The county record. [volume] (Kingstree, S.C.) 1885-1975, 1914-12-31
COTTON LOAN COMMITTEES
VIII Consider Applications for
Loans from 500, ,0e0. 900 Fund.

Loans from SION, ,000. 900 FUND.
The Cotton Loan Fund committees
are now prepared to receive appli'
cations for loans from that fund.
The fund consists of 100000, 900,
subscribed by Northern and Western
banks, upon the condition that in
every case where a loan is made
some Southern bank will take one
fourth of the amount loaned. The
Northern and Western banks receive
Clsss A certificates; the Southern
banks Class B certificates. Both
classes of certificates draw 6 per
cent interest from date, and are
payable quarterly, and mature on
on or before February l, 1916.
All applications for loans must be
made by the owner of the cotton to
be pledged through some local bank,
which must agree to subscribe for a
Class B certificate to the amount of
one-fourth of the loan. The ap-
plicant for the loan must hayeIsome
responsibility outside of the cot+'"
on which the loan is to be made; ne
must be the owner of the cotton,
freed from any lien or membranes,
and the cotton must be warehoused
so as to protect it thoroughly from
the weather. The warehouse must
be under the ownership and control
of some other party or parties than
the applicant, and the warehouse
man or the warehouse corporation
must have some substantial respon-
sibility. The applicant must pledge
warehouse receipts for cotton at no:
more than five cents per pound, basis
middling..
Three per cent of the face value Of
the loan is deducted and deposited
| in a Guarantee Fund.-. This
Guarantee Fund" is used, first to
pay expenses; then to pay any losses
which might be incurred by the
holders of Class A certificates; and
then to pay any losses which might
be incurred by the holders of Class
B certificates. Whatever is left is
returned pro rata to the borrowers.
All loans bear 60 interest, paya-
BILE quarterly. If the cotton is dis
posed of during any intermediary
period, the interest must be paid up
to the end of the quarter. These
quarters are May l, September l
and February l, 1916. Of course all
cotton must be insured and the in
surance policy assigned to the Cot
ton Loan Fund committee. The To-
cal bank must be responsible for the
prompt payment of the quarterly
interest, the insurance premiums and
the warehouse charges.
The bank through which the ap,
plication is made must forward the
application, together with a check
for one-fourth of the amount of the
loan applied for. to the local com
mittee for the county. This com
mittee for our county is Charles "
Stoll. Esq, and DR. D C Scott.
| After the local committee has
passed upon the application it is for
warded to the State committee fol
South Carolina. This committee is
composed of the following: R c
Rhett, chairman; Ell Pringle, Jr
Henry Schachte. John M Kinard anc
C G Rowland.
If the application be approved by
this committee it is forwarded to thu
Cotton Loan Fund committee in the
city of New York. If this committee
approve the loan it will transmit tt
the local bank check for the amoun
of the loan applied for, less 80
which will be retained for the guar
antee fund. CHAs w SToLL,
Chairman Local Committee