P'liner, Alaska
•Editor. Dorothy l'• Bell
Advertising... Harriet Z. Boll
Published once a week at Palmer, Alaska, for the Latanuska Va/ley ’.Farm
ers’ Cooperating Association for the purpose ol giving news of the
associations work, jiroblems and accomplishments.
SUBSCRIPTION RATE frl.75 _$1.00 for six months_log a copy
Oy\y TAYRS
No doubt you hear the statement that Co-ops do noh pay taxes, just' as
we do. So, let’s get down under the surface and find out if this is
true. The answer is Yes and No. V/e find that Co-ops pay just as many
taxes as any other business except that under certain conditions they
may be exempt from Federal Income taxes, 'The Co-op will have to pay its
part of the. new- School Tax just the same as any other business. It has
to pay all Territorial Taxes that any other business does and all Feder
al Taxes that pertain to organizations of this kind.
However, the restrictions made to enable the Cooperatives to keep from
paying the Federal Income Tax are so strong that it would not be desira
ble or possible to conform to them and still compete with other business
organizations that are highly competitive. Therefore, most Co-ops find
it convenient to pay the tax and take advantage of the less restrictive
conditions.
The so called dividends, that Co-ops pay to their members, are not divi
dends in the true meaning at all. Dividends are usually paid from pro
fits on business done with patrons who arc not stockholders of the organ
izations.. The customer buys and the company that sells makes a profit
on the sale. Thi;: profit goes into the pockets of the people who own
the company end regardle- s of how much the customer buys, he never gets
any of the profit made on his business. The sale ends the transaction
as fur as he is concerned.
In contrast, tho Cooperative 'number buys from hi' organization,usually
at the rogul- r retail price. Chen if the business is done as efficiently
as It is by the non-cooperative organization, a surplus accumulates.
Then—after all expenses are deducted,including reserves for working
capital and depreciation and now expansion funds, tho remainder is re
turned to tho individual member on tho basis of his patronage. At the
same time tho Co-op member is credited with his part of the reserves
withheld and so becomes a partner in the business. He and the other
members 7/311 uventualiy own-tho property of the Co-op. This practice is
tho reason that Co-ops attract thinking people and that private businosse;
object to Co-ops. In fact, Co-ops are really partnerships, but instead
of being limited to two or throe or more people, the Co-op contains many
partners who use their organization to insure fair prices and the full
value of their dollar spent.
Whatever the Co-op member saves,by receiving so called dividends,becomes
a part of his funds subject to taxation. He cannot escape his fair
amount of taxes. You should also remember that practically all taxes are
paid by the consumer regardless as to where he buys-—just' as tho sales
taxes arc paid by the consumer -in th^, final analysis. So—;vhon any of
tho private business men toll you that you are not paying your fair
share of taxes when you join -a Co-op, tell him that you would be willing
to pay any taxes that are required if he \ ill return'at least part of
the profit that he makes on your purchases. 'Ic doubt if you will have
1?o pay any additional taxes. Carl R. Rasmussen
Unless the tide-of industrial unrest is stemmed, the eventual result will
be either nationalization of our industries, or the establishment of
coercive practices by Government, either of which is contrary to the
concepts upon which our Government was founded and under which we have
become the world’s strongest and richest nation.
The answer to th^se two dangers to democracy was discovered bytho little
iand of weavers, who, in Rochdale, England, over 100 years ago, organized
ho first consumer cooperative. They started a movement which has playoa
an important part in world affairs, oven contributing materially to the
winning of World War II. Cooperatives may conceivably prove to be tec
moans through which health, happiness and prosperity can be restored
to much of the 'world, and thereby defeat thv forces of fear and povorcy
and greed. U.S.Senator George D. ~iken, Vermont.