Worcester daily spy. [volume] (Worcester [Mass.]) 1850-1888, 1858-06-21
GBe 9ailp SPp,
MONDAY, JUNE 81, 1858.


Manufactures in MasNachusettss
r B. Bjeelow, Esq, of Clinton, in this coun'
~. has puSlished pamphlet of twenty eight pa
ees entitled, Remarks on the Depressed Con-
dtion of Manufactures in MASSACHUSETTS, with
Suggestions as to its Cause and Remedy. His
suggestions do not, as one might suppose, have
reference TO the question Of tariff or free trade,
however much that of itself might affect the mat
ter, but are confined solely to the discussion of
private enterprise, as superior to corporate man
agement, he deeming the system Of manutaetur-
ing by corporations" which has obtained SO ex-
tensively in this State, radically wrong, and i'm
polite, disenabling US to compete wits foreign
rivals.
A comparison is made between the results OF
manufacturing enterprise in England and IN TINS
country, showing the profits there to be double
those here, on the same capital Single ind'Vid-
nails in Great Britain, from the smallest begin
ninRs. by manufacturing on their own account
anass immense fortunes, instances of which, Mr.
r cites while here we witness the failure of es-
Establishments conducted with the same facilities
on the corporate system, The corporation
system has been tried in England, and signally
failed.
Massachusetts is also put in contrast, in this
pamphlet, with Rhode Island, and to the great
evident advantage of the private enterprise plan
whicn is pursued in the latter State. The author
instances the case Of the wealthy house of A.
w Sprague, who are about starting in the midst
of the present depression, new mill of fifty
thousand spindles because private interest can
take advantage Of the times, while corporations
must wait the disposition to invest, which does
does not exist except during general prosperity,
when all their constructions must bs at the high
est cost Speaking Of the new immense establish
ment Of the Messrs. Sprague, originated at the
time of the greatest general pecuniary depression
in Massachusetts, Mr.. Bigelow, who is well quail
flied, from his own connection with msnnfactnr.
ing interests, to judge of such things, says, in
further striking contrast Of the two systems of
enterprise, private and corporate
"Whe this private firm, relying solely on its
own resources, has thus been pushing quietly for
ward truly gigantic enterprise, several of the
great corporations of Massachusetts have been
struggling for existence and, at this moment,
one of them, whose aggregate of spindles just
equals that of the Sprague Mill, is anxiously
seeking, in the Boston money market, for the
means which are necessary to keep it alive
Though its stockholders are many of them
wealthy, they come with great reluctance to its
aid. Their confidence in manufacturing stocks,
which was once so strong, seems to be quite gomez
and they hesitate to embark new funds, although
in other way eau they preserve the old. These
two cases are striking in their similarity, and
suggestive in their contrasts thA
In any business, system of operations suited
to its character and needs, may be expected to
have natural development. 1t will manifest its
fitness in a steady and Simultaneous advance of
growth and strength. Under such system,
each new undertaking should surpass its prede-
cessors in the simplicity and economy of its ar
engagements, and the efficiency of its action. I'm
der such a system, Lawrence, projected by the
very men who had built up Manchester and Low
ell started with every advantage of experience
and capital Lawrence, the latest and most COM
plete experiment Of Incorporation enterprise, should
have been its greatest success and its browning
triumph. How far from this it actually is, need
not say" y. -e,.t ,..
To remedy the evil of the present state Of
things, Mr.. Bigelow proposes, not radical
change at once, but gradual approach to some
thing better, by taking advantage of the provis-
ions OF the statute of 1885, which, it now appears
was drawn at his instance, and received at the
time the approval of several distinguished law
yers, merchants, and manufacturers. This law
allows the issuing Of two kinds of stock, general
and special the special stock not to exceed two
fths of the actual capital of the corporation and
to be entitled to fixed half-yearly dividend, not
exceeding four per cent, and in no event to be Ii
able for debts Of the corporation beyond their
stock the holders of the general stock to be
jointly and individually liable for all debts of the
corporation, until such special stock shall be
deemed in full.
1t can be perceived, at glance, how the infu-
sion of so large an element of Individual interest
in our manufacturing enterprises, must conduce
to its greater success; but, whether the new mode
is practicable or not, under present circumstan.
ces, those most interested must determine for
themselves. We can only commend Mr.. Bige-
lows pamphlet to their consideration, as con-
tanning much that Systematically true, which viii
have to be practiced upon more or less before we
can expect permanent basis Of successful manu-.
featuring enterprise to be established in Massa-
chusetts. This pamphlet has received the high
as we have eeen.