The evening herald. [volume] (Albuquerque, New Mexico) 1914-1922, 1921-08-31
Stock Growers Finance Corporation
Will PernitNo Sales of Security
During Tendency of Any Loans
New Mexico Advisory COMMITTEES for s60O0o,oo0 Loan Corporation
Furnishes Detailed Plan Of Operation Under Which Appli
cations for Loans May Be Made.

J.. u. Herndon. member Of the New
Mexico adviaory committee OF the
stock Growers Finance corporation.
managing $50. 600, 600 livestock loan
rivui. today Hiazie public Important
additional Information relative 70
conditions governing loans 90 he
made by the corporation. ana a de-
tailed plan Of operation IN applying
FOR loans. which has been approved
by the committee a. well m Wy tie
directors Of tho corporation.
Replying TO "a direct question from
Mr.. Herndon. NJ. =. Mcclure. preAl.
dent ~ the Stock Growers finance
corporation. has replied that tho
executive committee will not on
sent to the selling OF any security
covered by n mortgage held by this
corporation, and the use uf the pro-
ceeds for PAYING expenses or for
other purposes
Many requests had been made Tor
Information whether such sales Of
parts of a herd morigaged to cover
a loan. woud De permitted. the pro-
cecds to be nfrd for feed or other
necessary expenses Of maintenance.
''The committee believes" Mr.. Me-
Clure's letter continues. that this
would be a violation or the mort
gaus and leave M opcning for a
crooked narrower to take advantage
Of"
May he Adjusted at Renewal.
snow all loans will be accepted for
no longer period than six months.
At the expiration Of six months. II
n loan IN not paid. u VIII have to be
renewed. At that time the question
Of leaving out a part OF the security
can he taken up and agreed upon. n
apparently there Is sufficient 10 main
tain the standard Of h original se-
cuiity In the mortgage. Therefore.
Il would leave n matter of six months
FOR the party TO arrangc an advance
for his feed provided he would have
the pr0per increase IN valud and
number Of his stock, 10 have per-
mission 10 leave some NJ Il out OF hts
mortgage. which he could then ron
vert into cash for his expenses aud
taxes
Detailed pian Of Corporation.
The advisory committee of tho
stock GrowerH' Finance corporation
81 Chicago. for the state ~ New
Mexico. composed Of Jnmes q. Mo
Nary, chairman; j. r.. lIerndon and
". A. Cahoon. call attention thai
banks or cattle loan companies To-
Gated In New Mexico. desiring to do
business with the Stock Growers
Finance corporation are advised that
loans are to he made only on cattle
Of beef breeds and on sheep. Dairy
cattle are excluded except where they
are put In a mortgage for margin.
The following detailed plan Of op-
GRAFTON has heen issued by the stock
Growers Finance corporation with
the approval % the New Mexico ooin-
mittee;
All loans are 10 he made on a has
II not to exceed more than about 80
per cent OF the values of the livestock
offered az security. and with one cx-
ception are accepted only from banks
loan companies which nle sntlR-
factory financial statements with tho
corporation. the exception being
where the capital stock OF tho bank
IN not sufficiently large; in that case
guarantees are made by officers. IL
roctors and stock holders. taken In
lieu Of the endorsement OF the bank
In accepting the individual guar
antecs on acount Of the probability
of many OF the loans running the full
two and one half years, the executive
committee Of the stock Growers Fin
anco corporation viii consider II nee
cssafy to use great care that the guar
antce does not depend upon u In
dividuai but shouid have several vino
are financially responsible. all OF
must file financial statements.
our committee recommends the
federal reserve statement Form No.
CD-i. which can be secured from N"
Federal Reserve bank Of Kansas CITY.
either Of the branches In omaha or
Denver. or from any member Of the
Colorado committee when the notes
are taken from the bank and en-
dorsed. guaranteeing payment, q
complete statement OF the hank
should be forwarded ana In addition
to the Liabilities the bank shows, both
bills payable and rcdiscounts. IN"
statement should show Indirect LA
biiitips. hat Is. one borrowed
through endorsement Of tho bank d.
rcctorH. officers or stockholders. The
amount OF such paper outstanding
viii govern TO "a certain extent the
amount Of paper this corporation vii
accept,
When tho loan is to be- guaranteed
by "a loan onlpany, % complete state