The Birmingham age-herald. [volume] (Birmingham, Ala.) 1902-1950, 1912-11-14
HARDING SUBMITS
PLAN To GET FUNDS
TODEVELOP F ARMS
Land Congress Ind0rses
Plan to Make Loans
on Alabama Farms
LIVELY DISCUSSION
OVER RACE PROBLEM
Train Load of Farmers from North
and West Arrived Yesterday
After Attending New Or
leans Convention

Mobile, November Especial. 1.-THE
plan of w p. G. Harding, president OF
the First National Bank of Birmingham
to form farmers loan and trust --Sua-
pany with a capital stock OF $1,000 O0oi
featured the morning session of the Ala
bama land congress today.
Frank u. Kohn. former president Of
the Montgomery Business Mems league
and Charles G. Abercrombie. who has
had charge of the Montgomery fair. were
other speakers.
In order to take sightseeing auto
mobile trip over the city and visit the
Mobile fair, members of the land con-
gress voted to have no afternoon ses-
sion.
Trainload of Delegates
An additional one hundred delegates to
the congress from points outside the state
reached here this afternoon when the
Louisville and Nashville train brought
farmers from New Orleans, who have
been attending the farmers national
convention. These men are from Ohio
Indiana. Missouri and several states oi
the middle west. They were also taken
on the automobile trip.
Twenty-Five ladies who accompanied
them were, entertained this evening al
the Battle House by the Home Economics
club.
Mr.. Harding's plan was Enthusiastically
received by the congress, among the
members of which were number OF
bankers. The Birmingham banker pre-
scented his plan this way:
THE gentlemen with whom l am asso-
ciated have authorized me to say thai
we have made study of this business
and our experience shows that it is safe
We know that we are generally bene.
fitted and are benelting the entire bust
ness of the state OF Alabama by bens
filing the farmers, and If the sentiment
Of the farmers calls for 1t we will b.
willing to bear the brunt and manage
Lment Of a farmers losn and trust com
tpsny with J capissl 81 not ieAA shal
I si,C0o,0o0 and whose duties would bo I,
make loans on first mortgages on farms
In Alabama with view to increasing
their productiyeness.
Issue Collateral Trust Notes
when we accumulated three or five
hundred thousand dollars of these first
mortgages we would put them together
in trust and use them as a basis of col
lateral trust notes with coupons. It will
be the aim of this company to sell those
notes to investors In other states and
reinvest that money in other first mort.
cages on farms, and repeat the process
ad lnfnitum.
xuapt ~ In - ~ ,yott tbot fbfe ,1at, fs
sound financially. II is no new or un-
tried plan. There are trust companies
of that kind In Illinois and Texas, and
other states throughout the United States
whose business is based on first mort
cages, not on farms, but on improved
town property. But can't you see that
farm mortgages, properly worked are a
much stronger proposition than the city
mortgage can be?'
Harding Plan Adopted
The land congress, in session late to-
night, adopted In its entirety the pro-
posal of Mr.. Harding to establish an
Investment bank in Alabama. The reso
luton reads:
Realizing the limitations OF the Com
mercial bank and the distinction be-
tween such banks and banks of in
vestment, this congress most heartily
mortgage, loan and trust company,
whose function shall be to give the
widest possible aid in making loans at
rate OF interest not TO exceed the
legal rate, and at a conservative valua-
tion on farm lands In Alabama, and
that the banking interest Of Alabama
be requested to take such steps as are
necessary to effect the organization of
such a company and at the earliest mo-
ment.
Negro Question
Interjection of the negro question at to-
nights session of the Alabama State
Land congress. at which about 100 north
ern men were guests, precipitated az
uninvited and at times excited discussion
that prolonged the meeting until after
midnight.
The discussion was started by state
fnents by J.. C. Irvine of Mobile, who
In his address said that the question Of
filling the south's empty acres with
people VIII never be solved until the
negro question is solved, giving to most
OF his hearers the Impression that on
account OF the presence OF the negro,
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