St. Paul daily globe. [volume] (Saint Paul, Minn.) 1884-1896, 1890-08-05
The Railroad Magnate Deliv-
erS a Lecture to the Cham
Der OF Commerce
On the Desirability Of Manu-
featuring Interests for
Any Great City.
Traditions Of the Seventies
That Have Impeded Nearly
All Progress.
A Business Organization to
Aid in Developing Local
Manufactures.

Manufactures.
The point of interest at the meeting
of the chamber of commerce yesterday
was a paper on manufacturing, by
A. B. Stickney, president of the Kansas
City road. 1t occupied about an hour
in delivery, and held the close atten-
ton of the members. He began by
showing the great Importance of manu-
featuring to city. 1t is well known
that the largest cities are those who do
the most manufacturing. New York
city, the foremost in population and
com merce, is also the largest manufact-
uring city in respect to number Of EN-
ployes. Its manufactures. according to
the census Of 1880, employed over 227,-
600 out Of its total population of 100000
OR about 10 per cent. Philadelphia,
then the second city in population, was
also the second city in the business of
manufacturing, and thus employed over
$4,000 out of total population of S47,-
600, OF about 20 per cent: while Chicago
then only employed in this line about
$4,000 out of total of $4,000, OF Is
per cent, and st. Paul about $3.50
out of total of 41,000, or 1874 per
cent, very nearly the same percentage
as Chicago. st. Paul has not been so
much of laggard as many suppose. AS
has been said,t statistics of 1880 shows
that then 1215 per cent of its population
were employed in manufacturing
against IS per cent in Chicago, and 10
per cent in New York city. In 1880
something over $3.50 of our people were
SO engaged, or 1919 per cent. In 1889
the estimate was $4,000, or about 16per
cent. The number of establishments
in 1880 was 593; in 1889 estimated at
92S. While cannot vouch for the alb
SOlute accuracy of the data for 1889, and
it would seem to me evidently too high,
yet is quite safe to conclude that man
ufacturing has been an existing bust
ness here of great magnitude in the ag-
gregate for many years, and that it has
rapidly increased within the last dec
ade The fact of its long existence
and rapid increase is the best possible
evidence that as whole it is profitable.
The Bonus Hunters.
take it that the desire to increase manu-
IdClOrl6S, ITOIll luG puUlIC oIdlQpOJut. 10 W
furnish increa. ed and steadier employment
to our present population, as well as to at
tract new people to the city by the offer OF
employment.
There are evidently two ways of accom-
plishing this result:
FirstETnere are now. existing something
like 700 or 500 establishments which have
been here so long that they have taken root,
and many of them need more capital to
largely increase their output and number OF
employees.
Secondly starting new enterprises with
all the risks attending their infancy and
early childhood.
1t is my Judgment that the first class is the
most promising to begin upon, but of course
the second class should receive proper con-
SideratiOn
The new enterprises which are presented
should be subject to careful investigation
before embarking in them.
1t may be unknown 10 many that the in
tense competition which has recently grown
up between localities to secure new manu-
facUuring establishments has brought into
existence new species OF cramps. viz.
the bonus hunting manufacturer" He
usually owns few old boilers and an ante
diluVian engine and few tools, which he
terms "a plant" which for q reasonable
bonus he is willing to set up i'll any city and
let it remain there as long as he thinks he
can afford to for the bonus received. Their
business is systematIZed. They have their
who usually get a commission from the
locality, and also share in the bonus. One
of these promoters claims that for a proper
consideration he can furnish any locality
with sixty 10 seventy first-class concerns to
| order on short notice. Beware of those
| tramps! Beware of all bonus hunterSl
There are, however, occasionally good con-
| Germs who for legitimate reasons would like
| to change their location, but who have
| neither the increased capital necessary nor
| the make the chanon without
| assistance. Such men who are worth having
| ask no bonus, and usually make reasonable
business proposition for the added capital
| they require. 1t goes without saying that
| concerns of ample capital and prosperous
| business rarely ever desire to make change
| in location. Look at the proposition from
| whatever standpoint you may, the one thing
necessary seems to be available capital.
The speaker devoted considerable
time to showing that manufactures
| we're in financial disfavor in st. Paul,
| especially with the banks, because of
certain "spooks" Of the failures back in
| the seventies. This must be changed
before there can be much progress in
| st. Paul. He thought the Cuisines
men of this city are doing their duty
faithfully and we'll in taking care of
| and ever striving to increase their own
| business. For them to take any consid-
cradle amount of capital and lock it up
in new enterprises would necessarily
require curtailing their present
business. What advantage would that
be to the city? Let us be done then
with the ever-present cry: "Why don't
| the business men do this, and that? And
| let some of the rest of us put our Shout
der to the wheel. For my part, would
| like to see more of the younger men
coming forward and taking more of a
| leading part in business affairs. But
am not disposed to find fault with any
class or age of the citizens of st. Paul,
| for, so far as | am informed, as a rule
they have been attending to their bust
ness" Finally, the speaker got to the
| point at which he was aiming, and said
What Was the Model?
In planning the Manufacturers In
veStment company, we have followed as
| nearly as practicable the model of build
ing associations. The subscriptions to
its stock are made payable in small
monthly installments of SO per share
! but there is one notable difference be
| tween the stock of this company and
theirs. The building associations issue
but one class of stock, its members al
standing in this respect upon par
while in this investment company there
are two classes; one, the preferred, be
ing practically first mortgage upon
all the assets of the company, as il
is entitled to preferred guaranteed
dividend of per cent, payable semi
annually ont of net earnings, before
any dividend can be paid upon the com
mon, and in liquidation to payment Of
principal.in full before anything can be
paid on the common stock. By this ar
rangement the risk of the business falls
upon the common stock; but, as it is a
business principle that the greater risk
is entitled to the greater profit in case
of success, it is provided that, in the
event that the earnings are sufficient
but not otherwise. the common is en-
titled to 2 per cent more per annun
than the preferred.
| Suppose this company has reached