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Show 4 Friday, February UTAH VALLEY NEWS 8, 1945 k Anderson in Strong Talk For s 3 t: Co-op- Secretary of Agriculture Declares Purpose is Service. LEGAL WHAT IS A FAUM? UK HIT STRESSED legal status and lax posiBluntly upholding the uf Agriculture Clinton 1 tion of ccxiporali'. is, Sem-larAnderson, shaking ai the annual meeting of the National Council of Farmer tuojierutives, Chicago, January U, de- dared that large corporations prohahly would have taken over as much of agriculture as they have of other parts of our economy," if it had not been for the growth of coopera-- 1 tives and government encouragement of family tyjie farms Farmers and other small ing with the largo chains, hsva their cooperative retail could businessmen compete grocery chains which operate the economic against giants" warehouses and represent only by becoming just as effitheir members in spending cient as the large operators their pooled purchasing powwere the er, obtaining ceriot rates, and cooperatives farmers' best answer to lurge and merchandise of high quality, beyond tho ability of "Cooperatives," business. the individual retailer. Thera added Anderson Secretary "are the very essence of free aro many mutual enterprise. They are groups drug stores, which are owned of independent farmers bandIndependent hy cooperating ed together to do some job druggists who have formed that is too big for them as organisations warehouses end to exoreleo individuals. definite atanderds in buying. Thus, when you strip cooperation to its fundamental We dont ordinarily think of it as such, but one of tho most elements, the story Is a simple one. It reveals at once the oxtensivo of our agencies, tho Assoiated reason for the legal rights of cooperatives. It is this basic Press, is nothing more or lose than a cooperative of newsobjective of farm cooperatives that has caused congress and papers bringing to ita memthe courts to recognize gen- bers newa that no individual publication could gather by erally and in specific legislaits own effort. tion. and to affirm repeatedly the right of farmers to orThere is no doubt about it. ganize cooperatives, and the the cooperative technique la a public welfare obligations of part of the American way of cooperatives. life. It is as much a part of agri"Shorn of all technicalities, culture as is the family type of It Is this basic purpose that farm, and the two are depenfrees cooperatives from in- dent on each other. come taxes, if they return to members and patrons the savImpersonal Ownership ings they may be able to make We definitely dont want our in the transaction of business farms to become factorfor their members and pa- ies, owned by impersonal trons. Obviously, such returns stockholders and operated by are part of the income of the hired managers and hired workindividual the ers, with success or failure enterprise fanner and such are subject measured entirely by dollars to taxes as part of his Income. and cents figures In company "Outstanding and simple as ledgers. To allow our machines that fact is. It has often been and our impetus toward bigoverlooked. It should be made ness to bring that about would clear that the, fanner in this be to take the American spirit respect is in exactly the same out of farming; it would mean as the independent relinquishing the solid values of position businessban or partner; he pays farm life that we have prized on his income, including any highly since the first settlers savings he receives through put the plow to the fresh soil of cooperative action. the continent. "Also, it should he made enThe farm cooperative must tirely clear that cooperatives play an Increasingly important are not entirely free from tax- part in farm life and farm busi-ation that while they may not ness, if we are to maintain and pay income taxes they do pay Improve the family farm, if we their share of nnl estate, toeinl are to adapt It to the security, and other taxes Just economy into which wo as do most businesses which are speeding. are operated for prom. "Farmers' cooperatives have Dramatic Story been in the forefront in exI believe, too. that we in perimenting with and en agriculture need to do a more couraging better grading, aggressive Job of informing the packing, and other means of public of the mnny improveassuring tho housewife that ments and benefits tlint have sho ia getting her money' come to consumers through the worth when she buys grocerformer's cooperatives. That alies. In the purchasing field so is a simple siory In ifs escooperatives have led the way sentials better food, brought toward known standards, efto the Amerirnn family at the ficient products for the farmlowest possible rost! Tt Is a er at the lowest possible cost, drnmatie story of new and betand In many cases the methter products for the American ods they have