In Indiana, the co-ops and the mutuals tried to escape the gross income tax when I was organizing that law, and we had to take it to the Supreme Court of Indiana, and there they used in Indiana exactly the same arguments they are now using on the national level.

If Indiana ever has a net income tax, I would predict that the farmers and I am a farmer; I know farmers; I know lots of them and I belong to the Farm Bureau, and I get stock and I get checks— would be the first ones to come forward and say, "We want to pay a net income tax in Indiana like everybody else."

All the polls we have ever taken in Indiana show the farmer does not agree with the co-op promoter on all things.

Then, what do they do? They attack those who exposed it. You start calling names, saying they are racketeers; they are profiteers, saying bad things, and saying, "We are good. Look what we have done. Therefore, we should continue to be in business."

Nobody wants to put them out of business, but I think there is something besides good necessary, sir, that is a measuring stick for taxes in this country.

Then what happens? They attempt to justify or to rationalize to talk about patronage dividends, and so forth. Then, of course, there were the political implications. For about 30 days things were not so nice in my State and in other States. Not the Farm Bureau, but the co-op group ran ads in various towns saying, "Here are the people who donated to the Indiana Tax Equality Committee. Boycott them." It did not take long before the cooler heads saw that that Ku Klux Klan type of action was not going to help.

Since then Mr. Schenk, Mr. Briggs, and myself have had many lunches together, and Mr. Briggs and I have played golf together; we belong to the same country club. We are trying to keep it on a high plane, and we are terribly distresed to find others trying to use diversionary tactics in attacking our good people.

And, of course, again you lawyers know there comes a time in this kind of scrap when they say, "Can't we compromise?" Instead of murder, can't it be manslaughter or something else? That is the status that it is in now.

I

It is being suggested to you as to what we do about reserves. never met the gentleman who spoke before I did and who made a very fine talk, but I heard nothing said about tax equality. All I heard was his telling this committee what we agree with 100 percent—that co-ops and mutual savings banks and building and loan associations and mutual insurance companies are good things. We just want them to be the same kind of taxpaying citizens as the other fellow is.

And to do that, Mr. Reed, it takes a lot of work; it takes a lot of writing, and it takes a lot of talking before the microphone, and in the papers, and so forth.

The CHAIRMAN. The reason I asked that question, Mr. Jackson, was this: I would like to give every witness who comes before our committee, whatever the controversy, credit for being honest and sincere in their motives. That is my natural inclination; and insofar as I am concerned, that is the way I approach this. But when it is thrown into a public record that the motives of some of these people are not what they should be, and that they are not conscientious people, but have an ulterior purpose of destroying some legitimate organization,

that is a serious matter and needs some clarification. We would like to get the atmosphere clear as to the motives and the purposes of your organization. If there is such a purpose in your organization, the National Tax Equality Association, as many seem to think there isand I do not question their honesty, as they seem to think it is soit ought to be cleared up or it ought to stand condemned, one or the other. That is the way I feel.

Mr. JACKSON. The motives of either side can be questioned, but we should keep our minds on what it is all about. If there is any desire on the part of this committee or any other committee to have a hearing on who is the most virtuous, the proponents of tax equality or the opponents, we would be glad to do this.

There is only one paper that comes across my desk; and, in my judgment, it has more misinformation and lies and so forth-the Cooperative Consumer. The only one worse than that is John L. Lewis's Mine Workers' Journal. That has nothing to do with tax equality.

What we want to do is have tax equality; what those who are opposed to us want is to keep their taxes back.

Why can't we keep it on that high plane, sir? If they do not like me and I do not like them, that is incidental.

Here is one thing that I would like to read you, and I am through. This is a letter that came to me this morning from a small lumber company in Fort Wayne, and addressed to an Indiana Congressman. It mentions Congressman Reed.

I understand Congressman Reed, of New York, a member of the Ways and Means Committee, questions the good faith of those of us who are trying to equalize the tax law. Now, how in the world he can bring up any argument that would justify any business from its fair share of taxes is difficult for me to understand.

Our people are surprised or sorry you interjected that angle into the thing.

Mr. REED. Mr. Chairman?

