p.vr.nra atabka_Dorothy. 1L. BaU_Zdit.ar_.
Published every week for the Ifcttanuska Volley Ihrmors’ Co-operating Association
for the purpose of giving news of tho Valley and Cooperating Association.
Subscription $1.75 Box $1.00
Distributed to Co-op Members through the Settlor 3oxes without charge.
ARE YOU A CO-OP BOOSTER or KTOCKER?
If; you have road anything about Denmark during the last few years, you have learned
that the average standard of living in that little country shows signs of surpassing
our ora. Some v/ill tell you that tho Danish farms on tho average hove better and
more modern homes than do American farms, Uc also learn that the Co-oncrativcs of
Denmark are the most effective and efficient in the world. Could it be that theso
two have any influence on each other?
Originally the soil of Denmark was not particularly fertile.‘It has been built up by
tho Danes to bn a very fertile and productive little country. Fertile soil wouldn't
benefit them itauch if they did not uso it to produce some of the best products now
available on the market. Danish dairy products arc well known all over Europe and
in America for their high quality. Did individual farmers build up this trade name?
No—the Danish Co-operatives arc responsible.
In Denmark, we arc told, there are neither the fabulous rich nor the extremo poor.
In stead we find c largo number of the people belong to what wo would term the middle
class or those who aro able to make a good living and enjoy the •omforts of a good
modern homo. The average person is also well educated. If this is due to their
co-operative type of economy, then the American Co-operative movement is not on the
wrong track.
Here is another side of the picture—111 types of interests in our country are or
ganized. Big buihoss is organized; labor is organized; the professions are organizing
Can the farmer do business individually in an orge.nizcd society and expect to'survive’
?*o. The result would bo throat cutting competition and ruinous to the farmer. If
the f rmor is to maintain a decent standard of living, then he must bargain in an
organized group and not m3 an individual. If other countries have used this system
of economy successfully, then me should .be able to do so.
?'uch -propaganda is being spread over the country in an attempt to discredit Co-ops.
The re .son for this is very obvious. Largo corporations arc alarmed at the growth
of 1'rgc co-operative movements throughout the country. They have in the past tried
every means to curtail their growth, but this last attack has beon tho most serious.
It is argued by those spreading this propaganda that since
Co-ops are exempt from certain kinds of taxes, they put private business and corpora
tions at a disadvantage. Under the Capper-Volstead Act, Cooperatives organized for
cooperative buying and selling specifically owned by farmers a*e not tanable under
the income tax law.
In a cooperative system there is no profit. All money received over operating ex
penses, which includes costs of management, are the SAVINGS of the society, N0¥ PROF-"
These savings are refunded to the customers in the form of dividends. If income tar
were levied on the dividends—first the Co-op would pay a tax then in due course thi
patron receiving it would pay a tax. This would be a double tax. The Co-op does not
actually own the savings which its business accumulates.
most vicious attack has recently been made against the REA Co-ops. It has been
called a Utilityman’s Utooia, because it could dip into the United States Treasury,
^ne REA Consumer came back with—"In spite of the oropagand.'to the contrary, REA
projects carry their own load and pay back every cent that they borrow,plus interest,
and are not a load on the taxpayer.
"Co-ops have never sold $100 shares of stock to the public and then froze out these
same stockholders and bought back these same shires for lews than $10, then reorgan
ized and sold new stock to some other suckers to be frozen out at a later date,
"The old line that co-operatives do not pay taxes and are therefore more .of a burden
on taxpayers is another joke. It can be safely said, and -jrtwran, that REA co-ops
pay more taxes per served customer than public utilities, and are at the sane time
giving electric service to thousands of farm homes that these same public utilities
could not nor would not give such service to,"
So lot us take stock of the advantages and disadvantages of belonging to Co-op's and
supporting co-ops. You will find the balance in fa-vor of the Co-operative method.