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This file contains: Letter from H.R. Haldeman to George Vaughn. 1 pg. [Letter], 11/3/1962 Letter from George Vaughn to Harry R. Haldeman. 1 pg. Attached to previous. [Letter], 11/1/1962 Letter from H.R. Haldeman to Leonard Valiukas. 1 pg. [Letter], 11/1/1962 Letter from Leonard Valiukas to Bob Haldeman. 4 pgs. Including attachments. [Letter], 10/31/1962 Letter from Raymond Vandegriff to Richard Nixon. 2 pgs with attached business card. [Letter], 10/27/1962 Letter from Raymond Vandegriff to Richard Nixon. 1 pg. [Letter], 10/20/1962 The Election Victory Trail Vol. 1 Edition 9. 2 pgs. Duplicates not scanned. [Newsletter], 10/22/1962 Letter from H.R. Haldeman to Leonard Valiukas. 2 pgs. [Letter], 10/171962 Letter from H.R. Haldeman to John Vaughn. 1 pg. [Letter], 10/18/1962 Memo from Loie to Bob Haldeman about RN letter to Mr. and Mrs. Jack Clifford. 2 pgs including attachment. Attached to previous. [Memo], 10/18/1962 Letter from Dorothy Wright, secretary to Haldeman, to R.E. Vandergriff. 1 pg. [Letter], 10/18/1962 Letter from Raymond Vandergriff to H.R. Haldeman. 3 pgs including attachment. Duplicate newsletter not scanned. [Letter], 10/15/1962 Letter from Raymond Vandergriff to H. R. Haldeman. 2 pgs. [Letter], 10/4/1962 Letter from Ray Vandergriff to H.R. Haldeman. 4 pgs including attachment. Duplicate newsletter not scanned. [Letter], 10/1/1962

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26127996
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WHSF: Returned, 62-5
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26127996
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WHSF: Returned, 62-5
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This file contains: Letter from H.R. Haldeman to George Vaughn. 1 pg. [Letter], 11/3/1962 Letter from George Vaughn to Harry R. Haldeman. 1 pg. Attached to previous. [Letter], 11/1/1962 Letter from H.R. Haldeman to Leonard Valiukas. 1 pg. [Letter], 11/1/1962 Letter from Leonard Valiukas to Bob Haldeman. 4 pgs. Including attachments. [Letter], 10/31/1962 Letter from Raymond Vandegriff to Richard Nixon. 2 pgs with attached business card. [Letter], 10/27/1962 Letter from Raymond Vandegriff to Richard Nixon. 1 pg. [Letter], 10/20/1962 The Election Victory Trail Vol. 1 Edition 9. 2 pgs. Duplicates not scanned. [Newsletter], 10/22/1962 Letter from H.R. Haldeman to Leonard Valiukas. 2 pgs. [Letter], 10/171962 Letter from H.R. Haldeman to John Vaughn. 1 pg. [Letter], 10/18/1962 Memo from Loie to Bob Haldeman about RN letter to Mr. and Mrs. Jack Clifford. 2 pgs including attachment. Attached to previous. [Memo], 10/18/1962 Letter from Dorothy Wright, secretary to Haldeman, to R.E. Vandergriff. 1 pg. [Letter], 10/18/1962 Letter from Raymond Vandergriff to H.R. Haldeman. 3 pgs including attachment. Duplicate newsletter not scanned. [Letter], 10/15/1962 Letter from Raymond Vandergriff to H. R. Haldeman. 2 pgs. [Letter], 10/4/1962 Letter from Ray Vandergriff to H.R. Haldeman. 4 pgs including attachment. Duplicate newsletter not scanned. [Letter], 10/1/1962
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Richard M. Nixon's Returned Materials Collection
Returned White House Special Files
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Richard Nixon Presidential Library White House Special Files Collection Folder List Box Number Folder Number Document Date Document Type Document Description 62 5 11/03/1962 Letter Letter from H.R. Haldeman to George Vaughn. 1 pg. 62 5 11/01/1962 Letter Letter from George Vaughn to Harry R. Haldeman. 1 pg. Attached to previous. 62 5 11/01/1962 Letter Letter from H.R. Haldeman to Leonard Valiukas. 1 pg. 62 5 10/31/1962 Letter Letter from Leonard Valiukas to Bob Haldeman. 4 pgs. Including attachments. 62 5 10/27/1962 Letter Letter from Raymond Vandegriff to Richard Nixon. 2 pgs with attached business card. 62 5 10/20/1962 Letter Letter from Raymond Vandegriff to Richard Nixon. 1 pg. Thursday, September 13, 2007 Page 1 of 3 Box Number Folder Number Document Date Document Type Document Description 62 5 10/22/1962 Newsletter The Election Victory Trail Vol. 1 Edition 9. 2 pgs. Duplicates not scanned. 62 5 10/171962 Letter Letter from H.R. Haldeman to Leonard Valiukas. 2 pgs. 62 5 10/18/1962 Letter Letter from H.R. Haldeman to John Vaughn. 1 pg. 62 5 10/18/1962 Memo Memo from Loie to Bob Haldeman about RN letter to Mr. and Mrs. Jack Clifford. 2 pgs including attachment. Attached to previous. 62 5 10/18/1962 Letter Letter from Dorothy Wright, secretary to Haldeman, to R.E. Vandergriff. 1 pg. 62 5 10/15/1962 Letter Letter from Raymond Vandergriff to H.R. Haldeman. 3 pgs including attachment. Duplicate newsletter not scanned. 62 5 10/04/1962 Letter Letter from Raymond Vandergriff to H.R. Haldeman. 2 pgs. Thursday, September 13, 2007 Page 2 of 3 Box Number Folder Number Document Date Document Type Document Description 62 5 10/01/1962 Letter Letter from Ray Vandergriff to H.R. Haldeman. 4 pgs including attachment. Duplicate newsletter not scanned. Thursday, September 13, 2007 Page 3 of 3 November 3, 1962 Dear George: Your letter of November 1st was received, and your personal note to Dick was handed to him. He opened the envelope while I was with him, and told me what you had enclosed. You know without my saying how much this is appreciated, George. Dick was really touched by your thoughtfulness and the generous support you have extended him. He is writing you a personal note, but I could not let this time pass without expressing my own appreciation for all you have done to help us. These last few days are hectic, but we're counting on the big victory November 6th. With warmest regards and best wishes. WIN WITH NIXON! H. R. Haldeman Mr. George W. Vaughan 550 California Street San Francisco 4, California W. STREET SAN November 1, 1962 Mr. Harry R. Haldeman 550 Spoleto Drive Pacific Palisades, California Dear Bob: I am taking the liberty of enclosing a personal note to Dick which, in a small measure, I hope will add to his success in this campaign. I only wish I had the capacity to completely express my friendship for him. Because I consider it personal, would you be kind enough to see that he receives it. Jean joins me in sending our best to you and yours. With all good wishes lang November 1, 1962 Dear Leonard: Thank you for your letter of October 31st. You have done a superb job. It is well recognized, and we have tried to assure you of our appreciation. Your interest and support have been consistent. We count upon it, and are grateful. We have also explained all Dick Nixon has done with the Nationalities, and although it may appear to you this area has been neglected, this has not been the case, and I believe my previous letter outlined the many events fulfilled. With the complexities involved in this all-impertant, hard-hitting campaign, and knowing the sincere effort on the part of everyone in the organization to get maximum coverage for Dick, I am, of course, sorry to learn you feel we have been lacking in cooperation. I can assure you, this was neither our intent nor our desire. We are most grateful for the substantial contribution you and other members of the Nationalities Committee have made to the campaign. WIN WITH MIXON! H. R. Haldeman Mr. Leonard Valiukas 902 West 34th Street Los Angeles 7, California Los Angeles, October 31, 1962 Mr. Bob Haldeman Campaign Manager Nixon for Governor 3908 Wilshire Boulevard Los Angeles 5, California Dear Bob: Enclosed will will find a copy of a folder that was put out by Lithuanian-Americans of Califor- nia and mailed to all Americans of Lithuanian origin or descent throughout the state. Dick also has received some first-rate publicity in all major Lithuanian-American newspapers throughout the country which are widely read by Americans of Lithuanian origin or descent in California. I have urged representatives from all larger nationality groups to do something similar to what was done by the Lithuanian-American group. We have done everything what is possible to assure Dick's victory on November 6th. One and only com- plaint that I have is --- we did not get enough cooperation from the top management of Dick's campaign. It was possible to do a number of other things to get some more votes from the nationality people - but we needed more cooperation and we should have had at least something to say as far as the whole strategy of the campaign was concerned. I firmly believe that Dick will win this time. Good luck to Dick, you and all your associates. With kindest personal regards, Beonard