A Staff Report by the Straight Dope Science Advisory Board
Nov. 26, 2002
Dear Straight Dope:
Is it true that vintners Ernest and Julio Gallo got friendly politicians to pass a law for one day that allowed them to pass a large portion of their assets to family members without paying estate or gift taxes and the following day, after the exchange, the law reverted to its original state? The professor of a tax class I took around 1987 mentioned it, saying people referred to it as the "Gallo Law." --Bob Brown, Boston, MA
SDSTAFF Veg replies:
Some people might call it the "Gallo Law," Bob, but it's usually referred to as the "Gallo Wine Amendment." The story behind it just goes to show that when you make a fortune, make sure you give some of it to a politician or two--and it doesn't matter what party they represent, because, in the end, they're all members of the Green party.
Ernest Gallo has been the head of E&J Gallo Winery in Modesto, California, since 1933, when his parents died. (It was an apparent murder-suicide, in which Ernest's dad killed his mum and then turned the gun on himself.) His brother Julio handled production, and their other brother Joe was an employee.
Gallo wanted his company to be the "Campbell Soup company of the wine industry." Early on, Campbell's probably wasn't too happy with the comparison, since Gallo sought his goal by selling fortified wines like Thunderbird and Ripple. But Gallo's efforts succeeded. His company became the largest winemaker in the country, and eventually the world.
As the company grew, the Gallos gave lots of money to politicians--Julio gave more to Republicans and Ernest gave more to Democrats, but let's face it, it all came out of the same wine vat. One of the many recipients was Democrat Alan Cranston, a California senator. The Gallos helped Cranston win a tough re-election bid, and in 1978 Cranston returned the favor. A Washington law firm custom-tailored some legislation to allow the family to spread inheritance tax payments over several years. Cranston submitted the new tax rule as an amendment to another bill and helped push it through the Senate (which wasn't that difficult--Cranston brought the bill to the Senate floor on a rare Saturday session where it was passed with only a handful of senators present). The measure was dubbed the "Gallo Wine Amendment" by then-senator Bob Dole of Kansas.
Dole was a Republican and Cranston was a Democrat, but the story hops over to the other side of the aisle eight years later. In 1986, the Democrats were rewriting the tax code (again). The Gallos decided that an amendment on the table could lower their inheritance taxes further still, so they lobbied for it. And who did they lobby but the very guy who had derisively labeled Cranston's amendment eight years earlier: Bob Dole. We don't know was said in private, but what a coincidence that when Bob Dole supported this second amendment, his political action committee (PAC) received four $5,000 checks from Ernest, Ernest's wife, Julio, and Julio's wife.
The favorable tax treatment authorized by the amendment expired in 1990--maybe that's where your professor got the idea that the Gallo law expired the next day. He may also have confused the Cranston Gallo law with the Dole Gallo law. Easy enough to do--as you can see, there are a lot of Gallo laws.
Ernest Gallo later helped raise $100,000 in a matter of days for a fundraising event for President Clinton, making it clear once again that he's willing to hop to the other side of the aisle whenever necessary. In this case it was apparently necessary because the U.S. was considering increasing Chilean wine imports. The fundraising effort--as well as additional contributions over the years to Senator Dole (who had become the Senate majority leader), foundations he supports, and his PAC totaling more than $1 million--apparently worked. Not only did Congress delay action to increase Chilean wine imports, but it increased funding for a program that gave Gallo millions of dollars to promote its wines overseas.
So, Bob, we see again that money is the grease that keeps the wine presses operating. I don't know about you, but after all this politics, I could use . . . well, normally I'd say a glass of wine, but right now I'd prefer some less sullied beverage. You think politicians get contributions from the makers of lemonade?
--SDSTAFF VegStraight Dope Science Advisory Board
Tuesday, April 10, 2007
Sunday, April 08, 2007
Photographs -- The Healdsburg Museum & Historical Society
Subject: Re: Information Request: Historical Photographs of the Italian-Swiss Colony, Asti, CA
From: "Daniel Murley" healdsburgmuseum@sbcglobal.net
Date: Mon, March 26, 2007, 8:36 pm
Greetings Simone,
We at the Museum do have many photographic images of the wine industry and some of Italian Swiss Colony.
