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                    <hi rend="bold">Oral History Interview with James E. Holshouser Jr., June 4,
                        1998. Interview C-0328-4. Southern Oral History Program Collection
                    (#4007):</hi> Electronic Edition. </title>
                <title type="descriptive">Party Builder: James E. Holshouser Jr. and Republican
                    Politics in 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.,
                            June 4, 1998. Interview C-0328-4. Southern Oral History Program
                            Collection (#4007)</title>
                        <title type="series">Series C. Notable North Carolinians. Southern Oral
                            History Program Collection (C-0328-4)</title>
                        <author>Jack Fleer</author>
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                        <publisher>Southern Historical Collection, University of North Carolina at
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                        <date>4 June 1998</date>
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                        <title type="transcript">Oral History Interview with James E. Holshouser
                            Jr., June 4, 1998. Interview C-0328-4. Southern Oral History Program
                            Collection (#4007)</title>
                        <title type="series">Series C. Notable North Carolinians. Southern Oral
                            History Program Collection (C-0328-4)</title>
                        <author>James E. Holshouser Jr.</author>
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                    <extent>28 p.</extent>
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                        <publisher>Southern Historical Collection, University of North Carolina at
                            Chapel Hill</publisher>
                        <pubPlace>Chapel Hill, North Carolina</pubPlace>
                        <date>4 June 1998</date>
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                        <note anchored="no">Interview conducted on June 4, 1998, by Jack Fleer;
                            recorded in Pinehurst, North Carolina.</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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    <text id="ohs_C-0328-4">
        <front>
            <div1 type="about_interview">
                <head>Interview with James E. Holshouser Jr., June 4, 1998. Interview C-0328-4.</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-0328-4, 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>Elected to the governorship of North Carolina in 1972, James E. Holshouser Jr.
                    was the first Republican chief executive of that state since 1896. In this
                    interview, the fourth in a series of four interviews with the former governor,
                    Holshouser looks back on his political career, answers some broad questions
                    about his impressions of his administration's successes and failures, and the
                    operation of state government. Holshouser seems most proud of the "little
                    things" he accomplished, including preventing the damming of the New
                    River&#x2014;which flows near his hometown in western North
                    Carolina&#x2014;and the creation of an ombudsman's office. He also reflects,
                    however, on his efforts to build a two-party system in the state&#x2014;a
                    job that in essence required shoring up the Republican Party, since the
                    Democratic Party had enjoyed decades of dominance. While Holshouser and others
                    managed to make the Republican Party a force in North Carolina even as it
                    struggled through the Watergate scandal of the early 1970s, its new strength
                    brought new complications, such as the rise of the religious right and the
                    libertarian wing of the party. Holshouser believes in the Republican Party, but
                    ends this interview wondering about these factions and what they signify for the
                    party's future.</p>
            </div1>
            <div1 type="short_abstract">
                <head>Short Abstract</head>
                <p>James E. Holshouser Jr., who in 1972 was the first Republican since 1896 to take
                    North Carolina's governorship, reflects on his term and on the state of the
                    Republican Party.</p>
            </div1>
        </front>
        <body>
            <div1 id="C-0328-4" type="sohp_interview">
                <head>Interview with James E. Holshouser Jr., June 4, 1998. <lb/>Interview C-0328-4.
                    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="9399" unit="empty" type="start" timestamp="00:00:00"/>
                    <sp who="spk2">
                        <speaker n="2">JACK FLEER:</speaker>
                        <p>
                            <note type="comment"> [text missing] </note>
                        </p>
                        <milestone n="9399" unit="empty" type="stop" timestamp="00:00:45"/>
                        <milestone n="9314" unit="excerpt" type="start" timestamp="00:00:46"/>
                        <p>Governor Holshouser, what was the most satisfying decision that you made
                            as governor?</p>
                    </sp>
                    <sp who="spk1">
                        <speaker n="1">JAMES E. HOLSHOUSER JR.:</speaker>
                        <p>I am trying to think. I am not sure I remember what I said the last time.
                            I look at the big picture and it was getting some things done that I had
                            not been able to do as a legislator which is the reason that I ran for
                            governor to start with I think. So just little things like changing the
                            five-year license tags, saving the state money. We had the private
                            sector come in and do an efficiency study. Came back with a whole bunch
                            of recommendations about 600 of them and as implemented it was suppose
                            to save us about 80 million dollars a year. Now that is the kind of
                            thing that managers ought to be doing periodically, not every other year
                            because it is fairly time consuming. But once a decade at least that
                            kind of thing ought to happen. In terms of specific things I have a
                            feeling that avoidance of damming up the New River probably not only
                            took about as much time as any single thing during the whole four years
                            but also had as much of my own heart and soul in it as about anything.
                            That was a long fought battle that was won and that was satisfying. I
                            think the establishment of an ombudsman office so that the people had
                            some place to come when they could figure out who they were suppose to
                            talk to about a problem in state government was a good step forward in
                            terms of how people feel about their government. I guess overall looking
                            back finishing four years with people feeling <pb id="p2" n="2"/> like
                            the governor had been trustworthy and responsive to the kind of problems
                            we had was as satisfying as any thing looking back at the four years.
                            That is not a thing, a project, but it is important.</p>
                    </sp>
                    <sp who="spk2">
                        <speaker n="2">JACK FLEER:</speaker>
                        <p>Important legacy actually.</p>
                    </sp>
                    <sp who="spk1">
                        <speaker n="1">JAMES E. HOLSHOUSER JR.:</speaker>
                        <p>And in a sense secondarily to that from the standpoint of building a two
                            party system in the state it was satisfying. People felt like that the
                            government could be entrusted to Republicans without the world coming to
                            an end.</p>
                    </sp>
                    <sp who="spk2">
                        <speaker n="2">JACK FLEER:</speaker>
                        <p>Let&#x0027;s talk a little bit about the ombudsman decision that grew
                            out of or was certainly associated with your people&#x0027;s day
                            efforts.</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 what did you expect from the establishment of that office and what do
                            you think it achieved?</p>
                    </sp>
                    <sp who="spk1">
                        <speaker n="1">JAMES E. HOLSHOUSER JR.:</speaker>
                        <p>Well sometimes you get results that you don&#x0027;t expect in a way.
                            When we started off with the people&#x0027;s day things, it was one
                            of these things that you do it as much as to let people have the
                            opportunity even if they don&#x0027;t exercise it as you do for the
                            people who come in. But at the same time setting up the mechanism with
                            the people that was going to staff that project and then expanding that
                            into a full-grown ombudsman effort. It seemed to me it should have been
                            a very positive long term thing saying that John Jones out here on the
                            street, you have got a problem with DOT or the Department of Corrections
                            or Environment or whatever. You have got some place you can call without
                            having to be bounced around from phone to phone in the government which
                            happens an awful lot. I mean it still happens to me and I know the
                            government pretty well. Occasionally I will call up and they will say no
                            you need to talk to so and so and I&#x0027;ll <pb id="p3" n="3"/>
                            call and he will be out of town until next week and he calls back and
                            says no, that is not my department, somebody told you wrong. And I
                            don&#x0027;t get frustrated because I sort of know about those
                            things. But the average person on the street sometimes will just throw
                            up their hands and say I can&#x0027;t get anywhere with this. Now I
                            have not really kept up to see whether that office has functioned on a
                            continuing bases or not. There has been a separate effort on
                            volunteerism. It seems to me that maybe those two offices got
                        merged.</p>
                    </sp>
                    <sp who="spk2">
                        <speaker n="2">JACK FLEER:</speaker>
                        <p>They have been.</p>
                    </sp>
                    <sp who="spk1">
                        <speaker n="1">JAMES E. HOLSHOUSER JR.:</speaker>
                        <p>And how well the office functions as an ombudsman, it is hard for me to
                            know.</p>
                    </sp>
                    <sp who="spk2">
                        <speaker n="2">JACK FLEER:</speaker>
                        <p>I was tracking yesterday in the budget office, the growth of the
                            governor&#x0027;s office and particularly the growth of what is now
                            called the Office of Citizens Help or Citizens Affairs which title they
                            are using right now. The ombudsman is part of that and it is pretty
                            significant. I think Governor Hunt, for example, picked up on
                            particularly the volunteer side but also kept the ombudsmen side going.
