The Evening herald. (Klamath Falls, Or.) 1906-1942, March 19, 1934, Page 8, Image 8

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    PAGE EIGHT
THE EVENING HERALD, KLAMATH FALLS, OREGON
March' 19,' 1934
BETTER CREDIT
SYSTEM FORMED
FOR PRODUCERS
. Th 1034 erop season will
- tnean the bealnnlns; of a better
system of crodlt for many farm
. ers who are preparing to fin-
nee tba years farming by
: means of shortterm loans
, . throur'- the production credit
associations wh'ch are being or
ganised under me rarra credit
administration throughout this
puts.
U der the farm credit admin
' titration the land banks will
i continue to make long-term real
state mortgage loans; but the
-.administration Is also providing
, long-needed aystom of short
term production credit for farm
' ars loans to be used for pro
ducing crops and livestock and
repaid at the end of the season.
This Is an entirely new service
for farmers; and It Is designed
to be permanent.
' Farmers In this locality will
' be served by the Klamath Pro
duction Credit association, which
was chartered in January, X934,
to serve producers in Lake and
I , Klauath counties. About rour
or five counties Is the average
slxe of an association. There Is
I : no fixed number o f counties
standard tor all associations, but
each must include enough ter-
i rltory to give a volume of bust-
! ness sui-iclent to secure efficient
'organisation and low cost of
operation.
' : The Klamath P. C. association
was organised through the co-
ODeration of representative farm'
era of the counties Included, with
the assistance of the Spokane
-Production - Credit association
There la one of - these corpora
tlons in each of the 12 land
hank districts In the country. The
local association will obtain
loanable funds from the inter
mediate credit bank of Spokane,
which will lend money on
discount, well-secured notes of
farmers. All of these Institutions
are a part of the farm credit a a
'. ministration.
A production credit associa
tion does not lend government
money. The funds that will be
loaned are obtained bv the In
termediate credit banks which
ell shortterm bonds, or debent
ures, to the Investing puDuc
In other words, the money
la belna- borrowed to be
loaned to eligible farmers to
enable them to produce a sea
son's crops. The association is
not a charltv Institution: but
business credit institution tor
. business - minded farmers. The
purpose is to make loans that
farmers can afford to nse for a
season's operations, and which
will be repaid at the end of the
season. It Is a pay-as-yon-go plan
. for sericulture.
Loans needed to bny work-
, stock, seed, machinery and equip
ment, lor purposes 01 dairy or
poultry farming, or for other
. expenses Incurred tor general
agricultural purposes, may be ob
tained from a production credit
association a s conveniently a s
from any e a r e f u 1 1 y-managed
bans;.
Most of the loans will run
from S to 12 months, depending
on the length of time required
for growing and marketing the
crop or livestock which the loan
is made to produce. Loans for
crop production win nsuauy ma
ture in less than a year although
loans - such aa those on dairy
and breeding cattle may run
longer up to 18 months.
ADnlications for these short-
term loans are handled In this
territory by Lee S. McMullen.
Applications will be acted upon
: quickly when they give a clear
financial statement of the appli
cant's farming condition, listing
all ' assets and liabilities,- and
estimating net worth. The appli
cant should name specifically the
farming assets offered as secur
ity - for the loan, and give a
plan, -or- budget, showing how
he is -going to use the loan ap
plied for and how he is going to
repay .it.
?' Primary security for produc
tion . loans consists of livestock,
farming equipment, growing
crops, or other personal prop
erty most spproprlate to secure
the loan adequately and make
up a chattel mortgage. It Is not
Intended that loans shall be se
cured primarily by mortgages on
real estate. Where this type of
security Is taken It will be re-
garded only as additional col
lateral. The minimum loan is $50 and
no loan may exceed 20 per cent
of the authorized capital of the
association. The amount of the
loan should correspond with the
actual need for credit. Perhaps
more farmers have become heav
ily involved in debt because of
too much credit than because
of the lack of it. Loans from
production credit associations wil
only be made as needed; and
proper precautions will be taken
to ; prevent over-extension of
credit so that farmers will not
have to pay unnecessary indebt
edness with resulting Interest.
