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                    <hi rend="bold">Oral History Interview with James E. Holshouser Jr., May 9,
                        1998. Interview C-0328-3. Southern Oral History Program Collection
                    (#4007):</hi> Electronic Edition. </title>
                <title type="descriptive">Politics and the Party: A Former Governor&#x0027;s
                    Thoughts on North Carolina</title>
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                    <name id="hj" reg="Holshouser, James E., Jr." type="interviewee">Holshouser,
                        James E., Jr.</name>, interviewee </author>
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                    <resp>Interview conducted by </resp>
                    <name id="fj" reg="Fleer, Jack" type="interviewer">Fleer, Jack</name>
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                <funder>Funding from the Institute of Museum and Library Services supported the
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                <date>2008.</date>
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                        <title type="recording">Oral History Interview with James E. Holshouser Jr.,
                            May 9, 1998. Interview C-0328-3. Southern Oral History Program
                            Collection (#4007)</title>
                        <title type="series">Series C. Notable North Carolinians. Southern Oral
                            History Program Collection (C-0328-3)</title>
                        <author>Jack Fleer</author>
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                        <pubPlace>Chapel Hill, N. C.</pubPlace>
                        <publisher>Southern Historical Collection, University of North Carolina at
                            Chapel Hill</publisher>
                        <date>9 May 1998</date>
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                        <title type="transcript">Oral History Interview with James E. Holshouser
                            Jr., May 9, 1998. Interview C-0328-3. Southern Oral History Program
                            Collection (#4007)</title>
                        <title type="series">Series C. Notable North Carolinians. Southern Oral
                            History Program Collection (C-0328-3)</title>
                        <author>James E. Holshouser Jr.</author>
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                    <extent>36 p.</extent>
                    <publicationStmt>
                        <publisher>Southern Historical Collection, University of North Carolina at
                            Chapel Hill</publisher>
                        <pubPlace>Chapel Hill, North Carolina</pubPlace>
                        <date>9 May 1998</date>
                        <authority/>
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                        <note anchored="no">Interview conducted on May 9, 1998, by Jack Fleer;
                            recorded in Unknown.</note>
                        <note anchored="no"> Transcribed by Unknown.</note>
                        <note anchored="no"> Forms part of: Southern Oral History Program Collection
                            (#4007): Series C. Notable North Carolinians, Manuscripts Department,
                            University of North Carolina at Chapel Hill.</note>
                        <note anchored="no">Original transcript on deposit at the Southern
                            Historical Collection, The Wilson Library, University of North Carolina
                            at Chapel Hill.</note>
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                        <item>North Carolina <list type="sub-topic">
                                <item>Politics &amp; Government</item>
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    <text id="ohs_C-0328-3">
        <front>
            <div1 type="about_interview">
                <head>Interview with James E. Holshouser Jr., May 9, 1998. Interview C-0328-3.</head>
                <byline>Conducted by Jack Fleer</byline>
                <note type="deposit" anchored="no">
                    <p>Transcript on deposit at The Southern Historical Collection, The Louis Round
                        Wilson Library</p>
                </note>
                <note type="citation" anchored="no">
                    <p>Citation of this interview should be as follows: <lb/>“Interview C-0328-3, in
                        the Southern Oral History Program Collection #4007, <lb/>Southern Historical
                        Collection, The Wilson Library, <lb/>University of North Carolina at Chapel
                        Hill”</p>
                </note>
                <note type="copyright" anchored="no">Copyright © 2008 The University of North
                    Carolina</note>
                <note type="transcription_note" anchored="no"/>
            </div1>
            <div1 type="abstract">
                <head>Abstract</head>
                <p>In 1972, James E. Holshouser Jr. became the first Republican elected governor of
                    North Carolina since 1896. In his four-year term, Holshouser faced the unique
                    challenge of reintroducing the Republican Party to a leadership position in
                    Raleigh. In this interview, he describes that challenge, reflects on his term,
                    and considers some of the changes that took place between his departure from the
                    governor&#x0027;s mansion and the time of this 1998 interview. The most
                    significant challenge Holshouser addresses is the personal strain of a job that
                    demanded constant attention. He remembers disappointments such as his failed
                    effort to shepherd Gerald Ford to the Republican nomination in 1980, and a
                    deteriorating relationship with the media. After he left office in 1977, he
                    observed as the influence of money grew, often disbursed by political action
                    committees pushing an increasing number of different interests; he saw the
                    Republican Party grow in complexity as ideological divisions replaced regional
                    ones; and he watched the decline of the citizen-politician, as politics became a
                    profession rather than a calling. Holshouser also considers his legacy,
                    including his contributions to transportation, health, and the environment. As
                    he reflects on these changes and challenges, Holshouser reveals himself as a
                    consensus-builder and something of a pragmatist, a politician suspicious of
                    ideology and in favor of a robust two-party system. This interview will be
                    useful for students of North Carolina politics and those interested in one of
                    the state&#x0027;s few Republican governors of the modern era.</p>
            </div1>
            <div1 type="short_abstract">
                <head>Short Abstract</head>
                <p>James E. Holshouser Jr., North Carolina&#x0027;s governor from 1973 to 1977,
                    reflects on his term, the Republican Party, and North Carolina politics.</p>
            </div1>
        </front>
        <body>
            <div1 id="C-0328-3" type="sohp_interview">
                <head>Interview with James E. Holshouser Jr., May 9, 1998. <lb/>Interview C-0328-3.
                    Southern Oral History Program Collection (#4007)</head>
                <list type="simple">
                    <head>Interview Participants</head>
                    <item>
                        <name id="spk1" key="jh" reg="Holshouser, James E., Jr." type="interviewee"
                            >JAMES E. HOLSHOUSER JR.</name>, interviewee</item>
                    <item>
                        <name id="spk2" key="jf" reg="Fleer, Jack" type="interviewer">JACK
                        FLEER</name>, interviewer</item>
                </list>
                <div2 id="tape1-a" n="1-A" type="tape_side">
                    <pb id="p1" n="1"/>
                    <head>[TAPE 1, SIDE A]</head>
                    <note anchored="yes">
                        <p>[START OF TAPE 1, SIDE A]</p>
                    </note>

                    <milestone n="9390" unit="empty" type="start" timestamp="00:00:00"/>
                    <sp who="spk1">
                        <speaker n="1">JAMES E. HOLSHOUSER JR.:</speaker>
                        <p>A) the medical school has been a good asset for the state and B) we ran a
                            serious risk that by fighting that fight and losing we might have a
                            serious chink in the armor of the structure open up; fortunately it
                            didn&#x0027;t.</p>
                    </sp>
                    <milestone n="9390" unit="empty" type="stop" timestamp="00:00:31"/>
                    <milestone n="9203" unit="excerpt" type="start" timestamp="00:00:32"/>
                    <sp who="spk2">
                        <speaker n="2">JACK FLEER:</speaker>
                        <p>What do you see, if any, disappointments in your administration?</p>
                    </sp>
                    <sp who="spk1">
                        <speaker n="1">JAMES E. HOLSHOUSER JR.:</speaker>
                        <p>We didn&#x0027;t get the mountain area management act through.
                            Because of the Watergate timing, we really weren&#x0027;t able to
                            lay the groundwork for immediate competitive challenge by the
                            Republicans for the governorship in 1976. David Flaherty ran a good
                            campaign and is good a guy; but nobody could have won that year. I was
                            disappointed about that. At the same time, you know I have a different
                            perspective after twenty years. It certainly laid the groundwork. When
                            we got past that, North Carolina went to Reagan in 1980 and 1984, we
                            elected Jim Martin in 1984, and elected the Republican legislature in
                            1994. It has taken time, but we have crossed over barriers and you have
                            to feel good about that. And again, not that I view myself as the
                            builder of the Republican party so much as hopefully the builder of a
                            two party system which is good for the state. And I feel pretty good
                            about the fact that we did some, a second stage, jump start for the
                            community college system with the extra capital dollars that was there
                            and has carried over some practice to keep that energized. We are still
                            ahead of a lot of states although we could do more out there.</p>
                    </sp>
                    <sp who="spk2">
                        <speaker n="2">JACK FLEER:</speaker>
                        <p>So the mountain area management bill would be your major sort of
                            substantive disappointment. Why did that happen?</p>
                    </sp>
                    <sp who="spk1">
                        <speaker n="1">JAMES E. HOLSHOUSER JR.:</speaker>
                        <p>Lost the Republicans from the mountains. Could not hold the coalition
                            together. Didn&#x0027;t have any from the coast to start with on the
                            coastal bill. We got the <pb id="p2" n="2"/> Piedmont from both parties.
                            The Republicans from the mountains passed that and the Piedmont people
                            stayed in place on the mountain act. The coastal people
                            weren&#x0027;t going to vote for any more than they did for their
                            own because they were mad. I said mad, they already had a mind set
                            against it and the mountain people just had that populist thing about a
                            man doing what he wanted to with his own land.</p>
                    </sp>
                    <sp who="spk2">
                        <speaker n="2">JACK FLEER:</speaker>
                        <p>A man&#x0027;s home is his castle.</p>
                    </sp>
                    <sp who="spk1">
                        <speaker n="1">JAMES E. HOLSHOUSER JR.:</speaker>
                        <p>That is right. And I look back. It is hard to know how much overall
                            impact there is on things. We set up because what we called
                            people&#x0027;s days to go around once a month to some place and
                            just listen to people come in, first come first serve. Early on that had
                            some good things but as it went on the last couple of years I say it
                            seemed to be more people wanting their road paved or a son out of prison
                            or wanted you to take out the plate that the FBI put in there and was
                            listening to every thought they had. You had those three categories that
                            seemed to become more and more of the thing. I didn&#x0027;t feel as
                            good about it later on. It was a good ombudsman approach to give people
                            a chance to get heard if they were just getting lost in the system.</p>
                    </sp>
                    <milestone n="9203" unit="excerpt" type="stop" timestamp="00:04:14"/>
                    <milestone n="9391" unit="empty" type="start" timestamp="00:04:15"/>
                    <sp who="spk2">
                        <speaker n="2">JACK FLEER:</speaker>
                        <p>Other than the people&#x0027;s day that was a program of your going
                            out to various communities, you did set up the ombudsman&#x0027;s
                            office within the Office of the Governor. Did you feel that it
                            functioned better than the people&#x0027;s days in that regard?</p>
                    </sp>
                    <sp who="spk1">
                        <speaker n="1">JAMES E. HOLSHOUSER JR.:</speaker>
                        <p>Yes, very much so. Of course the staff in that office went out for
                            people&#x0027;s day and they had the job of following up on that.
