Newspaper Page Text
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 MOST COMPLETE FOR HEAT | FUEL SPECIALISTS IF IT’S FUEL OIL OR COAL for the home, hos pital, hotel or apartment house, Griffith Con- 1 sumers has it. ■ IF IT’S OIL BURNER SERVICE for office build ing, school, church or motel, Griffith Con sumers can supply it. IF YOUR FUEL AND SERVICE requirements > are residential, institutional, commercial or ■ industrial, the House of Fuel Service, dedi- y'-* cated to keeping you or your tenants con veniently warm, is round-the-clock-ready to LHiLtDiuu answer. One call for any fuel heating service. PHONE ME 8-4840 (gIFFITH-(ONSUMERS 1413 NEW YORK AVENUE, N.W. Largest coal and oil supplier for Washington, Maryland and Virginia. b ■ J j. r v' I 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 BBb>. In o special Beltane advertisemeent in the Feb ruary Reader's Digest, Arthur Godfrey suggests how you, too, may hear again—clearly and easily—thanks to remarkable Beltane hearing aids. Godfrey describes a FREE 28-page book ' that tells about the new Beltanes and reveals all the wonderful facts on new hope for the hard-of-hearing. For your copy, rushed to you in o plain wrapper, mail coupon, phone or stop by TODAY! No obligation. Coevrleht W 62. House 1 Gerslin 4ft Only at the famnut Towers ■ , apartment! do you get the f g Z ' continental elegance and V f < luxury comparable tn the accommoda- j the ... J the prestige of a fine K dining room and cock- " . 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Alexandria-Ridge Rd. from 1 2th and Penna. 3 Bedroom, 2 Both, Full Dining Room from $295 Ave. direct ,o door. Beautifully Furnished Apartments from $172 Rent includes all utilities Model Apartments by Mayor * Co. Open Daily and Sunday 10 a.m, to 7 p.m. 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 IF HEARING IS YOUR PROBLEM , ’ youran ’ w “ BELTONE-ORRISON CO. 1402 NEW YORK AVE. N.W. 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.