After a farmer's application
is received his financial state
ment Is checked and the prop
erty offered as security for the
losn personally inspected by a
loan Inspector of the association,
The minimum charge for inspect
ion Is S. Kegulatlons about In
spection charges and collection
may be changed as required by
tne production credit corporation,
Usually no charge will be made
for Inspection It the loau la not
granted.
It the report of the inspector
Is satisfactory and the loan Is
approved by the loan committee
oi tne association, tne farmer
note is endorsed in the name of
the association, and sent, along
with his credit statement and
chattel mortgage, to the Inter
mediate credit bank of Spokane,
It the bank approves the credit
statement and the security, it
makes funds available to the as
sociation, and the association
sends a check to the borrower
immediately. 1
Each association Is capitalised
according to the credit needs of
the territory it will serve. Most
of the capital stock Is purchased
by the Production credit corpora
tlon of Spokane, Wash., and this
enables the association to begin
making loans Immediately. Funds
derived from the sale of stock
to the corporation are used by
the local association to purchase
nigh grade collateral, cnietly
government bonds, - which are
placed with the Intermediate
credit bank to establish a line
of credit, that is, to get the
bank to discount, or lend money
on, the notes of farmers which
the association has endorsed. Or
dinarily the bank will discount
well-secured farmers' notes u
to five times - an . association
capital. In this way an associa
tion may get all the credit It
needs.
The authorised capital stock
of the Klamath production credit
association Is 1500,000. Of thl:
amount the production credit
corporation of Spokane will pay
in, as needed, about $375,000,
making possible a maximum
total of loans of $2,500,000.00
through loans and discounts with
the Intermediate credit bank.
Actually the production credit
corporation owns about three
fourths of the capital stock of an
association. The farmers who
borrow from it own most ot the
remaining portion, each borrow
er being required to own 5 per
cent of the amount ot his loan
in voting stock in the associa
tion.
A farmer who gets a loan from
the association does not have
to advance any money to pay
for his stock, as the purchase
price may be included in the
loan, one $5 share being pur
chased as each iioo of the loan
money is advanced. The stock
carries no double liability. Thus
a borrower's liability -in any pos
sible Impairment ot capital of
tne association extenda only to
his own stock holding, amount
ing to $5 for every $100
fraction thereof borrowed.
A farmer doea not have to
purchase new stock each time
he borrows unless the stock he
owns has become Impaired in
value or he wishes a larger loan,
A farmer not indebted to the
association may sell his stock
to another eligible borrower, or
may exchange it at Its fair book
value for non-voting stock. Such
an exchange must be made with
in two years after the holder
ceases to be a borrower.
Stock purchased by the cor
poration Is non-voting, but pre
ferred as to assets in case the
organization is liquidated. The
voting stock is ' owned only by
the borrowing farmers, each hav
ing only one vote in the associa
tion no matter what the amount
of money borrowed or stock
owned.
Officers and a local loan com
mittee of each association are
selected by the temporary board
of directors which waB elected
by the charter members when
the association was organized.
At the first annual meeting of
the voting stockholders, that Is,
the farmer borrowers, a board
of directors will be elected, con
firming or replacing the tempor
ary board. Thus each borrower
has an equal chance of voting
his opinion as to the manage
ment of the association.
At present loans from a pro
duction credit association carry
an Interest rate of 8 per cent.
charged on an annual basis, that
is, only for the actual time the
loan is outstanding. A loan for
bIx months, for instance, will
carry an Interest charge of about
$3 on a hundred. The Interest
Is not collected until the loan
is due.
The Interest rate charged the
individual borrower may not ex
ceed by more than 3 per cent
tke rate at which the associa
tion gets money from the in
termediate credit bank. At pres
ent the Interest or discount rate
charged the association by the
intermediate credit bank Is 3
per cent these charges make up
th 6 per cent .Interest rate paid
by the farmer. '
The Interest spread of a per
cent between the rate paid by
the association and that paid by
the borrower goes to the asso
ciation to meet operating ex
penses and build up a guaranty
fund or surplus, needed by any
carefully managed business Institution.
