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                    <hi rend="bold">Oral History Interview with James E. Holshouser Jr., May 9,

                        1998. Interview C-0328-3. Southern Oral History Program Collection

                    (#4007):</hi> Electronic Edition. </title>

                <title type="descriptive">Politics and the Party: A Former Governor&#x0027;s

                    Thoughts on North Carolina</title>

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                    <name id="hj" reg="Holshouser, James E., Jr." type="interviewee">Holshouser,

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                        <title type="recording">Oral History Interview with James E. Holshouser Jr.,

                            May 9, 1998. Interview C-0328-3. Southern Oral History Program

                            Collection (#4007)</title>

                        <title type="series">Series C. Notable North Carolinians. Southern Oral

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                        <author>Jack Fleer</author>

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                        <pubPlace>Chapel Hill, N. C.</pubPlace>

                        <publisher>Southern Historical Collection, University of North Carolina at

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                        <date>9 May 1998</date>

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                        <title type="transcript">Oral History Interview with James E. Holshouser

                            Jr., May 9, 1998. Interview C-0328-3. Southern Oral History Program

                            Collection (#4007)</title>

                        <title type="series">Series C. Notable North Carolinians. Southern Oral

                            History Program Collection (C-0328-3)</title>

                        <author>James E. Holshouser Jr.</author>

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                    <extent>36 p.</extent>

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                        <publisher>Southern Historical Collection, University of North Carolina at

                            Chapel Hill</publisher>

                        <pubPlace>Chapel Hill, North Carolina</pubPlace>

                        <date>9 May 1998</date>

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                        <note anchored="no">Interview conducted on May 9, 1998, by Jack Fleer;

                            recorded in Unknown.</note>

                        <note anchored="no"> Transcribed by Unknown.</note>

                        <note anchored="no"> Forms part of: Southern Oral History Program Collection

                            (#4007): Series C. Notable North Carolinians, Manuscripts Department,

                            University of North Carolina at Chapel Hill.</note>

                        <note anchored="no">Original transcript on deposit at the Southern

                            Historical Collection, The Wilson Library, University of North Carolina

                            at Chapel Hill.</note>

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    <text id="ohs_C-0328-3">

        <front>

            <div1 type="about_interview">

                <head>Interview with James E. Holshouser Jr., May 9, 1998. Interview C-0328-3.</head>

                <byline>Conducted by Jack Fleer</byline>

                <note type="deposit" anchored="no">

                    <p>Transcript on deposit at The Southern Historical Collection, The Louis Round

                        Wilson Library</p>

                </note>

                <note type="citation" anchored="no">

                    <p>Citation of this interview should be as follows: <lb/>“Interview C-0328-3, in

                        the Southern Oral History Program Collection #4007, <lb/>Southern Historical

                        Collection, The Wilson Library, <lb/>University of North Carolina at Chapel

                        Hill”</p>

                </note>

                <note type="copyright" anchored="no">Copyright © 2008 The University of North

                    Carolina</note>

                <note type="transcription_note" anchored="no"/>

            </div1>

            <div1 type="abstract">

                <head>Abstract</head>

                <p>In 1972, James E. Holshouser Jr. became the first Republican elected governor of

                    North Carolina since 1896. In his four-year term, Holshouser faced the unique

                    challenge of reintroducing the Republican Party to a leadership position in

                    Raleigh. In this interview, he describes that challenge, reflects on his term,

                    and considers some of the changes that took place between his departure from the

                    governor&#x0027;s mansion and the time of this 1998 interview. The most

                    significant challenge Holshouser addresses is the personal strain of a job that

                    demanded constant attention. He remembers disappointments such as his failed

                    effort to shepherd Gerald Ford to the Republican nomination in 1980, and a

                    deteriorating relationship with the media. After he left office in 1977, he

                    observed as the influence of money grew, often disbursed by political action

                    committees pushing an increasing number of different interests; he saw the

                    Republican Party grow in complexity as ideological divisions replaced regional

                    ones; and he watched the decline of the citizen-politician, as politics became a

                    profession rather than a calling. Holshouser also considers his legacy,

                    including his contributions to transportation, health, and the environment. As

                    he reflects on these changes and challenges, Holshouser reveals himself as a

                    consensus-builder and something of a pragmatist, a politician suspicious of

                    ideology and in favor of a robust two-party system. This interview will be

                    useful for students of North Carolina politics and those interested in one of

                    the state&#x0027;s few Republican governors of the modern era.</p>

            </div1>

            <div1 type="short_abstract">

                <head>Short Abstract</head>

                <p>James E. Holshouser Jr., North Carolina&#x0027;s governor from 1973 to 1977,

                    reflects on his term, the Republican Party, and North Carolina politics.</p>

            </div1>

        </front>

        <body>

            <div1 id="C-0328-3" type="sohp_interview">

                <head>Interview with James E. Holshouser Jr., May 9, 1998. <lb/>Interview C-0328-3.

                    Southern Oral History Program Collection (#4007)</head>

                <list type="simple">

                    <head>Interview Participants</head>

                    <item>

                        <name id="spk1" key="jh" reg="Holshouser, James E., Jr." type="interviewee"

                            >JAMES E. HOLSHOUSER JR.</name>, interviewee</item>

                    <item>

                        <name id="spk2" key="jf" reg="Fleer, Jack" type="interviewer">JACK

                        FLEER</name>, interviewer</item>

                </list>

                <div2 id="tape1-a" n="1-A" type="tape_side">

                    <pb id="p1" n="1"/>

                    <head>[TAPE 1, SIDE A]</head>

                    <note anchored="yes">

                        <p>[START OF TAPE 1, SIDE A]</p>

                    </note>



                    <milestone n="9390" unit="empty" type="start" timestamp="00:00:00"/>

                    <sp who="spk1">

                        <speaker n="1">JAMES E. HOLSHOUSER JR.:</speaker>

                        <p>A) the medical school has been a good asset for the state and B) we ran a

                            serious risk that by fighting that fight and losing we might have a

                            serious chink in the armor of the structure open up; fortunately it

                            didn&#x0027;t.</p>

                    </sp>

                    <milestone n="9390" unit="empty" type="stop" timestamp="00:00:31"/>

                    <milestone n="9203" unit="excerpt" type="start" timestamp="00:00:32"/>

                    <sp who="spk2">

                        <speaker n="2">JACK FLEER:</speaker>

                        <p>What do you see, if any, disappointments in your administration?</p>

                    </sp>

                    <sp who="spk1">

                        <speaker n="1">JAMES E. HOLSHOUSER JR.:</speaker>

                        <p>We didn&#x0027;t get the mountain area management act through.

                            Because of the Watergate timing, we really weren&#x0027;t able to

                            lay the groundwork for immediate competitive challenge by the

                            Republicans for the governorship in 1976. David Flaherty ran a good

                            campaign and is good a guy; but nobody could have won that year. I was

                            disappointed about that. At the same time, you know I have a different

                            perspective after twenty years. It certainly laid the groundwork. When

                            we got past that, North Carolina went to Reagan in 1980 and 1984, we

                            elected Jim Martin in 1984, and elected the Republican legislature in

                            1994. It has taken time, but we have crossed over barriers and you have

                            to feel good about that. And again, not that I view myself as the

                            builder of the Republican party so much as hopefully the builder of a

                            two party system which is good for the state. And I feel pretty good

                            about the fact that we did some, a second stage, jump start for the

                            community college system with the extra capital dollars that was there

                            and has carried over some practice to keep that energized. We are still

                            ahead of a lot of states although we could do more out there.</p>

                    </sp>

                    <sp who="spk2">

                        <speaker n="2">JACK FLEER:</speaker>

                        <p>So the mountain area management bill would be your major sort of

                            substantive disappointment. Why did that happen?</p>

                    </sp>

                    <sp who="spk1">

                        <speaker n="1">JAMES E. HOLSHOUSER JR.:</speaker>

                        <p>Lost the Republicans from the mountains. Could not hold the coalition

                            together. Didn&#x0027;t have any from the coast to start with on the

                            coastal bill. We got the <pb id="p2" n="2"/> Piedmont from both parties.

                            The Republicans from the mountains passed that and the Piedmont people

                            stayed in place on the mountain act. The coastal people

                            weren&#x0027;t going to vote for any more than they did for their

                            own because they were mad. I said mad, they already had a mind set

                            against it and the mountain people just had that populist thing about a

                            man doing what he wanted to with his own land.</p>

                    </sp>

                    <sp who="spk2">

                        <speaker n="2">JACK FLEER:</speaker>

                        <p>A man&#x0027;s home is his castle.</p>

                    </sp>

                    <sp who="spk1">

                        <speaker n="1">JAMES E. HOLSHOUSER JR.:</speaker>

                        <p>That is right. And I look back. It is hard to know how much overall

                            impact there is on things. We set up because what we called

                            people&#x0027;s days to go around once a month to some place and

                            just listen to people come in, first come first serve. Early on that had

                            some good things but as it went on the last couple of years I say it

                            seemed to be more people wanting their road paved or a son out of prison

                            or wanted you to take out the plate that the FBI put in there and was

                            listening to every thought they had. You had those three categories that

                            seemed to become more and more of the thing. I didn&#x0027;t feel as

                            good about it later on. It was a good ombudsman approach to give people

                            a chance to get heard if they were just getting lost in the system.</p>

                    </sp>

                    <milestone n="9203" unit="excerpt" type="stop" timestamp="00:04:14"/>

                    <milestone n="9391" unit="empty" type="start" timestamp="00:04:15"/>

                    <sp who="spk2">

                        <speaker n="2">JACK FLEER:</speaker>

                        <p>Other than the people&#x0027;s day that was a program of your going

                            out to various communities, you did set up the ombudsman&#x0027;s

                            office within the Office of the Governor. Did you feel that it

                            functioned better than the people&#x0027;s days in that regard?</p>

                    </sp>

                    <sp who="spk1">

                        <speaker n="1">JAMES E. HOLSHOUSER JR.:</speaker>

                        <p>Yes, very much so. Of course the staff in that office went out for

                            people&#x0027;s day and they had the job of following up on that.