                            But it has continued to a part of the governor&#x0027;s office and
                            an important part of the governor&#x0027;s office.</p>
                    </sp>
                    <sp who="spk1">
                        <speaker n="1">JAMES E. HOLSHOUSER JR.:</speaker>
                        <p>And the trick about this is that I am not sure that Joe Jones out there
                            on the street knows to call that particular office. Now if the people in
                            the administration are turned in the first call that comes that it is
                            not in my jurisdiction I ought just to send them to the ombudsmen office
                            but I suspect that doesn&#x0027;t happen. It is a little hard to
                            know you. Sometimes you set things in motion and you have a core but it
                            takes more tentacles of reaching out within the various departments. But
                            what I did find is that the people in that office, because they spoke
                            with the authority of the governor&#x0027;s office, could cut
                            through a bunch of what politicians call the bureaucracy and the red
                            tape and get a response back to <pb id="p4" n="4"/> people even if it
                            wasn&#x0027;t always what they were looking for. Frankly a lot of
                            times if you got the response back to somebody even if it was no, if you
                            could explain to them why it was no, that was enough.</p>
                    </sp>
                    <sp who="spk2">
                        <speaker n="2">JACK FLEER:</speaker>
                        <p>On the New River decision why was that so satisfying?</p>
                    </sp>
                    <sp who="spk1">
                        <speaker n="1">JAMES E. HOLSHOUSER JR.:</speaker>
                        <p>Well I grew up in the mountains. Watauga County was just adjacent to Ashe
                            and Allegheny was next over. A long time a friend of my father, a lawyer
                            by the name of Floyd Crouse over in Sparta, had been very involved
                            during the Scott administration in the citizens&#x0027; efforts
                            against the dam so to speak. You had some people who thought this was
                            going to be the greatest thing since slice bread. Real estate developers
                            could just see lots of things but it was going to change the basic
                            character of that part of the state. There were enough people who felt
                            so strongly about the land and its use that I became convinced that it
                            would be much better to leave it as it was. I don&#x0027;t guess I
                            will ever know whether that was right or not because you
                            don&#x0027;t know what would happen the other way. We spent a lot of
                            time and books were written about it. But it was very well down the
                            pipeline at the time I came into office. The state basically had a
                            posture of not fighting the (national) government. There were three or
                            four different initiatives in court, some in Congress, some in the state
                            legislature. As I indicated to you previously there were congressional
                            offices involved &#x2014; Vinegar Ben Mizell, Steve Neal. Rufus
                            Edmisten when he became Attorney General and Senator Helms office all
                            took an active hand at one time or another. I ended up going to see, I
                            think it was, four different secretaries of the Interior over time to
                            get their support for the approach of using the Wild and Scenic
                            River&#x0027;s Act as a mechanism to say you can&#x0027;t touch
                            this.</p>
                    </sp>
                    <pb id="p5" n="5"/>
                    <sp who="spk2">
                        <speaker n="2">JACK FLEER:</speaker>
                        <p>It was quite an effort coordinating the various levels of government and
                            different offices. Now did you see any political benefits from this or
                            was it essentially an environmental decision?</p>
                    </sp>
                    <sp who="spk1">
                        <speaker n="1">JAMES E. HOLSHOUSER JR.:</speaker>
                        <p>You total up the total votes in Ashe and Allegheny counties and they
                            weren&#x0027;t going to get anybody elected on a statewide bases or
                            anything. This didn&#x0027;t have anything to do with politics
                            except in the best sense of the term.</p>
                    </sp>
                    <sp who="spk2">
                        <speaker n="2">JACK FLEER:</speaker>
                        <p>I was talking with the former editor of the Winston Salem Journal a
                            couple of weeks ago about the New River decision.</p>
                    </sp>
                    <sp who="spk1">
                        <speaker n="1">JAMES E. HOLSHOUSER JR.:</speaker>
                        <p>Yes, Wallace Carroll was very interested in that too and as instrumental
                            as anybody in helping to generate support.</p>
                    </sp>
                    <sp who="spk2">
                        <speaker n="2">JACK FLEER:</speaker>
                        <p>And he indicated that his paper decided to endorse you and he believes,
                            although I haven&#x0027;t actually checked this, that in their major
                            counties of circulation you actually won at least in part I suppose
                            because of your New River decision and your involvement with the New
                            River.</p>
                    </sp>
                    <sp who="spk1">
                        <speaker n="1">JAMES E. HOLSHOUSER JR.:</speaker>
                        <p>I don&#x0027;t know. I don&#x0027;t remember the New River being
                            that big of a campaign issue per se. It was heating up but if you asked
                            me right now what were the major issues in the campaign I
                            wouldn&#x0027;t say that was one of them. I may be
                        mis-recollecting.</p>
                    </sp>
                    <sp who="spk2">
                        <speaker n="2">JACK FLEER:</speaker>
                        <p>No I don&#x0027;t think he is implying that either but I think what
                            he might have been implying was the power of the Winston Salem
                        Journal.</p>
                    </sp>
                    <sp who="spk1">
                        <speaker n="1">JAMES E. HOLSHOUSER JR.:</speaker>
                        <p>Well you know the Republicans hadn&#x0027;t got many big city
                            newspaper endorsements. Getting the Charlotte Observer and Winston Salem
                            papers endorsements were probably as significant of a factor in winning
                            as anything.</p>
                    </sp>
                    <milestone n="9314" unit="excerpt" type="stop" timestamp="00:12:15"/>
                    <milestone n="9315" unit="excerpt" type="start" timestamp="00:12:16"/>
                    <pb id="p6" n="6"/>
                    <sp who="spk2">
                        <speaker n="2">JACK FLEER:</speaker>
                        <p>What do you think was the most difficult decisions that you had to make
                            as governor?</p>
                    </sp>
                    <sp who="spk1">
                        <speaker n="1">JAMES E. HOLSHOUSER JR.:</speaker>
                        <p>Personnel decisions in a lot of cases. Several incidents of having to let
                            people go from positions. In some cases not because they had been bad in
                            their intentions but because of the perception of what they had done
                            came across looking bad. That hurt my feelings pretty bad because at
                            times you don&#x0027;t feel like you are standing behind your
                            friends like you should. At the same time there is a process of owing
                            something to &#x22;the government&#x22; and people&#x0027;s
                            perception of it not to have things appear to be accepted. I
                            don&#x0027;t want to get quoted in the book as being a critical of
                            the present administration. But the newspapers have written widely about
                            the fact that every time some body in this administration seems to do
                            something bad they don&#x0027;t get fired they get moved to another
                            position. Sometimes with an increase in salary. But I think you have to
                            decide early on where are you going to draw the line. For instance
                            Commander of the Highway patrol got caught for speeding in his patrol
                            car&#x2026;</p>
                    </sp>
                    <sp who="spk2">
                        <speaker n="2">JACK FLEER:</speaker>
                        <p>During your term?</p>
                    </sp>
                    <sp who="spk1">
                        <speaker n="1">JAMES E. HOLSHOUSER JR.:</speaker>
                        <p>The press says first thing, are you going to fire him? And I said I just
                            don&#x0027;t believe that justifies firing somebody even though the
                            major job of the highway patrol is to keep the roads safe. That is a
                            mistake that anybody could make. Shouldn&#x0027;t have done it. But
                            that is not the kind of thing somebody ought to be fired about. Other
                            people might disagree with that. And you had people who would just go
                            off and do crazy things occasionally that anybody in their right mind
                            shouldn&#x0027;t do it. I mean it wasn&#x0027;t bad. You
                            couldn&#x0027;t have the administration appear to sanction the
                            things that were happening.</p>
                    </sp>
                    <pb id="p7" n="7"/>
                    <sp who="spk2">
                        <speaker n="2">JACK FLEER:</speaker>
                        <p>Now is the problem, you mention, sort of the loyalty to people in your
                            desire to avoid having to dismiss them because they had been friends or
                            whatever? Is the problem of this type also the difficulty of explaining
                            the decision or an action, because in the explanation sometimes you make
                            the issue bigger?</p>
                    </sp>
                    <sp who="spk1">
                        <speaker n="1">JAMES E. HOLSHOUSER JR.:</speaker>
                        <p>Yeah that is part of it. I am basically sort of a soft approach person
                            just in general and always and frankly some of the experiences in
                            Raleigh have taught there are ten different ways to do the same thing.
