European Stars And Stripes (Newspaper) - September 16, 1978, Darmstadt, Hesse Ait War Battle for Industry involves jobs. Dollars by Edward Craig United press International other War is going on Between the state these Days but this one does t mean bloodshed Only hard spoils millions of dollars in business and thou Sands of Battleground can be anywhere a state Gover nor s office a corporate boardroom a foreign City. The participants Are the states themselves As they muscle one another in attempts to entice an Industry to pull upstages and move All or part of its operation elsewhere. Asked Point Blank whether dirty tricks Are a weapon in winning the Battle most state officials say no. But the glazed look the facial expressions Tell a different Story. That injury is inflicted is Clear. Note the derisive tags Given to some states representatives the raiders of Ohio and Utah the cavalry of Kansas. Almost to a Man state officials refuse to pinpoint others by name As slanderers. Mudslinging is a two edged sword. Robert Goodman Nevada state economic develop ment director probably is As outspoken As any. He says he is constantly defending Nevada s image As a bling state or answering slurs related to the fact prostitution is Legal in some Rural say terrible bad things about the Sagebrush state he adds. He leaves it at Are Subtle ways of socking it to another state. Illinois is one of the few states that use helicopters to whisk company executives around the state in searching for relocation Iowa is next on the list for visitors Illinois gladly drops the executives off there where state cars takeover a Sharp contrast to helicopter travel. Simple one up Manship is the Way Dean Whittaker a spokesman for the Illinois department of business and economic development describes Mangin economic development program Man Ager in Arizona maintains that in the two decades he has been pleading his state s Virtues he has never run into unfair Competition from another state. Arizona he says is not attempting to pirate Industry away from other it justs praises its strategic position in the Southwest. Most of the inquiries in response to Arizona s Advertis ing of its Virtues come from California. There is a perception rightly or wrongly that Cali fornia is relatively inhospitable and that its regulative processes Are complicated Mangin Benefit being the closest state to late in 1976 Dow chemical co. Abandoned plans to build a $500-million petrochemical Plant in Northern Cali in Idaho. Anyone can get in to see the governor even republicans and it always is impressive " fornia citing red tape and bureaucratic bungling a reasons for its decision. Subsequently California created an office of business development which was replace earlier this year by a department of business and eco nomic received a big lift with approval by voters in june of proposition 13, which is expected to Cut taxes noncommercial and residential property by nearly 60 per incentives Are a major talking Point but some states such As Michigan Are powerless in the face of this approach. John Haniewski a spokesman for the Michigan office of economic expansion concedes the state was disappointed when Volkswagen decided on a Plant in Penn Sylvania rather than Michigan location of the country s Auto capital at Detroit and countless Auto Supply firms. He notes that part of the Pennsylvania package included lending of state Money to a private firm and that is something which the Michigan still Michigan Drew some measure of satisfaction from the Volkswagen experience when the German firm decided to locate its . Engineering and administrative Headquarters in Michigan. One of t Illinois biggest disappointments was losing Aford motor co. Transmission Plant to Ohio because according to a spokesman for the Illinois department of business and economic development his state did not have a tax incentive a result Illinois lawmakers passed such a program this year which exempts manufacturers new machinery from the state s 4 percent sales tax after a six year phase in period. Ross Fordyce chairman of the Arkansas Industrial development commission says tax gimmicks Are common tools used by states to attract an initial standpoint it looks Good he says. But after that moratorium corporate taxes sometimes Are James j. Dahmen an executive with the Minnesota department of economic development says Minnesota has a state loan program providing up to 20 percent offending requirements for new and expanding Industry at reasonable York has found that its fairly High personal income tax rate has Cost it business particularly to adjoining states. Connecticut has no personal income tax. New Jersey has a Low tax rate. As a result the state legislature this year shaved the maximum state tax on per Sonal income from 15 to 12 Georgia 18 cities and counties have passed a free port referendum exempting corporations from paying taxes on inventory to be distributed outside the state. Lbs records is building a $50-million Plant at Carrollton ga., which will employ 3,000. The free port consideration is believed to be the Factor that influenced lbs decision. To encourage new business development in Wisconsin machinery and equipment have been exempt from local property taxation since 1973.colorado has been offering tax credit for capital in vestments and in the 1960s it started a phase Down of the business inventory tax from 30 percent to 5 percent. State legislators recently approved a measure providing for corporate income tax credits based on new jobs for both old and new of the states vary where Industrial expansion is concerned. Such states As Ohio and Texas Are vigorous in Volkswagen rabbi luring firms from other states. Others such As Oklahoma