                            Anything that came into the governor&#x0027;s office that looked

                            like a prior complaint hadn&#x0027;t been responded to at all went

                            over there. They had to contact the cabinet people. That is probably,

                            you were talking earlier about not necessarily a conflict, a control in

                            the administration. I think the folks in that office <pb id="p3" n="3"/>

                            were genuine young and energetic go getters. Don Quixote types almost,

                            partner like place, who kept a lot of things from slipping in the

                            cracks. That helped as much as anything probably in terms of public

                            attitudes about the administration.</p>

                    </sp>

                    <sp who="spk2">

                        <speaker n="2">JACK FLEER:</speaker>

                        <p>One could argue that given the declining trust, in a sense faith, that

                            people have had in government over the last say twenty or twenty five

                            years that having that kind of an office with, even some energetic Don

                            Quixotes, becomes an important antidote to that feeling.</p>

                    </sp>

                    <sp who="spk1">

                        <speaker n="1">JAMES E. HOLSHOUSER JR.:</speaker>

                        <p>That is right and there needs to be the right kind of attitude. You have

                            got legal services set up in regions across the state who end up suing

                            the government. I have always thought that some how that was wrong, to

                            take public dollars and sue yourself. But at the same time you have got

                            people who can be part of the administration in the broadest kind of

                            sense but really have the sole purpose of keeping track of the problems

                            that are just getting lost out there. Or in a few cases where somebody

                            who was just, in one of the departments who was deliberately sitting on

                            something because they just didn&#x0027;t want to do it. That

                            wasn&#x0027;t often but sometimes.</p>

                    </sp>

                    <milestone n="9391" unit="empty" type="stop" timestamp="00:06:39"/>

                    <milestone n="9204" unit="excerpt" type="start" timestamp="00:06:40"/>

                    <sp who="spk2">

                        <speaker n="2">JACK FLEER:</speaker>

                        <p>I want to talk finally about the impact of being governor on you as a

                            person and on your family. What do you see has been the impact of being

                            governor? What was it while you were governor and what has it been since

                            on you as an individual?</p>

                    </sp>

                    <sp who="spk1">

                        <speaker n="1">JAMES E. HOLSHOUSER JR.:</speaker>

                        <p>Well during the governorship you move from being just one of the fellows

                            to being the guy in the fish bowl all of the time and the family in the

                            fish bowl all the time. It has a serious impact on the wife and kids.

                            That is an impact that probably will last with them for a lifetime. In

                            one sense, it gives the governor something that you can&#x0027;t

                            lose, unless you throw it away and nobody can take away from you by the

                            fact that <pb id="p4" n="4"/> you got elected even if it is a total

                            accident. And that gives you I think a confidence. I think whether it is

                            deserved or not, it lets you see life in a little bit different

                            perspective. It has people seeing you in somewhat of a different

                            perspective. If you leave office and go out and get yourself convicted

                            of embezzling an investment of &#x24;100,000 from somebody or get

                            charged with sexual molestation of minors or whatever, you are going to

                            lose that. You have some potential to lose some of it if you come back

                            and try to run again and lose as Bob [Scott] did, against Jim Hunt.

                            Although I find for the most part those scars are probably felt just

                            inside of him and I am not sure that they are there. I think that most

                            people have sort of forgotten that; but it is just not in front of their

                            minds all of the time. They just view Bob as the former governor. I

                            think he is just as well regarded as others in spite of that loss.

                            Hadn&#x0027;t changed the fact that he knows a lot about government,

                            knows an awful lot of people, that kind of thing. Just the sheer fact of

                            running, if you run right, gives you a whole new perspective on the

                            state, how big it is and how long it is, all different parts of it.

                            Serving heightens that I think. It is nice to know that if my car breaks

                            down somewhere in the night any place, there is going to be somebody out

                            there I know who can come give me a place to spend the night. I think it

                            gives you a sense of public duty that doesn&#x0027;t stop when you

                            leave office. Part of it won&#x0027;t let you. Dan Moore told me one

                            time you can&#x0027;t ever quit being Governor. A lot of people who

                            helped you along the line still call and ask for you to do something.

                            You just can&#x0027;t say no. I am going over to Rowan County next

                            Saturday night to a Republican dinner, post primaries, I think. There is

                            not a single thing that says I should do that, except I just know

                            inside, I can&#x0027;t not do it.</p>

                    </sp>

                    <pb id="p5" n="5"/>

                    <sp who="spk2">

                        <speaker n="2">JACK FLEER:</speaker>

                        <p>You said it has a serious impact on family. Can you talk about that a

                            little bit more?</p>

                    </sp>

                    <sp who="spk1">

                        <speaker n="1">JAMES E. HOLSHOUSER JR.:</speaker>

                        <p>Well, I think wives have the hardest time during the administration. The

                            governor has lots of people pulling and tugging and people wanting him

                            to do things. You have got things to keep you busy. When the newspapers

                            shoot at you you either address that or ignore it whatever. But the wife

                            can&#x0027;t do a thing but just sit there and take it. It is harder

                            having somebody say something about the person you love than having it

                            said about you in a way, at least that is how I feel. I

                            haven&#x0027;t had many people say bad things about Pat so

                            I&#x0027;ll speak from experience. That is how it seems. Over the

                            years I have watched spouses have much more a difficult time with events

                            than the people who are directly involved. For our daughter, the four

                            years was a lot of good things. She got to see parts of the country and

                            the world that she couldn&#x0027;t see otherwise. Had a whole

                            different perspective about the highway patrol because they were around

                            all the time. She considers them her best buddies. She also has no

                            hesitancy about walking up to any state agency and walking through the

                            front door or calling and saying I have got to come see you about

                            something.</p>

                    </sp>

                    <sp who="spk2">

                        <speaker n="2">JACK FLEER:</speaker>

                        <p>Now.</p>

                    </sp>

                    <sp who="spk1">

                        <speaker n="1">JAMES E. HOLSHOUSER JR.:</speaker>

                        <p>Yes. And she would not hesitate to pick up the phone and call Carolyn

                            Hunt about something. I am not sure she has but I know she

                            wouldn&#x0027;t hesitate.</p>

                    </sp>

                    <sp who="spk2">

                        <speaker n="2">JACK FLEER:</speaker>

                        <p>It is the confidence to do that.</p>

                    </sp>

                    <sp who="spk1">

                        <speaker n="1">JAMES E. HOLSHOUSER JR.:</speaker>

                        <p>And yet she endured some things during those four years just because she

                            was always the governor&#x0027;s daughter wherever she went to

                            school and that set her apart. There were some down sides to that that

                            weren&#x0027;t serious fortunately. But it is things that I <pb

                                id="p6" n="6"/> think parents have to work really hard not to let

                            kids get sort of lost in all of this that is going on.</p>

                    </sp>

                    <sp who="spk2">

                        <speaker n="2">JACK FLEER:</speaker>

                        <p>I remember you saying earlier that whenever you finally decided to run

                            for the office of governor you said to your wife, you either have to run

                            for governor or get out of politics, things had come to that level. So I

                            assume that your wife and by extension that your daughter was part of

                            the decision to run for the office.</p>

                    </sp>

                    <sp who="spk1">

                        <speaker n="1">JAMES E. HOLSHOUSER JR.:</speaker>

                        <p>Well Ginny wasn&#x0027;t. Pat definitely was and she had been

                            supportive all the way through. And my father, even though he

                            didn&#x0027;t think I stood a prayer I don&#x0027;t think, once

                            I decided that I was going to do it, supported me all the way. When I

                            say all the way he signed a second mortgage on our house and he signed a

                            note.</p>

                    </sp>

                    <sp who="spk2">

                        <speaker n="2">JACK FLEER:</speaker>

                        <p>On the line for it?</p>

                    </sp>

                    <sp who="spk1">

                        <speaker n="1">JAMES E. HOLSHOUSER JR.:</speaker>

                        <p>That is right. Put your money where your mouth is or a risk of losing

                            money. He and my mother looked after Ginny during the time that Pat and

                            I were both on the road during the campaign. I am not sure that we

                            appreciated how much effort that they put in during that year. Even

                            after it was over with. It was one of those things that you do inside

                            the family, just a normal thing that was happening. But looking back,

                            they probably did as much for that campaign as anybody just in terms of

                            looking after our daughter and looking after all the things that I

                            couldn&#x0027;t look after and Pat couldn&#x0027;t look after

                            because we were gone.</p>

                    </sp>

                    <sp who="spk2">

                        <speaker n="2">JACK FLEER:</speaker>

                        <p>Did you take any special measures or decisions to try to maintain some

                            kind of &#x22;normal&#x22; family life?</p>

                    </sp>

                    <sp who="spk1">

                        <speaker n="1">JAMES E. HOLSHOUSER JR.:</speaker>

                        <p>Well I suspect that Pat probably did more thinking about that than I did.

                            We made a point of having breakfast every morning together. That

                            wasn&#x0027;t the case at <pb id="p7" n="7"/> dinners that you

                            attended where you had people coming in and Ginny couldn&#x0027;t be

                            part of that. And we made a point of marking on the calendar when she

                            was going to have some kind of event at school so that I

                            wasn&#x0027;t off in Charlotte or Timbuktu. Because you have got

                            some places you can go every night you just have to schedule those that

                            you have to work around with all the rest. And it is, I think Pat was

                            relieved to get out of the spotlight fish bowl and she would not be

                            enthusiastic if I decided I wanted to run again. She would probably say

                            I have been there and I didn&#x0027;t particularly enjoy it the

                            first time and I know I don&#x0027;t want to do it again. She would

                            probably do it if I really got my heart into it. She probably would do

                            it with enthusiasm to help win once we got into it. But up until I

                            decided she would be encouraging me not to do it probably. Ginny on the

                            other hand I think if the situation arrived would love to run for

                            office.</p>

                    </sp>

                    <milestone n="9204" unit="excerpt" type="stop" timestamp="00:16:19"/>

                    <milestone n="9392" unit="empty" type="start" timestamp="00:16:20"/>

                    <sp who="spk2">

                        <speaker n="2">JACK FLEER:</speaker>

                        <p>Herself.</p>

                    </sp>

                    <sp who="spk1">

                        <speaker n="1">JAMES E. HOLSHOUSER JR.:</speaker>

                        <p>Yes. And I don&#x0027;t think that she had thought of herself as the

                            first female governor. But I think she would love to run for the

                            legislature.</p>

                    </sp>

                    <sp who="spk2">

                        <speaker n="2">JACK FLEER:</speaker>

                        <p>So it did not create in her a negative attitude towards public life?</p>

                    </sp>

                    <sp who="spk1">

                        <speaker n="1">JAMES E. HOLSHOUSER JR.:</speaker>

                        <p>No. I have seen those tracks around. She has been involved in four or

                            five nonprofits in Surrey, Stokes and Forsyth counties. Some of my

                            Republican friends in Stokes say, &#x22;Boy your daughter is just a

                            natural. She comes before the county commission for her agency. She is

                            always the one they send over there and she says she gets up and makes

                            her pitch. You just can&#x0027;t say no.&#x22;</p>

                    </sp>

                    <sp who="spk2">

                        <speaker n="2">JACK FLEER:</speaker>

                        <p>Isn&#x0027;t that wonderful. She learned from the experience. </p>

                        <milestone n="9392" unit="empty" type="stop" timestamp="00:17:08"/>

                        <milestone n="9205" unit="excerpt" type="start" timestamp="00:17:09"/>

                        <p>Did you take any special efforts to, let&#x0027;s say for example,

                            guarantee vacation time or things of that type?</p>

                    </sp>

                    <pb id="p8" n="8"/>

                    <sp who="spk1">

                        <speaker n="1">JAMES E. HOLSHOUSER JR.:</speaker>

                        <p>Yes, we always left North Carolina the day after Christmas and went to

                            Ft. Lauderdale and spent from Christmas to New Years as a family. We

                            took two weeks off in the summertime and went to the western residence.