Leonard Valiukas cc: Dan Waters RES. RI 7-0901 WORK RI 7-4488, EXT. 347 ] California Republican Assembly LEONARD VALIUKAS 902 WEST 34TH ST. VICE PRESIDENT LOS ANGELES 7. CALIF. Artéja Rimta Krize! The crisis we face today.. I believe to be the most serious that we have Bükime Budrüs! faced since Korean war..." Prez. Kennedzio Zodzius, kad "vaizdas visur pasaulyje ROBERT S. McNAMARA niurus" neseniai patvirtino gynybos sekretorius Robert S. Secretary of Defense MoNamara: .The crisis we face today... I believe to be the most serious that we have faced since the Korean war". Siuos zodzius patvirtino naujausi ivykiai del Kubos. Arteja rinkimai, kuriy didele reiksmę akcentuoja ir val- dzios ir opozicines partijos vadai. Lietuviškasis samoningu- mas irgi Ipareigoja mus siuose rinkimuose pareiksti savo valia. Ne tik i Vašingtona, bet ir i Sacramenta turime pa- PASIYSKIME ! WASHINGTONA IR SAC- siusti Zmones, kurie pajëgty tvirčiau ginti laisves idēją, kiečiau pasipriesinti rusy imperializmui, geriau suprasti ko- RAMENTO ŽMONES, KURIE TIKRAI munizmo gresmei isstatyto laisvojo pasaulio aspiracijas bei pavergtuju yiltis. Mes, susispiete i Lithuanian-American Committee for a PAJĒGÜS GINTI LAISVĒS IDEJA! Better Government, kviečiame visus Kalifornijos lietuvius aktyviai dalyvauti rinkimuose ir savo balsais pareniti must rekomenduojamus kandidatus. BALSUOKIME UZ LIETUVIU IR LIETUVOS REIKALU GYNËJUS IR TIKRUS As Governor Of California - I Pledge: KOVOTOJUS PRIEŠ KOMUNIZMA! *. To bring to California a State Administration that is worthy of the first and greatest State in the Nation. I will put an end to rule by clique and crony. To bring into State Government a team of the best executives and technicians in the State. And I will get rid of the second-raters and political hacks. VOTE FOR TRUE AND PATRIOTIC LITHUANIAN-AMERICAN COMMITTEE That California will lead the Nation in job opportuni- FOR A BETTER GOVERNMENT ties for all our citizens by creating the best climate for AMERICANS AND VALIANT FIGHTERS new private investment of any State in the Union. 5701 7th Avenue Los Angeles 43, California * An Administration dedicated to attracting new industry AGAINST COMMUNISM! - not one that can be smug when we rank ninth among industrial states in building new plants since 1961. * To replace the spineless, soft-on-crime attitude of the present Administration with strong, vigorous backing of local enforcement officials. Lithuanian-American Committee for a * To wage an all-out campaign to make the streets and highways of California safe for our citizens. Better Government - To cut the costs of State Government SO that we can reduce the tax burden borne by our citizens. To Initiate the most effective State program in the Ale Rúta Arbiene, Vytautas Aleksandrünas, Edmundas * Nation for fighting communism - including education, Arbas. Juozas Andrius, Bernardas Brazdžionis, Bronius on the student and adult levels, on both the dangers of Budriunas, Balys Ciurlionis, Aleksandras Dabšys, Adele communism and the positive alternatives of freedom. Deringiene, Alice Dotts, Bruno Gediminas, Algirdas Gustai- DICK NIXON tis, Julius Jodele, Dr. Juozas Jurkunas, Vincas Kazlauskas, Julius Jodelé (dešineje), ALT-bos Los Angeles Juozas Kojelis, Feliksas Kudirka, Birute Lembergas, Al- fonsas Latvenas, Ann Laurinaitis, Ruta Lee-Kilmonis, Kos- skyriaus pirmininkas, susitinka SU senatoriumi Thomas Kuchel (kaireje), painformuodamas senatoriy, kad ALT-bos Los Angeles skyrius, apjungias visas patriotines lietuviy organizacijas Pietineje Kalifornijoje, remia jo U. S. Senator Thomas H. Kuchel (left) meets Julius Jodele, President of the Lithuanian American Council, Inc., Southern California Division, embracing all patriotic Lithuanian-American organizations in South- ern California. The Lithuanian American Council, Inc., Southern California Division has endorsed Sen. Thomas Please Urge All Your Friends And tas Liaudanskas, Charles Luksis, Vytautas Mažeika, Dr. Neighbours To Vote For These Petras Pamataitis, Vladas Paziura, George Rudelis, Antanas Skirins, Francis Skirmantas, Brone Starkiene, Vytautas kandidaturą. Kuchel for re-election. Candidates! Seštokas, Jonas Uzdavinys, Petras žilinskas. H. 0 0 Lietuviai SU Nixonu. Richard M. Nixon, kandidatas i Kalifornijos Kita Los Angeles lietuviq grupè kalbasi SU Dick Nixon'u. Lietuvaités jteikia dovanele Nixon'vi. Lietuviu su Dick Nixon gubernatoriaus posta, 1962 mety spalio men. 24 d. turejo susitikima Nuotraukoje is kaires desinen: Antanas Mažeika, Kostas Liaudanskas, susitikimo metu lietuvaites jteike buv. JAV-biy viceprezidentui dovanele su Los Angeles miesto lietuviy darbuotojais. Pirmoje nuotraukoje is Juozas Kojelis, Dick Nixon, Aleksandras Dabsys ir Edmundas Arbas. - knyga Lithuania - Land of Heroes. Nuotraukoje is kaires desinen: kaires desinen: Kazys Luksys, Bernardas Brazdžionis, Dick Nixon, Danute Gustaite, Birute Lembergaite, Dick Nixon ir Giedre Gustaite. Julius Jodele, dr. Petras Pamataitis ir Antanas Skirius. o Some of the leading Lithuanian-American functionaries of Los o Former Vice President of the United States Dick Nixon receives o Leading functionaries of the Lithuanian-American community Angeles meet Dick Nixon; from left to right: Antanas Mažeika, Kostas a present from charming young Lithuanian ladies of Los Angeles; in Los Angeles meet Richard M. Nixon; from left to right: Charles Liaudanskas, Juozas Kojelis, Dick Nixon, Aleksandras Dabšys and from left to right: Miss Danute Gustas, Miss Birute Lembergas, Dick Luksis, Bernardas Brazdzionis, Dick Nixon, Julius Jodele, Dr. Petras Edmund Arbas. Photo by L. Kančauskas Nixon and Miss Giedre Gustas. Dick Nixon was presented with a copy Pamataitis and Anthony Skirius. Photo by L Kančauskas of the book, Lithuania - Land of Heroes. Photo by L. Kančauskas UNITED STATES CONGRESS 46th A. D. - Charles E. Chapel MA 47th A. D. - Frank Lanterman MA 17th C. D. - Ted Bruinsma 48th A. D. - David H. Macdougall o Balsuokite už kandidatus, išvardintus 19th C. D. - Robert T. Ramsay 49th A. D. - H. I. Flournoy MA 20th C. D. - H. Allen Smith MC 50th A. D. - Carl Groene šiame lape! 21st C. D. - Herman Smith 51st A. D. - Joe Lopez 22th C. D. - Charles S. Foote Vote For The Candidates Listed in This 52nd A. D. - John R. Corcoran 23rd C. D. - Del Clawson 53rd A. D. - Louis V. Cole Folder! 24th C. D. - G. P. Lipscomb MC 54th A. D. - J. L. E. Collier MA 25th C. D. - John Rousselot MC 55th A. D. - Paul T. Anderson 26th C. D. - Daniel Beltz 56th A. D. - Chet Wolfrum MA 27th C. D. - E. W. Hiestand MC 57th A. D. - Charles J. Conrad MA CANDIDATES - GENERAL ELECTION - 28th C. D. - Alphonzo Bell MC 58th A. D. - Mel Miller NOVEMBER 6, 1962, LOS ANGELES COUNTY 29th C. D - H. L. Richardson 59th A. D. - Peter S. Smith 30th C. D. - G. L. McDonough MC State Offices 60th A. D. - Robert S. Stevens 31st C. D. - Gordon Hahn 61st A. D. - Edward B. Davenport GOVERNOR - RICHARD M. NIXON 32nd C. D. - Craig Hosmer MC 62nd A. D. - Donald c. Kahl LIEUTENANT GOVERNOR - GEORGE CHRISTOPHER 63rd A. D. - Don Tarbell SECRETARY OF STATE - FRANK M. JORDAN MC - Member of Congress 64th A. D. - Lou Cusanovich MA CONTROLLER - BRUCE V. REAGAN 65th A. D. - Robert Wright TREASURER JOHN M. BUSTERUD 66th A. D. - Robert E. Mitchell ATTORNEY GENERAL - ToM COAKLEY CALIFORNIA STATE ASSEMBLY BOARD OF EQUALIZATION JAMES L. FLOURNOY 67th A. D. - Alfred H. Thorsen UNITES STATES SENATOR - - THOMAS H. KUCHEL 38th A. D. - Beatrice Gale 68th A. D. - Richard M. Wonder STATE SENATOR - PATRICK D. McGEE 39th A. D. - George Deukmejian SUPERINTENDENT OF PUBLIC INSTRUCTION - 40th A. D. - Joe Y. Jimenez MA - Member of the Assembly MAX RAFFERTY 41st A. D. - John Mathews 42nd A. D. - Paul Burkhart County Offices 43rd A. D. - H. J. Thelin MA Patark visiems savo pažistamiems ir 44th A. D. - Wilbur R. Richardson ASSESSOR - PHILIP E. WATSON 45th A. D. - Lloyd S. Pedersen kaimynams balsuoti už šiuos kandidatus! copy to: mr. H. R. Haldeman, Initon Campaign manager The highn Rally in Vallejo Oct26th was the largest political rally ever held in Holans County. Over 1100 Republicansand 709 Jackson St, Fairfield Democrats turned out to welcome Dide and cheer October him 27, on 1962 to victory as our next The Honorable Richard M. Nixon, Republican Nominee for Governor, 901 N. Bundy Drive, We feelthat governor! we have the Los Angeles 49, California and the spirit to overcome Organization the candidate, Honorable Sir: deficiency on nov 6th! our to registration I bring to your attention a matter of considerable concern to California's 275,000 boat owners, to boating supply houses, recreational