3- The doctor retreated to his office, carefully studied data that he had compiled and then returned to tell the patient of his conclusions. He said, "I am happy to tell you that you need have no further worry about having an inferiority complex. From my examination I have concluded that you are in fact inferior". This is the converse of our problems in the bay area. Our area will grow because it has advantages which have a strong appeal to people as well as to commerce and industry. The rapid trend in population growth which has taken place in recent years in California will be accelerated in the years to come, for our population has now reached the point that it has set in motion additional factors which underwrite the growth at an even more rapid rate. The first of these factors is that the Pacific Coast area has now become a major market that can no longer be serviced effectively or economically in the case of many products by firms whose production facilities are located in the East and middle West. The rising cost of transportation is the second major factor which has contributed to the decentralization of industrial and commercial activity. The third major factor is the growing trend on the part of large corporations to decentralize their management and to operate more efficiently by placing control in the hands of area executives rather than retaining control in centralized headquarters. These three factors - mass markets - high transportation costs, and the need for decentralized management - taken together have made it increasingly desirable to establish manufacturing and distribution facilities on the west coast in order to serve the western part of the United States and the export market in the Pacific more efficiently and more profitably. Many major firms have already taken this step,