Hampton Machine Tool Company
On September 14, 1979, Mr. Jerry Eckwood, vice president of the St. Louis National Bank was considering a loan request from a customer located in a nearby city. The company, Hampton Machine Too] Company, had requested renewal of an existing $1 million loan originally due to be repaid on September 30. In addition to the renewal of the existin- loan, Hampton was asking for an additional loan of $350,000 for planned equipment purchases in October. Under the terms of the company's request, both loans, totaling $1.35 million, would be repayable at the end of 1979. Since its establishment in 1915, Hampton Machine Tool Company had successfully weathered the severe cyclical fluctuations characteristic of the …show more content…
HAMPTON MACHINE TOOL COMPANY
East St. Louis, Illinois September 12,1979
Mr. Jerrv Eckwood
St. Louis National Bank St.
Dear Mr. Eckwood:
I enclose the company's August 31 financial statements. While these statements show our cash balance as $1,559,000, you will note we have an obligation to a customer for cash advances of $1,566,000, and we expect to ship this order over the next three months. With respect to our note for $1,000,000 due