resorts, and to our Best million boating enthusiasts in California. It is the proposal to single out Wishes, assessed and taxed by the counties of the State of California. This special tax Ray boats for special tax treatment, out of the mass of personal property, which is treatment is to take the form of a two percent ad valorem, in lieu property tax, imposed and collected by the State of California, similar to the present motor vehicle in lieu tax. The proposed in lieu tax on boats is currently before the State Senate Revenue and Taxation Fact-Finding Committee, chaired by Senator Charles Brown, 28th Senatorial District, and, a recommendation for passage is to be made to the 1963 Session of the California State Legislature. This special tax on boats is being vigorously opposed by all boat owners, resort operators, and recreational groups, not only because they consider it unfair and inequitable tax treatment, but, also, due to its probable unconsti- tutional nature in seeking to prohibit the operation of boats upon the navigable waters of California - an area of national, not state, jurisdiction. Currently, boats are subject to taxation within the various counties in which they are located, as are all items of personal property. It is the pre- vailing view among California's boat owners that an analogous situation does not exist, in the reals of taxation and regulation, between a boat using a public water course and a motor vehicle using the state-owned highways or county roads. A public statement on this proposed in lieu property tax on boats from the Republican gubernatorial candidate would definitely case the minds of California's 275,000 boat-owning citizens. We all know that boating has become a major California enterprise, one which provides income, employment and pleasure to millions of Californians. If such a special tax would inhibit the growth of this industry, is inequitable, or runs counter to a public position and pledge of no tax increases in 1963, 1964, and 1965, a statement in opposition to this type of special tax on boats would seem justifiable by the Republican nominee for Governor of California. I look forward to being of service to the new Republican Governor and his administration, as they assume the awesome responsibility of guiding the public affairs and state-destiny of the people of California, come January 1963. Yours respectfully, Raymond E. Vandegripp HARRISON 5.8145 SOLANO COUNTY TAXPAYERS ASSOCIATION RAYMOND VANDEGRIFF 709 JACKSON STREET EXECUTIVE MANAGER FAIRFIELD. CALIFORNIA FOR INFORMATION PURPOSES: TO MR. H. R. HALDEMAN, NIXON CAMPAIGN MANAGER 709 Jackson Street Fairfield, California October 20, 1962 The Honorable Michard M. Nixon, Fepublican Nominee for Governor, 901 N. Bundy Drive, Los Angeles 49, California Honorable Sir: It is obvious to me, judging from their daily activities, that most all of the department and agency executives in the Brown Administration are engaged in full time campaigning for the reelection of Governor Brown on a scale unprecedented in California political history. It seems as though the entire State Administration in Sacramento has been mobilised into a vast reelection campaign machine for the incumbent governor! This means that public offices, civil service manpower, public materials and equipment are all being used in a coordinated effort to return 'Pat' Brown to office, as our Chief Executive. Gubernatorial appointees, such as Hale Champion, Director of Finance, William Warne, Resources Administrator, Robert Bradford, Highways and Transportation Administrator, and many more, are obvious- ly neglecting their assigned public duties and responsibilities to campaign for the incumbent governor. They are using their civil service staffs to bolster the sagging Brown election effort, to such an extent, as to hamper important state planning for the next fiscal year and day-to-day program operations. The Department of Finance, in particular, has failed to meet its admin- istrative dead-lines on the budget calendar and has been doing a sloppy job in preparing the necessary support data for proper budget allocations in fiscal 1963-1964. All of this is due to the full-time electioneering of Champion and his deputies within the Department of Finance. I hope you, as Republican nominee for Governor, will take the opportunity to point out to the people of California this unprecedented, partisan campaign activity by the appointees of Governor Brown, and, how this full-time campaigning by important state executives and administrators has seriously hurt the proper administration of California public service programs. Please comment also on the amazing similarity in writing of the news statements supporting Governor Brown, supposedly written by a variety of State department directors, as individuals. Many of these news releases criticizing various aspects of the Republican Program for California have been prepared on state-owned duplicating equipment, using state purchased paper and ink, and are delivered to news media offices by state employees, during regular working hours! Respectfully submitted, haymond E. Vandegriff Trandequiff Enclosure: Vict Trail Edition #9, Brown Fiscal Record The Election Victory Trail A DIGEST OF CAMPAIGN ISSUES, ARGUMENTS, AND SUGGESTED POSITIONS FOR REPUBLICAN CANDIDATES FOR PUBLIC OFFICES BY RAYMOND E. VANDEGRIFF Public Finance Analyst Vol. 1, Edition 9 709 Jackson Street, Fairfield October 22, 1962 CALIFORNIA FISCAL FACTS ILLUSTRATING THE SORRY PUBLIC FINANCE RECORD OF THE BROWN ADMINIS- TRATION - A STORY OF UNPRECEDENTED PUBLIC SPENDING AND TAXING DECEPTIVELY LABELED! TO ALL CALIFORNIA CITIZENS: DO YOU KNOW THE 'PAT' BROWN RECORD ON PUBLIC SPENDING AND TAXING? Edmund G. Brown, the incumbent Governor of the State of California, has been an undis- puted and unchallenged success in only two areas - Public Spending and Taxing! 'Pat' Brown is the greatest spender and taxer of the people to ever sit in the governor's chair in California State history. History will record that the Brown Administration was a complete failure in controlling the costs of State government; having failed to utilize the available fiscal machinery within the Department of Finance to effectively monitor, determine, and control State government expenditures, Governor Brown allowed government costs to increase an unheard of fifty percent in only four years' time! How is that for a"fiscally respon- sible" governor? The second important financial fact which the people will remember about the incumbent governor is that in 1959 he insisted in imposing the largest tax increase upon the people of California, their commerce, their industries, their farms and ranches, their personal incomes, in State history. This Brown tax rise of 1959 has succeeded in taking over a billion dollars from the pockets and payrolls of Californians in just four years. Yet through the public waste, excessive spending, and inefficient management, the Brown Admin- istration has already exhausted these additional tax resources, from the greatest tax boost in California history, and stands ready to raise taxes again, in fiscal 1963-1964, so as to maintain its present massive rate of public spending, as California is changed by design from an Opportunity State to a Welfare State, which is Governor Brown's admitted goal! California State financial records show that in the period from 1954 1958, which was one of rapid growth in California, State government costs rose by $580,273,126, while under 'Pat' Brown, in the period 1958 - 1962, government costs increased by one billion dollars in run away fashion. The reports of the State Controller reveal how Governor Brown, when he took office in 1959, inherited a State expenditure program of 1.9 billions per year, and that our State budgets had been working on their second billion, dating back to fiscal 1950. However, under Governor Brown's spendthrift policies in the care of public money and because of his wasteful attempts to turn California into a model Welfare State, the State budget has passed through another Billion in State expenditures within the short period of four years' time, the period of one State Administration, that of 'Pat' Brown, California's Number One Public Spender, Our Billion Dollar Governor!! This again is the Brown financial record! CITIZENS OF CALIFORNIA, DO YOU KNOW: that in spite of Governor Brown's denial that he plans to sponsor any increased taxes for Californians, in 1963, his Department of Finance has been conducting extensive studies on what State taxes could be