developed dinner table of new processes have spread, like ripples milrker hnndling. fresher food from a stone thrown in a reduced costs and margins. It pool, throughout our merchIs a part of the storv of andising system. Such things s open better nutrition and henlih for formula feeds our families. where the buyer knows ex- telly what he is buying-hi- gh "Diversified cooperative acanalysis fertiliser, and tivity Is by no means conseeds of known origin and fined to agriculture alone. germination, have been pioBusiness, too. has developed neered by cooperatives. many forms of cooperation and many apoclfie cooperativEliminate Abuses es which operate almost have fought Cooperatives like farmers' cooperativ- without letup to eliminate es and which are taken for marketing abuses, to break granted. There has been a down monopoly, and to imstrong trend running in small plement the public's right to business to meet the compeknow what it is buying. Cooptition of big business by comerative have organizations bining into cooperative organsought to spread useful informaizations; thus obtaining the tion; they have worked closely advantages of massed buying with the research staffs of the Land Grant Colleges and the power and while U. S. Department of Agriculretaining Individual Thousands of In--. ture to bring to their patrons ownership. dependent retailers, whole-- ' and members the benefits of aalers. . manufacturers, and the latest scientific discoveries service firms have formed and the most specl- purchasing, marketing, ad- fications. And finally, farm vertising or credit cooperacooperatives can look back with tives. It Is interesting to honest pride on the service note. In passing, max tnosa they gave to the fanners and cooperatives, returning their to the public during the war. when they played sn importsavings to the individual enant part in processing and terpriser and to his customers. have ao Income of lhoir marketing the capacity producown. and hencs aro free of In tion of our forms, and in findcome taxes, although they ing and distributing fertilizer, are subject to other taxes feed, fuel, machinery and other common to most typos of supplies so essential for conbusiness. tinued high production. That was service, not Just to their "You can so those business around you. members, but to the United ' cooperatives all States in time of war. V Independent grocers, compet WHAT IS MOUNT A LAKE DUES MO UNA A LAKE l'AY TAXES? WHAT IS A FAUM 7 hat a silly question, someone will say, "Everybody knows what a farm is. But, do they? Definitions of a farm run all the way from a place where a man can make a living when he cant make one anywhere else to the modern conception that a farm is a factory for the production of food and other proW ducts. It A farm is a factory for production of food and other products. How simple that statement ia but how few people really think of a farm as such and realize its economic implications. But, it is just that. It is not just a trade or an occupation, as some people, including many farmers, think. It is much more than that. A farm requires a combination of capital, brawn and brains, with particular emphasis on brains, if the farmer is to be suc- , j I tooporato news-gatherin- g cessful. Elements of land, air and water mixed with sunshine are brought together with the skill and labor of the farmer and his employees and the output is food or other raw materials for clothing and other articles used by modern man. The farm factory is mother earth. The farmer is the manager and at times he is the only employee in addition to members of his family. He has a large Investment in land, water, raw materials and equipment, many times larger in many Instances, than most business houses in his community. Many farmers also employ large numbers of employees. In every sense of the word, a farm is an industrial business. It is a big business in the midst of the world's biggest enterprises. It is trite but true, that without the farm factories, the world could not aoul-lcs- s live at all. While a farm is actually a food factory, most farmers have not adopted one sound business policy that factories in other lines have been compelled to adopt to survive. That is one of the reasons why so many farmers have failed. And that very important policy is: All factories und industries buy their raw materials, in fact, supplies of all kinds, at wholesale prices. Farmers, for the most part, Jiave been buying their supplies at retail, little dabs here and there. On the other hand, like all factories, farmers sell their output at wholesale. 