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BUFFETT'S BULLET 19
June 10, 1991

Years ago, in the 30's, (when I was very young) my Swedish grandfather, whom I've talked about before, took me to a slaughter house. It was quite interesting, but it took me awhile before I could eat meat again. The main thing I remember is the way they got the animals to walk in to be slaughtered. Goats led the other animals inside the building and they were called "Judas Goats." The Judas Goats were well fed. I think they were fed OATS and kept warm in the winter. The goats would keep leading the other animals to be slaughtered and it never seemed to bother them.

Recently, I've been thinking that there are many goats in the New Mexico business community who just keep leading the other business people to the slaughter house. Goats are those who lead business people to be slaughtered by keeping business people out of politics. People have asked me why goats would hurt their business friends. That's easy....for OATS! Just look around and you'll see lots of places where the goats find their OATS.

1. Each year the State of New Mexico spends over $100 million dollars on projects which are not put out for bid. This proves that OATS are not always cheap.

2. There are more OATS for the goats in the construction of state buildings and highways which are put out for bid.

3. In Rio Arriba County, one bank receives 80 per cent of all the county deposits. The other two banks share 20 per cent. (More OATS for the goats there.)

4. Some New Mexico law firms make over $1 million dollars in fees each year working for the State. I'll bet there's some OATS for the goats in that, too.

5. Just look around at the number of private buildings that are rented to State agencies. There are more OATS for the goats in the corners of these buildings.

6. Some business groups are taken care of in Santa Fe by special interest legislation that the Democrat leaders pass for them (that's their OATS). The problem is that special interest legislation does not help the overall State's business climate. However it does prove that former Governor Anaya was right when he said "New Mexico is a Banana Republic."

7. New Mexico banks have more than $300 Million Dollars in State moneys loaned out. Maybe the interest earned by the banks takes care of some OATS.

8. The government regulates some businesses in the the State, like bus lines and utilities, and get favorable rulings that might include some oats.

I've noticed that some goats don't need to be fed, but will do anything just to be petted (somewhat like a cocker spaniel). The petting consists of appointments to state boards, boards of regents, commissions, etc. I call these people the "Pretty Goats." Remember goats can be either Billies or Nannies....this is an equal opportunity goat club.

In your business groups, you will find many people would like to get politically active. But there are those who want the business community to stay out of politics. Why not try to determine if the "stay out" goats are "Fat Goats," "Pretty Goats," or if they are just plain "Dumb Goats."

After you figure out which kind of goats surround you, then comes the hard part. (Of course, you've heard how hard-headed goats are.) You must convince them that if the business climate improves, each will still get OATS (maybe even some corn)...but so will everyone else!

I am not saying "Stop doing business with the State." What I am saying is if you do business with the State, don't leave your political brains and guts in the barn in exchange for OATS or a nice pat on the head!

In my last letter, I told you how to apply heat to get politicians to see the light. Now I have five things for you to do right away to apply "The Heat" and start improving our business climate (if the goats will let you). The five points will be easy to remember because there's one action for each finger on your hand.

First, get your business groups and friends on record opposing bills I call the automatic strike bills. These are bills in Congress which will outlaw the permanent replacement of strikers. These two bills are HB5 and SB55. They will do more to help unions than any bill imaginable and will cause more strikes. Workers could leave anytime, for any reason, call it a strike, and the federal government would force the business to take the worker back when the worker tries to return. Each business group in the State should go on record opposing these bills. The United States Chamber of Commerce is opposed to the bills. New Mexico Congressman, Bill Richardson (a Democrat), has signed on as a cosponsor of HB5. This may explain why the Third District in Northern New Mexico which Congressman Richardson represents has less new economic development from out-of-state than the rest of New Mexico.

Second, write or fax the Governor and say "No More Taxes!" Governor King's supporters have talked about pushing a call for a three-mill statewide property tax in a special legislative session planned for September. This hill will raise your taxes by $46 Million Dollars. This same bill died at the end of the 1991 first session.

