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Chapel Hiirs Morning Newspaper
Chapel Hill, North Carolina, Tuesday, November 5, 1974
Vol. 83, No. 53
Founded February 23, 1893
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recession
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Nation
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experts
by Bruce Henderson
Staff Writer
The United States is definitely in a
recession and the federal government is to
blame, UNCs business school dean and
economics department chairman agreed
Monday.
"We are clearly in a recession," economics
department Chairman David McFarland
said. "There's no question about it."
A recession is popularly defined as a
temporary slow-down of business activity
with rising unemployment. Industries
throughout the nation have slowed
production during recent weeks due to a
combination of high inventories and
growing public resistance to high prices.
' Unemployment on the national level passed
six per cent last month.
"We've been in a recession since
November of 1973," business school Dean
Maurice- W. Lee said. "Consumer
overspending and government deficits have
combined to put pressure on the economy."
The Federal Reserve has been depended
on in the past to alleviate money shortages,
Lee said. But the Federal Reserve system will
not be able to continue a steady flow of cash
at its past level.
Chapel Hill's Central Carolina Bank vice
president Gordon Kage declined to label the
present economic situation a recession
because there is full employment in this area,
but he did agree there are serious economic
problems.
For the last two years Congress has been
involved in personal problems Watergate
has taken all their time and effort," Kage
said.
The federal budget must be curtailed right
away to stop deficit spending. Another cause
of tight money, Kage thought, was
overextended credit to consumers.
"The overextension of credit has
prevented people from putting their money
in savings, and therefore banks have little
money to lend. So money is tight." .
Interest rates in banks across the country, .
following the trends " in' large N ew " Y ork
banks, have reduced prime lending rates
during the past week. In Chapel H ill, Central
Carolina Bank reported a rate of 10 per
cent. First-Citizens and NCNB reported 11
per cent, while Wachovia, First Union
National Bank and the Northwestern Bank
had ll'i per cent, anticipating future rates
declines.
"We haven't had any real economic
leadership" in the past several years, Lee
said. While remaining unimpressed with the
Ford administration's proposals, he said for
the first time, Washington is honestly trying
to solve economic problems.
"They're awful sincere shown quite a lot
of grit," Lee said.
He singled out the gas tax, never put into
law, as one instance where the government
could have helped the economy overcome its
problems.
Government deficit spending and public
overspending since about 196S are at the
root of the problem, Lee said. He expressed
more concern for world-wide economics.
"It is very dangerous right now even
more dangerous abroad. A world-wide
depression is a possibility." The next four to
five months will determine if such a radical
problem will occur, Lee said. '
"There is a serious structural problem in
our economy," McFarland said. "The
decline of production output is a lot more
serious than rising prices."
The Federal government should first
concentrate on stimulating output. "A lot
more should be-done than is now being
done," McFarland said. "This can't be dealt
with by any short-term solutions."
Both Lee and McFarland said inflation of
consumer goods prices could not be included
in any discussion of a recession. "Rising
prices is a completely different problem,"
McFarland said.
Bomb- thre'atSf flisr luipts
High Noon
Friday's gathering of the High Noon Society, which has convened for the past
three weeks at Forest Theatre, was disrupted when police evacuated the area
because of a bomb threat.
One bearded young man with shoulder-length hair, glasses and a black, floppy
hat said two policemen with walkie-talkies came from behind the stage about 12: 30
p.m. and asked everyone to leave or "they'd get Mowed up."
The H igh Noon member said the society gave the police a standing ovation when
they arrived.
Campus policeman Lt. S.L. Edmonds said the Chapel Hill police phoned at 12:30
p.m. Friday and said they had received a call from Graham Dorm that there was a
bomb in the outdoor Forest Theatre.
Two campus policemen were dispatched immediately. '
Edmonds said he asked for the group's instructor at first, thinking they were
gathered for a class. He then asked the group to leave, surveyed the area for 45
minutes and departed.
Some of the 220 members gathered at the theatre apparently thought the police
disbanded the group for smoking marijuana; ; ;
"There were plenty of joints going around " one member said.
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The society, neexpiaineo, is ior peopic who ciijuycaciiuuici icmmmp, iuuuu
out where all the parties will be for the weekend and to get high in that order."
One campus policeman said he smelled no dope and that he was pretty good at
that kind of thing." He had no explanation for the bomb threat and said the case is
now classified as inactive.
One High Noon bummer summed up the affair as "kind of a bummer."
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North Carolina Insurance Commissioner
Ipg
ram lands gains
tosmraece reform
in
r tjyxSeorge Bacso
Staff Writer
"During my campaign in 1972, 1 made two
specific promises to the people of North
Carolina," state Insurance Commissioner
John Ingram said in the Pit Monday, "to
abolish the assigned risk and to do away with
discrimination in auto rates which penalize
safe drivers.".
