Chains

In politics as in fruit, California boasts the juiciest, the most exotic. Having savored Upton Sinclair's EPIC in 1934, she celebrated 1935 by holding the longest, bitterest, most be-lobbied session of her Legislature in history, a free-for-all that ended last week on the front doorstep of Governor Frank Merriam. Today 22 States have chain store taxes. Into the heated session of the California Legislature, Progressives introduced a chain store tax on a California scale-- $1 for one store, $2 for the second, $4 for the third and so on in geometric progression up to $500 on the tenth and each additional store. Since California has only 9,000 chain stores compared to 77,000 individual stores, the State Assembly, with a whoop and a halloa, passed the bill 68-to-8. When the bill reached the State Senate, the great oil lobby swung into line, got filling stations exempted. While Sacramento stewed in summer heat, ice companies won exemption. To Sacramento went a handsome young proprietress of a beauty shop chain: stores selling wares "incidental to personal service" were exempted. That probably let out the dental parlor chain of "Painless Parker." Chief target remained the 1,274 stores of food chains, Safeway, Piggly Wiggly, Mac Marr, Pay'n Takit, but also hit were such chains as Woolworth, Kress, Newberry, Penney, Walgreen. The State Senate thumped the bill through 34-to-4. Then California shook as with an earthquake. Radio, billboard and newspaper advertising propaganda fought propaganda. The Hearst Press turned against the bill. All California's frantic energies were concentrated on getting Governor Frank Merriam to sign or to veto. A hundred chain store men, 900 independents, with bands, banners, slogans marched on Sacramento, packed the Assembly chamber, booed and shouted when the Governor held public hearings. Progressive Republican Assemblyman Melvyn Cronin demanded acceptance of the bill to stop the centralization of wealth, prevent the destruction of independents, save the State from wage slavery, keep open for posterity the road of opportunity. John Francis Neylan, Hearst lawyer, trumpeted the counterblast: confiscation, a 10% boost in food prices for those least able to pay, a tax on efficiency of distribution. "We have all lived long enough," cried eloquent Attorney Neylan, "to know that the men running these chain stores have not got horns. They are not people who chew up little babies." Governor Merriam was in a hot place. He delayed as long as possible. He meditated that if he signed the bill it would not in any case become effective until it has been approved by a State referendum in November 1936. Waiting till the last minute of the last hour of the last day permitted by law, he decided to take a chance, signed.

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