Atlanta semi-weekly journal. (Atlanta, Ga.) 1898-1920, 1919-10-31
Cotton Banks Success
Forecast When Growers
Subscribe $500, 900 Stock

pointment of one man in each Of the
seven districts to distribute the
stock allotments Of the several coun-
ties. The plan of organization pro-
vides for districts to be designated
as northwestern, northeastern, mid
die western, central, middle eastern,
southwestern and southeastern. The
districts vary considerably in area
but each produced approximately
the same quantity Of cotton in 1909
and 1910, the years selected as the
basis for pro-rating the stock OF
the bank.
Basis Of Stock Sale
The stock is figured on g. basis
of about $1.45 per bale of cotton
produced in those two years. The
total number of shares at the start
is to be $1,000 and each share Is
to have a par value Of 500, making
total capitalization Of $2,100,000.
Three thousand shares Of stock are
to be allocated to each of the seven
districts, and the county ALLEGATIONS
are to be calculated on the basis Of
cotton they produced in 1909 and
1910. Each purchaser of stock will
pay an extra $25 for each share
purchased to create an operating
surplus of $525,000 With which the
bank will commence business.
In naming the seven men who
shall take the stock allotted to their
respective districts and distribute
the same, Governor Dorsey will be
guided by the advice of stockholders
as far as they go. That is to say,
he will invite suggestions from men
who have purchased stock, either at
the meeting Tuesday or in the next
few days, as to the proper parties
to place in charge of the distribu-
ton of the stock.
Sixty per cent of the stock is to
be owned by farmers. They can own
| the whole of the stock if they de-
sire to buy it, but sixty per cent will
| be reserved for them and will not
! be sold to non-farmers until they
have had an opportunity to buy 1t.
| The remaining forty per cent If not
| taken by farmers is open for sale
| to men engaged in other lines of
business who occupy close relations
with farmers. The purpose Of haV-
| ing sixty per cent of the stock own
| ed by farmers is to insure the con-
| troll of the bank at all times in the
| interest of the farmers.
AS soon as the requisite amount
Of stock has been subscribed, dtrec-
tors will be named and the bank will
then apply for it's charter. The new
Georgia banking law which goes in
effect on the first Of January re-
quires the names Of directors to be
stated in an application for charter.
The plan of organization as presented
by Governor Dorsey at the meeting
Tuesday provides for the stockhold-
ers Of each county to elect delegates
| to a district convention where two
| district directors shall be elected.
This will give a board of fourteen
directors, and they are to elect the
officers Of the bank. The terms of
the directors will expire at different
| intervals so as to insure continuity
of policy in the operation of the
bank.
Loans at Low Interest
Primarily the object of the Georgia
Cotton Bank and Trust company will
be to supply Georgia farmers with
loans for farming operations at low
rates of interest. The bank will be
member of the federal reserve sys-
tenn and as such will enjoy the re-
discount privileges that go with
membership.
In addition to its loan facilities,
%I,o