The news scimitar. (Memphis, Tenn.) 1907-1926, 1919-05-13
COTTON
ASSOCIATION PLAN
IS ISCOMPREHENS|VE
Entire Charter Made Public at
New Orleans Reveals Excel
lent Provisions for FinanC-
ina Sales of Staple Abroad.
CAPITALIZATION PUT AT
$100,000,000 TOTAL
Arrangements Made for vir.
tuaI Loans Upon Foreign
Securities Thus Aiding Ma
tionS in Need of Money.

NEW ORLEANS. La. May 1S--Ths
proposed plan OF organisation for tfe
American Cotton Export Financing
corporation, a pool of cotton producers
and dealers for export trade, as made
known here today at a conference OF
cotton interests, provides for a cor
poration capitalized at S1Oo, ,0Oo, 900, to
he paid largely in Liberty bonds.
The organization plan also provides
mat the corporation might lend money
70 dealers or shippers on security OF
warehouse receipts In cases where cot
Ton Is being assembled for export. Thus
would finance the entire export
The corporation would be empowered
10 accept n wide variety OF foreign Sc
curities, and to market them in this
country or TO issue bonds OF Its own,
IL also could acquire control of foreign
cotton manufacturing plants
The draft Of proposed powers for the
corporation will be submitted later this
we, meek 10 tne entire conference of cot
ton interests representatives and adop-
tion OF the plan without material modi.
fication Is expected. -
The authorized capital stock, although
tlxed at Sl00,00o,000 in the tentative
draft, may be reduced. The corpora
ion would be authorized to begin bust
ness when the amount OF capital stock
subscribed reached $40, 900 O00,. with 80
per cent paid In, and payments might
pc made either In cash, Liberty bonds
Or notes or treasury certificates OF In
ueptedneas BY this means approx
nateiy NOOoO,0o0 worth OF government
securities would be the basis for finan-
| clal operations at the start.
In addition to finding market
ABROAD Tor cotton and cotton products
and making the necessary contracts,
lne corporation would be empowered to
deal " notes, drafts, checks, bills sf
exchange. acceptances, cable transfers
or other evidences 81 indebtednesa. II
could take, bonds OF foreign governs
ments' or of foreign banks, syndicatss
or other private business firms and
make loans to those foreign interests
on the security OF their obligations. BY
thls means the corporation virtually
! would sell its cotton to foreign pur-
chasers on credit, raising money ii
this country on security OF the foreign
bonds to finance the operations,
Can Take Stock.
| Another power proposed for the cor
poration is to permit 1t to take stock
In foreign commercial or Industrial en-
terprises connected with the purchase
or manufacture OF cotton, This might
involve the acceptance Of mortgages
| on foreign plants and thus gave the
American cooperative corporation q
hand in the management of foreign
| firms.
Another power would be "to acquire
the good will. business, rights, property
and obligations OF any individual part
nership or, corporation carrying on
| business similar or cognate TO the
business which this corporation is au-
thoriZed to conduct and to pay therefor
IN cash bonds or other obligations of
this corporation" This would pave the
way for the corporation to absorb other
cotton exporting organizations and is
understood to constitute one OF the
| principal subjects OF disagreement
among the organizers.
Cotton dealers would act through the
corporation In export dealings, but
might, II they chose, ship goods abroad
| In their own name and receive loans
| Continued on Page 12 Column 1 \