                            If you do them one way you just come off looking awful, and make the
                            person you are dealing with look awful and in other ways there is a way
                            to even let people go. Sometimes you can help them find another job
                            outside the government. Let them quietly resign and go their way.
                            Sometimes it almost can reach the point of hypocrisy in a way. I will
                            give you an example again not for publication. When Jim Hunt decided
                            that he wanted to make a change in the chairman of the State Board of
                            Education with Dallas Herring. Herring did not want to leave. But they
                            had a big going away party and Hunt got up and said all of the nicest
                            things in the world about the great leadership he provided forever. He
                            had done a great job I thought. But at the same time it was sort of just
                            kicking him out the side door but putting some foam down on the pad so
                            it didn&#x0027;t hurt too bad.</p>
                    </sp>
                    <sp who="spk2">
                        <speaker n="2">JACK FLEER:</speaker>
                        <p>Did you have any experiences like that in your administration?</p>
                    </sp>
                    <sp who="spk1">
                        <speaker n="1">JAMES E. HOLSHOUSER JR.:</speaker>
                        <p>In a way, Henry Kendall at the Employment Security Commission had been
                            there a long time. I did not have any personal contact with him. But his
                            age had reached the point where it was time for him to step down. He
                            still didn&#x0027;t want to. We decided that we would make a change.
                            So we did a good farewell party for him. It was from my mind having to
                            have him leave shouldn&#x0027;t have been a reflection on his
                            service <pb id="p8" n="8"/> because he had been exemplary but there is
                            just a time for all of us. So you just try to make it as good as you
                            can. I saw people get fired in the most brutal kind of way and the
                            smoothest kind of way within the same administration. Just different way
                            people handling it. The smoother you can do it, the better off you
                        are.</p>
                    </sp>
                    <milestone n="9315" unit="excerpt" type="stop" timestamp="00:17:46"/>
                    <milestone n="9316" unit="excerpt" type="start" timestamp="00:17:47"/>
                    <sp who="spk2">
                        <speaker n="2">JACK FLEER:</speaker>
                        <p>Other than these sort of personnel decisions and the difficulty of making
                            those and explaining it fairly to the people involved, were there any
                            substantive or policy decisions that you wish you could have made more
                            progress on or made progress on of any type?</p>
                    </sp>
                    <sp who="spk1">
                        <speaker n="1">JAMES E. HOLSHOUSER JR.:</speaker>
                        <p>Well we talked before about the bear of getting the mountain area
                            management act through. I think that was the single biggest
                            disappointment in the four years. Because the coastal act had gotten
                            through and we just couldn&#x0027;t hold together the coalition for
                            the mountain act. I still think the mountains would be a lot better off
                            if we had. Since that is my part of the state, I feel a special sense of
                            disappointment about that. Even though if it had passed, knowing the
                            mountaineers and their independence, a lot of them would still be
                            fussing about Jim Holshouser probably. So in a sense of personal legacy
                            they probably think better of me because of how things happened than if
                            we had gotten it through.</p>
                    </sp>
                    <milestone n="9316" unit="excerpt" type="stop" timestamp="00:19:01"/>
                    <milestone n="9317" unit="excerpt" type="start" timestamp="00:19:02"/>
                    <sp who="spk2">
                        <speaker n="2">JACK FLEER:</speaker>
                        <p>I was thinking in the context of contemporary North Carolina politics
                            that there is this discussion today about eliminating the sales tax on
                            food. I believe that you made a proposal back in the 1970s to do that
                            and you withdrew it, if I recall correctly.</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>Could you talk a little bit about that as sort of substantive decision
                            that you proposed and were unable to fulfill?</p>
                    </sp>
                    <pb id="p9" n="9"/>
                    <sp who="spk1">
                        <speaker n="1">JAMES E. HOLSHOUSER JR.:</speaker>
                        <p>I can&#x0027;t remember when we talked about what. But I have come to
                            this conclusion over time that a lot of time your record, your
                            achievements or lack of them, are controlled by events that are beyond
                            your control. It is the same way that when you run for office and
                            it&#x0027;s the same while you are in office. We proposed that in
                            1975 in a speech to the legislature probably in January. The week before
                            that speech was made, we saw the first increase in applications for
                            unemployment. The budget officer came down and talked with me and he
                            said you need to be aware that this is happening. It maybe just the tip
                            of the iceberg of what is coming. I am not saying change what you are
                            going to say but you just need to be aware of this. Over the next two or
                            three months those figures just continued to rise, sales tax figures
                            started to drop, and it became apparent that the next fiscal year
                            wasn&#x0027;t going to be able to support the repeal of the food
                            tax, even on a partial bases. So finally you just bite the bullet and
                            tell the legislature. I know I asked you to do this you probably are not
                            going to do it anyway but I am telling you this is not a good thing to
                            do right now.</p>
                    </sp>
                    <sp who="spk2">
                        <speaker n="2">JACK FLEER:</speaker>
                        <p>Now was that, of course you weren&#x0027;t running again for that
                            office, but do you think that decision had any negative or positive
                            consequences for the party having made that proposal and then changing
                            it?</p>
                    </sp>
                    <sp who="spk1">
                        <speaker n="1">JAMES E. HOLSHOUSER JR.:</speaker>
                        <p>I don&#x0027;t think so. It is interesting the different views people
                            have about that particular tax. There is a certain segment of the
                            population says that is the only tax some people are going to pay and
                            everybody ought to pay some tax so you shouldn&#x0027;t take that
                            tax off. Other people say that it is regressive tax, it hits the people
                            who can least afford it as a higher percent of their budget than anybody
                            else. And that is true. It is not an avoidable tax because you have got
                            to eat and if you need medicine you have got to get <pb id="p10" n="10"
                            /> medicine. So you know that that equation is out there before you ever
                            make the decision. But if you decide that you are going to do it try to
                            do it. Having to back off always looks a little weak I think. But at the
                            same time you have to be blind not to realize what was happening with
                            the energy crisis and all of that at the time. And I didn&#x0027;t
                            really think that had a lasting impact.</p>
                    </sp>
                    <sp who="spk2">
                        <speaker n="2">JACK FLEER:</speaker>
                        <p>The reason I mentioned that is because so often, not only among public
                            figures and citizens but also among scholars, there is the idea that
                            once you make a commitment there is all negative on the side of facing
                            facts and realizing that you can&#x0027;t do what you said you were
                            going to do.</p>
                    </sp>
                    <sp who="spk1">
                        <speaker n="1">JAMES E. HOLSHOUSER JR.:</speaker>
                        <p>Yes and I had the advantage in this case in that I hadn&#x0027;t
