The people's voice. [volume] (Helena, Mont.) 1939-1969, 1947-01-31
Here Is Proof
CONTINUED from Page one)

handicraft will be as enduring"
In this last sentence Mr.. Wallace
was referring not to co-operatives TAX
ing over the state but to the state as
whole adapting itself to the newt
able changes of social and political
| life
TEAM. Has Asked For Checks, Too!
Speaking further of the unscrupu-
lous methods of the NTEA (foster-par-
ent of the TEA.M.) Patman said:
'In like manner, 1JTEA issues it's
propaganda criticizing the small bust
ness committees report in question,
With scare headlines and propaganda
in rainbow hue, NTEA has written to
various associations of small mer-
chants located in all parts of the cOun-
try telling them that the House small
business committee has acted to OPP
pose the interests of small business in
it's report. No copies of the report ac-
company the propaganda. No state
ment of what the report actually says
is given to these small merchants and
their trade associations. Instead they
are asked to contribute cash or checks
to NTEA to carry on its work on be-
half of small business"
Real Purpose Behind Attack on
Co-operatives
Of course, the real purpose behind
this attack on the co-ops is to weaken
or stamp out the movement altogeth-
er and stems primarily from a group
of wealthy grain commission mer-
chants, headed by Ben McCabe of st.
Paul, who are smarting under the
growth of the Farmers Union Grain
Terminal association. The FUGTA
during recent years has grown to such
size that the swivel chair boys of
the Twin Cities no longer have COM
plete control of the manipulating of
prices on the grain and allied markets
This has resulted in millions of saw
ings for coop and non coop farmers
alike, and similar millions of losses
to the commission men who in former
years waxed fat on the toll of the
farmers of the Northwest.
Besides the continuous campaign of
villification and Justification carried
on by the commission mems 'front''
the NTEA and affiliates, the issue of
taxes paid by co-ops has been clearly
injected into the confused picture.
Findings of the Patman committee
after a year-long study, do not bear
out the fallacious contentious of NTEA
propaganda. Here are the committees
findings as reported by Rep. Patman:
Here's What the Committee Found
"The committee has had the ques-
ton of tax exemption of 1co-operatives
as an alleged threat to small business
under investigation for more than a
year. Here are some of the things we
found out:
"First: There are some $4,000 coop
erative enterprises in the United
States, most of which operate under
the same laws that are applicable to
the operation of sole proprietorships,
and corporations. Section
l01 (12) of the Internal Revenue Code
provides that certain types of farm
co-operatives can qualify as exempt |
co-operatives provided they operate |
n the manner prescribed and confine !
themselves to the activities outlined, |
and handle their funds according to
he provisions of the regulation.
Second. There are approximately |
-0,S00 farm co-ops which might qualify
is exempt co-ops. Of this group, how
ever, only 81 per cent have elected to
30 qualify The others have apparently
cit that the disadvantages of operat-
ng under code restrictions more than
any nebulous advantage
hey could receive by being exempt.
Third. The exempt coop is exempted
from the payment of taxes
N earnings which are allocated to the
,ayment of interest on acapital stock