The Union times. [volume] (Union, S.C.) 1894-1918, 1915-01-01
TO TAKE CHARGE
OF COTTON LOAN
Rhett Names County Cimmiitre Mem
bers-Some Changes Urged.

Charleston, Dec. 29.-Stating that
chairmen of the various State COM
rpitteeS felt that a great many |
changes ought to be made in order to
popularize the loan, r. G.. Rhett, the |
chairman of the South Carolina Stat
committee cotton loan plan that orig
mated as the st. Louis fund. ISSUED
today list of the county committees
and committeeman through which the
plan will operate in this State.
The committees as finally arranged
in South Carolina vary in number to
suit the needs of the localities which
they represent, as surmised hy the
State committee, which listed its local
nominees at meeting held in Char
lesion more than two weeks ago.
Concerning the operation of the
loan, Mr.. Rhett stated:
"The State committee has COM
pleted its appointment of the local
committees for each county.
application blanks for loans have
been forwarded to every bank in the
| State, with full instructions as to
what has to be done in order to secure
loan. Briefly stated a borrower
must first find some Southern bank,
which is willing to take a class "B"
certificate to the amount of nne-
! folrN of the loan he desires. When
-thiSs done he makes note, payable
6NtOer cent, payable quarterly on the
firSt day of May, August, November
and February, 1916, secured by cot
ton on a basis OF 5 cents per pound
middling. No cotton below the grade
of Glow middling" will be considered.
The application must be made in
amounts of $500, or multiples thereof,
secured by 20 bales on $500, and
multiples of the 20 bales for larger
amounts. The cotton must be stored
in an Independent warehouse. The ap-
plicant must be a responsible party,
exclusive of the cotton pledged. The
insurance premiums must be paid and
the policy assigned. The local bank
| must be responsible for the regular
payment of interest and warehouse
| charges.
From the face of the loan there is
deduCred 3 per cent, which is Ge-
posted III a guarantee fund tc be
used, first, for the payment Of eX-
penses; second, for the payment cf
any loss which may be incurred bv
i >,
and third, for the payment Of any
loss which may be incurred by hold
ers of the class 'B' certificates. What
ever is left is divided amongst the
borrowers pro rata.
"Inasmuch as every bank in the
State has copy of the application
| for loans and instructions with refer
ence thereto, an owner of cotton who
desires to avail himself of the oppor-
tunity offered is invited to visit his
local bank and see if he can make
the proper arrangements under the
terms of the circulars in it's posses
sion. A borrower can sell his cotton
when he pleases but he must pay the
interest up to the quarterly interest
bearing period next succeeding the
sale.
Z "The blanks for applications anC
instructions to local committees have
been sent out over the State and any
one desiring loan can obtain same
by securing the cooperation of any
local bank to the extent of one-quar.
ter of the loan desired Some loca
bank must take quarter of this
loan in class b certificate or The
general committee in New York will
not receive the application.
"The chairmen of the various State
committees felt that a great many
changes ought to be made in order tc
popularize the loan, but they founc
that too many of the subscriptions
had already been signed under the
terms above referred to and there
was no possibility of making any
changes"
The committee for Union county
e. Nicholson, chairman; J. d. Arthur
r. P. Morgan.