Mortality and Business Turnover in California in 1958, issued by State Board of Equalization, Research and Statistics Unit, Sacramento, California, May 12, 1960.
2.
Movement of industry from urban areas to rural or small town areas has intrigued industry location experts since World War II. See: “Why Big Industry is Going ‘Small Town,’”U.S. News and World Report, Dec. 21, 1959, p. 87. Also: Factors Affecting Industrial Location: A Bibliography (New York: Tax Foundation, Inc., December 1956); Location of Industry as Influenced by Taxation and Special Inducements; Selected References, Detroit, Michigan, March 16, 1955 (compiled by Robert Armstrong, Head, Municipal Reference Library); and Bibliographies: Taxes and Other Financial Inducements to Industrial Location and Comparative Analyses of State Tax Burdens (Newark, Delaware: American Industrial Development Council, Inc., Aug. 3, 1960).
3.
No attempt is made here to evaluate the impact of industrial migration on the economy of the state. We are primarily concerned with a classification of the firms affected and the reasons which can be assigned to their actions. It should also be noted that no trends can be established since no data exists for comparison. The period studied represents approximately three and a half years.
4.
Some of the preliminary work for this article was done during the summer of 1962 in a released but unpublished study for the California State Economic Development Agency on migration of firms from California.
5.
The Secretary of State is required to maintain only the county of origin for each corporation recorded. It was necessary to locate the specific address of the firm and the facilities involved through other sources.
6.
The Los Angeles Times was particularly helpful.
7.
Annual Report, Franchise Tax Board, May 1962, p. 50.
8.
See Mortality and Business Turnover in California in 1958 (Sacramento, Calif.: State Board of Equalization, Research and Statistics Unit, May 12, 1960).
9.
The period selected was dictated by the fact that relevant information is discarded after short intervals. Since it was desirable to develop more than one sample for comparison, the period was that of available Franchise Tax Board “dead” file.
10.
The twenty-one letters returned as undeliverable were variously stamped as “out of business,” “premises vacant,” “no forwarding address,” “unknown at address,” and since changes of address are maintained for two years from the date of filing, such designations probably indicate that the firm is out of business since the 493 surrenders of right were for 1961 and 1962—within the time limit of change of address effectiveness.
11.
The minimum corporation tax in California is $100.00 annually. This is generally regarded as a license fee which permits the firm to expand into California when circumstances permit. Many such plans obviously do not materialize.
12.
The SIC number indicates that the firm has actually maintained some type of operation in the category indicated since the number is assigned by the Department of Industrial Relations, the United States Bureau of Labor Statistics, and the California Department of Employment.