The number is prohibitive to send you all.
If you could check our website: http://www.healdsburgmuseum.org/ there are some examples. You could also be specific in topical representaion in the images ie. picking, crushing, buildings, people, equipment etc ?
I look forward to hearing from you and hopefully we can supply you with the images you need.
Sincerely,
Daniel
Daniel F. Murley
Curator
The Healdsburg Museum
Healdsburg, CA 95448
(707) 431-3325
Simone Cinotto wrote:
Dear Sirs/Madams,The writer is an Italian historian teaching at the Universities of Turin, and specializing in Italian American Studies. My complete vita with publications is online at http://simonecinotto-cv.blogspot.com/
My current research project is an exploration of the presence of Italian immigrants in California's winemaking before and after Prohibition. I am especially interested in detailing the function of ethnicity in the labor and entrepreneurial experiences of Italian American winemakers. The project has been funded by the local administration of Piedmont (the wine region in the Italian northwest) and its end result will be a book published in both Italian and English.
I spent the whole month of December 2006 doing research in California, visting libraries and archives such as the Bancroft Library of UC at Berkeley, the Shields Library of UC at Davis, the San Francisco Public Library, the Sonoma County Regional Library at Healdsburg, the University Library of California State Polytechnic University, Pomona, and the Charles E. Young Research Library of UCLA. Unfortunately, during my stay, I was unable to visit the Healdsburg Museum & Historical Society. Now I am in the process of writing the book.
The purpose of this letter is the following: we wish to include a photographic section into the book. We have a modest amount of funds we can devote to cover the expenses of reproduction and, if applicable, rights or other fees. Since the book will deal at length with the case study of the Italian Swiss Colony at Asti, we would be very much interested in including photographs documenting work and everyday life at the Colony, in particular from the period between its foundation (1881) and the early 1920s.
Since I learnt the photographic collections at The Healdsburg Museum & Historical Society contain photos of many northern Sonoma County wineries, we would much appreciate if you may provide us with any relevant information re the possibility to order reproductions of photographs of the Italian-Swiss Colony and publish them into my book.
Needless to say, I will be more than glad to provide any further information you may want to receive on my book, its intended audience, and projected uses.
I will be looking forward to hearing from you soon. Thank you for your attention.
Best regards,
Simone Cinotto
From: "Daniel Murley" healdsburgmuseum@sbcglobal.net
Date: Mon, March 26, 2007, 8:36 pm
Greetings Simone,
We at the Museum do have many photographic images of the wine industry and some of Italian Swiss Colony.
The number is prohibitive to send you all.
If you could check our website: http://www.healdsburgmuseum.org/ there are some examples. You could also be specific in topical representaion in the images ie. picking, crushing, buildings, people, equipment etc ?
I look forward to hearing from you and hopefully we can supply you with the images you need.
Sincerely,
Daniel
Daniel F. Murley
Curator
The Healdsburg Museum
Healdsburg, CA 95448
(707) 431-3325
Simone Cinotto
Dear Sirs/Madams,The writer is an Italian historian teaching at the Universities of Turin, and specializing in Italian American Studies. My complete vita with publications is online at http://simonecinotto-cv.blogspot.com/
My current research project is an exploration of the presence of Italian immigrants in California's winemaking before and after Prohibition. I am especially interested in detailing the function of ethnicity in the labor and entrepreneurial experiences of Italian American winemakers. The project has been funded by the local administration of Piedmont (the wine region in the Italian northwest) and its end result will be a book published in both Italian and English.
I spent the whole month of December 2006 doing research in California, visting libraries and archives such as the Bancroft Library of UC at Berkeley, the Shields Library of UC at Davis, the San Francisco Public Library, the Sonoma County Regional Library at Healdsburg, the University Library of California State Polytechnic University, Pomona, and the Charles E. Young Research Library of UCLA. Unfortunately, during my stay, I was unable to visit the Healdsburg Museum & Historical Society. Now I am in the process of writing the book.
