Evening star., 1947-08-27
Greenbelt's Co-operatives
They Are Doing Growing Business and Plan Early
Expansion, Despite Opposition
Rp Lambo IL.
By Malcolm Lamborne, Jr.


they are regarded as a reduction In prices of
goods purchased. He cites a somewhat SINH
lar plan in operation In a large New York de-
ment store, which makes per cent return
for all purchases over 500 to holders of charge
accounts.
GCs pays the-same taxes as any corpora
tion, Mr. Aren't explains The Federal tax on
the first $1,000 of net income is 81 per cent.
It increases to a maximum of SO per cent
above $4,000 Of income.
Many farmer co-operatives are exempt by
law, from Federal taxes imposed on straight
profit-making enterprises. This does not hold
true for consumer co-operatives, however.
Pay Federal Taxes.
Taxes of all types, including Federal and
State, paid by the coop in 1s46 amounted to
$l2,64505. The coop pays the Government
a minimum rent for use of buildings and also
percentage of profits. This amounted to
$48,225 In 1916 and, according to Mr. Ashelman,
it will top 100000 this year. The Government
takes 2 per cent of gross sales in the food
store per cent in the drugstore, 10 per cent
in the beauty and barber shops and Is per
cent in the theater in addition to taxes.
After negotiations with the Federal Public
Housing Authority (now Public Housing Ad-
the agency on its new shopping center con-
struction of which has already begun. The
Government turned down proposal for the
coop to buy the land but will rent it. In ad-
dition, GCS agreed to pay for erection of the
facility, estimated to cost $500 900.
The Government will hold title to the facil-
ity and continue to receive percentage of the
profits on existing stores.
There was considerable debate in last weeks
hearings of the House committee. on whether
the coop food prices are higher than chain
store prices. Coop leaders maintain they can
better outside prices on some items but fail to
meet them on others. In the long run, it wsuld
appear that when the 25 per cent rebate is
deducted. prices are about the same.
Prices Of Food Compared
Here are some comparisons (f1rst price given
Is for the coop and the second for a local
chain store):
Chuck roast, IS cents pound at both places;
calfs liver, TO cents and SO cents; sirloin and
porterhouse steaks, SO cents and SO cents a
pound; butter. IS cents and 81 cents
pound; eggs. both 70 cents dozen for large
grade A; canned grapefruit and orange juice
combination, rs cents and 10 cents; canned
peaches in heavy sirup, 33scents and 70 cents;
bleaching fluid, n cents and II eentssa
The <barbershop charges rs cents for adults
as against the going rate of 81 in washington
and the movie charge is 20 cents toraadlilts and
"a cents for children. The theater has 81 special
Saturday matinee for Greenbelt's younger set
that costs 18 cents, including tax.
The House subcommittee Notwithstanding,
the coop is going ahead with plans for q
renewed drive for additional funds for its
shopping center this fall
No commercial competition within Greenbelt
is permitted and the House committees sug-
gestion that private enterprise be given oppor-
tunity to compete on even terms is not apt
to be accepted