The Mt. Sterling advocate., 1922-01-24
Growers Loan
Over-Subscribed

\ ~ Inc Hrob LlDcEtJ hOdh VI ehc
\. Rurley Tobacco Growers Co-opera-
I've Association, as it was referred
to by Colonel Aaron Sapiro, general
counsel for the association, was
over subscribed several hundred
thousand dollars at Lexington Sat
urday in a meeting of Kentucky,
Ohio and Indiana bankers probably
without a parallel in the history Of
finance in the state. The bankers
agreed to loan the association ST.
$4,000 and Judge Robert W. Bing-
ham, Of Louisville, pledged himself
60 aid personally to the extent of
s1,OOO,O0O.
Action taken by the bankers fol-
lowed full discussion of the consti-
tutionality of the law by Judge Ed
C. O'Rear, former chief justice Of
the Kentucky Court Of Appeals, and
Robert C. Talbot, one Of Ken
tucky's best known and most sue
cessful awyers, both Of whom de-
clared that, in their opinion, the
new Bingham cooperative market
ing act, which was passed in record
time by the general assembly, would
stand the test Of the courts.
Similar views were expressed by
Judge Bingham, himself formerly a
circuit judge, who called attention
to the fact that not single one of
such laws ever had been held uncon-
stitutionall by any court, though
though they had been adopted into
the laws Of fourteen states.
Previous to the meeting of the
bankers and the officials Of the as
sociation a meeting of the directors
was he'd at the offices, $40 South
Broadway, and Colonel Aaron Sa-
piro was elected general counsel for
the association and Colonel Joseph
Passonneau chief Of the field ser
vice division.
In most instances the pledges of
the bankers equalled the legal limit
n "a the banks they represented, and
fs[xas said after the meeting ad-
journed that many banks had not
had opportunity to subscribe because
of the fact that the notices sent out
calling the meeting had not given
time for meetings of the directors.
The meeting of the bankers and
officials of the association was call
ed to order in the ball room of the
Phoenix hotel Saturday afternoon at
l o'clock and was in session for
three hours.
President James c. Stone, of the
association, explained the purpose
Of the meeting, frankly explained
the fact that attorneys for Louis
vile banks had expressed opinion
that the law was unconstitutional.
He went thoroughly into the question
Of the enactment of the Bingham CO.
operative marketing law, told Of the
care with which it had been prepar-
I'd after all phases of the legal ques-
ton has been studied by men who
had made a speciality of such laws
for fifteen years; men who repre-
sented in such matters fifty-two CO.
operative marketing associations
working under similar laws in four
teen states.
1--WE have taken every preeau-
tion," said President Stone, "to do
everything absolutely in accordance
with law and in a business way. We
have taken these precautions be-
cause we believe our association
would be big thing for the people
Kentucky, your depositors."
Mr.. Stone said that in the matter
Of the proposed loans. no question
Of the validity Of the law was in
volved, as there was not the slight
est doubt Of the security proposed,
which was not affected in any way,
because Of the fact that the collat-
eral offered would be ample to pro-
tsc1 the loans.
Mr.. Stone explained that there
would be a period Of three weeks
between the time Of receiving and re-
drying that portion Of the pooled
crop which must be redried in order