The purpose of this letter is the following: we wish to include a photographic section into the book. We have a modest amount of funds we can devote to cover the expenses of reproduction and, if applicable, rights or other fees. Since the book will deal at length with the case study of the Italian Swiss Colony at Asti, we would be very much interested in including photographs documenting work and everyday life at the Colony, in particular from the period between its foundation (1881) and the early 1920s.
Since I learnt the photographic collections at The Healdsburg Museum & Historical Society contain photos of many northern Sonoma County wineries, we would much appreciate if you may provide us with any relevant information re the possibility to order reproductions of photographs of the Italian-Swiss Colony and publish them into my book.
Needless to say, I will be more than glad to provide any further information you may want to receive on my book, its intended audience, and projected uses.
I will be looking forward to hearing from you soon. Thank you for your attention.
Best regards,
Simone Cinotto
Friday, April 06, 2007
Photographs -- The San Francisco Museum and Historical Society
Thu, April 5, 2007, 11:39 pm
Subject: RE: Information Request: Historical Photographs of the Italian-Swiss Colony, Asti, CA
From: "danika mckenna"
Dear Ms. Cinotto:
Thank you for your inquiry. Currently, the San Francisco Museum and Historical Society is planning for the new Museum of San Francisco to be located in the Old Mint building (opening tentatively scheduled for late 2010). Unfortunately, we do not have our research staff and facilities yet in place and are therefore unable to provide you with much assistance regarding your request. Our very limited collection is not publicly accessible at this time and I have found no reference to the photograph collection you have described below in our archives.
The San Francisco Public Library can offer some resources to you regarding research and/or exhibit partnerships. The telephone number for the Public History room is (415) 557-4567 and their website is http://www.sfpl.org/librarylocations/sfhistory.htm. Or you can re-reference the additional resource section of our website for other organizations which may be of assistance http://www.sfhistory.org/index.php?pageid=44.
Good luck!
Sincerely,
Danika McKenna
Deputy Executive Director
San Francisco Museum and Historical Society
---------- Forwarded message ----------
From: Simone Cinotto <simone.cinotto@unito.it>
Date: Mar 26, 2007 3:13 AM
Subject: Information Request: Historical Photographs of the Italian-Swiss Colony, Asti, CA
To: info@sfhistory.org
Dear Sirs/Madams,The writer is an Italian historian teaching at the Universities of Turin, and specializing in Italian American Studies. My complete vita withpublications is online at http://simonecinotto-cv.blogspot.com/
My current research project is an exploration of the presence of Italian immigrants in California's winemaking before and after Prohibition. I am especially interested in detailing the function of ethnicity in the labor and entrepreneurial experiences of Italian American winemakers. The project has been funded by the local administration of Piedmont (the wine region in the Italian northwest) and its end result will be a book published in both Italian and English.
I spent the whole month of December 2006 doing research in California, visting libraries and archives such as the Bancroft Library of UC at Berkeley, the Shields Library of UC at Davis, the San Francisco Public Library, the Sonoma County Regional Library at Healdsburg, the University Library of California State Polytechnic University, Pomona, and the Charles E. Young Research Library of UCLA. Unfortunately, during my stay, I was unable to visit the San Francisco Historical Society. Now I am in the process of writing the book.
The purpose of this letter is the following: we wish to include aphotographic section into the book. We have a modest amount of funds we candevote to cover the expenses of reproduction and, if applicable, rights or other fees. Since the book will deal at length with the case study of the Italian Swiss Colony at Asti, we would be very much interested in including photographs documenting work and everyday life at the Colony, in particular from the period between its foundation (1881) and the early 1920s.
My sense is that the Alfreda Cullinan Collection at the San Francisco Historical Society is the richest repository of photographs on the early days of the the Italian Swiss Colony, including portrays of some of the most influential protagonists of its early development.
I got this impression from publications such as the reprint of the autobiography of the Colony's founder, Andrea Sbarboro, on the special issue, n. 2, Vol. 7, Winter1996-1997, of "The Argonaut" and from Jack Florence's book, "Legacy of aVillage: The Italian Swiss Colony Winery and the People of Asti, California."