1 d Itctail buying and wholesale selling just in success or in any dont spell any language business. - not in this modern world of intense competition. Such a policy is ruinous. i xe-act- iy te is the last mentioned definition we want to talk about d high-powere- 7 This fact is just la'ginning to dawn upon fanners. They have been asking themselves this question, What , factory could possibly succeed if it had to go to a retail store to buy the tools with which to operate. For instance, would the Purity Biscuit Company of Salt Lake go to a retail grocery store on Main Street to buy sugar, salt, flour and other ingredients, needed to produce its biscuits? Or would a candy factory buy ita sugar, cream, flavors, packages, etc. at a retail store? These questions answer themselves. Industries do not buy and have not lxmght their supplies at retail. Industries have wholesale nuirkcts at their command and when they are small they have been wise enough to combine their purchasing power with like industries in purchasing organizations, and thus take advantage of mass buying. Remember it's volume that counts. You must have it to get lower costs. To succeed, farm factories must adopt the same principle. That fact is looming larger than ever in the farmers plans fer the future. WHAT IS MOUNT A LAKE? 1 This question naturally follows the first discus-- . sion. Mount A Lake is on association organized by farmers in the Sharon area to buy supplies for their farm factories. It is the purchasing department of these farm factories. Members of this association have found in past depression years that they were unable, because of the limited amount of their purchases, to buy at ns low a price qs they should in order to make their business a financial success, consequently their move to combine their mass buying power in one unit, which is in effect the purchasing agent for all of these farms. Therefore they organized Mount A Lake. With its big volume of business the naturally gets wholesale prices, and the volump the lower the prices. It, of course, pense of doing business which must be paid Association bigger the has the exby those for whose benefit it is ojk. rated. This expense is charged Anything against the members of the Association. saved over and above this expense is the property of the individual members f the Association. This saving never at any time belongs to the association. This is provided for in the articles of incorporation which is the contract Ictween the members individually and the Association. If the association attempted to claim these savings as its own it would be violating its contract with its members. This saving could be returned to the members at the time the purchases are made and would mean an immediate lower price. But, in order to be sure that enough expense is taken out, and also as a matter of convenience, the savings made, in the purchases are held until certain stated times at which times they are turned over to the members as patronage savings, which means, in effect, lower prices to the member. This type of organization also has power to act as a selling agency for farmers. Farmers have found that they should not compete among themselves for markets which are limited and hence they hare organized selling agencies for the joint output of their farms. Examples of this type of organization are Utah Poultry Producers Association, Weber County Dairy Association, Utah Celery Growers Association, Market Association, Orem Peach Growers, Orem Berry Growers and many others. Some of these organizations also act as buying agencies on the same basis exactly as Mount A Lake operates. For instance, the Utah Poultry Producers Association does a big volume of buying of supplies for its members. Tim-panog- AT MOUNT A LAKE HAS SECURED MORE FRUIT TREES parei bou Brill conf thin view belie nom Th y To place the orders see J. Morris Bird or leave orders at the Blount A Lake Service Station just opposite the Scera Theater. BDOIU be n from (till dolla poll-- 1 Ma8fHaa:mHKHn88TOaaagaaHaaaHgiK::taHBagaat8wnCTgait:niga tbit from from neither does the Twin Mountain Cafe, but the owner BIr. Y does. In other words being privately owned, whether by one person, two persons, or 200 and no matter under what name the business operates, owners of the business pay the taxes of all kinds. And without saying so in the spirit of boasting we think we can say it simply as a statement of fact Mount A Lake owners are one of the heaviest tax paying groups in Orem City. But that isnt all of it. The buying these members have done in the past from others has not only helped pay the other fellows taxes but helped establish them economically as well. Yes, Mount A Lake and P ippe offic; Brit! ion t de nut ppr Ve Fa Lt urn Uni its owners pay taxes aftei them. They are not shirking any public tax burdens. They are carrying their fair share of the load and at the same time saving themselves some good money by their massed buying power. And friends, thats why Mount A Lake is growing. Its owners stand for the greatest good to the largest number. They have no feeling of enmity, or ill will against any person or firm. They