St. Paul daily globe. [volume] (Saint Paul, Minn.) 1884-1896, 1890-09-03
NO FLIES ON PHELPS,
Though He Is Quietly Shelved
by the New Investment
Company.
His Contract for Three Years
Contributes to His
Placidity.
A Tale of the Evolution OF
Municipal Booming Com
panies.
J. j. McCardy Now on the Let
ter Heads Of the New
Company.


pears to the average newspaper reader.
Ten months ago few prominent
business men met and resolved that, for
the best interests of the city, union
should be formed to develop the manu-
features of ST. Paul. The idea caught,
and soon fiourishing organization ex-
listed under the title of The st. Paul
Industrial union. G. E.. Marvin was
honored with the presidency and every
thing looked lovely. Weekly meetings
were held, rousing speeches were deliv-
cred, and the enthusiasm of the mer-
chants ran high. Gradually feeling
permeated the members that some
thing more than talk was essential. The
exchange of complimentaries was very
pleasant and no one was hurt by the eX-
travagant prophecies respecting the
future greatness of the city; but that
was not enough. There must be an end
to talk. A few of the boIder spirits
of the union realized this and evolved a
gigantic scheme by which new manu-
features could be located in the city
and infant industries furnished with
capital necessary to enlarge their bust
ness. As is usual in the creation of
many big enterprises, the scheme was
kept secret for several weeks: The
Driginators did not take the public into
their confidence and ascertain how the
scheme would work. No; they secretly
conferred and hurriedly one after
noon communicated with Prof.
Phelps, then secretary of Duluth
chamber of commerce. They en-
gagged that gentleman as secretary
of their projected scheme, and con
tracted to pay him a salary of $4,000
year. This done, the Manufacturers
Loan and Investment association was
foated and subscriptions solicited. 1t
was declared that the association should
not be incorporated until S1,0OO.0 900 CAL
ital had been subscribed. The launch
ing of this association created added ell
thusiasm among the members of the In
dustrial union, and, for time it
seemed as if there was going TO
be. little difficulty i'll raising
the $1,000 600 capital. Secretary Phelps
was installed in his position, an office
was opened in the Pioneer building.
committees were appointed to solicit
subscriptions and members continued
TO wax eloquent upon the great era of
prosperity to the city which the estab-
Iishment of this association was about
TO inaugurate, But the enthusiasm of
The merchants was effervescent: 1t
ultimately boiled over, and there was
still practically nothing gained. Secre-
tary Phelps sat in his Office, was mum
dated with applications from individuals
desiring location and bonus for the
establishment of a factory-there are
plenty of these individuals abrOad-and
talked unlimitedly with inventors of
fire escapes, water pumps, butter cool
ers and every new-fangled idea the
mind can conceive. Weeks and months
glided by. The industrial union had
ceased its vaporingS. About $4,000 of
the SL00O,000 had been subscribed.
Manufacturers Loan and Investment
associationyo GU were informed that 1.-The
committees were still at work." that
"applications from manufacturers were
still coming in" and that ''everything
was going swimmingly."
But everything was not going "swlm-
mingly."
1t mad become evident that if the
Manufacturers Loan and Investment
association were not to be Incorporated
until the S1.000,000 capital was sub
scribed it never would be Incorporated.
So Mr.. Stickney was appealed to. The
president of the Kansas City line at
once overthrow the Manufacturers as
soclation scheme as being too vapOry,
and several weeks ago propounded his
scheme Of the Manufacturers Invest
ment company. The capital of this
company is made up of preferred ana
ordinary stock, and it has already been
organized. This company does not pro-
pose to give bonuses to manufacturers
for locating in the city, but merely
invests money in young industrial
enterprises which may be languishing
fD, I,o nfo fol Tn fhic If
pected great work will be done in de-
VelOping the manufactures and build
Ing up the city. The elected officers of
the investment company are different
to those of the loan and investment as
ISOLATION. Mr.. Stickney is president of
the company, and Mr.. Wilder was the
president of the association.
When the investment company
scheme was propounded by Mr.. Stick
ney it was readily taken up by the pro-
motors of the loan association, who had
themselves into hole. The association
was practically merged into the COM
pany, and, naturally, Secretary Phelps
was expected to go with it. That GER
tainly was the idea of the thirty gentle
men who had signed his contract
for a term of three years to the
tune of $4,000 year. There have been
vague mutterings for many months that
Mr.. Phelps was a too high-priced Off
cial, though no one doubted his ability
as an organizer aud boomer of a city.
His selection undoubtedly created some
opposition from the outset, and ended
in many business men refusing tC
identify themselves with the loan as
ISOLATION. One of them said yesterday
81 cannot tell you anything about the
loan association. l was opposed to the
selection of the secretary, and did not
like the manner in which the Organiza.
ton was worked. Hence L washed my
hands of the whole affair.""
Secretary Phelps, to all outward ap
pearance, is the secretary of the Man
ufacturerS' Investment company. Bui
he is not. The secretary of that com
pany is j. j. McCardy. This change
has only been made within the last few
days. Mr.. Stickney politely informed
the promoters of the loan association
that Prof. Phelps was too high-pricel
an officer for the investment company
and the directors Of that organization
concurred. Prof. Phelps was there
fore shelved, and j. j. McCardy elected
secretary. Mr.. McCardy will receive {
small salary the first six months. unit
an idea can be formed of the work ht
will be called upon to perform.
But what about Prof. Phelps? Has hi
not got an iron clad contract stipulatin&
that he will be entitled, if he lives. tt
$4,000 year for three years. signed by
irty prominent business men? Tha
is SO, and Prot. Phelps is in no wis;
worrying himself The thirty gentle
men are doing the worrying. Wha
do they intend to do? The money has
got to be paid whether Prof. Phelp:
works or not. He is ready to work
1t has, therefore, been decided
to place Prof. Phelps at the
head of bureau of information
and correspondence. He will pay par
ticular attention to the fostering Of
manufactures. The thirty gentlemen
hSge, decided to form themselves into
an association, and will shortly be
formally organized. This association
will have capital stock to provide fol
the expenses of the bureau. which Writ
ually means the sectary's salary, an6
the public will be asked to subscribe