Evening star. [volume], March 01, 1959, Page A-27, Image 27

About Evening star. [volume] (Washington, D.C.) 1854-1972

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McCONE'S FIRST SIX MONTHS r
Our New Atomic Boss Is Confident
, By FRANK CARET
AuoctoU* r>w aus Writw
When John Alex McCone be
came chairman of the Atomic
Energy Commission last summer,
he vowed to follow the advice of
a priest: '‘When your knees begin
to buckle, just kneel."
But today, looking back at his
first half-year in one of the Na
tion’s toughest jobs. Mr. McCone
says his knees have yet to buckle.
Modestly, he gives the credit to:
U) His fellow commissioners.
(3> "A dose and friendly rela
tionship'" with Senator Anderson,
Democrat of New Mexico, and
other members of the Joint Con
gressional Atomic Committee.
(3) ‘Ho his embattled prede
cessor. Admiral Lewis L. Strauss,
who “left things in remarkably
good shape."
As boss of the A EC, Mr. McCone
runs an agency that has offices
and laboratories scattered from
Brooklyn to Japan. It budgets
$3 billion dollars a year, maintains
facilities worth «7 billion, and em
ploys 106.000. It builds bombs,
prospects for uranium, probes the
secrets of cancer, builds power
plants, operates cyclotrons, studies
mice and men. and conducts re
search literally’ from the depths
of the earth to the far reaches of
space.
“The problems have been per
plexing and difficult," says Mr.
McCone, “but they haven’t caused
my knees to shake.” He came to
the AEC from a distinguished
career that included liberal doses
of business, industry and govern
ment. Though a dyed-in-the
wool Republican, he won his public
servant spurs as a Truman ap
pointee.
His Attitude on Criticism
Public criticism of the AEC in
the past has been partly Justified,
says Mr. McCone.
“There has been criticism be
cause actions by the AEC have
taken too long. Some of this has
been due to uncertainties as to
policy objectives and some due
to uncertainties about the relative
responsibilities of the commission
and of the joint Senate-House
Atomic Committee.
“Some of the delay has been
due to the fact that development
had to await basic scientific ad
vances—and that has not been
clearly understood by the public."
The originally quiet-spoken Mc-
Cone adds with vigor: “But there’s
one thing on which there has
been no criticism—and that’s the
nuclear weapons field.
“As a Nation we’ve wrung our
hands over lack of planes, lack
oi missiles and even, in the case
of the Korean War. lack of con
ventional ammunition. But never
has there been a time when we
were worried about a lack of
nuclear weapons capability.”
The 56 - year -old chairman,
whose rimless glasses give him a
scholarly look, has built ships,
machinery, oil refineries and
power plants. As an undergrad
uate at the University of Califor-
Government Programs Are Geared to Help Oldsters
Enjoy Happy, Solvent and Useful Lives
By GRACE BASSETT
Bt*r SUIT Writer
Prom the amount of planning
going on here you might think
the Government’* future lies with
its aged rather than with its
youth.
This burst of organization has
included:
• A special Senate subcommittee
to look after the interests of older
citizens.
• A White House Conference on
the Aged called by President Ei
senhower for next year.
• Labor Department and Health,
Education and Welfare Depart
ment combination of efforts to
ease the lengthened llvetf of sen
ior citizens.
• State and Federal officials
banding together in a council
dedicated to helping men and
women over 65 to be healthy, sol
vent and useful.
The reason for so much Gov
* ei nment activity is a fundamental
und a frightening one. Families
have abdicated their responsibili
ties for grandparents to the Gov
ernment, to companies, to unions
and to social agencies.
So-called progress, not heart
lessness, has accounted for the
shift.
People Live Longer
Medical science has already
stretched the life span. In 1900,
there were 3 million people over
65. Now there are 15 million. Some
20 million are expected by the
end of the next decade.
A baby boy in 1900 could ex
pect to live to be 46. and a girl,
48. American children born to
day can expect to live to be 70
or 75.
