The Birmingham age-herald., 1904-10-23
Mir. BoWron Shows the Pro-
 greSs of Birmingham
THE BUILDING SOCIETY
Says This Unique Plan Adopted By Commercial Club to Aid Young ln- dustres Will Be Great
 Success.
BY JAMES BoWRoN.


 anee than was apprehended. and that its effect today is practically negative quantity. Houses are occupied. Bank de- posits grow and confidence is in the ar. Why should there be this difference as compared with the terrifying depression of 1894. which almost approached despair. I believe the answer to be that since that year the Birmingham district has so greatly diversified it's industries as to have greatly solidided and strengthened It's industrial position by becoming less de- pendent upon the production and market ing of crude material
 Since that year. dlsregarding the growth of coal mines and blast furnaces and rail- road terminals. the Birmingham district has secured the construction Of plants for the production of steel rails wire nails. fence, steel castings. roofing material, gas and water pipe soil pipe. cement gas- oline engines. cotton cloth. pressed bricks, dry kilns, cigars. crackers blaming mills, etc.
 Millions Expended.
 The construction, equipment and opera ton of these plants has caused the ex- penditure of millions of dollars in our midst; has in turn caused the construc- tion of many hundreds of dwelling houses; has afforded employment to thousands of carpenters. brick layers plasterers, painters, etc.; and these artisans, together with those employed in our new industries have been steady customers, calling for dry goods shoes food of every sort and variety hardware; swelling the receipts of transportation companies; enrtching our suburban land companies, and In every way tending to the development of the body polite.
 That so much has been done within the last decade Is a matter of the greatest satisfaction and mutual congratuation. May we not learn the lesson that still further expansion of the city is possible along lines of still more diversion of pro- duct. If so. how shall we best seek to promote such expansion.
 Satisfactory Subscriptions.
 Too often when negotiations are on foot for the construction of a new plant or the bringing here of one already established, a small committee gives it's time to the somewhat disagreeable task of begging In other words, of soliciting subscriptions. These are usually reluc- tantly given, for men do not wish to scat ter $1000 or 5000 apiece in enterprises which they cannot follow with their own observations and respecting which the se- curites to be subscribed for are likely to be relatively difficult to sell because of the limited capital of the market It Is not to be expected either, that score of people in Birmingham will always have money lying idle for such a pur- pose. I heard yesterday of textile plant proposing to remove here, but re- quirng $5O,0OO, which abandoned the ne- gotiations, for there was no money In sight Such concerns could not borrow money from banks for repayment over long time, as good prudent bankers must keep their funds reasonably within reach. They could not usually borrow such money from building societies or trust companies, as they are usually de- barred by their bylaws from lending on manufacturing plants.
 A Building Society.
 It has been proposed to the Commercial | club of Birmingham that a corporation | should be formed upon the cooperative principle to embrace some of the func- tions of a building society and some of those of trust company with the ex- i press object of aiding in securing new | industries. This idea has been approved 1 by the Commercial club, and the papers
 
 called "rhe Development Company" It's capital will be $l0OOOO divided into 2OOC shares of $50 each. Under the law of 1 Alabama, one-fifth of the amount, SIG per share, must be paid down before the company is organized for business The l bylaws provide the remaining $40 per share shall be paid $l per share per month for forty months. This method of sub scription brings within the reach of every manufacturer merchant, professional man and artisan in Birmingham the l power of assisting the good cause A street railway company, or a land com pany may subscribe for 5000 or 5000. A painter may subscribe for $50 If he does so, he will pay BIO down and $1 per montn thereafter for forty months.
 Exclusively for Promoting. 1 Under the charter of the development l company this money Is to be used ex- clusively for promoting the acquisition of new industries, and Is not to be subscrib- ed to stock and thus tied up indefinitely but is to be loaned either on mortgage of real estate and machinery or on good per sonal security, as may be decided from l time to time by the board of directors l Such loans may be made from one to | five years, available for repayment by the borrowers by monthly or quarterly in- stallments. This will enable concerns to come here, receive financial assistance after they have been adequately investi- | gated and repay the same gradually out | of their earnings. if they have fairly pros | porous business. If they haven't, then we don't want them and would not lend them the money.
 It is provided by the bylaws that the directors of the development company shall render their services gratultously and per cent per annum upon their money in the way of dividends until the surplus fund has been accumulated equal to the original capital. No one has any axe to grind in this proposition. It is merely for the advancement of Birmingham and it's supporters. The proposition has been edi- torially commended by the Iron Age, New York. and by the Baltimore Manufactur- CTS Record. If 1t is to be a thorough suc- cess. 1t must represent the public as a | whole We need not simply fifty or seven ty-hve members of the Commercial club | as stockholders in the development com | pany, but 800 citizens of Birmingham | Bessemer, Ensley. Woodlawn and the | other thriving communities that are our neighbors. The operations of the company | will be restricted to Jefferson county, and 1 thus will not be limited by any arbitrary present or future city lines. May I not hope that this movement or the Commer- cial club will be promptly supported by the public The subscription papers have been drawn up and will be open after the | next meeting of the Commercial club | probably November 4.