Palmer, Alaska Dorothy M. Bell, Editor
Publishod overy wook at Palmor, Alaska, for the Matanuska Valley Farmers* Cooperating
Association for-tho puiposo of giving nows of the Associations Tfork, problems and
Ac complishmo nt s.
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LETTER, TO THE EDITOR
The rrritor bolieves that the time has come rhen thoro should be some plain talking
dono and rishos to take full responsibility for the follovring opinions. I have boon
a rosidont of the Matanuska V,Ucy for 11 years and a member of the Co-op for 10 years
servod as a Director of the Co-op and as Sccrctory-Treasuror for noarly throo years,
ono year as ono of tho advisory Board mombers and tiro after the Co-op uas taken over
by tho people of the Valley. I holped to get the Co-op turnod ovor to the people
and knot: rrhat tho contracts noro and horr the transfor tos made. Thereforo, I think
I am qualifiod to stato rhat has boon dono and rrhat rrill probably be dono as far as
tho Co-op i9 concerned.
In 1939 tho ARRC had been running‘tho Colony for four joars and had grant four million
dollars of tho GovcrniKnt'G monoy, and ono Diroctor of the /.PRC told'a cammittco frem
the Co-op Board that in his opinion 75# of tho money had boon rrastod.' I rrould ask
for no better authority than this man to pass judgnent on tho Project,
Aftor four years of Corporation management the best that they could dociphor from
thoir cxporionco for tho averago Colonist rras to offor him transportation for him
self and family back to the place in the States from rrhich he came and $300 « ■ for
his equity in tho rrork that he had done in tho previous four years. A for accepted
tho offer and tho rest rrorc resentful and discouraged, but decided to stay on-or at
least stay in Alaska, A group of colonists organized and demanded that the Corpora
tion fulfill their contracts rrith them and that tho Co-op^hich rras the business part
bo sot up and turned over to them so that it cculd be run like a truo Co-qp_That is
a Co-op in rhich the members rrould control its policies, select its officers and a
Co-op rrhich they could ovcntually orm.
After the usual amount of investigation, the Government authorities agreed to turn
the Co-op ovor to tho membors and a prico T7as agreed upon rhich ras satisfactory to
fcoth pajptios. The last yoar that the Corporation ran the Co-op it shared a loss of
$35,000.00 according to tho best information that could be obtained and the ARRC
Board ras so positive that the Co-op Could not succeed that they offered to subsidizo
tho Co-op to the oxtent of $7,000.00 a month for three months or until the Government
could give the Co-op more money from tho FSA loan fund. Strange as it may sccm,nono
of this monoy vras ovor requested or noedod and the Co-op has never failed to meet any
of its obligations since the business ras turned over to it. Remember this fact.
As long as the politicians, bankers, bureaucrats and other enemies'of the Cooperative
movement thought that the people would be unable to make a success of the Co-op, re »
rcro not bothered to any groat extent, but as soon as it bacamc apparent that fo roro
making a succoss of the undertaking then ro wore subjected to all kind3 of unfriendly
acts, When the Board of Directors tried to establish a market for the fluid milk in
Anchorage for the bonofit of the Valley farmers, ro were accused of misappropriating
Co-op funds. At one time a Resolution was passed by tho ARRC Board of Directors ask
ing the Farm Security Administration, from rhom cur loan ras obtained, to forccloso
on the loon because ro had violated our loan agreement. Friends of tho Co-op gave"us
assistartco through contacts in Washington D.C. and the motion ras novor acted upon.
Horovor, acts of'this kind arc serious as they nffoct our credit standing in Scattlo
for a short time, or until the truth can bo ascertained. But as soon as one lio is
disapproved another one crops up.
During the time'that the Co-op was so badly mismanaged which caused so much of the
prosent troublo, nothing was done to protect the Government or the Membors, but as
soon as a now Board was oloctcd which scorned to be trying to do southing to put tho
Co-op on a soundor and better financial basis—than the same old group start out
again.
This is dofinitoly an attack on the Cooperative movement and is causod by pressure
being placod on the politicians by business men who dosiro to monopolize the businoss
activities of any district that any particular Co-op operates in. fancricans arc
definitely for froc enterprise. Whon a group of farmers organize to socurc bettor
markets for their products or to secure bettor prices for their consumer goodsj this
is definitely froo enterprise too. That' is just what a Co-op if organized for* Tho
Cont, on pp, 3