                            promised it during the campaign. I think when you make promises during
                            the campaign and then don&#x0027;t follow through on them it just
                            adds fuel to the fire and the public feeling that politicians
                            can&#x0027;t be trusted. I had been very careful in the campaign to
                            say I believe that I know enough about the budget that I can assure you
                            that there won&#x0027;t be any tax increases during our
                            administration borrowing some kind of unexpected event. That is about as
                            far as I ever went. Never talked about tax cuts.</p>
                    </sp>
                    <milestone n="9317" unit="excerpt" type="stop" timestamp="00:23:40"/>
                    <milestone n="9318" unit="excerpt" type="start" timestamp="00:23:41"/>
                    <sp who="spk2">
                        <speaker n="2">JACK FLEER:</speaker>
                        <p>Right. Let&#x0027;s shift gears and talk a little bit about ethics in
                            government. There is always a lot of talk about ethics in every
                            administration and I would suppose that governors come into office with
                            some kind of idea about what they find acceptable and what they would
                            find unacceptable. Can you talk a little bit about what kind of ethical
                            code you brought to the office of governor?</p>
                    </sp>
                    <sp who="spk1">
                        <speaker n="1">JAMES E. HOLSHOUSER JR.:</speaker>
                        <p>Well I think you start off with your own personal standard. It is sort of
                            interesting because looking back I suspect even that changes with people
                            from time to <pb id="p11" n="11"/> time over the passage of time. Maybe
                            there is a better way to say that. That also gets affected by things
                            that were out of your control. If you have a major scandal in another
                            state or in Washington about a specific thing that makes everybody in
                            every state more likely to set up and pay attention. We did things that
                            everybody accepted as fairly standard at the time that today probably
                            wouldn&#x0027;t be. (I) used the state plane a lot for things that
                            people don&#x0027;t, I shouldn&#x0027;t say people
                            don&#x0027;t let you do, but its become politically unwise to do any
                            more. Never had the sense that we were taking public money to put in our
                            own pocket because I made the determination early on in politics that if
                            you are honest you couldn&#x0027;t get rich in politics, you
                            probably lost money. And you shouldn&#x0027;t ever let that get to
                            be a factor. I think you also had to figure that as the first Republican
                            in administration, I thought it was especially important that we not get
                            a black eye. The jury is still out at this point on whether that may
                            happen with our legislative folks or not. And if it turns out that they
                            do get a black eye, and to a certain extent they have got a black eye
                            already just in fact that there has been as much publicity as there has
                            about it. And I think they let the party down in this strictly partisan
                            sense. In the broader political sense, they have let the governmental
                            process down by having it appear that there is too much wheeling and
                            dealing.</p>
                    </sp>
                    <sp who="spk2">
                        <speaker n="2">JACK FLEER:</speaker>
                        <p>And you are referring to the fact that the Republicans are in majority in
                            the house and some action that has been in relation to the decisions
                            there?</p>
                    </sp>
                    <sp who="spk1">
                        <speaker n="1">JAMES E. HOLSHOUSER JR.:</speaker>
                        <p>Right. Some of the accusations that have been made, if they are proven
                            true and so far they haven&#x0027;t been it appears. And I generally
                            told people they shouldn&#x0027;t do anything they
                            wouldn&#x0027;t want on the front page of the newspaper.</p>
                    </sp>
                    <sp who="spk2">
                        <speaker n="2">JACK FLEER:</speaker>
                        <p>Did you feel the standard was higher for the first Republican
                            administration?</p>
                    </sp>
                    <pb id="p12" n="12"/>
                    <sp who="spk1">
                        <speaker n="1">JAMES E. HOLSHOUSER JR.:</speaker>
                        <p>I did.</p>
                    </sp>
                    <sp who="spk2">
                        <speaker n="2">JACK FLEER:</speaker>
                        <p>Yes.</p>
                    </sp>
                    <sp who="spk1">
                        <speaker n="1">JAMES E. HOLSHOUSER JR.:</speaker>
                        <p>I would hope that if I had been the fifth Republican I would still have
                            thought the standard ought to be the same and keep it high. But I
                            can&#x0027;t measure that.</p>
                    </sp>
                    <sp who="spk2">
                        <speaker n="2">JACK FLEER:</speaker>
                        <p>Right.</p>
                    </sp>
                    <sp who="spk1">
                        <speaker n="1">JAMES E. HOLSHOUSER JR.:</speaker>
                        <p>And I had always felt that the public in general had a feeling that there
                            was something a little unsavory about politics. I remember talking to
                            some of my mentors in the mountains about that, about whether you could
                            actually get into it with both feet up to your ears so to speak without
                            getting tangled yourself. That is harder today than it was when I was
                            around I think because of the attack mode of the campaigns. When we
                            talked before one of the things that I didn&#x0027;t mentioned that
                            I probably should have is that despite the fact that Gene Anderson got
                            some bad publicity during our administration, I think Gene felt one of
                            his jobs was to keep his antenna out there, and his ears and eyes open,
                            and have people talk to him about whether something was happening in one
                            of the agencies that it was going to be an embarrassment. Somebody doing
                            something wrong. And just periodically he would come in and say I think
                            you need to take a look about this, something is happening. And I think
                            he never did get any credit for that. It wasn&#x0027;t a public
                            thing but it was very important in terms of keeping the
                            administration&#x0027;s record clean.</p>
                    </sp>
                    <sp who="spk2">
                        <speaker n="2">JACK FLEER:</speaker>
                        <p>Is it&#x2014;?</p>
                    </sp>
                    <sp who="spk1">
                        <speaker n="1">JAMES E. HOLSHOUSER JR.:</speaker>
                        <p>What I did find is this though. When you have got 60,000 people out there
                            working for the state a few of them are going to screw up every day and
                            the guy at <pb id="p13" n="13"/> the top eventually answers for all of
                            that. It just depends on the degree the press gets interested as to how
                            much publicity that gets.</p>
                    </sp>
                    <sp who="spk2">
                        <speaker n="2">JACK FLEER:</speaker>
                        <p>You mentioned Gene Anderson&#x0027;s role. It is necessary do you
                            think and is it generally the case that an administration will have
                            someone or should have someone who will sort of blow the whistle
                            whenever that kind of potential difficulty occurs?</p>
                    </sp>
                    <sp who="spk1">
                        <speaker n="1">JAMES E. HOLSHOUSER JR.:</speaker>
                        <p>I think it is. I think somebody can. Sometimes it just happens because of
                            the personalities and Phil Kirk shared that sense of responsibility but
                            just in a slightly different way. It is sort of hard to explain and I am
                            not sure that I can. Both of them felt an obligation to sort of keep
                            their eyes and ears open. If you don&#x0027;t have something like
                            that, then if the governor is doing his job he is out there being the
                            spokesman for the state and looking at policy and this sort of thing.
