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Mr. VOORHIs. They are important in the field of agriculture. The farmers pay for their own products.

The CHAIRMAN. Why do they not expand in the field of agriculture, instead of some other field not related whatever to their primary business.

Mr. VOORHIS. I am just trying to draw the comparison, and to point out that a group of American citizens who organize a cooperative business have just the same right to expand their business as have a bunch of people who organize a corporation.

The CHAIRMAN. They can do that if they pay the same tax. Mr. VOORHIS. I am telling you, Mr. Chairman, basically they do. The CHAIRMAN. Maybe the tax advantage does not exist. That is why I am asking you these questions so that I may hear both sides and come to a sound and correct conclusion. I want to hear both sides of it because I have an open mind on the subject up to this point.

Mr. VOORHIS. Yes, sir.
The CHAIRMAN. Mr. Reed?

Mr. REED. Mr. Voorhis, we are certainly glad to see you here. We really miss your fine mind over in the House. You made a great record while you were here.

Mr. Voorhis. Thank you, sir.

Mr. REED. When the patronage dividend is paid to the farmer, he pays the tax, does he not?

Mr. VOORHIS. That is right.
Mr. Reed. You are not a registered lobbyist ?
Mr. VOORHIS. Yes, sir; I am.

Mr. Reed. As a lobbyist, you are sending out letters to get contributions for your organization ?

Mr. Voorhis. No, sir. My organization is supported by dues from its members, amounting to 10 cents per year per individual.

Mr. REED. There is an organization here, I think known as the National Tax Equality Association. I have before me one of many letters which are rather interesting.

Inasmuch as the contents of this letter are directed almost entirely to me, I think I will read it:

NATIONAL Tax EQUALITY ASSOCIATION,

Chicago, Ill., February 17, 1951. DEAR FRIEND AND MEMBER: A calculated effort is being made by Congressman Daniel A. Reed of New York, a member of the Ways and Means Committee, to impugn the sincerity and good faith of the businessmen and taxpayers who are writing letters to the Ways and Means Committee and to Congress demand. ing tax equality.

At a public hearing of the Ways and Means Committee on Thursday, February 15, Chairman Robert L. Doughton revealed that thousands upon thousands of letters are being received from businessmen and taxpayers all over the Nation demanding that cooperatives be taxed the same as other businesses. Whereupon, Congressman Reed launched a vitriolic attack on businessmen who have written letters, characterizing them as "suckers,"

Congressman Reed's attempt to prejudice the committee as to the sincerity of you and other businessmen who want tax equality can only be answered in one way, and that is by more letters from you and your friends and business associates.

Therefore, I urge you to write immediately and have your friends do likewise, stating in terms that cannot be misunderstood your own personal and independent desire for tax equality.

The Ways and Means Committee has scheduled hearings on this subject for March 1 and 2. The following witnesses will represent NTEA and present the case for tax equality :

Dr. O. Glenn Saxon, professor of economics at Yale University.
Mr. Ralph Burgess, tax expert, formerly connected with the Joint Staff

and Treasury Department.
Mr. Joseph J. O'Connell, formerly Chief Counsel for the Treasury Depart-

ment. Mr. Clarence A. Jackson, executive vice president of Indiana State. Chamber

of Commerce. These hearings are the initial step in the big fight ahead for tax equality. This fight is going to be won by you who continue to write, phone, and talk to your Members of Congress and Chairman Robert L. Doughton, who, when your sincerity was questioned by Congressman Reed, defended you, and further stated that taxes should not be increased on anyone until the untaxed are taxed.

Please back up (hairman Doughton and our witnesses who are going to present the facts in your behalf. It is important that you send copies of any letters you write to Chairman Doughton to your own Congressman and ask him to also intercede with the Ways and Means Committee, demanding that they tax the untaxed before increasing taxes on anybody. Act now. Sincerely,

GARNER M. LESTER, President. Attached to that letter is an order blank, which is as follows:

NATIONAL Tax EQU'ALITY ASSOCIATION,

Chicago, II. Please send meand then there is a blank spacecopies of this letter that I may send to friends and business associations who are interested in the fight for tax equality.