Industries have assigned parents
to jobs across the country from
their sons, and sons often con
tinents away from their parents.
At the same time lives were
lengthened, working years dwin
dled. The modem economy de
manded speed, precision and en
ergy from its workers. Employers
expended millions to search out
young talent. They discarded the
old through mandatory retire
ment plans without counting the
costa—until recently.
Age and Employment
Now, economists have discov
ered an unreasonable prejudice
against older workers. “How old
are you?" can’t be answered hon
estly by a man over 40 or a woman
over 35 without seriously endan
gering his chance of being hired.
Another complicating factor is
that couples today marry much
younger than they did in 1900
Then, a man's productive years
ended about the same time he had
raised his family. Now, most fam
ilies are broken up by children's
■ HLjJF t \r
M
§ 51
Sr An -at.
:■; ■ V
GETTING AN EARLY START. John A. McCone work* during the rid* to his AEC oHice at Germantown, Md.
nia, he worked the swing-shift
at a shipyard and later was a
riveter and boiler maker.
With that background, he is
Immune to most noises.
Public vs. Private Enterprise
But he says there has been
altogether too much ruckus over
whether economical nuclear power
could best be developed by public
utilities or private enterprise.
“I believe the public-versus
private power issue in the nuclear
field has been unnecessarily and
erroneously emphasised by indus
try, by public and private power
groups and their Washington
spokesmen, and by people within
Government," he says. “To some
extent, it has delayed develop
ment.”
With nuclear power still more
expensive than conventional
power, the important thing is to
find away to cut costs, Mr.
MoCone says. “If we continue to
follow a policy in the AEC of
making research information
available to all. then it shouldn’t
make a great deal of difference
who does the development work."
After the technique has been
made economical, says Mr. Mc-
Cone, there might be some basis
; -
\ £jf 1
#ts£22r. j
USEFUL LABOR FOR OLDER PERSONS is on objective of the Government in new bills.
marriage or leaving home from 15
to 20 years before the parent’s
most productive years have passed.
Where has this way of life left
the aging?
It has left one-third of the
men and two-thirds of the women
over 65 with incomes of less than
SI,OOO a year. Nearly three-quar
ters of these elders are alone—
either single, widowers or divorced.
They get little sympathy or
cash. Without money, loneliness
and Insecurity overcome many.
Mental deterioration threatens
those without a backlog or a useful
role in society. One patient out of
every three in our mental hospi
tals is over 60. So while about 10
per cent of the total population
is over 65, more than 25 per cent
of our mental patients are over
65. One authoritative estimate is
that within another 10 years. 50
per cent of our mental hospital
inmates will be senile and arterio
sclerotic patients.
Many of the strong-minded,
independent oldsters are relegated
to cheap rooming houses or sub
standard apartments. Decent
nursing homes are hard to find.
Homes for the aged are in sad
condition.
Understandably, the aged have
for arguing the merits of public
vs. private power—but not now.
The AEC chairman believes
nuclear power plants capable of
competing with conventional
power plant* can be built by the
mid-19605. And ho agrees with
the recommendation of a special
advisory committee that emphasis
should be placed on developing
pilot-plant reactors Instead of
full-scale plants.
“This country could build big
reactors right now." he says.
“Obviously they would have to be
built on the basis of known tech
nology. They would not produce
competitive power. The power
would be more costly than if we
went through a little more devel
opment period—and that calls
for prototypes (pilot plants).”
Held Defense Jobs
However, Mr. McCone isn’t a
foot dragger. He proved that in
previous Government jobs—as a
member of former President Tru
man’s Air Policy Commission in
1947, as Deputy Secretary of De
fense in 1946, and as Air Force
Undersecretary from i 960 to 1951.
He likes to recall that as early as
1950 he recommended that the
Nation’s infant guided missile
program be conducted by an of
formed a powerful political group.