increased, to yield what amounts of extra revenues, and with the least political reaction from the people against Governor 'Pat'. Do you know, fellow citizens, that if Governor Brown is reelected on Novem- ber 6, 1962, he will undoubtedly sign any and all tax increase measures which pass the State Legislature, whether introduced as a Governor sponsored bill or not. We can say this with certainty and conviction because the record of Governor Brown shows conclusively that he favors maximum public spending levels and debt financing to feed the insatiable demands of the Welfare State for tax dollars! CITIZENS OF CALIFORNIA, DO YOU REALIZE: that while Governor Brown makes a big show of and pretense at being concerned about maintaining fiscal responsibility and a balanced budget in California, this concern is unreal and for political purposes only. The supposed concern of the Brown Administration for fiscal responsibility is designed to quiet public fears and suspicions about the tax-spend-tax, welfare-state program of Governor 'Pat' Brown and is not borne out by the spending, taxing and budget reports of the Brown Administration, nor by its legislative record, nor by its ineffective cost control program. How can Governor Brown really be concerned about fiscal responsibility in State govern- ment when he makes no real effort to control the unit and per capita costs of California State government. The gross failure of the Brown Administration to maintain adequate cost control over State governmental operations cannot be laid wholly to the inept and indecisive leadership of our incumbent governor, but stems in equal measure from personal welfare state spending and taxing policies. It is questionable, whether people who espouse Welfare Statism, as does Governor Brown, can ever really believe in the theory, let alone the practice, of fiscal responsibility in government. Welfare State spenders, like our incumbent governor, may of course give lip service to this fiscal ideal, and attempt to collect whatever political advantage they can obtain from a demogogic repetition of the term, but the people are rarely fooled for long by the deceptive labels placed by vote hungry politicians on their political programs! Page #2, Vol 1., Edition 9, The Sorry Public Finance Record of Governor 'Pat' Brown - The People of California know that to be fiscally responsible is not to allow run-away government costs, nor to spend public moneys just because they are available, nor to attempt to provide nurse maid care and cradle to the grave security, at public expense, for almost one third of our population at the expense of the other two thirds, and at staggering costs to California business, industry, agriculture, property values, and investment-job prospects! THE BROWN BALANCED BUDGET GAME: The incumbent State Governor, Edmund G. Brown, makes an equal pretense at having given California four balanced budgets. However, as our Republican nominee for Governor, Richard M. Nixon, has pointed out, the Government of California is prevented by law from engaging in deficit financing, so 'Pat' Brown has no choice in the matter If it were not prohibited by the California State Constitution, Governor Brown would probably willingly spend this State down the bankruptcy trail; for Brown undoubtedly agrees with his New Frontier mentor and leader, John F. Kennedy, that balanced budgets are really unnecessary to fiscal stability and their importance is mythical, a matter of public misconception which must be changed by New Frontier educational programs and leadership. But query - Are the Brown budgets really balanced in the real sense or do they reflex mere accounting or paper balances which are useful fictions and public illusions? The State budgets, under Governor Brown, are not balanced from the stand-point of income equalling outgo, which is the normal public and accounting understanding of a balanced budget. The Brown Administration could have a balanced budget, instead of just its illusion or appearance, if it had the will and desire to pare state expeditures to match annual revenues; however, such an action requires leadership, courage, a regard for fiscal responsibility, and administrative talent - all in short supply within the Brown Adminis- tration. It is much easier to spend public money than to save it ; it is also fairly easy to use a variety of accounting and financial reporting devices to maintain a "paper" or ficti- cious balance in the State budgetary accounts which can cover actual cash deficits in operating funds, through inter-fund borrowings, the use of special reserves, and that of bond funds for capital outlay financing within the current operating budget of the State. These accounting and reporting devices have been freely used by the Brown State bookkeepers to create a balance in the State Budgets. In similar fashion, much of the claimed, so-called budget savings said to be realized in the Brown years have been deliberately caused by practicing the art of over budgeting for many State Departments. The Department of Finance through its use and control of budget allocations can provide for built in savings, which can later be "realized" supposedly through "careful and prudent" managements of State operations, as part of a gubernatorial program of fiscal economy and responsibility, perhaps! Likewise, the inclusion by design and regular practice of many new and vacant State positions within the operating budgets of the various departments, which are not to be filled, is another device useful in authenticating a fictitious claim to fiscal responsi- bility, The public must be wary and decerning lest they be shown the illusion but not the substance of fiscal responsibility, and a mere balancing of accounting entries in place of a real balance of income and outgo. In only one of the Brown years has California had such a real balanced budget, one where income equalled or exceeded outgo. This was in fiscal 1960-1961, after the Brown dictated $250 million tax increase of 1959 produced a $100 million surplus in the State Treasury. Use of special reserve funds, loans and bond fund borrowings to create a fictitious balance in the budget of the State of California is a practice which should not be countenanced by the People of California either from their Governor or State Controller. State governments which are managed with an eye to fiscal. responsibility and financial stability need have no use of accounting devices to hide the fact that their spending level is much too high for their income level. The Republican nominee for Governor, Richard M. Nixon, is pledged to restore true fiscal responsibility and real balanced budgets to the State of California. He is committed to a program of ending the four year Brown tax and spending spree, which has put a damper on California's industrial growth and weakened our investment and job creating climate. Dick Nixon has the demonstrated leadership ability, the executive talent, and the personal and political courage to honor this pledge to bring efficient management, cost control, and financial stability to the public service programs of the State of California. I urge his election as a superlative choice as the next Governor of California! Ray Vandegriff October 17, 1962 Dear Leonard: First, let me say that as I am sure you know, Dick has been spending a great deal of time with the various nationality groups of all sizes and types. In just the last few weeks, he met with the Japanese group, the Chinese group and the Mexican group. Today he attended a reception for 5,000 nationality members in San Francisco. Some months ago he spoke at the Polish Independence Day Celebration in San Francisco. We have featured various important nationality leaders on the Telethons, and of course Dick started out his campaign with a meeting with LACRANC. As I am sure you realize, there has never been any intention to ignore the nationality groups; on the contrary, we are very much aware of this important segment of the voting public. We have, however, devoted all of our efforts to getting Dick maximum exposure to large numbers of each of the nationality groups, rather than setting up small meeting with one or two leaders. This same policy has been followed in all aspects of the campaign. I am sure you will agree it is a wise one. I certainly think your suggestion of getting some pictures with various nationality leaders for 2 publication in their papers would be very worthwhile, and I know the Schedule Office is trying to work this out for you - possibly this