anaheim-gazette 1932-06-16

State Suffers $3,101,674,82 Loss In Taxes From Public Utilities During Past Year Analysis Shows Only Two Slight Gains Made, While Heavy Losses Are Incurred by Railroads Suffering from Motor Truck Competition, Telegraph and Telephone receipts Low California will derive $3,101,674,82 less this year than in 1931 from taxes assessed to public utilities and insurance companies for the general support of the state government. This was revealed here recently upon completion of the 1932 tax roll by the state board of equalization. Current taxes from these sources will aggregate $36,271,388.26 as contrasted with $39,373,063.08 assessed last year. A loss in state general fund revenue of 7.88 per cent will result. An analysis of the items contained in the 1932 assessment roll has been made by the members and secretary of the state board of equalization, who are R. E. Collins of Redding, chairman, John C. Corbett of San Francisco, H. G. Cattell of Pasadena, Fred E. Stewart of Oakland, Ray L. Riley, state controller and Dixwell L. Pierce, secretary. Only Two Gains This review discloses that only the taxes assessed to gas and electric companies will show any gain. The statement of the board says: "Gross receipts from the gas and electric business done in California during 1931, used as the basis of the current tax, are $188,862,062.75 as compared with 1920 revenues of $188,087,-191.33, marking an increase of .04 per cent. As the tax rate fixed under an act of the 1921 Legislature is 7.5 per cent the amount which these companies will pay this year is $14,164,-654.70." "Railroads, with taxes aggregating $10,117,596.68, are the next largest contributors to the funds used for the general support of the state government, but they have experienced drastic reductions in their gross receipts. During the past five years railroad revenue subject to the California gross receipts tax have declined from $238,-917,922.98 in 1926, used as the basis of the 1927 tax, to $164,779,993.28 in 1931, on which the current tax is calculated. of the gross receipts tax, railroads paid $4,768,203.58 as contrasted with only $1,224,767.34 paid by the gas and electric companies. By '27, with some changes in rates, the railroad taxes had increased to $15,506,465.58 and gas and electric company taxes to $12,351,488.92. Now the railroads lag far behind. "Long steam railroads are the hardest hit. Their taxes, based upon 7 percent of their 1931 gross receipts from operations, are $7,837,709.42, as compared with 1927 taxes of $12,081,704.76, and 1931 taxes of $10,111,541.78. In this last year alone their taxable revenues have shrunk 22.49 per cent." Motor Vehicle Responsible "While part of this decline is attributable to the present general economic condition, automotive competition is undoubtedly responsible in large measure for the plight of the railroads and the corresponding diminishment in their state tax payments." "This board recognizes that motor vehicle transportation is destined to become an increasingly important factor. However, we are also convinced that effective steps must be taken immediately to regulate and tax such transportation so that the railroads may at least be given a chance to exist and to pay taxes." "It will be the imperative duty of the next legislature to remedy this situation through providing for adequate taxation of commercial automotive." "Railroads, with taxes aggregating $10,117,596.68, are the next largest contributors to the funds used for the general support of the state government, but they have experienced drastic reductions in their gross receipts. During the past five years railroad revenue subject to the California gross receipts tax have declined from $238.917,922.98 in 1926, used as the basis of the 1927 tax, to $164,779,993.28 in 1931, on which the current tax is calculated. Loss Rewards Order This loss in business, amounting to 31.03 per cent, has reversed the relative positions of the railroads and the gas and electric companies as contributors to state revenues. Ever since the inauguration of the system of gross receipts taxation railroads have been the principal taxpayers, but such is no longer the case. In 1911, which was the first year HOME APPLIANCE AND SERVICE CO. Offers Full Size Washer $54.50 Cash No Bolt Holes Thru Tub—Lovell Wringer Allowance on Old Washers Repairs for All Makes Washers, Vacuum Cleaners 812 N. Los Angeles St. Ph. 4809 Insurance Losses Insurance companies, which follow the railroads in the list of state taxpayers with a 1932 assessment for $6,640,469, have fared better but show a loss of 5.02 per cent as contrasted