The Bourbon news. [volume] (Paris, Ky.) 1895-19??, 1921-12-27
Burnley POOL
GETS HOUSES
Central Kentucky Warehousemen
Turn Over Their Plants to CO.
operative Association
FINANCING STEPS TAKEN

Presenting practically united
front, as the warehousemen OF the
other three districts in Kentucky
and of the Ohio and Indiana dis
tricts have done, warehOusemen OF
the Central Kentucky district Friday
morning signed contracts transfer
ring their plants to the control Of
the Burley Tobacco Growers CO.
operative Association, under lease
until the corporation provided for
in each district can be organized,
full title to pass June Is, 1922, in
desire to sell, the plants not for
sale to be leased at a rental of eight
per cent net to the owners.
Aaron Sapiro, California lawyer in
charge of the legal preliminaries
! incident to the transfer, assured the
warehousemen that they would be
| protected from the outside ware
house owners in the pool to sell their
Crops over the floors of these out
side warehousemen and quoted re-
cent decision of the Supreme Court
Of the United States to show that
in such cases the association might
obtain an injunction and sue the
offenders for damages.
President James G. Stone called
theameeting of the warehousemen to
order at the Offices of the associa-
tion. He said the contract was
clear, but that, if any warehouse
men did not fully understand it's
provisions, he might ask questions
which would be answered until it
was clear to him.
Mr.. Sapiro called attention to the
provision in the contract by which
the warehousemen agreed to remain
in charge of their various properties,
IL desired by the association, and
said that in regard to the amounts
to be paid for the various plants he
believed that the warehousemen and
the association, through Manager
Baker and the district director,
would reach an agreement in nine
teen cases out of twenty. The pro-
vision Of arbitration, in all cases in
which the warehousemer and the
association may be unable to agree
on values, was explained.
Mr.. Sapiro went thoroughly IL to
the three methods of payment:
First, in preferred stock of the
subsidiary corporation to be formed
in each of the districts, redeemable
one-fifth each year beginning June,
1928, and paying eight per cent. div
idend; two-thirds in preferred stock
and one-third in serial income bonds
paying six per cent. and redeemable
| one-sixth each year, beginning De-
| cember, 1922; second, notes bearing
six per cent: interest from maturity
and payable in twelve equal BIZ
monthly installments, all dated
June Is, 1922; third, one-fourth
cash, one-third of the balance in
preferred stock and two-thirds in in
come serial bonds as in the first
plan. Deeds are to be made to the
property covered by the contracts
June Is, 1922.
The association will pay rent on
the houses from Dec. Is, 1921, until
the title is taken over at the rate
OF per cent. a year on the valua-
ton.
Arrangements for financing the
payments for the warehouses will be
begun Immediately with various
local banks, the Louisville and Gin
clnnatl banks and government or
Eastern sources of credit if this is
found to be necessary.
1t is understood that Louisville
and Cincinnati brokers have offered
to underwrite huge blocks of the
stocks and bonds of the subsidiary
corporations to be formed for ware
housing purposes, and it is the ex-
pectat1on OF the officials Of the asso-
citation that the securities will be
I quoted at par or above as soon ar
tney are placed on the market. A
Dig majority OF the warehousemen
nave indicated in their contracts
tnat they will take these securities
IN payments for their property.