                            Something will just reach up and just bite you from behind in case you
                            don&#x0027;t have time to personally oversee all of this stuff. So
                            part of your own protection of yourself is to have somebody who is doing
                            these things that you don&#x0027;t have time to do.</p>
                    </sp>
                    <milestone n="9318" unit="excerpt" type="stop" timestamp="00:30:51"/>
                    <milestone n="9319" unit="excerpt" type="start" timestamp="00:30:52"/>
                    <sp who="spk2">
                        <speaker n="2">JACK FLEER:</speaker>
                        <p>Right, right. Some people argue that governors and other people in high
                            positions of responsibility sometimes make it difficult, maybe
                            unintentionally, to find out the things that are going wrong in the
                            administration because they surround themselves with people who are
                            loyal but want to be loyal want to make the job as, not necessarily as
                            easy, but as doable as possible. Others argue that that is a recipe for
                            disaster. If you don&#x0027;t have someone in the administration who
                            will tell the governor that either he is doing something that may not be
                            intentionally undesirable or someone else in the administration in his
                            name are doing that, that you inevitably run the risk of having to look
                            on. Can you talk about that dilemma?</p>
                    </sp>
                    <pb id="p14" n="14"/>
                    <sp who="spk1">
                        <speaker n="1">JAMES E. HOLSHOUSER JR.:</speaker>
                        <p>I have seen that from both sides as a state chairman. I use to sit in
                            meetings with other state chairmen from the south and other parts of the
                            county, Republicans. With a Republican in the White House we would say
                            you ought to do this, you ought to do this. Everybody would go in and
                            everybody, either out of in awe of the Oval Office or the person with
                            the presidency, gets cold feet. Or maybe they don&#x0027;t want to
                            be the bearer of bad tidings so to speak. I told our staff, I told the
                            cabinet early on that we couldn&#x0027;t afford yes men or yes women
                            because we have them too. We had a disadvantage in not having a lot of
                            experience but we also had an advantage in that we had all sort of
                            fought the war together and there was a sense of a team and there
                            wasn&#x0027;t much, there was tremendous respect for me as governor
                            but there was a fair amount of disrespect for me as a person that was
                            really good. And the staff would give me a pretty hard time occasionally
                            about something or another. And I told them that we couldn&#x0027;t
                            afford to screw up. Which is what would happen if any of them were
                            afraid to bring something bad. Now I think that worked fine where the
                            staff was concerned. I didn&#x0027;t think the same thing always
                            worked where people coming in from some small mountain county who
                            hadn&#x0027;t seen you while. He has known you and worked with you.
                            He is still so thrilled that we have got a Republican governor. He
                            doesn&#x0027;t want to tell you something. So it is a little hard no
                            matter what you do to assure that people tell you what you need to hear
                            all of the time.</p>
                    </sp>
                    <sp who="spk2">
                        <speaker n="2">JACK FLEER:</speaker>
                        <p>Did you have any cases during your administration where you would find
                            out about something and thought, well why didn&#x0027;t somebody
                            tell me about that?</p>
                    </sp>
                    <pb id="p15" n="15"/>
                    <sp who="spk1">
                        <speaker n="1">JAMES E. HOLSHOUSER JR.:</speaker>
                        <p>Not a lot, not a lot. I am thinking it has been almost twenty five years
                            now and times tends to blur these things. If I went back and looked at
                            the newspaper clippings, I would probably find something.</p>
                    </sp>
                    <sp who="spk2">
                        <speaker n="2">JACK FLEER:</speaker>
                        <p>But nothing after twenty five years still bothers you that somebody
                            didn&#x0027;t tell you at the time.</p>
                    </sp>
                    <sp who="spk1">
                        <speaker n="1">JAMES E. HOLSHOUSER JR.:</speaker>
                        <p>That is right.</p>
                    </sp>
                    <milestone n="9319" unit="excerpt" type="stop" timestamp="00:34:46"/>
                    <milestone n="9320" unit="excerpt" type="start" timestamp="00:34:47"/>
                    <sp who="spk2">
                        <speaker n="2">JACK FLEER:</speaker>
                        <p>What do you think is the biggest threat to ethical behavior in politics
                            and government?</p>
                    </sp>
                    <sp who="spk1">
                        <speaker n="1">JAMES E. HOLSHOUSER JR.:</speaker>
                        <p>Well I think it is when people who are honest and responsible are not
                            willing to stand up to those who aren&#x0027;t and say we
                            can&#x0027;t do it that way. I think the public is less inclined
                            these days to be outraged. Maybe they have gotten, like people in Europe
                            centuries ago, too jaded with things. There is not as much potential for
                            political backlash as there once would have been in this country and in
                            the state I think. Although I think we are a little bit better than
                            maybe the country at large. It is hard to know. I think we are. And I
                            said earlier there are some things that people fuss at you about today
                            that they didn&#x0027;t fuss at you then. There are things today
                            that are done that would have gotten a lot more outcry twenty years ago
                            simply because I think there has been some lowering of the standards in
                            some way or another.</p>
                    </sp>
                    <sp who="spk2">
                        <speaker n="2">JACK FLEER:</speaker>
                        <p>Do you have an example of that?</p>
                    </sp>
                    <sp who="spk1">
                        <speaker n="1">JAMES E. HOLSHOUSER JR.:</speaker>
                        <p>I think people who serve on boards and commissions in some cases may
                            think of themselves as wheeler dealers a lot more than people did twenty
                            and thirty years ago. Now that may have been because I was more naive
                            twenty and thirty years ago and didn&#x0027;t see some of the
                            wheeling and dealing that&#x0027;s going on. But it seemed like to
                            me <pb id="p16" n="16"/> that maybe it started during that period of big
                            federal grants from Washington during the &#x0027;60s and
                            &#x0027;70s. But it seems to me that people have become more aware
                            of the potential for use of the public trough for their own personal
                            benefit than they did back years ago. Sometimes personal observations
                            sort of shoot from the hip. They may not be well founded but that is
                            sort of the impression I have.</p>
                    </sp>
                    <milestone n="9320" unit="excerpt" type="stop" timestamp="00:37:47"/>
                    <milestone n="9400" unit="empty" type="start" timestamp="00:37:48"/>
                    <sp who="spk2">
                        <speaker n="2">JACK FLEER:</speaker>
                        <p>One of the things that seems to me has gotten somewhat more publicity in
                            recent years in recent decades in fact, than it did possibly in the
                            &#x0027;70s or &#x0027;60s or even earlier and that is what we
                            commonly refer to as pork barrel activities. Some interpretations of
                            pork barrel activities suggest that this is an unwise use of public
                            treasury. Other people say no, it is a matter of good causes that are
                            getting reasonable help from the state. The first of those suggest the
                            kind of pressure, buying votes, those kinds of things. Others suggest
                            the kind of public interest that benefits from this. Am I right that
                            those kinds of things are more public today. If so is that something
                            where in a sense ethical standards or standards for political decision
                            making consistent with the public trust are greater today than in the
                            past?</p>
                    </sp>
                    <sp who="spk1">
                        <speaker n="1">JAMES E. HOLSHOUSER JR.:</speaker>
                        <p>It is a mix. You start off with what I think is a fact, that pork barrel
                            is always going to be a miniscule part to the overall budget. It gets a
                            lot more attention than it deserves as a percentage of spending. There
                            also are certain number of pork projects that a guy from West Virginia
                            is going to call pork and a guy from Virginia is going to say it is just
                            something that needed to be done and there wasn&#x0027;t any other
                            way to get it done. I suspect that people who come from rural areas tend
                            to look more at that latter approach. That they would never get anything
                            based on the numbers. And at the same time there is also been just some
                            blatant examples of tax monies that shouldn&#x0027;t have been <pb
                                id="p17" n="17"/> spent on projects. There wasn&#x0027;t any way
                            that you could justify it no matter how you cut it, except that Senator
                            A wanted it.</p>
                    </sp>
                    <sp who="spk2">
                        <speaker n="2">JACK FLEER:</speaker>
                        <p>I was told yesterday in talking to some people in the budget office that
                            there used to be a practice that whenever a particular project received
                            a state allocation, let&#x0027;s say &#x24;50,000 pick a modest
                            number in some people&#x0027;s judgement, the check would actually
                            be made out and given to the legislator who in turn would present it to
                            whatever organization it was.</p>
                    </sp>
                    <sp who="spk1">
                        <speaker n="1">JAMES E. HOLSHOUSER JR.:</speaker>
                        <p>You have seen pictures in the paper of the legislator actually handing
                            the check.</p>
                    </sp>
                    <sp who="spk2">
                        <speaker n="2">JACK FLEER:</speaker>
                        <p>That is right. That is right. That is no longer the case apparently. It
                            sounds that it might be an example of higher ethical or public trust
                            standards today than in the past. Do you have any comment on this? Was
                            the budget officer wrong when he told me about that?</p>
                    </sp>
                    <sp who="spk1">
                        <speaker n="1">JAMES E. HOLSHOUSER JR.:</speaker>
                        <p>I don&#x0027;t think the checks were made out personally to the
                            legislator.</p>
                    </sp>
                    <sp who="spk2">
                        <speaker n="2">JACK FLEER:</speaker>
                        <p>Yes, I didn&#x0027;t actually mean personally.</p>
                    </sp>
                    <sp who="spk1">
                        <speaker n="1">JAMES E. HOLSHOUSER JR.:</speaker>
                        <p>And having been a Republican legislator I never got any checks given to
                            me to give to anybody and it seems to me that that is one of those
                            things that was sort of a phase. May have been during the early 1980s
                            that that happen. Now today from Washington and from Raleigh, the
                            chairman of the county commissioner is going to get a letter from one of
                            our state Senators or representatives saying I am pleased to let you
                            know that the department of so and so has approved a grant for you. That
                            tells you that that legislator has asked the departments to let them
                            know anything that is happening in your district or maybe the cabinet
                            secretaries said to be sure to let the legislators know so <pb id="p18"
                                n="18"/> that they get as much political credit as they can. It
                            depends on how acknowledgeable the public officials are at the local
                            level as to whether they think that letter from the legislator was
                            important or not and that is just part of the political game I think.
