55And now a word from the man who

In honor of this election year, we sent identical letters to the incumbent and the candidate for governor in all the eleven western states. The theme being, "if elected, what will you do for the lumber and building materials business?" The total response may be seen on this page. You can draw your own conclusions, but we don't think it augurs well for the industry. Incidentally, for what it's worth, all those who responded were Republicans.-Editor.

The Mercha.nt

Dear Sirs:

As Governor, I will take steps to bring new industry to California and encourage ..-expansion of industry already here-among theen, steps that wiil get our building industry moving again.

The building industry has been hit five times harder in California than in the rest of the nation. Building permits are down 49 percent from last year, mortgage foreclosures are up 38 percent and property tax delinquencies are the highest since the depression bottom of the I930's.

I have devoted considerable time talking to prominent industrialists about the economy of California and about what can be done to get the state out of the current building doldrums. These authorities verified that California's tax laws and unemployment insurance costs make it difficult for big industry to locate in California and make them reluctant to expand plants already here.

Every lumber dealer must be aware of the effect of the inventory tax on his business. As Governor, I will establish a system of credits permitting a partial writeofi of inventory tax payments against state franchise taxes and eliminate the inventory tax as rapidly as possible. This tax is an obstacle to improvements of California's business climate.

Indusrrialists tell me the Governor iust

The Merch,ant

Dear Sirs: ignored; and ['m passed before I

Your letter was not sorry that the deadline saw it.

But, right after the election, I went for a tweday rest in the mountains and then doesn't seem to care about our statets worsening business climate. He has made little real effort to attract the plants which would be a shot in the arm to the building industry and would also provide jobs.

I have proposed that leaders of Cali fornia industry and labor help me devise a plan that will bring additional business into California. The lumber industry can make an important contribution to this plan.

There will be a major undertaking to ma.ke personal contracts with expansionminded businesses all over the nation, aimed at convincing them California is not only people-oriented and job-oriented, but is also business-oriented.

Every efiort must be made to reduce the skyrocketing costs of government - the cause of high taxes. As Governor, I will appoint outstanding representatives of business and the professions to government posts. Their aim will be to put our state government on a business-like basis; this will include continuing investigations into every state project to make certain it is necessary and cannot be reduced in size.

The lumber industry is a vital part of California's economy, and my administra. tion will give it the recognition and consideration it deserves.

Ronald Reagan

Los Angeles, California into Tucson; and the request for a statement on what I would do for the retail lumber and building materials dealer reached me ftoo late].

Sincerely,

Jack Williame Phoenix, Arizona

The Merchant Dear Sirs:

The retail lumber and building materials dealers throughout the western states are vitally dependent on a stable timber industry.

Oregon is getting hit doubly hard in the present crisis in credit. We sufier from the same inflation as the rest of the country. At the same time, the stability of our itate's largest industry is in jeopardy because tight mortgage money is drastically cutting the number of new home starts in Oregon, and elsewhere in the country.

On August 9, I telegraphed President Johnson asking that he support measures designed to end this "Crisig in credit." I recommended to the White House:

(l)Termination of the Participation Sales Act of l966-which increases interest rates by allowing "backdoor" federal spending.

(2) Allowing mortgage loans to reflect 1966 market values by removing the Federal National Mortgage Association's $15,000 administrative limitation on purchase of mortgages under its secondary market operations.

(3) Reduction of non-essential, non-defense federal expenditures in order to keep federal spending as close to income as possible.

On August 13, I wired Oregon's Congressional delegations, urging support of a measure to pump over $3 billion into the Federal National Mortgage Association.

Families needing to build or expand their homes must be able to borrow money at reasonable rates of interest. These families, the lumber industry and the retail lumber and building materials dealers must not be made the 'oscapegoat" of governmental efiorts to control inflation.

As a state official, I will continue to work for a more favorable economic climate for the forest products industry.

Sincerely,

Tom McCall Salem, Oregon

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