Saturday. As to your suggestion that Dick join the Honorary Committee of the Americans for Congressional Action to Free the Baltic States, I am sorry to say that his firm policy regarding all such requests for membership on committees during campaigns is to decline. So many requests of this nature are received that it is impossible to deviate from the policy in fairness to all concerned. You know that we greatly appreciate your interest and efforts. I am sorry that at times it seems to appear to you that we do not, but certainly hope you realize the necessity for trying to cover all areas of the state and all segments of the population in a very short and intensive period. Sincerely yours, H. R. Haldeman Mr. Leonard Valiukas 902 West 34th Street Los Angeles 7, California October 18, 1962 Dear John: This will acknowledge your note of October 17th. I agree . the Cliffords certainly deserve that "pat on the back", and we will do the needful. A letter from Dick will reach them. Thanks for bringing this to our attention, and our thanks to your Mr. Behdjou. Best regards. WIN WITH NIXON! H. R. Haldeman Mr. John V. Vaughn President Dartell Laboratories, Inc. 1226 South Flower Street Los Angeles 15, California Loie 10-18 Bob Haldeman RN letter to Mr. and Mrs. Jack Clifford Attached is suggested draft, together with copies of letters from John Vaughn and Mr. Behdjou. Copy of the letter should go to Mr. Behdjou, as he has requested. Many thanks. draft Mr. and Mrs. Jack Clifford 12707 Ocaso Avenue La Mirada, California Dear Mr. and Mrs. Clifford: The assistance which you are offering the organization in your area, your substantial support, and the enthusiasm with which you are approaching the job to be done, all mean a great deal to me personally and to the campaign organization generally. It is heartening to learn of the activities which you have spearheaded and to which you have unselfishly devoted your time and energies. It is with this type of help that victory will be assured, and I did want you to know that I am aware of your generous support and all you are doing to help the campaign effort. My personal thanks and warmest regards. October 18, 1962 Dear Mr. Vandegriff: Mr. Haldeman is now required to be away from the office much of the time, traveling with the Candidate. In his absence I wanted to acknowledge your most recent letter of October 15th and the copies of your Campaign Digest #8. We are, of course, using Radio and TV Spots, but I know Mr. Haldeman will appreciate having your comments and suggestions in this connection. He appreciates too all you are doing to help in the campaign effort. WIN WITH NIXON! (Mrs.) Dorothy M. Wright Secretary to Mr. Haldeman Mr. R. E. Vandegriff 709 Jackson Street Fairfield, California October 15, 1962 Mr. H. R. Haldeman, Nixon For Governor, Campaign Director, 3908 Wilshire Blvd., Los Angeles, California Dear Mr. Haldeman: I hope the Nixon For Governor campaign intends to make liberal use of radio spot announcements and television shorts, in the closing days of this gubernatorial campaign, as our finances permit. I am a great believer in the efficacy of short radio announcements to win the last minute, undecided voter, just before election day. Think of the thousands of housewives who listen to radio all day. Here we have a nominee for governor who has a nationally-known, respected public name, a pleasing baritone voice, coupled with a positive message for the voters of Calif- ornia. We can put these basic ingredients together in a political potion which will decisively win for the Republican cause on November 6th! Already I have observed a Brown For Governor Television short, the time of an average commercial. It was rather effective and I want our Republican nominee to be competitive in this medium, as well. I am sure the opposition will make full use of radio and I urge that we do likewise. Dick has the voice, let's hear it on radio by means of transcribed two or three minute messages! Radio and television should be used especially in bad press areas! Yours respectfully, Raymond E. Vandegriff Postscript: I enclose my latest campaign issue digest, Edition #8 The Election Vistory Trail A DIGEST OF CAMPAIGN ISSUES, ARGUMENTS, AND SUGGESTED POSITIONS FOR REPUBLICAN CANDIDATES FOR PUBLIC OFFICES BY RAYMOND E. VANDEGRIFF Public Finance Analyst Vol. 1, Edition 8 709 Jackson Street, Fairfield, Calif. October 14, 162 PART I - BIG GOVERNMENT IN CALIFORNIA UNDER 'PAT' BROWN - AN ILLUSTRATION OF ITS GROWING IMPIGNMENT ON NORMAL BUSINESS RELATIONS, ALONG WITH A PERSISTENT TENDENCY AT INTERFERENCE WITH THE PRIVATE LIVES OF ALL CALIFORNIANS. Big Government came of age with the election of Governor Edmund G. Brown in 1958. The incumbent governor is not only an advocate of the welfare-state, but he is an ardent believer in Big Government for California and in the proposition that all social and human problems should be, and are susceptible of solution in the best manner by governmental action at public expense. No where is this more clearly seen than in the establishment in 1959 of a public Office of Consumer Counsel by Governor Brown soon after he assumed the reins of State government. This new government bureau was created by 'Pat' Brown with great publicity as a unique public welfare service, a corner-stone in the Brown Welfare State Program, which is labeled "Responsible Liberalism" by his press agents. The People of California, in this crucial election year, should closely examine the activities and shift the final product, the results, of this key Brown experiment in welfare- state paternalism, the Office of the Consumer Counsel, after some three years of its tax supported existence. Implicit within any such analysis of program and results should be the fundamental questions and answers as to whether the State of California has a direct and important responsibility and duty to give public counsel to the mass consumer markets at all. Second, whether such a direct responsibility, assuming it is one within the proper role cf the State government, can be effectively implemented by the addition of one more governmental agency to the great bureaucratic complex and confused disarray of over 300 departments, bureaus, commissions, and boards, which is our State government today. Other questions necessarily to be answered are if consumer counsel can be dispensed to the public in a prudent and impartial manner, which is fair to all segments of our competitive, free enterprise market, and without the presence of questionable ideological content and indoc- trination. Another question bearing on the worth of this Brown experiment in welfarism is whether the end product of this public consumer counsel agency, namely consumer information, is not now available through privately financed news media, such as newspapers, consumers magazines, the reports of public testing laboratories, their private counterparts, publica- tions of the Federal Government, trade and producers' associations, or through the activities of the multiplicity of non-tax, consumer counsels provided by every important public utility, milling and food processing company in the land. To strike at the heart of this question of the worth and continuance of this, so-called, public welfare service, the Consumer Counsel, we. might well doubt that this is a proper, or important role of the State of California; we should also deny the feasibility of any public financed "advisory" service to the more than seventeen million consumers of this State in a multitude of varying and complex consumer markets. The end product of this Office of Consumer Counsel can be little more than a series of prepared press releases and reports, which the agency attempts to disseminate to the public through the free and gratuitous services of privately owned news media, hoping for their publication or broad- cast. If placed in true prospective, the Office of Consumer Counsel, like many of Governor Brown's public welfare and governmental experiments, is little more than a tax supported public relations effort, run by overly paid public press agents, as window dressing for the Brown welfare show. The final product of this agency is nothing more than a particular line of highly selected consumer information and advice, which the Brown Administration or its patronage appointees wish to promulgate to the California consumer market for political or non-political purposes. The consume news releases must be limited because private news media will only publish so much copy from any one governmental agency, due to