Then there are lines for the name, address, and city and State.
Well, that is one of a series of letters.

Now, let us see who the contributors are and just make a check on that. Now, these are contri utors of $500 or more to the National Tax Equality Association, Chicago, Ill. The source of the information is the Quarterly Lobbying Reports, Nos. 1954, 2212, 2541, and 2805 filed by the National Tax Equality Association with the Clerk of the House of Representatives.

These are the contributions for the first quarter ended March 31, 1949: Alabama:

Alabama Power Co., Birmingham.

Stockham Pipe Fittings Co., Birmingham. Now, they are vitally interested in the farmer, no doubt. Arkansas: Arkansas Power & Light Co., Pine Bluff, another great

promoter of the farmers' interests. California : Rheem Manufacturing Co., San Francisco.

Now, remember that all of these are contributions of $500. They are not reporting anything under $500. Colorado: The Colorado Milling & Elevator Co., Denver. Connecticut:

Connecticut Light & Power Co., Hartford.

The Stanley Works, New Britain.
Florida : The Florida Power & Light Co., Miami.
Illinois:

Bowman Dairy Co., Chicago.
The Chain Institue, Inc., Chicago.
International Minerals & Chemicals Corp., Chicago.

Indiana : Public Service Co. of Indaina, Inc., Indianapolis.
Iowa : Maytag Co., West Newton.
Louisiana:

Louisiana Power & Light Co., New Orleans.

New Orleans Public Service, Inc., New Orleans.
Massachusetts: Samson Cordage Works, Boston.
Michigan: The Lufkin Rule Co., Saginaw.
Minnesota:

Fullerton Lumber Co., Minneapolis.
Marsh & McLennan, Minneapolis.
Lampert Yards, St. Paul.
Northwestern Hanna Fuel Co., St. Paul.
St. Paul Fire & Marine Insurance Co., St. Paul.

St. Paul Livestock Exchange, St. Paul.
Of course, they are very strong for the farmers, are they not?
Missouri:

Hart-Bartlett-Sturtevant Grain Co., Kansas City.

Fresh Milk Institute, St. Louis. Montana:

Retail Lumbermen's Association, Missoula.
Another outfit very strong for the farmers.
New York:

New York Wire Cloth Co., New York City.
Believe me, they are certainly helpful to our farmers up-State.

Ebasco Services, New York City.

Southern Agricultural Chemical Corp., New York City. North Carolina:

Carolina Power & Light Co., Raleigh. I wonder whether they inspired any of these letters to the chairman. Ohio:

The Bostwick-Braun Co., Toledo. Oregon:

Pacific Power & Light Co., Portland. Pennsylvania :

Abbotts Dairies, Inc., Philadelphia. Tennessee:

Orgill Brothers & Co., Memphis.
Texas:

Southwestern Public Service Co., Amarillo.
Lone Star Gas Co., Dallas.
Texas Power & Light Co., Dallas.
Tex-O'Kan Flour Mills Co., Dallas.

Texas Electric Service Co., Fort Worth.
Virginia:

Smith Douglass Co., Inc., Norfolk.

Virginia Electric & Power Co., Richmond.
Wisconsin:

Wisconsin Electric Power Co., Milwaukee.
Wisconsin Power & Light Co., Madison.

These are the contributions for the second quarter ending June 30, 1949: California:

Baker & Hamilton, San Francisco.
California

Packing Corp., San Francisco.
Dunham, Carrigan & Hayden Co., San Francisco.

Sloss & Brittain, San Francisco.
Colorado:

The Colorado Milling & Elevator Co., Denver. Idaho:

The Idaho Power Co., Boise.
Illinois:

H. D. Hudson Manufacturing Co., Chicago.
Standard Oil Co., Chicago.

Uhlmann Grain Co., Chicago.
Indiana :

Northern Indiana Public Service Co., Hammond. Kansas:

The Coleman Co., Wichita. Kentucky:

Belknap Hardware & Manufacturing Co., Louisville.