Therefore, we would much appreciate if you may provide us with any relevantinformation re the possibility to get reproductions of photographs in the Alfreda Cullinan Collection--or any other photographs regarding the Italian-Swiss Colony--from the SFHS and publish them into my book.
Needless to say, I will be more than glad to provide any further information you may want to receive on my book, its intended audience, and projected uses.
I will be looking forward to hearing from you soon. Thank you for your attention.
Best regards,
Simone Cinotto
Subject: RE: Information Request: Historical Photographs of the Italian-Swiss Colony, Asti, CA
From: "danika mckenna"
Dear Ms. Cinotto:
Thank you for your inquiry. Currently, the San Francisco Museum and Historical Society is planning for the new Museum of San Francisco to be located in the Old Mint building (opening tentatively scheduled for late 2010). Unfortunately, we do not have our research staff and facilities yet in place and are therefore unable to provide you with much assistance regarding your request. Our very limited collection is not publicly accessible at this time and I have found no reference to the photograph collection you have described below in our archives.
The San Francisco Public Library can offer some resources to you regarding research and/or exhibit partnerships. The telephone number for the Public History room is (415) 557-4567 and their website is http://www.sfpl.org/librarylocations/sfhistory.htm. Or you can re-reference the additional resource section of our website for other organizations which may be of assistance http://www.sfhistory.org/index.php?pageid=44.
Good luck!
Sincerely,
Danika McKenna
Deputy Executive Director
San Francisco Museum and Historical Society
---------- Forwarded message ----------
From: Simone Cinotto <simone.cinotto@unito.it>
Date: Mar 26, 2007 3:13 AM
Subject: Information Request: Historical Photographs of the Italian-Swiss Colony, Asti, CA
To: info@sfhistory.org
Dear Sirs/Madams,The writer is an Italian historian teaching at the Universities of Turin, and specializing in Italian American Studies. My complete vita withpublications is online at http://simonecinotto-cv.blogspot.com/
My current research project is an exploration of the presence of Italian immigrants in California's winemaking before and after Prohibition. I am especially interested in detailing the function of ethnicity in the labor and entrepreneurial experiences of Italian American winemakers. The project has been funded by the local administration of Piedmont (the wine region in the Italian northwest) and its end result will be a book published in both Italian and English.
I spent the whole month of December 2006 doing research in California, visting libraries and archives such as the Bancroft Library of UC at Berkeley, the Shields Library of UC at Davis, the San Francisco Public Library, the Sonoma County Regional Library at Healdsburg, the University Library of California State Polytechnic University, Pomona, and the Charles E. Young Research Library of UCLA. Unfortunately, during my stay, I was unable to visit the San Francisco Historical Society. Now I am in the process of writing the book.
The purpose of this letter is the following: we wish to include aphotographic section into the book. We have a modest amount of funds we candevote to cover the expenses of reproduction and, if applicable, rights or other fees. Since the book will deal at length with the case study of the Italian Swiss Colony at Asti, we would be very much interested in including photographs documenting work and everyday life at the Colony, in particular from the period between its foundation (1881) and the early 1920s.
My sense is that the Alfreda Cullinan Collection at the San Francisco Historical Society is the richest repository of photographs on the early days of the the Italian Swiss Colony, including portrays of some of the most influential protagonists of its early development.
I got this impression from publications such as the reprint of the autobiography of the Colony's founder, Andrea Sbarboro, on the special issue, n. 2, Vol. 7, Winter1996-1997, of "The Argonaut" and from Jack Florence's book, "Legacy of aVillage: The Italian Swiss Colony Winery and the People of Asti, California."
Therefore, we would much appreciate if you may provide us with any relevantinformation re the possibility to get reproductions of photographs in the Alfreda Cullinan Collection--or any other photographs regarding the Italian-Swiss Colony--from the SFHS and publish them into my book.
Needless to say, I will be more than glad to provide any further information you may want to receive on my book, its intended audience, and projected uses.
I will be looking forward to hearing from you soon. Thank you for your attention.
Best regards,
Simone Cinotto
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