                            When we went to Florida, we didn&#x0027;t have any security people,

                            no staff or anything, just the three of us got on the airplane and went.

                            When I say the airplane, commercial flight, probably could have got away

                            with the other, just didn&#x0027;t. And Ned Cline of the Greensboro

                            paper one time got on to a rumor that some business man was setting us

                            up at his private abode down in Florida, thought we were on the take

                            about something and snooped around and snooped around. I finally said,

                            Ned I am not going to tell you where I go because I don&#x0027;t

                            want any phone calls ever down there. But I can tell you this, we flew

                            commercial, we stayed in a commercial motel, we have paid for ourselves,

                            paid for the plane flight, paid for the meals and there is just nothing

                            to it. He had traveled enough with me during the campaign that he knew

                            if I had told him that it was so.</p>

                    </sp>

                    <sp who="spk2">

                        <speaker n="2">JACK FLEER:</speaker>

                        <p>Is it the lack of privacy that you think is the most serious

                            &#x22;negative,&#x22; if there is a negative, or is it something

                            else?</p>

                    </sp>

                    <sp who="spk1">

                        <speaker n="1">JAMES E. HOLSHOUSER JR.:</speaker>

                        <p>Well, for the wife there is going to be about as many demands on her.

                            Plus, she has always got the governor&#x0027;s staff calling over

                            saying you need to do this and you need to do that and most of the

                            time&#x2026;</p>

                    </sp>

                    <sp who="spk2">

                        <speaker n="2">JACK FLEER:</speaker>

                        <p>Public functions she should perform?</p>

                    </sp>

                    <sp who="spk1">

                        <speaker n="1">JAMES E. HOLSHOUSER JR.:</speaker>

                        <p>Yes, or something that she ought to do. She probably knows as well as

                            they know whether she should do it or not. And when she gets criticized

                            and she got criticized a few times, three or four times in the four

                            years about something. Really upset her and it upset me too. Those were

                            just passing things. You just said. &#x22;It&#x0027;s a bad <pb

                                id="p9" n="9"/> editorial,&#x22; go on to tomorrow. If you think

                            you did the right thing don&#x0027;t second guess yourself. I think

                            the overall experience for all three of us though is that we look at

                            life a different way. Now she has still got the same core of interests

                            that she had before I ever got involved with politics, before we ever

                            got engaged, this nursing. And while she focused in on Hospice over the

                            last decade or so, that has always been her first love in a sense. While

                            there was a lot about politics she enjoyed and we both made a lot of

                            friends, I think she has been glad to get back to that.</p>

                    </sp>

                    <milestone n="9205" unit="excerpt" type="stop" timestamp="00:20:37"/>

                    <milestone n="9393" unit="empty" type="start" timestamp="00:20:38"/>

                    <sp who="spk2">

                        <speaker n="2">JACK FLEER:</speaker>

                        <p>It was not something that she could continue while she was in the

                        office?</p>

                    </sp>

                    <sp who="spk1">

                        <speaker n="1">JAMES E. HOLSHOUSER JR.:</speaker>

                        <p>That is right.</p>

                    </sp>

                    <sp who="spk2">

                        <speaker n="2">JACK FLEER:</speaker>

                        <p>The &#x22;office&#x22; that she occupied while you were in

                            office.</p>

                    </sp>

                    <sp who="spk1">

                        <speaker n="1">JAMES E. HOLSHOUSER JR.:</speaker>

                        <p>She went back to nursing school the last quarter we were in Raleigh

                            because I had dragged her out of nursing school and up to Appalachian

                            when we got engaged. So she hadn&#x0027;t got her nursing

                        degree.</p>

                    </sp>

                    <sp who="spk2">

                        <speaker n="2">JACK FLEER:</speaker>

                        <p>Oh I didn&#x0027;t realize she had not completed.</p>

                    </sp>

                    <sp who="spk1">

                        <speaker n="1">JAMES E. HOLSHOUSER JR.:</speaker>

                        <p>Right. So she started then and finished that during the first year we

                            were out of office and later got her masters in nursing in Chapel Hill,

                            commuting back and forth.</p>

                    </sp>

                    <sp who="spk2">

                        <speaker n="2">JACK FLEER:</speaker>

                        <p>My wife did something like that, it is not easy. Did she, let me rephrase

                            this. </p>

                        <milestone n="9393" unit="empty" type="stop" timestamp="00:21:26"/>

                        <milestone n="9206" unit="excerpt" type="start" timestamp="00:21:27"/>

                        <p>You mentioned it was the demands on the time. Were there other aspects of

                            it that made it difficult?</p>

                    </sp>

                    <sp who="spk1">

                        <speaker n="1">JAMES E. HOLSHOUSER JR.:</speaker>

                        <p>Well, you really don&#x0027;t have a personal life during that

                            stretch of time and I think that is one of those things that I may have

                            said before. I learned during the campaign that I could push myself

                            beyond the limits that I thought I could go once as <pb id="p10" n="10"

                            /> long as I knew that it was going to end. That it was a short-term

                            thing. You could see the light at the end of the tunnel whether it was a

                            train or whatever. That win or lose on election day that pace was going

                            to stop and I think that is how we both felt about the four years. That

                            we had to give our best for four solid years because you

                            couldn&#x0027;t run for reelection. You didn&#x0027;t have to

                            worry about that. We were both figuring on going back to Boone. Turned

                            out we didn&#x0027;t. I believe that is what makes that manageable.

                            I think the lack of that is what makes so many marriages go bad in

                            Congress because that just goes on and on and on. I think there are a

                            lot of marriages that would survive had they not had that strain on them

                            in Congress. A lot of marriages have survived but it is because

                            somewhere a long the line I think the couples make a pact that this is

                            something that they are going to agree to do forever.</p>

                    </sp>

                    <sp who="spk2">

                        <speaker n="2">JACK FLEER:</speaker>

                        <p>You in a sense were on call for twenty four hours as governor.</p>

                    </sp>

                    <sp who="spk1">

                        <speaker n="1">JAMES E. HOLSHOUSER JR.:</speaker>

                        <p>That is right.</p>

                    </sp>

                    <sp who="spk2">

                        <speaker n="2">JACK FLEER:</speaker>

                        <p>and in a sense your wife and probably not your daughter since she was so

                            young. Is there anything that can be done about that to make being

                            governor somewhat more possible?</p>

                    </sp>

                    <sp who="spk1">

                        <speaker n="1">JAMES E. HOLSHOUSER JR.:</speaker>

                        <p>I don&#x0027;t think so. I mean you don&#x0027;t have but one guy

                            who is head of the national guard, head of the highway patrol, so to

                            speak, if something is to happen. That is the reason that it never

                            bothered me much about taking a state plane or the highway patrol

                            wherever I was going even if it was for a political event. You

                            can&#x0027;t do that anymore I don&#x0027;t think because people

                            fuss at you. But they didn&#x0027;t fuss then. Jim Martin over did

                            it. He said if there were any politics involved in any part of the trip,

                            the campaign fund had to apy for all of it. Where I didn&#x0027;t

                            even stop at the other extreme of saying that if any part <pb id="p11"

                                n="11"/> of it was government then government could pay for it. No

                            part of it was government I still had to pay for it and I still

                            don&#x0027;t think that was wrong. But I know I would get some

                            disagreement on that today.</p>

                    </sp>

                    <sp who="spk2">

                        <speaker n="2">JACK FLEER:</speaker>

                        <p>So the job just has this sort of full time expectations and

                        necessity.</p>

                    </sp>

                    <sp who="spk1">

                        <speaker n="1">JAMES E. HOLSHOUSER JR.:</speaker>

                        <p>That is right. There are things that you can do. There are times you

                            would have appointments in the afternoons. Somebody would call in and

                            say they had gotten tied up. All of sudden your afternoon opens up and

                            you say lets run down to Pinehurst and play eighteen holes. And there

                            was always something on the desk; the desk was never empty. But you do

                            have the flexibility to get up and do that. And there is nothing says

                            that you have to go to the office at all. It is not in the constitution.

                            Lauch Faircloth when he was secretary of transportation swore you could

                            do the job working three days a week.</p>

                    </sp>

                    <sp who="spk2">

                        <speaker n="2">JACK FLEER:</speaker>

                        <p>I didn&#x0027;t realize that. His job or the

                        governor&#x0027;s?</p>

                    </sp>

                    <sp who="spk1">

                        <speaker n="1">JAMES E. HOLSHOUSER JR.:</speaker>

                        <p>I said transportation. It was when he was in commerce he said that, that

                            the secretary&#x0027;s job only took three days a week. And of

                            course Lauch had been sort of a unique kind of individual all the time

                            any way because he is always, he sort of knew what he could do and what

                            he couldn&#x0027;t do and he just did it.</p>

                    </sp>

                    <sp who="spk2">

                        <speaker n="2">JACK FLEER:</speaker>

                        <p>Would the addition of staff to the governor&#x0027;s office help in

                            making it a more manageable responsibility?</p>

                    </sp>

                    <sp who="spk1">

                        <speaker n="1">JAMES E. HOLSHOUSER JR.:</speaker>

                        <p>I&#x0027;m probably speaking out of ignorance now. It is hard to know

                            how much is coming into the Governor&#x0027;s office that has to get

                            into a funnel somehow and then come back out at the other end. When I

                            was there, Phil Kirk had all the mail sit on his desk that came in there

                            everyday. Some of it just needed an automatic response that <pb id="p12"

                                n="12"/> worked out to a mail processing thing, word processing.

                            Some had to be sent over to a cabinet secretary. He would just sort it

                            out. Then eventually some of it would have to have a letter from me back

                            that he would draft. Most of the time we would just talk through and I

                            didn&#x0027;t even sign it. I had a couple of gals who were good

                            forgers. You know the White House has always had machines. We never

                            signed, I mean I always signed executive orders and things like that. I

                            don&#x0027;t believe more staff is the answer. I think more staff

                            has more potential for games for people to play and other

                            people&#x0027;s agenda to get involved. You have more pull and tug

                            between personalities. I think you need to keep that staff pretty lean

                            and mean. Now the budget office has been added to that staff which makes

                            it look a lot bigger than it is right now as opposed to what it was.

