Utah Rares Up

Since Wright Patman began his anti-chain-store crusade in 1935, the stores have read little good news. But last week Utah gave them some. The citizens rared up and threw an anti-chain tax for a loss. By Utah's constitution, a petition of 10% of the voters can set aside any law, make it subject to a Statewide referendum. To force suspension of their new chain-store tax, Utah voters used this right for the first time.

Credit for the coup d'etat went to the Utah Chain Stores Association, whose members operate about 400 of the State's 6,400 stores. The tax was extreme, ranged from $50 to $5,000 a store, with the levy based on all stores owned by a chain, not just those in Utah. But the Legislature had passed it over farmer-labor protest, and the Governor signed it even after his own Attorney General had declared some parts unconstitutional. With these talking points and a sheaf of petition forms, notarized Association solicitors started a door-to-door trek April 1. Business houses, factories, even independent stores helped, and last week 67,507 voters (27% of the 246,940 who took part in the last election) had signed. The tax is suspended until the November 1942 election.

With one more victory to their credit, U.S. chain-store owners this week were loading the cannon for a fresh barrage against the 19 other States having such taxes.

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