St. Tammany farmer. [volume] (Covington, La.) 1874-current, 1907-08-31
Bull DING 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 cf 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 it may afford the resi-
dents gaining 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 its geographical posi-
ton 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 profitably operated.
Natural conditions regulate manufac-
turing to a great extent. Transports
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 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 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
in Illinois that owes its activity main
ly to 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 great extent, and small concerns
which were established have grown to
be factories whose output run well up
into the millions annually. This aid
society loaned money to be repaid
from the profits of the business. The
plan was 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 to
reap q harvest through the exploita-
ton Of unsound enterprises. This
, plan involves the incorporation of q
promoting company. Local capital
may be subscribed to whatever extent
, is deemed eXpedient. To illustrate:
If an organization be formed with $685.
600 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 q dozen to dozen small manu-
featuring concerns. The power neces
sary may be supplied from general
power plant. The machinery for man
hi I'D rod
, A board of directors shalt 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 it's 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. 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 OF
:; the stock can be placed in the genera
fund for the extension of other enter
= prises. Should an enterprise prove II
i. be lacking in merit it can be discard
ed. In this manner from half a doZe1
= to a dozen different enterprises cal
!, be carried on and thoroughly tested al
4 to practical workings. Of course, i
must not be expected that all of thu
undertakings will prove successful
but if good judgment be used in select
. ing enterprises, large percentage
y will prove profitable. Those who sub
scribe for the stock Of the holdiu;
= company can be compensated by re
4 ceiving an equitable percentage upol
= the amount invested in stock.
This plan eliminates the objection
able features of granting bonuses an
the subscribing for stock in concern
Y that are in embryo stage and purel
n experiments.