                            Anything that came into the governor&#x0027;s office that looked
                            like a prior complaint hadn&#x0027;t been responded to at all went
                            over there. They had to contact the cabinet people. That is probably,
                            you were talking earlier about not necessarily a conflict, a control in
                            the administration. I think the folks in that office <pb id="p3" n="3"/>
                            were genuine young and energetic go getters. Don Quixote types almost,
                            partner like place, who kept a lot of things from slipping in the
                            cracks. That helped as much as anything probably in terms of public
                            attitudes about the administration.</p>
                    </sp>
                    <sp who="spk2">
                        <speaker n="2">JACK FLEER:</speaker>
                        <p>One could argue that given the declining trust, in a sense faith, that
                            people have had in government over the last say twenty or twenty five
                            years that having that kind of an office with, even some energetic Don
                            Quixotes, becomes an important antidote to that feeling.</p>
                    </sp>
                    <sp who="spk1">
                        <speaker n="1">JAMES E. HOLSHOUSER JR.:</speaker>
                        <p>That is right and there needs to be the right kind of attitude. You have
                            got legal services set up in regions across the state who end up suing
                            the government. I have always thought that some how that was wrong, to
                            take public dollars and sue yourself. But at the same time you have got
                            people who can be part of the administration in the broadest kind of
                            sense but really have the sole purpose of keeping track of the problems
                            that are just getting lost out there. Or in a few cases where somebody
                            who was just, in one of the departments who was deliberately sitting on
                            something because they just didn&#x0027;t want to do it. That
                            wasn&#x0027;t often but sometimes.</p>
                    </sp>
                    <milestone n="9391" unit="empty" type="stop" timestamp="00:06:39"/>
                    <milestone n="9204" unit="excerpt" type="start" timestamp="00:06:40"/>
                    <sp who="spk2">
                        <speaker n="2">JACK FLEER:</speaker>
                        <p>I want to talk finally about the impact of being governor on you as a
                            person and on your family. What do you see has been the impact of being
                            governor? What was it while you were governor and what has it been since
                            on you as an individual?</p>
                    </sp>
                    <sp who="spk1">
                        <speaker n="1">JAMES E. HOLSHOUSER JR.:</speaker>
                        <p>Well during the governorship you move from being just one of the fellows
                            to being the guy in the fish bowl all of the time and the family in the
                            fish bowl all the time. It has a serious impact on the wife and kids.
                            That is an impact that probably will last with them for a lifetime. In
                            one sense, it gives the governor something that you can&#x0027;t
                            lose, unless you throw it away and nobody can take away from you by the
                            fact that <pb id="p4" n="4"/> you got elected even if it is a total
                            accident. And that gives you I think a confidence. I think whether it is
                            deserved or not, it lets you see life in a little bit different
                            perspective. It has people seeing you in somewhat of a different
                            perspective. If you leave office and go out and get yourself convicted
                            of embezzling an investment of &#x24;100,000 from somebody or get
                            charged with sexual molestation of minors or whatever, you are going to
                            lose that. You have some potential to lose some of it if you come back
                            and try to run again and lose as Bob [Scott] did, against Jim Hunt.
                            Although I find for the most part those scars are probably felt just
                            inside of him and I am not sure that they are there. I think that most
                            people have sort of forgotten that; but it is just not in front of their
                            minds all of the time. They just view Bob as the former governor. I
                            think he is just as well regarded as others in spite of that loss.
                            Hadn&#x0027;t changed the fact that he knows a lot about government,
                            knows an awful lot of people, that kind of thing. Just the sheer fact of
                            running, if you run right, gives you a whole new perspective on the
                            state, how big it is and how long it is, all different parts of it.
                            Serving heightens that I think. It is nice to know that if my car breaks
                            down somewhere in the night any place, there is going to be somebody out
                            there I know who can come give me a place to spend the night. I think it
                            gives you a sense of public duty that doesn&#x0027;t stop when you
                            leave office. Part of it won&#x0027;t let you. Dan Moore told me one
                            time you can&#x0027;t ever quit being Governor. A lot of people who
                            helped you along the line still call and ask for you to do something.
                            You just can&#x0027;t say no. I am going over to Rowan County next
                            Saturday night to a Republican dinner, post primaries, I think. There is
                            not a single thing that says I should do that, except I just know
                            inside, I can&#x0027;t not do it.</p>
                    </sp>
                    <pb id="p5" n="5"/>
                    <sp who="spk2">
                        <speaker n="2">JACK FLEER:</speaker>
                        <p>You said it has a serious impact on family. Can you talk about that a
                            little bit more?</p>
                    </sp>
                    <sp who="spk1">
                        <speaker n="1">JAMES E. HOLSHOUSER JR.:</speaker>
                        <p>Well, I think wives have the hardest time during the administration. The
                            governor has lots of people pulling and tugging and people wanting him
                            to do things. You have got things to keep you busy. When the newspapers
                            shoot at you you either address that or ignore it whatever. But the wife
                            can&#x0027;t do a thing but just sit there and take it. It is harder
                            having somebody say something about the person you love than having it
                            said about you in a way, at least that is how I feel. I
                            haven&#x0027;t had many people say bad things about Pat so
                            I&#x0027;ll speak from experience. That is how it seems. Over the
                            years I have watched spouses have much more a difficult time with events
                            than the people who are directly involved. For our daughter, the four
                            years was a lot of good things. She got to see parts of the country and
                            the world that she couldn&#x0027;t see otherwise. Had a whole
                            different perspective about the highway patrol because they were around
                            all the time. She considers them her best buddies. She also has no
                            hesitancy about walking up to any state agency and walking through the
                            front door or calling and saying I have got to come see you about
                            something.</p>
                    </sp>
                    <sp who="spk2">
                        <speaker n="2">JACK FLEER:</speaker>
                        <p>Now.</p>
                    </sp>
                    <sp who="spk1">
                        <speaker n="1">JAMES E. HOLSHOUSER JR.:</speaker>
                        <p>Yes. And she would not hesitate to pick up the phone and call Carolyn
                            Hunt about something. I am not sure she has but I know she
                            wouldn&#x0027;t hesitate.</p>
                    </sp>
                    <sp who="spk2">
                        <speaker n="2">JACK FLEER:</speaker>
                        <p>It is the confidence to do that.</p>
                    </sp>
                    <sp who="spk1">
                        <speaker n="1">JAMES E. HOLSHOUSER JR.:</speaker>
                        <p>And yet she endured some things during those four years just because she
                            was always the governor&#x0027;s daughter wherever she went to
                            school and that set her apart. There were some down sides to that that
                            weren&#x0027;t serious fortunately. But it is things that I <pb
                                id="p6" n="6"/> think parents have to work really hard not to let
                            kids get sort of lost in all of this that is going on.</p>
                    </sp>
                    <sp who="spk2">
                        <speaker n="2">JACK FLEER:</speaker>
                        <p>I remember you saying earlier that whenever you finally decided to run
                            for the office of governor you said to your wife, you either have to run
                            for governor or get out of politics, things had come to that level. So I
                            assume that your wife and by extension that your daughter was part of
                            the decision to run for the office.</p>
                    </sp>
                    <sp who="spk1">
                        <speaker n="1">JAMES E. HOLSHOUSER JR.:</speaker>
                        <p>Well Ginny wasn&#x0027;t. Pat definitely was and she had been
                            supportive all the way through. And my father, even though he
                            didn&#x0027;t think I stood a prayer I don&#x0027;t think, once
                            I decided that I was going to do it, supported me all the way. When I
                            say all the way he signed a second mortgage on our house and he signed a
                            note.</p>
                    </sp>
                    <sp who="spk2">
                        <speaker n="2">JACK FLEER:</speaker>
                        <p>On the line for it?</p>
                    </sp>
                    <sp who="spk1">
                        <speaker n="1">JAMES E. HOLSHOUSER JR.:</speaker>
                        <p>That is right. Put your money where your mouth is or a risk of losing
                            money. He and my mother looked after Ginny during the time that Pat and
                            I were both on the road during the campaign. I am not sure that we
                            appreciated how much effort that they put in during that year. Even
                            after it was over with. It was one of those things that you do inside
                            the family, just a normal thing that was happening. But looking back,
                            they probably did as much for that campaign as anybody just in terms of
                            looking after our daughter and looking after all the things that I
                            couldn&#x0027;t look after and Pat couldn&#x0027;t look after
                            because we were gone.</p>
                    </sp>
                    <sp who="spk2">
                        <speaker n="2">JACK FLEER:</speaker>
                        <p>Did you take any special measures or decisions to try to maintain some
                            kind of &#x22;normal&#x22; family life?</p>
                    </sp>
                    <sp who="spk1">
                        <speaker n="1">JAMES E. HOLSHOUSER JR.:</speaker>
                        <p>Well I suspect that Pat probably did more thinking about that than I did.
                            We made a point of having breakfast every morning together. That
                            wasn&#x0027;t the case at <pb id="p7" n="7"/> dinners that you
                            attended where you had people coming in and Ginny couldn&#x0027;t be
                            part of that. And we made a point of marking on the calendar when she
                            was going to have some kind of event at school so that I
                            wasn&#x0027;t off in Charlotte or Timbuktu. Because you have got
                            some places you can go every night you just have to schedule those that
                            you have to work around with all the rest. And it is, I think Pat was
                            relieved to get out of the spotlight fish bowl and she would not be
                            enthusiastic if I decided I wanted to run again. She would probably say
                            I have been there and I didn&#x0027;t particularly enjoy it the
                            first time and I know I don&#x0027;t want to do it again. She would
                            probably do it if I really got my heart into it. She probably would do
                            it with enthusiasm to help win once we got into it. But up until I
                            decided she would be encouraging me not to do it probably. Ginny on the
                            other hand I think if the situation arrived would love to run for
                            office.</p>
                    </sp>
                    <milestone n="9204" unit="excerpt" type="stop" timestamp="00:16:19"/>
                    <milestone n="9392" unit="empty" type="start" timestamp="00:16:20"/>
                    <sp who="spk2">
                        <speaker n="2">JACK FLEER:</speaker>
                        <p>Herself.</p>
                    </sp>
                    <sp who="spk1">
                        <speaker n="1">JAMES E. HOLSHOUSER JR.:</speaker>
                        <p>Yes. And I don&#x0027;t think that she had thought of herself as the
                            first female governor. But I think she would love to run for the
                            legislature.</p>
                    </sp>
                    <sp who="spk2">
                        <speaker n="2">JACK FLEER:</speaker>
                        <p>So it did not create in her a negative attitude towards public life?</p>
                    </sp>
                    <sp who="spk1">
                        <speaker n="1">JAMES E. HOLSHOUSER JR.:</speaker>
                        <p>No. I have seen those tracks around. She has been involved in four or
                            five nonprofits in Surrey, Stokes and Forsyth counties. Some of my
                            Republican friends in Stokes say, &#x22;Boy your daughter is just a
                            natural. She comes before the county commission for her agency. She is
                            always the one they send over there and she says she gets up and makes
                            her pitch. You just can&#x0027;t say no.&#x22;</p>
                    </sp>
                    <sp who="spk2">
                        <speaker n="2">JACK FLEER:</speaker>
                        <p>Isn&#x0027;t that wonderful. She learned from the experience. </p>
                        <milestone n="9392" unit="empty" type="stop" timestamp="00:17:08"/>
                        <milestone n="9205" unit="excerpt" type="start" timestamp="00:17:09"/>
                        <p>Did you take any special efforts to, let&#x0027;s say for example,
                            guarantee vacation time or things of that type?</p>
                    </sp>
                    <pb id="p8" n="8"/>
                    <sp who="spk1">
                        <speaker n="1">JAMES E. HOLSHOUSER JR.:</speaker>
                        <p>Yes, we always left North Carolina the day after Christmas and went to
                            Ft. Lauderdale and spent from Christmas to New Years as a family. We
                            took two weeks off in the summertime and went to the western residence.
