The Bourbon news. [volume] (Paris, Ky.) 1895-19??, 1922-01-24
BANKS PLEDGE
TOBACCO LOAN
Remarkable Meeting of Finaneiers
At Lexington In Interest Of
The Loan
NEARLY TWO MILLION PLEDHED

Bankers of Kentucky and the Ohio
and Indiana counties in the Burley
district, in one of the most remarka-
BILE meeting Of bankers ever held in
this State, pledged the Burley To-
bacco Growers Cooperative Associ-
atoms loans, totalling $1,S78s000
and Judge Robert w. Bingham of
Louisville, pledged his personal aid
to the extent of $1,O0O,00O. @
In most instances the pledges of
the bankers equalled the legal limit
of the banks they represented, and it
was said after the meeting adjourn
ed that many banks had not had op-
portunity to subscribe because of the
fact that the notices sent out calling
the meeting had not given time foI
meeting of the directors. f
Judge Ed. c. O'Rear, of Frankfort
and Robert c. Talbot, of Paris, dis.
cussed the constitutionality of the
Bingham CO operative marketing act
and both expressed the opinion that
the bill was constitutional and would
be SO held by the courts.
In his talk before the conference
Judge Bingham declared that M
court in the United States has ever
declared such law unconstitutional
though they have been enacted by
fourteen States and have been in ,p
GRAFTON in some of these for years.
The meeting of the bankers anC
officials of the association was call
ed to order in the ball room of the
Phoenix Hotel, Saturday Afternoon
at / o'clock and was in session fol
three hours. President Jas. C. Stone
of the association, explained the pur
pose of the meeting, and frankly ex
planned the fact that attorneys fol
Louisville banks had expressed tn,
opinion that the law was unconsti
tutional. He went thoroughly int
the question of the enactment of tn,
bingham law, told of the care will
which 1T had been prepared aftel
all phases of the legal question ha,
been studied by men who had mad,
speciality of such laws for fifteer
years. - =
Robert c. Talbot, of Paris. promi
nent lawyer, discussed briefly tn,
Bingham marketing act The secur
ity offered for the proposed loans, b,
said, would not be affected in an,
way by the constitutionality of tn,
cooperative marketing act. TIL,
rights of holders of warehouse re
ceipts, he said, did not depend OF
the existence of the association bu
were amply secured by the genera
law of the State.
After careful inspection of tn,
statutes, Federal and State" hi
said, Il would say that you neet
nave mo hesitation to believe tina,
the courts will hold the new act con.
stitutional."
General Counsel Aaron Sapiro Of
the association, announced the
amount of the loan made by the
bankers and proposed the appoint
ment of committee to draw up the
trust agreement under which the
loan is to be handled. This commit.
tee is composed of Monty Goble, OF
Cincinnati, or his representative
James b. Brown, of Louisville, OF
his nominee; G. N. Manning, OF
Lexington, James Mcclure, of Paris
and j. A. Cheek, of Danville.
When the call was made for sub
Scr1ptlOnS or pledges to the loan the
Bourbon county banks, through
their representatives, made the fol
lowing responses: First Nationa
Bank, $4,000; Deposit Bank, NORTH
Middletown, $4,000; Bourbon-Agri
cultural Bank & Trust Co., $4,000;
Peoples-Deposit Bank & Trust Co.
$4,000; Farmers and Traders Bank
$4,000.
a.