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Show THE RICH COUNTY REAPER. RANDOLPH. UTAH last: as f aamm. fc. O- - Question Spotlights Spectacular Growth of Movement in U. S. in Recent Years Tax Co-Operati- ve Co-O- ps ByALJEDLICKA When congress ponders a new revenue bill this fall, one of the major propositions under discussion will be the taxation of Under pressure of established enterprises, the solons can be expected to comb the situation thoroughly, since the rapid growth of in the present century not only poses the question of tax equality, but also of maintenance of tax-payi- ng revenue. But though the question of taxation itself appears to head up the question now, there are other and even more deeply rooted underlying causes, principally the movements threat to the traditional American busi- - ft" ness system. In this respect, the general recognition for establishing the three general principles under whole development which widely function may well shape as an economic today. These principles include: ; ive evolution, though frequent cycles have robbed it of the consistency necessary for historical reform. At the present time, however, American are on a with the tide, rising strongly established farm organizations numbering 4,390,000 members being steadily complemented by urban consumer and manufact4 uring groups. During the 1943-4- One vote to each member regardless of stock holdings. 2. Distribution of net savings to 1. patrons in proportion to their purchases. 3. Limited fixed interest on capital shares instead of variable and unlimited dividends. is relOrganization of farm atively simple, with the pattern moulded to give each member an equal controlling interest in the operations. Upon subscribing for capital stock or paying a membership fee, the local group then adopts and elects a board of directors. A manager is hired, policies outlined and facilities secured. Although in charge, the manager remains under supervision of the directing board. In addition to observing the Rochdale principles in voting, savings distribution and stock payments, local groups often confine ownership to farmers raising products handled by the restrict securities transfers, and limit the amount of shares a member may hold. While are generally organized on the local level, they affiliate with regional usually groups to obtain maximum efficiency of operation, with the region- co-o- ps season rural marketing and purchasalone did over 5 ing billion dollars worth of business, e basis. mostly on a As a result of the steady growth of spearheaded by the farmer associations, and their extension into various fields, traditionally established American businessmen are stirring uneasily. Whereas only the handler and supplier of agricultural- products and material formerly had been pressed by the' competition now has been extended to manufacturers of farm machinery, .hardware, paints, electric refrigerators, washing machines, toasters, clocks, cigars, cigarettes, lipstick, tires and batteries. In addition, now drill wells, own pipe lines, refine petroleum, possess timber tracts, write insurance, and operate banks, telephone companies and electric power installations. From the beginning, the movement assumed the nature of a joint enterprise for performing a service for each participants individual welfare Though contemporary traces the real origin of the history movement back to Rochdale, England, where poor working people organized a grocery p in 1844 to avail themselves of cheaper food, some historians credit the birth of the movement to local farm groups which banded together in the U. S. in the 1820s to reduce in surance costs. Following the establishment of the local fire insurance groups, the cooperative movement assumed an- al bodies in turn sometimes combinother form in the U. S. after the ing with national associations. But, civil war in the national farm in any case, the local group retains Grange, a social and educational or- a voice in the broadened organizatganization also bent upon relieving ion through the selection of delestringent economic conditions. Even- gates. While membership tually turning to methfees, stock ods to attain its early sales and reserves provide working objectives, the Grange failed in borrow on a promoting a capital, p because of the un- large scale to finance operations, a purchasing scrupulosity of agents; bogged in study of the Farm Credit adminispushing consumer as a tration in 1939 revealing that apresult of the panic of 1873,partly and gave proximately one-ha-lf M)f the co-oup a farm machinery manufactur- then existent resorted to loans. ing co-ofollowing overproduction While figures show 4,390,000 memand bers of 10,300 farm marketing and As the movement be- purchasing the actual numto take root here during World ber of individuals gan participating in War I and congress it as the movement may be considerably recognized an instrument for aiding the farm less since a person may belong to producer, legislation was enacted to more than one organization. ax rebef to operators. In With 7,522 units and 2,730,000 1916, congress stipulated that farmthe farm marketing comembers, ers, fruit growers and like associ- operatives do by far the largest busations organized and operated on a iness, with 1943-44 activities totalbasis and acting as ling almost $4,500,000,000. Handling selling agents for their members of dairy products accounted for should not be requested to an $702,000,000; livestock, $636,000,000; pay income tax on earnings. grain, dry beans and rice, $452,000,-00In subsequent cotton and its products, legislation, the solons provided that fruits and vegetables, could purchase as well as sell for poultry and eggs, $130,000,-00producers; deal with tobacco, $120,000,000; wool and as well as members; become cor- mohair, $107,000,000; nuts, porations and pay interest on stock and miscellaneous, and not be prosecuted under the anti-trulaws. For the 2,778 purchasing co-oThe government also set with 1,660,000 members, total busiup a federal agency to loan money to co- ness for the 1943-4- 4 season was operatives in 1921, with the financial placed