Their bloc of votes puts their own
interests today above highways,
schools and urban improvements.
Pressure has increased to re
store the productive capacities of
elder citizens to the economy, and
at the same time to insure the
comfort of the really feeble aged.
Pending in Congress is legisla
tion to outlaw job discrimination
purely because of age. Public of
ficials. after hearings, could order
employers to rehire workers dis
missed merely because of their
•ge.
Work Surveys in Stotes
Many States, led by lowa, New
York, Rhode Island, Massachu
setts and Louisiana, have launched
studies to And out just what kind
of work older people do better
than their juniors. Between the
ages of 45 and 70 emloyes were
found to be more stable, more re
liable and loyal, and absent from
work less.
Company-union education ef
forts have resulted in hiring of
more older persons in small in
dustries. service crafts and tech
nical jobs.
Attempts to insure oldsters ade
quate income have taken many
ficial with "absolute power over
the entire effort.”
“In August. 1950,” he says. “I
pointed out to my boss (then Air
Force Secretary Thomas K. Fin
letter), and it eventually got up to
President Truman, that while we
were then spending SIOO million
a year on missiles, we should spend
$3 billion a year or more.
"I also said we should have a
project like the Manhattan proj
ect that produced the atomic
bomb, with all the services work
ing on missiles under a directo
rate, and with the primary re
sponsibility in the hands of an in
dividual—a ’czar’ type thing, if
you will.”
The idea was accepted in modi
fied form, he says, with K. T. Kel
ler as co-ordinator. “He did a su
perb job. but he could have done
a better job if he had ‘ actually
controlled the whole project,”
says McCone.
Mr. McCone, who reportedly
was an unofficial adviser to Pres
ident Eisenhower on missiles be
fore he took the AEC job, says he
thinks the missiles program is
progressing very well. "I think we
are going to see spectacular prog
ress—in fact, we’re seeing it right
now.”
He adds, “I think we have to
do enough to be sure that any-
forms. There's a legislative move
to raise the *1,200-a-year limit on
income for social security recipi
ents. Bills have been proposed in
Congress to tie medical insurance
to social security payments.
A less radical measure would
establish a presidential commis
sion to explore private and public
health insurance programs, to And
defects and recommend improve
ments.
Private groups, such as “Forty-
Plus” clubs and the American So
ciety for the Aged, organized by
Mary Pickford. work to keep elders
on the job. and contented after
they must leave.
A three-pronged Federal pro
gram already under way is under
constant scrutiny. It provides
generally for:
Medical research by granting
Hill-Burton funds to match local
money spent on institutions for
the chronically ill. Also proposed
has been legislation to let small
insurance companies pool their
risks to develop new types of pro
tection for the agld.
Housing help by letting friends,
relatives and employing com
panies co-sign mortgages for per
sons over 60. NonproAt organiza
tions can get Federal loans to re-
body who would launch a surprise
attack of any magnitude would
get back a counter-attack so mas
sive that they wouldn’t attempt
to put the idea into action in tbs
first place.”
“In my Air Force days,” Mr.
McCone recalls, ”1 was devoted to
the concept of massive retaliation,
and I still am.”
•
Trios for Conciliation
When he moved into the AEC
chairman’s office, Mr. McCone
made no mention of Admiral
Strauss' periodic tiffs with the
Joint Atomic Committee. He said
only that his aim would be to
bring about “a conciliation of
views” between the AEC and the
committee.
Still, there was a flareup last
week between Mr. McCone and
Representative Hollfleld, Demo
crat of California, at a hearing
on the Administration’s latest
program in the development of
electric power from atomic energy.
The words exchanged while
sharp—were the result of a mis
understanding. both men agreed
at a resumption of the hearing on
Friday.
Mr. McCone is a handsome,
silvery-gray man of medium
build. He plays golf in the low
80s, but has managed only a cou
ple of rounds in recent months,
what with learning the ropes of
his new Job and making four trips
to Europe. A Catholic, he attend
ed the funeral of Pope Pius XII.
