spoke on "The Necessity of Budgeting Governmental Expenditures"; and the Conference closed with a luncheon, at which the costs of the Colorado River development were discussed by Prof. Reuel Leslie Olson, Department of Law, University of Southern California, who suggested the appointment of a permanent Colorado River Commission, and at which Congressman Elmer O. Leatherwood of Utah expressed the belief that at least six states should ratify the Colorado River pact before Congress could be expected to enact legislation providing for the development of the Colorado River. 1927 CONFERENCE TO MEET IN SANTA FE On Wednesday, it was decided that the fifth annual Western States Taxpayers' Conference will meet in 1927 in Santa Fe, N. M. The officers of the Conference for the following year will be: President, H. J. Hagerman, President, Taxpayers' Association of New Mexico, Santa Fe. Vice President, Henry H. Rolapp, President, Utah Taxpayers' Association, Salt Lake City, Utah. Vice President, Scott Z. Henderson, Tacoma, Wash. Secretary-Treasurer, A. C. Rees, Secretary, Utah Taxpayers' Association, Salt Lake City, Utah. H. Chairman, Executive Board, Milbank Johnson, Chairman, Board of Directors, California Taxpayers' Association, Los Angeles. Advisory Committee: Arizona, Rudolph Kuchler, President, State Taxpayers' Association, Phoenix; California, Vance Evans, Executive Secretary, California Taxpayers' Association, Los Angeles; Colorado, George Spalding, Tax Commissioner, Mountain States Tel. & Tel. Co., Denver; Idaho, (to be named); Montana, John Edgerton, Secretary, Montana Taxpayers' Association, Helena; Nevada, F. N. Fletcher, Director, Nevada Public Economy League, Reno; New Mexico, Hugo Seaberg, Attorney, Raton, N. M.; Oregon, C. C. Chapman, Editor, Oregon Voter, Portland; Texas, John T. Smith, Editor, Texas Tax Journal; Utah, C. M. Brown, Utah Taxpayers' Association; Washington, C. E. Arney, Jr., Executive Secretary, State Federation of Taxpayers' Association, Seattle; Wyoming, M. O. Danford, Midwest Refining Co., Casper. THE RESOLUTIONS The resolutions reported by the chairman of the Resolutions Committee, C. C. Chapman of Portland, had passed through the hands of the committee in the usual order and were adopted unanimously. They are as follows: RESOLVED, that we recommend to state and local Taxpayers' Associations the use of paid display advertising space in their state and local newspaper press as constituting a responsible, economical and effective method of getting tax facts before the public. SPECIAL INVESTIGATION RESOLVED, that the Western States Taxpayers' Conference authorize the appointment of a committee of three whose duty it shall be to investigate and report at the next meeting of the Conference on the comparative per inmate costs of each of the state's institutions. Investigation to include penal institutions, corrective institutions, and curative institutions. COUNTY GOVERNMENT RESOLVED, that this Association appoint a committee to report at the next annual Conference on the advisability of designating and recommending the adoption of more modern methods in county governments and on the desirability of consolidating small counties in the interest of efficiency and economy. UNIFORM ACCOUNTING WHEREAS, the varying systems of accounting in use in different states, counties, districts and cities, render the work of Taxpayers' Associations much more difficult, NOW THEREFORE BE IT RESOLVED, that the Western Taxpayers' Conference favors the adoption of a uniform system of accounting for each state, and all its subdivisions and if possible for all of the states within the scope of the Conference. BUDGETARY SYSTEMS BE IT RESOLVED by the Western States Taxpayers' Conference that we urge upon all states to provide that the state government and all its political subdivisions, including schools, shall operate on a budgetary system; that provisions by law shall be made for the proper enforcement and adherence to such budgetary system on the part of all public officials concerned. BOND ELECTIONS BE IT RESOLVED by the Western States Taxpayers' Conference that states be called upon to pass such laws or to take such other measures so as to provide that no bond election by the state or in any of its taxing units shall be held valid, unless at least 50 per cent of the qualified electors of such state or unit, shall cast their votes at such election. SERIAL BONDS BE IT RESOLVED by the Western States Taxpayers' Conference that we favor serial bonds as the preferable form of bonds, in the interest of economy and sound business administration in public affairs. SPECIAL IMPROVEMENTS BE IT RESOLVED that the Western