                            Part of the advantage of being an incumbent.</p>
                    </sp>
                    <milestone n="9400" unit="empty" type="stop" timestamp="00:42:43"/>
                    <milestone n="9321" unit="excerpt" type="start" timestamp="00:42:44"/>
                    <sp who="spk2">
                        <speaker n="2">JACK FLEER:</speaker>
                        <p>One might argue, I remember in an earlier conversation that we had. I
                            think you quoted a fellow named Andy Jones as saying I don&#x0027;t
                            know why you want to be governor because you make at least an enemy a
                            day. But the other side of that kind of thing as it relates to pork
                            barrel projects is that if you as a legislator or governor are trying to
                            help out some particular local organization with a state allocation that
                            means that money is not going to somebody else and probably also has in
                            their mind a legitimate request in there. So you do run the risk some
                            times of making some people unhappy in that process.</p>
                    </sp>
                    <sp who="spk1">
                        <speaker n="1">JAMES E. HOLSHOUSER JR.:</speaker>
                        <p>And the more discretionary money you have the more those decisions have
                            to be made. I am not big on discretionary money. They tend to be slush
                            funds that are used for less than the best purposes all too often. At
                            the same time the Appalachian Regional Commission and the Coastal
                            Plaines Regional Commission monies from Washington were things that we
                            used very effectively for things that needed to be done and because of
                            the way the state budget was set up couldn&#x0027;t have been done
                            that way in some cases because of timing. When Old Maine, the original
                            Indian structure at Pembroke burned in &#x0027;73 or &#x0027;74,
                            there had already been some talk about that building needed to be torn
                            down and the Indians were all unhappy about it. I had promised them that
                            if I were elected, that I would see that that didn&#x0027;t happen.
                            When it burned down I called Bill Friday and I said just sort of an
                            extension of that promise we needed to try to <pb id="p19" n="19"/>
                            rebuild that building rather than demolishing what is left. Take the
                            walls that are still standing and work from that. I will get you some
                            planning money from Coastal Plains Commission to go ahead and start
                            which is always the first thing you do with people is telling them you
                            will help them a little bit with the money. Otherwise the university
                            would have to come back in the next budget cycle with money for plans
                            for building it; that would have been two or three years down the road.
                            As it turned out they were able to start the planning the next week. And
                            that is effective use of that kind of money. At the same time a lot of
                            it just gets sort of frittered away on things. Because if Joe Jones who
                            is your county manager in X county calls up and says we really got to
                            have something done about our library up here; it is fallen in. An
                            Appalachian Regional Commission has some money that can be used for
                            libraries and so maybe that is not a bad thing. But that might not have
                            been the best use of that money. It ended up there because Joe Jones was
                            your old friend. And government ought to be on a basis of policies not
                            people for the most part. But again, a lot of happens because of the
                            Floyd Crouses of the world.</p>
                    </sp>
                    <milestone n="9321" unit="excerpt" type="stop" timestamp="00:46:16"/>
                    <milestone n="9322" unit="excerpt" type="start" timestamp="00:46:17"/>
                    <sp who="spk2">
                        <speaker n="2">JACK FLEER:</speaker>
                        <p>Right. We do know however it is not possible to take politics out of
                            government. I want to talk with you finally with some questions about
                            your relationship to the political party and the development and
                            particularly of the Republican Party in this state from the time that
                            you were governor. During the time that you were governor one of your
                            stated goals was to help develop a two party system, a stronger
                            Republican party in the state and a two party system in North Carolina.
                            What were you able to do as governor to move toward that goal?</p>
                    </sp>
                    <sp who="spk1">
                        <speaker n="1">JAMES E. HOLSHOUSER JR.:</speaker>
                        <p>Not nearly as much as I would have liked simply because of Watergate.
                            That tainted the Republican party for not a decade but certainly for a
                            couple of elections. <pb id="p20" n="20"/> The 1974 election, 1976
                            election, and 1978 election were all tainted. It was only Ronald
                            Reagan&#x0027;s election in &#x0027;80 that sort of turned that
                            cycle back around. North Carolina&#x0027;s elections are impacted by
                            national elections more than most people realize. If North Carolina
                            doesn&#x0027;t carry the state for president on the Republican
                            ticket, we don&#x0027;t do nearly as well in local and congressional
                            elections. And I came into office with a different background than a lot
                            of governors around the country having been the state chairman for
                            almost six years and sort of seeing the state through those glasses. At
                            the same time I also believe that once the election is over that the
                            best job that you can do for the party is the best job governmentally.
                            So while we went out and did rallies and speeches and different things
                            on the side, from the governmental standpoint, I sort of thought that
                            was over here on one side and politics was over here. While you have got
                            people interested in jobs particularly from lower income areas of the
                            state where government is more an employer of first resort or best
                            resort. That personnel side of government is a function and it is there.
