Evening star. [volume], February 04, 1962, Page A-2, Image 2

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

Image provided by: Library of Congress, Washington, DC

                
THE SUNDAY STAR
Wflikington, D. C., February 4, 1961
A-2
i -- If HrV
MRS. ROCKEFELLER IN NEVADA
Mrs. Nelson Rockefeller, in Nevada to divorce New York Gov. Rockefeller,
rides yesterday at a Sierra guest ranch near Reno. —AP Wirephoto.
Walker Puts Defense
As Reason for Race
AUSTIN, Tex., Feb. 3 <AP >..
—Former Army Ma.i. Gen. Ed- i
win A. Walker said today his
race for governor of Texas is
part of his fight against in
ternational communism.
"The reason I am running
and my platform are the same,”;
he told a news conference in a
committee room off the State
House of Representatives.
• "That is the need to defend
the United States under God
in a struggle for* survival
■ against international commu
nism. With nine million others,
I want Texans to lead this
fight.”
Gen. Walker surprised State
Democratic officials yesterday
afternoon by walking into
State Democratic headquar
ters and presenting a SI,OOO
check to get his name on the
Democratic ballot at the May
5 primary.
In answer to questions why
he chose to run on the Demo
cratic ticket instead of the Re
publican and about his voting!
record. Gen. Walker said he
thought he voted for a Demo
cratic presidential candidate
once and he remembered voting
twice for Republican candi
dates.
Recalls Nixon Ballot
He said he marked his ballot
in 1960 for Richard Nixon, the
Republican candidate, but he
was sure his overseas ballot ar
rived too late to be counted.
.He said he remembered voting
. for Dwight D. Eisenhower
j either in 1956 or in 1952.
' "I am sure I voted once for
(Franklin D.) Roosevelt.” he
‘ said when asked if he ever
■ clearly remembered voting for
a Democratic candidate.
As to why he chose to run
the Democratic ticket instead
of the Republican. Gen. Walker;
said: "I entered a race where
there was national interest.” He
said "We’ll see when the time
comes.” when asked if he would
, support other Democratic can
>’ didates.
: "I have acceded to demands
to run for governor of Texas.”'
Gen. Walker read from a state
ment.
Hits No-Win Policy
i “My friends and supporters
1 are Nation-wide. It all started
in Germany where I received
4,000 letters, petitions and reso-
THE FEDERAL SPOTLIGHT
Kennedy's Pay Raise Proposals
To Be Delayed Several Weeks
By JOSEPH YOUNG
Star Staff Writer
President Kennedy’s specific
1 Federal employe pay raise rec
ommendations to Congress
which were due tomorrow will
be delayed probably for sev
eral weeks.
Differences of opinion among
administration officials over
what the final proposal should
contain, plus the complicated
technical work in drafting the
proposed legislation, are said to
be the reasons for the delay.
The Senate Civil Service
Committee pay hearings sched
uled to start Tuesday will pro
ceed as planned, with admini-.
stration officials as the opening l
witnesses.
However, administration offi
cials are expected to confine
their comments to the general
principles of the administra-I
tion’s pay plan, rather than to
any specific pay raise figures.
Amount Still Undecided
One thing still to be decided'
by Mr. Kennedy and his ad
visers is the amount of pay
raises to be sought for upper
bracket career employes and
Presidential appointive offi
cials.
The original Budget Bureau
plan called for a top Classifica
tion Act salary of $29,000 a
year for Government careerists;
in grade 18. with substantial
pay boosts all along the line for
upper-middle* and top-bracket
civil servants. Presidential ap- j
pointees under the Executive j
Pay Act would get up to $30,000
) a year. Cabinet officers would
get $35,000.
I Increases for rank-and-file
L
| lutions. . . . Since my return I
have had 150 requests to speak.
“National survival is the over
riding issue. America’s no-win I
policy has put the' Nation in
dire peril.
“There is no hope in sight
for relief from the devious deal
ers of machine politics.”