Actually, the farm credit ad
ministration is establishing at
ITCHING IRRITATION
Even in persistent cases where parts
are sore and tender comfort follows
os(w the soothing touch ot ass
Resmol
TODAY'S BEST BUY
16-ln. Dry Pine Slabs
Double loads $4.00
Single loads $345
Fcr quality snd quantity yon can't beat these prices. It's
the ideal fuel for this spring weather.
D!9ckwood. . . . .Double loads $5.50
Single loads $4.00
Brooder Coal, that does not clinker gi"j,
100 lb. tacks . 99C
. ' (Bring Your Own Sack)
IIEILBnONNER 8 REA
"Fuel that Satisfies"
' ' - . Plus Service . 1
Office and fard, 821 Spring St, Phone 289-W
1 AMUSEMENTS
AT TI1K rKLICAV
r? vi v x v n
Clark Gable in "It Happened One Night"
Pelican Now playing. Flying
Down to Rio." Tomorrow, "It
Happened One Night," with
Claudette Colbert and Clark Ga
ble.
Pine Tree Now playing, "Mas
sacre." .Tomorrow, "Broken
Dreams," with Randolph Scott
and Martha Sleeper.
Rainbow Now playing. "Too
Busy To Work." Tomorrow,
'Moonlight and Pretzels.
Vox Now playing, "You Can t
Buy Everything," with May Rob-
son.
AT THE PELICAX
Just why - San Francisco de
manded that "It Happened One
Night" be held over three extra
weeks will be understood by Kia-
moth Falls audiences tomorrow
when it has Its opening at the
Pelican Theatre here. The story
otters possibility for a good pic
ture; the Colbert-Gable combina
tion lends pronaDiiity oi a good
picture and the direction of
Frank Capra makes it inevitable
that "It Happened One Night
reach its public 'mid the plaudits
of the fans and the furiously ex
cited laudation given it by the
press in the few metropolitan
centers that have- had an oppor
tunity to see It.
In an Interview following bis
return from San Francisco, Mr.
May oi Moe's Womans' Store, was
praising "It Happened One
Night."
Has it a happy ' ending 7"
someone asked.
Happy ending? It's happy all
the way through!" was Mr. May's
enthusiastic reply.
Briefly,. "It Happened One
Night" is a comedy of the type
that will make it the foremost
picture for weeks to come, for al
though It has been shown In only
few of the larger cities It Is al
ready branded one of the year's
greatest hits.
AT THE PINE TREE
Human interest the kind that
gets right under your skin and
clutches at the heart Is the key
note of "Broken Dreams", which
opens tomorrow at the Pine Tree
theatre. Olga Prlntslau, author
ot the story, and Maude Fulton,
scenarist, have taken a simple
story of real Hie, and drama
tized It for the screen with a
sympathetic " understanding that
makes a powerful appeal to the
emotions. . '
Directed with keen understand
ing by Robert Vlgnola. and en
acted by players ot genuine abil
ity, "Broken Dreams" supplies
entertainment ot a type that every
member ot the family can enjoy
AT THE RAIXBOW
Composed by four ot Amerlca'a
ace songsmlths. the tuneful mel
odies In "Moonlight and Pretzels,
the backstage musical romance,
at the rainbow theatre tomorrow,
reflects the spirit of the times In
a manner unique for screen musi
cal comedy. At least three ot
the numbers in the score . may
truly be said to be descriptive
ot the present American scene.
In 'Moonlight and Pretzels
more than In any other ot the
recent screen musicals,- the com
posers have followed the precept
of the fellow who said "Let me
but write the songs of a nation
and I care not who makes Its
laws.
AT THE VOX
Hay Robson dallies with high
finance, mother-love, and here
and there a comedy Interlude, In
one of the remarkable roles ot
her screen career, in "You Can't
Buy Everything," the gripping
drama of a woman financier on
Wall Street, now playing at the
Vox theatre.
Miss Robson plays the role ot
Hannah Bell in "iou Can t Buy
Everything," which was produced
by Lucien Hubcara and directed
by Charles Riesner. The cast
also Includes Jean Parker, Lewis
Stone, Mary Forbes, William
Bakewell, Reginald Mason, Tad
Alexander, Walter Walker and
Reginald Barlow.
