smoking tobacco. lars. If the products of our hundreds of small establishments with an annual output of less than $5,000 were added, it is likely that the value of North Ca rolina’s manufacturing establishments would total more than one billion dol lars. The value of factory products for 1928 was 43.1 percent greater than the value for 1921, which was slightly above 665 million dollars. It was even greater than the value for the peak year of 1919. Which means that in volume of products North Carolina has made rapid recovery and progress since the slump of 1920, and following. Both " from the point of volume as well as value, 1923 was our banner industrial year. The table which appears elsewhere gives the main facts about our major industries, as reported by the Federal Department of Commerce, for the year 1923. Wage Earners The average number of wage earn ers employed during 1923, 173,687, ex ceeded by 27.9 percent the number re ported . for 1921, 135,833. The total wages paid in 1923 amounted to $127,- 644,000 against $94,235,000 for 1921, or an increase of 35.3 percent. The aver age wage earner for the year 1923 re ceived $735. Leading Industries The textile industry continues to rank first among the industries of North Carolina. The total factory value of all textile products for 1023 was more than 363 million dollars, which was more than the value of all crops produced by the state in 1924! Only about ten percent of the value of our textile products was contributed by knitting mills. The textile industry employs nearly 54 percent of all indus trial wage earners employed in the state, and contributes more than 38 percent of the total value of all fac tory products. A most remarkable recovery was made in the textile indus try over the depression of 1921, the value of products increasing from a little more than 214 million dollars to more than 363 million dollars. North Carolina spindles are now, and for some time have been, averaging more hours per month than the spindles of any other state. The textile industry is firmly established in North Carolina and probably will continue to rank as our leading industry for some years to come. Tobacco However, there is another giant looming on the horizon, and making a strong bid for first place among the industries of the State. That industry is tobacco about which a great many things might be said. The tobacco in dustry has had a remarkable growth in North Carolina during recent years, and, unlike most other industries, it hardly felt the general depression fol lowing the war. In fact tobacco seems to thrive on wars and following wars, it was the Civil War that gave birth to our tobacco industry, and it was the recent World War that did so much to popularize the use of tobacco. The use of tobacco does not seem to be affected by peribds of depression as the value of output steadily increased during the years of depression following the re cent war. Perhaps its soothing and, stimulating qualities enable one more readily to endure such a crisis! Tobacco is largely responsible for North Carolina’s high rank in the pay ment of Federal taxes. Of our total Federal tax of nearly 158 million dollars paid during the fiscal year ending June 30, 1924, nearly 137 million dollars was contributed by tobacco. North Caro lina pays 42 percent of the Nation's to bacco tax, and manufactures probably more than two-fifths of all tobacco manufactured in the United States. An interesting feature of the tobac co industry is the enormous value of output in proportion to the number of wage earners empI^.yed. In the machine-made industry, which accounts for the small number of wage earners. Lumber and Furniture Lumber and timber products and planing mill products in 1923 were re ported at more than 54 million dollars. There are hundreds of small saw mills which operate irregularly and whose individual output is not large. If the total output of these mills were^added, the value of timber products would be materially increased. The furniture industry, including show cases, ranks fourth among the industries of the state with a factory value of output amounting to a little more than 40 million dollars. There are 113 furniture manufacturing estab lishments in the state, employing an aggregate average of 10,624 wage earners. The furniture industry, un like tobacco, requires a great amount of human labor in proportion to value of products. North Carolina has four other major industries of almost equal rank in val ue of products: (1) Oil, cake, and meal, cottonseed with products valued at $17,980,296; (2) fertilizers valued at $17,431,084; (3) car and general con struction and repair, and ste^m rail road shops with products valued at $15,265,811; and (4) leather, tanned, curried and finished valued at $14,- 368,670. Facts for other minor indus tries are carried in the accompanying table. Miscellaneous industries cover an al most unlimited assortment of indus trial activities such as bottling works, quarries, paper, monuments, flour and grist mills and the like. The miscel laneous industries listed in the 1923-24 report of the State Commissioner of Labor and Printing number 1,735. The miscellaneous industries, those not classified in the accompanying table, employ 19,276 wage earners upon an average, and the total value of output in 1923 amounted to more than 120 mil lion dollars, or about as much as the entire cotton crop of the state brought last year. Among these miscellaneous indus tries are the world’s largest pulp mill and the world’s largest aluminum plant, facts for which are not reported! in order to avoid disclosing the operations of individual establishments. Industry