Louisville Gas & Electric Co., Louisville. Michigan:

The Detroit Edison Co., Detroit.

Consumers Power Co., Jackson.
Minnesota :

King Midas Flour Mills, Minneapolis.
Leamington Hotel, Minneapolis,
Northern States Power Co., Minneapolis.
Peavey Elevators, Minneapolis.
F.H. Peavey & Co., Minneapolis.

Peavey Lumber Yards, Minneapolis.
Mississippi : Mississippi Power & Light Co., Jackson.
New York: American Cyanamide Co., New York City.
North Carolina : North Carolina Power & Light Co., Raleigh.

. Ohio:

The Bostwick-Braun Co., Toledo.

Columbus & Southern Ohio Electric Co., Columbus.
Oklahoma : Oklahoma Gas & Electric Co., Oklahoma City.
Pennsylvania :

Duquesne Light Co., Pittsburgh.
Pennsylvania Power & Light Co., Allentown.

Philadelphia Electric Co., Philadelphia.
Texas:

Tex-O'Kan Flour Mills Co., Dallas.
Lumbermen's Association of Texas, Houston.

Lone Star Gas Co., Dallas.
Utah: Salt Lake Hardware Co., Salt Lake City.
Virginia: F. S. Royster Guano Co., Norfolk.
Washington: Washington Water Power Co., Spokane.
Wisconsin : Stratton Grain Co., Milwaukee.
Colorado: Public Service Co. of Colorado, Denver.
Florida: Florida Power & Light Co., Miami.

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Illinois :

Alexander Lumber Co., Aurora.
James E. Bennett & Co., Chicago.
Norris Grain Co., Chicago.

Uhlmann Grain Co., Chicago.
Indiana : Public Service Co. of Indiana, Indianapolis.
Iowa : Maytag Company, West Newton.
Kentucky:

Kentucky Utilities Co., Lexington.

Belknap Hardware & Manufacturing Co., Louisville.
Louisiana : Southwestern Gas & Electric Co., Shreveport.
Michigan: Detroit Edison Co., Detroit.
Minnesota : Marshall Wells Co., Duluth.
Missouri:

Hart-Bartlett-Sturtevant Grain Co., Kansas City.

Simonds-Shields-Theis Grain Co., Kansas City.
Montana:

Montana Power Co., Butte.
Montana Elevator Co., Great Falls.

Montana Flour Mills Co., Great Falls.
Nebraska : Roberts Dairy Co., Omaha.

I believe I heard recently they have been involved in a law suit. Are you familiar with that case?

Mr. VOORHIS. Fairly so.

Mr. REED. I wonder how many of these took a deduction for their contributions, and if so, in violation of the law, under the inducement and encouragement of the National Tax Equality Association? Mr. Voorhis. I don't know whether that company was one that did.

Mr. REED. I believe that was one that did.
New Jersey: Public Service Electric & Gas Co., Newark.
New York: Consolidated Edison Co. of New York, New York City.
North Carolina: North Carolina Power & Light Co., Raleigh.
Ohio: Columbus & Southern Ohio Electric Co., Columbus.
Pennsylvania : Duquesne Light Co., Pittsburgh.
Tennessee: C. M. McClung & Co., Inc., Knoxville.
Texas:

Texas Electric Service Co., Fort Worth.
Moncrief-Lenoir Manufacturing Co., Houston.
Peden Iron & Steel Co., Houston.

San Antonio Machine & Supply Co., San Antonio.
Utah: Utah Power & Light Co., Salt Lake City.
Wisconsin: Joseph Schlitz Brewing Co., Milwaukee.
Arkansas: Col. Robert Baker, Fones Bros. Hardware Co., Little Rock.
Indiana :

E. B. Martindale, Van Camp Hardware & Iron Co., Indianapolis.

M. J. Claussen, Hibbard, Spencer Bartlett & Co., Evanston. Michigan:

C. H. Buhr, Buhr Sons Co., Detroit.

E.B. Morley, Morley Bros., Saginaw. I wonder how friendly the many elevator companies are out there. I wonder whether they are contributing.

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