wish all of them well, but at the same time reserve their American right to either choose their buying agent or to organize one of plenty of Mount A Lake was organized to render service in the Sharon area and is so organized that it can operate both as a buying and selling agency, with emphasis, at the present time, on buying. And. by the way, with an organization of this kind, the farmer is placing himself in the same position that many factory owners and other business men occupy. Because business men are engaged in business they can purchase at wholesale prices, not only factory supplies, but also supplies for their homes on the same basis. Wholesale organizations recognize them as eligible buyers for other items at wholesale prices because they are manufiicturers or dealers. Is there any good reason why the farm factory operator shouldnt have the same privileges? Pun inti n eigh Atla Hi fothi of Tt Fit Fll their own. NO Pi for Coop Representatives In Arkansas who Ban A telephone message was received today from President John B. Stratton, C.Maston Wentz and Charles 1L Poulsen by the Blount A Lake management from a station in Arkansas announceing that the three representatives of Blount A Lake and allied cooperatives are having a very successful trip. DOES MOUNT A LAKE PAY TAXES? We have been asked the above question. The answer is an emphatic yes. Mount A Lake pays the same taxes that any other person, firm, partnership or corporation pays, and at the same rates. In fact we believe it can be truthfully said that Mount A Lake and its owners pay more taxes than all other business houses, except utilities, in Orem combined, pay. Let us illustrate: ever t lunc T1 m out; the; wo r irtii They expect to be in Kansas City this week where they will confer with the President and Blanagement of the National Cooperative Association as well as the heads of supply organizations which manufacture products for cooperatives. These gentlemen are expected home the latter part of next week . Mount A Lake pays an Orem City license fee. Mount A Lake pays state, county, school district and city taxes on any stock it may have in its tanks or on its shelves when the county assessor makes his assess- men A $10. 00, njn; Kiw Spo Mei Cue Ota 200 2 8 er to ment. Each Member To Enroll At Least Two More Members Mount A' Lake pays rent to its landlords. Included in that rent are the taxes which are assessed against the land and buildings. Our landlords properly made the rent high enough to include the taxes and some profit for themselves besides. i the; (re the hel ing j These 200 members will pay more income taxes for 1945. not to mention all their property taxes, we venture to say, than all other owners of other business houses in Orem, except utilities, combined, will pay. Note: There are no incorporated businesses in Orem, other than utilities, except possibly three corporations, two of which only operate branches here. The business houses are mostly individually owned. The business doesn't pay the tax, but the owner in his individual capacity docs. For instance ' to use ficticious names, the XYZ Service Station doesn't pay a tax but the owner James Brown does, I The vey, of Mount A Lake has been able to get an additional supply of peach and apple trees from the mountain grown stock. We famous Porter-Walto-n have several sizes of early, standard and red EL bertas, also some Golden Jubilee and Hale Havens, In apples, we have several sizes of Jonathan, Rome Beauty and improved Red Delicious. os Mount A Lake, as has already been explained, is the purchasing department or agency for farm factories, at the present time nearly 200 of them. It is owned by these individuals as a large partnership and is as much a part of their setup as is any other department of these farm enterprizes. Any saving made by this purchasing department belongs to these owners and is taxed against them as part of their income. BRI The membership contest is going merrily on. It is difficult to say who will get the radio offered by the Utah Cooperative Wholesale. No one knows the answer. There are quite a number of members in the running in this contest. With all the employees, officers and directors of the Association barred from this contest, any lay member has a good chance of winning. FFi for Ltn ma ihi it lTn Co; inr gh elu !: so-call-ed jj jj j I A suggestion was made by one of the members that each member of the Association make himself responsible for getting two more members. If this should be done there would be no doubt whatever that the 300 mark would be reached by March 1st, the deadline. Manager Bird requests that all members of the Association accept this suggestion and get at least the two members by March 1st. jj gai I be Be jj cd j jj Pa wi: pia in jj ha lei t: Pi el Mount A Lake Association (Mount A' Lake Association paid sdv.) th to I; A |