The daily times., 1922-01-25
COOPERATIVE WAREHOUSE!
OPEN IN KENTUCKY

COOPERATIVE WAREHOUSES;
OPEN IN KENTUCKY
Quite naturally every one here is
deeply interested in the Burley Asso-
citation of kentucky which opened its
warehouses for the sale of leaf to-
day. Lengthy correspondence on
the subject sent out from Louisville
states that at a meeting of bankers
comprising 126 from Kentucky and
Ohio towns these bankers pledged
the Association loans ranging from
$4,000 to as high as 100000 for
each bank, Judge Bingham agreeing
to lend a million dollars. The aggre-
gate of these loans was $2,878,600.
The purpose of this loan is to pay
for the tobacco on the warehouse
floors before it goes into the redry-
ing plants. According to the state
ment made by representative of the
War Finance Board, Mr.. Eugene
Meyer, the War Finance Board has
approved a loan of $10,0O0,000,
which will be loaned on tobacco
warehouse receipts, that is after the
tobacco is properly dried and stored
in warehouses. These loans made
by the War Finance Board will not
exceed fifty per cent of the value of
the tobacco so stored.
The announcement was made that
of the amount, nearly three million
dollars pledged by bankers, Judge
Bingham one of the promoters of CO.
operative marketing had agreed to
lend million dollars.
President James C. Stone who is
at the head of the Kentucky pool is
reported as having said that the
Kentucky state law under which the
pool is operating is legal and that the
banks of that state are so recogniz-
ing it, and that the Louisville banks
were financing the proposition to the
extent of $805,O00. He said further
that he and Judge Bingham went to
Cincinnati and saw the officials of
the SD National Bank of that city,
and this institution agreed to lend
the association 100000.
A number of bankers in the meet
ing then endorsed the Association
and delivered speeches in advocacy
of the system. They were followed
by Judge Bingham who explained
that minimum of $3,600,OOO would
be needed in these initial loans. Of
this amount, he said $1,3O5,OOO had
been raised by the loans in Louisville
and Cincinnati. He said that all that
stood between the association and
success or failure was $2,295,00O,
"and that's what we want you to fur
nish.'' He said that he did not want
any banker to do anything against
his best judgment and then read a
letter from James B. Brown, of the
National Bank of Kentucky, in which
Mr.. Brown expressed regret at his
inability to attend the meeting, stat
ed his bank would lend the Associa-
tion s500,00O and rediscount for
banks loaning the association to the
extent of $1,000,OOO, besides an Of
fer to put thru discounts for the to-
tai amounts loaned by all the banks
of Kentucky. He said Mr.. Brown
was willing to do this in spite of
the advice of the banks own attor-
ney to the contrary. Mr.. Browns
letter to President Stone follows:
Mr. RpOxyn,c o+tor
Dear Mr.. Stone: I regret very
much my inability to be present at
the meeting today, as 1 feel the
keenest interest in the success of
your association and l would like to
be there to lend any assistance in nv
power to help finance the greatest
constructive move that has been
made in Kentucky in my time and
one that so materially affects thous-
tAnds of our citizens.
I am sure the banks will respond
promptly to this call from men like
yourself, Judge Bingham and other
gentlemen associated with you in
your efforts to stabilize one of Ken
tucky's greatest products and there
by making future financing of all to-
bacco crops less hazardous.
CAS- have stated before the Ma
t1onal Bank of Kentucky welcomes
the opportunity of extending its leg
al limit OF s5e0,o0e to your associa-