Evening star., 1939-10-29
California Ham and Eggs Plan
Goes to Voters November 7
'$3o-Evey- y-Thursdoy Opponents Fear
Bankruptcy and Dictatorship

Republic" and even with q full
fledsed circus which toured the
State. Nightly their arguments have
been broadcast from IL radio sta
tions. They held from 10 to 30 mass
meetings day.
Yet thousands of businessmen, in
cluding virtually every major mer-
camille establishment, have pro-
claimed their determination not to
accept the pension warrants as
money.
Dictatorship" thundered the or
ganized opposition in advertise
ments, radio broadcasts and bliz-
yards Of pamphlets.
They pictured chaos for business,
bankruptcy for the State, its cities
and other subdivisions; a bank crisis,
big industry in flight, schools and
police departments closed for lack
Of money, and establishment for
the elderly.
"Hoaxing the hungry" they called
1t, and "a one-way ride for the old
folks" They charged it would wreck
the present pension system, which
pays up to $35 monthly to needy
persons over IS. 1t is designed to
supplement, not replace, the present
pension setup.
TT will mean the complete scrap
ping Of democracy in California"
said John R. Richards, newly ap-
pointed State finance director.
Opposed BY Roosevelt.
President Roosevelt opposed it. as
he did last year, when he termed
the plan fantastic" and "a short
cut to Utopia
Citizens focked to registration
places to qualify for the ballot, g.
605 ,907. only $500 less than 1898,
getting on the lists.
Some opponents openly confessed
apprehension over the apparent
strength of the movement. A few
publicly discussed the possibility Of
attacking its constitutionality in the
Federal courts.
Gov. Culbert L. Olson, for whose
election last fall the ham and egg"
organization claims credit, called the
forthcoming special election after
$1,000 Californians had petitioned
him to do so.
In his proclamation. however, he
expressed the belief that the plan
would fail to achieve its objectives,
would "disappoint' its supporters
and "retard instead of aid our prog
ress toward a better economic order"
The proposed amendment is so
written that the plan could 70 into
operation independently of present
State officials.
Five days after its adoption the
Governor would have to appoint
either Roy G. Owens or Will H.
Kindig, Los Angelenos, as ad-
ministrator. Mr.. Owens automati-
cally would get the job if the Gov
ernor failed to act. The administra-
tor and his staff would be paid in
warrants. All regular State en-
ployes still would be paid in cash
unless they elected to accept war
rants.
Would Set Up Organization.
The first duty of this administra-
tor would be to appoint his subor-
dinates and establish the credit
clearings bank of the people of Cali
fornia' with the help of $40
100000 bond issue and a S9OO,O
cash loan from the State treasury.
Within II weeks the bank would
start issuing retirement compensa-
ton warrants to somewhere be-
tween 100000 and 100000 Cali
fornians. Even former convicts not
entitled to vote but otherwise quail
fed could receive the pension. Pay
ments would start at the rate of
SIS face value weekly to each per-
son and eventually reach $50 or
more.
These warrants would be self
redeeming" through 2 per cent
weekly stamp tax. The stamps
would have to be bought from the
Peoples Bank with cash.
Theoretically the pensioner on re-
ceiving his warrants would affix the
first stamps and go forth to spend.
But no individual or business place
would be compelled to accept the
warrants as money. They would not
be backed by the full credit of
the State, as regular warrants are.
Once in circulation, the warrants
would have to be stamped every
week by whomever possessed them.
At the end of year they would bear
50 stamps representing a cash in
take of $l04 at the bank and would