Palmer, Alaska
Dorothy M, Bell, Editor
Published every week at Palmer, Alaska, for the Matanuska Valley Earners’ Cooperating
Association for the purpose of giving nows of the Associations Pork, Problems and
Accomplishments and dissemination of information of a public character,
SUBSCRIPTION RATE $1.75 per year Single copy 10£
manager's uncle DEFENDS farmers' cooperatives
Erom the Pashcoegg magazine of October 1947 we glean some more information on the
attack being made against Co-ops by the NTEA ( National Tax Equality Association)and
the defence made against these attacks'by Co-dp leaders in the Northwest, Among those .
on the defence for Co-ops was Marvin S,'Allyn, uncle of the manager of the-Matanuska
Valley Earners’ Cooperating Association, A, Marvin Allyn,
Pc quote in part—
” Parmer Cooperatives of the Pacific Northwest passed before the bar of public opin
ion recently, and the case they presented left little doubt the cooperative self-help
method of doing business is constructive, wholesome.'entirely ethical—And very bene
ficial'in our free enterprise economy to all members, their communities, state and
nation.
" The occasion was a two-day congressional hearing called by the House Subcommittee
cn Sr.all Business in Seattle September 10 and 11, Its alleged purpose was to seek
facts to determine whether cooperatives are ih the public interest, whether they have
advantages to the detriment of other business, and whether they are an integral part
of the American private enterprise system,
” The investigating caa:%-^geQ TOS chairmaned by Rep,'Palter Floeser (R, ,MoX with
Rep« ""right Patman (D,,Tex,)’ranking minority member, and’Rep. R. Palter Riehlman
( R. , N.Y.) the third member. Reps. Henry M, Jackson (D., Pash,)' a'manber of the
House full committee on small business, and Palter A, Lynch (Di, N.Y.) a member of .
the House Pays and Means committee were invited to participate, -
" r'ot long after the gavel banged out'the opening,-it ras apparent representatives of
the National Tax'Equality Association, the Facifie Northwest Hardware and the imple
ment Association, and" feed and flour millers were on hand to make their usual charges
against farmer Co-Ops. It was equally evident most"of them were find’ng themselves^
in embarrassing positions under the rapid-lire cross examination of Congressmen
Jadkson and Patman who were definitely'out to obtain a ’’fair deal" for cooperatives,"
These two congressmen drove home point aftc* point which ripped the N.T.jS.A, arguments
asunder. They also showed tine and again that instoad of farmer Co-ops "and their '
members being harmful to small business th;se rural folks arc one of its greatest
allies, -
"The case for continuation of present' statutes as they pertain to farmer cooperatives
was ably presented by MARVIN S. ALLYN, comptroller for the 77ashington Cooperative
Farmers Association and five other leaders in Pacific Northwest Co-ops.
M lyn euickly hit the crux of the question by saying cooperatives cannot be compared
with profit, eorporations because cooperatives are a non-profit, all-farm service or
Ceniuat-ion; serving their members at cost,.
wTo carefully analyzed operations of the Washington Co-Op; going'into such detail it
certainly proved your Association has nothing to hide. Instead, the Washington CoOp"
teles great pride in its splendid record of off-farm services which have resulted C
--ichor individual incomes to its farm members.
^nder long cross examination by Ballinger, Allyn repeatedly explained that to say
Co-Ops avoided taxes they would have pa id had they beer, a'profit corporation ir
grossly unfair because if they had beon such a corporation, they would have operated
under different rules. ’ 9 *
llG likewise proved, again and again, the second payment (the deferred payment or pat- ^
ornage return) for products marketed is just the same as the first advance ar.d can
ir no way he construed as profit for the cooperative. Sven though Ballinger attempted
to contradict this point Aliya sta’uichly and able lofended his position,
J . 2
^Our Cooperative merely performs a service for members," Allyn explained. "All di*
its resources are ear -marked on a'pntronage basis for members, so in all fairness*
arv justice the Vmthingtoc CoOp cannot be taxed for sumeuhlag it doos not earn/
"On one occasion wtmri Bald in er atbempted'to have Allvn say Add the Hashingtox Co-Op
Cont. cn page 5