The gold leaf. [volume] (Henderson, N.C.) 1881-1911, 1889-04-25
How to Establish Factories.

How to Establish Factories.
Mr.. d. A. Thompson, of Charlotte
writes as follows to the Manufactures
Record about organizing factories on
the cooperative plan. He says:
A company is organized which is
essentially a saving fund and building
association. Instead of the usual OBJ
ject Of such organizations. viz, to create
a savings fund and build homes for the
members, the object is to build cot
ton factory. Subscriptions for stock
are obtained, the assessments on which
are small monthly sums. Let us take
the case of such company as an Illus
tration
a company has been subscribed l.
900 shares at 500 each. 1t is pro-
vided in the bylaws that the assess
ments on each share should be, say, 50
cents per week. Upon organization
SO cents per share is paid by each sub
scriber to detray expenses of organiza-
ton. Thus a member who may have
subscribed for 10 shares would pay S.
at the organization. Then at the end
of each week succeeding the organiza-
ton 50 cents per share would be due
each share, Thus on I 900 shares the
company would receive $500 which for
Sc weeks would make about $4,000.
This would give ample money with
in the year to pay for good building
and make good payment on the
equipment, and with the enterprise in
the hands of conservative men would
form the basis of good credit.
With five hundred dollars per month
being paid into the treasury, the COM
pany could commence building very
soon after the organization. Upon the
completion of the building, the money
required to equip it with machinery
will be far in excess of what the assess
ments bring into the treasury. The
methods by which this money is raised
are: First, to borre'" aderson. som
pany's note endorseton the -zll-
rectors, from indivitdivlldt,%5 Or from
local bank which might rediscount the
paper at some money centre. Second,
take notes from all subscribers for the
full amount of their subscription then
d iscount these notes with the Compa-
ny's endorsement. A bond and mort
gage may be executed on the compa-
ny's property as collateral with the
above notes if necessary to accomplish
a loan.
In Charlotte, N. c., two mills are
now in operation, both of which were
built on the aboveplan, the assessments
on the shares of one of them being at
the rate of 50 cents per week each, land
On the other IS cents. At Rock Hill,
S. g., and at several other points in
the Piedmont region mills are now
being constructed on the building asso-
citation plan.
The assessments continue of course
until the entire one hundred, dollars
per share has been paid in full. The
plan serves not only the purpose of
being a means to get a factory, but
creates an excellent savings institution,
much Of the money which is paid into
it being the vest-pocket money which
goes nobody knows where.
At fifty cents per share week about
four years is required to pay the stock
in full, and twenty five cents about
double that time.
One of the companies at Charlotte
will have capital stock when paid up
of $4,000 and the other about $780,
900. Many dollar is being put into
them by men who pay regularly and
promptly, but which would never be
saved at all except for the obligation
this stock creates.
In North and South Carolina a
of cotton factories have been
built in the last two years, the money
for which has been raised in accord
ance with this plan, which has been so
far eminently successful.