The Shiner Gazette (Shiner, Tex.), Vol. 51, No. 40, Ed. 1 Thursday, October 4, 1945 Page: 7 of 8
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SHINER GAZETTE, SHINER, TEXAS
Garden Flowers for
Gay, Gozy Kitchen
TT IS all a myth that your new
kitchen must be cold and clini-
cal. It may be as gay and cozy
as you like and your modern
equipment will settle right down
and be perfectly at home. So, if
you have ever wished that you
could have bright flowers on your
cupboard doors, drawer fronts
and canisters, go right ahead. Y#u
can even have them twining
■IwR
IliMIii
•H
f\xs%
7<
CORNER
SPRAY
REPEAT
FOR
BORDER
around the window and door
frames and on the furniture. What
is more, you can paint them your-
self with the painting pattern
shown here and have a lot of fun
doing it.
These garden posies are of the type
used in all peasant art—simple in design,
gay in color. All you have to do is to
trace the outlines from the pattern and
then fill them in following the color guide.
The pattern may be used over and over,
and there are motifs of different sizes.
You may want to use them for decorating
tin trays, boxes and gifts for Christmas
too. A list of materials and full directions
are included.
* • •
Note—This Garden Flower Painting
Pattern may be obtained by sending If
cents withname and address direct to:
MRS. RUTH WYETH SPEARS
Bedford Hills New York
Drawer 10
Enclose 15 cents for Garden Flower
Painting Pattern.
Name__
Address_I_
Trouble-Saving Jime-Saving Tip
From Other Busy Mothers
Best-known home remedy you can
use to relieve miseries of colds—
is to rub warming, soothing Vicks
VapoRub on throat, chest and
back at bedtime. Results are so
good because VapoRub
Penetrates to cold-irritated
upper bronchial tubes with spe-
cial, soothing medicinal vapors.
Stimulates chest and back
surfaces like a warming poultice.
Then For Hours VapoRub’s
special action keeps on working.
Invites restful sleep. Often by
morning most of the misery of
the cold is gone!
Only VapoRub gives you this
special penetrating-stimula-
ting action. So be sure you get the
one and only VICKS VAPORUB.
5£
TRIPLE
PROTECTS CHAFED SKIN
M9MUIMKK
Are arthritic joints “killing” you? Do you
feel miserable enough to die? I did !but I cured
myself. No pills. No braces. Send $1 for my
(Story. Simple directions. Let me help you too.
H. WELLRY
.143 Chandler • Worcester 2, Mass.
Creomulsion relieves promptly be-
cause it goes right to the seat of the
trouble to help loosen and expel
germ laden phlegm, and aid nature
to soothe and heal raw, tender, in-
flamed bronchial mucous mem-
branes. Tell your druggist to sell you
a bottle of Creomulsion with the un-
derstanding you must like the way it
quickly allays the cough or you are
to have your money back.
for Coughs, Chest Colds, Bronchitis
IS GETTIMG UP MfTS
GETTING YOU GOWN?
Thousands say famous doctor’s
discovery gives blessed relief from
irritation of the bladder caused by
excess acidity in the urine
Why suffer needlessly from backaches,
run-down feeling: from excess acidity in
the urine? Just try DR. KILMER’S
SWAMP ROOT, the renowned herbal
medicine. SWAMP ROOT acts fast on the
kidneys to promote the flow of urine and
relieve troublesome excess acidity. Origi-
nally created by a practising physician,
Dr. Kilmer’s is a carefully blended combi-
nation of 16 herbs, roots, vegetables, bal-
sams. Absolutely nothing harsh or habit-
forming in this pure, scientific prepara-
tion. Just good ingredients that quickly
act on the kidneys to increase the flow of
urine and ease the uncomfortable symp-
toms of bladder irritation.
Send foY free, prepaid sample TODAY!
Like thousands of others you’ll be glad
that you did. Send name and address to
Department B, Kilmer & Co., Inc., Box
1255, Stamford, Conn. Offer limited. Send
at once. All druggists sell Swamp Root.
ax Question Spotlights Spectacular Growth of
U. S. the credit for the birth of the
co-operative movement, the Roch-
dale enterprise of 1844 still receives
general recognition for establishing
the three general principles under
which co-operatives widely function
today. These principles include:
1. One vote to each member re-
gardless of stock holdings.
