Milford chronicle. [volume] (Milford, Del.) 1878-1974, 1945-11-09
Southern States
Delegates Meet

approximately GOO farm people.
delegates from the membership of
Southern States Cooperative in
Maryland. Delaware. Virginia. West
Virginia, and Kentucky. attended
the twcnty-Sccond annual meeting
of the organization ut the Lord Bal
timorc Hotel, Baltimore. on Thurs
day, November |.
The asscmhla2c heard General
Manager W. c. WySor Richmond.
Va, announce in his annual report
that the cooperative will spend Il
little over $1,000 .o0n i'm fixed assets
during the next two years i'm the
conduct of its postwar expansion
program. or This amount. - 600
600 has been allocatcd for a new
and modern feed mill in Baltimore
which will have capacity of 400
GOO tons of poultry and dairy feed
year, thus doubling the capacity
of the present feed mill in Ralti-
moro. The cooperative is also plan
ming to increase its marketing ser
vices and to establish additional
frozen food locker plants Volume
in marketing. which was $2500.-
600 last year. is expected to reach
$500 600 this year
Mr. Wysor stated that by vote
of the membership OF local advis-
DRY boards and boards of directors
throughout the territory. the coop
crativc's net savings Of $l,3l2.-
2il.63 for The fiscal year ended
June 80. We're disposed OF as fol
lows: Dividends ON outstanding
capital stock. sos. G531N: incrcas-
ing reserve for sclf-nsurancc,
500 GOO. increasing reserves for
working capital $lG@,0oo, and pay
mcnt of PATRONAGE refunds. 500,
5SA.l5. With the net worth at a
new high of SSG1N127 So. each
member has an equity Of little
less than 500 in the organization.
Following Mr.. Wysor on the pro
glam WAS O. f. Xacharias. Jr.. OF
Richmond Va. treasurer. who stat
ed that assets owned by the coop
cratiVc were more than $4,000 600
rs of June 80. Approximately 81
per cent OF this amount was in OPP
Grating capital. consisting OF cash
advances to affiliated coOpcratiVcS.
and investments in rcccivablcs and
merchandise inventories. OF the
total capital now used by Southern
States. about 80 per cent is invested
in fixed assets land. feed mills.
fertilizer plants. seed and farm
supply warehouses. marketing ia
cilitics. office buildings, and other
equipment.
THE working capital Of South
ern States Cooperative tcXccss OF
current assets over current liabil-
itieS) tOtalcd S4646.33G2 as of June
30" Mr. Zacharias said. "On tn,
same date the association haG
$685. of current assets for each 81
of current debt. or Il working cap
ital ratio of 5.53 To /"
The speaker stated that South
crn States has served farmers wei
in the past but that it has Il mucl
larger task ahead OF it in the year:
to come ~ real service orGani
cation cannot and must not he sat
itsficd as long as its members ncct
and want assistance in their farm
production and marketing opera
tons" He pointed out that the eA
sary to increase the quantity o
present services and to render i'm
p0rtant new services will rcQuir
an additional twelve million dollar
of capital About half of thi
amount must be invested in fiXC
assets mills. plants. warehouses
and machinery and the balance /
operating capital
President Harry II. Nuttlc. Den
ton. Md made the address of we
come and presided during the da
That patronage refunds do ne
constitute income to a COOpcratiN
WAS pointed out by Karl ID. Loo
Washington. h. c.. chairman OF II
legal and tax committee Of the y
tional Council of Farmers COopc
ativrs. in an address on The Tru
About Taxation OF Farm Cooper
tivcS" When such refunds are pa
pursuant to a cOntraCtual OblG
ton. they are not al any time |
come to the cooperative, he G
planned They are rebates or |
turns which the cooperative is q
ligatcd To make TO the patron; co
SCqucntlv they cannot belong 10 t
cooperative and are not subject
income tax while they are in t
COOpCratiVC'S hands.
"EXcmptiOn from Federal ta>
ton entails certain diSadVanta2
which tend to offset whatever I
vantagcS may exist" Mr.. LoOS sa
ITO quality for Federal tax CXen
ton Il cooperative must need G.
tain restrictions and requirement
Vice President G. :. Graybcal.
ChriStiauShUrg. Va. reviewed 50
of the major actions of the ho;
of directors during the past yc
chief among which were the
lowing: Authorized the cnlar
mcnt and improvement of the {
cinnati feed mill at Il cost OF
proXimatcly 81 .00o.ooo. purchase
the Richmond NaD Trust build
as headquarters for the cent
office employees at Il cost of So
0o0 and improvements OF Hlo"'
the opening of Il new WhoirS
seed and farm supply warehouse
LOuiSVillc Ky. and the CNpcndlt
of $40. 900 To construct a new
tilizcr plant TO serve kcntun'
The board also authorized the
adjustment of up TO hund
mechanical service ccntcrS To |
form for patrons upkccp ana mi
tcnancc services ON milking
chimes. water systems, hom" 1r'
crs. and similar equipment;