The Daily Ardmoreite. [volume] (Ardmore, Okla.) 1893-current, 1914-12-10
COTTON LOAN PROPOSITION
DISCUSSED BY COTTON MEN

as promulgated in tentatlveS rules
and regulations sent to Oklahoma
by the cotton loan committee OF
New York was picked to pieces" by
a body of cotton men and bankers
who met in the Commercial club
room Monday night The plan was
found TO be apparently impractical,
and should the cotton producer Sc
cure a loan under this basis he
would have little left at the end of
year.
All the cotton men of the city
were there. So was ID. n. Fink,
member of the Oklahoma committee,
and a. c. Trumbo, chairman of the
Oklahoma cotton loan committee.
The area, production, bales ginned
and other facts were secured and
then came the time to figure the
cost When the rules were read by
Mr.. Trumbo, setting forth that 20
per cent of the amount of the loan
should be held in reserve for mar
gin and per cent for overload
charges, and the insurance, interest
and storage were counted in on
basis of loan of cents on the
cotton, d. n. Fink cooked up his
ears and said:
Gentlemen, let's do some figur-
ing, Five hundred pounds of cotton
at cents a pound is $50. Deduct
$2i. Insurance will run rs cents,
storage $40, 3 per cent overhead,
- cents and interest $l.44. This will
total $55.3i Deduct this from your
$24 and you have $19,66, the amount
the loan committee proposes to loan
on bale of cotton. This runs about
$3.50 a hundred
1t was stated that no cotton man
would come in on this kind of loan.
for he could do great deal better
by making a private loan. The local
banker, ii was pointed out, could give
Mr. Cottongrower better deal than
this and come out with profit.
When the cotton loan feature was
first talked of, it was the intention
that the loan should be made on
a basis of s cents and the grower
TO stand the insurance and storage.
The margin of 20 per cent, cotton
men say, is out OF reason.
The matter of handling the cotton
samples was suggested as follows
All cotton to be classed at one place.
A man in each district to draw sam
pies on which a loan is applied for,
and send them to central point,
where they shall be classed. One
man can class on an average of 1000
bales a day without any assistance.
According to the rules laid down
by the eastern loan committee, no
loan will be made on anything less
than lew mddling. Not over 10 per
cent of the cotton ginned from now
on will class low middllng. and
loan cannot be secured on it,
Only cotton above this grade. now
stored in warehouses, will be of
sufficient grade for a loan.
Methods Of Procedure.
Mr.. Trumbo received this morning
the first really definite information
as TO the loan and the method of
procedure to secure loans that has
been available. The cotton loan fund
will amount approximately to $l35,-
100000. The subscriptions will be
divided into two classes, class A and
class T. The class B subscriptions
are drawn from the cotton producing
states and eleven states are repre-
sented-Alabama, Arkansas, Florida.
Georgia, Louisiana, Mississippi, Mis-
souri,, North Carolina, Oklahoma,
South Carolina, Texas, Tennessee
and Virginia.
Any bank in asking for a loan must
subscribe 20 per cent of the amount
desired. All of the class A and
class b certificates bear interest at
6 per cent, payable February l, 1915,
and every three months thereafter
At the discretion of the cotton loan
committee it is possible that the
first interest payment may be made
May l, instead of February /.
Loans to Bear Interest
All loans issued will bear interest
at 6 per cent. payable in New York
at the headquarters of the fund, and
banks securing loans for customers
mlst send New York drafts. Each
subscriber must guarantee the prompt
payment of the interest and all
warehouse and insurance charges, but
need not indorse the customers
rofpS