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Show 4 ' Is Freeport The Answer For Prosperity? f - . Lett Take A X The slogans say Freeport means jobs be more perfect. Hard Look drive is underway again, a full-se- a to make Utah a freeport. Although the idea has, been kicking around for quite some time, many proponents feel public understanding is fuzzy. We couldnt agree more . . . although perhaps for a different reason. : f , Its heres not really so mysterious. the situation: In a capsule, Under present state laws, warehouse inventories and stocks of manufactured goods in Utah on January 1 are subject to property tax unless moved out of the state within 90 days. As an incentive to manufacturers and distributors who might be lured to Utah, Freeport would exempt these goods if theyre shipped a outside the state within 12 months. In effect, we already have Freeport although not on quite so liberal a scale. In 1963, the state legislature passed a bill to provide expanded Freeport which was later declared unconstitutional. The current drive, consequently, is based on two stages. First, the voters are being asked to approve an amendment to clear constitutional barriers. Then the legislature will be expected to work out exact details in its next session. Is Freeport vital to Utah? At this point, were .neither pro nor con . . . but the following editorial comment asks some pertinent questions.: A The Many Moods of Will Lucas that promises to expand employment in Utah i automatically accorded an enthusiastic reception. But before ve clutch at the first straw, lets make sure Freeports blessings arent mixed, glossed over in the hoopla-- , ask ourselves some provocative questions. Ls Its only mature to re member! that everything costs something relief all over Michigan. compare myself with some of the talent across the nation in radio. I met people with names like: Frosty White, Hap Hazard, W'lnkln BUnkln Martlndale, Suh Alamo Texas Smith and Weenie Wlntergarden. I actually felt almost conservative with a handle like Win Lucas. I And It carred over to the I wearing of the clothing. felt spotlighted In my plain grey suit amongst all that Coats of checks and color. and stripes and polka-do- ts plaids In gold orange, red and mandlngo pink. It was a beautifully planned and executed tour of the comArrive Detroit and pany. check In at The Colonial... then fall out for cocktails. Dinner and music w'ith Oscar Peterson... then fall out for cocktails. Trip around Detroit... then fall out for cocktails. Then beddle-by- e (for those fortunate enough to reach the sack). Next morning breakfast and fall out for cocktails. Then, out to the test track and scramble...!!! Three hundred new 65 Tords with keys In the disc Ignition awaiting 300 Jockles who Immediately were metamorphosed Into Barnle Olflelds and A. J Folts. There was the real test for the steel nerves of the Ford M0-tCompany promotional staff. Turning 300 grinning, adrenallzed, red eyed personalities out on the same track at the same time with -- or Rocky Mountain brand new 65 autos. Indlanapo.ls was peanuts In comparison. It was like watching the rapids of the Colorado River after a cloud burst. And the result was about the same... but, miraculously, the cars held up. No one In the world, ever, has devised such a test of endurance for autos like the one I witnessed that ln- famous morning in Detroit last week at the Ford track. Salt Lake was well represented In the simulated Grand Prlx. With my driving record pasted on the front of a little Mustang, I found some of the others pulling over to the side of the track as I casually manipulated on thru and around the turns. And Bowen and Dobbs and Terry and Wal-grand Cousins all made en admirable Impressions with their autos. Youve got to admit, those Ford Motor folks are rugged Individualists to carry off a For two caper like that. weeks prior to the arrival of the 300 D. J.s, all the members of the Ford staff would meet for two hours of meditation and repeat over have and over again.. We Itto fear but fear nothing self.. ..We have nothing to fear but fear Itself'.. .We have nothing to fear. ..But!!! A Hand To Rock The Cradle? ee Neu Review Deal Our babV sitters out of town. My baby tender ran off with the butcher. Oh horrors! No sitter for Saturday even prosperity. Whats the price tag on Freeport? An exhaustive study in 1962 by Dr. Frank K. Stuart of the Bureau .'f Economic and Business Research at the Univerity of Utah predicted Freeport would cost the state $986,383, per year in lost tax revenue. This years Frjport proponents in a bulletin state that the loss would be $879,000 annually. discrepancy is small. Since both reports favor the proposal its reasonable to assume that if either should err a little in the other direction, the loss to our counties property tax collections could easily hit $1 million annually. The stake then is $1 million a year. Thats what were theoretically more jobs in an expanded prepared to spend to gain our objectives The economy. Now what can we reasonably hope to gain if we