But our liberal Democrat friends want another chance at passing it so they can give more money to state government employees. (Of course this means less money for the average citizen.) To summarize the bill's intent: We would vote in a general election whether or not to increase the property tax ($46 Million). If we vote "No," in the general election, this bill had a clause providing for a special election to raise the question again. Democratic leaders figure that most voters don't vote in special elections but government workers will vote in the second election, and the tax would pass. This is the first time I have have ever heard of voting on the same tax issue twice.

Democrat politicians are getting more creative in separating you from your money. Possibly these great(?) ideas come from the exotic places they go for their meetings.

Here's a third way to help. The union bosses have an idea to shaft the State. They want to have a special study committee on Collective Bargaining. The committee would be made up of union bosses and goats. We beat Collective Bargaining for government employees last session, so the Governor needs an excuse to include it in the special session this fall (or) the 1992 session.

Every business group in the State should come out against this. Also business people should refuse to serve on the committee, as it will be stacked with goats. The May issue of Forbes Magazine ran a five-page article about how bad governmental collective bargaining is for the average citizen and the State. We have entire business groups in New Mexico who will not fight Collective Bargaining. This alone sends a negative message to businesses throughout the rest of the country. Our business community must take pro-business stands to gain outside respect. Business people must not let the goats in their groups stop them from taking a pro-business stand. Just remember---if the goats win, they get fatter and you get slaughtered.

The fourth action is to get your business group interested in the coming redistricting of our State. The Democrats are trying to drastically change the boundaries of our Congressional Districts, for strictly political reasons. They are trying to split Albuquerque to guarantee a second Democrat Congressional seat. They plan to take the Northeast Heights in Albuquerque and place it with Torrance, Chaves, Lincoln, Otero, Eddy and Lea Counties. The rest of the city will be lumped in with Belen, Socorro and Silver City. Doing this ensures another liberal Democrat Congressman. This means two Congressmen could be from Albuquerque. Who would worry about the rest of the State? The flip side, both representatives could be from outside Albuquerque...who would watch out for Albuquerque? THIS IDEA STINKS!

If the business groups you belong to, take stands in spite of the goats, here are fax numbers and addresses for people who need to hear your message:

Governor Bruce King
PERA Building, Room 542
Santa Fe, NM 87503
Phone: 827-3000 FAX: 827-3026

Senator Pete Domenici
625 Silver Ave., S.W. Room 120
Albuquerque, NM 87102
Phone: 766-3481 FAX: 766-1443

Senator Jeff Bingaman
625 Silver Ave., S.W. Room 130
Albuquerque, NM 87102
Phone: 766-3636

Congressman Joe Skeen
1065 5. Main, Room A
Las Cruces, NM 88001
Phone: 527-1771

Congressman Steve Schiff
625 Silver Ave., SW Room 140
Albuquerque, NM 87102
Phone: 766-2538 FAX: 299-2401

Congressman Bill Richardson
548 Agua Fria Street
Santa Fe, NM 87501
Phone: 988-7230

Also it is important to tell other business groups in your region what you've done. It may give them strength and courage to do the same. When you take a stand, please tell the following Albuquerque groups what you've done

1. The Greater Albuquerque Chamber of Commerce, Fax 247-9140
2. Albuquerque Economic Forum, no single fax line, phone first 883-2505
3. The Association of Commerce and Industry, Fax 247-9140

Why tell these Albuquerque groups? They have a track record for only supporting the Fourth of July, motherhood and apple pie. You will be like a nine-year old boy telling his sixteen-year old brother to quit being a sissy.

Now that you've taken these four steps to improve our business climate, the fifth step is the easiest but most important step to do:

TELL DIFFERENT MEMBERS OF YOUR GROUP THEY MUST PERSONALLY TELL THEIR LOCAL SENATORS AND REPRESENTATIVES WHAT YOUR GROUP WANTS!

Remember, keep it simple, so the politicians can understand.

You've seen the Buffett five-point plan for corralling the Goats. Working together there are 4,000 of us who can make a difference.

Sincerely,

George Buffett

p.s. Let me know when you are successful because I want to share success stories!

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