States Taxpayers' Conference urge all states, subdivisions and districts to adopt the policy of operating on the long term budgetary plan for the determination of their improvements. NATIONAL TAX ASSOCIATION WHEREAS, there is rapidly developing a tax consciousness on the part of taxpayers generally throughout the United States, which is leading to the formation of representative statewide and regional taxpayers' associations, interested in aiding to bring about greater efficiency and economy, and WHEREAS, there has been held by the fourth annual Western States Taxpayers' Conference assembled in convention at Los Angeles, California, October 11, 12 and 13, a full discussion covering governmental expenditures. NOW, THEREFORE, BE IT RESOLVED, that this Conference respectfully request the National Tax Association to devote, as is being done at the 1926 meeting, a portion of its program at each annual meeting to the consideration of problems having to do with control and methods of public expenditures, and BE IT FURTHER RESOLVED, that the National Tax Association be requested to extend full membership and recognition to properly constituted taxpayers' associations organized on a statewide and regional basis and representative of the interests of the taxpayers proper. APPRECIATION BE IT RESOLVED by the visiting delegates of this Conference that a sincere vote of appreciation be extended to Dr. Milbank Johnson for the unbounded hospitality which he has shown the visiting conferees and for the masterful manner in which he has presided over this Conference. BE IT FURTHER RESOLVED, that a vote of thanks be extended also to the California Taxpayers' Association for the thoroughness and liberality with which it has prepared for this meeting; that the able services of Mr. Vance H. Evans, as assistant secretary of the Conference, be especially recognized. BE IT FURTHER RESOLVED, that the Conference express its appreciation for the many courtesies extended to the conferees by the Los Angeles Chamber of Commerce. A PRESS ADVISORY COMMITTEE The editor of The Tax Digest, however, offered an additional resolution from the floor, frankly admitting that he did so for dramatic effect. He cited what he believed to be an habitual error of quasi-public bodies, in that they did not include the great body of journalists as an integral factor in the consideration of public af fairs. The custom, he said, was for gentlemen to assemble and decide on what measures were necessary to save the country, and then to go to the press and say: "This is what you will print." He sug gested that in every city there are working journalists who are constantly in touch. with all phases of public affairs, and here was a vast storehouse of information which might be utilized to immense advantage by the Western States Taxpayers' Conference, and that the press should be taken into consultation as a primary and not a secondary influence. Therefore, the following resolution was offered: RESOLVED, that the vast fund of information and judgment on public afiairs regarding taxation and the interests of the several communities which journalists of the different states have necessarily accumulated be utilized in the further study of taxation, by the appointment of a Press Advisory Committee, one member from each state, to report a plan to the 1927 Conference whereby this fund of information may be available. Judge Rolapp of Utah offered an amendment which, with the resolution, was unanimously adopted, providing that there be appointed a thirteenth member of the General Advisory Board of the Conference, the thirteenth member to represent the press. THE CONFERENCE COMMITTEES The committees for the Conference were: Resolution: C. C. Chapman, Oregon. chairman; George Spalding, Colorado; F. M. Fletcher, Nevada; Adolph Kuchler, Arizona; A. G. MacKenzie, Utah; M. D. Lack. California; E. M. Sawyer, Idaho; Rupert F. Asplund, New Mexico. Nominations: F. N. Fletcher, Nevada, chairman; E. M. Brown, Utah; R. A Vandegrift, California. Permanent Organization: Henry R. Rolapp, Utah, chairman; C. C. Chapman, Oregon; Rudolph Kuchler, Arizona. Place for 1927 Conference: Rupert F. Asplund, New Mexico, chairman; E. M. Sawyer, Idaho; V. H. Evans, California. Send for the Fire Department The probation nurse telephoned frantically to the physician: "O, Doctor, your patient has 120 degrees of temperature. Come at once!" "You don't need me," the doctor responded. "Send for the fire departme No. 5 Opinions expressed by writers herein are not necessarily the opinions of the Editor of this magazine, but are printed in the interests of free discussion. THE TAX DIGEST JOHN LATHROP, Editor VOL. 