trade this revenue for the Freeport Proposal? A Dr. Stuarts Warehouse Subsidy? study points out and the intent night. sent law without sacrificing considerations. It allows tax exemptions for inventories January 1 which come from will be used in manufacturing and then shipped out again within nine months. Constitutional amendment number one would lengthen the period to a year. We wont argue that this must be done if we are to hold present industry in the state. that the bill of the amendment is prithe for marily advantage of industries ''warehousing developing primarily a Why is always an interesting question. Ask this about Freeport and youll learn that motivating the present effort is the vacating of Clearfield Naval Depot. The depot can be a tremendous asset or an unsightly burden. However, we wonder if Freeport would promote the right types of activities to utilize the depot? Proponents of Freeport have spent considerable time and as well as study money developing an affirmative an- distribut- Tax economy? dollars are precious. The issue is pot whether we can recoup, itd how the funds can be utilized to provide maximum return. Might there not be a greater advantage elsewhere? ion-based swer. On the other hand, Utahns might believe the question must be considered on a larger scale In this than just Clearfield. case, our $1 million Freeport supporters admit their measure is not by any means the final step. Their bulletin, in fact, states we still have a sales job to do. But with this amendment we add a vital sales tool that makes our natural advantages . . . much much more attractive. Could we tax the inherent better invest from loss resulting Freeport to question: either improve our natural advantages or provide even more effective tools? We seem to shun industrial bonding but its worked well elsewhere.. How about using our cash to support a business development just that a bill easing manufacturing inventory taxes is already on the books ? W hile could bolster the function even manufacturing more by stating that goods must be manufactured here. Truthfully, we also believe this is not likely to happen. The existence of Clearfield and the fact that those behind Freeport are vitally in legislature on-ha- nd its now constitutionally Take heart Published by Great Western News, Inc., 2265 East 4800 South, P.O. Box 17377, Salt Lake City, Utah 84U7, phone Member of Utah State Press Association. 278-28- managing f 1 t i I t editor JOHN B. LUNSFORD Entered as second class matter at the post office at Salt Lake City, Utah, under the act of March 9, 1878. lished every Thursday. Pub- SUBSCRIPTION RATE OUTSIDE CARRIER DELIVERY AREA - - - 15.00 per year SUBSCRIPTION RATE WITHIN CARRIER DELIVERY AREA- - - - -- $3.00 per year -- Mountain the Rocky Review has solved your baby sitting problems. Each week a special baby sitting service column will run on our classified page. Listed by name, age, address, phone, and sorted into neighborhoods, sitters are now within phones reach. Imagine Instant sitters! Advertising In the way of big profits will pay off for baby sitters too. And the classified rates are so cheap were ashamed to mention it. Only 25 cents or $1 a month. Sitters, dont be left out. Dial 278 - 2866 and be the first one In your Before we hop on the Freeport bandwagon, there are other questions wed like to see answered. Many of them havent been in the generally casual presentations to date. No Proof Although the proposed warehousing - type Freeport bill would cost close to $1 million annually, no one has yet dem- tions would require an expert economists insight. If we could have our cake and eat it, too. weyould be fat. If we must chose then baic manufacturing is the key, we believe, because: onstrated inconclusively that the cluding Dr. Stuart new Freeport bill would bring in more manufacturing than the present bill. On the contrary, an important point shown by Dr. Stuart is that inventory taxes form a larger percentage of the distributors cost but are usually a small of the manufacturers total part expense. Maybe Freeport isnt that powerful an inducement to Manufacturers spend a great deal of money on parts which Utah jobbers could provide thereby benefiting a distributive industry and boosting tax potential, too.. 2. ) Manufacturers employ more people than do distribu1.- ) tors. ) Generally, manufacturers have a great variety of costs and needs, creating a chain reaction multiplying and broadening other Utah industry. Inventory tax is a small part of their load. This makes us ask if manufacturing and distributing funcor do they tions compete ... actually complement each other. Could we perhaps have both? Why must we concentrate on one or the other. The answers to these ques doubt- ful, it might be possible to bolster and legitimatize the pre- - Manufacturing creates the greatest possible utilization of natural and human resources; employs more people than a thus business warehousing in more for all. money brings 2. ) Basic manufacturing builds markets .. and markets are the key to any successful distribution business. 