                            When we went to Florida, we didn&#x0027;t have any security people,
                            no staff or anything, just the three of us got on the airplane and went.
                            When I say the airplane, commercial flight, probably could have got away
                            with the other, just didn&#x0027;t. And Ned Cline of the Greensboro
                            paper one time got on to a rumor that some business man was setting us
                            up at his private abode down in Florida, thought we were on the take
                            about something and snooped around and snooped around. I finally said,
                            Ned I am not going to tell you where I go because I don&#x0027;t
                            want any phone calls ever down there. But I can tell you this, we flew
                            commercial, we stayed in a commercial motel, we have paid for ourselves,
                            paid for the plane flight, paid for the meals and there is just nothing
                            to it. He had traveled enough with me during the campaign that he knew
                            if I had told him that it was so.</p>
                    </sp>
                    <sp who="spk2">
                        <speaker n="2">JACK FLEER:</speaker>
                        <p>Is it the lack of privacy that you think is the most serious
                            &#x22;negative,&#x22; if there is a negative, or is it something
                            else?</p>
                    </sp>
                    <sp who="spk1">
                        <speaker n="1">JAMES E. HOLSHOUSER JR.:</speaker>
                        <p>Well, for the wife there is going to be about as many demands on her.
                            Plus, she has always got the governor&#x0027;s staff calling over
                            saying you need to do this and you need to do that and most of the
                            time&#x2026;</p>
                    </sp>
                    <sp who="spk2">
                        <speaker n="2">JACK FLEER:</speaker>
                        <p>Public functions she should perform?</p>
                    </sp>
                    <sp who="spk1">
                        <speaker n="1">JAMES E. HOLSHOUSER JR.:</speaker>
                        <p>Yes, or something that she ought to do. She probably knows as well as
                            they know whether she should do it or not. And when she gets criticized
                            and she got criticized a few times, three or four times in the four
                            years about something. Really upset her and it upset me too. Those were
                            just passing things. You just said. &#x22;It&#x0027;s a bad <pb
                                id="p9" n="9"/> editorial,&#x22; go on to tomorrow. If you think
                            you did the right thing don&#x0027;t second guess yourself. I think
                            the overall experience for all three of us though is that we look at
                            life a different way. Now she has still got the same core of interests
                            that she had before I ever got involved with politics, before we ever
                            got engaged, this nursing. And while she focused in on Hospice over the
                            last decade or so, that has always been her first love in a sense. While
                            there was a lot about politics she enjoyed and we both made a lot of
                            friends, I think she has been glad to get back to that.</p>
                    </sp>
                    <milestone n="9205" unit="excerpt" type="stop" timestamp="00:20:37"/>
                    <milestone n="9393" unit="empty" type="start" timestamp="00:20:38"/>
                    <sp who="spk2">
                        <speaker n="2">JACK FLEER:</speaker>
                        <p>It was not something that she could continue while she was in the
                        office?</p>
                    </sp>
                    <sp who="spk1">
                        <speaker n="1">JAMES E. HOLSHOUSER JR.:</speaker>
                        <p>That is right.</p>
                    </sp>
                    <sp who="spk2">
                        <speaker n="2">JACK FLEER:</speaker>
                        <p>The &#x22;office&#x22; that she occupied while you were in
                            office.</p>
                    </sp>
                    <sp who="spk1">
                        <speaker n="1">JAMES E. HOLSHOUSER JR.:</speaker>
                        <p>She went back to nursing school the last quarter we were in Raleigh
                            because I had dragged her out of nursing school and up to Appalachian
                            when we got engaged. So she hadn&#x0027;t got her nursing
                        degree.</p>
                    </sp>
                    <sp who="spk2">
                        <speaker n="2">JACK FLEER:</speaker>
                        <p>Oh I didn&#x0027;t realize she had not completed.</p>
                    </sp>
                    <sp who="spk1">
                        <speaker n="1">JAMES E. HOLSHOUSER JR.:</speaker>
                        <p>Right. So she started then and finished that during the first year we
                            were out of office and later got her masters in nursing in Chapel Hill,
                            commuting back and forth.</p>
                    </sp>
                    <sp who="spk2">
                        <speaker n="2">JACK FLEER:</speaker>
                        <p>My wife did something like that, it is not easy. Did she, let me rephrase
                            this. </p>
                        <milestone n="9393" unit="empty" type="stop" timestamp="00:21:26"/>
                        <milestone n="9206" unit="excerpt" type="start" timestamp="00:21:27"/>
                        <p>You mentioned it was the demands on the time. Were there other aspects of
                            it that made it difficult?</p>
                    </sp>
                    <sp who="spk1">
                        <speaker n="1">JAMES E. HOLSHOUSER JR.:</speaker>
                        <p>Well, you really don&#x0027;t have a personal life during that
                            stretch of time and I think that is one of those things that I may have
                            said before. I learned during the campaign that I could push myself
                            beyond the limits that I thought I could go once as <pb id="p10" n="10"
                            /> long as I knew that it was going to end. That it was a short-term
                            thing. You could see the light at the end of the tunnel whether it was a
                            train or whatever. That win or lose on election day that pace was going
                            to stop and I think that is how we both felt about the four years. That
                            we had to give our best for four solid years because you
                            couldn&#x0027;t run for reelection. You didn&#x0027;t have to
                            worry about that. We were both figuring on going back to Boone. Turned
                            out we didn&#x0027;t. I believe that is what makes that manageable.
                            I think the lack of that is what makes so many marriages go bad in
                            Congress because that just goes on and on and on. I think there are a
                            lot of marriages that would survive had they not had that strain on them
                            in Congress. A lot of marriages have survived but it is because
                            somewhere a long the line I think the couples make a pact that this is
                            something that they are going to agree to do forever.</p>
                    </sp>
                    <sp who="spk2">
                        <speaker n="2">JACK FLEER:</speaker>
                        <p>You in a sense were on call for twenty four hours as governor.</p>
                    </sp>
                    <sp who="spk1">
                        <speaker n="1">JAMES E. HOLSHOUSER JR.:</speaker>
                        <p>That is right.</p>
                    </sp>
                    <sp who="spk2">
                        <speaker n="2">JACK FLEER:</speaker>
                        <p>and in a sense your wife and probably not your daughter since she was so
                            young. Is there anything that can be done about that to make being
                            governor somewhat more possible?</p>
                    </sp>
                    <sp who="spk1">
                        <speaker n="1">JAMES E. HOLSHOUSER JR.:</speaker>
                        <p>I don&#x0027;t think so. I mean you don&#x0027;t have but one guy
                            who is head of the national guard, head of the highway patrol, so to
                            speak, if something is to happen. That is the reason that it never
                            bothered me much about taking a state plane or the highway patrol
                            wherever I was going even if it was for a political event. You
                            can&#x0027;t do that anymore I don&#x0027;t think because people
                            fuss at you. But they didn&#x0027;t fuss then. Jim Martin over did
                            it. He said if there were any politics involved in any part of the trip,
                            the campaign fund had to apy for all of it. Where I didn&#x0027;t
                            even stop at the other extreme of saying that if any part <pb id="p11"
                                n="11"/> of it was government then government could pay for it. No
                            part of it was government I still had to pay for it and I still
                            don&#x0027;t think that was wrong. But I know I would get some
                            disagreement on that today.</p>
                    </sp>
                    <sp who="spk2">
                        <speaker n="2">JACK FLEER:</speaker>
                        <p>So the job just has this sort of full time expectations and
                        necessity.</p>
                    </sp>
                    <sp who="spk1">
                        <speaker n="1">JAMES E. HOLSHOUSER JR.:</speaker>
                        <p>That is right. There are things that you can do. There are times you
                            would have appointments in the afternoons. Somebody would call in and
                            say they had gotten tied up. All of sudden your afternoon opens up and
                            you say lets run down to Pinehurst and play eighteen holes. And there
                            was always something on the desk; the desk was never empty. But you do
                            have the flexibility to get up and do that. And there is nothing says
                            that you have to go to the office at all. It is not in the constitution.
                            Lauch Faircloth when he was secretary of transportation swore you could
                            do the job working three days a week.</p>
                    </sp>
                    <sp who="spk2">
                        <speaker n="2">JACK FLEER:</speaker>
                        <p>I didn&#x0027;t realize that. His job or the
                        governor&#x0027;s?</p>
                    </sp>
                    <sp who="spk1">
                        <speaker n="1">JAMES E. HOLSHOUSER JR.:</speaker>
                        <p>I said transportation. It was when he was in commerce he said that, that
                            the secretary&#x0027;s job only took three days a week. And of
                            course Lauch had been sort of a unique kind of individual all the time
                            any way because he is always, he sort of knew what he could do and what
                            he couldn&#x0027;t do and he just did it.</p>
                    </sp>
                    <sp who="spk2">
                        <speaker n="2">JACK FLEER:</speaker>
                        <p>Would the addition of staff to the governor&#x0027;s office help in
                            making it a more manageable responsibility?</p>
                    </sp>
                    <sp who="spk1">
                        <speaker n="1">JAMES E. HOLSHOUSER JR.:</speaker>
                        <p>I&#x0027;m probably speaking out of ignorance now. It is hard to know
                            how much is coming into the Governor&#x0027;s office that has to get
                            into a funnel somehow and then come back out at the other end. When I
                            was there, Phil Kirk had all the mail sit on his desk that came in there
                            everyday. Some of it just needed an automatic response that <pb id="p12"
                                n="12"/> worked out to a mail processing thing, word processing.
                            Some had to be sent over to a cabinet secretary. He would just sort it
                            out. Then eventually some of it would have to have a letter from me back
                            that he would draft. Most of the time we would just talk through and I
                            didn&#x0027;t even sign it. I had a couple of gals who were good
                            forgers. You know the White House has always had machines. We never
                            signed, I mean I always signed executive orders and things like that. I
                            don&#x0027;t believe more staff is the answer. I think more staff
                            has more potential for games for people to play and other
                            people&#x0027;s agenda to get involved. You have more pull and tug
                            between personalities. I think you need to keep that staff pretty lean
                            and mean. Now the budget office has been added to that staff which makes
                            it look a lot bigger than it is right now as opposed to what it was.