obvious space and time limitations. If in preparing these consumer news releases, the Office of Consumer Counsel makes the usual errors of bureaucrats in failing to determine what is really useful consumer material for dissemination to the public, and the best manner to obtain public communication, these errors can render the whole costly "service" of little public consequence. However, as has been previously intimated, the mere publication of consumer information and facts in an undigested form is of small, admitted value, for most of this information is available to the public without cost, and without the so-called services of the Consumer Counsel. The real goal of this welfare-state agency is to give public instruction and advice to consumers, organize a pressure and clientele group for itself and the present administration, and bring the heavy hand of bureaucratic control and regulation into the free, competitive consumer markets of California, on the specious grounds of preventing consumer exploitation and marketing duplicity by control of marketing packaging, labeling, advertising, and credit financing. Such a system of marketing control in the name of the consumer, at the hands of the State, is completely Un-American, will mean the end to our free, competitive markets in California, but is a logical extension of the theory of a Public Consumer Counsel and its supporting welfare-state philosophv of government! Page #2, Big Government in California Under 'Pat' Brown, continued - PART I THE OFFICE OF CONSUMER COUNSEL SHOULD BE ABOLISHED IN 1963 ALONG WITH MANY OTHER MINOR STATE OFFICES, BOARDS AND COMMISSIONS WHICH PERFORM NO DEFINABLE PUBLIC SERVICE, YET AT GREAT COST TO THE TAXPAYERS OF CALIFORNIA. In urging the demise of the Office of Consumer Counsel in 1963, Republicans should stress these facts: (1) the performance record of this costly agency indicates that its so called service function is really illusory and in fact, the activity of the agency, its output of publications etc., shows conclusively that it is but an expensive duplication of well established sources of more authoritative consumer information; (2) an examination of the consumer message which this tax supported office has tried to convey to the mass consumer markets of California, shows it to be but a repetition of matters of common knowledge, styled in the language of a paternalistic bureaucracy; (3) all evidences indicate that whatever the consumer message, public instructions on marketing, or other consumer information which this Brown agency has sought to communicate to the public over the last three years, the communication effort has largely failed, not only because the consumer releases were stale and second hand information, but also because of poor public relations techniques employed in the attempted disseminations. Therefore, Republican candidates can properly conclude that the net accomplishments and results of this 'Pat' Brown experiment in welfare-state politics, the Office of Con- sumer Counsel, are nil on the affirmative and productive side of the ledger. On the cost side, the Brown Administration has obviously wasted in this ill-conceived public relations experiment in welfarism some $300,000 in public money; in addition, considerable ill-will and antagonism has been created within retail trade channels, trade associations, and producer-distributor organizations against the State government because of the actions of this Office of Consumer Counsel. A PROPER SOLUTION - The problem of the unwise buying habits of the individual consumer, if considered a public problem suitable for governmental action, is certainly a relative one; it waxes and wanes, depending upon the subjective judgement of the particular observer. There is no question that buymanship and consumer knowledge can be improved, so that the average con- sumer receives more product and service for his trade dollar. However, most other import- ant areas of the lives of individual Californians are similarly susceptible of improvement- one's marital relations, his program and methods of child rearing, his performance of the job, his use of leisure time, his health and food habits- to name a few. But query - Are these areas of primary State responsibility and governmental operations? I certainly hope not! The consumer problem, if one exists, is a matter for education and instruction of a highly personal and individualistic nature. The place for such consumer education is in the curriculum of the public schools, or through adult education courses, and not through an ineffective consumer press bureau, attempting to reach a mass consumer market through news media releases of second-hand information, and biased instruction, which largely duplicates the work of established and legitimate sources of consumer information and assistance. Poor marketing practices, like poor family budgeting, and marital relations, have been common human failings for ages without number. Their causes are not alone imputable to individual ignorance and a want of basic education. To suggest that failings of this sort can be corrected either through the services of a government press bureau or through government regulations is to ape the totalitarian system-yet is not this the ultimate promise of the welfare state! PART. II - THE ALARMING RISE IN STATE DEBT AND THE RATE OF PUBLIC BORROWING UNDER GOVERNOR 'PAT' BROWN! The State of California has become a bond underwriter's and debtor's paradise under Governor "Pat! Brown and his free spending, debt financing administration. Since Brown took over in 1959, the State debt has more than doubled. The authorized California State debt has now exceeded the six billion dollar mark, even though Californians are still paying for the First Highway Bonds of 1909 and for our original State office buildings, together with the Tenth Olympiad Bonds which built the Los Angeles Coliseum. Debt service cost the people of California some $55,600,000 in fiscal 1960-1961, while in fiscal 1961-1962, the cost of servicing the mounting State debt jumped to $64,120,000. Governor Brown has evidenced no great concern about our rising State debt total, nor about the astronomical amount of public borrowing which his administration has approved. He is apparently only concerned about maintaining maximum government spending 'outlays; and, when it becomes impolitic to tax the people more to pay for the rising level of government spending, as in election years, the incumbent governor is eager to sponsor multiple bond issues and to promote their public approval with tax money by government press agents. It is fortunate for California that many of the Brown approved bond issues remain unissued, SO that a new administration will have an opportunity to make an objective study of the projects they are intended to finance, as to both engineering and financial feasi- bility, prior to any public sale and addition to the outstanding debt of the State of Calif- ornia. A new State Governor and administration will be able to restore California to its historic modified, pay-as.you-go program of financing State construction projects from current revenues instead of through bond financing and public borrowing. In pre-Brown days State bond issues were a rarity, now we have not one but four separate issues presented in election years. The people of California should be gravely concerned about the rising State debt for California is well on its way to become the State with the highest per capita debt in the nation. As the debt total mounts so will the fixed costs of State government! A new Republican governor will chase the debt mongers out of Sacramento & end govt. by borrowing 709 Jackson Street, Fairfield October 4, 1962 Mr. H. R. Haldeman, Campaign Manager, Nixon For Governor, 3908 Wilshire Blvd., Los Angeles 5, California Dear Mr. Haldeman: It is apparent to me, at this stage of the present gubernatorial campaign, that the two winning campaign techniques for Dick Nixon will be: (1) the telethons, and (2) face to face, informal meetings with as many California voters as possible in their places of employment, in shopping centers, picnics, conventions, etc. Too much reliance cannot be placed on press coverage and endorsements by the metropolitan dailies of California, judging from the very biased, distorted, anti- Nixon news copy, prepared by the working press, which supposedly described the Nixon-Brown encounter in San Francisco on October first. To read the press re- porting of this confrontation, one would have thought that Pat Brown