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mittee exposed during the last war. At that time, the Government built war plants and gave the operators an option to buy, or we gave them accelerated amortization. The Truman committee noted that in negotiating contracts for war procurement the manufacturers included in their cost of production the accelerated amortization on which the Government was already allowing them the tax benefit. We thus had the spectacle of concerns getting a special concession from the Government using the concession to jack up their prices to the Government. Today we are repeating the same double rewards. One reward or subsidy to big business for building plants which they should have built long ago is questionable. A double reward is special privilege carried to a scandalous degree.

We hope that the committee will comb our tax laws thoroughly to eliminate loopholes, including special treatment of utilities, railroads, and airlines.

If there are to be any favors, they should go to small and new business enterprises which will reestablish a measure of competition in the American economy. We favor a much stiffer excess-profits tax.

Hon. R. L. DOUGHTON,

LEXINGTON GROCERY CO., LEXINGTON, N. C.,
High Point, N. C., February 26, 1951.

Chairman, House Ways and Means Committee,

Washington, D. C.

DEAR UNCLE BOB: From here we gather that your committee is being bombarded with requests to tax co-ops and we would just like to pass our sentiments along to you on the same line. We are honestly of the opinion that this is the biggest leach upon our tax system. In fact, why should small businesses like ours be taxed to death from all sides (and probably more) when these fellows are allowed to go tax-free? My family lives on the farm and are members of FCX; therefore, I can speak with little know when I say that they get a lot of things free where we fellows in business are taxed for same.

Mr. Truman seems to think that corporations, etc., can carry more taxes and frankly we do ont see it.

The co-ops in our State are making strides in all fields and in fact they are expanding in all lines of merchandise and also in size and quantity. We have some good friends who are co-ops but they are not good enough friends to tax us out of business and let them remain untouched. I commend you on the stand you are taking and urge you to hold your ground as you will certainly not lose your prestige and power by the stand you are taking. Tax these fellows along with the rest of us and we will have equal responsibilities but, until then, taxing part and the rest will ride free just is not right, it is unjust, unfair, and uneverything-imaginable to us in business who are taxed. Thank you for your attention in this matter. Sincerely yours,

Hon. ROBERT L. DOUGHTON,

LEXINGTON GROCERY Co.,
FRED C. WILSON.

HARRISBURG, PA., February 28, 1951.

Chairman, Committee on Ways and Means,

House of Representatives:

In connection hearing your committee March 1 and 2 on subject taxation of cooperative organizations, the Pennsylvania Petroleum Association, a trade association of independent businessmen distributing petroleum products, respectfully urges that all cooperative organizations which compete with businesses that are taxed be subject to same rate of taxes. Will appreciate your incorporating substance this telegram your committee records. Formal resolution expressing these views forwarded to you November 21, 1950.

JAMES E. STEVENS,

Executive Secretary, Pennsylvania Petroleum Association.

RALEIGH, N. C., February 28, 1951.

Hon. R. L. DOUGHTON,

Chairman, House Ways and Means Committee,

House Office Building:

This association feels that all individuals or groups who are in competition with other businessmen should bear the same tax burden. We are not opposed to farm cooperatives being favored when they stick to their original purposes, but when they manufacture, process, or market articles not ordinarily associated with agriculture at the original source they should be taxed the same as their competitors.

Please incorporate this in your committee hearing record.

NORTH CAROLINA OIL JOBBERS ASSOCIATION, By W. A. PARKER, Secretary.

(Whereupon, at 5:35 p. m., the committee adjourned to reconvene Monday, March 5, 1951, at 10:30 a. m.)

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