Imperial Valley press., 1919-08-06
Owners of LemOOre Coop.
erative Creamery Refuse
to Fall into Financial Net
of Banker.
"HIGH FINANCE" DOES
NOT ATTRACT THEM
Out Of 800 Co-operators
Only Two Vote to Accept
Proposition Made by Pro-
mOter. KH

The answer the cooperative dairy
men at Lemcre gave to the offer of
assistance" from the Sacramento
banker promoter was decisive.
Out of membership of nearly three
hundred, at the meeting of the Kings
County Creamery association at Le-
moore on July 80, there were only
two votes for joining the Henderson
plan of association.
These dairymen had the advantage
of a years opportunity to observe how
the Henderson philanthropy is work
ing out, and J. M. Henderson Jr.
was present to explain all the details
of promissory notes and mortgages.
Dairymen in other parts Of the
state, who have had the years ex-
perience with Henderson's plan after
they met Henderson and heard his
promises, will be interested in he
in the proposition he made at Le-
moore. Briefly it was this:
He asked the owners of the CO.
operative creamery-the association
is made up Of dairymen of Portuguese
descent-to sell their property at an
appraised price to the San Joaquin
unit of his association. He said they
would be paid one-half in cash and
one-half in notes secured by second
mortgage on the plant.
In answer to question why he
wanted the dairymen to accept a
second mortgage as security for the
unpaid half of the proposed purchase
price, Henderson replied tl>; his as
sociation would sell the first mort
gage, through a note issue to raise
the money for the half of the propos
ed purchase price to be paid in cash.
The dairymen asked if that was the
entire plan, and Henderson told them
that each of them individually would
be expected to contribute five dollars
a cow-part in cash and part in notes.
The dairymen wanted to know if
that plan would work in ordinary trade
as in buying ranch, and whether
dairy rancher would want to give five
dollars a COW for the privilege of
deciding his ranch to buyer who put
up no money of his own, but offered
him fifty per cent cash from the pro-
ceeds of first mortgage and asked
him to take a second mortgage for the
balance.
Henderson admitted it might be
difficult to buy ranches that way, but
urged that it was a perfectly good
way to sell out cooperative cream
cries. He said the members, by part
ing with the title to their property,
would get the benefit of advice and
counsel from Sacramento, and that the
association boosted the price of but
ter.
But these Lemoore dairymen had
other questions. They wanted to
know where the association had boost
ed the price of butter, and whether
tie increase in butter prices was due
to any other cause than the depre-
citation of the dollar that has made
prices higher straight down the line
Of all commodities.
Then came an interesting bit of in
formation of the costs" of this type
of high financing. Henderson said
that the bond house of Stephens &
Company, that handles the mortgages
and the mortgage notes, receives six
per cent by way of brokerage. So that
for every 500 of mortgage put on
the dairymen's property only $94
comes out. The dairymen pay seven
per cent on the full 500 every time
$94 is borrowed on their property and
"high individual worth"
1t was explained that it is these
costs that make it necessary to levy
the five dollar a COW assessment OF