3 NOVEMBER, 1926 ART COLLECTIONS AND FLOOD CONTROL DAMS The great Stilwell art collection was under consideration to be brought to Los Angeles from New York City to cost $800,000. It was one of the choicest collections in the world. For fifty years Dr. John Stilwell had gathered these art treasures from the ends of the earth. He asked only a return of the expense he had incurred in making this collection. He generously sought no profit. The money was to be contributed voluntarily by individuals to make up the sum of $800,000. There was to be no compulsion. Who contributed would do so of his own accord, to enrich the culture of the community. The question arose as to whether or not public men and public bodies, among them the Los Angeles Chamber of Commerce, should endorse the appeal which was to be made to the people of Los Angeles to contribute the $800,000. The Chamber stipulated that, prior to such endorsement, prior to any purchase, there must be an independent appraisal of the art objects included in the collection. It had already been appraised by a competent Los Angeles art critic. However, the question also arose as to endorsement by the Chamber of Commerce of a bond issue of $35,300,000 for flood control, the money to be contributed perforce by the taxpayers, and the sum forty times as great as that involved in the art collection. Endorsement was given without independent checking. Why this difference? It was proper to reappraise the art collection, because then those involved in the art proposal could say to the people of their city, we have assured ourselves that this much money is needed and that more than actual value will be returned when the collection, if at all, is obtained. Should there not be equal vigilance with the taxpayers' money, when it is not a case of voluntary contribution? The Chamber of Commerce was rational, normal, fair, consistent as to the art collection. Was it equally so as to the flood control bonds? Must there not be a fundamental reform of procedure? Are not taxpayers entitled at least to the same degree of solicitude as voluntary contributors are? Both are entitled to such solicitude. Independent re-appraisal of the art collection was right. Independent checking of the flood control plans would have been right, too. Wherein may any one point a difference in the two cases? HONESTY AND ACCURACY OF WOMEN One of the large department stores of a California city accommodates the public by the cashing of personal checks, regardless of whether purchases are made in that store or not. On a recent day this store cashed such personal checks aggregating $15,000. They all passed through the hands of one man who "O.K.'d" them for payment by the cashier. Of that $15,000, only one check, one for $15, proved to be not good. This was one-tenth of one per cent of the total. Two small checks in this large aggregate were temporarily held up, marked "Insufficient funds," but, upon being sent back, were promptly cashed by the banks upon which they were drawn. These checks were for small amounts, nearly all of them drawn by women, probably ninety per cent of them. In these days of pessimistic comment on the alleged unreliability of people in this post-war period, such a record is both interesting and instructive. It points this moral-that the great majority of persons are honest, and that mistakes when made are usually, almost always, honest mistakes. But the further lesson to be learned from this is that there were so few even of honest mistakes made. Men who joke about women keeping their bank accounts would better read this statement with some care and revise their habitual comments, even if made in a joking manner. From a business standpoint, the loss of one-tenth of one per cent of this accommodation of small personal checks doubtless was compensated by purchases, the profit on which many times over wiped out the small deficit. However, this record is a tribute to the judgment of the store's representative who "O.K.'d" these many checks. His position should be quite secure with his organization. Under the Editor's Study Lamp The official monthly publication, "New Reclamation Era," of the Bureau of Reclamation, Department of the Interior, Washington, announces the appointment of Louis C. Hill to membership on an important board of engineers to study the proposed new damsite between Avalon and McMillan reservoirs on the Carlsbad project. Mr. Hill, who was formerly supervising engineer of the Bureau of Reclamation, and who is now a consulting engineer with the Department of the Interior, will represent the interests of the water users. S. O. Harper, assistant chief engineer of the