He says he has made no attempt
to become a nuclear whiz-kid,
other than to get a general feeling
for the technicalities. He gets ad
vice on the technical stuff from
staff members, a policy that al
lows him wider range “to lodge
problems from the standpoint of
the businesslike approach ”
He divides his time between the
AEC’s new headquarters in Oer
mantown. Md., and a branch office
downtown.
Mr. McCone says he doesn’t
mind the long jaunt to German
town—“it gives me a chance to
keep up on the reading that’s
required on this job.” His car is
equipped with a radio telephone
in case there’s some change of
schedule while he’s on the road.
The chairman and his wife.
Rosemary, lived in hotels until
recently when they found a house
suitable for themselves and three
servants. They had just moved
into a new home in San Mareno,
Calif., when he was named AEC
chairman.
When Mr. McCone was in busi
ness in Los Angeles—his ship
building firm turned out about tl
billion worth of ships during
World War ll—employe* said he
outdid Hollywood’s version of big
businessmen, handling several
phone conversations at the same
time. But one of his secretaries
there says “he was never too busy
to say please,’ ‘thank you’ and
‘my, you did a nice job on that.' ”
Though usually mild-mannered,
one of his AEC staffers says “he’s
impatient with delay or sloppy
work—he's interested in results,
not excuses.”
nU housln * for the
aged. Public housing projects aive
priority to the aged.
Employment aids through an
educational campaign directed by
the Labor Department.
Efforts to inject social instru
ments into a traditionally family
relationship. Sponsors are the first
to admit that loneliness can’t be
legislated away. But legislation
and social action must clear the
way for elderly Americans to find
friendship and understanding.
Senator McNamara, Democrat
of Michigan, will handle the new
flood of legislation to aid oldsters
as chairman of the recently
formed Subcommittee on the
Aging.
Already at work is a Federal
Council on the Aging, formed in
1956 by Representatives from 13
Federal departments. It operates
in conjunction with the Coun
cil of State Governments in a kind
of Federal-State committee to co
ordinate public and private ef
forts.
Employment practices are in
vestigated constantly by the Labor
Department. Health, Education
and Welfare has experts at work
on protecting the health and rais
ing the incomes of elder citizens.
Insurance for Older Citizens
President Eisenhower recom
mended to Congress Ave years
ago Government reinsurance of
any special risks assumed by in
surance groups willing to experi
ment with greater protection
against high medical bills. He
said his plan would put the Gov
ernment neither in the insurance
business nor in the business of
providing medical care.
However, the American Medical
Association, which had previously
helped to defeat the Truman plan
for compulsory medical Insurance,
saw the Eisenhower plan an “en
tering wedge for socialized medi
cine.” The House defeated it in
July. 1954, by vote of almost two
to one.
Criticism of Insurance
One chief criticism of the pri
vate system of health insurance
at the time was that its beneAts
covered only a relatively small
part of necessary medical ex
penses. Another was that it did
little or nothing to meet the needs
of low-income families or of the
higher age groups in the popula
tion. Insurance for the elderly
presented particularly difficult
problems. That was because this
THE SUNDAY STAR
WeriHwgtaa, D. C, Srntdty, March 1, 1939
On Pricing Goods
Out of World Mart
By HERBERT M. BRATTER
CantrMutlni Writer
President Eisenhower Is one of
a growing number of Americans
who think that we are pricing
ourselves out of world markets
and Indeed, out of the home
market.
In his press conference last
week Mr. Eisenhower said:
“I believe that the reason we
are having so much trouble
competing with other coun
tries ... not only within the
neutral markets like in Mexico
... but right here at home, we
can’t compete with them.
“Our costs are Just too high.
We cannot continue to Increase
these costs and have the kind
of foreign trade that will make
our own country prosperous."