3.- ) Basic manufacturing tends to develop other manufacturing. Example is Utahs steel industry, Toa degree, itsexis-tanc- e has depended on markets on the coast. When the price of steel was reduced farther west, this inIf mardustry saw a slow-dow- n. were kets developed here by an influx of basic manufacturing, steel would enjoy an automatic growth and carry along with it other connected manufacturing 1.- Why? 3. The Manufacturing Consideration Did you know Indeed, we believe the come to Utah. wouldnt buy enough. Next Would the Freeport bill bring more manufacturing? so: assume Proponents Think what it would mean in jobs if all our natural resources were made into appliances, food stuffs and clothing right here in Utah instead of being shipped east and west where others are employed to fabricate them? To be blunt, this question from the Freeport bulletin is misleading. out-of-st- ate, ( ) projects. Manufacturing calls for of skilled labor. That means bigger salaries, more spending generally. The shortage of this type of labor in Utah now could be cured. Demand for skills would inspire training facilities ... and, like the chicken and the egg, a supply of skilled labor tends to attract the most desirable type of manufacturer. 4.- ) a higher Standard The Multiplying Factor ' Unless the loss from a tax Incentive program has this sub- stantial multiplying factor, its imposition is debatable. The hbfzoQ. of industrial growth is broadatid there are many ways to gettfiere. What about the possibility of exempting sales or use tax on capital equipment brought in for basic manufacturing? How much '' would it cost and what would it yield? Why not finance extensive research to create specialized types that ot manufacturing could thrive by using our particular combination of natural resources and labor? Could we reasonably spon- sor research centers in connection with our universities. Industrially or state-support- ed iented efforts to develop products would in turn attract manufacturing facilities to the source of knowledge. An example is Thiokols plant for the Trackmaster in Logan. The plants there because the product was developed by Utah Scientific Research Company on the Utah State University campus. These are all possibilities worthy of tigation. thorough inves- Obviously, we cant afford them all . . and maybe we cant afford any of them. A million dollars doesnt go far these days. By the same token, we cant s&y we can afford Freeport without exploring the alternatives that $1 million could buy. Back To Now: Immediate Alternatives Parents, Is this whats troubling you? terested in distributive functions make it likely that the legislature will include a complete warehousing clause in the bill. o-t- her N the field of manufact- extent, uring. So our first jolt comes when we ask ourselves if we wish to invest $1 million a year in in The Impetus Of It A 11 Ford motor company has Just got to oe the bravest company In the world!!! You know what they did??? They picked up 300 of the nations top radio personalities and flew them all back to Detroit and entertained them for two days. Sponsoring a war In southeast Asia would be less dangerous undertaking. 1 mean, can you imagine Inviting, wining and dining, 300 of the worlds largest egotists??? Three hundred of the worlds loudest voices?'? Three hundred of the worlds self Ford Motor Company did It. And appointed funny men??? after It was all over... you could hear the audible sigh of Page 4 September 17, 1964 on-ha- nd Heaven only knows, wv favor industrial growth in Utah. However, as we shop for a stimulated economy, lets pick the deal that will benefit us most over the longest period of time. AneWets be sure the price is right. by Will Lucas And listen, the opinion of myself as somewhat of a wild man has changed when lilt and the timing couldnt Anything To quote his report, The inventory exemption on goods destined for interstate commerce would stimulate the' creation of basic industries pardisof the in field ticularly tribution and, to a lesser, Worlds Bravest Auto Company . . Unfortunately, the constitutional amendment up on Novembers ballot leaves little in the way of alternatives. The real question will be up to the legislators. .We agree tfith Freeport proponents, the present law exempting inventory taxes for manufacturers must be retained and, in fact, broadened to include inventories originating in Utah. For this reason, the constitutional amendment should be passed now. Beyond this, we remain of Is heavy development distributive businesses the best It cant harm Utah but doe i it promise the most for our million bucks a next step? . . . year? dont think Utah should whole Freeport grab-ba- g the buy until the legislative counand the electorate cil has weighed it against all alternatives, turned it inside-o- ut and studied every angle. The question is not one of benefit per se, its one of We alternatives. Above all, lets not press our noses against the window of industrial Opportunity and daydream our assets away. 4 $ fs V |