The herald and news. [volume] (Newberry S.C.) 1903-1937, 1915-01-15
UNION NATIONAL BANK
TO AIT AS TRUSTEE
LOANS on COTTON NOW TO SUB.
SCRIBERS
To the Stock OF the COmpany-COr.
resp0ndence Between DIR. Stack
house and Mr. JOS.
Norwood.

Norwood.
The State, 14th.
! Correspondent contemplating loans
en- cotton receipts to the amount Of
$5OO,OOO, if so much be required, has
been exchanged between Wade Stack
! house, NJ. D., of Dillon, president OF
the South Carolina division, Southern
Cotton association, and Joseph Nor
wooa, president o. the Union National
bank of Columbia. Loans are TO be
made only to subscribers to the capi7
tai stock of the proposed Cooperative
Cotton company
Mr.. Norwood kas agreed that his
bank will act as trustee of the COM
rany until its capitalization shall ag-
gregate $1,000,000 and as to the loans
lie writes: I'VE would a,so be glad to
handle liberal line of loans =. :.
| and have no doubt We can arrange the
amount you suggest. Substantially
your letter covers all tnat We would
require
The correspondence follows:
Stackh0use to Norwood.
"JCoseph Norwood, President UnIol
National Bank, Columbia, S. C.
Dear Sir: The Southern Cotton
association has undertaken to secure
the capital stock of the Cooperative
Cotton company, which is being or
gaGized by tie farmers of the South
principally to finance cotton ware
house receipts and to sell direct from
/ the .arlners to the mill cotton and
! cotton seed AS president of the
South Carolina division of the Cotton
| association, l have agreed to use my
| best efforts to secure at least $1,000
600 stock in South Carolina BelieY-
, ing our farmers feel too poor to SUBJ
scribe to stock in any company, even
, though the aim and purpose OF the
! company is to provide cooperative SELL
help, unless they can get loans on tie
balance of the cotton they hold, |
wish to know if you can handle at
least 100000 of cotton arehouse re-
ceipts .or US. M1e will offer to give
vou receipts for cotton stor11 In
warehouses acceptable to your bank
il State warehouses where possible, or
approved by the State warehouse COM
| missioner. We wish loan on the
cotton at cents per pound, basis
middling, at rate of not exceeding
IS per cent, and tee notes to run lot
six months. We feel assured that as
soon as we secure the necessary capl-
tai stock or organize the company that
;; We can renew these loans or another
six months, at perhaps lower rate OF
interest.
"In seeking to arrange these loans
with you, it is cur purpose to conhne
the loans to persons subscribing to
! the capital stock of the Cooperative
Cotton company.
eve wish to know if your bank will
act as trustee for our proposed COM
uany until tie $1,000,000 capital stock
can be secured. In taking subscrlp-
tions we will limit the time for secur-
ing the necessary capital stock to
MAY /, 1915. By that date, if We can
not organize the company, We will re-
turn to subscribers their warehouse
receipts md subscription contracts,
less their pro rata share OF expenses
which can not exceed s per cent. II
YOU agree to act as trustee for the
company We will forward to you al
stock subscriptions, together with
warehouse certificates for cotton SUB
scribed
Your very tSlly,
(Signed "Wade Stackhouse,
president South Carolina Divlslon'
Southern Cotton Association.
columbia. January j..
Mr.. NorwoOd's Reply.
'Dr. Wade Stackhouse, President
soutn Carolina Division, Southern
Gotten Congress, Dillon, S. c.
Dear Sir: Replying to yours OF
the 12ta inst, beg leave to say that
the Union National bank will take
pleasure in acting as trustee for the
prcnosed company in so far as It's
charter will permit, which l believe
l =