                            But the policy side of government ought to be mostly, can&#x0027;t
                            say non partisan because political philosophy that is involved in a
                            party has to do with how you operate the government. But you
                            don&#x0027;t try to operate the government as the vehicle of the
                            party I guess is the better way to say that. And I know sometimes you
                            can get sounding too high minded with these kind of things. If you have
                            got a political bone in your body which you should if you run for
                            something, you can&#x0027;t help but think about the impact of what
                            you are doing on the political process. There are policy decisions that
                            you make that can definitely effect how the party is perceived not just
                            you as an individual. And I get a little concerned these days that our
                            Republicans are potentially perceived as more libertarian than
                            Republican and more laissez faire than we can afford to be at modern
                            times. But on <pb id="p21" n="21"/> the other hand I know that, if I
                            look back at the evolution of parties over the last forty or fifty years
                            that I have been an adult, I realize that parties are not mondilitic and
                            nobody in any party marches down the same road to the same beat all of
                            the time. There is always that if the umbrella is big enough to be
                            successful that it is going to have people with different stripes and
                            philosophies in it. I think that when you are in office that what you
                            propose and how you vote as a legislator does make a difference in how
                            people perceive that.</p>
                    </sp>
                    <sp who="spk2">
                        <speaker n="2">JACK FLEER:</speaker>
                        <p>Now you talked about, you said that you didn&#x0027;t make quite the
                            progress that you would have like to have because of Watergate. Were
                            there steps as governor that you could take to offset the effect of
                            Watergate on the Republican party in North Carolina and did you take
                            those steps?</p>
                    </sp>
                    <sp who="spk1">
                        <speaker n="1">JAMES E. HOLSHOUSER JR.:</speaker>
                        <p>I don&#x0027;t think there was much. You tried to do what you
                        could.</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>I believe it was the Republican governors&#x0027; conference in
                            Memphis in November of 1973. Nixon had said coming into that particular
                            conference that there were no more surprises. In the next day in the
                            paper was the gap of the tapes of Rosemary Wood&#x0027;s tapes. I
                            just came back and said we are not going to say anything more about
                            this. Because the guy looked us in the eye yesterday and told us
                            something that flat got proved wrong in today&#x0027;s&#x0027;
                            paper. He was bound to have known it was going to get proved wrong. So
                            we are just going to sit tight. And I didn&#x0027;t try to just
                            never go to Washington and distance ourselves from that administration
                            because there was too many things in Washington that still had to get
                            done. Frankly, Washington was in such a state <pb id="p22" n="22"/> of
                            disarray in terms of function that you could only get some things done
                            by going to the cabinet secretary as a rule. Only the governor could
                            probably do that most of the time and say we need this done and he would
                            tell somebody to do it and it got done. But you didn&#x0027;t get
                            any more entwined with the president personally than you had to.</p>
                    </sp>
                    <milestone n="9322" unit="excerpt" type="stop" timestamp="00:53:22"/>
                    <milestone n="9401" unit="empty" type="start" timestamp="00:53:23"/>
                    <sp who="spk2">
                        <speaker n="2">JACK FLEER:</speaker>
                        <p>As far as your effort, if you made it to try to shape the Republican
                            party in North Carolina during that period, what about the resources of
                            the Republican party of North Carolina in itself? How much
                            &#x22;control&#x22; or influence did you as governor have over
                            the party?</p>
                    </sp>
                    <sp who="spk1">
                        <speaker n="1">JAMES E. HOLSHOUSER JR.:</speaker>
                        <p>Well we had of course a major fight over the state chairmanship in the
                            Spring of 1973 and won and put in a state chairman whom I felt
                            comfortable with and was close to. That lasted two years and then
                            another state chairman came in that I felt okay with and had not gone
                            out and recruited and actively promoted around.</p>
                    </sp>
                    <sp who="spk2">
                        <speaker n="2">JACK FLEER:</speaker>
                        <p>Did not recruit the second person?</p>
                    </sp>
                    <sp who="spk1">
                        <speaker n="1">JAMES E. HOLSHOUSER JR.:</speaker>
                        <p>Right. And wasn&#x0027;t unhappy with him. Bob Shaw was fine. And you
                            sort of become a little bit of a lame duck as you go along with that. It
                            is obviously more up front. The main thing there was that you needed
                            some kind of mechanism that if you can get it set up that would allow
                            this business of personnel to be handled in some kind of organized way
                            and the state headquarters has a way it gives a county chairman out here
                            a vehicle to say Joe Jones&#x0027; wife is sick and he has got a
                            bunch of expenses and he needs a job that is going to pay more than what
                            he is getting where he is. The county chairman calls the state chairman
                            and he meets with somebody over in the governor&#x0027;s office that
                            kind of thing periodically. If you can have a state party move in to
                            function like that, it seems like to me that there&#x0027;s a
                            process that helps government by not having government <pb id="p23"
                                n="23"/> constantly involved in this political side. May be kidding
                            myself about that. It may be it just has to happen anyway. But I have
                            always thought that you didn&#x0027;t necessarily have to hire, fill
                            every position with a Republican. Frankly I didn&#x0027;t think we
                            had enough Republicans that wanted jobs to be able to do that. But I
                            thought Republicans who did want jobs that if they were qualified could
                            get just as easily hired. In previous administrations, understandably
                            none of them got hired unless they changed their registration.</p>
                    </sp>
                    <milestone n="9401" unit="empty" type="stop" timestamp="00:56:14"/>
                    <milestone n="9323" unit="excerpt" type="start" timestamp="00:56:15"/>
                    <sp who="spk2">
                        <speaker n="2">JACK FLEER:</speaker>
                        <p>You mentioned that you had a sort of a well publicized row over the
                            selection of the party chair and some of that has happened with
                            subsequent or the subsequent Republican governor. Would you talk a bit
                            about why it appears, I don&#x0027;t know whether this is perception
                            on my part, it appears that Republican governors have had more
                            difficulty in securing chairmen that they want without challenge.</p>
                    </sp>
                    <sp who="spk1">
                        <speaker n="1">JAMES E. HOLSHOUSER JR.:</speaker>
                        <p>I think we are new at it. Democrats have had governors for years, well
                            decades and decades and have gotten use to over time. Maybe it is sort
                            of grown up. I have not done enough research to really know, that the
                            state chairman is just selected by the governor. It is certainly still
                            the case with the Democrats. Republicans have been selecting their state
                            chairmen without anybody being able to tell you what to do forever in my
                            lifetime. It is just something that there wasn&#x0027;t any
                            tradition there. I don&#x0027;t think governors got turned down on
                            their choices of state chairmen on our side but it has not been without
                            a fight.</p>
                    </sp>
                    <sp who="spk2">
                        <speaker n="2">JACK FLEER:</speaker>
                        <p>Does it have anything to do with factions and the difficulty to
                            overcoming factional differences within the Republican Party?</p>
                    </sp>
                    <pb id="p24" n="24"/>
                    <sp who="spk1">
                        <speaker n="1">JAMES E. HOLSHOUSER JR.:</speaker>
                        <p>I think that is a part of it and that goes right down to the county level
                            because you have factions in every county just about. In some cases I
                            have probably said this to you before, if Joe Jones is for you in this
                            county you can be sure that Joe Smith is going to be against you, not
                            because he doesn&#x0027;t know anything about you or
                            doesn&#x0027;t like you. He is just not going to be with Joe Jones.