Bureau, will represent the Bureau, and Oro McDermith, a former engineer of the Bureau, will represent the Secretary of the Interior. It will be noticed that here is another instance of preliminary studies before the endorsement of a proposed damsite. California Taxpayers' Association is confident these studies will be prosecuted with thoroughness and high skill. Mr. Hill is the engineer employed by this Association to report on the San Gabriel damsites, which therefore knows the conscientious character of his technical work. It is also learned that Mr. Hill has been retained by the Mexico City Light & Power Company in connection with the construction of a very large dam in Mexico. This company carries a capitalization of many millions and is in a position to procure the best of engineering skill. Mr. Hill has been in Mexico in connection with this enterprise during the past month. For the first time in history, so we believe, a chamber of commerce secretary has objected to the publication of population figures for his home city on the ground that they were too high. Ray L. Riley, State Controller, recently assigned Pasadena 80,643 population, and gave the fig ures to the Sacramento correspondents. When they appeared in the Pasadena newspapers, Secretary William Dunkerly, of the Pasadena Chamber of Commerce, said they were about 5000 too high, and that Pasadena really had only about 75,000 persons permanently living there. Controller Riley must have turned over in his official chair when Secretary Dunkerly's conservative stand became known to him. Furthermore, it would be not at all surprising if the Ancient and Accepted Order of Secretaries. sit in judgement on the recalcitrant, and oust him. Here is sympathy for the possible severity of the judgment, and high admiration for his courage. However, may his tribe increase! Lloyd McAulay of Stanislaus County thinks the August number, devoted almost wholly to the Sonoma County Report, was worth while. He writes: "Herewith subscription for one year. I was very glad to get a recent number devoted especially to a single county, and would gladly pay a year's subscription for a similar number devoted to Stanislaus County. That's what I call constructive criticism." Writes William P. Lathrop, a financial man of Walla Walla, Wash.: "I have watched with interest the growth of your Tax Digest. It appears to have grown in a year from a pamphlet to a respectable and well gotten up publication. The work that you are doing is constructive, and since the tax question has per plexed the world ever since governments were known, there is no need to fear that it will not continue to need attention." The great Stillwell art collection to purchase which, for $800,000, efforts are being expended in Los Angeles, has been reappraised by Dr. Frank Muller of New York, who values it at $1,046,855. The original appraisal of the collection was $1,250,000. vast Dr. Muller declared: "This collection in my opinion is admirably suited for the in view, and contains a purposes amount of high class art material, not only of great rarity, but for educational requirements of a great metropolis a distinct and unique acquisition. I know of no other aggregation outside of the principal museum of European capitals and three or four cities in the United States that is so representative in most of the phases of pictorial, sculptural and applied arts of the past centuries." The principle of independent appraisal was applied very happily. "I enclose my dollar for California Taxpayers' Association with my sincere admiration for the splendidly sustained character of The Tax Digest. It is always conspicuous for ability and accuracy," comes from A. Moresby White. College Students Sign Own Death Warrant As a stunt at Oklahoma University recently, a petition was circulated ostensibly asking for a holiday when it really requested the faculty to remove all credits, suspend them without a hearing and to shoot them at sunrise. More than three hundred students were taken in by the hoax.-Southern California Trojan. LONELY UNCLE SAM! The Dignity of Just Taxes Judge McCabe of the Indiana Supreme Court as shown in the case of State v. Express Co., 144 Ind. 560, said: "It is but natural that the tax gatherer should be made an unwelcome visitor by many good people. But the good citizen should take comfort in the payment of his taxes when reminded that it is such payment that enables the majesty of the law to walk by his side and shield and protect him against the lawless and violent both day and night in the enjoyment of life, liberty and property." -Express, London -S. F. 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