                            That could have been a mistake rather than having it in the Department

                            of Administration.</p>

                    </sp>

                    <sp who="spk2">

                        <speaker n="2">JACK FLEER:</speaker>

                        <p>Moving it over to the Governor&#x0027;s office?</p>

                    </sp>

                    <sp who="spk1">

                        <speaker n="1">JAMES E. HOLSHOUSER JR.:</speaker>

                        <p>Yes. The Department of Administration always had the reputation of being

                            sort of professional and insulated from politics. When they moved it to

                            the governor&#x0027;s office I think it became the

                            governor&#x0027;s tool in the minds of the legislature and made it,

                            not less effective is the wrong word, it just changed how people

                            perceived it.</p>

                    </sp>

                    <sp who="spk2">

                        <speaker n="2">JACK FLEER:</speaker>

                        <p>Although actually prior to that move, the legislature had set up its own

                            fiscal research</p>

                    </sp>

                    <sp who="spk1">

                        <speaker n="1">JAMES E. HOLSHOUSER JR.:</speaker>

                        <p>And I guess if you look at which came first that may have been a response

                            to the legislative move rather than the other way around.</p>

                    </sp>

                    <milestone n="9206" unit="excerpt" type="stop" timestamp="00:28:36"/>

                    <milestone n="9207" unit="excerpt" type="start" timestamp="00:28:37"/>

                    <sp who="spk2">

                        <speaker n="2">JACK FLEER:</speaker>

                        <p>What about the first lady, should she be a publicly paid official?</p>

                    </sp>

                    <sp who="spk1">

                        <speaker n="1">JAMES E. HOLSHOUSER JR.:</speaker>

                        <p>Been a lot of talk about that particularly with Hilary Clinton.</p>

                    </sp>

                    <pb id="p13" n="13"/>

                    <sp who="spk2">

                        <speaker n="2">JACK FLEER:</speaker>

                        <p>Yes. I am talking about of course the governor&#x0027;s first

                        lady.</p>

                    </sp>

                    <sp who="spk1">

                        <speaker n="1">JAMES E. HOLSHOUSER JR.:</speaker>

                        <p>Right. I am inclined to think not. You can make an awfully good argument

                            about the fact that she is on duty full time too. She doesn&#x0027;t

                            have to be. And I think Carolyn Hunt has spent a fair amount of time of

                            the farm down at Rock Ridge particularly during the first Hunt

                            administration. Don&#x0027;t really know that, I just have heard

                            that. I think you can make a pretty strong argument for saying that if

                            it is because her work is there and it has to be done as part of the

                            governor&#x0027;s office that she could be paid out of the

                            governor&#x0027;s office. It may change how she is perceived and may

                            change it for the worse. The strongest arguments you are making for

                            doing that is that it treats her as an individual apart from the

                            governor and says that her role is defensible. You can make that pretty

                            legitimate now.</p>

                    </sp>

                    <sp who="spk2">

                        <speaker n="2">JACK FLEER:</speaker>

                        <p>Would it be politically difficult to make such a recommendation?</p>

                    </sp>

                    <sp who="spk1">

                        <speaker n="1">JAMES E. HOLSHOUSER JR.:</speaker>

                        <p>Actually from a legal and political standpoint, the governor could put

                            her on payroll from the governor&#x0027;s office. It would have to

                            come out of his/her budget. And it wouldn&#x0027;t be anything

                            illegal. You might get a few quips editorially when you first started

                            but I think if the governor just said this lady is working 56 hours on

                            an average a week for the state and she is due to be paid. Now the

                            political side of that is it looks like you are feathering your own nest

                            as a couple. That would be the only down side.</p>

                    </sp>

                    <milestone n="9207" unit="excerpt" type="stop" timestamp="00:31:21"/>

                    <milestone n="9208" unit="excerpt" type="start" timestamp="00:31:22"/>

                    <sp who="spk2">

                        <speaker n="2">JACK FLEER:</speaker>

                        <p>What were the most difficult times you had personally as governor?</p>

                    </sp>

                    <sp who="spk1">

                        <speaker n="1">JAMES E. HOLSHOUSER JR.:</speaker>

                        <p>We went through a stage, it seemed like to me about the last six months,

                            where it seemed like the media got much move inclined to not give you

                            the benefit of the doubt, that they assumed you were guilty until proven

                            innocent kind of thing and decisions got questioned.</p>

                    </sp>

                    <pb id="p14" n="14"/>

                    <sp who="spk2">

                        <speaker n="2">JACK FLEER:</speaker>

                        <p>Got questionable?</p>

                    </sp>

                    <sp who="spk1">

                        <speaker n="1">JAMES E. HOLSHOUSER JR.:</speaker>

                        <p>Got questioned. I mean the head of the highway patrol got stopped by one

                            of his own folks for speeding coming back from Asheville. Some thought I

                            should fire him but I didn&#x0027;t. And that kind of thing just

                            made it hard. I found early on, this is getting a little on the side of

                            it when I told the media I wasn&#x0027;t going to answer any

                            questions starting with if because we cross the bridges, as they came.

                            That cut off about three-fourths of questions that they normally ask.

                            One said to me later we use to sit up nights drinking beer just trying

                            to think how you could reword these questions trying to get the answers

                            without saying if. But most of the times you don&#x0027;t have to

                            cross those bridges, you don&#x0027;t try to guess what is going to

                            happen here and say if this happens I will do this and if this happens I

                            will do that. That was particular true in trying to deal where the

                            legislature is concerned. You couldn&#x0027;t use that vehicle to

                            say that if the legislature will do this then I&#x0027;d be willing

                            to give on this. That is better said in private anyway.</p>

                    </sp>

                    <sp who="spk2">

                        <speaker n="2">JACK FLEER:</speaker>

                        <p>In negotiations with the legislature publicly. Any other difficult

                        times?</p>

                    </sp>

                    <sp who="spk1">

                        <speaker n="1">JAMES E. HOLSHOUSER JR.:</speaker>

                        <p>Well the last six months looking back I know my hemoglobin was dropping

                            because of the kidney disease and I was more tired than I realized

                            physically. I had that accident right after I left office and they came

                            in and took a quick blood run and saw the hemoglobin and thought that I

                            had some internal bleeding going on and got scared to death. At the same

                            time looking back I don&#x0027;t think the schedule slowed down a

                            bit because I have been very much involved in trying to help Gerry Ford.

                            Of course once the election is over, you start trying to focus on what

                            you are going to do with yourself and also trying to make sure that the

                            people in administration got help if they needed it in terms of locating

                            out of the government. Because I told them that Bob Scott had asked all

                                <pb id="p15" n="15"/> of his cabinet people to resign as a courtesy

                            to me before he went in. I felt like that was a good thing and we ought

                            to do the same thing. So everybody in the governor&#x0027;s office,

                            except the girls who had been there forever running the machines and

                            stuff, were pretty well set by the time the administration was over.

                            Almost all but a few exceptions. The cabinet people were all ready to

                            get home. But I think the time of losing the primary, Ford losing to

                            Reagan in the primary, that didn&#x0027;t have anything to do with

                            North Carolina state government. It hurt a good bit but I thought we

                            were going to win kosher.</p>

                    </sp>

                    <sp who="spk2">

                        <speaker n="2">JACK FLEER:</speaker>

                        <p>So it was a personal and political disappointment.</p>

                    </sp>

                    <sp who="spk1">

                        <speaker n="1">JAMES E. HOLSHOUSER JR.:</speaker>

                        <p>Yes and I had put out and pulled out all the stops in trying to help.

                            That was really disappointing.</p>

                    </sp>

                    <milestone n="9208" unit="excerpt" type="stop" timestamp="00:35:31"/>

                    <milestone n="9209" unit="excerpt" type="start" timestamp="00:35:32"/>

                    <sp who="spk2">

                        <speaker n="2">JACK FLEER:</speaker>

                        <p>What is the most satisfying thing about being governor?</p>

                    </sp>

                    <sp who="spk1">

                        <speaker n="1">JAMES E. HOLSHOUSER JR.:</speaker>

                        <p>Well I told people that it probably is pulling the car right up in front

                            of Reynolds Coliseum or Kenan Stadium and getting out and walking in.

