The people's voice. [volume] (Helena, Mont.) 1939-1969, 1945-11-09

The co-operatives of the region cer
tering in ST. Paul show signs of II
tensifying their fight against the ia
program of the National Tax Equa
ity association. Led by Minneapoli
grain interests, that association is pre-
noting national and state Legislation
to apply corporation profits taxes t,
the savings of cooperative buying ant
selling organizations.
The co-operatives have an excellen
case in opposition, and increased ag
gressiveness in getting that case be
fore the public is well justified. This
is true despite the fact that the anti
Roadway in congress; in one state
(Kansas) was thrown out just one
day after lawmakers heard from the
farmers; and in other state legisla
lures has met defeat.
Thus far, the success of the Nation
al Tax Equality association has not
been in getting legislation but in SOW
ing suspicion and fear of the cooper
atives among town and city people.
Today, arguments of the NTEA are
being repeated by surprising numbers
of sincere and reasonable business
and professional men whose opinions
would be very different if they were
only being supplied with more of the
facts. Unless those facts become
widely known and understood among
non-farming people, the i'll will that
is being fomented Systematically by
grain dealers will create dangerous
cleavages that will harm cooperative
institutions of great value. What
are the arguments and the facts in
the case?
One story being spread most clever
ly is that the co-operatives are tax
dodgers. The facts are that they pay
local property taxes, excise taxes,
transportation taxes on shipments of
grain, butter, livestock and supplies,
social security and unemployment in
surance taxes,-stamps taxes, use taxes,
import taxes and whatever other COM
modify taxes any business pays. A
million dollars a year probably would
not cover the taxes that Minnesota
co-operatives pay.
Another story, which is the founda-
ton of the NTEA taxation campaign
is that the savings of co-operatives
are on all tours with the profits of
corporations and, as such, should be
subject to corporation taxes. The
facts are that the Bureau of Internal
Revenue, which is famous for ferret
ing out all justifiable sources of tax
money, has ruled that such savings
are not profits, but represent a part
of the price at which the cooperative
buys or sells to members and which
is refunded to them as patronage divi-
dends or as a share in the co-opera-
tives' handling facilities.
A variation of the foregoing line of
American and represent a drift to-
ward state socialism that should be
stopped. What is the truth? A group
of farmers, availing themselves of
rights guaranteed to all Americans,
get together on plan to maintain
their own butter, livestock, poultry
or grain, to reap the benefits in the
form of the best prices they can get |
and distribute all those benefits in
some form among themselves. Or a |
group of consumers, using the same
rights, agree to buy or make the
goods they need as cheaply as they
can and distribute the lower price
benefits to their members. That does
not look like state socialism In fact,
it seems to be just about the essence |
of democracy and free enterprise. The |
truth is that Americas most outstand-
ing conservatives, including Herbert |
Hoover, have championed the cooper
alive movement. Repeatedly in the
past, that movement, especially when
it was young and unimpressive, has
been held up as the truly American
way of off-setting radical or socialis-
tic movements, in which the McNary-
Haugen bill of the 192O's and the AAA
more recently have been often
classed.
During the war, the pco-operatives
nave grown economically and have
made a great contribution toward vic
DRY. That growth is in itself an
lmazing story and proof of useful
less. Land O'Lakes Creameries, Inc,
low operates in Is states and in
ear handles upwards of 267 million
POUNDS of products worth more than
0 million dollars. The Twin City
Iilk Producers association sells more
han 600 million pounds of milk
ear. In 1914, the Central Co-opera.