The Washington herald., 1909-04-18
How TRADE BODIES
AID MANUFACTURE
Petersburg Invests in Stocks
Of Local Corporations.
PAYS A GOOD PERCENTAGE
WiIIIsmsDOrt Holds Fund by Which
II Guarantees Credit for It's Mem
bers TO n Specified Per Cent of
Assets-SOme Furnish Sites and
some Remit the Taxes.

IN discussing the question, az Its last
meeting, whether The local Chamber OF
Commerce should embark upon a policy
+ OF investing its funds in manufacturing
/ enterprises TO q small extent. much sur
( prise was manifested by some OF the
/ members that such bold proposition
I should BE- advanced. These members
( were very positive in the belief that such
/ a thing had never been done BY a SINH
I lar body. and that il would prove dlsas-
/ tr0us II undertaken in Washington. Some
I Of the longest-headed business men OF
+ the Capital opposed the proposition. be-
{ cause OF the expressed fear that Il was
! not,a safe OF sane policy
Some who heard the discussion we're
considerably surprised at the statements
made by reputable lawyers and business
men that trade bodies are not accustomed
4 TO assist manufacturing in the way pro
/ posed, when IL has been common practice
I for the past dozen or more years. Since
! the meeting Of the chamber The Wash
Ington Herald has obtained Information
on the subject, which is given herewith
/ for the purpose OF general enlightenment.
Falls Into Three Classes.
/ The assistance given By chambers Of
commerce and boards Of trade through
/ out the country naturally falls into one
( OF three classes
/ One OF these IS direct investment in the
funds OF the proposed Industry IN buying
stock or otherwise helping the enterprise
along by The investment Of money. This
I is the policy pursued az Petersburg. Va.
I The chamber Of commerce OF thar cirv
: is corporation. with Dies o. s. 90 2
{ year for each member. The money. 50
collected. over and above the cost q
running the body, IS invested directly in
. manufacturing enterprises generally
small amount IN this one and that one
/ which promises well The Petersburg
chamber holds stock al the present tine
/ IN several manufacturing plants.
/ The president Of the body said in Wash
ingtOn recently that the chamber in Pc
tersburg had never lost a dollar from n
4 vestment IN such concerns. because OF
I the care taken before the investment g
/ made On the contrary. he said the only
outlay Of the chamber OF this character
+ had always paid good percentage on me
. investment. The advantage OF The policy
+ was described by the president OF the
I body as the best means available 10 en-
courage the investment OF local capital
. 20 manufacture.
WilIiamspOrt Has Plan
( The second method pursued BY trade
bodies IN helping young industries Is 70
4 guarantee credit Up 20 a certain point.
/ THE ~ra -,0rF~-- g,---r-,z
I years ago by The WIIIsmsport pa
/ Chamber OF Commerce ard maintained 20
I the present tine.
7 Originally. a large sum o. money was
raised by subscription 10 this guarantee
! fund. amounting 10 $4,000 ar The start
and afterward raised 10 a larger sun.
I Upon application from a member II. good
standing in the body. credit AZ the banks
/ IS underwritten up 10 a specified per cent
: OF the assets OF the company. these be-
/ Ing determined beforehand by an expe-t
accountant
a small percentage charge Is made for
the use o. this privilege, which Is added
/ 70 the fund. This plan has worked vel
l IN Wiliamspo-t- and on several occasions
/ has saved manufacturing plants from dis
asJer. The WiIiamsport plan IS being
applied IN several Southern cities win
some notifications.
Some Bodies Give a site.
The third method Of assistance 10 man
ufacture consists in the gift OF a site 10
build. or the remittance Of taxes or the
plant for specified number OF years.
This IS usually brought about without the
direct investment Of money for the pur-
pose. but not always so. When necessary.
70 raise money 20 pay for the site it may
be done by subscription or by appropria-
ton direct from the funds OF the CONNER
cial body
Assistance OF this kind is very general
throughout the country. and by means OF
it many factories have been started in all
parts Of the United States
Among the cities where Il IS known
such assistance has been given recentlv
are Mobile. Chattanooga. New Orleans.
and Galveston.