Less than a year after Ingram took office,
assigned risk was replaced by a reinsurance
plan which guarantees immediate coverage
for any consumer by the agent and company
of his choice.
"Today I am announcing that we are going
to win the fight to abolish age discrimination
against all safe drivers, young and old,"
Ingram said during his speech delivered as
part of Student Government's Individual
Rights colloquium.
"Just as we did away with the assigned
risk," he said, "we are going to do away with
a system which allows someone over 25
convicted of drunk driving to buy his auto
liability insurance cheaper than a young man
under 25 with a perfect driving record."
Ingram said the threat of insurance
cancellation "hangs over the head of our
citizens like an invisible guillotine this
threat perpetuates rate discrimination."
Although North Carolina was the first
state in the nation to do away with assigned
risk, Ingram said he regretted the state would
not be a trailblazer in the field of age
discrimination.
"The state of Hawaii has just enacted
legislation prohibiting discriminatory
practices in setting rates," Ingram said.
Hawaii's statute says no insurer may base
rates, in whole or in part, upon race, age, sex,
degree of driving experience, credit rating or
marital status.
"The new statute in Hawaii illustrates that
gateerai:
Staff photo by AHc Boyl
John Ingram speaks Monday in the Pit
people all across this nation are fed up with
age discrimination and the gimmick plans
insurance companies and their lobbyists
have devised to circumvent change which is
fair," Ingram said.
Ingram has recently concluded hearings
on rate injustices and has entered an' order
abolishing the use of age in the setting of
rates.
This order is on appeal to the courts by the
insurance industry. )
Ingram said age discrimination cuts across
party lines and its abolishment can only be
accomplished through the electoral process.
"The people's cry for change must be
answered in the ballot box ... for the tide
of events to continue flowing for the people,
you must elect members of the House and
Senate who support the people," Ingram
said.
This is the last of several visits to college
campuses Ingram has made to "help elect
legislators who will vote with the people, and
not the insurance lobby."
Ingram did not name any particular
candidates but praised the Democratic party
for overwhelmingly adopting a new plank in
its platform, calling for legislation to abolish
age discrimination.
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From wire and staff reports
WASHINGTON Fighting
inflation, high unemployment, voter
apathy and Watergate fallout,
beleaguered Republicans Monday
headed for the elections hoping that a
Where
Polls will be open until 7:30 p.m.
places in Chapel Hill and Carrboro
Precinct Polling Place Areas
Mason Farm Community Church James, Crafge, Odum
Purefoy Road Village, Spring Garden
Country Club Woollen Gym Morrison, Ehringhaus,
Parker, Teague, Avery
Greenwood UNC General Upper and Lower Quad,
Administration BIdg., Cobb, Joyner, Connor,
Raleigh Rd. at 15-501 ' Winston, Alexander,
Carr
East Franklin Lutheran Ch., E. Alderman, Kenan, Mclver,
- Rosemary St. Old East, Old West,
Spencer, Towne House,
Brookside, Colonial
Arms, Northampton
Battle Park Public Library, Camelot, Shepherd Ln.,
E. Franklin St. Village Green, Brookwood
Ridgefield Binkley Church ' Willow Terrace, Colony
Apta.
Eastside Ephesus Rd. School Oxford, Kings Arms,
Castiilian Villa,
Foxcroft, Booker Creek,
Pinegate
Glenwood Glenwood School Glen Lennox, Golf Course
- - Fraternities
Estes Hills Guy B. Phillips Stratford Hills
Jr. High School ,
Northside Municipal Building University Gardens
Colonial Heights Umstead Rec. Center Bolinwood, Sharon
Umstead Drive Heights, Village
West
Lincoln Lincoln School, Granville Towers,
Merritt Mill Rd. Whitehead, Big and Uitle Fret
Courts
Westwood Frank Porter Kingswood, Laurel
Graham School Ridge, Chase Park
Dogwood Acres Grey Culbreth Sch. Villages Apts. .
North Carrboro Carrboro School Estes Park,
Cedar Ct.
South Carrboro Carrboro Town Hall Chateau, Park
West, Berkshire,
y ' Fidelity Court,
Northampton West
University Lake Water Plant, Carolina, Old Well,
Jones Ferry Rd. Yum Yum, Royal Park,
Rldgewood, Rocky Brook
last-minute shift will hold their losses to
a minimum Tuesday.
But all polls and predictions by party
leaders indicated that Democrats were
on the verge of a sweep that would
continue their generation-long
domination of Congress and increase.
to vote
today in North Carolina. The polling
are:
Orange County voters will decide
over 50 issues today.