2. Distribution of net savings to
patrons in proportion to their pur-
chases.
3. Limited fixed interest on cap-
ital shares instead of variable and
unlimited dividends.
Organization of farm co-ops is rel-
atively simple, with the pattern
moulded to give each member an
equal controlling interest in the
operations. Upon subscribing for
capital stock or paying a member-
ship fee, the local group then adopts
by-laws and elects a board of direc-
tors. A manager is hired, policies
outlined and facilities secured. Al-
though in charge, the manager re-
mains under supervision of the di-
recting board.
In addition to observing the Roch-
dale principles in voting, savings
distribution and stock payments, lo-
cal groups often confine ownership
to farmers raising products handled
by the co-op; restrict securities
transfers, and limit the amount of
shares a member may hold.
While co-operatives are generally
organized on the local level, they
Private Business Complains of Disadvantage;
Co-Ops’ Volume Tops Five Billion Dollars
By AL JEDLICKA
When congress ponders a new revenue bill this fall, one of
the major propositions under discussion will be the taxation of
co-operatives. Under pressure of established tax-paying en-
terprises, the solons can be expected to comb the situation
thoroughly, since the rapid growth of co-operatives in the
present century not only poses the question of tax equality,
but also of maintenance of revenue.
But though the question of taxation itself appears to head
up the co-operative question now, there are other and even
more deeply rooted underlying causes, principally the move-
ment’s threat to the tradition- ^
al American business system.
In this respect, the whole co-
operative development may
well shape as an economic
evolution, though frequent
cycles have robbed it of the
consistency necessary for his-
torical reform.
At the present time, how-
ever, American co-operatives
are on a rising tide, with
the strongly established
farm organizations number-
ing 4,390,000 members being
steadily complemented by ur-
ban consumer and manufac-
turing groups. During the 1943-’44
season rural marketing and pur-
chasing co-operatives alone did over
5 billion dollars worth of business,
mostly on a tax-free basis.
As a result of the steady growth
of co-operatives spearheaded by the
farmer associations, and their ex-
tension into various fields, tradi-
tionally established American busi-
nessmen are stirring uneasily.
Whereas only the handler and sup-
plier of agricultural products and
material formerly had been pressed
by the co-operatives, competition
now has been extended to manu-
facturers of farm machinery, hard-
ware, paints, electric refrigerators,
Washing machines, toasters, clocks,
cigars, cigarettes, lipstick, tires and
batteries.
In addition, co-operatives now
drill wells, own pipe lines, refine
petroleum, possess timber tracts,
write insurance, and operate banks,,
telephone companies and electric
power installations.
From the beginning, the co-opera-
tive movement assumed the nature
of a joint enterprise for performing
a non-profitable service for each
participant’s individual welfare.
Though contemporary history
traces the real origin of the co-oper-
ative movement back to Rochdale,
England, where poor working peo-
ple organized a grocery co-op in
1844 to avail themselves of cheaper
food, some historians credit the
birth of the movement to local farm
groups which banded together in
the U. S. in the 1820s to reduce in-
surance costs.
Following the establishment of the
local fire insurance groups, the co-
operative movement assumed an-
other form in the U. S. after the
civil war in the national farm
Grange, a social and educational or-
ganization also bent upon relieving
stringent economic conditions. Even-
tually turning to co-operative meth-
ods to attain its early objectives,
the Grange failed in promoting a
purchasing co-op because of the un-
scrupulosity of agents; bogged in
pushing consumer co-ops partly as a
result of the panic of 1873, and gave
up a farm machinery manufactur-
ing co-op following overproduction
and under-servicing.
As the co-operative movement be-
gan to take root here during World
War I and congress recognized it as
an instrument for aiding the farm
producer, legislation was enacted to
afford tax relief to operators. In
1916, congress stipulated that farm-
ers, fruit growers and like associ-
ations organized and operated on a
co-operative basis and acting as
selling agents for their members
should not be requested to pay an
income tax on earnings.