                            That could have been a mistake rather than having it in the Department
                            of Administration.</p>
                    </sp>
                    <sp who="spk2">
                        <speaker n="2">JACK FLEER:</speaker>
                        <p>Moving it over to the Governor&#x0027;s office?</p>
                    </sp>
                    <sp who="spk1">
                        <speaker n="1">JAMES E. HOLSHOUSER JR.:</speaker>
                        <p>Yes. The Department of Administration always had the reputation of being
                            sort of professional and insulated from politics. When they moved it to
                            the governor&#x0027;s office I think it became the
                            governor&#x0027;s tool in the minds of the legislature and made it,
                            not less effective is the wrong word, it just changed how people
                            perceived it.</p>
                    </sp>
                    <sp who="spk2">
                        <speaker n="2">JACK FLEER:</speaker>
                        <p>Although actually prior to that move, the legislature had set up its own
                            fiscal research</p>
                    </sp>
                    <sp who="spk1">
                        <speaker n="1">JAMES E. HOLSHOUSER JR.:</speaker>
                        <p>And I guess if you look at which came first that may have been a response
                            to the legislative move rather than the other way around.</p>
                    </sp>
                    <milestone n="9206" unit="excerpt" type="stop" timestamp="00:28:36"/>
                    <milestone n="9207" unit="excerpt" type="start" timestamp="00:28:37"/>
                    <sp who="spk2">
                        <speaker n="2">JACK FLEER:</speaker>
                        <p>What about the first lady, should she be a publicly paid official?</p>
                    </sp>
                    <sp who="spk1">
                        <speaker n="1">JAMES E. HOLSHOUSER JR.:</speaker>
                        <p>Been a lot of talk about that particularly with Hilary Clinton.</p>
                    </sp>
                    <pb id="p13" n="13"/>
                    <sp who="spk2">
                        <speaker n="2">JACK FLEER:</speaker>
                        <p>Yes. I am talking about of course the governor&#x0027;s first
                        lady.</p>
                    </sp>
                    <sp who="spk1">
                        <speaker n="1">JAMES E. HOLSHOUSER JR.:</speaker>
                        <p>Right. I am inclined to think not. You can make an awfully good argument
                            about the fact that she is on duty full time too. She doesn&#x0027;t
                            have to be. And I think Carolyn Hunt has spent a fair amount of time of
                            the farm down at Rock Ridge particularly during the first Hunt
                            administration. Don&#x0027;t really know that, I just have heard
                            that. I think you can make a pretty strong argument for saying that if
                            it is because her work is there and it has to be done as part of the
                            governor&#x0027;s office that she could be paid out of the
                            governor&#x0027;s office. It may change how she is perceived and may
                            change it for the worse. The strongest arguments you are making for
                            doing that is that it treats her as an individual apart from the
                            governor and says that her role is defensible. You can make that pretty
                            legitimate now.</p>
                    </sp>
                    <sp who="spk2">
                        <speaker n="2">JACK FLEER:</speaker>
                        <p>Would it be politically difficult to make such a recommendation?</p>
                    </sp>
                    <sp who="spk1">
                        <speaker n="1">JAMES E. HOLSHOUSER JR.:</speaker>
                        <p>Actually from a legal and political standpoint, the governor could put
                            her on payroll from the governor&#x0027;s office. It would have to
                            come out of his/her budget. And it wouldn&#x0027;t be anything
                            illegal. You might get a few quips editorially when you first started
                            but I think if the governor just said this lady is working 56 hours on
                            an average a week for the state and she is due to be paid. Now the
                            political side of that is it looks like you are feathering your own nest
                            as a couple. That would be the only down side.</p>
                    </sp>
                    <milestone n="9207" unit="excerpt" type="stop" timestamp="00:31:21"/>
                    <milestone n="9208" unit="excerpt" type="start" timestamp="00:31:22"/>
                    <sp who="spk2">
                        <speaker n="2">JACK FLEER:</speaker>
                        <p>What were the most difficult times you had personally as governor?</p>
                    </sp>
                    <sp who="spk1">
                        <speaker n="1">JAMES E. HOLSHOUSER JR.:</speaker>
                        <p>We went through a stage, it seemed like to me about the last six months,
                            where it seemed like the media got much move inclined to not give you
                            the benefit of the doubt, that they assumed you were guilty until proven
                            innocent kind of thing and decisions got questioned.</p>
                    </sp>
                    <pb id="p14" n="14"/>
                    <sp who="spk2">
                        <speaker n="2">JACK FLEER:</speaker>
                        <p>Got questionable?</p>
                    </sp>
                    <sp who="spk1">
                        <speaker n="1">JAMES E. HOLSHOUSER JR.:</speaker>
                        <p>Got questioned. I mean the head of the highway patrol got stopped by one
                            of his own folks for speeding coming back from Asheville. Some thought I
                            should fire him but I didn&#x0027;t. And that kind of thing just
                            made it hard. I found early on, this is getting a little on the side of
                            it when I told the media I wasn&#x0027;t going to answer any
                            questions starting with if because we cross the bridges, as they came.
                            That cut off about three-fourths of questions that they normally ask.
                            One said to me later we use to sit up nights drinking beer just trying
                            to think how you could reword these questions trying to get the answers
                            without saying if. But most of the times you don&#x0027;t have to
                            cross those bridges, you don&#x0027;t try to guess what is going to
                            happen here and say if this happens I will do this and if this happens I
                            will do that. That was particular true in trying to deal where the
                            legislature is concerned. You couldn&#x0027;t use that vehicle to
                            say that if the legislature will do this then I&#x0027;d be willing
                            to give on this. That is better said in private anyway.</p>
                    </sp>
                    <sp who="spk2">
                        <speaker n="2">JACK FLEER:</speaker>
                        <p>In negotiations with the legislature publicly. Any other difficult
                        times?</p>
                    </sp>
                    <sp who="spk1">
                        <speaker n="1">JAMES E. HOLSHOUSER JR.:</speaker>
                        <p>Well the last six months looking back I know my hemoglobin was dropping
                            because of the kidney disease and I was more tired than I realized
                            physically. I had that accident right after I left office and they came
                            in and took a quick blood run and saw the hemoglobin and thought that I
                            had some internal bleeding going on and got scared to death. At the same
                            time looking back I don&#x0027;t think the schedule slowed down a
                            bit because I have been very much involved in trying to help Gerry Ford.
                            Of course once the election is over, you start trying to focus on what
                            you are going to do with yourself and also trying to make sure that the
                            people in administration got help if they needed it in terms of locating
                            out of the government. Because I told them that Bob Scott had asked all
                                <pb id="p15" n="15"/> of his cabinet people to resign as a courtesy
                            to me before he went in. I felt like that was a good thing and we ought
                            to do the same thing. So everybody in the governor&#x0027;s office,
                            except the girls who had been there forever running the machines and
                            stuff, were pretty well set by the time the administration was over.
                            Almost all but a few exceptions. The cabinet people were all ready to
                            get home. But I think the time of losing the primary, Ford losing to
                            Reagan in the primary, that didn&#x0027;t have anything to do with
                            North Carolina state government. It hurt a good bit but I thought we
                            were going to win kosher.</p>
                    </sp>
                    <sp who="spk2">
                        <speaker n="2">JACK FLEER:</speaker>
                        <p>So it was a personal and political disappointment.</p>
                    </sp>
                    <sp who="spk1">
                        <speaker n="1">JAMES E. HOLSHOUSER JR.:</speaker>
                        <p>Yes and I had put out and pulled out all the stops in trying to help.
                            That was really disappointing.</p>
                    </sp>
                    <milestone n="9208" unit="excerpt" type="stop" timestamp="00:35:31"/>
                    <milestone n="9209" unit="excerpt" type="start" timestamp="00:35:32"/>
                    <sp who="spk2">
                        <speaker n="2">JACK FLEER:</speaker>
                        <p>What is the most satisfying thing about being governor?</p>
                    </sp>
                    <sp who="spk1">
                        <speaker n="1">JAMES E. HOLSHOUSER JR.:</speaker>
                        <p>Well I told people that it probably is pulling the car right up in front
                            of Reynolds Coliseum or Kenan Stadium and getting out and walking in.
                            Actually that is not so; although it is pretty satisfying. I think being
                            able to get some things done that I wanted to do as a legislator but
                            couldn&#x0027;t which is the reason I ran to start with. I
                            didn&#x0027;t really run just to be the first Republican governor,
                            given that little clip about I thought they needed me and I think, that
                            part was just really good. Got to do a lot of travelling, saw a lot of
                            the country, going to governors&#x0027; conferences. The Irish
                            Government invited the governors to the First Church bicentennial. Being
                            part of the bicentennial was also a very special thing that nobody but
                            me got to do as governor. That had a lot of meaning particularly the
                            time in the last year of the administration when you were moving into
                            serious lame duck status. That was something that was energizing in
                            itself and I really enjoyed that. We had the national
                            governor&#x0027;s conference in Hershey a week before the <pb
                                id="p16" n="16"/> bicentennial and all the governors went down to
                            Washington to see Queen Elizabeth out on her boat that she had pulled
                            over and got back in town to do the things in Raleigh. That was a really
                            good part.</p>
                    </sp>
                    <sp who="spk2">
                        <speaker n="2">JACK FLEER:</speaker>
                        <p>Some perquisites of the position that offset the lack of privacy and the
                            demands of time.</p>
                    </sp>
                    <sp who="spk1">
                        <speaker n="1">JAMES E. HOLSHOUSER JR.:</speaker>
                        <p>Yes. They are because you have got all of these planes and helicopters
                            and patrol cars that you can use to go places. You have got things that
                            people do for you because of the office, not because of you, because of
                            the office that are just always very genuine. I am not talking about the
                            &#x2026;sort of giving you themselves in a way just makes you feel
                            good. It was satisfying in being able to say let&#x0027;s do this
                            and seeing it happens. Because if you say it to the legislature
                            let&#x0027;s do this you have got to go and persuade at least 61
                            people in the house and 26 in the Senate to do that and it still may not
                            come out like you want it depending on how it gets implemented.</p>
                    </sp>
                    <sp who="spk2">
                        <speaker n="2">JACK FLEER:</speaker>
                        <p>But you have numerous occasions you are implying where you could say we
                            are going to do it and it happens?</p>
                    </sp>
                    <sp who="spk1">
                        <speaker n="1">JAMES E. HOLSHOUSER JR.:</speaker>
                        <p>That is right.</p>
                    </sp>
                    <sp who="spk2">
                        <speaker n="2">JACK FLEER:</speaker>
                        <p>Policy and governmental.</p>
                    </sp>
                    <sp who="spk1">
                        <speaker n="1">JAMES E. HOLSHOUSER JR.:</speaker>
                        <p>Well, and little things. I had always thought it was crazy to have new
                            license plates every year and so now you get that little sticker and of
                            course that cuts down on the number of plates that were made by the
                            inmates. The correctional people were saying what are we going to do
                            with all those people all the day and there is always the argument
                            against that. I thought we had a disjointed way of handling the budget
                            in <pb id="p17" n="17"/> some ways. We have changed some of that. I
                            wanted to do a program budget. We did that one year and the legislators
                            just hated it.</p>
                    </sp>
                    <milestone n="9209" unit="excerpt" type="stop" timestamp="00:39:30"/>
                    <milestone n="9394" unit="empty" type="start" timestamp="00:39:31"/>
                    <sp who="spk2">
                        <speaker n="2">JACK FLEER:</speaker>
                        <p>I remember that.</p>
                    </sp>
                    <sp who="spk1">
                        <speaker n="1">JAMES E. HOLSHOUSER JR.:</speaker>
                        <p>I still think that is a good thing but I don&#x0027;t think you will
                            ever see the legislature relinquish their right to line item.</p>
                    </sp>
                    <sp who="spk2">
                        <speaker n="2">JACK FLEER:</speaker>
                        <p>I was thinking the other day I don&#x0027;t know whether I mentioned
                            to you before but I am trying to accumulate a list of the
                            &#x22;firsts&#x22; each governor had done. I put down that you
                            were the first and the last governor to ever have a program budget.</p>
                    </sp>
                    <sp who="spk1">
                        <speaker n="1">JAMES E. HOLSHOUSER JR.:</speaker>
                        <p>That is right. I believe you have got that right. It will have to be
                            after everybody who was there at the time has died before anybody would
                            even try that again.</p>
                    </sp>
                    <sp who="spk2">
                        <speaker n="2">JACK FLEER:</speaker>
                        <p>And there is no such time, or not likely anyway. Well Governor we have
                            reached the end of what has been a wonderful set of interviews. I feel
                            like you have made a real contribution to our understanding of the
                            office and I know you made a real contribution as Governor of North
                            Carolina. I thank you very much.</p>
                    </sp>
                    <sp who="spk1">
                        <speaker n="1">JAMES E. HOLSHOUSER JR.:</speaker>
                        <p>Well I told you before and I will say it again. I have enjoyed it and the
                            visiting has been good just with you personally. Governors and past
                            governors always like to talk about how great they were and that part
                            has been fun too.</p>
                    </sp>
                    <sp who="spk2">
                        <speaker n="2">JACK FLEER:</speaker>
                        <p>Thanks a lot. <note type="comment"> [Recorder is turned off and then back
                                on.] </note></p>
                    </sp>
                    <pb id="p18" n="18"/>
                    <milestone n="9394" unit="empty" type="stop" timestamp="00:40:42"/>
                    <milestone n="9210" unit="excerpt" type="start" timestamp="00:40:43"/>
                    <sp who="spk1">
                        <speaker n="1">JAMES E. HOLSHOUSER JR.:</speaker>
                        <p>At that point you had a fairly well defined model of when&#x2014;of
                            people who came out of the mountains and went way back as Republicans,
                            but for different reasons than those who came in later. It
                            wasn&#x0027;t just the mountains; you go down to Wilkes and Yadkin
                            counties. You had Sampson County with its own peculiar thing down east.
