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Holaiiie Met Margies
ITaabe Potron-Members'
(over) 54.000
Volume of Business during past
Xlscal Year by Class:
Elate Offlee with Distributors and Affiliated.
Warehouses
ALUkrted Warehouses and Departments with
Patrons . . . .
local Marketing by Warehouses ........
ITit Margins (receipts less expenses before
i patronage dividends or interest on stock
;i paid)
Tclci el Patronage Refunds paid
Elrlimd paid on Stock ....................
Ulvlde4 Margins
eeeeeeee
.$6,447,291.00
7.455.384.31
U88.974.08
352.443.54
301.833.20
45.581.33
5.029.01
i i ! ......
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YEAR ENDING. JUNE 30. 1946
:':;-.Th taxes listed in, ,He chart to the rVi nr',i the taxes paid hy .the.;vj
Farnlers Cooperative Exchange in lsG. , 1 1. ' ere-paid on, the-same.', j '
basis as any other business firm in North CaoJina. t
,;i.-?.!'.Had the Fanners Cooperative Exchange been required to ; operate
under the same rule as ordinary commercial coroorations. it would have 1 '
paid, in addition to the taxes listed on right, a franchise ; tax of $1.75 pert
$1,000 on its capital stock of $1,964,165.70 or $3,437.28 instead of the $270 If
paid as license tax in lieu of the franchise tax, or a total of $3,167.28 more I
than It paid. AlscirWuld have paid a 6 income tax on savings of
$45,581.33 that was distributed as dividends on capital stock and. on un-.
divided margins of $5,029.01. The total tax on these would have amount-"
ed to $3,036.62.
The total amount of additional taxes; the Farmers Cooperative Ex-;
change would have been required to pav in 1946, under the rule applied ,
to regular commercial corporations, wi'M hve amounted to only $6,203.90. .
We hereby certify that toe were employed by the Board
' of Directors to audit the books and accounts o the Farm
. ers Cooperative Exchange lor the year ending June 30r
'948, and that the above statements regarding, volume
'' margin and taxes are true.' v
A. T. Men & Company '.. '
Certified Public Accountants ' -
mm mm
.Sales Tax ..... .;-;V I , ..V.. r.... U19.205.3
4.573.C2
11,810.7:
W37X7
ii4i.it
,ri.8S7.:3
153X3
; i Old Age Tax
(Jnemployxnent
-tcity Tax ............;.....v........i....;
Countr ,Tax,;; ifi yi, .4i
Intangible .Tax .... ',
License Jax la.liea Franchise Tax
Truck' Ucense ..r. . .;.... .....
Chick Dealer . , . . ,.....;.;
City License and permits f
Seed Dealer . .'. .... .. . . . . . .
TOTAL
WHIM
if.'
wmAw-n -tfieiie. mmAummiE?
Statements have been made by representatives of the North Carolina: Mer-" -. , quired of ordinary commercial corporations, it would have paid $3,203.00 la gjidi-
more tax, it is obvious that it is not the amount cf taxes
1 " chants Association, inferring that farmer cooperatives were great octopuses reach-" j v Mional. taxes, "
lng out to grab everything and giving nathing'in.freturn. .In fact; they have.cre f ; . - With only $6,203.90
.Ts zr: s ; I -- t:-- J 1 l . Tj. t 1 1 r i . i .l-.J iL.l .1 ll
cted an impression that farmer cooperatives do not pay taxes. It has also been
' contended that the State ot Worth Carolina was losing millions ot dollars m.
' revenue ana that the fanner was not carrying his end of the tax burden.
f The Farmers Cooperative Exchange offers the certified statement of a repu
diable accounting firm, which: stated above that in t.he fiscal year ending June
30, 1946, the Farmers Cooperative Exchange, owned by the farmers ioU North
' Carolina and operating under the Cooperative Law, paid $62,163.51 in taxes on
exactly the same basis as any other business in the State.
Had it been required to pay the State income tax and franchise tax as re-
involved that many of the merchants are fighting, but the farmers and their rights
to own and operate their own cooperatives in order that they may better their eca-. v
nomic condition, enjoy a higher standard of living, and farm in a competitive M
world. ;; . H t". ZXtBJ1?
