The Newark journal., 1908-02-07
BULL DING UP BUSINESS
AN ORIGINAL PLAN TO TEST
 NEW ENTERPRISES.
AN INDUSTRY INCUBATOR
Suggestions ss to Assisting Small
 Manufacturers Toward Success 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 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 its geographical posi- tion and what other advantages it may have, it may command the trade of
 It is to the advantage of every l town to have as many manufacturing plants as can be profitably 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 well car ried on in any community if only rightly managed. For many years ambitious towns have followed the l practice of offering bonuses to manu- | featuring concerns in order to secure their location. The bonus system has not always ope-%od satisfactorily. l Too often promoters of manufacturing enterprises look to the bonus offered as means of making profit rather than ta 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 it's activity main ly to the plans pursued by an enter prising class of Swedish citizens, who some 30 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 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 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 a 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 illustrate: If an organization be formed with $25,- 900 capital, $10,000 of this capital can De eDlpiOySu III tue equipment or 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 small enterprise is found to be seek ing a location, the directors are em- powered to negotiate for its 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 1 l,e carried on and thoroughly tested as 70 practical workings. Of course, 1t L.Nat not be expected that all of the