Taxing the " Co-ops " The arguments for and against
subjecting co-operative societies, as well as private traders, to taxation on their undistributed reserves were well put in the House on Monday by Mr. Chamberlain and Sir Herbert Samuel, and the general effect of the debate was undoubtedly to occasion regret that the Chancellor and the societies had not reached a friendly compromise. Mr. Chamber- lain said that he desired to put the co-operative societies in exactly the same position as the trading companies. This seems equitable, and it is true that the C.W.S. and the Scottish Society are so wealthy that the tax will mean very little to them. On the other hand, as Sir Herbert Samuel observed, it is illogical to tax the profits from mutual trading when they are allocated to reserves and exempt them when they are distributed as " and no one seriously suggests that the " divi " should be taxed. It is a pity an agreed settlement could not have been reached. As things are it may be doubted whether Mr. Chamberlain will find the game was worth the candle. His predecessors have all, concluded it was not. ,
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