Asked if he had financial
600 Republican Pupils
■' Start Work at Politics
By the Associated Press
Six hundred Young Repub
licans received graduation cer
tificates in leadership training!
last night, and speakers as
sailed the SIOO million United
Nations bond issue proposal and
asserted President Kennedy is
trying to sell shop-worn stuff.-;
( The Young Republicans re
ceived their certificates after
four days of learning about
practical politics from their(
leaders in Congress and in State i
administrations.
They topped off their train
ing program yesterday with
precinct canvasses of metropol
itan area voters designed, in
part, to separate the Democrats,
Republicans and independents
in preparation for 1964. when
Washington residents will vote
for President for the first time.
G. O. P. National Chairman
William E. Miller told the grad
uates in prepared remarks the
United States should try to find
out whether the United Nations
Charter needs revising before it
accepts the Kennedy proposal
(to buy SIOO million in U. N.
I bonds.
i "Before we buy the bonds.”
he said, "it is time that we said
to all of these other naUons
who can’t pay anything, who
don’t want to pay their share
to support the United Nations
—look, you are a smaller na
tion. you have more to gain
than we from the United Na
tions. If you don’t pay your
fair share, then what good to
us is the United Nations?
i "I think we might as well say
> before we do this that we are
I going to take a whole new look-
I see at the Charter and see
• whether or not it needs revising.
classified employes as well as
! postal workers would be much
more modest under the Budget
Bureau plan which would
spread the proposed increases
for the Federal and postal
service over a three-year period
starting next January 1.
*♦ ♦ *
RUMBLINGS However,
there already have been rum
blings of discontent heard on 1
Capitol Hill, where many mem
bers of Congress don’t like any
. plan which would result in Fed
eral civil service officials mak-1
ing more money than they do.
j Members of Congress get $22,-1
' 500 a year.
I Also, there is considerable;
(sentiment in Congress for giv-i
ing postal workers more than
j the 7.2 per cent total three-year
raise proposed by the Budget
i Bureau. Also, there is consid-!
(erable feeling on Capitol Hill
that classified employes in the
i lower grades should get more
than contemplated by adminis
. I tration officials in the initial
idraft of the pay plan.
Under the original proposal,
classified employes in the first
two grades would get no raises
(Bureau of Labor statistics
show that jobs in these grades
compare favorably salary-wise
(with comparable industry jobs)
and the three-year raise for
! those in grade 3 would average
about 2 per cent. Employes in
grade s—the most populated
grade in the Classification Act
| schedule—would get a total
j three-year raise of about 9 per
I cent.
The raises would Increase as
the grade got higher, with pay
raises of nearly 40 per cent for
>
I support from H. L. Hunt,
wealthy Dallas oil man, Gen. I
Walker replied:
“My support comes from hun
dreds of small checks all over
the country, mostly in Texas.
I am in no way committed to
Mr. Hunt, who I consider a
fine gentleman and an Inspired
American.”
He was aked if he is a mem
ber of the John Birch Society.!
“If I was not a member I would
be considering being a mem-i
ber.” he answered. When
pressed by the questioner, he,
said that meant he is a member.
I “We cannot allow it to be-|
come a forum for Russia, but
we can take a good look at its
operations with an eye to im
proving them.”
In sharper language, Mrs.
Clare B. Williams, assistant Re
publican chairman, told the
trainees the Kennedy adminis
tration “touts merchandise
which is the same 30-year-old
shop-worn stuff Americans do
not want, do not need and can
not afford.”
Police Private
Found Guilty
A police trial board has rec
ommended a $375 fine against
Second Precinct Pvt. Alfred G.
Manfredi, 39, after finding him
guilty of five counts of mis
conduct.
The policeman, with 13 years’
service, was found guilty of
. making untrue statements un
der questioning by his superiors,
i «f disobeying orders to report
1 to his captain and submit a
; written statement, and of fail
, ing to respond to questions,
i Pvt. Manfredi was acquitted
’ of a charge of failing to re
( port a fight Injury and of
making untruthful statements
-about the fight.
