Arizona republican., 1922-04-12
S1,500,00O NOW
AVAIL ABLE FOR
.AR|Z. 5TOCKMEN
Governor Signs War Fin
ance Bill and Releases
Huge Sum Loaned Grow
ers; Seek Additional
Loans

When the war finance bill. an en-
ergency measure introduced in the
senate by Senator James Scott of
Navajo county as Senate Bill No. so,
became effective on Monday with the
signing of the bill by Gov. Thomas
E. Campbell. loans to Arizona cattle
and sheep men by the war finance
corporation amounting to approx
held up awaiting the passage OF the
measure, will be released at once.
| This announcement was made yes
terday by Charles w. Fairfield. state
auditor prior to his departure for
Los Angeles. where he will hold a
conference today with Divisional Sec
retary Knox OF the war finance cor
poration, with a view to obtaining,
If possible. additional loans for the
cattle and sheep growers of the state
amounting TO $2.500,000 or $4,000. 900.
The conference will be attended by
w NJ. Beach, president of the Salt
River Valley bank of Mesa. r. "A.
SAWYER, prominent sheep grower in
the state, and possibly by r. +. Moore.
vice president of the Valley bank OF
Phoenix, who accompanied Mr.. Fair
field to Los Angeles.
Seek More Favorable Terms
The information concerning the
releasing of the pending loans to
Arizona stock growers was contained
| in a telegram from Mr.. Beach to
Mr.. Fairfield yesterday. Mr.. Beach
has been in Los Angeles for several
days in daily conference with Seere-
tary Knox and various heads OF Los
hot nnnrnrYfnc the ln1nE
Mr.. Beach, in his message. requested
Mr.. Fairfield to send a certified copy
of Senate Bill No. so to the assistant
general counsel of the war finance
corporation at Washington, p. G. The
copy was sent yesterday by Mr.. FAIR
field
The conference in Los Angeles.
| Mr.. Fairfield said. win be held with
the idea of not only obtaining the
! additional loans but with the view
of getting better terms on future
| loans than has been extended 70 the
| Arizona stockmen by the war finance
| corporation II is the belief of Mr..
| Fairfield that little trouble Will pc
had in obtaining the extensions be-
/ cause Of the liberal amendment made
| to the CORPORATION laws of the state
| through the passage of the war IL
nance measure. Senate Bill No. 6U
| This bill Mr.. Fairfield said, was
| drafted by the general counsel OF the
war finance corporation commisslon
! ut the request of Eugene Meyer Jr,
director general OF the war finance
/ corporation, following a conference
| with Governor Campbell ana state
! Auditor Fairfield three weeks ago
| when MFR Never was a visitor In
] phoenix. The conference was the
| result of a number Of appeals made
to Mr.. Fairfield by several OF tne
! cattle and sheep growers of the state
| for a. better method of handling OF
| loans to them by the war finance
corporation. 49,.
| Under the corporation laws OF the
| state prior to the passage or the
amendment, Mr.. Fairfield sald, Lne
! highest amount of indeDLedness
corporation could incur was not 70
exceed two-thirds OF their capltai
stock. which meant that a corpora
| zion with a capital stock of $4,000
400 could not have liabilities IN eX-
| cess of So. .00O. 600. Under the new law
he said IL will be possible, under GER
/ tain conditions. for corporations VINO
have a. capital stock of only $5OO. O.uov
10 obtain loans as high as $5,QOO,OOv.
! The new law makes liabilities con-
| tinrent. he said. and eliminates al
rect liabilities. Through this cnange,
! he said, it will be possible TO get from
| SIS. 600 900 to $10,000,000 new money IN
the state through loans to corpora
| tions.
The rules followed by the war Il
nance CORPORATION. Mr.. Fairfield sala:
makes II possible for the stockmen OF
the state to obtain loans for twelve
| rnnnths with an extension OF Twelve
months and the privilege OF an addl-
4 t3oDal extension of IL months more
or lnans of practically three years
| duration. Stockmen, however, he saio
are meeting with difficulty IN the
nayment of loans because OF certain
conditions imposed by the 1lnance
corporation in the manner OF repay
ing the loans. Especially is TINS tIus
in the sheep industry, he said, ana
: nIan az presented in a letter to
binself from E A. Sawyer, Arizona
| sheepman. will be laid before Sec
retarv Knox at the conference in Los
Angeles today in an effort to get the
ulan placed in operation relative 70
the sheep industry. ~.
Mr. Sawver's letter in part and the
| plan is as follows:
| .T am a partner in a sheep com :
nanv which has been in the wool ana
sheep raising business Tor a numDer
Of years. and during last fall at tne
time it was announced tnat the sVn-
ernrnent. acting through the war II.
nance CORPORATION, wished TO make
available some material assistance 70
/ protect the sheep raisers. our part
| nershiu applied through the Arizona
tT.oan company for q loan OF SZS,vVV
! from the war finance corporation.
awe were under the impression at
the time we applied for this loan,
which was granted, that the loan
would r1in for a period of three years
If necessary. 1t now appears however.
that we are expected to turn IN 70
happily on the principal OF our loan, aL,
of the proceeds from potn the Mooi
sales and the lamb sales. IL the gov
arnment insists on this procedure y
will result in our loan being PAID
within probably 10 months from the
time II originated; however, TINS
would cause us to operate all run
ming expenses from the sheep oulli.; y
which would amount to at least 20
ney head per annurn. and as you VIII
see this world cause our bankers 70
again exteno us line OF credit sinn : :
liar in extent to that which we oWSu
them at the time OF obtaining tae
loan last fal. - ,~;ar
Prom the growers point OF NieT; ;
In would appreciate it If you could
bring this to the attention OF the
proper authorities Of the war Il.
J nance corporation, suggesting thas
they permit the wool growers 70 use
/. both the proceeds of the wool ano
lambs to offset our running expenses
hut with the understanding that we
will replace ewes of 8 years OF ase
or over out of our own lambs eacn
wear