The daily Gate City. [volume] (Keokuk, Iowa) 1855-1916, 1910-11-23
BUILDING UP A TOWN.

w. T.. Holmes, secretary Oh ,he
Sioux CITY Commercial club. and
John McHugh, president of the First
National bank of that city, have been
investigating the methods Of city pro-
motion employed at Easton and Will
Transport, Pa, towns of 10000 ana
$4,000 population respectively. Mr..
McHugh represented the Sioux City
clearing house association, to which
he will report upon his return from
the east. We are indebted to the
Dubuque Times-Journal for the fol-
lowing facts which Messrs. Holmes
and McHugh learned in the course
of their Investigations. Promoters OF
Keokuk prosperity should find them
interesting. informing and suggestive.
Under the plan employed at Easton
and Williamsport, the Commercial
club guarantees securities issued by
the new industries, thus enabling
them TO obtain credit at the banks.
About year ago the business men
OF Easton undertook to raise guar
antee fund of 100000. 1t soon
that the first factory located with the
help of this credit system was the
Treadway company, foundry works,
handling iron and steel and employ
ing 1000 men. This concern was
given loan OF $4,000 which will
be paid back in installments of not
less than $1,000 a month. The com
pany bought twenty-nine acres OF
ground and is now erecting modern
factory buildings. Another plant Sc
cured manufactures rubber betting.
Fifty thousand dollars was advanced
$4,000 loan and the town will with
in few weeks close up with num-
Der OF others The policy hereafter
4 will be 10 secure large number of
! small plants rather than one or two
big ones.
The business men OF Easton are
i without exception delighted with the
way the plan is working. They have
+ received thousands of applications for
place, and all they have to do is ex.
ercise iudgnen; in sitting out those
that are safe and likely to be profit.
able.
At Williamsport MIR. McHugn aud
Mr. Holmes interviewed publishers,
bankers and commercial men. vii
Transport was in the dumps when
the guarantee plan was evolved. 1t
had twice been inundated BY terrible
: floods. one of them the same that
wiped ou5 Johnstown The timber of
the country had been exhausted. The
city's thirty-two sawmil's had been
reduced TO one, and the large planning
mills and sash and door factories had
been closed o. removed MANY of its
well 10 do men We're impoverished.
The first fund raised was 1916 .0oO.
The results were so uniformly graf
flying that five years ago second
fund was subscribed OF 1851 900 A
larger part of this guaranty has been
used, but there is now comparatively
little of the paper of the corporation
~ In the banks Of the city. There have
: been some nominal losses, but with.
:, out exception they were on old con
Germs thao were seeking to bolster III
themselves in recovering from severe
y Hood loss. Not dollar has been los
~ on new enterprise, and even The
y, greatest loss on an old enterprise re
= suited in the foundation OF a new
company that has been one OF tht
most conspicuous successes of The
IS city.
y Business men there declare tina til,
~ Creates effect Of the plan has beer
y not SO much in direct financial wa,
y bun lndirectly by advertising tn.
a town and stimulating local faith /,
al its enterprises. Companies that a,
e not need the financial assistance h.,
a can float bonds or issue stool, ind
IS. pendently have located there an
40 raised money unaided Business me
in one hour on ope occasion subscr,,