vs. Agriculture Ir the production of wealth North Carolina is now, and for some time has been, an industrial state. In people engaged in gainful occupations, and in investment in productive enterprises, North Carolina is still an agricultural state. The value of farm property in the state exceeds the investment in industries by a wide margin. Nearly 60 percent of all people in the state live on farms. The agricultural workers of the state number close to a half million, while the industrial work ers number less than 174,000. Yet ' the 174 thousand industrial workers turn out nearly a billion dollars’ worth of products, with less capital employed by owners of industries, while the half million farm workers turn out farm products the value of which in 1924 was 429 million dollars. The net or new wealth created annually by indus tries in North Carolina is far greater than the new wealth created by agri culture. These basic facts explain a great many things, among them being the rapid urbanization of the state, the re markable growth in trade, banking and transportation facilities and other evi dences of the more rapid accumulation of wealth resulting from our in dustrial expansion. The ability of in dustry to produce such large wealth totals, in comparison with agricul ture, is the cause of our remarkable industrial growth, and industry is largely responsible for the great prog ress the state has made within recent years. HOMEMADE ELECIRICITY Sometime all the farms of this country will be electrified. Every one connected with the electrical in dustry believes that and is working toward its accomplishment. The big central-station companies are tak ing the initiative, realizing that they should render the same service to agriculture that they render to other industries. In the meantime thousands of farmers are so situated they do not have to wait for the big power com panies’wires. Those with unfailing streams of water can often erect their own power plants. Some streams are capable of gen erating a considerable amount of power; others seem so small as to be negligible, yet properly harnessed they would easily light all the farm buildings. How to determine the capacities of a stream, how to build a dam and utilize the water and what kind of plant to install are all set forth in a new bulletin issued by the United States Department of Agriculture, entitled Power for the Farm from Small Streams. A copy of this book let, known also as Farmers’ Bulletin No. 1430, can be obtained for five cents from the Superintendent of Public Documents, Washington, D.C. This bulletin gives about all the information a farmer wants concern ing the possibilitiesof hisstream, ex cept the price of equipment for a plant.—The Country Gentleman, May 16, 1926. All of which is good,.the state consid ered, and good for agriculture, since the greatest need in a commercial agri culture is for markets, preferably local markets, which we are bound to have in increasing abundance as the state approaches a better balance of popula tion, activities, and enterprises result ing from her wholesome industrial ex pansion.—S. H. H., Jr. TAX PROBLEMS DISCUSSED The North Carolina Club held its last meeting of the school year on Monday night, May 11. A paper on Ta^ Prob lems in North Carolina was read by C. G. Grady. The tax situation as it now stands in North Carolina was clearly presented by the reader. Sev eral vital tax problems were pointed out and discussed, and improvements were suggested. Mr. Grady began by saying that the problem of taxation in this state is not a new one, that it has been under con sideration for many years, and that many people of our state will continue to suffer from unjust tax burdens until ail classes realize that they must give in on certain points and be willing to carry their proper share of the cost of government. Unless such an agree ment can be reached and a more coop erative spirit can be established among the people of this state it is very prob able that our present tax system will remain and gross injustices will con tinue to be borne, not only by certain classes of our people, but by large numbers within the various classes, due to unequal assessments. The reader pointed out that taxation is largely a result of the industrial peri od, that in the early years of man’s struggle for domination, collective re sponsibilities were in an embryonic state and therefore created no fiscal problems. But as time has passed and new institutions have taken root and been fostered by political stability and economic advancement taxation has been introduced. Also the multiplica tion and elaboration of forms and de vices of taxation in the modern, indus trial state have brought with them new and complicated problems. Taxes Unevenly Distributed The fact that our present system of taxation is coming to be burdensome to some is no reason to 'be pessimistic. The conservative policy of our state government at present is probably due Mr. Grady’s paper on tax problems more to the fact that the cost of | will be printed in full in the North Ca- state government rests on relatively a few shoulders than to the per inhabitant or the aggregate cost, since government in North Carolina is still relatively cheap. In many counties and municipalities of the state the taxes on both land and personal property are too high. The chief cause of this is lack of uni formity in the valuation of labd for taxation. Our state income tax was discussed in detail because of the fact that the greatest single source of revenue'for state purposes is the income tax. A brief history of our income tax law from 1849 to the present was given. An