with 1931 taxes. Their taxes have been calculated at 2.6 per cent of their gross premiums with certain deductions and offsets allowed by law. A comparatively small class of insurance companies covering oceanine risks pays taxes based on 5 per cent of net underwriting profit under a 1930 constitutional amendment. Their current tax is $16,413.98 as compared with the $10,050.80 which they paid in 1931, pursuant to the first series made under the new law. Much Less Revenue Telegraph and telephone companies assessed for $4,925,810.25, follow insurance companies in the list of state taxpayers. These taxes, calculated at 5.5 per cent of their 1931 gross receipts from operations, are 1.9 per cent of their 1931 taxes based on 1930 gross. Car companies, such as those operating parlor, sleeping, refrigerator and tank cars over the railroads, have been assessed at 5.25 per cent of their 1931 gross receipts for a current tax of $329,694.70. This is 15.44 per cent of their tax last year. Keep your dollars moving! Prominent Speakers • Fine Music Saturdays...7:15 P.M. KFI–KGO PROSPERITY STRAIGHT AHEAD Prominent Speakers • Fine Music Saturdays ... 7:15 P.M. KFI – KGO "BACK TO GOOD TIMES" SIGNS OF BETTER TIMES* A savings deposit increase of $26,800,000—for the 4 weeks ending May 4—has been reported by the member banks of the Federal Reserve System in the seven western states. Wall Street Journal New construction started in Sacramento during April, amounted to more than a million dollars—a gain of 113 per cent over April, 1931. Federal Reserve Bank Latest available data at the time this information was compiled. HELP MAKE PROSPERITY BY SUPPORTING CALIFORNIA FARM PRODUCTS DAY The nation’s dollars are rapidly getting back to work. Confidence and common sense are with us again. This is especially true throughout California... The moving dollar is the stabilizer of prosperity, the life of industry, the power behind the payroll. It is the infallible remedy for unemployment... The goal of “Good Times” can be reached only by dollars that move!... Move your money by banking, sensibly spending or investing it. Banked dollars create credit — credit finances business — business creates prosperity... California courage and initiative are leading the nation back to good times! OPEN A CALIFORNIA "BACK-TO-GOOD-TIMES" ACCOUNT IN THIS BANK—OR ANY BANK BANK OF AMERICA NATIONAL TRUST & SAVINGS ASSOCIATION A Gold Rush of the Unemployed Scene on the South Platte River inside the city limits of Denver, where expert placer miners teach the unemployed how to wash gold out of the gravel of the river bed. They can get from $1 to $2 a day and sometimes there's a lucky strike. Speaker Praises Good Times Idea Cities Own Work and Belief As Evidence of Sincerity In State A program Saturday in which Mrs. Katherine Philips Edson, former member and executive officer of the California state industrial welfare commission, was the principal speaker, a significant statement by one of California's pioneer merchants and civic leaders, R. B. Hale, was read. In announcing an extensive program involving the remodeling and rearrangement of Hale Residential Center, John H. Hushman and sons John F. and Lloyd have purchased the Hawa Wahlberg Gives Study of Costs Will Appear at Institute June 18th to Analyse Records H. E. Wahlberg, county agricultural agent for Orange county, is to present to the citrus growers of California at the summer citrus institute at Santa Paula the results of studies conducted by the agricultural extension service with citrus growers in getting cost of production records. The institute which is to be held under the auspices of the inter-county citrus department of the farm bureau, and the agricultural extension service will be held in the auditorium of the Santa Paula union high school, Santa Paula, Saturday day, June 18, 1932 at 2:45 a.m. Seventy Orange county growers have co-operated with Mr. Wahlberg in carrying on this cost study. Farm advisors in other counties have had similar studies underway; and Mr. Wahlberg will combine these studies into a careful analysis from the standpoint methods of reducing operating costs, as indicated in these studies. With increased competition in the citrus industry, it is essential that more attention be paid by citrus growers to efficiency in operation, with lowered operating costs. Mr. Wahlberg in his address, will point out methods which can be used to lower operating costs, and at the same time secure efficiency in production. Other addresses along the lines of reducing costs—including fertilization, the low-grade problem, taxation and pest control, will be given at