The people's voice. [volume] (Helena, Mont.) 1939-1969, 1947-01-31

taxes IN manner similar TO corpora
lions, partnerships and individual pro-
prietorships. In the payment of state
taxes, co-ops, as a general rule, pay
more taxes than do other forms of
business enterprise.
Fourth. A federal agency study on
the amount of taxes actually paid by
co-ops found that generally speaking
larger proportion of co-ops than pri-
vate businesses of other types paid
the three important taxes of social Sc
curity, federal income, and property
taxes.
Fifth. Dun e Bradstreet reports that
six out of every 10 retailers pay no
federal income tax because they Oper-
ate without profit or in loss position,
Thus, as far as tax exemption is con-
cerned, these same retailers may be
considered as serious a threat as So
called tax-free enterprises. Sales and
excise taxes paid by co-ops normally
exceed those of private business of
other types by extremely wide mar
gins.
Sixth. AS to the argument that co-ops
are subsidized by the federal govern
ment, the government did, through the
Department of Agriculture, establish
the Bank for Co-operatives and the
government did invest SITS, 100000 in
the capital stock of these banks. These
banks, however, are self-supporting in
that each pays, from it's own revenues
it's own operating expenses, its exam
ination costs and its share of the sup
ervisory costs of the Farm Credit Adj
miniStratiOn.
Seventh. Only exempt farm co-ops
are eligible to borrow money from
the Bank for Co-operatives, thus less
than one-seventh of all existing co-ops
in the country have access to any fed
eral funds.
Eighth. On the other hand, private
business of other types has had bill
lions of dollars of federal funds made
available for it's use through RFC,
HOLC, and many other federal agen-
cies. If anything, it may be alleged
that co-ops are in an unfavorable posi-
ton in relation to other types of priv
ate business with respect to access to
governmental and other capital sour
ces.
Ninth. AS to the NTEA argument
that co-ops are growing at rate ap-
preciably faster than private business
of other types, this is not supported
by study of reliable statistics. The
cold facts are that co-ops are doing
little, if any, more of the consumer
expenditure business today than they
were doing 20 years ago.
Tenth. Co-ops, as a general rule, OPP
crate at market prices. They only offer
to their members the savings which
they may effect and do this in the
form of rebates which are proportion
ate to the patronage given by the in
dividual member.
Monopoly Trend Increasing
"The growth of monopoly and con-
centration of power in certain eco
nomic fields is known even to the cas-
ual observer. 1t increased rather than
decreased during the war and the pres
ent trend toward larger units of bust
ness continues now during the recon
version period" In view of this ITO do
away with co-operatiVes would be to
do away with a real buIwark of this
democracy.
In concluding his talk to the Con-
gress, Patman emphasized the need
for Judging the subject on the basis
Of facts and mot on irrelevant and
propaganda put out by sell
fish interests who seek to drag red
lerrings across the path of equity. -. -
"Co-operatives are a truly demo-
cratic form of doing business. They
ire the only means in many cases
where the small operator, the man
who seeks to preserve his independ-
9nce in the competitive fight of today,
Continued on Page Four)