Here is a review of the issues and the
candidates:
Running for one seat in the U.S.
Senate are Robert Morgan, Democrat;
William E. Stevens, Republican; and
Henry Rudolph (Rudy) Nesmith,
Labor. Incumbent Democrat L.H.
Fountain is running unopposed for U.S.
House of Representatives.
Running for attorney general of
North Carolina are: Rufus L. Edmisten,
Democrat; James H. Carson Jr.,
Republican; and Marion Raine Porter,
Labor. In the race for state judicial
officers: for chief justice of supreme
court, Susie Sharp, Democrat; James
Milford Newcomb, Republican; and
Stanley Ezrol, Labor, and for one seat
as associate justice of supreme court are
J. William Copeland, Democrat and
James M. Baley Jr., Republican.
Four candidates seek two state senate
seats; Charles E. Vickery and Russell
Walker, Democrats; and Michael Budd
and Ed Tenney, Republicans. Three
candidates are running for two state
house seats; Edward S. Holmes and
Patricia (Trish) Stanford Hunt,
Democrats; and Francis E. Henry,
Republican.
Running for three county
commissioner seats are: Norm
Gustaveson, Jan Pinney and Norman
Walker, Democrats; and Raymond.
Montgomery, Republican.
Four candidates seek three
w
sGnnfflt
perhaps dramatically, their control over
the nation's statehouses. -
In an election-eve message. President
Ford abondoned his tough partisan
campaign in behalf of Republican
candidates and pleaded with Americans
to vote.
At the same time. Senate Republican
Leader Hugh Scott and House GOP
Leader John J. Rhodes urged the voters
to purge congressional Democrats in a
last-minute appeal.
A Daily Tar Heel poll showed
Monday that UNC students will
probably vote overwhelmingly for
Democratic candidates. Democrat
Robert Morgan was favored by a two to
one margin over his Republican
opponent for U.S. Senate, William
Stevens. Democrat Rufus Edmisten was
favored four to one over Republican
James Carson for N.C. attorney
general.
A UPI survey indicated that the
Democrats would finish with a likely net
gain of five Senate seats, five
governorships, and 20 House seats.
Some prominent Democrats, including
National Chairman Robert S. Strauss,
predicted even bigger gains.
In a full-page letter published in the
New York Times, Rhodes and Scott
said "the only way for the American
people to change Congress, as they
must, is to change the leadership in
Congress.
"And the only way for this to happen
is to elect more Republicans than
Democrats," they added. "The
Democrats have certainly had ample
time in which to prove their ability and,
according to the people, they have failed
their test."
Ford's election-eve message aimed
at an anticipated low voter turnout
noted that some surveys indicated that
only about 40 per cent of the voters will
go to the polls.
"If this is true, the Congress with
which I work here in Washington to
control the inflation, strengthen the
economy, and preserve peace in the
world could be elected by only 21 per
cent of the voters," he said. "I don't
think anyone wants that kind of
minority decision."
Ford added, "So 1 ask you, my fellow
Americans, to make the time tomorrow
to go to the polls and. vote for the
candidates of your choice."
Cloudy
Partly cloudy through tonight with a
50 per cent chance of thundershowers
until tomorrow. Highs will be in the
middle 70s today dropping to the lower
40s tonight. The humidity is 55 per cent
and the winds are from the southwest at
10 to 15 miles per hour.
nonpartisan positions on the Soil and
Water Conservation District Board of
Supervisors; William H. Breeze, Henry
S. Hogan, Clifton P. Jones and John
Pope.
Running unopposed are: James G.
Exum Jr., Democrat, for reelection as
an associate justice of the state supreme
court; seven Democrats for seven seats
as judges of the state court of appeals;
Edward B. Clark, David M. Britt.
Walter E. Brock, Robert M. Martin,
Naomi E. Morris, Frank M. Parker and
Gerald Arnold; incumbents Roland C.
Scott and Larry Sturdivant for seats on
the Orange County Board of Education:
incumbent Herbert E. Pierce for district
solicitor, incumbent Orange County
sheriff, CD. "Buck" Knight; incumbent
Betty J une Hayes for registrar of deeds:
and incumbent clerk of courts, Frank S.
Frederick.
Orange County voters will also
choose from 23 Democrats and two
Republicans for 23 seats as judges for
state superior court. D. Marsh
McLelland is seeking reelection as
superior court judge' from the 15th
judicial district, encompassing Orange
County. -
Two amendments to the state
constitution will also be on the ballot;
the first to change the title of the
constitutional office of "solicitor" to
"district attorney"; the second "to create
jobs and employment opportunities and
to protect the environment ..."