Many articles use this quote but this excerpt from Songwriters On Songwriting by Paul Zollo has the advantage of offering context:
Like Dylan, Simon, and few others, Leonard Cohen has expanded the vocabulary of the popular song into the domain of poetry. And like both Simon and Dylan, Cohen will work and rework his songs until he achieves a kind of impossible perfection. He didn’t need Dylan’s influence, however, to inspire his poetic approach to songwriting. He’d already written much poetry and two highly acclaimed novels by the time Dylan emerged, leading the poet Allen Ginsberg to comment, "Dylan blew everybody’s mind, except Leonard’s."
To Chuck, the Shakespeare of rock and roll, congratulations on your PEN award, that's what too much monkey business will get ya . . . Say hello to Mr. Leonard, Kafka of the blues, and Lord Byron Keith [Richards] if he shows up. In all seriousness, Chuck, congratulations on this prestigious honor. You have indeed written the book with a capital B, and congratulations to Leonard, who’s still writing it
Bob Dylan writing on the occasion of the 26 February 2012 PEN New England Song Lyrics of Literary Excellence Award Ceremony
Note: "Monkey business" refers to Berry's "Too Much Monkey Business."
At a certain point, when the Jews were first commanded to raise an altar, the commandment was on unhewn stone. Apparently, the god that wanted that particular altar didn’t want slick, didn’t want smooth. He wanted an unhewn stone placed on another unhewn stone. Maybe you then go looking for stones that fit. …Now I think that Dylan has lines, hundreds of great lines, that have the feel of unhewn stone. But they really fit in there. But they’re not smoothed out. It’s inspired but not polished. That is not to say he doesn’t have lyrics of great polish. That kind of genius can manifest all the forms and all the styles.
From Paul Zollo’s interviews for SongTalk.by Paul Zollo
The Bob Dylan centerfold (photo by Elliott Landy) published in a 1969 edition of Rat Subterranean News was found at Babylon Falling, the site that first posted yesterday's 1969 Leonard Cohen interview and the photo of Leonard Cohen in bed featured at 1969 – Leonard Cohen Is In Rat Subterranean News.
I think [the connection between Leonard Cohen and Bob Dylan] is a relationship of tremendous mutual respect. I’m close to both of them and know the high regard one holds for the other. Whenever I see Leonard, the first question he always asks me is "How’s Bob?"
Larry “Ratso” Sloman, author of On The Road With Bob Dylan, in Dec 13, 2004 radio broadcast.