The Breckenridge news. (Cloverport, Ky.) 1876-1955, 1921-05-18

sale price But when we figure we
never count on II being more than
the average minimum we try to be
conservative. But we allow a chance
for expansion as we get growers to
sign up, then you may spend more
for physical facilities.
Ready Stability of Stock.
Here is what happens: You get a
preferred stock which is absolutely
guaranteed both as to payment of
dividends and retirement of principal
Now you can go to the public and sell
that stock, because it is guaranteed
like a bond, guaranteed at a ratio of
fifty to one, based not on top markets
but on average markets.
You ask the public to buy the pre-
ferred stock. The growers put their
crops behind those shares. They show
their good faith. Then they say IF
you are interested and want a plant
in your place, or want a plant at all,
buy this preferred stock" Then the
first year you retire one class of pre-
! ferred stock. In this Whitman district
say, you will retire 100000 year the
first year of Class "A" stock. Now
you will deduct $4,000 from the pro-
ceeds of that wheat. They may deduct,
for example, $50 out of the proportion
one man would otherwise receive for
his wheat. So they would give to him
in common stock $40 worth to match
the $40 that they have retired against
! him for the preferred stock So over
period of five years you retire $780,
900 worth of preferred stock and is
sue 100000 OF common stock. You
take the preferred stock from the pub
, lie and issue common stock to the
, growers in exact proportion to the
! value of wheat
SO that, after your term of five
years, you have received the money
from the public when you needed it;
you have paid the public good and
plenty for the use OF their money, and
you have paid it out of your crop. 1t
has proved brilliant success.
With the prune growers, we decided
the first thing we needed was $780,
900. We allotted the proposed expendi-
lures and called meetings. We confer
red with a group of bankers and rich
, men of the city. We said, "We want
to spend $4,000 and put in a plant
4
here at Napa We are going to sell
any good plants in Napa we will con-
slider buying a plant rather than put
up new one. 1t is up to you bankers.
We don't want to make anybody's in
vestment bad; we want to preserve
capital"
A Brilliant Success.
AT Napa we sat in with the bankers
| and told about the preferred stock.
They brought lawyers in and we
| showed documents. Before we finish
ed those bankers were figuring how
much they could get for themselves.
! We got the keen men in the whole
vicinity interested | will tell you the
100000 of per cent stock at par plus
! cumulative dividends, at cost of post
! age stamps and the cost of attending
| little conference.-the car fares-but
in addition we scattered a lot of this
preferred stock around. The banks
and merchants had it. They felt like
partners in the association. They said,
Here, this cooperative marketing as
ISOLATION is a good thing. | believe in
it; | haye preferred stock" They
would tell other growers, You must
join the association; am not talking
bunk to you; | own some stock in the
growers warehousing corporation.
This shows what | think about it; it
is the soundest thing in California"
They do wonderful amount of pro-
paganda because they are the invest
ors in the physical property. That is
the character of plan of financing "a
dopted by the Washington wheat