The Screen Guilds’ Magazine (November 1934)

November, 1934 3 Why Vote for Merriam? Ry J. Ray Files Los Angeles Chairman, Wardel! Primary Campaign Committee and James L. Beebe Los Angeles Chairman, Creel Primary Campaign Committee T HERE are two ways to look at the candidates who seek your vote for Governor: from your own selfish stand¬ point, and from the broader social view¬ point. Let us consider both. From your own selfish, standpoint : As a screen writer or actor you will be affected by the Epic plan, if Upton Sinclair should be able to put it into effect. He will need money for rents, ma¬ chinery and opera¬ tion, to get his state farm and factory projects started. Impartial analysis by a non-partisan, non-political organ¬ ization which has been studying tax matters in Califor¬ nia for many years discloses: That the Epic plan would increase state expenditures 345 million dollars a year. That the Epic plan would reduce present state income 95 million dollars a year. That the net defi¬ ciency to be raised from sources not stated in the plan, would total 440 mil¬ lion dollars a year. This is fourteen times larger than the largest surplus which has ever ex¬ isted in . the state treasury! The only source of this money that will be necessary to finance the Epic plan is taxes. And the only sources of taxes are income and property. The Epic plan (Section 5) proposes a state income tax, starting with incomes of $5000 a year, steeply graduated until incomes of $50,000 a year would pay 30% state tax, with higher brackets pay¬ ing still more—in addition, of course, to federal income tax. The Epic plan likewise calls for heavy taxes on real property. Starting with homes valued at $3,000, one-half of one per cent tax is added for each $5000 increase in valuation, un¬ til homes valued at $100,000 will pay approximately $11,000 state taxes a year, in addition to city, county and school- district taxes. If the Epic plan succeeds in crippling the motion picture industry as Mr. Sin¬ clair predicts that it will, he then pro¬ poses to have the state take over the making of motion pictures on a collec¬ tivized basis. Certainly, under those con¬ ditions, screen writing will not be a very remunerative profession. But suppose you are willing to over¬ look the immediate personal consequen¬ ces to yourself and your dependents. Let us look at the plan from a broader view¬ point. From the social standpoint: We must choose between carrying on or destroying our private business. Pri¬ vate industry and state industry cannot exist side by side. As both Mr. Sinclair and his opponents have pointed out, the Epic plan, starting with comparatively mild beginnings, would soon wipe out private business “like a river eating into a sandbank. ’ 7 Heavily taxed pri¬ vate industry could not compete long against tax-free, payroll-free state in¬ dustry. Our economic au¬ tomobile may have a flat tire, but that doesn’t force us to go back to the horse and buggy. Our economic structure may need repairs. But Mr. Sinclair , is simply not the good mechanic who should make them. The sad fact is that the Epic plan is a sentimental dream. Its sponsor is an emotional enthusiast who has believed in and crusaded for countless quack rem¬ edies for human and economic ills, ex¬ tending from Ab¬ rams’ magic ma¬ chine to raw vege¬ tables. He has sponsored socialist colonies, and each time they have failed pathet¬ ically. Social planning is a profound, techni¬ cal job. The entire resources of the federal government are being devoted to this monumental task. The Epic plan, after a few months, would provide re¬ actionaries with a horrible example that would discredit much of what the na- (Continued On Page Twenty-two) REHABILITATION_by Governor Frank F. Merriam There is no phase or aspect of needed relief for the unemployed which should not he directly and definitely linked to plans for rehabilitation and recovery. The full and unreserved resources of the country, of the state, of the com¬ munity, of the individual citizen, should be available to relieve and eliminate dis¬ tress, but our fundamental and ultimate purpose is to restore our population to complete economic stability. In such a tremendous and comprehensive undertaking both the government and the people themselves must plan and proceed with such wisdom and care that we do not—in our anxiety to relieve suffering humanity—-undermine the morale and impair the spirit of large groups in the population. Radiating from Federal government, and finding a counterpart in every governmental agency of state, county and municipality, the work of relief, of service, of attempted rehabilitation, is going forward zealously and hopefully. Responding to specific recommendations from the National Relief Administra¬ tion, I called the California Legislature into extraordinary session in September and obtained legislative approval of a $24,000,000 relief bond issue, which will appear on the November sixth ballot. Each month, the Federal government is spending approximately $4,000,000 for various forms of relief in this State. The National Relief Administration felt that California should provide out of its own resources a sum of not less than $24,000,000 to be added to the moneys expended here by the national government. This recommendation appealed to me as a reasonable request The full sum as represented by the relief bond issue will be used in California for the relief of human needs and destitution if the people approve the measure on election day, and thus, if made available, will result in the average monthly expenditure of approximately $6,000,000 when the bonds are certified. In addition to this provision for direct relief, I submitted to the Legislature a program designed to lift some of the burdens from the taxpayers, from the victims of heavy special assessments, and from those citizens who have found their financial obligations too heavy to carry without further governmental assist¬ ance. This program was approved. Among other things it provides for redeeming ■tax-delinquent property and for the waiving of penalties, for refinancing in¬ debtedness of reclamation districts, prohibits tax sales until next April, authorizes special assessment districts to refinance their indebtedness, provides a mora¬ torium until next February on foreclosure of properties in connection with de¬ linquent special assessment bonds, and extends moratorium on mortgage and trust deed foreclosures. At the regular legislative session, a more comprehensive and permanent pro¬ gram will be accomplished under which the resources of California will be mobil¬ ized in the interests of the people as a whole. It is by sensible and sound planning that lasting and definite progress will be made. Every interest of California’s agriculture, industry, manufacturing, marine, mining, petroleum, and general business undertaking will have the active and attentive assistance of the State government if I am retained as the State’s chief administrative officer.