dues Increase, when,*put into called undue pressure-by -.the the present or4,er. '<>, J •
effect, will cancel-' 'the ADA u. S. Secretary .of Agriculture , The ballots , ,’iylll * not,- be
checkoff without a loss in milk ’in promoting .market orders., counted until next week-, and
promotion for the local mar- He said midwestern dairymen, - the Individual 1 .cooperative
ket 'by the association. after defeating a proposed Votes will be cast in the
continued in the Lancaster —"- amendment to a marketcorder, November 25 referendum.
area - - - _ - **y ere tc ? ld . y the feeretoy. Abner Risser and Simeon
Honan noted that members • Co-Op Agency - Now you fellows get /together Hortonj Mount Joy, represent
'who have -already signed a de- (Continued from Page 1) vote n £ at ° r won I ©d the Mount Joy Milk**Pro
duction authorization to give He asserted, **A No vote “ ave aay oraer at a • ducers Cooperative at thereon
two cents a month to ADA, would not be an automatic 'Earlier t-h e membership yention.
the association will return en( j 0 j federal orders,” and* voted on recommended deci
these deduction cards to mem- added that he could not re- sions op the New' York Fed- ,
bers and notify members’ member when a proposed ord- eral order. The proposed . j.
dealers to stop the present er had ever been defeated* in changes, among other things.
Milk Co-op Approves Increase
Of Two Cents Dues Per CWT
A two cent per hundred
weight increase in dues was
approved ‘by delegates o£ the
Interstate Milk Producers Co
operative Thursday at the or
ganization’s closing sessioir in
the Benjamin Franklin Hotel,
Philadelphia.
The vote'Came after a one
hour discussion at the 27th
annual meeting, and endorsed
action of the do-op’s board of
directors who had earlier pro
posed the dues increase. One
cent of the checkoff on milk
shipped .will go toward finan
cing the cooperative activities
and the othei cent will be used
for milk promotion activities
probably through American
Dairy Association, athough the
resolution did not specifically
restrict the use of the increase
The increase in funds f o r
operation of the cooperative is
needed, it was explained, be
cause of the change last yeai
in the Internal Revenue law
which requires cooperatives to
return m cash 20 per ceent ot
each year’s net savings.
The increase m commission
was the third since 1947
when dues went from four to
five cents 'per hundred weight
Another one cent increase be
came effective m 1953.
Because of the new tax rul
ing general manager James
Honan said the cooperative’s
reserve account would have
dropped from the present
$740,000 to $'602,000 in the
next seven years He added
tnat market risks are contin
ually rising even as income
y ould have dwindled
The extra one-cent commis
sion increase, at today’s pres
ent voume of member's milk
of one billion pounds, will
bring in an average of $lO5,
000 more net savings a year.
Honan said the cash return
“foiced” toy the IRS legisla
tion will amount'to about $42,
500 equal to about one
half cent a hundredweight on
present pioduction.
“So for the one-cent in
creased commission 'for Inter-
State finances,” he said,
• naembei s wvU get about one
half cent back each year ”
Honan said Inter-State has
■written assurances from both
the American and Atlantic
Dairy Associations that the
piesent piogiain, which am
ounts to 4,500 a year, will be
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