                            They are always on opposite sides. Maybe that is just the nature of how
                            politics is. That is getting a little bit less clear these days as
                            television is able to sort of bypass the organization posts and go
                            directly to the voters even in the primaries.</p>
                    </sp>
                    <milestone n="9323" unit="excerpt" type="stop" timestamp="00:58:37"/>
                    <milestone n="9324" unit="excerpt" type="start" timestamp="00:58:38"/>
                    <sp who="spk2">
                        <speaker n="2">JACK FLEER:</speaker>
                        <p>To what extent has the Republican Party fulfilled the expectations you
                            had when you were governor of North Carolina? Has it met those
                            expectations or exceeded them or not reached them?</p>
                    </sp>
                    <sp who="spk1">
                        <speaker n="1">JAMES E. HOLSHOUSER JR.:</speaker>
                        <p>I am really pleased. I feel like a real sense of personal satisfaction
                            there. I think we have built a two party state. I think that is good for
                            North Carolina. It is sort of hard to say it in a succinct, correct way
                            Jack. But I am a Republican who made that conscious choice
                            philosophically about how I view government. We talked about that big
                            umbrella that I don&#x0027;t feel always comfortable with what my
                            party is doing. I would feel less comfortable as a Democrat although
                            there are times that I feel more comfortable with, an immediate Democrat
                            position than I do a Republican position some places. But I think that
                            the higher part of what I was about in that part of my life was building
                            a two party system as such. I told Pat when I&#x0027;d come home
                            from a state&#x0027;s chairmen&#x0027;s meeting some time or
                            another and I had heard a chairman from Indiana or Ohio or something
                            talk about government and how it was and I came home and said you know
                            he sounds just like the Democrats. Had to be his approach to this. They
                            had been in control for so long and <pb id="p25" n="25"/> how their
                            patronage machine was set up and how the contribution machine was set
                            up. I said in that state I probably would be a Democrat. I doubt I know
                            that is probably not so because philosophically I wouldn&#x0027;t
                            move in that direction. At the same time I have always thought that
                            balance helps the political process and that one party government is
                            just not good even when it is Republican.</p>
                    </sp>
                    <sp who="spk2">
                        <speaker n="2">JACK FLEER:</speaker>
                        <p>Do you think that the advances that the Republican Party has made,
                            let&#x0027;s say by 1998 when we are talking, are greater or lesser
                            than what you would have anticipated in 1970, in the state I am talking
                            about?</p>
                    </sp>
                    <sp who="spk1">
                        <speaker n="1">JAMES E. HOLSHOUSER JR.:</speaker>
                        <p>If you had asked me in January of 1973 I would have one opinion. By 1976
                            having seen the full impact of Watergate and how much of an impact it
                            had, I am extremely pleased that that rebound came in the 1980s. By the
                            1990s we had a majority in one of the houses of the legislature. We
                            haven&#x0027;t elected many Council of State people. That is the
                            only area where we are sort of short.. We have elected judges, which is
                            sort of another case, because I don&#x0027;t think they ought to be
                            elected. That is an evolutionary process from 1982. But I thought it
                            would be long time before we elected a majority in the legislature.</p>
                    </sp>
                    <milestone n="9324" unit="excerpt" type="stop" timestamp="01:01:57"/>
                    <milestone n="9325" unit="excerpt" type="start" timestamp="01:01:58"/>
                    <sp who="spk2">
                        <speaker n="2">JACK FLEER:</speaker>
                        <p>Do you think the Republican party is more or less cohesive today than
                            what it was in the 1970s? Is it more factionally ridden today than what
                            it was in the past?</p>
                    </sp>
                    <sp who="spk1">
                        <speaker n="1">JAMES E. HOLSHOUSER JR.:</speaker>
                        <p>It is different. In the &#x0027;70s there were two pretty clear
                            factions. I shouldn&#x0027;t say the &#x0027;70s, in the
                            &#x0027;60s there were two pretty clear factions. As we have grown
                            and the base has grown, let me back up a minute on the legislative
                            thing. I thought we had the potential to elect the governor, to elect
                            congressmen, to elect a US senator, before we elect the legislature
                            simply because that requires a base in so many legislative districts <pb
                                id="p26" n="26"/> across the state that I thought it would come
                            last. The lines have blurred in some ways and have changed in some ways.
                            The issues in the &#x0027;60s just aren&#x0027;t the issues in
                            the 1990s. I think probably the single thing that sort of juts out at
                            you that has happen in this period of time is the growth of the
                            Christian Coalition. There have always been people who were concerned
                            about social issues on either side of the spectrum. At the same time
                            that in the 1960s and early 1970s I think the left side of those social
                            issues was more organized. I served in the late 1970s and early 1980s on
                            a thing called the Council on Theology and Culture of the Southern
                            Presbyterian Church. I went to the meeting as part of that which was
                            held in Washington in the early 1980s. George Chancey was basically a
                            lobbyist for the Presbyterian Church in Washington at that time. But
                            this was a multi-denominational thing. They were trying to organize a
                            network in which if an issue came up in Congress you could send out
                            wires to everybody and all of these networks would go out and everybody
                            would write their congressmen back. And almost every issue that they
                            talked about and position they were taking I was against. I came home
                            feeling really bad about that. On the other hand in the 1980s and 1990s,
                            you have seen the growth on the more conservative side of the social
                            issues and it has been more visible than the left ever was I think. That
                            may be simply because the media didn&#x0027;t view the left
                            organization with fear whereas they do the right. I think what concerns
                            me the most about both sides is the lack of tolerance for the other
                            position. I wish I was as convinced of my own and certain about my own
                            religious feelings as most of the people are in those organizations on
                            either side. Life would be a lot easier if you didn&#x0027;t have to
                            struggle with some of these things.</p>
                    </sp>
                    <pb id="p27" n="27"/>
                    <sp who="spk2">
                        <speaker n="2">JACK FLEER:</speaker>
                        <p>Separate from, let me ask you, is separate from the Christian Coalition
                            and the social conservatives that you talked about, a faction that for
                            lack of a better term is referred to Libertarian?</p>
                    </sp>
                    <sp who="spk1">
                        <speaker n="1">JAMES E. HOLSHOUSER JR.:</speaker>
                        <p>Definitely is and those two necessarily don&#x0027;t go hand and
                            hand. They both are a little bit out of a mainstream in a sense.
                            Although the Christian Coalition&#x0027;s growth has made it more
                            mainstream than it would have been at one time and Ralph Reed and people
                            like that have made it more that way. There is definitely a laissez
                            faire libertarian approach that says let the private sector do its thing
                            and get out of the way. The less government the better. In an early day,
                            a less complex day, I would probably have felt more like that than I do
                            today. I still feel just like Lincoln. The government ought not do the
                            things, people things, that people can do as well for themselves. But
                            there are just so many issues today that people can&#x0027;t handle
                            from a private sector&#x0027;s standpoint. Even though I am not a
                            tree hugger in a sense I think the environment is one of those things;
                            that acid rain doesn&#x0027;t stop at state lines or county lines.
                            What may be contaminating the stream down in my neighborhood may be the
                            direct results of what is happening up in your neighborhood. So I think
                            government does play more of a role today than it did in
                            Lincoln&#x0027;s time.</p>
                    </sp>
                    <sp who="spk2">
                        <speaker n="2">JACK FLEER:</speaker>
                        <p>Does and has to, you are saying because of</p>
                    </sp>
                    <sp who="spk1">
                        <speaker n="1">JAMES E. HOLSHOUSER JR.:</speaker>
                        <p>Yes I think it does. Those who take position of a less government the
                            better and I have heard that stated directly by a young legislator in
                            the east about ten years ago I guess. I understand the point of view
                            that they have; I just don&#x0027;t agree with that.</p>
                    </sp>
                    <pb id="p28" n="28"/>
                    <sp who="spk2">
                        <speaker n="2">JACK FLEER:</speaker>
                        <p>So in a sense as we talk about your history with the Republican party, it
                            probably has made more advances, more quickly than what you had expected
                            back in the 1960s and 1970s but it has become a much more complicated
                            party.</p>
                    </sp>
                    <sp who="spk1">
                        <speaker n="1">JAMES E. HOLSHOUSER JR.:</speaker>
                        <p>It has, it has and the bigger you get, the more viable force you are, the
                            more that is going to be the case just by the natural demographics of
                            things. People get into politics for different reasons. Some of them get
                            into politics simply because they see it as the only way they have any
                            hope of getting done something they want to do, good or bad.</p>
                    </sp>
                    <sp who="spk2">
                        <speaker n="2">JACK FLEER:</speaker>
                        <p>Governor thank you very much.</p>
                    </sp>
                    <p>
                        <note anchored="yes">
                            <p>END OF INTERVIEW</p>
                        </note>
                    </p>
                    <milestone n="9325" unit="excerpt" type="stop" timestamp="01:09:41"/>

                </div2>
            </div1>
        </body>
    </text>
</TEI.2>