In subsequent legislation, the
solons provided that co-operatives
could purchase as well as sell for
producers; deal with non-members
as well as members; become cor-
porations and pay interest on stock,
and not be prosecuted under the
anti-trust laws.
The government also set up a fed-
eral agency to loan money to co-
operatives in 1921, with the financial
machinery expanded through the
farm credit act of 1933. In 1933, the
securities act also permitted co-op-
eratives to sell equities without
prior approval of the Securities and
Exchange commission, which exer-
cises that right over corporate is-
sues.
Though historians claim for the
more than 400 units at the most with
110,000 members doing about $5,000,-
000 business annually. Though con-
sumer labor co*ops have failed in
the past, the CIO’s entrance into the
field on a limited basis bears watch-
ing anew, with the union tactics ap-
parently aimed at making up future
tighter wage rates by reducing
staple living costs.
In singing the praises of farm co-
ops, advocates describe the move-
ment as a means of putting the
country’s gigantic rural plant on a
more efficient basis, with resultant
profits to the producer.
This increased efficiency can be
attributed to both the size of co-oper-
atives and the nature of their own-
ership. By banding together, farm-
ers are able to purchase goods at
lower prices, and group distribution
results in smaller overhead and de-
creased handling charges. By own-
ing the business, of course, co-oper-
ators avert dealers’ margins.
Though tax-exempt co-operatives
have been the target of competitive
businesses complaining of their tax
preferment, R. Wayne Newton,
manager of the National Association
of Co-operatives, declares that the
increased return of farmers results
in payments of higher individual
income taxes. At the same time,
Newton says, the larger profits en-
able operators to spend more on
merchandise in the local communi-
ties.
Charges that co-ops are making
huge profits on their operations only
serves to emphasize the size of mar-
gins formerly enjoyed by private
dealers, Newton avers. By banding
together for co-operative operations,
farmers have tended to offset their
usually affiliate with regional
groups to obtain maximum effi-
ciency of operation, with the region-
al bodies in turn sometimes combin-
ing with national associations. But,
in any case, the local group retains
a voice in the broadened organiza-
tion through the selection of dele-
gates.
While membership fees, stock
sales and reserves provide working
capital, co-operatives borrow on a
large scale to finance operations, a
study of the Farm Credit adminis-
tration in 1939 revealing that ap-
proximately one-half of the co-ops
then existent resorted to loans.
While figures show 4,390,000 mem-
bers of 10,300 farm marketing and
purchasing co-ops, the actual num-
ber of individuals participating in
the movement may be considerably
less since a person may belong to
more than one organization.
With 7,522 units and 2,730.000
members, the farm marketing co-
operatives do by far the largest bus-
iness,, with 1943-’44 activities total-
ing almost $4,500,000,000. Handling
of dairy products accounted for
$702,000,000; livestock, $636,000,000;
grain, dry beans and rice, $452,000,-
000; cotton and its products, $258,-
000,000; fruits and vegetables, $160,-
200,000; poultry and eggs, $130,000,-
000; tobacco, $120,000,000; wool and
mohair, $107,000,000; nuts, $49,-
000,000, and miscellaneous, $115,-
000,000.
For the 2,778 purchasing co-ops
with 1,660,000 members, total busi-
ness for the 1943-’44 ; season was
placed at $730,000,000. Seventeen
major regional procurement organ-
izations alone secured $151,640,000
of feed; $50,702,000 of gas, oil and
grease; $19,871,000 of fertilizer, and
$10,893,000 of seed.
Never as successful in the U. S. as
in Britain, American urban or con-
sumer co-ops are insignificant
alongside of the farm organizations.
It has been figured that there are no
Facts on Farm Purchasing and Marketing Co-Ops 1943-44
Geographic Division
Associations
Membership
Business
Number
%
Number
%
$1,000
%
West North Central.......
40.2
1,348,630
30.7
1,531,040
29.7
East North Central.......
23.8
1,116,170
25.4
1,165,070
22.6
Pacific...................
8.0
244,270
5.6
798,420
15.5
Middle Atlantic..........