at $730,000,000. Seventeen machinery expanded through the major regional procurement organfarm credit act of 1933. In 1933, the izations alone secured $151,640,000 securities act also permitted of feed; $50,702,000 of gas, oil and to sell equities without grease; $19,871,000 of fertilizer, and prior approval of the Securities and $10,893,000 of seed. .change commission, which exer-sueNever as successful in the U. S. as over corporate is- - in Britain, American urban or consumer are insignificant Though historians claim for the alongside of the farm organizations U. S. the credit for the birth of the It has been figured that there are no movement, the Rochtban 00 units at the most with dale enterprise of 1844 still receives 110,000 members doing about $5,000,- by-la- tax-fre- - CW The Questions s Private Business Complains of Disadvantage; Volume Tops Five Billion Dollars fu 1. Who was Rameses II? 2. Do elephants lie down when business annually. Though consumer labor have failed in the past, the CIOs entrance into the field on a limited basis bears watching anew, with the union tactics apparently aimed at making up future tighter wage rates by reducing staple living costs. In singing the praises of farm coops, advocates describe the movement as a means of putting the countrys gigantic rural plant on a more efficient basis, with resultant profits to the producer. This increased efficiency can be attributed to both the size of and the nature of their ownership. By banding together, farmers are able to purchase goods a lower prices, and group distribution results in smaller overhead and decreased handling charges. By owning the business, of course, avert dealers margins. Though have been the target of competitive businesses complaining of their tax preferment, R. Wayne Newton, manager of the National Association 000 co-o- ps information on various subjects 8. In Homers Iliad a cton was a herald who walla ot Troy with the lotee how many men? Jiffy Crochet for Lamp Shades . fimplecrwheted FES SdCesUinS CrChet dnsafo; Due to an unusually large demand current conditions, slightly an d In JIw required 0Tthe filling ordem for a most popular pattern numbers. Clrc,e Needlecraft Dept San Francisco 6, Calif. Enclose 16 cents for Pattern Box 3217 No Name Address- - ties. are making ps luge profits on their operations ohly serves to emphasize the size of margins formerly enjoyed by private dealers, Newton avers. By banding ogether for operations, armers have tended to offset their previous disadvantage of being com- - r ; ff 8 4 SHw co-o- p; I AMP shades shabby? Cant find the right size or color? Cover a shade, new or old, paper or silk, with crochet in chenille or straw . El ARY martin yarn. First Diesel Engine well- rooQt manr eUromed, stars informed Hollywood g r 1 whoteCaloxT The first Diesel engine, made about 50 years ago for commercial purposes, weighed 450 pounds per horsepower; while one made McKesson & Conn. Bridgeport, CftLOX today for the navys patrol vessels weighs less than 5 pounds per non-profitab- le tooth POWDER horsepower. co-o- co-o- co-o- ps ps p under-servicin- g. co-op- s, 0; $258,-000,00- 0; $160,-200,00- 0; 0; non-membe- rs $49,-000,00- $115,-000,00- st ps sf co-o- I ps 0, 0. Successful include co-o- ps refinery at McPherson, Kan., top, and grain elevator of Indiana Farm bureau at Indianapolis, Ind. pelled to selj their products on a flexible open market and buy on a more or less rigid retail price level, he further states. In spearheading the opposition to tax-exem- the pt tional Tax Equality points to the fact that Na- association p reserves retained after patronage refunds remain untaxed, thus enabling them to co-o- do business at lower cost while also permitting continuing expansion. As a result, the NTEA asserts, are growing at a rate of 10 times that possible for tax-payi- ng enterprises. Not only that but many tax-payi- tax-exem- pt f ng corporations have shifted to a status either through acquisition by or by the voluntary action of stockholders. NTEA declares. As examples, NTEA president, Ben McCabe, cites the northern California holdings- of the Red River Lumber company, bought by the Fruit Growers Supply company, a subsidiary of the California Fruit Growers exchange, with a loss to the U. S. treasury of nearly $1,000,-00- 0 a year in tax revenues; the Ohio Cultivator company of Bellevue, Ohio, purchased by the National Farm Machinery Inc., with a loss of about $196,-00- 0 annually to Uncle Sams coffers, Globe Refining company of McPherson, Kans., taken over by the National Refinery association. Against the background of already established and the shift of some enter- p K1??8..0 a basis, McCabe also cites the possibility of the growth of consumer organizations, which would e remain on two counts: one, because ownership would be vested in unions, and two, because they would distribute earn-ing- s before computing their levies. The Baking Powder with' the BALANCED Double Action - Clabber Girl s balanced double action makes it the natural choice for the modem recipe for just the right action in the mixing bowl, plus that final rise to light and fluffy flavor in the oven. ... re tax-payi- ng non-payi- ng labor-sponsor- ed co-o- N flMfjfr SPRAINS AND STRAINS Muscular Aches and Paint Stiff Joints Bruises tax-fre- tax-exem- pt 05 SEWING CIRCLE NEEDLECRAFT declares that the increased return of farmers results in payments of higher individual income taxes. At the same time, Newton says, the larger profits enable operators to spend more on merchandise in the local communico-o- ? hs es, Charges that ? they sleep? 3. Lentigo is another name for what? The Answers 4. Aircraft is distinguished by Pbaraoh f Egypt, and the weft method. What does richest man that ever lived the weft mean? 2. No, they kneel down. 5. Sterling silver is approxi3. Freckles. mately what part pure silver? WingS Cngine fuselaee and 6. Where was Benjamin Frank- tafl. lin bom? 5. About eleven-twelft7. Chile stretches along the west 6. Boston, Mass. coast of South America for how 7. For 2,600 miles. 8. Fifty. many miles? tax-exem- pt of ? A quiz with answers offering gatsms whrcimrr j |