this institute. Hushmans Purchase Service Station John H. Hushman and sons John F. and Lloyd have purchased the Hawa Cities Own Work and Belief As Evidence of Sincerity In State A program Saturday in which Mrs. Katherine Philips Edson, former member and executive officer of the California state industrial welfare commission, was the principal speaker, a significant statement by one of California's pioneer merchants and civic leaders, R. B. Hale, was read. In announcing an extensive program involving the remodeling and rearranging of Hale Brothers' store in San Francisco, Hale declared that this investment was being made because of the store's belief in the unquestioned destiny of San Francisco and of California. "At a time when there is unemployment and uncertainty we are going forward, giving employment; putting our house in order, to give better service without extravagance, and good merchandise at lower price levels," stated the message of Hale, former president of the California state chamber of commerce and director of that organization. "We hope that our example and your inspiring influence may cause others to follow and join the great parade which will lead us all back to prosperity," he continued. "May we assure those who are able, yet faltering, that the joy of performance is compensation on itself and that the best time to partridge is when the people are in need. More power to you, Mr. Morrish and the bank of America, and our compliments to A. P. Giannini in your 'Back to Cloud Times' program. Let everyone help an dthe promise will soon become a realization." Praise Citrus Cost Analysis Data Wins Approval of Experts; Helps the Grower Many Ways Six years of orange and lemon production costs in Orange county has just been completed by the farm advisor's office. The data was submitted last week to the 80 citrus growers who are furnishing the cost data. The 1931 crop data were the first to reflect the effect of diminished purchasing power of the consumer. There has been a great demand for the cost analysis during the past season by growers and others directly interested in the citrus industry. A resolution was unanimously passed by the citrus growers at last week's meeting, held at Anaheim, that the study be continued to cover a period of The four classifications in the first group, all attributable to war preparation in case of war, and most of it to the World war, are nearly three times the amount for public works and all other expenses of government. In studying these figures there are several pertinent facts which cannot be overlooked. Veterans' relief is by far the largest single expense. In fact, $5 out of every $14 spent by Uncle Sam goes directly for the relief of veterans. If we exclude interest and redemption payments on the public debt, we find that veterans' relief is slightly more than half the cost of all other purposes of federal government, including national defense, law enforcement, farm relief, public works, the support of the courts and the entire administrative overhead of ten departments and 29 independent offices. Look at Facts Several controversial problems enter the taxpayers mind in regard to veterans' relief. The average taxpayer is anxious to give all the support possible to relief of the veterans, until such a time as that burden endangers the national credit and is too great for the taxpayer to make enough on which to exist. Sympathetic or not for the bonus claims advanced, the taxpayer has been forced to look at the situation in a matter-of-fact way. By February 1932, the total relief spent directly for veterans of the World war was $475,505,520.29. Besides, Uncle Sam had loaned $1,248,000,000 on paid-up certificates, while there is continued and loud clamor for paying $2,390,000,000 more, which in addition to this sum would cancel the $1,248,000,000 loan already made and make of it a payment, thus bringing the total relief up to $8,113,505,520.29. The same already spent for relief of veterans is about the same as the present value of Europe's war debts to the United States, with future interest discounted at 5 per cent. If bonus payments were made that would add $3,638,000,000 and considerably exceed the war debts. In considering this proposal let us study the methods by which original payment of the bonus certificates, in 1944 was contemplated. The first plan was to appropriate $112,000,000 every year. Due entirely to compound interest on such a plan, a saving of $1,303,000,000 would be made over the proposal to pay the certificates now—quite a difference because it touches every man, woman and child in America. In examining