                            Actually that is not so; although it is pretty satisfying. I think being

                            able to get some things done that I wanted to do as a legislator but

                            couldn&#x0027;t which is the reason I ran to start with. I

                            didn&#x0027;t really run just to be the first Republican governor,

                            given that little clip about I thought they needed me and I think, that

                            part was just really good. Got to do a lot of travelling, saw a lot of

                            the country, going to governors&#x0027; conferences. The Irish

                            Government invited the governors to the First Church bicentennial. Being

                            part of the bicentennial was also a very special thing that nobody but

                            me got to do as governor. That had a lot of meaning particularly the

                            time in the last year of the administration when you were moving into

                            serious lame duck status. That was something that was energizing in

                            itself and I really enjoyed that. We had the national

                            governor&#x0027;s conference in Hershey a week before the <pb

                                id="p16" n="16"/> bicentennial and all the governors went down to

                            Washington to see Queen Elizabeth out on her boat that she had pulled

                            over and got back in town to do the things in Raleigh. That was a really

                            good part.</p>

                    </sp>

                    <sp who="spk2">

                        <speaker n="2">JACK FLEER:</speaker>

                        <p>Some perquisites of the position that offset the lack of privacy and the

                            demands of time.</p>

                    </sp>

                    <sp who="spk1">

                        <speaker n="1">JAMES E. HOLSHOUSER JR.:</speaker>

                        <p>Yes. They are because you have got all of these planes and helicopters

                            and patrol cars that you can use to go places. You have got things that

                            people do for you because of the office, not because of you, because of

                            the office that are just always very genuine. I am not talking about the

                            &#x2026;sort of giving you themselves in a way just makes you feel

                            good. It was satisfying in being able to say let&#x0027;s do this

                            and seeing it happens. Because if you say it to the legislature

                            let&#x0027;s do this you have got to go and persuade at least 61

                            people in the house and 26 in the Senate to do that and it still may not

                            come out like you want it depending on how it gets implemented.</p>

                    </sp>

                    <sp who="spk2">

                        <speaker n="2">JACK FLEER:</speaker>

                        <p>But you have numerous occasions you are implying where you could say we

                            are going to do it and it happens?</p>

                    </sp>

                    <sp who="spk1">

                        <speaker n="1">JAMES E. HOLSHOUSER JR.:</speaker>

                        <p>That is right.</p>

                    </sp>

                    <sp who="spk2">

                        <speaker n="2">JACK FLEER:</speaker>

                        <p>Policy and governmental.</p>

                    </sp>

                    <sp who="spk1">

                        <speaker n="1">JAMES E. HOLSHOUSER JR.:</speaker>

                        <p>Well, and little things. I had always thought it was crazy to have new

                            license plates every year and so now you get that little sticker and of

                            course that cuts down on the number of plates that were made by the

                            inmates. The correctional people were saying what are we going to do

                            with all those people all the day and there is always the argument

                            against that. I thought we had a disjointed way of handling the budget

                            in <pb id="p17" n="17"/> some ways. We have changed some of that. I

                            wanted to do a program budget. We did that one year and the legislators

                            just hated it.</p>

                    </sp>

                    <milestone n="9209" unit="excerpt" type="stop" timestamp="00:39:30"/>

                    <milestone n="9394" unit="empty" type="start" timestamp="00:39:31"/>

                    <sp who="spk2">

                        <speaker n="2">JACK FLEER:</speaker>

                        <p>I remember that.</p>

                    </sp>

                    <sp who="spk1">

                        <speaker n="1">JAMES E. HOLSHOUSER JR.:</speaker>

                        <p>I still think that is a good thing but I don&#x0027;t think you will

                            ever see the legislature relinquish their right to line item.</p>

                    </sp>

                    <sp who="spk2">

                        <speaker n="2">JACK FLEER:</speaker>

                        <p>I was thinking the other day I don&#x0027;t know whether I mentioned

                            to you before but I am trying to accumulate a list of the

                            &#x22;firsts&#x22; each governor had done. I put down that you

                            were the first and the last governor to ever have a program budget.</p>

                    </sp>

                    <sp who="spk1">

                        <speaker n="1">JAMES E. HOLSHOUSER JR.:</speaker>

                        <p>That is right. I believe you have got that right. It will have to be

                            after everybody who was there at the time has died before anybody would

                            even try that again.</p>

                    </sp>

                    <sp who="spk2">

                        <speaker n="2">JACK FLEER:</speaker>

                        <p>And there is no such time, or not likely anyway. Well Governor we have

                            reached the end of what has been a wonderful set of interviews. I feel

                            like you have made a real contribution to our understanding of the

                            office and I know you made a real contribution as Governor of North

                            Carolina. I thank you very much.</p>

                    </sp>

                    <sp who="spk1">

                        <speaker n="1">JAMES E. HOLSHOUSER JR.:</speaker>

                        <p>Well I told you before and I will say it again. I have enjoyed it and the

                            visiting has been good just with you personally. Governors and past

                            governors always like to talk about how great they were and that part

                            has been fun too.</p>

                    </sp>

                    <sp who="spk2">

                        <speaker n="2">JACK FLEER:</speaker>

                        <p>Thanks a lot. <note type="comment"> [Recorder is turned off and then back

                                on.] </note></p>

                    </sp>

                    <pb id="p18" n="18"/>

                    <milestone n="9394" unit="empty" type="stop" timestamp="00:40:42"/>

                    <milestone n="9210" unit="excerpt" type="start" timestamp="00:40:43"/>

                    <sp who="spk1">

                        <speaker n="1">JAMES E. HOLSHOUSER JR.:</speaker>

                        <p>At that point you had a fairly well defined model of when&#x2014;of

                            people who came out of the mountains and went way back as Republicans,

                            but for different reasons than those who came in later. It

                            wasn&#x0027;t just the mountains; you go down to Wilkes and Yadkin

                            counties. You had Sampson County with its own peculiar thing down east.

                            You had the people who came into the party from the

                            north&#x2014;they moved into the state as industry came in.

                            That&#x0027;s one of the legacies that Luther Hodges and Terry

                            Sanford started; they brought in industry, and they brought Republicans

                            in, too. Not that that&#x0027;s what they intended <note

                                type="comment"> [Laughter] </note>. Then you had a group of people

                            who had a harder edge on their politics than others of us did. Today

                            it&#x0027;s a whole different set of circumstances.

                            You&#x0027;ve got social conservatives and economic conservatives;

                            you&#x0027;ve got Libertarians. We don&#x0027;t have many

                            liberal Republicans in North Carolina. You&#x0027;ve got a few, but

                            the line moves generally from the middle [to the] right. That tends to

                            be true of the Democrats as well, except that they move from the middle

                            left, because most of the conservative Democrats have switched. As a

                            result, it gets much harder for a moderate in either party to be elected

                            statewide. That&#x0027;s probably not particularly good, in that I

                            think that the state tends to be moderate to moderate-conservative by

                            its nature. The country has become more conservative, and I think North

                            Carolina has become more conservative since I was governor. Since the

                            sixties just a tide of things, and I&#x0027;m not sure I know why

                            all that was. I expect that a certain amount of it had to do with

                            Reagan&#x0027;s four&#x2014;eight <pb id="p19" n="19"/> years in

                            Washington. I think regardless of whether you are for or against Ronald

                            Reagan or his approach to government. I think he changed the agenda in

                            Washington from what it had been since the thirties. All of a sudden it

                            was just a whole bunch of different questions that were on the table. It

                            wasn&#x0027;t as much a matter of expanding government as it was a

                            matter of how much you were going to retrench it, so to speak.</p>

                    </sp>

                    <milestone n="9210" unit="excerpt" type="stop" timestamp="00:43:49"/>

                    <milestone n="9395" unit="empty" type="start" timestamp="00:43:50"/>

                    <sp who="spk2">

                        <speaker n="2">JACK FLEER:</speaker>

                        <p>How important was it for you to control the party itself? You mentioned

                            earlier the well-publicized row over the selection of the state chair,

                            and obviously you wanted to have your chair in there. How important was

                            that effort to control the organization of the party?</p>

                    </sp>

                    <sp who="spk1">

                        <speaker n="1">JAMES E. HOLSHOUSER JR.:</speaker>

                        <p>Probably not nearly as much as it appeared from the effort that went into

                            getting it; more personality conflicts there between the state

                            chairman&#x0027;s office and the people who were involved in the

                            administration. I&#x0027;m not sure I&#x0027;d do it again,

                            looking back. It&#x0027;s hard to say, because you don&#x0027;t

                            know. Sometimes memory tends to get a little blurred as to exactly why

                            you decided this needed to be done. <note type="comment"> [Recorder is

                                turned off and then back on.] </note>

                        </p>

                    </sp>

                    <milestone n="9395" unit="empty" type="stop" timestamp="00:44:56"/>

                    <milestone n="9211" unit="excerpt" type="start" timestamp="00:44:57"/>

                    <sp who="spk2">

                        <speaker n="2">JACK FLEER:</speaker>

                        <p>&#x2026;Other than having in the chair a person who was sympathetic

                            to your administration&#x2014;or compatible, let&#x0027;s say,

                            to your administration and your way of leading the Republican party,

                            what other aspects of the party organization and resources were you able

                            to try to control as governor?</p>

                    </sp>

                    <sp who="spk1">

                        <speaker n="1">JAMES E. HOLSHOUSER JR.:</speaker>

                        <p>Of course, at that time the party was a different creature than it is

                            now. You didn&#x0027;t have the tax check-off, or a significant

                            source of on-going funds. So the party organization as such really

                            wasn&#x0027;t much of an organization as such. It was almost totally

                            volunteers, including the chairman. From my recollection, when I became

                            state chairman <pb id="p20" n="20"/> in the sixties, we had one

                            employee, secretary who got the mailings out, and that sort of thing. We

                            had either a one office or a two-office suite in the Carolina Hotel in

                            Raleigh. It was just a minimal, minimal budget; the party was

                            &#x24;50,000 in debt, which was enormous for that time. We spent two

                            years just getting that paid off. That is the hardest money you ever

                            raise because it didn&#x0027;t go into anybody&#x0027;s

                            campaign. Campaign techniques and the party&#x0027;s ability to

                            function have come a long way since then in terms of being able to use

                            direct mail, for fundraising being able to&#x2026;</p>

                    </sp>



                    <p>

                        <note anchored="yes">

                            <p>[END OF TAPE 1, SIDE A]</p>

                        </note>

                    </p>

                </div2>

                <div2 id="tape1-b" n="1-B" type="tape_side">

                    <head>[TAPE 1, SIDE B]</head>

                    <note anchored="yes">

                        <p>[START OF TAPE 1, SIDE B]</p>

                    </note>



                    <sp who="spk1">

                        <speaker n="1">JAMES E. HOLSHOUSER JR.:</speaker>

                        <p>&#x2026;So both parties are better funded now than they were in the

                            sixties, I think. It&#x0027;s usually easier for the party

                            that&#x0027;s in control of the governor&#x0027;s office, to

                            have the governor&#x0027;s presence help the party draw a crowd at

                            fundraising dinners and that sort of thing. But both parties have gotten

                            much more sophisticated (Republicans may still be a little more

                            sophisticated) in terms of fundraising and campaign techniques. <note

                                type="comment"> [Recorder is turned off and then back on.] </note>

                        </p>

                    </sp>

                    <sp who="spk2">

                        <speaker n="2">JACK FLEER:</speaker>

                        <p>We were discussing the ability of the governor to control the resources

                            of the party, and you were saying that parties are much better off

                            today, and that the Republican party might well be more sophisticated

                            than the Democrats.</p>

                    </sp>

                    <sp who="spk1">

                        <speaker n="1">JAMES E. HOLSHOUSER JR.:</speaker>

                        <p>And there&#x0027;s another factor in this, too. When a new

                            administration comes in, invariably the people who had been involved in

                            the campaign and got their adrenaline running come to Raleigh. Well,

                            that political adrenaline doesn&#x0027;t automatically turn off when

                            they become a state employee. With both parties having their state

                            headquarters in <pb id="p21" n="21"/> Raleigh, I suspect it&#x0027;s

                            pretty usual that some of those people end up volunteering for things on

                            nights and weekends with the party. If you watch campaigns in the

                            off-year elections, you will see people moving in and out of the

                            government fairly frequently into campaigns; somebody will leave this

                            position in this department and go into the campaign for Joe Blow

                            who&#x0027;s running for Congress, or the US Senate, or something.

                            After the elections, however, he&#x0027;s right back over

                            there&#x2014;particularly if they lost.</p>

                    </sp>

                    <milestone n="9211" unit="excerpt" type="stop" timestamp="00:49:15"/>

                    <milestone n="9212" unit="excerpt" type="start" timestamp="00:49:16"/>

                    <sp who="spk2">

                        <speaker n="2">JACK FLEER:</speaker>

                        <p>How important would an ability to be re-elected have been in your control

                            of the party? In other words, would your relationship with the party

                            have been different if you had been able to be re-elected?</p>

                    </sp>

                    <sp who="spk1">

                        <speaker n="1">JAMES E. HOLSHOUSER JR.:</speaker>

                        <p>Yes, I think so. I know I agreed to co-chair the drive for the

                            constitutional amendment on second terms, partly because I felt like it

                            would keep the governor from being a lame duck while still in office.

