The diamond drill. (Crystal Falls, Iron County, Mich.) 1887-1996, 1907-08-17
BUILDING UP BUSINESS
AN ORIGINAL PLAN TO TEST
NEW ENTERPRISES.
AN INDUSTRY INCUBATOR
Suggestions as TO Assisting Small
Manufacturers Toward Success
and Helping Town Interests.

and Helping Town Interests.
Regardless OF the magnitude OF a
city or town there must be employ
ment for the people. In fact. popula-
ton OF any city depends upon the OPP
portunity that II may AFFORD the resi-
dents gaining a livelihood. The agri-
cultural town receives its support from
whatever mercantile traffic Il can gain
from contiguous territory, and what
industries In the manufacturing line
that can be advantageousiy conducted.
The city draws support from the
smaller towns ia an area OF country,
which. owing to It's geographical posi-
tion and what other advantages II may
have. II may command the trade OF.
II Is TO the advantage OF every
town 10 have as many manufacturing
plants as can DO profitably operated.
Natural conditions regulate fnanufac-
turing TO a great extent TraAsporta-
ton facilities. the cost OF raw material
and fuel are highly important factors:
yet there are certain lines Of small
manufacturing that can be well car
ried on In any community II only
rightly managed. For many years
ambitious towns have followed the
practice OF offering bonuses 10 manu-
featuring concerns In order TO secure
their location. The bonus system has
not always oper1<ed satisfactorily.
Too often promoters OF manufacturing
enterprises look 70 the bonus offered
az means OF making profit rather
than TO the legitimate conduct ~ the
business. Then. again. there are
stock iobbing schemes that operate In
connection with the bonus plan. and II
has been known that hundreds OF
thousands OF dollars have been lost by
people anxious 10 trther the manu-
featuring interests OF their home
towns.
Numerous manufacturing centers
have been gradually built up through
the right kind OF cooperation OF the
citizens There IL one prosperous city
In Illieois that owes It's activity main
ly 10 the plans pursued by an enter
prising class OF Swedish citizens. who
some 80 years ago organized a
Swedish Aid society. This society ad-
vanced money to worthy workers who
desired TO engage in business. Officers
of the society supervised the business
to a great extent. and small concerns
which were established have grown to
be factories whose output run well up
Nner he annnullU Thla al
society loaned money 10 be repaid
from the profits OF the business. The
plan was a successful one.
The system here referred TO sug-
gests a means whereby each town or
city which desires TO build up manu-
featuring interests can do so at the
minimum cost; that Is. that the dan
gers and objections offered by the
bonus systems are entirely eliminated.
as is also the chance for promoters 10
reap q harvest through the exploita-
tion OF unsound enterprises. This
plan involves the incorporation OF a
promoting company. Local capital
may be subscribed TO whatever extent
Is deemed expedient. To illustrator
II an organization be formed with $685.
600 capital, $4,000 OF this capital can
he employed in the equipment OF a
building for manufacturing purposes.
This building can have facilities for
half dozen TO dozen small manu-
featuring concerns. The power neces.
sary may be supplied from a general
power plant. The machinery for man.
ufacturing can be installed as required
A board OF directors shall be selected
to oversee the business. Whenever
a small enterprise is found to be seek
ing a location. the directors are EN-
powered TO negotiate for its location
in the town. The concern may be In
corporated and small amount OF
stock taken by the holding company
Facilities for manufacturing and mar
keting whatever the product may be
are AFFORDED II the enterprise proves
successful II can be moved from the
experimental station into a separate
building. the holding company invest
ing in It's stock. and the dividends on
the stock can be placed In the general
fund for the extension OF other enter
prises. Should an enterprise prove "a
be lacking in merit Il can be discard
ed. In this manner from half dozen
10 a dozen different enterprises car
be carried on and thoroughly tested al
10 practical workings. OF course. Il
must not be expected that all OF IN,
undertakings will prove successful
but n good judgment be used In select
ing enterprises. large percentage
viii prove profitable. Those who sub
scribe for the stock Of the holdinl
company can be compensated by re
ceiving an equitable percentage upor
the amour. invested In stock.
This plan eliminates the objection
able features OF granting bonuses ant
the subscribing for stock In concerni
that are In embryo stage and purely
experiments.