                            You had the people who came into the party from the
                            north&#x2014;they moved into the state as industry came in.
                            That&#x0027;s one of the legacies that Luther Hodges and Terry
                            Sanford started; they brought in industry, and they brought Republicans
                            in, too. Not that that&#x0027;s what they intended <note
                                type="comment"> [Laughter] </note>. Then you had a group of people
                            who had a harder edge on their politics than others of us did. Today
                            it&#x0027;s a whole different set of circumstances.
                            You&#x0027;ve got social conservatives and economic conservatives;
                            you&#x0027;ve got Libertarians. We don&#x0027;t have many
                            liberal Republicans in North Carolina. You&#x0027;ve got a few, but
                            the line moves generally from the middle [to the] right. That tends to
                            be true of the Democrats as well, except that they move from the middle
                            left, because most of the conservative Democrats have switched. As a
                            result, it gets much harder for a moderate in either party to be elected
                            statewide. That&#x0027;s probably not particularly good, in that I
                            think that the state tends to be moderate to moderate-conservative by
                            its nature. The country has become more conservative, and I think North
                            Carolina has become more conservative since I was governor. Since the
                            sixties just a tide of things, and I&#x0027;m not sure I know why
                            all that was. I expect that a certain amount of it had to do with
                            Reagan&#x0027;s four&#x2014;eight <pb id="p19" n="19"/> years in
                            Washington. I think regardless of whether you are for or against Ronald
                            Reagan or his approach to government. I think he changed the agenda in
                            Washington from what it had been since the thirties. All of a sudden it
                            was just a whole bunch of different questions that were on the table. It
                            wasn&#x0027;t as much a matter of expanding government as it was a
                            matter of how much you were going to retrench it, so to speak.</p>
                    </sp>
                    <milestone n="9210" unit="excerpt" type="stop" timestamp="00:43:49"/>
                    <milestone n="9395" unit="empty" type="start" timestamp="00:43:50"/>
                    <sp who="spk2">
                        <speaker n="2">JACK FLEER:</speaker>
                        <p>How important was it for you to control the party itself? You mentioned
                            earlier the well-publicized row over the selection of the state chair,
                            and obviously you wanted to have your chair in there. How important was
                            that effort to control the organization of the party?</p>
                    </sp>
                    <sp who="spk1">
                        <speaker n="1">JAMES E. HOLSHOUSER JR.:</speaker>
                        <p>Probably not nearly as much as it appeared from the effort that went into
                            getting it; more personality conflicts there between the state
                            chairman&#x0027;s office and the people who were involved in the
                            administration. I&#x0027;m not sure I&#x0027;d do it again,
                            looking back. It&#x0027;s hard to say, because you don&#x0027;t
                            know. Sometimes memory tends to get a little blurred as to exactly why
                            you decided this needed to be done. <note type="comment"> [Recorder is
                                turned off and then back on.] </note>
                        </p>
                    </sp>
                    <milestone n="9395" unit="empty" type="stop" timestamp="00:44:56"/>
                    <milestone n="9211" unit="excerpt" type="start" timestamp="00:44:57"/>
                    <sp who="spk2">
                        <speaker n="2">JACK FLEER:</speaker>
                        <p>&#x2026;Other than having in the chair a person who was sympathetic
                            to your administration&#x2014;or compatible, let&#x0027;s say,
                            to your administration and your way of leading the Republican party,
                            what other aspects of the party organization and resources were you able
                            to try to control as governor?</p>
                    </sp>
                    <sp who="spk1">
                        <speaker n="1">JAMES E. HOLSHOUSER JR.:</speaker>
                        <p>Of course, at that time the party was a different creature than it is
                            now. You didn&#x0027;t have the tax check-off, or a significant
                            source of on-going funds. So the party organization as such really
                            wasn&#x0027;t much of an organization as such. It was almost totally
                            volunteers, including the chairman. From my recollection, when I became
                            state chairman <pb id="p20" n="20"/> in the sixties, we had one
                            employee, secretary who got the mailings out, and that sort of thing. We
                            had either a one office or a two-office suite in the Carolina Hotel in
                            Raleigh. It was just a minimal, minimal budget; the party was
                            &#x24;50,000 in debt, which was enormous for that time. We spent two
                            years just getting that paid off. That is the hardest money you ever
                            raise because it didn&#x0027;t go into anybody&#x0027;s
                            campaign. Campaign techniques and the party&#x0027;s ability to
                            function have come a long way since then in terms of being able to use
                            direct mail, for fundraising being able to&#x2026;</p>
                    </sp>

                    <p>
                        <note anchored="yes">
                            <p>[END OF TAPE 1, SIDE A]</p>
                        </note>
                    </p>
                </div2>
                <div2 id="tape1-b" n="1-B" type="tape_side">
                    <head>[TAPE 1, SIDE B]</head>
                    <note anchored="yes">
                        <p>[START OF TAPE 1, SIDE B]</p>
                    </note>

                    <sp who="spk1">
                        <speaker n="1">JAMES E. HOLSHOUSER JR.:</speaker>
                        <p>&#x2026;So both parties are better funded now than they were in the
                            sixties, I think. It&#x0027;s usually easier for the party
                            that&#x0027;s in control of the governor&#x0027;s office, to
                            have the governor&#x0027;s presence help the party draw a crowd at
                            fundraising dinners and that sort of thing. But both parties have gotten
                            much more sophisticated (Republicans may still be a little more
                            sophisticated) in terms of fundraising and campaign techniques. <note
                                type="comment"> [Recorder is turned off and then back on.] </note>
                        </p>
                    </sp>
                    <sp who="spk2">
                        <speaker n="2">JACK FLEER:</speaker>
                        <p>We were discussing the ability of the governor to control the resources
                            of the party, and you were saying that parties are much better off
                            today, and that the Republican party might well be more sophisticated
                            than the Democrats.</p>
                    </sp>
                    <sp who="spk1">
                        <speaker n="1">JAMES E. HOLSHOUSER JR.:</speaker>
                        <p>And there&#x0027;s another factor in this, too. When a new
                            administration comes in, invariably the people who had been involved in
                            the campaign and got their adrenaline running come to Raleigh. Well,
                            that political adrenaline doesn&#x0027;t automatically turn off when
                            they become a state employee. With both parties having their state
                            headquarters in <pb id="p21" n="21"/> Raleigh, I suspect it&#x0027;s
                            pretty usual that some of those people end up volunteering for things on
                            nights and weekends with the party. If you watch campaigns in the
                            off-year elections, you will see people moving in and out of the
                            government fairly frequently into campaigns; somebody will leave this
                            position in this department and go into the campaign for Joe Blow
                            who&#x0027;s running for Congress, or the US Senate, or something.
                            After the elections, however, he&#x0027;s right back over
                            there&#x2014;particularly if they lost.</p>
                    </sp>
                    <milestone n="9211" unit="excerpt" type="stop" timestamp="00:49:15"/>
                    <milestone n="9212" unit="excerpt" type="start" timestamp="00:49:16"/>
                    <sp who="spk2">
                        <speaker n="2">JACK FLEER:</speaker>
                        <p>How important would an ability to be re-elected have been in your control
                            of the party? In other words, would your relationship with the party
                            have been different if you had been able to be re-elected?</p>
                    </sp>
                    <sp who="spk1">
                        <speaker n="1">JAMES E. HOLSHOUSER JR.:</speaker>
                        <p>Yes, I think so. I know I agreed to co-chair the drive for the
                            constitutional amendment on second terms, partly because I felt like it
                            would keep the governor from being a lame duck while still in office.
