National Affairs: The Books Are Straight

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North Carolina's Governor Luther Hodges, a courtly textileman who came out of retirement to enter public life four years ago, likes to keep his books straight. Assured of re-election after romping through the May 26 primary with a record 401,082 votes, popular Democrat Hodges last week proceeded to clear up his accounts with a businesslike gesture that sent chills through other politicians across the country.

His renomination campaign, the governor announced candidly, had cost 25% less than the $40,000 raised for his campaign fund. Each of the 329 contributors, with the exception of himself, his wife and a tiny band of close advisers, would get a 25% refund. Said Hodges after the checks were mailed out: "It occurred to me that this was the only proper thing to do."