                            That goes right over into activities with the party. If the governor is

                            getting ready to run for re-election, he probably has a stronger tie,

                            although he probably shouldn&#x0027;t, if he faces a primary in

                            particular. If he doesn&#x0027;t that&#x0027;s a different

                            matter. But you don&#x0027;t find many governors or many presidents

                            who don&#x0027;t control the party at the level that they are

                            involved in. Now sometimes you have states where there&#x0027;s no

                            governor and have a United States senator. They&#x0027;ll be the

                            ones to control the party, although it&#x0027;s been my experience

                            that people in Washington don&#x0027;t want to be bothered with the

                            state party.</p>

                    </sp>

                    <milestone n="9212" unit="excerpt" type="stop" timestamp="00:50:39"/>

                    <milestone n="9213" unit="excerpt" type="start" timestamp="00:50:40"/>

                    <sp who="spk2">

                        <speaker n="2">JACK FLEER:</speaker>

                        <p>Was that your experience with Senator Helms?</p>

                    </sp>

                    <sp who="spk1">

                        <speaker n="1">JAMES E. HOLSHOUSER JR.:</speaker>

                        <p>Yes. Some of his supporters in-state were involved and interested, and

                            have been since that time. At the same time, the role of the party has

                            been diluted so badly by the formation of PACs&#x2014;and when I say

                            PACs I mean political PACs, not R. J. Reynolds <pb id="p22" n="22"/>

                            PACs. David Broder has written column after column on how the important

                            parties are not being treated right, and that the system is being hurt

                            by that. I think he&#x0027;s right, and that has carried over into

                            the Congress with the change of the seniority system. The party as a

                            vehicle in Congress quit being nearly as effective, because now

                            you&#x0027;ve got umpteen zillion caucuses up there and

                            they&#x0027;ve all got different agendas. So trying to build a

                            consensus is just a lot harder than when Sam Rayburn and Lyndon Johnson

                            were running things.</p>

                    </sp>

                    <sp who="spk2">

                        <speaker n="2">JACK FLEER:</speaker>

                        <p>You mentioned PACs, and you were talking primarily about what you

                            referred to as political PACs. I guess this means PACs of political

                            leaders rather than PACs of industrial groups or labor unions, or

                            whatever they might be. Do you think that&#x0027;s become an

                            important factor in North Carolina politics. Was it whenever you were

                            governor?</p>

                    </sp>

                    <sp who="spk1">

                        <speaker n="1">JAMES E. HOLSHOUSER JR.:</speaker>

                        <p>It was nonexistent when I was governor; it&#x0027;s very important

                            today. I mean, you see the president pro tempore of the senate, you see

                            the speaker of the house, you see several members of the house and

                            senate having separate PACs. They get people to give money to that,

                            which they can either use in their own campaigns or in somebody

                            else&#x0027;s campaign. It definitely allows money to become the

                            vehicle through which individuals gain political power within the

                            spectrum through which they are working at the moment. I suspect

                            it&#x0027;s much easier now for a political leader in the

                            legislature to stay in that position of leadership than it ever has been

                            in years past. Of course, we had traditions for a long

                            time&#x2014;you weren&#x0027;t speaker but one term, for

                            example. That changed during Mr. Ramsey&#x0027;s time, and I think

                            it&#x0027;s changed for the worse, probably.</p>

                    </sp>

                    <pb id="p23" n="23"/>

                    <sp who="spk2">

                        <speaker n="2">JACK FLEER:</speaker>

                        <p>Many people say it&#x0027;s changed at least in part&#x2014;maybe

                            a major part&#x2014;because the governor can now serve a longer

                            term.</p>

                    </sp>

                    <sp who="spk1">

                        <speaker n="1">JAMES E. HOLSHOUSER JR.:</speaker>

                        <p>That&#x0027;s when it happened. When gubernatorial succession came in

                            the legislature decided if they&#x0027;re going to do it on the

                            executive side we ought to do it on the legislative side, or

                            we&#x0027;ll be at a disadvantage.</p>

                    </sp>

                    <sp who="spk2">

                        <speaker n="2">JACK FLEER:</speaker>

                        <p>But you said it may well have been for the worse. Could you talk about

                            that a little bit?</p>

                    </sp>

                    <sp who="spk1">

                        <speaker n="1">JAMES E. HOLSHOUSER JR.:</speaker>

                        <p>Well, I believe that to the extent we&#x0027;ve moved away from a

                            true citizen legislature, it&#x0027;s removing the possibility for a

                            great many people who would be good legislators to be able to run and

                            serve. It&#x0027;s not just what we&#x0027;ve been talking

                            about. It&#x0027;s also the length of terms and the amount of

                            service between them. I was talking to a legislator this past week, and

                            I think she said she was on thirteen interim committees and commissions.

                            She was spending about half of every week in Raleigh.</p>

                    </sp>

                    <sp who="spk2">

                        <speaker n="2">JACK FLEER:</speaker>

                        <p>When the legislature is not in session, you mean.</p>

                    </sp>

                    <sp who="spk1">

                        <speaker n="1">JAMES E. HOLSHOUSER JR.:</speaker>

                        <p>That&#x0027;s right, when the legislature&#x0027;s not in

                            session. I mean, you can&#x0027;t hold a regular job back in your

                            home county and be in the legislature anymore. Most lawyers

                            can&#x0027;t do that. When I was in the legislature, I went to

                            Raleigh five months and then was home the rest of the two years, with

                            rare exceptions. We had probably twenty-five percent of the legislature

                            who were lawyers. Right now we don&#x0027;t have enough lawyers to

                            staff a judiciary committee, even though you&#x0027;ve got bill

                            drafting going on and even though you&#x0027;ve got draftsmen to

                            help individual legislators who want to write amendments. When

                            you&#x0027;ve got someone sitting down, scribbling one out and

                            sending it up on the floor on the spur of the moment or in committee,

                            the absence of lawyers who <pb id="p24" n="24"/> have an understanding

                            about the law and the general statutes causes the legislative process to

                            suffer. That&#x0027;s my own particular perspective on it. But

                            it&#x0027;s keeping out not just lawyers, but a lot of people who

                            would be good senators. I doubt, for instance, that Archie Davis would

                            have felt like he could have afforded the time to be in the senate as he

                            did when he ran back in the 1960s. And so you end up having legislators

                            who have to fit a certain sort of generic situation career-wise before

                            they can run for the legislature.</p>

                    </sp>

                    <sp who="spk2">

                        <speaker n="2">JACK FLEER:</speaker>

                        <p>Have that dispensable time that they otherwise would not have?</p>

                    </sp>

                    <sp who="spk1">

                        <speaker n="1">JAMES E. HOLSHOUSER JR.:</speaker>

                        <p>That&#x0027;s right. It doesn&#x0027;t mean that there

                            aren&#x0027;t some good people there, and there are certain

                            companies that encourage employees to run if they want to. In fact,

                            that&#x0027;s part of not only their need to be publicly involved

                            but it also means that their approach to things gets heard. You have

                            teachers who run and take leaves of absence; you have university

                            employees who run and take leaves of absence, and some of them are very

                            articulate. Like Paul Luebke from Durham, who teaches over at UNC-G. His

                            philosophy and mine are not the same at all, but to the extent that the

                            legislature needs good minds, that&#x0027;s an example of a good

                            mind.</p>

                    </sp>

                    <sp who="spk2">

                        <speaker n="2">JACK FLEER:</speaker>

                        <p>In terms of the legislature&#x0027;s relationship with the governor,

                            many would argue that this makes the legislature a more effective

                            partner with the governor. In that sense, it provides a kind of

                            restraint on excessive executive power. Is that a fair statement?</p>

                    </sp>

                    <sp who="spk1">

                        <speaker n="1">JAMES E. HOLSHOUSER JR.:</speaker>

                        <p>It could be. It&#x0027;s a little. It may be that my whole thinking

                            about this is simply an intellectual effort to hold back the wave of the

                            future. Modern society has gotten much more complex. It may be that

                            volunteers can&#x0027;t deal with those problems anymore; that

                            there&#x0027;s not enough time to stay up to snuff. Some of

                            them&#x2014;you take Betsy Cochran. She doesn&#x0027;t have a

                            job she has to go to everyday, but she works almost <pb id="p25" n="25"

                            /> full time on issues and keeping up. That&#x0027;s the kind of

                            legislator who&#x0027;s just invaluable. But then you only have so

                            many of those. The legislature has not changed in one regard; about ten

                            percent do most of the work. That&#x0027;s the way it is in most

                            organizations. That probably isn&#x0027;t going to change,

                            regardless.</p>

                    </sp>

                    <milestone n="9213" unit="excerpt" type="stop" timestamp="00:59:55"/>

                    <milestone n="9396" unit="empty" type="start" timestamp="00:59:56"/>

                    <sp who="spk2">

                        <speaker n="2">JACK FLEER:</speaker>

                        <p>Let&#x0027;s sort of reflect on this idea regarding the role of the

                            governor and his relationship with the political party. Has the

                            Republican Party in North Carolina evolved sort of the way you

                            anticipated it would when you were governor, or has it not done as

                            well&#x2014;or gone in different directions&#x2014;from what you

                            thought?</p>

                    </sp>

                    <sp who="spk1">

                        <speaker n="1">JAMES E. HOLSHOUSER JR.:</speaker>

                        <p>Let me back up on one thought. I think the Republicans have not accepted

                            the Democrat tradition of having the governor simply name the state

                            chairman. Legally it&#x0027;s done by the state executive committee.

                            But when Jim Hunt says who he wants to be chairman, that&#x0027;s

                            who becomes chairman. Jim Martin and I both had to fight for our

                            selections as chairman, and that&#x0027;s probably just the

                            difference in the backgrounds. How the parties are run. Moving on to

                            your other question, it&#x0027;s a little hard to know&#x2026;

                                <note type="comment"> [Recorder is turned off and then back on.]

                            </note></p>

                    </sp>

                    <milestone n="9396" unit="empty" type="stop" timestamp="01:01:21"/>

                    <milestone n="9214" unit="excerpt" type="start" timestamp="01:01:22"/>

                    <sp who="spk1">

                        <speaker n="1">JAMES E. HOLSHOUSER JR.:</speaker>

                        <p>Anybody who thinks about it for very long realizes that if

                            you&#x0027;re going to have a viable party, you&#x0027;ve got to

                            have a big enough umbrella to have varying philosophies under that

                            umbrella. If you don&#x0027;t, you&#x0027;re just not big enough

                            to win. We still have a coalition put together that&#x0027;s not

                            that different than it was in the sixties and early seventies.

                            It&#x0027;s just gotten larger. You&#x0027;ve got the business

                            Republicans. You&#x0027;ve got the country club

                            Republicans&#x2014;and there&#x0027;s a lot of overlap there.