one of major expenses of the veterans' relief the taxpayer learns of several sad features. One is that congress has been in an exceptionally lenient mood, and has permitted changes to creep into the measures in effect until the scope of their application has broadened, in some cases... just been completed by the farm advisor's office. The data was submitted last week to the 80 citrus growers who are furnishing the cost data. The 1931 crop data were the first to reflect the effect of diminished purchasing power of the consumer. There has been a great demand for the cost analysis during the past season by growers and others directly interested in the citrus industry. A resolution was unanimously passed by the citrus growers at last week's meeting, held at Anaheim, that the study be continued to cover a period of ten years in order that a fair cross-section of good and poor price periods may be reflected in the analysis. Dr. R. M. Rutledge, district manager of the Union Deposit company of Los Angeles, who was present, said, "The citrus production cost summary as prepared by Farm Advisor Harold E. Wahlberg is the finest report of its kind available." Ralph Taylor, secretary, agricultural legislative committee, Sacramento, representing the majority of cooperative marketing associations in California, commenting on the economic study issued, "This compilation produced in Orange county is a most valuable contribution to the valencia industry. It is helping the grower analyze the efficiency of his business." Farm Advisor Wahlberg reports that scores of farmers in Orange county are using the cost summaries as a guide to reducing excessive production costs. Copies are available upon request at the farm advisor's office. Home Appliance Opens on N. L. A. W. R. Borg, who has been northern Orange county representative for a large vacuum cleaner concern for several months, recently opened the Home Appliance and Service company at 813 North Los Angeles street. A complete line of washing machines will be handled, both new and recircitioned, while later a line of vacuum cleaners and electric refrigerators will be added. Mr. Borg for ten years was in business at Chicago, Illinois. He joined the vacuum manufacturers there and was sent to San Diego, then to Los Angeles and finally to Anaheim, where he has decided to make his home. Two Sad Facts One of these measures liberalized on July 3, 1930, authorizes payment of allowance to any honorably discharged ex-soldier (providing he is exempt from income tax payments) who is suffering from a 25 per cent or greater permanent disability not the result of his own willful misconduct, even though his disability was not acquired in service during the World war. Under this, a veteran hurt, rather recently in an automobile accident in Anaheim, has privileges similar to those of soldiers wounded by Argonne gunfire. In hospitalization there are similar liberalizing measures which seem rather expensive and somewhat unfair. A year ago, for instance, the hospital population under the bureau's care included 33,302 veterans of the World War, while on the same date the year before there were 28,850. Less than half of those patients (15,701 or 47 per cent) were treated for disabilities caused by service in the war; more than half (17,601 or 53 per cent) were being treated for diseases, etc., in no way connected with the war. This accounts for increasing hospital expenditures, whereas in other countries, notably England, there is a drastic decrease in amounts spent for this purpose. These measures should receive consideration of congress, but under the present political set-up and especially since the presidential election arrives in November, there is little hope of any immediate effective curtailment of present legislation which is eating up the taxpayers' dollars so rapidly. City’s Cost for Year Cut $15,000 (Continued from Page 1) divided into five classes, are estimated as follows: General government: Mayor, council $3,229.70 Auditing 600.00 Treasurer 2,601.32 Assessor 1,909.07 Tax collector 2,574.30 Recorder 1,745.00 Clerk 3,834.70 Attorney 1,843.8 Engineer office 2,292.60 General (building) 3,291.58 Advertising 4,506.00 Administrative 5,170.02 Protection to life and property: Police department 29,992.10 Fire department 13,518.48 Building Inspector 2,118.82 Ornamental lights 3,631.81 Conservation of health: Social welfare 1,801.87 Sanitation, and cleanliness promotion: Domestic sewers 836.62 Joint Outfall No. 1 2,315.09 Outfall, Nos. 2, 3 and 4 1,922.22 Street cleaning 6,388.98 Garbage collection 5,737.80 Refuse, trash 12,920.36 Cleaning weeds 3,276.57 Street department: Supervision 1,929.41 Care, Maintenance 15,846.60 Oiling 1,200.00 Parks 20,637.44 Athletic playgrounds 4,855.00 Plunge 4,855.00 Theatre 1,059.41 Ranch No. 1 5,378.02 Ranch No. 2 150.00 Parkway trees 5,337.80 Planning, zoning 200.00 Public service 8,069.08 Light and water 16,903.62 Water department 12,926.60 Metropolitan water dis. 500.00 Light installation 1,327.43 Garage storeroom 1,575.80 Friends Ponder Cause of Suicide Friends of Theodore Dietrich. 