Farmers of North Carolina have always paid their share of taxes. They bad
4o list ev$ryk mule, every plow, and everything else they owned because those-
things were tangible. That has not always been true with other croups. y-:
Many merchants in the state own farms -and farm in direct competition wit) ,
'the farmers, who depend 100 on farming for a living, yet they frown upon thr' :
y idea of the farmer organizing his own business in competition with the merchani. .
I7hnt is the real! issue? Is it laiies or s it the gonner's right to organize his onn linninss
.i,w(Mifiy,,wtlfiM..to)
tWmVfay The Warmers (Cojpeiaime JEhascge , JSVajs QirWmimna9
It was not by choice or chance that the farmers
o! North Carolina organized their own business they
were forced to in order to exist.
For 66 years, they tilled the soil producing food
end fiber for their fellowman, waiting and. hoping for
Lelp and advice that never came.
Finally, after years of waiting and hoping, they
trere forced to provide help for themselves.
- Hdrdly had the farmer recovered from the depres
sion of the early twenties, his fourth. since the Civil
War, before the depression of 1932 was at hand. Dur
ing that year. North Carolina's 1,600,000 farm people
vera forced to accept conditions that will never be
forgotten. Cash farm income sank to an average of
13 cents per day per capita and an average farm
fszlly of five had but a total of 90 cents per day to
rsvlde clothing,' medical care, hospitalization, and
3 nsct religious, educational and social obligations,
-crllcally every farm market was glutted.
ITanT merchants, who up; until that time had.
:n the Tanner's chief counsel and adviser, failed to .
n I.i3 the gap and help the farmer.
T.I Ills point the farmers of the State began to
. :"i frfl them and take stock. They found out that
from 1925 to 1932 the. average per capita cash. income
had been only 38 cents per day and that over 50 per cent
of the State's 332,000 farm homes had depreciated
to the extent that they had a value of less than50t)
each. '
It was because of these deplorable conditions that
agricultural leaders ' decided something ' had to be
idone. North Carolina's farm T economy had"? broken s
, apart. - The farm markets were glutted and the farmer's '
' purchasing power was getting smaller by the year.
In most cases, many merchants, who had proven such
staunch friends in the better days when the farmer
had money to spend, turned their back on the farmer "'
once his money or farm was gone. They had made
little or no effort to help the farmer develop a market, .
but rather.-expected the farmer to sell en a glutted
, market during the fall months for whatever price he
could get. - - ' , - , - ' - .
The Farmers Cooperative Exchange was organ
' ized in 1934. Its first investment was in a modern seed.
. , and grain cleaning plant to aid the farmers in pro
- ducing more seed and grain.
The second move, was a fertilizer factory to assist '
the farmers in taking advantage of the information"
and research lata given out by the State Agricultural
College and North .Carolina Test Farms. :
' The third step was to build a feed mill to provide.
- a market for the farmer's grain and manufacture their
' own feeds by formulas recommended by the State's .:
; Agricultural College. It should also be pointed out
. that prior to this time they had no way to take ad
vantage of the research and information and experi
mental work of the College" and the Department of "
-Agriculture. - - - '
; ; Since that'da" fr Farmers Cooperative Exchange
i has provided numerous marketing i services for its
L- owner-members. ; In eggs alone,', it has .saved the
1 , farmers thovn of dollars and in grain and seed,
furnished the farmer a year-round market.
; Today, North Carolina farmers, through their cm
I oraanlzation and with the help of North Carolina Ctcia
College. and the North Carolina Department of Agrlr
culture, are rapidly turning North Carolina Into a
balanced agricultural State, which is the only hep
j for the future security of our economy. ,
The only way to make farming a profitable busi
ness is to lower cost of production and to merle t 1 1
such a way as to give farmers their share cf tl.3 c -
- sumer dollar-r-thls is what farmers axs dcizj C:z l
their own cooperatives.
' -Make Agriculture a profitable way c! LT cr.l
eur whole economy will be safe. - i.