5- 





YOUR COMPANY and mine has had a 

 great history. It's a 2 5-year history of 

 farmers who, in days of great trials and 

 tribulations, organized their own co-operative 

 associations to provide themselves with better 

 markets for the products from their farms and 

 better distribution facilities for the supplies 

 needed in production. Your company and mine 

 has done a great job. Reports of progress and 

 achievements will be made at your local annual 

 meeting. 



Your company and min« is a splendid example 

 of American free enterprise. Farm people are 

 free businessmen. They own and operate farms. 

 They invest capital. They work mentally and 

 physically. They buy and sell. Through your local 

 co-operative associations you have multiplied 

 your effectiveness tremendously, but there are 

 segments of business that would deny the right 

 of farmers to engage in co-operative business. 

 These business interests would deny the right of 

 farmers to make savings through patronage re- 

 funds. They would have the public believe that 

 farmer co-operatives escape taxation. Thev v^ ould 



Let's keep it that^c 



lo 



14 



have the public believe that you are un-American. 



These charges are not true. Your company 

 and mine pays every tax that business is called 

 ^pon to pay, including federal income taxes. In- 

 come taxes are paid upon all net income which 

 is not refunded to member patrons at the close 

 of the year. Income tax is paid on non-member 

 business, even though such earnings may not be 

 retained in the capital structure. Income taxes 

 are paid upon the amounts paid as capital stock 

 ilividends. In this respect, your company and 

 mine is subject to the same double taxation as all 

 other corporations. 



Income taxes, however, are not paid on patron- 

 age refunds, and we believe that they should not 

 be. The patronage refund check you receive at 

 annual meeting this Fall and Winter is taxable 

 in your hands. It is nothing more than an adjust- 

 ment in the price you paid at time of purchase. 



This privilege is ncM limited to farm co-opera- 

 tive associations. There are many businesses that 

 use a similar approach. Many insurance com- 

 panies operate on this basis. There are many 

 independent grocer, hardware, automotive, and 



L A. A. RECORD 



nt 

 tht 

 zat 

 lar 

 tht 

 tht 

 you 

 is 

 ] 

 me: 

 iciz 

 out 

 Ih^ 

 of 

 her 

 ( 



loc. 

 ton 

 lion 



you 



for 



past 



the\ 



DE( 