amendment to the law of 1923 was passed during the last meeting of the State Legislature in which the rate of tax on incomes was increased from a (maximum'of three percent to a maxi- • mum of five percent. I A still greater increase in rate was made in our inheritance tax law, particu larly in the rates on large inheritances by individuals belonging to the second and third classes. The question of the taxation of stocks in North Carolina was also dis cussed. The taxation of stock in for eign corporations was discussed from both sides. The speaker endeavored to point out the arguments, pro and con, rather than to make definite pro posals. Property Taxes Mr. Grady stated th^t the majority of complaints against taxes were due to county and local rates on property rather than to state taxes. Unequal assessments within and among the counties, and widely varying rates be tween counties and smaller divisions were given as the chief causes of dis satisfaction. Many results of the Revaluation Act of 1919 were given in which it was shown that the real object of this act was not to increase the burden of taxes but to reach those who were fail- ing to list tlpeir property as they should, and who were thus failing to contribute their fair share towards defraying the cost of government. A few of the tax laws which were passed in the Legislature of 1926 were mentioned, among them being the tax on gasoline service stations, busses, construction companies, and barber shops. Great emphasis vras placed upon the problem of collecting taxes. It was shown that allowing the taxpayer to delay the payment of bis taxes was almost invariably a bad practice. In closing the reader gave five ques tions to be asked concerning an ade quate tax system. The first was: Is the tax general or exclusive? Second; Is there complete freedom of move ment of capital? Third: Does the law of monoply or the law of competition prevail? Fourth: Can the tax be capi talized? And fifth: Is the article pro duced at a constant, increasing, or diminishing cost? rolina Club Year Book, which goes to the press in a few weeks. LEADERSHIP REQUIREMENTS 1. Did you ever deliberately decide to break yourself of a habit and suc ceed in doing it? 2. Do you control your temper and not “fly off the handle” when things go wrong? 3. Are you usually cheerful and free from grouchy spells? 4. Do you think for yourself and not let the opinions of others influence you unduly? 6. Do you keep your head in an emer gency? Do you remain calm when your own mistakes are pointed out lo you? 7. Do your men respect you and co operate with you? Can you maintain discipline with out resorting to the use of authority? 9. Have you ever been selected to take charge of a group of dissatisfied men because of your ability to handle men? 10. Can you adjust difficulties and retain the friendship of the persons who have differed? 11. Can you get men under you to do things without irritating them and causing them to be resentful of your authority? 12. Are you patient when dealing with people hard to please? 13. Can you meet opposition without becoming confused and saying things you wish afterwards you had not said? 14. Are you sought out by your friends to handle delicate situations be cause of your ability to do such things? 16. Do you make and retain friends easily? 16. Do you make it a rule not to quarrel about petty things? 17. When thrown with a group of strangers, do you adjust yourself easily? 18. When talking to superiors, do you feel free from embarrassment? 19. Wben interviewing subordinates, do you put them at ease? 20. Are you able to express your own ideas without causing others to feel that you are overbearing and narrow minded?—Trained Men. BANKS SHOW GROWTH In 1914 the bank deposits of North Carolina totaled $96,599,000 and in 1924 deposits amounted to $327,144,000. The'ten-year gain in bank deposits was $230,646,000 or 244 percent. The total resources of North Carolina banks in 1914 were $166,498,000, while in 1924 they were listed at $459,417,000. The ten-year increase in bank resour ces was $302,919,000, or again of 194 percent. Our banks have shown a . rapid re covery since the slump of 1921, They have climbed beyond the peak reached during the World War, and today, in every particular North Carolina’s banks present larger resources than ever before in her history. MANUFACTURING INDUSTRIES IN NORTH CAROLINA A Summary of Industrial Facts for 1923 The following table, based on data recently released by the Federal De partment of Commerce, ranks the important industries of North Carolina ac cording to the value of products for 1923. The table also shows the number of establishments, average number of wage earners, and wages paid. Industries No. of Establish ments Wage Earners Av. No. Wages Value of Products Chewing and smoking, and snuff Lumber and timber products, and plan- Car and general construction and repairs, steam-railroad repair shops Leather, tanned, curried, and finished... Boxes, wooden packing, except cigar boxes Foundry and machine shop products.... Clay products, other than pottery and nonclay refractories 361 81,041 $54,842,992 5326,672,014 109 12,361 6,963,743 36,759,413 17 11,531 9,473,901 264,218,190 9 2,428 1,339,000 31,667,820 712 22,945 16,828,013 54,242,989 113 10,624 8,698,320 40,072,677 62 1,226 767,123 17,980,296 64 1,721 1,260,473 17,431,084 16 6,104 6,606,846 16,265.811 10 1,223 907,293 14,368,670 26 1,162 794,201 4,569,480 61 1,164 1,321,112 4,488,627 67 1,892 1,323,334 3,980,708 1,064 19,276 17,648,470 120,402,920 Grand total for the year 1923 2,670 Total for the year 1921 2,602 173,687 127,643,821 136,833 94,234,837 961,910,599 666,117,738