What prompted the President’s
remarks was a question about the
award earlier in February of a
TV A turbine contract to a British
firm whose (12 million bid was
about 65 million below the nearest
American company’s bid. In the
earlier Oreer’s Ferry. Ark., case
the low British bid was thrown
out on the grounds of "national
defense"
Concerned Over the Dollar
The President and his financial
aides, including Secretary of the
Treasury Anderson and Federal
Reserve Board Chairman Martin,
have been very much concerned
over the effect of rising costs on
the stability of the dollar at home
and abroad. Both Mr. Anderson
and Mr. Martin have reported en
countering abroad increasing ap
prehension about the strength of
the American monetary unit.
Evidence of diminished foreign
confidence in the dollar may be
found in the heavy outflow of gold
from the United States over the
last year and longer. In a number
of foreign countries the United
States dollar is quoted at a small
discount from parity. This rep
resents quite a change from the
postwar decade, when the dollar
was a scarce currency almost
everywhere.
Whereas formerly the United
States dollar could look down its
nose at foreign monetary units like
the pound, the lira and the pesos
of Latin America, now quite a
number of European currencies
can look the dollar straight in the
eye. Last December Europe's lead
ing currencies were made almost
fully convertible. This means in
creased esteem for European units
and reflects the fact that they
have improved buying power at
home. The same goes for Japan's
yen.
Comeback Abroad
In other words, foreign indus
trial countries, no longer pros
trated by World War 11, are back
in business, equipped with effi
cient factories and manned by
capable workers whose wages are
lower than those of American
workers and who are ready, able
and willing to put in a full day's
w’ork without featherbedding and
high-cost fringe benefits. They
can deliver the goods.
This is not the only reason why
we are meeting foreign competi
tion in third markets and even
in our own market in such things
as automobiles, steel, sewing ma
chines. bicycles, clocks and
watches, textiles, machine tools,
fish, and many other products:
but it is an important reason.
Through the Marshall Plan and
other foreign-aid programs we
have helped equip foreign Indus
try to compete with our own by
means of up-to-date American
made machinery and American
techniques and processes.
Not all our Imports today are
a result of diminished competing
power on the part of our pro
ducers. Some foreign specialties
like Scotch whisky and British
woolens have been coming here
for years. Textile imports from
Japan have long been trouble
some; but now our mills admit
they cannot compete with those
of India and Hong Kong, as well.
In 1958 we imported some 416,-
000 foreign cars, not only because
they were produced with cheaper
labor than our own, but because
they catered to a market ignored
by Detroit's Big Three: the small
car market.
Such an old supporter of the
reciprocal trade program and for
eign aid as Walter Reuther of the
United Automobile Workers now
exhibits worry. Os foreign pro
ducers of automobiles, textiles,
watches, shoes, and other goods,
the Detroit News quotes him as
saying:
“Make them pay higher wages
group included so many poor
health risks.
Little progress has been made
during the last Ave years in pro
viding health insurance at costs
poor families can afford. But
there has been notable progress
in enlarging types and duration
of beneAts and most recently in
providing for health needs of the
aged.
In earlier years the companies
exercised freely their right to
cancel or to refuse renewal of
policies when the insured showed
declining health or reached the
higher age brackets. Now so
called non-cancellable insurance
can be bought from many repu
table companies. Although some
of these policies can be terminated
by the company at age 65, others
at 75, still others at 85. an in
creasing number of companies
offer guaranteed -for - life insur
ance.
The most striking experiment in
insuring the elderly is the "65-
plus" plan. This was launched in
lowa in 1957 by the Continental
Casualty Co. and is being extended
to other States including the Dis
trict of Columbia. The policy is
sold without restriction as to age
and without medical examination.
or the equivalent in higher im
port duties, one of the other."
That British turbines can bo
offered at so much lees than
American ones is largely a matter
of labor costs. Turbines can’t bo
mass-produced. And now that
Britain's and Europe’s capacity
has caught up with demand we
are feeling their competition not -
only here, but in third markets.