This picture is now playing in
Portland under the title "The
Wolf of Wall Street."
Klamath Falls, as at other cent
ers of farming sections, a farm
ers' short-term credit business.
Each borrower has part owner
ship In the business. His liabil
ity for loans of the organization
is only 5 per cent of the amount
he borrows. The management ot
the business is being entrusted
to representative farmers chosen
by the member borrowers. This
is the only method ever devised
which permits farmers with the
aid ot the federal government to
ultimately own and operate their
own production credit business.
Brief Submitted
on Armory Bonds
Contending the armory bonds
can be iBsued legally, District At
torney T. R. Gillenwaters has
submitted a brief to the public
works authorities In Washington.
similar brief has been submit
ted by George Wilbur, PWA at
torney for Oregon.
Gillenwaters was In Portland
Saturday in connection with the
armory matter.. The technicality
which has prompted filing of
briefs has to do with the ques
tion of the city's capacity to
band Itself,
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If your pimples and bad sldn are due
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the simple instructions with each jar.
Costs little at druggists to give this
new creation a thorough trial on
money back guarantee.
HOSPITALITY
fi'L. . ivmr
mm
0
PART! AtsitV
'it - ll.t.J . iff : n rt M. r .:!
' RATES
$2 to $12
. . .:
Free mlniaturo '
color- photo '
prints Oregon
Scenic Views at '
our Travel Bu-'
reau.
I' 600 beaurifollr Assuhal room, U ouid, Bflordlng
e wid ririety ef accommodations. .
f Luxuriottl and ipicloai Jooy loanjt and mnttnlne, . ,
! Excellent dintae1 rdoJnl, 1 an) coffe ihop, feitorlnf
. quality food at fopular pric. ' i
f Garage ocrou rht atreett atlcndanirat the hotel es
, trance all beura. ...
f Only three to In blocirt' from the leading banka and
'etorc convenient to fottland's ooany' scenic at tracr
Hotel M ultnomah
PORT LA NO, - O R EG 0 N
mmmmmmmmmmnmwmwi n w ! m n ' iw
CITY CLEAN-UP
CAMPAIGN HATE
MOVED FORWARD
The city-wide clean-up cam
paign sponsored by the Klamntb
county Junior chamber of com
merce has boon advanced from
April 9 to Saturday, March 31.
tuxoritliig to n n nmiouucumcnt
Snturdny by Rudy Jacobs, chair
man of the publicity commlttoo.
Tha campulGii will now extend
through April H.
Junior chamber offlclnls have
announced an essay rontust for
the 7th and Stli grade school
children. There will bo a spec
ial division for boys and an
other for girls, with a first and
second prise (or each,
How Can I, as a cttisen, make
my city ntoro beautiful," will be
the subject for the contest. J.
Percy Wells, superintendent, will
co-oporato with tho chamber lu
Interesting tho students to entor
the competition.
Judges, prises and tho- final
date tor submitting manuscripts
win be announced In the near future.
Durlug tho first wook of tha
drive, speakers will be sent to
all schools In the city. The stu
dents will be urged to assist the
chamber's efforts.
William Kuykendall has boon
named chairman ot the speakers'
committee.
One ot tho chief features of
the drive will bo to Improve the
appearances of the boulevards on
California avenuo and Pacific
terraco.
Already, members of the sur
vey committee havo personally
Inspected all vacant lots within
the city limits.
John Adams and Thomas Jef
ferson, two presidents, died on
the same day July 4, 1S28.
Constable Flury's
Child in Hospital
Flvo-yenr-olil J s n e Flury,
daughter of Coiistnlilo and Mrs.
(lonrgc Flury of Chlloquln, un
derwent skin graft operatlou
Sahirttuy ut Hillside hospital.
Tho little girl was badly burn
ed lust fall, and spent several
months In a Unapltal hero. Bhu
returned to Chlloquln In Decem
ber, and her gounral condition Is
reported to bo inuoh Improved.