The CHAIRMAN. Mr. Reed.

Mr. REED. I get those same letters and telegrams from my district, and in fact a great many of them.

At this point, I would like to introduce for the record a certified copy of the articles of incorporation of the National Tax Equality Association and supplemental charter, dated the 14th of September

1949.

The CHAIRMAN. Without objection, that may be inserted in the record at this point.

(The information referred to follows:)

Certificate Number 26455

STATE OF ILLINOIS

OFFICE OF THE SECRETARY OF STATE

To All to Whom These Presents Shall Come, Greeting:

I, EDWARD J. BARRETT, Secretary of State of the State of Illinois, do hereby certify that the following and hereto attached is a true photostatic copy of the Articles of Incorporation and Amendment thereto, including the last Certificate of Change of Registered Agent and Registered Office, of NATIONAL TAX EQUALITY ASSOCIATION, INC., the original of which is now on file and a matter of record in this office.

IN TESTIMONY WHEREOF, I hereto set my hand and cause to be affixed the Great Seal of the State of Illinois.

Done at the City of Springfield this 14th day of September A. D. 1949. [SEAL] EDWARD J. BARRETT, Secretary of State.

Certificate Number 13340

STATE OF ILLINOIS

OFFICE OF THE SECRETARY OF STATE

To All to Whom These Presents Shall Come, Greeting:

WHEREAS a CERTIFICATE, duly signed and acknowledged, has been filed in the Office of the Secretary of State on the 11th day of October A. D. 1943 for the organization of the NATIONAL TAX EQUALITY ASSOCIATION, INC., under and in accordance with the provisions of "AN ACT CONCERNING CORPORATIONS" approved April 18, 1872, and in force July 1, 1872, and all acts amendatory thereof, a copy of which certificate is hereto attached:

Now, Therefore, I. EDWARD J. HUGHES, Secretary of State of the State of Illinois, by virtue of the powers and duties vested in me by law, do hereby certify that the said NATIONAL TAX EQUALITY ASSOCIATION, INC., is a legally organized Corporation under the laws of this State.

IN TESTIMONY WHEREOF, I hereto set my hand and cause to be affixed the Great Seal of the State of Illinois.

Done at the City of Springfield this 11th day of October A. D. 1943 and of the Independence of the United States the one hundred and sixty-eighth.

[SEAL]

STATE OF ILLINOIS,

County of Cook, 88:

EDWARD J. HUGHES, Secretary of State.

TO EDWARD J. HUGHES, Secretary of State:

We, the undersigned, BEN C. MCCABE, HOMER D. JONES, and J. L. WELSH, citizens of the United States, propose to form a corporation under an Act of the General Assembly of the State of Illinois entitled "An Act concerning Corporations," approved April 18, 1872, and all Acts amendatory thereof; and for the purpose of such organization we hereby state as follows, to wit:

1. The name of such Corporation is NATIONAL TAX EQUALITY ASSOCIATION, INC. 2. The objects and purposes for which the Corporation is organized are:

AUTHORIZED PURPOSE

The object of the Corporation shall be to conduct educational, scientific, and research activities relative to disparities in federal and state tax statutes and other laws and regulations affecting business, and to disseminate such information to civic organizations and representatives of business affected thereby, to the public and to federal and state governments. The Corporation shall be nonsectarian, nonpartisan, and no part of the net earnings, if any, of the Corporation shall inure to the benefit of any private shareholder or individual.

3. The duration of the Corporation shall be perpetual.

4. The number of directors constituting the first Board of Directors shall be twenty-two, and the name and address of each such director are as follows:

5. The location of the Corporation is in the City of Chicago, in the County of Cook and State of Illinois, and the post-office address of its business office is Room 906, 231 South La Salle Street, in said City of Chicago.

(Signed) BEN C. MCCABE,

374 New Chamber of Commerce Building, Minneapolis, Minn. J. L. WELSH,

519 Grain Exchange, Omaha, Nebr.

HOMER D. JONES, 2627 West Adams Street.