>i Charges against Pvt. Man
. fredi stemmed from a police
>; investigation that followed a
. complaint by his wife, Florina.
those in the upper career
brackets.
There is indication that Pres-.
ident Kennedy will trim the (
proposed $29,000 a year top
career ceiling to about $21,500
or $22,000 before sending it to
Congress.
The administration's entire
pay plan is based on “com-
I parability” with industry pay.
Figures used are those compiled (
by the Bureau of Labor
Statistics.
BLS THE KEY. The admin
| istration-would like to make
Federal salaries comparable
with industry immediately, but
because of the cost involved has
(asked Congress to stretch out
the increases over a three-year
period.
Once comparability is reached,
administration officials feel
that the annual BLS salary
figures could be used by Con
gress as an accurate barometer
to adjust Federal salaries in
the future to keep them on a
reasonable parity with industry.
Administration officials don't
envision annual adjustments of
Federal classified and postal
(salaries in the future, but feel'
that w+ienever the situation
calls for it, Congress could be
expected to take action to ad
just pay at least every two or
three years.
The administration's pay
plan also is expected to call for
more flexibility in the salary
schedule, with more within
steps to each salary grade in
order for agencies to have more
leeway to make merit raises and
to adjust salaries within a grade!
to meet industry oay trends.
I
HOW TO PICK A BROKER
There are many reliable, established Investment
firms in Washington with whom you can invest with
confidence. To would-be investors, they give this advice:
1. Know the investment firm. Check with your
banker or other financial adviser on the firm's back
ground and reputation.
2. Insist on reading the prospectus or circular before
you invest in a new stock to understand just how much
risk is involved.
3. Never buy stocks on the basis of unsolicited tele
phone calls. This is the high-pressure approach that
can lure you into losing money.
4. If a salesman makes extravagant promises about
a new or recently issued stock but declines to put his
statements in writing, watch out—and report to the
Securities and Exchange Commission or the National
Association of Securities Dealers.
INVESTORS
1 of 3 D. C. Brokers
Found to Be Unsafe
Continued From Page A-I
has been duplicated on a small
er scale by the customers of
other firms.
These newcomer firms have
opened their doors with promo
tional fanfare, accepted money
from their customers to buy!
stock and closed their doors. In
some cases, they have protected
their investors. But, in other j
cases, the customers have beeni
seriously hurt.
A Star survey of more than
60 firms which have opened for
business here since January,
1960, showed that approxi
mately one-third of them have
already gone out of business or
been put out of business by the
SEC or the National Association
of Securities Dealers.
In one recent week alone, two
Washington firms were expelled
, by the dealers’ group and three
Washington firms were named
in actions launched by the SEC.
Since the start of 1960. the
SEC has obtained injunctions
i against 11 Washington firms
i and revoked the dealer registra
tions of nine firms. The SEC
: regional office covers Penn
sylvania, Maryland, Virginia,
i West Virginia. Delaware and
the District, but in the past
two years, half the SEC actions
against broker-dealers through- !
out the region have been against
Washington firms.
During the same period, the
National Association of Secu
rities Dealers' district commit
tee has filed formal complaint'
against 44 Washington firms. ■
expelled 18. suspended one and
fined 20. It has revoked the(
1 registrations of 19 salesmen
and fined two a total of $4,000.
The closed doors, the in
junctions. revocations and com
plaints do not happen over
night. Before a firm’s inex
perience, lack of operating
s capital or questionable activ
. ities leads to formal action.
, plenty of customers have had a
' chance to lose their savings.
Both the SEC and the deal
vers’ association report that evi-
■ dence of violation of rules de
signed to protect the investing
I public is worse here than any
where else in their regions.
Both bodies are aware of the
prime cause: Washington has
jno local law to safeguard in
vestors against questionable or
i financially unfit dealers.