won with ease and that the major point of discussion was the Hughes loan. I have been told that a majority of the working press (reportorial staff) at the great news bureaus, and even on pro-Republican newspapers, are Democrats, or anti-Nixon, for some reason, but, heretofore, I had not believed it. Mr. Haldeman, it seems from my vantage point that very few pro-Nixon news stories (either based upon your news releases or the reported descriptions of Mr. Nixon's campaign travels and statements) are appearing in the dailies that I read here in Sacramento and Solano Counties. I hope this is not the case with the San Francisco-Oakland Bay Area, the many California weeklies, and, of course, the Los Angeles dailies. The telethons, in my estimation, will be most important to the success of our Republican nominee, in overcoming either biased press coverage or lack of press coverage. Dick Nixon does these well and I urge that they be planned closely for maximum, sustained viewer interest and for dramatic effect. In this regard, has the possibility and appropriateness of the "vacant chair" technique been considered for the Nixon telethons. By this I mean, having a vacant chair and desk, with name plate, "Governor Pat Brown", shown to the television audience from time to time, with our Republican nominee explaining that they are reserved for the use of Mr. Brown, who has been invited to be present, free of charge, on this program with me, to answer public questions on the conduct of his office, as a public service. I think such a staging, if well prepared and conducted with proper dignity and sincerity, would be most beneficial. It would help keep before the public mind the fact that Dick Nixon stands ready to debate the issues and problems of California, face-to-face with the incumbent, for all the people of California to witness, but that Mr. Brown is unwilling to do so, either with or without notes to help him. We must continue to press this issue of lack of political courage on the part of the incumbent governor, as well as that of indecisive leadership. Page 2 On another matter, the Democrat incumbent seems to be trying to build up an effective counter-challenge to ours of promising a cut in State public expenditures if a Nixon administration is installed in Sacramento. This Brown counter-challenge is directed at where the planned cuts are to be made. Our side should be working on a definite meeting of this effort to force our nominee on the defensive with respect to this expenditure issue. I plan to start work soon on this matter and will present the results of my analysis and research to the nominee and his campaign managers. Yours respectfully, Raymond E. Vandegrift Han 1.4.1 709 Jackson Street Farrheld, California Sep October, mr. H.R. Holdeman nigon For bovernor Campaign manager 3908 Wilshire Blvd. Losangeles, California Dear Tnr. Haldeman: Enclosed you will find my latest digest on campaign issues affecting the governatorial base. I certainly hope they have been of value to the Injurn For Governos campaig The tempo of the campaign now teems to be shifting into high gear with the Republican nominee running neck and heak with the Democrat insurant and approximately ten per cent of the voters still undesided Mr. Nixon scoreda major triumph over bovernor Brown in the radio-tetevision joint appearance of today. It will lend chedence to the nixon side on why the heralded debates folded - Brown is clearly nomatch for Dick highn and shows up as the second rater he is when the two are open to public comparison in a face to face encounter. Please continue the debate challenge to the eve of the election! Why not musts Brown to appear on the television broadcasts and even offer to send a car to pick him up ? The California voter resents a scared politician who refuses to face aig opponent even if his public speaking talents are inferior 2 you might be interested in knowing that Bob Powers that a reliable telephone poll of Democrats in the Courtland of the Vacaville, hut Tree Powers, told me only yesterday (fachamento) area revealed that twenty -five per sent wereplanning to vote for Tripon. Bale says this is exactly what we need in this area because of the registration diversity. However, this is good news for Sacramento County which has always been a weak spot for the Republicans, because of weak party organizations and the strong influence of the The Clatohy Publications. We are opening a Fairfield nixon Headquarterson the main street (best location in town) of this 20,000 population city. already the Infon activity is picking up even though we don't officially open until tonight at 8 PM. I see where the California Poll says Frigon is weakest in northern and Central California, while running well in southern California Can this weakness be corrested prior to november 6 th? d hope so. We are know the size of the Los angeles vote, but the San Francisco Oakland and fashamento areas have at least One half the for angeles County vote and must not be negleated! Cordially yours, Ray Bendequift A DIGEST OF CAMPAIGN ARGUMENTS, AND SUGGESTED The Election Victory Trail POSITIONS FOR REPUBLICAN CANDIDATES FOR PUBLIC OFFICES BY RAYMOND E. VANDEGRIFF Public Finance Analyst Vol. 1, Edition 6 709 Jackson Street, Fairfield, Calif. Sept 29, 1962 THE STORY BEHIND THE DETERIORATION OF OUR BUSINESS CLIMATE IN CALIFORNIA UNDER PAT BROWN! Under Governor Pat Brown industrial growth in California has been confined almost exclusively to government subsidized, and created, defense industries, such as aero- space, missile, and allies, with a sharp decline in the rate of expansion of California's permanent, non-government, industrial plant. While Californians welcome these massive Federal Government expenditures which have made our Golden State the aero-space center for the nation, business and political leaders, economists and thoughtful citizens alike are rightly concerned with the growing one-sided development of the California industrial base, with its increased lack of diversification, with its over-dependence on Federal defense spending, and with the awesome economic and employment conversion problems in store for California and its citizens, when the Congress inevitably tightens the Federal purse strings, orders a reallocation of missile research and production contracts, or there is a general slow down, phase out of the various aero-space and missile programs. Today, California is doing 41% of the rocket research, development, and testing for the Department of Defense. In addition, our aero-space industry has been awarded 23.9% of the prime, defense contracts for the production of missiles and rocket weaponry. It appears that upwards of twenty-five percent of our work force is employed in the direct execution of Federal government defense contracts, This is fine for now, but what of the future! Since the aero-space, missile, and allied industries are the products of government enterprise, and but a small portion of it can be considered as a permanent part of the industrial plant of California, the leaders of our state, in business, labor and government, hould commence a united effort to correct this growing imbalance in our industrial base by stimulating the expansion and/or migration of permanent, diversified, private enterprise within and into California. This is absolutely essential if our State is to permanently support a population, the size of New York State's, at the traditional California standard of living. If we think of the job opportunities alone that must be provided for a population of some 18 millions in California by 1963, increasing at the rate of 600,000 per year, we must put it down that one of the primary responsibilities of our California State Government and its administration is the creation of a Sound Business Environment, one which facilitates the economic development of the Golden State by private enterprise. HOW CALIFORNIA HAS LOST ITS ONCE FAVORABLE INVESTMENT CLIMATE FOR PRIVATE ENTERPRISE? Just as the President, the policies of the national administration, and the tenor of the Congress plays so large a part in determining the national business atmosphere, so do their equivalents at the State level of government. There is no question but that the taxing, spending and administrative policies of the Governor of California, as implemented or distorted by the State Legislature, largely establishes the prevailing climate for business activity and enterprise in California. Recognizing the great influence which the state administration exercises over the business