Statistical confirmation of the
President’s fears is hard to pro
duce. For one thing, the large
size of our exports is cited as
evidence that we are still doing
pretty well. In 1958 our non
military exports totaled $16.3 ba
llon. In “normal” (pre-Buea)
1956 we exported $17.3 bUllon.
As last year was partly a recession
year, these figures don’t look bad.
Our exports to non-industrial
countries of the free world dur
ing the first half of 1958 were at
an annual rate 8 per cent greater
in value than in all of 1956,
whereas the corresponding ex
ports of Europe and Japan were
9 per cent greater. Trade experts
do not regard this as indicating
a significant loss of position by
the United States.
Costs Rise Abroad, Too
It is to be gathered from the
President’s quoted remarks that
prices of our exports have been
rising more than those of our
competitors. A Government com
parison of domestic wholesale
price Indexes in 1953 and the
greater part of 1958 (In most
cases 10-11 months) shows that
British costs rose more than ours,
although German and Italian
costs rose less. The five-year in
creases are:
Britain 13 per cent.
United States 8 per cent.
Germany 6 per cent.
Italy 1 per cent.
Prior to the franc devaluation
in December. French costs had
risen 20 per cent.
Over the long run, implementa
tion of the European common
market should result in still lower
European costs and hence in
greater competition between Eu
ropean and United States indus
tries. •
Not to be overlooked in this
picture is the role of United
States_ industrial investment
abroad. Some of the competition
we have been experiencing of lata
is competition from oversea sub
sidiaries and affiliates of American
firms. The English Fords to bo
seen on Washington’s streets are
an example. There are many
others which are not so obvious.
Some office-machine makers, for
instance, bring in parts from
their European plants.
Encouragement of foreign in
vestment by Americans has been
an active program of the United
States Government since World
War 11. We have invested billions
directly in tactories, mines and
the like; and indirectly in for
eign bonds and stocks. Such in
vestments for the most part have
their physical counterpart in our
merchandise exports. So does our
large foreign aid.
In 1958 private new investments
by Americans abroad totaled $2.7
billion. Government grants and
loans another $2.6 billion, private
gifts S7OO million. One way to
compete in business is to give or
lend your customer the necessary
cash.
Rising American Costs
In short, while Mr. Eisenhower
is right in holding that rising
costs tend to handicap our com
petitive ability in world markets,
the condition does not yet appear
to be one justifying any alarm.
Rising American costs often have
their counterpart in rising foreign
costs of production, the above
cited index numbers suggest.
t The appearance of imported
goods in our markets is not solely
to be explained by low foreign
wages. Foreign cost advantages,
moreover, are in part offset by
United States import duties and
other trade restrictions.
The world has incurred a big
indebtedness to the United States
for goods we have sent abroad in
past years as loans and invest
ments. By shipping goods here
foreigners earn the means to
repay us. We’ll be seeing more
foreign goods.
Every Export-Import Bank or
Wall Street loan today made
abroad will mean “competition”
with our businesses sometime in
the future.
But that will be some future
President's worry.
It provides beneAts of up to $lO
a day for hospital care for a
maximum of 31 days for each con-
Anement. up to SIOO for miscel
laneous hospital expense, and up
to S2OO for surgeon fees. So long
as the premiums are paid, an in
dividual policy cannot be can
celled. The company has left
itself an out by reserving the right
to cancel or modify all policies in
a State if heavy losses are suffered.
How the Policies Work
The policies are offered in a
particular area through full-paga
newspaper advertisements, with
corner coupons for mailing. Thera
is no personal solicitation.
At the end of an enrollment
period of three weeks all policies
are processec at the same time
by electronic machines. Commis
sions to company agents who han
dle the initial applications ara
held to 1 percent. These and
cost-saving methods, if applied
generally, should help to check
the rise in costs of health pro
tection and perhaps ultimately to
reverse the upward trend of
premiums in recent years.
(Cdltorlal Ronrireh RoporM)
A-27