The Richmond palladium and sun-telegram. [volume] (Richmond, Ind.) 1907-1939, 1919-04-15
Nv WILLIAM p. sANeoRN.

BY WILLIAM X. SAN6ORN.
LANCASTER Pa, April Is. - The
Seed Leaf Tobacco Growers company
OF this city has lately begun to see
daylight, according to Charles F. Hess,
secretary and general manager. ut
took us five years." said Mr.. Hess,
"to get a paid in capital of $4,000
and there we stuck up to January
last.
within the last three months we
have added more than 100000 to our
cash assets from sales Of stock and
have now about $250,000 worth OF
stock outstanding"
There must have been some good
reason for this sudden growth, and
there was. The needs Of tobacco
farmers, who rebelled at the inaction
of the independent packers, and the
low prices offered for the 1913 crop
was the urgent incentive, we suppose.
The Seed Leaf company Is incorporat-
ed for 100000, but is Is not intended
TO push the sale Of the balance OF the
stock at this time; lot OF 1t will
be held In reserve for future emer-
gency.
A lot of this stock has been paid
for In tobacco and nearly all OF that
tobacco lies here In storage. This
means that while out OF sight" so
far as farm holdings are concerned,
It is still to be marketed and figures
in the visible supply. And 1t Is the
visible" supply which counts with
the manufacturer or his agent, wheth-
err on farms or in warehouses OF In.
dependent packers.
Farmers Own Bank.
The history of the Lancaster seed
Leaf Tobacco Growers company Is
story of timely interest, and rich in
suggestion to Ohio and Indiana tobac-
co farmers. Before we go into the
details of most interest let us state
that the present management Is not
the same as that which succeeded so
slowly in inspiring confidence. Mr..
Hess is later man at the Seed Lear
bat. Just why, in this apparently rlch
field for such a cooperative comDlna-
ton success was so slow In arriving
need not form part OF the story.
That this has been a going concern
for some time and that it's fight for
a place in the industry resulted in the
establishment of a strong and pros
pering bank is the outstanding feature
in what is to follow. There would
seem to be room for few such pack
ing corporations and banks in the
Ohio tobacco counties, judging from
present conditions in the leaf mar
ket.
Couldn't Borrow Dollar.
In the early days Of this concern,
whether from lack Of confidence In
its management, or because of oppo-
sition in financial quarters, the Seed
Leaf folks had hard shedding. We
are told that very visionary and IL
logical enthusiast was the inception
of the company, but this information
does not come from any members OF
the concern. 1t has been volunteered,
indeed, by two or three men in the
tobacco business, who questioned me
with reference to what 1 had learned
during my visit to Lancaster. Now
as to the founding Of the bank.
There came an evil day when the
company had to raise a little matter
of $4,000. What to do about 1t?
Well, lot of strong farmers jointly
and individually endorsed a note
and all was serene. But not so fast,
gentlemen. A perfectly good note is
one thing-cash in hand another. AS
Mr.. Hess tells it, that note was ped
died" all over Lancaster, and every
bank turned It down; didn't care to
discount 1t. Finally an officer of one
large bank admitted that the note
was gilt edged. and that they had
plenty of loanable funds. But" said
the banker, you can't get any money
on that note at this bank"-and they
didn't; nor at any other bank, for
that matter.
When the farmers who had endors-
ed the $4,000 note learned Of It's turn
ing down by the several banks they
went up in the air" They were mad
enough to get into action and the
next day Lancaster's three evening pa
pers announced that there was to be
q new bank in town within the next
few weeks and that the farmers were
back. under, and on all sides OF the
new financial venture.
The effect of this announcement
was electrical. 1t seemed to auto
,matically increase the supply Of loan
able funds, over night. The next day
that Seed leaf note would have been
welcomed at most Of the Lancaster
county and city banks. One bank
phoned, 1t is said, asking that the
note be brought to his bank for dis
count, as ne WOulu Ue 6ldu " dSSoLu-
modate.
Agricultural Trust Company.
The crisis was bridged, the note dis
counted and, everything was once more
lovely. But the purpose to establish
a bank was not DETECTED. The Ag-
ricultural Trust company resulted and
was quickly in operation. 1t is es-
sentially farmers bank, and
would you believe 1t, it Is opened for
business at o'clock every bank day
morning. When does 1t close? 1t
closes at p. IN. except on Saturdays.
when it postpones the closing until
o'clock at night.
This young institution has $25O.O0O
capital, healthy surplus and $4,000
600 in deposits. One OF the officers OF
the bank stated that their deposits
were slightly over two million on the
date of my visit, and their assets. in
round numbers, S2,300,000 on that day,
as | recall. He also stated that of
their large list of stockholders fully
50 per cent are farmers, that is to
say in this instance, tobacco growers,
il is to be presumed.
rr;,,na moo wbpn ono could not DOr-