Pine Bluff daily graphic. (Pine Bluff, Ark.) 1893-1942, 1919-05-14

ANNOUNCE PLANS
FOR GIANT COTTON
CORPORATION
capitalization of 100000,
600 Will Be Largely Paid
in Liberty Bonds.

New Orleans, May 13.-The pro-
pressed plan Of organization for the
American Cotton Export Financing
corporation, pool of cotton pro.
ducers and dealers, for export trade
as made known here today, at a
conference Of cotton interests, pro.
vides for corporation capitalized at
500, 100000 to be paid largely in
Liberty bonds.
The corporation would be empower
ed to accept a wide variety of foreign
securities and to market them in this
country or to issue bonds of it's own
Also could acquire control Of cotton
manufacturing plants.
The organization plan also provid-
es that the corporation might lend
money to dealers or shippers on Sc.
curity of ware house receipts in cases
where cotton is being assembled for
export. Thus it would finance the en-
tire transaction.
The draft of proposed powers fol-
err this week to the entire conference
of cotton interests, representatives
and adoption of the plan without ma
terial modification is expected.
The authorized capital stock, al
though fixed at $1O0,0O0,000 in the
tentative draft, may be reduced. The
corporation would be authorized to
begin business when the amount Of
capital stock subscribed reached
$50 100000 with so percent laid ill.,
the payments might be made either
in cash, Liberty bonds or notes, OF
treasury certificates of indebted
, ness. BY this means approximately
$tO0, 00O,O 900 worth Of government Sc
curities would be the basis for finan.
cial operations at the start.
Has Other Privileges.
In addition to finding market
abroad for cotton and cotton pro.
ducts and making the necessary con
tracts, the corporation would be EN-
powered to deal in notes, drafts
! checks, bills of exchange, acceptances
cable transfers or other evidences OF
/! indebtness. It could take bonds of for
eign governments or of foreign banks
syndicates, or other private business
firms and make loans to those foreign
interests on the security of thei1
obligations. BY this means the cor
poration virtually would sell its cot
ton to foreign purchasers on credit
raising money in this country or
security of the foreign bonds to fin
ance the operations.
Another power proposed for the
] corporation is to permit it to take
stock in foreign commercial or indus
trial enterprises connected with tine
purchase or manufacture OF cotton
This might involve the acceptance o.
mortgages on foreign plants ant
thus give the American cooperative
corporation hand in the manage
ment of foreign firms.
Another power would be "to acquire
the good will, business, rights, prop
erty and obligations of any indivld'
ual partnership or corporation car
rying on a business similar to cog
| nate to the business which this cor
i poration is authorized to conduct ano
to pay therefor in cash, bonds OF
other obligations of this corporation.
This would pave the way for the cor
poration to absorb other cotton eX-
porting organizations, and is under.
stood to constitute one OF the prlnclpa
! organizations, and is understood to
constitute one of the principal sub
ieets of disagreement among the or
ganizaers.
will Aid Individuals. =.
Cotton dealers would act through
the corporation in export dealings
but might, if they chose, ship goods
abroad in their own name, and re-
ceiye loans from the corporation on
the security of shipping documents,
The limit of time for these loans ano
the interest rate is not specified IN \,
the proposed organized draft, but ~
is assumed the loans might be made
for as long as five years. Organizers
of the cooperative corporation also
propose that it might borrow Withln
one wear after peace is declared from
the governments war finance cor
poration, which is authorized witnin
the year to make year loans to en-
porters or banks which have flnan'
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