72, Anaheim rancher who shot and killed himself last Friday and for whom funeral services were held Tuesday afternoon this week pondered over the note he had addressed to Henry Gatzens, in which Dietrich said he was tired of life and directed those investigating to open his safety deposit box at a local bank, where a will was found giving his possessions to relatives living in Europe. Dietrich's body was found Friday by J. J. Dillon, a neighbor who had noticed absence of activity and investigated. A receiver lying near with one shell shot and five loaded told the sad story. Coconer E. R. Abbey declared the case suicide, and the body was taken to Lacks, Terry and Campbell, where funeral services were held Tuesday. With Roy Vargit K. Ledbetter of the first Calvary church officiating, Palmere at the burial ceremony in Anaheim cemetery were Fred Kepling. David Holden, Hans Gateens, Ignez Baeckler, H. H. Freese and August Higgins. 2800 KILLED or INJURED Each day there are 2800 persons killed or injured by automobiles. Where this misfortune will strike next, no one can tell. Better be safe with adequate insurance than sorry if you are the unfortunate victim. A broad EXCHANGE policy providing for all automobile hazards can be obtained at the lowest cost if you are a careful driver. "Buyers have confidence in Sunkist!" "A citrus grower can have no finer asset than the hard-won preference of the public" Athletic playgrounds 4,855.00 Plunge 4,855.00 Theatre 1,959.41 Ranch No. 1 5,378.02 Ranch No. 2 150.00 Parkway trees 5,397.80 Planning, zoning 200.00 Public service 8,969.08 Light and water 96,903.62 Water department 12,926.69 Metropolitan water dis. 560.00 Light installation 1,327.43 Garage storeroom 1,575.80 Gila-Bend-Tucson Road Being Oiled Oiling operations are still under way on Highway No. $4 on the road between Gila Bend and Tucson, Arizona, and motorists will encounter an eleven-mile rough detour at Red Rock, reports state. WESTINGHOUSE RADIO FEARN Easy Parking 273 E. Center St., Phone 3111 Anaheim EACH day there are 2800 persons killed or injured by automobiles. Where this misfortune will strike next, no one can tell. Better be safe with adequate insurance than sorry if you are the unfortunate victim. A broad EXCHANGE policy providing for all automobile hazards can be obtained at the lowest cost if you are a careful driver. FARMERS' AUTOMOBILE Inter-INSURANCE Exchange Orange County Mutual Fire Insurance Building Main at Eleventh Street SANTA ANA, CALIFORNIA Office Telephone 3860 BEFORE the Exchange was founded, an orange was just an orange. Buyers gamble every time they bought. There was no need to depend on, no brand to have faith in, as were retarded. One of the Exchange's first moves was to publish standards of quality. 'Good citrus' is based on Exchange success. On it are built value of the Sunkist name and the effectiveness of Sunkist advertising. Years of careful grading have won the evidence of trade and public. In the minds millions, Sunkist means dependable quality. People gladly pay the best prices for this assurance. To protect the Sunkist reputation, we organize a Field Department to coordinate methods enforce standards in our widely-scattered housing. It has given us improvements in grading packing—better pest control methods. In from tree to refrigerator car, the efficiency of any Exchange grower or shipper are now made available to the group. "The Exchange pioneered this highly-developed means of maintaining standards for its fruit. Today it protects the priceless asset it built—the confidence of buyers in our name." If not now a member—Learn why it is that Exchange growers, year after year, average higher returns for their crops. Talk to the manager of the nearest of the Exchange's 211 local associations or 25 District Exchanges. Or write, Growers Service Bureau, Box 530, Station C, Los Angeles. Sunkist ORANGES • LEMONS GRAPEFRUIT The world's best-known brand of fresh fruits, marketed by the California Fruit Growers Exchange, a non-profit, cooperative growers' marketing organization, whose more than 13,000 members represent more than 75% of the entire California and Arizona citrus industry.