The Virginia enterprise., 1907-09-20
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.

Suggestions as to Assisting Small
Manufacturers Toward Success
and Helping Town Interests.
Regardless of the magnitude Of q
city or town there must be employ
ment for the people. In fact, popula-
ton of any city depends upon the op-
portunity that it may afford the resi-
dents gaining a livelihood. The agri-
cultural town receives it's support from
whatever mercantile traffic it can gain
from contiguous territory, and what
industries in the manufacturing line
that can be advantageously conducted.
The city draws support from the
smaller towns in an area of country,
| which, owing to it's geographical posi-
| tion and what other advantages it may
have, it may command the trade of.
It is to the advantage of every
town to have as many manufacturing
plants as can be proftably operated.
Natural conditions regulate manufac-
turing to great extent. Transporta-
| tiOn facilities, the cost of raw material
| and fuel are highly important factors;
yet there are certain lines of small
| manufacturing that can be we'll car
ried on in any community if only
rightly managed. For many years
| ambitious towns have followed the
| practice of Offering bonuses to manu-
| featuring concerns in order to secure
their location. The bonus system has
| not always operated satisfactorily.
| Too often promoters of manufacturing
! enterprises look to the bonus offered
as a means Of making profit rather
than to the legitimate conduct of the
business. Then, again, there are
stock-jobbing schemes that operate in
connection with the bonus plan, and it
has been known that hundreds of
thousands of dollars have been lost by
people anxious to further 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 is one prosperous city
|
1y to the plans pursued by an enter
prising class of Swedish citizens, who
some 80 years ago organized a
Swedish Aid society. This society az
vanced money to worthy workers who
desired to engage in business. Officers
of the society supervised the business
to great extent, and small concerns
which were established have grown to
be factories whose output run we'll up
into the millions annually. This aid
society loaned money to be repaid
from the profits of the business. The
plan was a successful one.
The system here referred to sug-
gests 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 to
reap 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 illustrates
II an organization be formed with $685.
900 capital, $4,000 of this capital can
be employed in the equipment of a
building for manufacturing purposes.
This building can have facilities for
half a dozen to a dozen small manu-
featuring concerns. The power neces-
sary may be supplied from 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
small enterprise is found to be seek
ing location, the directors are en-
| powered to negotiate for it's location
in the town. The concern may be in
cOrporated and a small amount of
stock taken by the holding company
Facilities for manufacturing and mar
keting whatever the product may be
are afforded. If the enterprise proves
| successful it 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 to
be lacking in merit it can be discard.
ed. In this manner from half dozen
to dozen different enterprises can
be carried on and thoroughly tested as
to practical workings. OF course, it
must not be expected that all of the
undertakings will prove successful
but if good judgment be used in select
ing enterprises, a large percentage
will prove profitable. Those who sub
scribe for the stock of the holding
company can be compensated by re
ceiving an equitable percentage upon
the amount invested in stock.
This plan eliminates the objection
able features of granting bonuses and
the subscribing for stock in concerns
that are in embryo stage and purely
experiments.
TOWN HELPS.