No Local Control
; Unlike most States. Wash
ington has no local control over
( the dealers or the stocks they
sell. It has no requirement
that broker-dealers be exper
ienced or trained before going
’ into the business of handling
f other people’s money. It has
no local control over salesmen.
It also has no requirement that
. broker-dealers have any money
t of their own before they go
t into business.
With more stringent regula
tions going on the books in
many Eastern States, pro
i moters have gotten out on’
. step ahead of legal action and
t moved into Washington where
they feel comparatively safe
5 until the SEC or the dealers’
association catches up with
■ them.
5 Out-of-town firms w-ith no
1 stock exchange connections
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have opened branch offices
here to escape the local con
trols exerted over their head
quarters in other States. '
Characteristic of some of the I
newcomer firms are their fancy
names, many of which are so
close to those of established
I firms as to be indistinguishable
when said fast. The names also
I are designed to give the im
i pression to customers that a
two-room firm has Nation
wide connections.
The lack of operating capi
tal, however, is rated particu
larly dangerous to the cus
tomers. Until the SEC pins
down a violation of its rule
that a firm cannot owe 20
times more than its net capi-,
( tai, some of these firms use
their customers' money to pay!
the rent, promote their bust-1
ness and furnish their offices.;
When their doors close, the (
customers’ money—if there’s'
anything left—can be attachedl
by other creditors.
The Star's survey of new
comer firms showed seven have
gone into business here in the
past two years with SSOO or
less in cash. One of them
started with SIOO. More than
half started with less than
$5,000. Many were in the hole
financially with the costs of
launching their business before
they even began accepting
customers’ money to buy stocks.
Their lack of experience in
the business is equally appar
ent—and as potentially harm-
I ful to the customers.
Experience Lack Shown
Os the 45 firms who have
registered with the SEC since
the start of 1960 and are still
in business, The Star's survey
showed that seven had no pre
vious experience in the se
curities field. Four reported
less than a year’s experience.
, Nine got their only training
, as salesmen for a now de
funct firm or in one of the
firms stemming from it. In 10
. firms, only one member of the
. company had any previous ex-
• perience. In only 11 of the 45
! firms, all the partners had
some previous experience but
, frequently not much of it.
i The roll call of the SEC's
public announcements dealing
• with Washington firms since
the start of 1960 reflects the
situation here. Actions against
these firms have been launched
■ or completed during the period:
American Diversified Secu
' rities, Inc.; Gildar & Co., Inc.;
t Guardian Investment Corp.;
• Carleton Securities Corp.; At-
• lantic Equities Co.; John R.
! Wilson, jr. Co.; Shawe and Co.,
) rag.'
1 H 11 jLii wl
FUEL OIL I
EST. 1913
5 ■HHLMmJMMMhMKfIK
Inc.; Klein, Runner and Co.,
Inc.; Lloyd. Miller and Co.; N;
Warren and Co.; International
Investments, Inc.; Allen, Mc-
Farland and Co., Inc.; Mulford
Wakeman and Co., Inc.; In
vestment Bankers of America,
Inc.; E. A. Burka, Inc.; Ameri
can Capital Corp.; General Se
curities Corp.; J. Morris Ander
son and Associates, Inc.; Stan
ford Corp., and Batten and Co.
During the same period, the
National Association of Securit-
FI «s» if 11 L»J iBtUJ Uaii < 1
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I J|*
tlei Dealer* publicly announced
the expulsion of Allen, McFar
land and Co., Inc.; Ball, Pablo
and Co.; American Diversified
Securities, Inc.; Gildar and Co.,
Inc.; E. A. Buika, Inc.; Atlantic
Securities and Stanford Corp.
Other firms whose expulsion
has been voted by the district
office have not been publicly
announced because their ap
peals are still pending.
Both the SEC and dealers'
i self-policing association have
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District 7-4314
made it clear that other actions
against Washington firms are
expected.
Tomorrow: Stock selling tech
niques of shoe-string operators.
Kennedy News Parley
President Kennedy will hold
a news conference Wednesday,
the White House said yester
day. The time will be an
nounced tomorrow.