The Sentinel=record. (Hot Springs, Ark.) 1900-current, 1914-10-28

ducing states above mentioned, and
as hereinafter more particularly en-
planned; no class B subscriptions
shall be required except as condl-
tion of loan or loans to be made out
of the fund to be created and in such
event subscriptions shall not be re-
quired to exceed % per cent of the
amount of the loan applied for.
Each subscriber shall upon the
payment in whole or in part of the
amount subscriber for receive a par
| ticipation certificate transferable on
the books of the committee showing
on its face the class of subscription
represented there by and specifying
the terms under which the owner wi
be entitled to share in the distribution
of the moneys realized from the loans
made from the fund created.
'TAll class AZ and class b certirl.
Gates shall bear interest at the rate
of six per cent per annum, payable
quarterly.
THE cotton loan committee shall in
turn appoint committees in each OF
the cotton producing states hereinbe-
fore named and each state committee
so appointed snail in turn appoiut
local committees in sufficient number
to safeguard the practica! workings
ed to be subject to the approval of Tie
central committee and all committees
to serve without compensation OF any
kind.
"Tae banks of the city or New York
have pledged themselves to subscribe
to fifty million dollars of the one hun
dred million dollars of class "A GER
tificates, provided the remaining fifty
million dollars shall be raised within
reasonable time under the super
vision of the central committee by
banks in non-cotton producing states.
"All loans made from the fund
created shall bear interest at the rate
of per cent per annum and all ap-
plications for loans must be made
through banks or bankers who shall
in each instance accompany the ap-
plication for loans with a subscription
to class b certificates in an amount
equai to 25 per cent of the amount Of
the loan applied for. The subscriber
to class 'B' certificates applying @or
loan for a customer will not be re-
quired to endorse the note of such
customer and shall not be entitled or
permitted to receive from such GUS
toner the payment of any eommis-
sion on account of obtaining such
loan.
"All loans made shall be first ap-
proved by the proper local committee,
by the appropriate state committee
loan committee. When applications
for such loans have been approved,
as above provided, the notes evi-
dencing same, together with the co.
this plan, must be forwarded to the
office of the cotton loan committee
with instructions as to the disposi-
tion of the proceeds and must, as
stated. be accompanied with the sub
scription of the hank or banker, for
warding the application to an amount
of class b certificates equal to 25
per cent of the amount applied for.
'In order to make the subscriptions
to class 'B' certificates Immediately
available, each esubscription accom-
panied by an application for a loan
must be accompanied by a New York
draft of the bank or bankers through
which the application is made, drawn
to the order Of the cotton loan fund,
or in such manner as the cotton loan
committee shall designate, said draft
to be for an amount equal to 25 per
cent of the loan applied for and upon
the granting of such loan, class Is
certificate for this amount shall be
issued In this manner Is per cent ct
eacn loan will be provided by the
fund obtained from class A SUB
seribers and 25 per cent from the
class 81 subscribers.
"All loans shah be evidenced by
notes in form approved by the cotton
loan committee and shall be secured
by cotton on the basis of six cents
PER pound for middling in addition to
the guarantee fund hereinafter de-
scribed.
"As evidence of the security offer
ed, each note rendered with an appli-
cation for a loan must be accompanied
by receipts of approved warehouses
and by evidence of proper insurance.
All cotton accepted as security must
be located in warehouses or otlcr
buildings under the ownership and
control of some person, firm or cor
poration other than the borrower.
and in approving such loans the local
and state committees shall respective
ly pass upon the sufficiency of such
warehouse receipts and insurance and
shall be satisfied that such cotton is
free from all liens except that Great
ed by the loan or loans from the fund
to the borrower for which such cotton