                            You&#x0027;ve got the Populist Republicans who grew up in the

                            mountains; and rural Republicans, who have a mixture of Populism and

                            social conservatism. You also have a group of intellectual <pb id="p26"

                                n="26"/> conservatives. I guess if I&#x0027;m fair I say that it

                            concerns me when either party gets dominated by intellectuals who never

                            run for office, have never served, and who haven&#x0027;t had to go

                            through the ordeal of trying to get elected and trying to build

                            consensus for ideals as opposed to just getting out and fighting for

                            them. There&#x0027;s a lot more subtlety in how you build consensus

                            than trying to beat the other guy on the head with your ideas. That

                            makes challenges in both parties. One of the reporters told me one time

                            that the Democrats have their lettuce pickers and the Republicans have

                            their Neanderthals, and it always makes for interesting conventions. I

                            guess that&#x0027;s probably true.</p>

                    </sp>

                    <sp who="spk2">

                        <speaker n="2">JACK FLEER:</speaker>

                        <p>And good reporting, probably. <note type="comment"> [Laughter]

                        </note></p>

                    </sp>

                    <sp who="spk1">

                        <speaker n="1">JAMES E. HOLSHOUSER JR.:</speaker>

                        <p>That&#x0027;s right.</p>

                    </sp>

                    <sp who="spk2">

                        <speaker n="2">JACK FLEER:</speaker>

                        <p>Has the party made as much progress here in the 1990s as you would have

                            expected in the 1970s?</p>

                    </sp>

                    <sp who="spk1">

                        <speaker n="1">JAMES E. HOLSHOUSER JR.:</speaker>

                        <p>More, I think. I always thought the hardest thing to do would be to get a

                            majority in the legislature. Frankly, when I was talking with the state

                            chairman about one o&#x0027;clock in the morning on election night

                            in &#x0027;94 and he told me we were going to take the House, I just

                            really couldn&#x0027;t believe it. I told a lot of people in Raleigh

                            that I thought that was a much more important step as a party than if I

                            had been elected governor. It might not have happened if I had not

                            gotten elected governor. You never know about these things. I think the

                            state is a two party system. It&#x0027;s not to parity on

                            registration yet, but that&#x0027;s about the only place. The

                            delegation in Washington is split right down the middle, while

                            we&#x0027;ve got two Republican senators now. The fact that the

                            state can elect Terry Sanford and Jesse Helms to the Senate says that

                            it&#x0027;s still a state that you can&#x0027;t exactly put <pb

                                id="p27" n="27"/> your finger on. I think that&#x0027;s sort of

                            intriguing, because it&#x0027;s still up for grabs for idealists all

                            the time.</p>

                    </sp>

                    <sp who="spk2">

                        <speaker n="2">JACK FLEER:</speaker>

                        <p>And that&#x0027;s healthy for the state?</p>

                    </sp>

                    <sp who="spk1">

                        <speaker n="1">JAMES E. HOLSHOUSER JR.:</speaker>

                        <p>I think it is.</p>

                    </sp>

                    <sp who="spk2">

                        <speaker n="2">JACK FLEER:</speaker>

                        <p>Certainly part of what you hoped for when you started building the

                            two-party system back in the 1960s?</p>

                    </sp>

                    <sp who="spk1">

                        <speaker n="1">JAMES E. HOLSHOUSER JR.:</speaker>

                        <p>That&#x0027;s right, because it wasn&#x0027;t to build a one

                            party Republican state, it was to have a state where people got to

                            listen to different ideas. I have to admit, though, that listening to

                            them in thirty-second commercials is not the best way to get them. I

                            also know that as much as that gets criticized, if you do a

                            thirty-minute talk to the people&#x2014;you look at the Nielsens on

                            that and the numbers go way down in terms of people who will watch that

                            long.</p>

                    </sp>

                    <sp who="spk2">

                        <speaker n="2">JACK FLEER:</speaker>

                        <p>That&#x0027;s amazing, and somewhat disappointing. </p>

                        <milestone n="9214" unit="excerpt" type="stop" timestamp="01:06:34"/>

                        <milestone n="9215" unit="excerpt" type="start" timestamp="01:06:35"/>

                        <p>When you look back over your administration as Governor of North

                            Carolina, how much were you in control of the administration?</p>

                    </sp>

                    <sp who="spk1">

                        <speaker n="1">JAMES E. HOLSHOUSER JR.:</speaker>

                        <p>Well, it&#x0027;s a little hard looking back to know for sure. We did

                            some things that were deliberately set up to keep control

                            programmatically in that we had what we called a policy council where

                            all the legislative proposals had to sift before they went to the

                            legislature. The budget, too. I think I talked about this before, but

                            I&#x0027;ll get on with it and say that I might take a different

                            view today, but probably not. I took the view that these people [Council

                            of State members] were constitutionally elected by the people, and they

                            were the ones that had constitutional responsibilities. The place where

                            that runs into joint interests is with the Department of Public

                            Instruction, because you can&#x0027;t be governor <pb id="p28"

                                n="28"/> and not have an interest in public schools. And yet the

                            superintendent is constitutionally elected and the governor appoints the

                            state board. You&#x0027;ve got this crazy government system

                            that&#x0027;s&#x2014;well, dysfunctional is the wrong word, but

                            you work against that system instead of having that system help you. In

                            terms of the people in the cabinet, I think for the most part the people

                            worked as a team. You certainly had people with different ideas. Jim

                            Harrington, for example, thought the inventory tax ought to be repealed.

                            People in his department thought that, and frankly I thought that, too.

                            But I told him I didn&#x0027;t want him over there in the

                            legislature lobbying for that because we&#x0027;d taken a firm

                            &#x2018;no tax repeals&#x2019; stand. We just sort of

                            stonewalled the whole thing for fear that the legislature would start

                            trying to decide about taking tax cuts. The first thing you knew the

                            whole budget&#x0027;s blown. Since the Advisory Budget Commission

                            had recommended some onetime tax rebate, it was a live issue at the

                            time. We had four different secretaries of transportation in four years,

                            which is not a good way to do things but is the way things worked out. I

                            suspect that people were hired that the governor&#x0027;s office

                            didn&#x0027;t know about. That probably still goes on today. Joe

                            Pell is probably the best of anybody of keeping his fingers on that.

                            You&#x0027;ve got to have a certain amount of confidence in the

                            people that you put in cabinet positions. At the same time, none of ours

                            had ever had any government experience in the state government. It

                            probably meant that our administration was more cautious than most

                            administrations, and less aggressive in some ways. Frankly, when I look

                            back at accomplishments that you can check off, it&#x0027;s

                            remarkably good given the fact that we hadn&#x0027;t been there and

                            we were trying not to make any more mistakes than a naive new

                            administration had the potential to. We didn&#x0027;t turn the

                            secretaries loose with everything, so to speak.</p>

                    </sp>

                    <pb id="p29" n="29"/>

                    <sp who="spk2">

                        <speaker n="2">JACK FLEER:</speaker>

                        <p>You mentioned the policy council, and then the sort of control in so far

                            as you could over appointments. Would those be the two principal

                            mechanisms that enabled you to maintain some kind of control, or were

                            there others?</p>

                    </sp>

                    <sp who="spk1">

                        <speaker n="1">JAMES E. HOLSHOUSER JR.:</speaker>

                        <p>That&#x0027;s the main thing. We had a cabinet social about once a

                            month that&#x0027;d rotate from house to house. Never had it at the

                            mansion as I recall. Each cabinet member would be host. I think that was

                            very important, looking back, in terms of building that sense of

                            camaraderie and teamwork. So it wasn&#x0027;t a sense of

                            control&#x2014;governor&#x0027;s office versus the

                            departments&#x2014;as much as it was everybody feeling like they

                            were part of the same team. You didn&#x0027;t have circumstances for

                            the most part where a cabinet member says, &#x2018;I think we ought

                            to do this,&#x2019; and the governor saying, &#x2018;No,

                            we&#x0027;re not going to.&#x2019; It was pretty

                            much&#x2014;it wasn&#x0027;t an administration that had

                            seriously different points of view. So there wasn&#x0027;t a lot of

                            pull and tug. You had some things on personnel that were either changes

                            that needed to be made or cabinet members who didn&#x0027;t feel the

                            time was right for them.</p>

                    </sp>

                    <sp who="spk2">

                        <speaker n="2">JACK FLEER:</speaker>

                        <p>What about beyond the administration to the state government? You were

                            obviously in a position as the first Republican governor to come into a

                            governing structure&#x2014;a bureaucracy, if I may use that

                            term&#x2014;where people had gone about their business to the tune

                            of Democratic governors. Did you feel that you could control that larger

                            government?</p>

                    </sp>

                    <sp who="spk1">

                        <speaker n="1">JAMES E. HOLSHOUSER JR.:</speaker>

                        <p>Well, I went in nervous about that because of an experience I had had in

                            the previous four years sitting in the Oval Office. President Nixon

                            would give a direct order to the secretary of HEW, and her field man in

                            Wilmington six weeks later would say just the opposite. That sort of

                            reminded you of Eisenhower&#x0027;s statement that &#x2018;You

                            push the <pb id="p30" n="30"/> button on the desk and wonder if it goes

                            anywhere; if there&#x0027;s a wire under there or not.&#x2019; I

                            had the good fortune of having at least the key department and division

                            heads have a chance to see me in the legislature. I knew most of the

                            budget people on a first-name basis. I think there was a lot of

                            nervousness, despite the fact that I&#x0027;d been to the state

                            employees&#x0027; convention, and did the same way with the NCAE

                            folks. I did more than just put in an appearance. The day after the

                            election at the news conference I told the reporters that state

                            employees&#x2014;unless they had gotten their jobs through total

                            politics&#x2014;didn&#x0027;t have anything to worry about. I

                            had one of our economic developers tell me somewhere in the third or

                            fourth year that he was in New York on an industry recruiting trip on

                            the day of the election. Well, his wife called him about one

                            o&#x0027;clock and said, &#x2018;You better get your tail home.

                            We&#x0027;ve done elected a damn Republican!&#x2019; <note

                                type="comment"> [Laughter] </note> So there had to be a certain

                            amount of that. Newspapers had these stories about state employees

                            running out to the parking lot the next morning and tearing the

                            Bowles&#x0027; stickers off their car. There was some interesting

                            things about that. But for the most part what you found was that people

                            generally have a regard for the office of the governor. That was true

                            with the legislature and Council of State as well. Folks tend

                            to&#x2014;because of that respect for the office, folks tend to sort

                            of try to get along. I heard after I left office that people in the ABC

                            system were lining up raids to do on places where I had been the night

                            before, so that it looked like I had put them on them, so to speak. Of

                            course, that was also influenced by the fact that the guy who headed up

                            the ABC board was a Holshouser from Rowan County. He had been the

                            chairman of the State Association of ABC Boards, and they had

                            recommended him. And I said, &#x22;I am not going to appoint someone

                            named Holshouser. He&#x0027;s got to be kin to me. You prove to me

                                <pb id="p31" n="31"/> that he&#x0027;s not close kin and maybe

                            I&#x0027;ll look at it.&#x22; So he got a genealogist, and

                            showed that the closest relative we had was the original Holshouser who

                            came down from Pennsylvania in 1750. That was the only common

                            connection. So I went ahead and appointed him. He did a good job, and

                            looking back, I wish his name hadn&#x0027;t been Holshouser. <note

                                type="comment"> [Laughter] </note> But I think those situations were

                            exceptions rather than the rule. I think most people tried hard to do

                            their job. We weren&#x0027;t out there trying to crucify any one

                            department or division. There wasn&#x0027;t any reason. You

                            invariably have the hassles that you go through in terms of moving

                            people out who had been political hacks, so to speak, in various

                            departments. It&#x0027;s amazing to me. Some cabinet officials were

                            so adept at not only doing it without ripples on the water, but also in

                            a way where you respected the other person. Gave them time to find

                            another job; helped them find another job. That&#x0027;s probably

                            one of the most important attributes for somebody who&#x0027;s going

                            to head up a state department; that is to have an ability to manage that

                            particular transition.</p>

                    </sp>

                    <milestone n="9215" unit="excerpt" type="stop" timestamp="01:19:58"/>

                    <milestone n="9397" unit="empty" type="start" timestamp="01:19:59"/>

                    <sp who="spk2">

                        <speaker n="2">JACK FLEER:</speaker>

                        <p>You said at one time that everyone should be subject to summary dismissal

                            by a president or a governor, although you do see a down side to this.