                            That goes right over into activities with the party. If the governor is
                            getting ready to run for re-election, he probably has a stronger tie,
                            although he probably shouldn&#x0027;t, if he faces a primary in
                            particular. If he doesn&#x0027;t that&#x0027;s a different
                            matter. But you don&#x0027;t find many governors or many presidents
                            who don&#x0027;t control the party at the level that they are
                            involved in. Now sometimes you have states where there&#x0027;s no
                            governor and have a United States senator. They&#x0027;ll be the
                            ones to control the party, although it&#x0027;s been my experience
                            that people in Washington don&#x0027;t want to be bothered with the
                            state party.</p>
                    </sp>
                    <milestone n="9212" unit="excerpt" type="stop" timestamp="00:50:39"/>
                    <milestone n="9213" unit="excerpt" type="start" timestamp="00:50:40"/>
                    <sp who="spk2">
                        <speaker n="2">JACK FLEER:</speaker>
                        <p>Was that your experience with Senator Helms?</p>
                    </sp>
                    <sp who="spk1">
                        <speaker n="1">JAMES E. HOLSHOUSER JR.:</speaker>
                        <p>Yes. Some of his supporters in-state were involved and interested, and
                            have been since that time. At the same time, the role of the party has
                            been diluted so badly by the formation of PACs&#x2014;and when I say
                            PACs I mean political PACs, not R. J. Reynolds <pb id="p22" n="22"/>
                            PACs. David Broder has written column after column on how the important
                            parties are not being treated right, and that the system is being hurt
                            by that. I think he&#x0027;s right, and that has carried over into
                            the Congress with the change of the seniority system. The party as a
                            vehicle in Congress quit being nearly as effective, because now
                            you&#x0027;ve got umpteen zillion caucuses up there and
                            they&#x0027;ve all got different agendas. So trying to build a
                            consensus is just a lot harder than when Sam Rayburn and Lyndon Johnson
                            were running things.</p>
                    </sp>
                    <sp who="spk2">
                        <speaker n="2">JACK FLEER:</speaker>
                        <p>You mentioned PACs, and you were talking primarily about what you
                            referred to as political PACs. I guess this means PACs of political
                            leaders rather than PACs of industrial groups or labor unions, or
                            whatever they might be. Do you think that&#x0027;s become an
                            important factor in North Carolina politics. Was it whenever you were
                            governor?</p>
                    </sp>
                    <sp who="spk1">
                        <speaker n="1">JAMES E. HOLSHOUSER JR.:</speaker>
                        <p>It was nonexistent when I was governor; it&#x0027;s very important
                            today. I mean, you see the president pro tempore of the senate, you see
                            the speaker of the house, you see several members of the house and
                            senate having separate PACs. They get people to give money to that,
                            which they can either use in their own campaigns or in somebody
                            else&#x0027;s campaign. It definitely allows money to become the
                            vehicle through which individuals gain political power within the
                            spectrum through which they are working at the moment. I suspect
                            it&#x0027;s much easier now for a political leader in the
                            legislature to stay in that position of leadership than it ever has been
                            in years past. Of course, we had traditions for a long
                            time&#x2014;you weren&#x0027;t speaker but one term, for
                            example. That changed during Mr. Ramsey&#x0027;s time, and I think
                            it&#x0027;s changed for the worse, probably.</p>
                    </sp>
                    <pb id="p23" n="23"/>
                    <sp who="spk2">
                        <speaker n="2">JACK FLEER:</speaker>
                        <p>Many people say it&#x0027;s changed at least in part&#x2014;maybe
                            a major part&#x2014;because the governor can now serve a longer
                            term.</p>
                    </sp>
                    <sp who="spk1">
                        <speaker n="1">JAMES E. HOLSHOUSER JR.:</speaker>
                        <p>That&#x0027;s when it happened. When gubernatorial succession came in
                            the legislature decided if they&#x0027;re going to do it on the
                            executive side we ought to do it on the legislative side, or
                            we&#x0027;ll be at a disadvantage.</p>
                    </sp>
                    <sp who="spk2">
                        <speaker n="2">JACK FLEER:</speaker>
                        <p>But you said it may well have been for the worse. Could you talk about
                            that a little bit?</p>
                    </sp>
                    <sp who="spk1">
                        <speaker n="1">JAMES E. HOLSHOUSER JR.:</speaker>
                        <p>Well, I believe that to the extent we&#x0027;ve moved away from a
                            true citizen legislature, it&#x0027;s removing the possibility for a
                            great many people who would be good legislators to be able to run and
                            serve. It&#x0027;s not just what we&#x0027;ve been talking
                            about. It&#x0027;s also the length of terms and the amount of
                            service between them. I was talking to a legislator this past week, and
                            I think she said she was on thirteen interim committees and commissions.
                            She was spending about half of every week in Raleigh.</p>
                    </sp>
                    <sp who="spk2">
                        <speaker n="2">JACK FLEER:</speaker>
                        <p>When the legislature is not in session, you mean.</p>
                    </sp>
                    <sp who="spk1">
                        <speaker n="1">JAMES E. HOLSHOUSER JR.:</speaker>
                        <p>That&#x0027;s right, when the legislature&#x0027;s not in
                            session. I mean, you can&#x0027;t hold a regular job back in your
                            home county and be in the legislature anymore. Most lawyers
                            can&#x0027;t do that. When I was in the legislature, I went to
                            Raleigh five months and then was home the rest of the two years, with
                            rare exceptions. We had probably twenty-five percent of the legislature
                            who were lawyers. Right now we don&#x0027;t have enough lawyers to
                            staff a judiciary committee, even though you&#x0027;ve got bill
                            drafting going on and even though you&#x0027;ve got draftsmen to
                            help individual legislators who want to write amendments. When
                            you&#x0027;ve got someone sitting down, scribbling one out and
                            sending it up on the floor on the spur of the moment or in committee,
                            the absence of lawyers who <pb id="p24" n="24"/> have an understanding
                            about the law and the general statutes causes the legislative process to
                            suffer. That&#x0027;s my own particular perspective on it. But
                            it&#x0027;s keeping out not just lawyers, but a lot of people who
                            would be good senators. I doubt, for instance, that Archie Davis would
                            have felt like he could have afforded the time to be in the senate as he
                            did when he ran back in the 1960s. And so you end up having legislators
                            who have to fit a certain sort of generic situation career-wise before
                            they can run for the legislature.</p>
                    </sp>
                    <sp who="spk2">
                        <speaker n="2">JACK FLEER:</speaker>
                        <p>Have that dispensable time that they otherwise would not have?</p>
                    </sp>
                    <sp who="spk1">
                        <speaker n="1">JAMES E. HOLSHOUSER JR.:</speaker>
                        <p>That&#x0027;s right. It doesn&#x0027;t mean that there
                            aren&#x0027;t some good people there, and there are certain
                            companies that encourage employees to run if they want to. In fact,
                            that&#x0027;s part of not only their need to be publicly involved
                            but it also means that their approach to things gets heard. You have
                            teachers who run and take leaves of absence; you have university
                            employees who run and take leaves of absence, and some of them are very
                            articulate. Like Paul Luebke from Durham, who teaches over at UNC-G. His
                            philosophy and mine are not the same at all, but to the extent that the
                            legislature needs good minds, that&#x0027;s an example of a good
                            mind.</p>
                    </sp>
                    <sp who="spk2">
                        <speaker n="2">JACK FLEER:</speaker>
                        <p>In terms of the legislature&#x0027;s relationship with the governor,
                            many would argue that this makes the legislature a more effective
                            partner with the governor. In that sense, it provides a kind of
                            restraint on excessive executive power. Is that a fair statement?</p>
                    </sp>
                    <sp who="spk1">
                        <speaker n="1">JAMES E. HOLSHOUSER JR.:</speaker>
                        <p>It could be. It&#x0027;s a little. It may be that my whole thinking
                            about this is simply an intellectual effort to hold back the wave of the
                            future. Modern society has gotten much more complex. It may be that
                            volunteers can&#x0027;t deal with those problems anymore; that
                            there&#x0027;s not enough time to stay up to snuff. Some of
                            them&#x2014;you take Betsy Cochran. She doesn&#x0027;t have a
                            job she has to go to everyday, but she works almost <pb id="p25" n="25"
                            /> full time on issues and keeping up. That&#x0027;s the kind of
                            legislator who&#x0027;s just invaluable. But then you only have so
                            many of those. The legislature has not changed in one regard; about ten
                            percent do most of the work. That&#x0027;s the way it is in most
                            organizations. That probably isn&#x0027;t going to change,
                            regardless.</p>
                    </sp>
                    <milestone n="9213" unit="excerpt" type="stop" timestamp="00:59:55"/>
                    <milestone n="9396" unit="empty" type="start" timestamp="00:59:56"/>
                    <sp who="spk2">
                        <speaker n="2">JACK FLEER:</speaker>
                        <p>Let&#x0027;s sort of reflect on this idea regarding the role of the
                            governor and his relationship with the political party. Has the
                            Republican Party in North Carolina evolved sort of the way you
                            anticipated it would when you were governor, or has it not done as
                            well&#x2014;or gone in different directions&#x2014;from what you
                            thought?</p>
                    </sp>
                    <sp who="spk1">
                        <speaker n="1">JAMES E. HOLSHOUSER JR.:</speaker>
                        <p>Let me back up on one thought. I think the Republicans have not accepted
                            the Democrat tradition of having the governor simply name the state
                            chairman. Legally it&#x0027;s done by the state executive committee.
                            But when Jim Hunt says who he wants to be chairman, that&#x0027;s
                            who becomes chairman. Jim Martin and I both had to fight for our
                            selections as chairman, and that&#x0027;s probably just the
                            difference in the backgrounds. How the parties are run. Moving on to
                            your other question, it&#x0027;s a little hard to know&#x2026;
                                <note type="comment"> [Recorder is turned off and then back on.]
                            </note></p>
                    </sp>
                    <milestone n="9396" unit="empty" type="stop" timestamp="01:01:21"/>
                    <milestone n="9214" unit="excerpt" type="start" timestamp="01:01:22"/>
                    <sp who="spk1">
                        <speaker n="1">JAMES E. HOLSHOUSER JR.:</speaker>
                        <p>Anybody who thinks about it for very long realizes that if
                            you&#x0027;re going to have a viable party, you&#x0027;ve got to
                            have a big enough umbrella to have varying philosophies under that
                            umbrella. If you don&#x0027;t, you&#x0027;re just not big enough
                            to win. We still have a coalition put together that&#x0027;s not
                            that different than it was in the sixties and early seventies.
                            It&#x0027;s just gotten larger. You&#x0027;ve got the business
                            Republicans. You&#x0027;ve got the country club
                            Republicans&#x2014;and there&#x0027;s a lot of overlap there.