investment and expansion climate in Calif- ornia, it is appropriate in an election year to examine the record of the Brown administra- tion on this vital state responsibility. We know that Governor Brown inherited a state reputation for an unmatched climate for business expansion, new plant location, and private capital investment in 1958 - the question before the people of California is "What did Governor Brown do to California's Nationally Acclaimed Business Investment Reputation?" Reviewing the past four years, it is apparent that the Golden State has experienced a declining rated of industrial expansion in non-government, non-subsidized, private industry. Our lagging industrialization is attributable to a number of factors but all generally describable under the heading - a worsening or deteriorating Climate for private business in California. Although incumbent Governor Pat Brown has denied publicly the Republican charges that California is Becoming a "bone yard for business" or that any actions of his administration, during the past four years, have caused a slow down in the industrial growth of California or in our state's attraction of private investments for capital expansion, the facts seem to refute the apologetic defense of the governor and belie his assertion that "California has a good business climate". Aero-space expansion between 1959-1962, due to Federal government defense contracts, will not be accepted by the people of California that our business climate is good, or even acceptable, in this state. They will not "buy" the Brown subterfuge on this business climate issue of the present gubernatorial campaign. In the nature of things, a public welfare oriented, "hand out" of public funds, state administration, such as that of Governor Pat Brown, cannot possibly give this state a good business climate. The people of California have enough business sense to know, if Brown does not, that a "tax-spend-tax more" philosophy of government repels private investment and will in time turn this state into an industrial bone yard and a financial wreck! The State of California obviously does not have a good business climate for private enterprise migration or expansion, when it calls upon our businesses and industries to pay the highest state taxes per investment and per profit dollar in the nation, has the Vol. 1, Edition 6, The Election Victory Trail, Business Climate (continued) greatest number of costly State reports to prepare and file on business activities, the largest number of State bureaucrats to contend with, more State regulatory agencies to satisfy, and over 300,000 people drawing unemployment or idleness benefits out of a State trust fund, supported by an employment or payroll tax on California business, where the disbursement rate is over two and one half times the amount of receipts per year, and where workmen's compensation premium rates have had to be increased twice in less than four years because of the ultra liberal benefit policies of the Brown appointed State Industrial Accident Commission. AN ENLIGHTENED SOCIAL WELFARE MEASURE, WORKMEN'S COMPENSATION, TURNED INTO A"GIVE AWAY" PROGRAM BY THE BROWN APPOINTED STATE INDUSTRIAL ACCIDENT COMMISSION. Under the first two years of the Pat Brown administration, Workmen's Compensation payments have increased 32% from $119,087,000 per year in 1958 to $156,979,000 in 1960. These monetary benefits do not come into the hands of the State Compensation Insurance Fund, or the funds of private insurers, from the thin air, but, rather in the form of insurance premiums or fees .for compensation coverage of employees, while on the job. Naturally, compensation insurance premiums must be considered as one of the many over- head costs of doing business in California. And, as the compensation insurance rates go up, as they have under the administration of Governor Brown, such costs must be shifted to the consumers of California business in the form of price increases. Needless to say, a 32% increase in compensation benefits paid out by the State of California alone, in addition to that paid by private compensation insurers at the direc- tion of the State Industrial Accident Commission, is cause for alarm within California business, investment, and industrial circles. This is so because, compensation costs of such magnitude as these, form an important item in the costs of manufacturing, selling, and distributing goods in California, and, if our compensation benefit payments and rates are disproportionately higher than in other states, California business and indus- try is put at a competitive disadvantage, with further industrial and commercial growth of our State discouraged. The theory of our workmen's compensation legislation, which was set up in 1914, under the Republican-Progressive Governor, Hiram W. Johnson, is that the Industrial Accident Commission will stand guard over the California Compensation Insurance Fund and the funds of private compensation insurance companies, to prevent their dissipation and protect California business and industry from having abnormally high compensation costs. The gubernatorial appointed Accident Commission provides protection against excessive withdrawals and raids on the compensation funds, mandatorily built up by California business and industry, by refusing to approve doubtful claims, setting reasonable awards for cases with merit, and establishing various benefit control policies. The outstanding failure of the Brown appointed State Industrial Accident Commission to properly protect California business and industry from excessive compensation costs is seen not only in the 32% increase in compensation payments within two years' time, but in the comparative fact that California business pays one-third again more benefits each year than do the States of Pennsylvania and Illinois combined, and our compensation benefit payments are about the same as those of the State of New York, the leading industrial and business state in the nation. It appears without question that business and industry in California is carrying a much greater compensation cost burden than exists in other leading, industrial states, and that these abnormal increases in compensa- tion costs are due to the Brown appointed Industrial Accident Commission, which has seemingly turned inself into a give away agency for the disbursement of California's public and private compensation funds, all of which must be replenished by substantial increases in the costs of doing business within this state. Such is the status of the business climate in California! MOST STATE AGENCIES AND COMMISSIONS UNDER GOVERNOR BROWN ARE ANTI-BUSINESS IN POLICY! It is now the commonly held view by the leaders of the California business community that businessmen and employer groups cannot win appeals before such important state commissions as the Industrial Accident Commission, the Unemployment Insurance Appeals Board, the Labor Commission, and most other state regulatory agencies, possessing quasi judicial powers. The reason given is that Governor Pat Brown has doliberately weighted these vital state commission against business interests by his partisan packing of these supposedly non-partisan or bi-partisan commissions, with his organized labor supporters and anti-business cronies, who delight in the substantial yearly salaries which many of these commissionerships carry. Today, business influence and cost protection within most Brown appointed commissions and agencies are virtually nil, notwithstanding the fact that business pays the bills for these public benefit programs. OUR DETERIORATING BUSINESS CLIMATE IN CALIFORNIA MUST BE IMPROVED BY NEW GUBERNATORIAL LEADERSHIP AND FAIR PLAY TO BUSINESS FOR THE CONTINUED INDUSTRIALIZATION OF CALIFORNIA. The major causes of our growing inhospitable climate for business investment and expansion in California can be summarized as follows. There has been a crying lack of executive leadership in protecting and promoting the interests of California business by our incumbent governor. He has permitted a growing bureaucratic harrassment of business, through over regulation and excessive reporting and state interference with management decisions and prerogatives. He has failed to obtain fair railroad freight rates for California industry, failed to act in our depressed lumber and mining industries. In order to carry out his welfare (vote buying) policies, he has imposed the highest state taxes on California business in history. We conclude that Brown has damaged our business climate!