5.9
399,500
9.1
441,790
8.6
South Atlantic ...........
.... 477
4.6
401,400
9.1
378,440
7.3
West South Central.......
7.7
261,850
6.0
291,500
5.6
Mountain ................
5.5
211,350
4.8
249,910
4.8
New England............
.... I6l
1.6
139,840
3.2
174,800
3.4
East South Central.......
2.7
266,990
6.1
129,030
2.5
Total................
100.0
4,390,000
100.0
5.160,000
100.0
m
Successful co-ops include refinery
at McPherson, Kan., top, and grain
elevator of Indiana Farm bureau at
Indianapolis, Ind.
previous disadvantage of being com-
pelled to sell their products on a
flexible open market and buy on a
more or less rigid retail price level,
he further states.
In spearheading the opposition to
tax-exempt co-operatives, the Na-
tional Tax Equality association
points to the fact that co-op reserves
retained after patronage refunds re-
main untaxed, thus enabling them
to do business at lower cost while
also permitting continuing expan-
sion. As a result, the NTEA asserts,
co-operatives are growing at a rate
of 10 times that possible for tax-
paying enterprises.
Not only that but many tax-pay-
ing corporations have shifted to a
tax-exempt status either through ac-
quisition by co-operatives or by the
voluntary action of stockholders,
NTEA declares.
As examples, NTEA president,
Ben McCabe, cites the northern Cali-
fornia holdings of the Red River
Lumber company, bought by the
Fruit Growers’ Supply company, a
subsidiary of the California Fruit
Growers’ exchange, with a loss to
the U. S. treasury of nearly $1,000,-
000 a year in tax revenues; the
Ohio Cultivator company of Belle-
vue, Ohio, purchased by the Na-
tional Farm Machinery Co-oper-
ative Inc., with a loss of about $196,-
000 annually to Uncle Sam’s coffers,
and the Globe Refining company of
McPherson, Kans., taken over by
the National Co-operative Refinery
association.
Against the background of al-
ready established co-operatives and
the shift of some tax-paying enter-
prises to a non-paying co-op basis,
McCabe also cites the possibility of
the growth of labor-sponsored con-
sumer organizations, which would
remain tax-free on two counts: one,
because ownership would be vested
in tax-exempt unions, and two, be-
cause they would distribute earn-
ings before computing their levies.
Study Co-Ops
Co-operative principle and the
technique of co-operative action by
rural and urban dwellers were given
extensive study in religious training
schools sponsored by Catholic and
Protestant groups throughout the
United States this summer.
Between June and September 57
rural life schools and institutes for
Catholic priests and teaching sisters
were scheduled by the National
Catholic Rural Life conference. Not
less than 30,000 priests and nuns
were to be contacted.
Released by Western Newspaper Union.
GOVERNMENT SPENDS TO
REACH PEACETIME HIGH
WASHINGTON.—The key to what
the Truman administration is up to,
economically and financially, lies
only half-hidden in figures an-
nounced by Budget Director Harold
Smith. A little inside work with a
pencil on these will show you:
(A) Much tax reduction is unlike-
ly. In fact it may be only what
might be called (and is already pri-
vately being called) a “political” re-
duction. By this is meant a mild and
perhaps complex revision slightly
downward but actually maintaining
government revenues near what
they are.
(B) The spending program of
the first peace year will make
pikers out of both Franklin
Roosevelt and John Maynard
Keynes who led the way in this
world for an established policy
of tremendous government out-
lays far beyond anything hither-
to conceived in the mind of man.
The Truman treasury expendi-
tures are to run 50 y2 billion dol-
lars for this fiscal year (nine
months to run) says Mr. Smith.
The vaunted Roosevelt spending
program of the bottom-depres-
sion year of 1933 ran one-tenth
of that sum and Roosevelt in all
his years never spent one-fifth
of that sum.
(C) To talk of further government
appropriations now, to cushion the
conversion period, in the face of
such a tremendous spending pro-
gram, not only runs the extremity
of the sublime to the ridiculous, but
creates a new category at the end
which might accurately be' de-
scribed as ridiculous sublimity.