and Alaska Are less interested in raiding than in offer ing themselves As eminently suitable for gov. James a. Rhodes has made jobs and Prog Ress the main theme of his three administrations. He i emphasizing it again As he seeks a fourth term. His chief aide and Long time associate is James a. Duerk director of the state s department of economic and Community major thrust of their approach is teams of state and business executives known As Rhodes raiders who descend on a City or country to make contacts for the state. Rhodes himself is ready to drop everything on Short notice and be off on a Jaunt for the Benefit of Ohio. Duerk tells of once showing Rhodes a newspaper clip Ping about japanese Auto manufacturers considering expanding into the United states. We ought to go to Japan soon Duerk told Rhodes. Well go tomorrow Rhodes said. They Rhodes group was away for 4v2 Days. They called on All major japanese Auto makers including the Honda motor co. Eighteen months later last oct. 11 Rhodes announced that Honda had agreed to create an Assembly Plant at Marysville for production of 60,008 cycles a year. The facility provided for 500 jobs immediately wit the Promise of More later if Honda decided to make Auto mobiles there. Since 1976, Ohio has attracted a general motors trans missions Plant to Batavia a Montgomery Ward distribution Center to Sharonville a Church and Dwight Plant to Tiffin. In addition Ford motor co. Has made a $100-Mil lion expansion of its Brook Park Plant near Cleveland. Rejects meant thousands of jobs for ohioans. By Gleason an official of the Texas Industrial Mission says his state always had an Daggres National Media Campaign and we plan to get aggressive next year by running a television this past june alone he says the state Ted 13 new major companies the Best month it and in almost a decade. Ver Jack Dressen director of Oklahoma s Indus so elopement department says his state prefers to ibanies to expand in Oklahoma rather than Relo Knode of Alaska s department of Commerce Andt Nic development says the state s primary goal sow is. Not so much in trying to get companies to Jere but to develop entirely new Jay Cayle of the Maryland department of eco Rand Community development says 70 to 80 percent estate s new jobs come from expansion of existing Iriaine we just go out and Tell Industry and Busi stir Story says Hadley p. Atlass director of the j development office. And our Story is that weft tremendously capable work ethic labor Force. We the land water and Power and a great Way of in sell Maine As a Aren t going to bother with you if you brag to be a hot shot promoter atlass says. You must in respect and Trust. Give them the information teed not a lot of promotional junk and you be got tonin their Confidence by not leaking a lot of Ilary in Iowa Gary Owens director of his state s a 2 Page 14 the stars and stripes Sei Otsuka and Lee b a Zany vice presidents quasar at the firm s electronics Plant near Chicago. Japan s Matsushita bought Torola which owned quasar and increased the Plant work Force from 900 to 2,2 Only 16 of whom Are japanese. Saturday Lember 16, 1978 Industrial development division says he tries to be realistic and straightforward and honest. Gimmicks just Don t we do not level with our prospects says William Kundrat jr., Secretary of new Mexico s Commerce an Industry department we Are going to lose our Credi Bili eiss Deputy director of Oregon s department of economic development said his state uses the Rifle in Stead of the Shotgun we re looking for businesses most compatible without environment and not necessarily anything that comes new Hampshire appeals to the pocketbook first says Paul Guilderson an executive with the department of resources and economic develop ment. The state s Basic Appeal is that it has no income Rosales tax is the Only new England state with a aaa Bond rating by Moody a and has a Flat 8 percent business prof its tax that replaced a complicated Levy seven years ago. Tom Benson commissioner of economic and Community development in Tennessee said his state concen trates a lot on foreign companies. One Success has Bee the Toshiba television company which will employ up to 800 and produce about 240,000 color to sets a year when the Plant is in full listing the considerations a state has to offer perquisites play an important r. Roberts advertising director for the Pennsyl Vania Commerce department says his state once lost plastics Plant to an unidentified Southern state because an executive with the firm was an avid Fox Hunter and we believe he fell in love with that other state s Fox Hunt ing also says Good Golf courses and the location of the country club Are just As important As a major High Way or the availability of skilled employees in planning locations of a Plant or in Nevada recall that a computer company from the san Francisco Bay area once was All set to move to a Community about 90 Miles from Reno. But when wives of company executives found the Community was out in the Sticks with no cultural and night life advantages the plans were Brock head of Florida s Trade development office recalls that one firm moved to fort Lauderdal because the company president liked the fishing. The firm subsequently folded. The president got fired. The hard sell is a hallmark of the approach of some states and the result is what rival states la bleed Rhodes raiders Ohio Hampton s raid ers Utah and the Kansas cavalry All groups of businessmen who help lure business into the state. The Utah group was created under former gov. Calvin Rampton. Teams of the state s businessmen were sent to a City to Call on firms whose names were unearthed by re search groups specializing in relocation. Under