TO VISIT OREGON
MEDFOnn, Ore., March 19.
(Hpoclal) President Frauklln I).
Uoosovelt will be on the wust
const this summer, but such un
certainty clouds his Itlnornry that
It Is doubttul whether ho will bo
able to visit Oroiion, or bo ublo
to attend Oregon's Diamond Jub
lloa celebration In Medlord, from
Juno third to ninth, according to
a personal letter Just reralved
from the president by Oovornor
Julius L. Meier who recently ten
tiered him an official ' Invitation
to attend.
In his lottor. President Rooso-
volt stated that the pressure of
work In Washington, D. C, made
It impoaslhlo to mnko dotlnlte
plans for his Pacific coast trip,
but Indicated he was nurturing
hopes to be sblo to leave tho
nrly part of the summer, wliluh
still might make It possible for
him to oume to Oregon, How
ever, at present he does not an
ticipate leaving Washington un
til tho mldillo of June.
In part, Ills letter said!
"Whether my vlnll to the west
const will Include muro than a
brief stop at San Diego depends
entirely ou the time at my com
mand. "It was nice ot you to Invite
me, however, snd I wish It wore
possible far mo to onmn and hulp
colt'lirnto your Diamond Jublleo. '
Although It Is likely that Pre),
dent Uoosovelt will bo ahsont
trout the festivities In Moilftud.
quite a number ot woll known
publla figures plan to be present,
luolutllng the govornora of aov
oral western states, the govornor
of Ilrlllsh Columbia, eud other
dignitaries,
Uoneral preparations are stead
ily going ahead tor the celebra
tion on which numorous commit
tees have boon working for weeks
to provltlo visitor with an untor
gfltlnblo week of activities In the
observance ot Oregon's 7Cth birth
taavo for Portland Mr. and
Mrs. Borkolcy DoVaull loft Bun-
day morning for Portland, whero
they plan to spend soveral
mouths.
Th Nowa-Horald Claasifled's
offlclont, systomatle form in
crease tbe value of your ad.
Council Questions
Milk Price Ruling
rOUTLAND, March ID, U.R
The elty council will set Wednes
day on a resolution which would
om now or tho elty attorney to sot
nsltlo by court order Hie roouut
ruling of the slate milk control
board, which fixed local milk
prices.
The city will olnlm the board
acted arbitrarily In the innttor.
Yalo profossors say smoking
adds sugar to your blood. Thore
gov your d let I
Acorn are used as food In
various art of the world,
3PREE OVP03
- Hit. (?.....
Qood (or 1 aqe Gait ef 3elltwoofi 0amoiu
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a favorable verdict.
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V
J
IS THE SPICE OF YOUR
EASTER WARDROBE
'- ' "i . .-,
WW Easter just ahead, you're eager for
something different, thrilling, newt Then
come to Wards and have a fling at Spring's
most varied fashions . . . clothes In every
mood and manner . . . for every type of
woman . , . every occasion . . . every pocket
book! We've sketched 4 grand examples 1
DRESSES
Loads of short-fleered street and Sun
day night styles! Jackets! Taffeta and
momsellne trims I Lorely spring shade.
COATS
Swagger sports coats! Windblown dress
coats! Butterfly collars! Streamlined,
in swagger tweeds and crepey woolens.
SUITS ri
Coats in all lengths) the long swagger Is , ,
smartest. Tweeds and woolens in nary ' t,
and new shades. Many new necklines.
HATS-1 '": . . A I
New straw and straw-cloth, In scoop and -hovel
brims I Popular Bretons and off- .
the-fnee types. Young and flattering.
6
.95
1.95
9
.95
I
.49
4th Annual
SPRING
STYLE '
REVIEW
m
Sponsorod by the Busi
ness and Professional
Women's dnh,
Friday, March 23rd
i. - . .
Pelican Theatre
59c 'All
I ' .
Smart Easter shade
in chiffon and serv
ice weights. Every
pair tali fashioned I
Cv Isvatoi
VX&rfA cotton mA rilk ,
III vHS& fweka. One 1
m '
211-229 Maln-Phons 364
LL