TAXES WON’T COVER SPENDING
I will try to analyze these mat-
ters for you in detail, as they reach
down into the fundamentals of all
the domestic postwar problems with
which we are confronted, and in-
deed, our foreign problems as well,
because Mr. Truman has wiped the
Lend-Lease slate clean, and is start-
ing upon a new additional lending
program abroad.
Take taxes first (as no one here
is). Mr. Smith concludes the pres-
ent heaviest war rates will not this
year produce the bulging 45 .billions
gleaned last year. He assumes no
doubt that much less business will
be done and people will produce
less, although the stock market does
not seem to think or say so, as it
continues to disregard any postwar
possibilities of less corporate or in-
dividual income or spending as a
whole. At any rate Mr. Smith says
he will only get 36 billions out of
these rates this year.
If the government is to spend
50% billions and takes in only
36 billions, it is evident real tax
reduction is impossible. So it
looks like the best that the re-
election hungry congress may
do is to patch together some
kind of a tax reduction effective
next January 1 which will make
everyone feel a little better—ex-
cept in the pocketbook.
The talk is they will reduce the
normal income rate from 6 per cent
to 4 or 3, but keep the withholding
tax (treasury intends to keep this
probably permanently with pay-as-
you-go) and the other individual
rates where they are. Great demand
is present for abolition of the cor-
poration excess profits tax.
BUDGET SHOULD BE LOWERED
The fiscally wily Republican Mr.
Knudsen claims the budget for next
year (beginning next July 1) ought
to be down around 26 billions, which
would enable a genuine tax re-
duction, if receipts are kept running
10 billions higher. Of course there
:s debt retirement to think of and a
considerable excess of. receipts
should go into this (just carrying the
debt will cost six billions annually
in interest).
Two schools of thought are de-
veloping in congress behind this
condition of financial affairs. The
line I have outlined is that of
the administration and what
seems likely to foe the major-
ity. But there is another school
which claims it is far more nec-
essary to create a proper spirit
toward progress in the country
than to run everything down too
closely to fiscal policy. This
school advocates a genuine tax
reduction now in anticipation of
heavy coming cuts in the 5014
billion dollar budget of this year.
Their theory is the lower rates
will bring greater revenues, and
such anticipation is necessary to
sustain good business.
In five fiscal years of preparation
and fighting, from 12.7 to 100.1 bil-
lions actually were spent last year,
Mr. Truman has figured the cost of
this war at 285 billions. It might be
figured around 385 billions for the
six years of complete government
expenditures from the first prepara-
tory year through this year. Mr.
Truman is probably not figuring
ordinary government running ex-
pense. In any event, the cost of
the last one was a pittance of less
than 30 billions—at least one-tenth of
the cost of this, no matter how you
figure..
SEWINC CIRCLE PATTERNS
Party Frock for Little Girls
Due to an unusually large demand and
1-6 yrs.
rjERE is an adorable party
Li frock for your young daugh-
ter. It’s so easy to make—cut all
in one piece with drawstrings at
neck, sleeves and waist. Make it
in a pretty floral print and add
gay velvet bows.
* * •
Pattern No. 8883 is designed for sizes 1,
2, 3, 4, 5 and 6 years. Size 2 requires
1% yards of 35 or 39-inch fabric; 5 yards
ribbon to trim.
the current conditionsi'.slightly more time
is required in filling orders for a few ol
the most popular pattern numbers.
Send your order to:
SEWING CIRCLE PATTERN DEPT.
530 South Wells St. Chicago
Enclose 25. cents In coins for each
pattern desired.
Pattern No. ___Size—__
Name-
Address.
and other
A. B. C.
Station*
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easy vray to UNCORK
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The Shiner Gazette (Shiner, Tex.), Vol. 51, No. 40, Ed. 1 Thursday, October 4, 1945, newspaper, October 4, 1945; Shiner, Texas. (https://texashistory.unt.edu/ark:/67531/metapth1148242/m1/7/: accessed July 16, 2024), University of North Texas Libraries, The Portal to Texas History, https://texashistory.unt.edu.; crediting Shiner Public Library.