The Birmingham age-herald., 1914-10-28
DETAIL OF PLAN FOR S135, 100000 COTTON
 LOAN MADE PUBLIC
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istration of the fund to be known as the cotton loan committee and shall delegate to such committee such powers as may be necessary 10 properly carry out the purposes of this plan. The cotton loan committee to be named by the central committee shall consist of the following:
 w. P. c. Harding chairman. Wash ington. D. C.: Paul NJ. warburg. Wash ington. D. C.; Col. E. M. House, Aus tin. Tex; Albert II. wiggin, New York; James s. Alexander. New York: James B. Forgan, Chicago: Festus J. Wade, St. Louis: Levi L. Rue. Philadelphia; Will liam A. Gaston. Boston.
 The cotton loan committee shall in turn appoint committees in each of the cotton producing states hereinbefore named, the title of such committees to include the name of the state in which such committee shah be required 10 acr for the cotton loan committee, and each state committee so appointed shall in turn appoint local committees in suffi- cient number to safeguard the practical workings of the plan. All committees appointed to be subject to the approval of the central committee and all commit tees to serve without compensation of any kind.
 0,O00,000 From New York
 "The banks of the city of New York have pleded themselves to subscribe to $50, ,00o.0 900 of the si0o0o0,ooo of the class certificates, provided the remaining $50 ooo,0o0 shall be raised within a reasonable time under the supervision of the cen- tral committee by banks in non-cotton producing states.
 "All loans made from the fund ere ated shall bear interest at the rate of 6 per cent per annum and all applications for loans must be made through banks or bankers who shall in each instance accompany the application for such loans with a subscription to class B certificates fin an amount to equal to 25 per cent of the amount of the loan applied for. The subscriber to class R certificates apply ing for a loan for customer will moi be required to indorse the note of such customer and shall not be entitled or per mitted to receive from such customer the payment of any commission on ac- count of obtaining such loans.
 "All loans made shall be made first approved by the proper local committee, by the appropriate state committee and by two members of the cotton loan com mittee. When applications for such loans have been approved as above provided the notes evidencing same, together with the collateral required under the terms of this plan, nut be forwarded to the office of the cotton loan committee with instructions as to the disposition of the panied with the subscription of the bank or banker forwarding the application to an amount of class B.
 Tn addition to the security herelnbe- fore specified, every applicant granted g loan from the fund shall pay to the cot ton loan committee q sum equal to per cent of the face amount of the loan granted and the applicant shall authorize the cotton loan committee to deduct or withhold this amount from the proceeds of such loan. All sums so paid. together with all interest earned from the invest ment thereCf, shall constitute a mutual borrowers guarantee fund, to be used first. for the payment of expenses of administration. which 1t Is estimated will in no event exceed one-eighth of 1 per cent of the loan fund created: second tc make up any deficiency in the amount available for payment of the class A and class B certificates. with interest result ing from losses sustained by reason of sny loans made from the said loan fund or otherwise; the balance, including all interest earned thereon. shall be returned pro rata to the borrowers
 Control Guarantee Fund
 ''The cotton loan committed shall con. trol the guarantee fund so created and rnay, in It's discretion, invest all or any portion thereof in class A certificates pro yided for. s
 These applications for loans shall be made not later than February 1, 1915, ant all loans made shall mature on or before February l, 1916; provided. however, tha' the central committee in its discretion may authorize the cotton loan commit tee to extend any or all loans for a February i. 1916. If in the judgment oi said central committee. conditions at that time Justify such extension.
 Calls for payment of subscriptions to class A certificates shall be made near- ly pro rata as possible. Tn the event that or February 1, 1915, applications for loans shall not have been received to the ex- tent of the full amount subscribed. the fund shall nevertheless be closed at the amount that Is applied for and loaned, and class A subscribers shall thereupon be released from the payment of the balance of their subscriptions, which have not been up to that time called for. Pro- vided. always that the fund shall not Dc construed to have been established for any purpose until class A subscrp- tons shall have been received to the extent of Sl00.0o0,0OO.
 Applys Against Both Classes
 AS money becomes available for re- payment to the subscriber. they will be spplied against both class A and class B certificates. but the percentage of reduction in tho case of class B certif- cates shall be one-half of that In the case of class A certificates until the amount of the latter outstanding shall be reduced to the amount of class B cer- tificates then outstanding, after which the percentage of reduction shall be the same. Tor example, if payment Is made on the class A certificates to the extent of 10 per cent of the face amount of such certificates. then outstanding, a payment shall at the same time be made upon the class B certificates to the extent of per cent of the amount then outstand- ing. Again, if payment on the class A certificates is made on an amount equivalent to 3h' per cent of the amount then outstanding, at the same time n payment on account of class B certifi- cates will be made of an amount repre- senting 1% per cent of the aggregate of class certificates then outstanding, which method of payment shall be con- tinued until the amount of the two classes of certificates outstanding shall be the same, after which all sums distributed shall be divided pro rata among all cer- tificate holders. regardless of the two classes.
 
 Soldiers Confident
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