STATE OF ILLIONIS,

County of Cook, 88:

I, NORMA D. SENN, a Notary Public in and for the county and state aforesaid, do hereby certify that on this 15th day of September, A. D. 1943, personally appeared before me BEN C. MCCABE, HOMER D. JONES, and J. L. WELSH, to me personally known to be the same persons who executed the foregoing certificate, and severally acknowledged that they had executed the same for the purposes therein set forth.

IN WITNESS WHEREOF I have hereunto set my hand and seal the day and year above written.

To all to whom these Presents Shall Come, Greeting:

Whereas Articles of Amendment to the Articles of Incorporation duly signed and verified of NATIONAL TAX EQUALITY ASSOCIATION, INC., have been filed in the Office of the Secretary of State on the 7th day of January, A. D. 1949, as provided

by the "GENERAL NOT FOR PROFIT CORPORATION ACT" of Illinois approved July 17, 1943, in force January 1, A. D. 1944:

Now Therefore, I, EDWARD J. BARRETT, Secretary of State of the State of Illinois, by virtue of the powers vested in me by law, do hereby issue this Certificate of Amendment and attach thereto a copy of the Articles of Amendment to the Articles of Incorporation of the aforesaid corporation.

In Testimony Whereof, I hereto set my hand and cause to be affixed the Great Seal of the State of Illinois. Done at the City of Springfield this 7th day of January, A. D. 1949, and of the Independence of the United States the one hundred and 73rd.

[SEAL]

EDWARD J. BARRETT, Secretary of State.

Form NP-A

Date: 1-7-49. Filing Fee: $5. Clerk: W. E. L.

ARTICLES OF AMENDMENT TO THE ARTICLES OF INCORPORATION UNDER THE GENERAL NOT FOR PROFIT CORPORATION ACT

TO EDWARD J. BARRETT, Secretary of State, Springfield, Illinois.

The undersigned corporation, for the purpose of amending its Articles of Incorporation and pursuant to the provisions of Section 35 of the "General Not For Profit Corporation Act" of the State of Illinois, hereby executes the following Articles of Amendment:

1. The name of the corporation is National Tax Equality Association, Inc.

2. There are some members, having voting rights with respect to amendments; 3. (Strike paragraphs (a), (b), or (c) not applicable)

(a) At a meeting of members, at which a quorum was present, held on January 4, 1949, same receiving at least two-thirds (%) of the votes entitled to be cast by the members of the corporation present or represented by proxy at such meeting, the following amendment or amendments were adopted in the manner prescribed by the "General Not For Profit Corporation Act" of the State of Illinois:

RESOLVED, that the Articles of Incorporation of National Tax Equality Association, Inc., be and they hereby are amended by adding to the list of corporate purposes set out in paragraph numbered two thereof the words "and to urge the elimination of such disparities" so that the purposes of the corporation as set forth in the Articles of Incorporation shall be and read as follows:

AMENDMENT OF AUTHORIZED PURPOSE

"The object of the Corporation shall be to conduct educational, scientific, and research activities relative to disparities in federal and state tax statutes and other laws and regulations affecting business, and to disseminate such information and to urge the elimination of such disparities to civic organizations and representatives of business affected thereby, to the public and to federal and state governments. The Corporation shall be nonsectarian, nonpartisan, and no part of the net earnings, if any, of the Corporation shall inure to the benefit of any private shareholder or individual." IN WITNESS WHEREOF, the undersigned corporation has caused these Articles of Amendment to be executed in its name by its President, and its Secretary, this 4th day of January 1940.

[CORPORATE SEAL]

STATE OF ILLINOIS,

County of Cook, 88.:

NATIONAL TAX EQUALITY ASSOCIATION, INC., By GARNER M. LESTER, President.

OSCAR L. MALO, Secretary.

I, DARLENE B. WILSON, a Notary Public, do hereby certify that on the 4th day of January 1949 Garner M. Lester personally appeared before me and, being duly sworn by me, acknowledged that he signed the foregoing document in the capacity therein set forth and declared that the statements contained therein are true. IN WITNESS WHEREOF, I have hereunto set my hand and seal the day and year before written.

[SEAL]

DARLENE B. WILSON, Notary Public.