                            You&#x0027;ve got the Populist Republicans who grew up in the
                            mountains; and rural Republicans, who have a mixture of Populism and
                            social conservatism. You also have a group of intellectual <pb id="p26"
                                n="26"/> conservatives. I guess if I&#x0027;m fair I say that it
                            concerns me when either party gets dominated by intellectuals who never
                            run for office, have never served, and who haven&#x0027;t had to go
                            through the ordeal of trying to get elected and trying to build
                            consensus for ideals as opposed to just getting out and fighting for
                            them. There&#x0027;s a lot more subtlety in how you build consensus
                            than trying to beat the other guy on the head with your ideas. That
                            makes challenges in both parties. One of the reporters told me one time
                            that the Democrats have their lettuce pickers and the Republicans have
                            their Neanderthals, and it always makes for interesting conventions. I
                            guess that&#x0027;s probably true.</p>
                    </sp>
                    <sp who="spk2">
                        <speaker n="2">JACK FLEER:</speaker>
                        <p>And good reporting, probably. <note type="comment"> [Laughter]
                        </note></p>
                    </sp>
                    <sp who="spk1">
                        <speaker n="1">JAMES E. HOLSHOUSER JR.:</speaker>
                        <p>That&#x0027;s right.</p>
                    </sp>
                    <sp who="spk2">
                        <speaker n="2">JACK FLEER:</speaker>
                        <p>Has the party made as much progress here in the 1990s as you would have
                            expected in the 1970s?</p>
                    </sp>
                    <sp who="spk1">
                        <speaker n="1">JAMES E. HOLSHOUSER JR.:</speaker>
                        <p>More, I think. I always thought the hardest thing to do would be to get a
                            majority in the legislature. Frankly, when I was talking with the state
                            chairman about one o&#x0027;clock in the morning on election night
                            in &#x0027;94 and he told me we were going to take the House, I just
                            really couldn&#x0027;t believe it. I told a lot of people in Raleigh
                            that I thought that was a much more important step as a party than if I
                            had been elected governor. It might not have happened if I had not
                            gotten elected governor. You never know about these things. I think the
                            state is a two party system. It&#x0027;s not to parity on
                            registration yet, but that&#x0027;s about the only place. The
                            delegation in Washington is split right down the middle, while
                            we&#x0027;ve got two Republican senators now. The fact that the
                            state can elect Terry Sanford and Jesse Helms to the Senate says that
                            it&#x0027;s still a state that you can&#x0027;t exactly put <pb
                                id="p27" n="27"/> your finger on. I think that&#x0027;s sort of
                            intriguing, because it&#x0027;s still up for grabs for idealists all
                            the time.</p>
                    </sp>
                    <sp who="spk2">
                        <speaker n="2">JACK FLEER:</speaker>
                        <p>And that&#x0027;s healthy for the state?</p>
                    </sp>
                    <sp who="spk1">
                        <speaker n="1">JAMES E. HOLSHOUSER JR.:</speaker>
                        <p>I think it is.</p>
                    </sp>
                    <sp who="spk2">
                        <speaker n="2">JACK FLEER:</speaker>
                        <p>Certainly part of what you hoped for when you started building the
                            two-party system back in the 1960s?</p>
                    </sp>
                    <sp who="spk1">
                        <speaker n="1">JAMES E. HOLSHOUSER JR.:</speaker>
                        <p>That&#x0027;s right, because it wasn&#x0027;t to build a one
                            party Republican state, it was to have a state where people got to
                            listen to different ideas. I have to admit, though, that listening to
                            them in thirty-second commercials is not the best way to get them. I
                            also know that as much as that gets criticized, if you do a
                            thirty-minute talk to the people&#x2014;you look at the Nielsens on
                            that and the numbers go way down in terms of people who will watch that
                            long.</p>
                    </sp>
                    <sp who="spk2">
                        <speaker n="2">JACK FLEER:</speaker>
                        <p>That&#x0027;s amazing, and somewhat disappointing. </p>
                        <milestone n="9214" unit="excerpt" type="stop" timestamp="01:06:34"/>
                        <milestone n="9215" unit="excerpt" type="start" timestamp="01:06:35"/>
                        <p>When you look back over your administration as Governor of North
                            Carolina, how much were you in control of the administration?</p>
                    </sp>
                    <sp who="spk1">
                        <speaker n="1">JAMES E. HOLSHOUSER JR.:</speaker>
                        <p>Well, it&#x0027;s a little hard looking back to know for sure. We did
                            some things that were deliberately set up to keep control
                            programmatically in that we had what we called a policy council where
                            all the legislative proposals had to sift before they went to the
                            legislature. The budget, too. I think I talked about this before, but
                            I&#x0027;ll get on with it and say that I might take a different
                            view today, but probably not. I took the view that these people [Council
                            of State members] were constitutionally elected by the people, and they
                            were the ones that had constitutional responsibilities. The place where
                            that runs into joint interests is with the Department of Public
                            Instruction, because you can&#x0027;t be governor <pb id="p28"
                                n="28"/> and not have an interest in public schools. And yet the
                            superintendent is constitutionally elected and the governor appoints the
                            state board. You&#x0027;ve got this crazy government system
                            that&#x0027;s&#x2014;well, dysfunctional is the wrong word, but
                            you work against that system instead of having that system help you. In
                            terms of the people in the cabinet, I think for the most part the people
                            worked as a team. You certainly had people with different ideas. Jim
                            Harrington, for example, thought the inventory tax ought to be repealed.
                            People in his department thought that, and frankly I thought that, too.
                            But I told him I didn&#x0027;t want him over there in the
                            legislature lobbying for that because we&#x0027;d taken a firm
                            &#x2018;no tax repeals&#x2019; stand. We just sort of
                            stonewalled the whole thing for fear that the legislature would start
                            trying to decide about taking tax cuts. The first thing you knew the
                            whole budget&#x0027;s blown. Since the Advisory Budget Commission
                            had recommended some onetime tax rebate, it was a live issue at the
                            time. We had four different secretaries of transportation in four years,
                            which is not a good way to do things but is the way things worked out. I
                            suspect that people were hired that the governor&#x0027;s office
                            didn&#x0027;t know about. That probably still goes on today. Joe
                            Pell is probably the best of anybody of keeping his fingers on that.
                            You&#x0027;ve got to have a certain amount of confidence in the
                            people that you put in cabinet positions. At the same time, none of ours
                            had ever had any government experience in the state government. It
                            probably meant that our administration was more cautious than most
                            administrations, and less aggressive in some ways. Frankly, when I look
                            back at accomplishments that you can check off, it&#x0027;s
                            remarkably good given the fact that we hadn&#x0027;t been there and
                            we were trying not to make any more mistakes than a naive new
                            administration had the potential to. We didn&#x0027;t turn the
                            secretaries loose with everything, so to speak.</p>
                    </sp>
                    <pb id="p29" n="29"/>
                    <sp who="spk2">
                        <speaker n="2">JACK FLEER:</speaker>
                        <p>You mentioned the policy council, and then the sort of control in so far
                            as you could over appointments. Would those be the two principal
                            mechanisms that enabled you to maintain some kind of control, or were
                            there others?</p>
                    </sp>
                    <sp who="spk1">
                        <speaker n="1">JAMES E. HOLSHOUSER JR.:</speaker>
                        <p>That&#x0027;s the main thing. We had a cabinet social about once a
                            month that&#x0027;d rotate from house to house. Never had it at the
                            mansion as I recall. Each cabinet member would be host. I think that was
                            very important, looking back, in terms of building that sense of
                            camaraderie and teamwork. So it wasn&#x0027;t a sense of
                            control&#x2014;governor&#x0027;s office versus the
                            departments&#x2014;as much as it was everybody feeling like they
                            were part of the same team. You didn&#x0027;t have circumstances for
                            the most part where a cabinet member says, &#x2018;I think we ought
                            to do this,&#x2019; and the governor saying, &#x2018;No,
                            we&#x0027;re not going to.&#x2019; It was pretty
                            much&#x2014;it wasn&#x0027;t an administration that had
                            seriously different points of view. So there wasn&#x0027;t a lot of
                            pull and tug. You had some things on personnel that were either changes
                            that needed to be made or cabinet members who didn&#x0027;t feel the
                            time was right for them.</p>
                    </sp>
                    <sp who="spk2">
                        <speaker n="2">JACK FLEER:</speaker>
                        <p>What about beyond the administration to the state government? You were
                            obviously in a position as the first Republican governor to come into a
                            governing structure&#x2014;a bureaucracy, if I may use that
                            term&#x2014;where people had gone about their business to the tune
                            of Democratic governors. Did you feel that you could control that larger
                            government?</p>
                    </sp>
                    <sp who="spk1">
                        <speaker n="1">JAMES E. HOLSHOUSER JR.:</speaker>
                        <p>Well, I went in nervous about that because of an experience I had had in
                            the previous four years sitting in the Oval Office. President Nixon
                            would give a direct order to the secretary of HEW, and her field man in
                            Wilmington six weeks later would say just the opposite. That sort of
                            reminded you of Eisenhower&#x0027;s statement that &#x2018;You
                            push the <pb id="p30" n="30"/> button on the desk and wonder if it goes
                            anywhere; if there&#x0027;s a wire under there or not.&#x2019; I
                            had the good fortune of having at least the key department and division
                            heads have a chance to see me in the legislature. I knew most of the
                            budget people on a first-name basis. I think there was a lot of
                            nervousness, despite the fact that I&#x0027;d been to the state
                            employees&#x0027; convention, and did the same way with the NCAE
                            folks. I did more than just put in an appearance. The day after the
                            election at the news conference I told the reporters that state
                            employees&#x2014;unless they had gotten their jobs through total
                            politics&#x2014;didn&#x0027;t have anything to worry about. I
                            had one of our economic developers tell me somewhere in the third or
                            fourth year that he was in New York on an industry recruiting trip on
                            the day of the election. Well, his wife called him about one
                            o&#x0027;clock and said, &#x2018;You better get your tail home.
                            We&#x0027;ve done elected a damn Republican!&#x2019; <note
                                type="comment"> [Laughter] </note> So there had to be a certain
                            amount of that. Newspapers had these stories about state employees
                            running out to the parking lot the next morning and tearing the
                            Bowles&#x0027; stickers off their car. There was some interesting
                            things about that. But for the most part what you found was that people
                            generally have a regard for the office of the governor. That was true
                            with the legislature and Council of State as well. Folks tend
                            to&#x2014;because of that respect for the office, folks tend to sort
                            of try to get along. I heard after I left office that people in the ABC
                            system were lining up raids to do on places where I had been the night
                            before, so that it looked like I had put them on them, so to speak. Of
                            course, that was also influenced by the fact that the guy who headed up
                            the ABC board was a Holshouser from Rowan County. He had been the
                            chairman of the State Association of ABC Boards, and they had
                            recommended him. And I said, &#x22;I am not going to appoint someone
                            named Holshouser. He&#x0027;s got to be kin to me. You prove to me
                                <pb id="p31" n="31"/> that he&#x0027;s not close kin and maybe
                            I&#x0027;ll look at it.&#x22; So he got a genealogist, and
                            showed that the closest relative we had was the original Holshouser who
                            came down from Pennsylvania in 1750. That was the only common
                            connection. So I went ahead and appointed him. He did a good job, and
                            looking back, I wish his name hadn&#x0027;t been Holshouser. <note
                                type="comment"> [Laughter] </note> But I think those situations were
                            exceptions rather than the rule. I think most people tried hard to do
                            their job. We weren&#x0027;t out there trying to crucify any one
                            department or division. There wasn&#x0027;t any reason. You
                            invariably have the hassles that you go through in terms of moving
                            people out who had been political hacks, so to speak, in various
                            departments. It&#x0027;s amazing to me. Some cabinet officials were
                            so adept at not only doing it without ripples on the water, but also in
                            a way where you respected the other person. Gave them time to find
                            another job; helped them find another job. That&#x0027;s probably
                            one of the most important attributes for somebody who&#x0027;s going
                            to head up a state department; that is to have an ability to manage that
                            particular transition.</p>
                    </sp>
                    <milestone n="9215" unit="excerpt" type="stop" timestamp="01:19:58"/>
                    <milestone n="9397" unit="empty" type="start" timestamp="01:19:59"/>
                    <sp who="spk2">
                        <speaker n="2">JACK FLEER:</speaker>
                        <p>You said at one time that everyone should be subject to summary dismissal
                            by a president or a governor, although you do see a down side to this.