present gov. Scott Matheson Utah s Effort is entered More on advertising attending Trade shows and making direct mail approaches to industries Testate is looking for such As technical no polluting firms. The Kansas cavalry consists of about 300 business men representing a Cross Section of the state s business and Industry who travel at their own expense promoting the state s economic development. The state s depart ment of economic development provides preliminary work and staff support and possible targets elsewhere before the cavalry goes on the states to a lesser degree have variations of these raiding parties sending out individuals to Dis cuss tax incentives Market Access labor costs and other attractions. Of course when these travelling tub Thumpert Are As pretty As Judy Southard it s a major , Young blonde with a degree in political Sci ence is in Missouri s division of Commerce and Industrial development. Her beat is the Industrial Northeast. She spends two months a year travelling the rest of the time talking with Community business leaders to deter mine what inducements they can offer a business which wants to says she sometimes has to fight her Way in to see a businessman because he s being besieged by representatives from other states. Then it s a matter of hold ing the Prospect s attention to make a convincing Money budgeted for pleading a state s Case to Industry varies widely from the $21 million a year for Pennsylvania s development Agency to $169,000 by Wyoming. All but eight states have economic or Industrial development agencies. The budgets of 24 development groups top $1 Mil lion a year. Moreover 23 states maintain sales and marketing offices in Western Europe. Virginia was the first state to open an Industrial development office in Europe according to j. Frank Al Spaugh director of the division of Industrial development. Since 1969, when the office opened we be brought in some 17,000 manufacturing jobs from outside the country he states have an image problem. Robert Goodman head of Nevada s economic development Agency said one impression he finds difficult to combat is that the state s gambling casinos oppose Indus be had to meet with every hotel owner in Las vegas to get the Rumor wiped out that we Don t want Industry but still people use it As Salt in our one of Florida s main obstacles in pleading its Casewitz Industry is that it is a tourist state Dick Breck Florida s chief of Trade development a governor prepared to pack his travelling bags on instant notice also is of immeasurable help. In Addi Tion to Ohio s Rhodes there is gov. John n. Dalton of Vir he took office at the Start of the year Dalton has visited new York City three times in a search for Indus try willing to relocate in the old Dominion. He recently returned from a 12-Day trip to Europe which he says meant at least $50 million in foreign invest ment for the . Frank Alspaugh head of Virginia s division of Industrial development estimates that the state attract san average of 1,000 jobs a year from other states and j. C. Penney Chain plans to open a Western distribution Center at Reno nev., in january thanks partly tothe efforts of gov. Mike o Callaghan who flew to new York twice to convince the Penney directors of the suitability of Reno. In some states the governor is available to visiting Industrial firemen. One such is gov. Pierre s. Dupont in of time we have a Prospect who comes to the state and represents a substantial capital expenditure and in vestment we can get him in to see the governor at a very Short notice boasts Willliam j. Mcdermott the state Industrial development coordinator. Dupont also attends Many Plant openings and groundbreaking As do most governors. Gov. Meldrim Thompson of new Hampshire say she s As Busy cutting ribbons As Many politicians Are kissing in Idaho says Lloyd Howe director of the state s Divi Sion of tourism and Industrial development anyone can get in to see the governor even republicans and i always is impressive especially to people from Large states who can never see the governor even sex governors play a role. Former South Carolina gov. John West is . Ambassador to saudi Arabia and. L. Daniel of the South Carolina development Board concedes his presence there helps the Palmetto people Over there get to know him they get to know South Carolina he says. West often entertains vis iting Arab dignitaries at his Hilton head Home. And we must not forget the governor s promote Kal Kan foods Illinois gov. James r. Thompson s Irish setter guv was used in a promotional piece put out by the department of business and eco nomic development. He was pictured digging into one offal Kan s dog food products. Catch phrase is helpful to a state s proclaims profit is not a York says we re not giving business the business any More. We re giving it a Jersey if it s higher profit you re after new Jersey s got the Texas Industrial commission says when the old corporate tax bite eats away profits Cut out for Arkansas what a site to says it is a City that works while Dallas fort Worth says it has the right february the new York times printed an and of the new York Commerce department which said once you know All the facts we think you la see that the grass in t Greener in Greenwich and the Sun Belt in t so hot,either." a month later it rejected an and from the Jackson Ville chamber of Commerce picturing the statue of Liberty hitchhiking South and the words every one s leaving new York for the big we made it Clear to them that they were perfectly free to say positive things about Jacksonville but not at the expense of new York City explained Sydne Gruson times executive vice president. 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