The western sentinel. [volume] (Winston-Salem, N.C.) 1887-1926, 1889-03-07
HOW TO BUILD FACTORIES.
A New Plan That Has Succeeded and
Should be Tried in Winston.

"We need more factories"
You can hear people on the streets
say that almost every day. They
mean this: tobacco manufacturing
alone will not make this town what
we ought to he. We need diversity.
We want q chair factory, clothing
factory, shuttle and bobbin factory,
barrel factory, shoe factory and hum
dreds of other factories.
How shall we get them?
Somebody will say that a large
amount of our capital is in new rail
roads, &c. Granted, but there is
enough money y t in Winston-Saiem
to run a round dozen good-sized fac
tories if it could be got together
How can it be con eentrated? We
will submit Il plan, recently proposed
by MIR. ID. A. Tompkins, of Charlotte,
in the Manufacturers Record:
, In North and South Carolina a
, number of cotton factories have been
, built in the last two years, the mon
ey for which has been raised in ac-
cordance with this plan, which has
been so far eminently successful. The
plan is as follows:
A company is organized which is
essentially a saving fund and build
ing association. Instead of the usu-
al object of such organizations, viz,
to create savings fund and build
homes for the members, the object
is to build cotton factory. Sub
scriptions for stock are obtained,
the assessments on which are small
monthly sums. Let US take the
e
tratiOn
A company has been subscribed
1000 shares at 500 each. 1t is pro-
vided in the bylaws that the assess
ments on each share should be, say,
so cents per week. Upon organiza-
ton so cents per share is paid by each
subscriber to defray expenses of or
ganization. Thus member who
may have subscribed for 10 shares
would pay S. at the organization.
Then at the end of each week succeed
ing the organization so cents per
share would he due on each share
Thus on 1,O0O shares the company
would receive $500 which for so
weeks would make about $4,000.
This would give ample money
within the year to pay for good
building and make a good payment
on the equipment, and with the en-
terprise 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
company could commence building
very soon after the organization.
Upon the completion of the building
the money REQUIRED to equip it with
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 local
bank which might rediscount the
paper at some money center. Second,
take notes from all subscribers for
the full amount of their subscription;
then discount these notes with the
cOmpa9y's endorsement. A bond
anu mortgage may be executed on
tht company's property as a cola
terra. with the above notes if neces
s;,ry to accomplish IL loan.
Ia Charlotte, n. c., two mills are
nov i'll operation, both of which
We. built ON the above plan, the
H., sesss;,nents on the shares of one o.
them being at the rate of so cent.
pc; seek each, and on the other p
cents. 1t Rock Fill, 5. c., anu Il,
several other points in the Piedmont
region mills are now being construc-
ted on the building association plan.
The assessments continue of coui ST
until the entire one hundred dollars
per share is paid in full. The plan
serves not only the purpose of being
means to get a factory, but creates
an excellent saving institution, much
of the money which is paid into it be-
ing the vest-pocket money which
goes nobody knows where.
At fifty cents per share per 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 1926, 900 and the other about
100000. Many a dollar is being
put into them by men who pay reg
ularly and promptly, but which
would never be saved at all except for
the obligation which this stock
creates.
A. o. U. w. Lodge.