                            Could you talk about this a little? You said this in an interview that
                            you did in a volume called, <hi rend="u">On Being a Governor</hi>. Could
                            you talk about that?</p>
                    </sp>
                    <sp who="spk1">
                        <speaker n="1">JAMES E. HOLSHOUSER JR.:</speaker>
                        <p>Well see, at the time I was in the legislature we had a state
                            employees&#x0027; personnel system that had appeals from dismissals
                            that ended up in the governor&#x0027;s office. There
                            weren&#x0027;t many of those cases that got hauled into court,
                            because there weren&#x0027;t any rules. That changed during the time
                            I was governor. I think that was a mistake in that despite the fact that
                            it sounds logical. None of those people got elected by anybody. When the
                            governor gets elected, you may have people not deliberately disobeying
                            orders <pb id="p32" n="32"/> but just dragging their feet all the time.
                            You can&#x0027;t just document them as being a worthless employee
                            who barely gets to work and that&#x0027;s all. Those cases are easy.
                            But there are cases over here where you&#x0027;ve got a dedicated
                            employee&#x2014;it&#x0027;s easy on the other side.
                            It&#x0027;s just the ones in the middle that are always hard.
                            I&#x0027;ve just come to the conclusion that public schools, state
                            universities, state government&#x2014;I&#x0027;ve concluded that
                            it&#x0027;s all&#x2014;it&#x0027;s not necessarily bad, but
                            it keeps the system from functioning as it should. And it may well be
                            one of those things that if you did away with it, then in thirty years
                            you&#x0027;ll want to go back to it. I don&#x0027;t know.</p>
                    </sp>
                    <milestone n="9397" unit="empty" type="stop" timestamp="01:22:45"/>
                    <milestone n="9216" unit="excerpt" type="start" timestamp="01:22:46"/>
                    <sp who="spk2">
                        <speaker n="2">JACK FLEER:</speaker>
                        <p>Let&#x0027;s in these final minutes reflect on the legacy of the
                            Holshouser administration. What do you think, looking over twenty-some
                            years, are the most important accomplishments of the Holshouser
                            gubernatorial administration?</p>
                    </sp>
                    <sp who="spk1">
                        <speaker n="1">JAMES E. HOLSHOUSER JR.:</speaker>
                        <p>Well, the passing of years probably gives you a different perspective. If
                            you&#x0027;d ask me in 1977, I would have said the Seven Year
                            Transportation Plan was one of the most important things we did. I find
                            if I look at what&#x0027;s out there today in terms of
                            transportation that even though it&#x0027;s on paper and more public
                            than it was in 1972, that you&#x0027;ve got umpteen zillion projects
                            in that plan that can&#x0027;t be funded anytime in the next ten
                            years. That&#x0027;s exactly what we&#x0027;d been trying to get
                            away from. For awhile I thought it worked pretty well. It&#x0027;s
                            hard to say how it has changed and who&#x0027;s responsible. I have
                            a feeling that what&#x0027;s happened is that legislators and DOT
                            members, influential campaign people, want a project. Rather than saying
                            no, they just put them into an early phase in the plan. This
                            isn&#x0027;t necessarily bad because eventually it&#x0027;s got
                            to start some place. But when you put more in the front than
                            you&#x0027;re ever going to be able to put out the back, that leads
                            to a lot of disillusioned people. So I discount that. Rural health
                            centers have <pb id="p33" n="33"/> probably been a good part of
                            something we started. They&#x0027;re still out there helping folks.
                            They changed. We have had a lot of local hospitals close.
                            That&#x0027;s made them more important. You&#x0027;ve got
                            HMO&#x0027;s getting put together all over the place, and
                            you&#x0027;ve got regional hospitals, and this makes regional health
                            centers potentially more a wing of a regional hospital than they were
                            intended to be. But they are out there, anyway, and I think
                            they&#x0027;ve done a lot. Some of the environmental stuff we did
                            has obviously lasted; the Coastal Area Management Act was important, and
                            I&#x0027;ve always agreed with the decisions of the commission
                            staff. I think it has certainly helped us protect the coastline. Every
                            governor can look back on the industry that they brought to the state,
                            and every governor builds on what the previous governor did. We had the
                            first million dollar investment&#x2014;capital investment for new
                            industry, which looks small by today&#x0027;s standards and that is
                            good for the state that it does. I guess I feel good about the fact that
                            we came out of four years with polls showing that they thought the
                            administration had not only done a decent job, but it had also been
                            pretty clean. Sometimes things happen beyond your control.
                            We&#x0027;ve seen that in Washington with people in the
                            administration just doing bad things. It taints the administration to a
                            certain degree, so sometimes you&#x0027;re lucky if you
                            don&#x0027;t have anything happen. That&#x0027;s particularly
                            true when the talent pool from which you&#x0027;re selecting is
                            pretty small. I still feel pretty good about that, and I&#x0027;m
                            always pleased that a number of people still come up to me and thank me
                            for my service to the state.</p>
                    </sp>
                    <milestone n="9216" unit="excerpt" type="stop" timestamp="01:27:48"/>
                    <milestone n="9217" unit="excerpt" type="start" timestamp="01:27:49"/>
                    <sp who="spk2">
                        <speaker n="2">JACK FLEER:</speaker>
                        <p>You mentioned things that motivated you to be governor&#x2014;and
                            things that you sort of wanted to accomplish&#x2014;in an earlier
                            interview. You mentioned that maintaining the university system was a
                            very important goal that you had. And <pb id="p34" n="34"/> obviously,
                            you did maintain it. Was that a difficult thing to maintain during your
                            term? Was it under duress?</p>
                    </sp>
                    <sp who="spk1">
                        <speaker n="1">JAMES E. HOLSHOUSER JR.:</speaker>
                        <p>Let me say one thing to follow up on previous things. I think North
                            Carolina has not been plagued like other states. I think
                            we&#x0027;ve had a history of good government, Democrats or
                            Republicans, and that&#x0027;s been helpful for that state. It
                            probably&#x2014;when you&#x0027;ve had somebody who has had a
                            decent four years with little scandal, it gets easier to build on that.
                            Now, it was very clear in documents that came out with the highway
                            contractors during Jim Hunt&#x0027;s term that some of that had been
                            going on&#x2014;price fixing&#x2014;during my term, and Bob
                            Scott&#x0027;s term before me; maybe even in the term before him, to
                            be honest. It didn&#x0027;t look to me like it had much to do with
                            the administration; there wasn&#x0027;t anything showing state
                            officials were involved in any of that collusion. That was something
                            that was an exception to the rule at that time. Now, let me come back to
                            the question you asked.</p>
                    </sp>
                    <milestone n="9217" unit="excerpt" type="stop" timestamp="01:29:42"/>
                    <milestone n="9218" unit="excerpt" type="start" timestamp="01:29:43"/>
                    <sp who="spk2">
                        <speaker n="2">JACK FLEER:</speaker>
                        <p>The question I asked was that whenever you were reflecting about what you
                            wanted to accomplish as governor, you wanted to maintain the university
                            system.</p>
                    </sp>
                    <sp who="spk1">
                        <speaker n="1">JAMES E. HOLSHOUSER JR.:</speaker>
                        <p>I&#x0027;m sure I said in an earlier interview that I thought my
                            involvement with the creation of the university in 1971 was more
                            important than anything I did as governor. I may be overestimating my
                            own role in that, but that&#x0027;s how I felt. I thought it was
                            good from the standpoint of the university that you had this governor
                            from 1972 through 1977, those first five years, somebody that knew not
                            only the history of why it was created, but knew some of the nuances and
                            players, and pitfalls. Even though we lost the battle on the East
                            Carolina Medical School, being able to get through that four year period
                            with the university structure intact. I&#x0027;m not sure if I look
                            back in 1976, I did a television speech <pb id="p35" n="35"/> right
                            before the election in 1976 that talked about what we&#x0027;d done,
                            and I don&#x0027;t remember saying a whole lot about that. But I do
                            expect that that was one of the most important things that happened for
                            the long term of the state. It helped to provide some underpinning for
                            keeping it on solid ground.</p>
                    </sp>
                    <sp who="spk2">
                        <speaker n="2">JACK FLEER:</speaker>
                        <p>Maybe I&#x0027;m reading you wrong, but are you implying that there
                            were efforts to try to undermine that system?</p>
                    </sp>
                    <sp who="spk1">
                        <speaker n="1">JAMES E. HOLSHOUSER JR.:</speaker>
                        <p>No, I don&#x0027;t think there were. Part of that was in sort of
                            using the pulpit with the legislature; you know, saying
                            &#x2018;Let&#x0027;s give this thing time to work.
                            Don&#x0027;t be meddling around like we&#x0027;ve done for the
                            last decade or so.&#x2019; I may have been seeing a shadow that
                            wasn&#x0027;t out there, but it had been so frequent a problem since
                            I had been involved that I thought it could be.</p>
                    </sp>
                    <sp who="spk2">
                        <speaker n="2">JACK FLEER:</speaker>
                        <p>And I know that you and others who were involved in getting that
                            legislation certainly had to fight hard to get that legislation in the
                            earlier General Assembly.</p>
                    </sp>
                    <sp who="spk1">
                        <speaker n="1">JAMES E. HOLSHOUSER JR.:</speaker>
                        <p>It was a very difficult. It&#x0027;s still just a miracle that that
                            legislation passed, because there were just so many competing voices
                            there. If you had a concept that you were trying to hold in place and
                            yet build a consensus behind it, it meant that you had to have your core
                            theme but also you had to keep fringe issues mediated. As long as you
                            could keep mediating those issues rather than losing the core, you were
                            okay. I still think that will be one of the most important chapters in
                            the history of the state.</p>
                    </sp>
                    <milestone n="9218" unit="excerpt" type="stop" timestamp="01:33:21"/>
                    <milestone n="9398" unit="empty" type="start" timestamp="01:33:22"/>
                    <sp who="spk2">
                        <speaker n="2">JACK FLEER:</speaker>
                        <p>You mentioned that you&#x0027;d lost the East Carolina issue, talking
                            about the medical school at East Carolina. Did you see that as an attack
                            on the core of the university system?</p>
                    </sp>
                    <pb id="p36" n="36"/>
                    <sp who="spk1">
                        <speaker n="1">JAMES E. HOLSHOUSER JR.:</speaker>
                        <p>Yes. Yes, although you had to put an asterisk by that before calling it
                            an attack. That was something that predated the creation of the single
                            university&#x2026;</p>
                    </sp>

                    <p>
                        <note anchored="yes">
                            <p>END OF INTERVIEW</p>
                        </note>
                    </p>
                    <milestone n="9398" unit="empty" type="stop" timestamp="01:34:02"/>
                </div2>
            </div1>
        </body>
    </text>
</TEI.2>