                            Could you talk about this a little? You said this in an interview that

                            you did in a volume called, <hi rend="u">On Being a Governor</hi>. Could

                            you talk about that?</p>

                    </sp>

                    <sp who="spk1">

                        <speaker n="1">JAMES E. HOLSHOUSER JR.:</speaker>

                        <p>Well see, at the time I was in the legislature we had a state

                            employees&#x0027; personnel system that had appeals from dismissals

                            that ended up in the governor&#x0027;s office. There

                            weren&#x0027;t many of those cases that got hauled into court,

                            because there weren&#x0027;t any rules. That changed during the time

                            I was governor. I think that was a mistake in that despite the fact that

                            it sounds logical. None of those people got elected by anybody. When the

                            governor gets elected, you may have people not deliberately disobeying

                            orders <pb id="p32" n="32"/> but just dragging their feet all the time.

                            You can&#x0027;t just document them as being a worthless employee

                            who barely gets to work and that&#x0027;s all. Those cases are easy.

                            But there are cases over here where you&#x0027;ve got a dedicated

                            employee&#x2014;it&#x0027;s easy on the other side.

                            It&#x0027;s just the ones in the middle that are always hard.

                            I&#x0027;ve just come to the conclusion that public schools, state

                            universities, state government&#x2014;I&#x0027;ve concluded that

                            it&#x0027;s all&#x2014;it&#x0027;s not necessarily bad, but

                            it keeps the system from functioning as it should. And it may well be

                            one of those things that if you did away with it, then in thirty years

                            you&#x0027;ll want to go back to it. I don&#x0027;t know.</p>

                    </sp>

                    <milestone n="9397" unit="empty" type="stop" timestamp="01:22:45"/>

                    <milestone n="9216" unit="excerpt" type="start" timestamp="01:22:46"/>

                    <sp who="spk2">

                        <speaker n="2">JACK FLEER:</speaker>

                        <p>Let&#x0027;s in these final minutes reflect on the legacy of the

                            Holshouser administration. What do you think, looking over twenty-some

                            years, are the most important accomplishments of the Holshouser

                            gubernatorial administration?</p>

                    </sp>

                    <sp who="spk1">

                        <speaker n="1">JAMES E. HOLSHOUSER JR.:</speaker>

                        <p>Well, the passing of years probably gives you a different perspective. If

                            you&#x0027;d ask me in 1977, I would have said the Seven Year

                            Transportation Plan was one of the most important things we did. I find

                            if I look at what&#x0027;s out there today in terms of

                            transportation that even though it&#x0027;s on paper and more public

                            than it was in 1972, that you&#x0027;ve got umpteen zillion projects

                            in that plan that can&#x0027;t be funded anytime in the next ten

                            years. That&#x0027;s exactly what we&#x0027;d been trying to get

                            away from. For awhile I thought it worked pretty well. It&#x0027;s

                            hard to say how it has changed and who&#x0027;s responsible. I have

                            a feeling that what&#x0027;s happened is that legislators and DOT

                            members, influential campaign people, want a project. Rather than saying

                            no, they just put them into an early phase in the plan. This

                            isn&#x0027;t necessarily bad because eventually it&#x0027;s got

                            to start some place. But when you put more in the front than

                            you&#x0027;re ever going to be able to put out the back, that leads

                            to a lot of disillusioned people. So I discount that. Rural health

                            centers have <pb id="p33" n="33"/> probably been a good part of

                            something we started. They&#x0027;re still out there helping folks.

                            They changed. We have had a lot of local hospitals close.

                            That&#x0027;s made them more important. You&#x0027;ve got

                            HMO&#x0027;s getting put together all over the place, and

                            you&#x0027;ve got regional hospitals, and this makes regional health

                            centers potentially more a wing of a regional hospital than they were

                            intended to be. But they are out there, anyway, and I think

                            they&#x0027;ve done a lot. Some of the environmental stuff we did

                            has obviously lasted; the Coastal Area Management Act was important, and

                            I&#x0027;ve always agreed with the decisions of the commission

                            staff. I think it has certainly helped us protect the coastline. Every

                            governor can look back on the industry that they brought to the state,

                            and every governor builds on what the previous governor did. We had the

                            first million dollar investment&#x2014;capital investment for new

                            industry, which looks small by today&#x0027;s standards and that is

                            good for the state that it does. I guess I feel good about the fact that

                            we came out of four years with polls showing that they thought the

                            administration had not only done a decent job, but it had also been

                            pretty clean. Sometimes things happen beyond your control.

                            We&#x0027;ve seen that in Washington with people in the

                            administration just doing bad things. It taints the administration to a

                            certain degree, so sometimes you&#x0027;re lucky if you

                            don&#x0027;t have anything happen. That&#x0027;s particularly

                            true when the talent pool from which you&#x0027;re selecting is

                            pretty small. I still feel pretty good about that, and I&#x0027;m

                            always pleased that a number of people still come up to me and thank me

                            for my service to the state.</p>

                    </sp>

                    <milestone n="9216" unit="excerpt" type="stop" timestamp="01:27:48"/>

                    <milestone n="9217" unit="excerpt" type="start" timestamp="01:27:49"/>

                    <sp who="spk2">

                        <speaker n="2">JACK FLEER:</speaker>

                        <p>You mentioned things that motivated you to be governor&#x2014;and

                            things that you sort of wanted to accomplish&#x2014;in an earlier

                            interview. You mentioned that maintaining the university system was a

                            very important goal that you had. And <pb id="p34" n="34"/> obviously,

                            you did maintain it. Was that a difficult thing to maintain during your

                            term? Was it under duress?</p>

                    </sp>

                    <sp who="spk1">

                        <speaker n="1">JAMES E. HOLSHOUSER JR.:</speaker>

                        <p>Let me say one thing to follow up on previous things. I think North

                            Carolina has not been plagued like other states. I think

                            we&#x0027;ve had a history of good government, Democrats or

                            Republicans, and that&#x0027;s been helpful for that state. It

                            probably&#x2014;when you&#x0027;ve had somebody who has had a

                            decent four years with little scandal, it gets easier to build on that.

                            Now, it was very clear in documents that came out with the highway

                            contractors during Jim Hunt&#x0027;s term that some of that had been

                            going on&#x2014;price fixing&#x2014;during my term, and Bob

                            Scott&#x0027;s term before me; maybe even in the term before him, to

                            be honest. It didn&#x0027;t look to me like it had much to do with

                            the administration; there wasn&#x0027;t anything showing state

                            officials were involved in any of that collusion. That was something

                            that was an exception to the rule at that time. Now, let me come back to

                            the question you asked.</p>

                    </sp>

                    <milestone n="9217" unit="excerpt" type="stop" timestamp="01:29:42"/>

                    <milestone n="9218" unit="excerpt" type="start" timestamp="01:29:43"/>

                    <sp who="spk2">

                        <speaker n="2">JACK FLEER:</speaker>

                        <p>The question I asked was that whenever you were reflecting about what you

                            wanted to accomplish as governor, you wanted to maintain the university

                            system.</p>

                    </sp>

                    <sp who="spk1">

                        <speaker n="1">JAMES E. HOLSHOUSER JR.:</speaker>

                        <p>I&#x0027;m sure I said in an earlier interview that I thought my

                            involvement with the creation of the university in 1971 was more

                            important than anything I did as governor. I may be overestimating my

                            own role in that, but that&#x0027;s how I felt. I thought it was

                            good from the standpoint of the university that you had this governor

                            from 1972 through 1977, those first five years, somebody that knew not

                            only the history of why it was created, but knew some of the nuances and

                            players, and pitfalls. Even though we lost the battle on the East

                            Carolina Medical School, being able to get through that four year period

                            with the university structure intact. I&#x0027;m not sure if I look

                            back in 1976, I did a television speech <pb id="p35" n="35"/> right

                            before the election in 1976 that talked about what we&#x0027;d done,

                            and I don&#x0027;t remember saying a whole lot about that. But I do

                            expect that that was one of the most important things that happened for

                            the long term of the state. It helped to provide some underpinning for

                            keeping it on solid ground.</p>

                    </sp>

                    <sp who="spk2">

                        <speaker n="2">JACK FLEER:</speaker>

                        <p>Maybe I&#x0027;m reading you wrong, but are you implying that there

                            were efforts to try to undermine that system?</p>

                    </sp>

                    <sp who="spk1">

                        <speaker n="1">JAMES E. HOLSHOUSER JR.:</speaker>

                        <p>No, I don&#x0027;t think there were. Part of that was in sort of

                            using the pulpit with the legislature; you know, saying

                            &#x2018;Let&#x0027;s give this thing time to work.

                            Don&#x0027;t be meddling around like we&#x0027;ve done for the

                            last decade or so.&#x2019; I may have been seeing a shadow that

                            wasn&#x0027;t out there, but it had been so frequent a problem since

                            I had been involved that I thought it could be.</p>

                    </sp>

                    <sp who="spk2">

                        <speaker n="2">JACK FLEER:</speaker>

                        <p>And I know that you and others who were involved in getting that

                            legislation certainly had to fight hard to get that legislation in the

                            earlier General Assembly.</p>

                    </sp>

                    <sp who="spk1">

                        <speaker n="1">JAMES E. HOLSHOUSER JR.:</speaker>

                        <p>It was a very difficult. It&#x0027;s still just a miracle that that

                            legislation passed, because there were just so many competing voices

                            there. If you had a concept that you were trying to hold in place and

                            yet build a consensus behind it, it meant that you had to have your core

                            theme but also you had to keep fringe issues mediated. As long as you

                            could keep mediating those issues rather than losing the core, you were

                            okay. I still think that will be one of the most important chapters in

                            the history of the state.</p>

                    </sp>

                    <milestone n="9218" unit="excerpt" type="stop" timestamp="01:33:21"/>

                    <milestone n="9398" unit="empty" type="start" timestamp="01:33:22"/>

                    <sp who="spk2">

                        <speaker n="2">JACK FLEER:</speaker>

                        <p>You mentioned that you&#x0027;d lost the East Carolina issue, talking

                            about the medical school at East Carolina. Did you see that as an attack

                            on the core of the university system?</p>

                    </sp>

                    <pb id="p36" n="36"/>

                    <sp who="spk1">

                        <speaker n="1">JAMES E. HOLSHOUSER JR.:</speaker>

                        <p>Yes. Yes, although you had to put an asterisk by that before calling it

                            an attack. That was something that predated the creation of the single

                            university&#x2026;</p>

                    </sp>



                    <p>

                        <note anchored="yes">

                            <p>END OF INTERVIEW</p>

                        </note>

                    </p>

                    <milestone n="9398" unit="empty" type="stop" timestamp="01:34:02"/>

                </div2>

            </div1>

        </body>

    </text>

</TEI.2>

