The Marietta journal. [volume] (Marietta, Ga.) 1866-1909, 1889-02-21
A GOOD PLAN.
COTTON MANUFACTURING COMPA-
MES ORGANIZED ON THE BUILD.
ING ASSOCIATION PLAN

Mr.. D. A. Tompkins, of Charlotte,
N. O., submits to the Manufacture
ers' Record the following plan for
building cotton manufactures, which
IS well worth the study of the people
of Marietta.
In North and South Carolina
: number of cotton factories have
been built in the last two years, the
money for which has been raised in
accordance with a plan that is inter
esting and which has been so far
eminently successful. The plan is
as follows:
A company is organized which is
essentially a savings fund aud
building association. Instead of the
usual object of such organizations,
w., to create savings fund and
build homes for the members, the
object is to build cotton factory.
Subscriptions for stock are obtained
the assessments on which are small
monthly sums. Let us take the
case Of such a company as an illus
tration.
A company has had subscribed
1000 shares at 800 each. tits pro-
vided in the bylaws that the assess
ments on each share shall be, say,
90 cents per week. Upon organiza-
ton SO cents per share is paid by
each subscriber to defray expenses
of organization. Thus member
who may have subscribed for ten
shares would pay SIS at the organiza-
ton. Then at the end of each week
succeeding the organization so cents
per share would be due on each
share. Thus on 1000 shares the
company would receive $500, which
for 81 weeks would make about
$4,000.
This would give ample money
Within the year to pay for a good
building and make good payment
on the equipment, and with the en-
terprise in the hands of conserva-
tive men, would form the basis of
good credit.
With five hundl ed dollars per
month being paid into the treasury
the company could commence to
build very soon after organization.
Upon the completion of the build
ing, the money required to equip it
with machinery will be far in excess
Of what the assessments bring into
the treasury. The methods by which
this money is raised are First, to
borrow it on the company's note
endorsed by individual directors
from individuals, or from a local
bank which might rediscount the
paper at some money center. Sec
ond, take notes from all subscribers
for the full amount of their sub
scrlption then discount these notes
with the company's endorsement.
A bond and mortgage may be exc
cuted on the company'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 above plan, the
assessments on the shares of one of
them being at the rate of so cents
per week each, and on the other Is
cents. At Rock Hill, S c., and at
several other points in the Piedmont
region, mills are now being con-
structed on the building association
plan.
The assessments continue of
course until the entire one hundred
dollars per share is paid in full.
The plan serves not only the pur-
pose of being a means to get fac
tory, but creates an excellent saw
ing institution, much Of the money
which is paid into it being that vest
pocket money which goes nobody
know where.
At fifty cents per share per week
about four years is required to pay
the stock in full, and at twenty-five
cents about double that time.
One of the companies at Charlotte
will have a capital stock when paid
up of S125,0O0 and the other about
100000. Many dollar is being
put into them by men who pay reg