Evening journal., 1911-05-13
ONE WAY TO GET MINISTRIES.

G ONE cities which are trying to secure new
~ industries have what they call guarantee
fund i is said TO work we'll in bringing about
results Easton. Pa, and wilamsport Pa have
such funds. Our business men and others CON
cerned about the progress Of Wilmington should
be interested in the Easton plan Our Board of
Trade is interested II may pay them 10 read OF
the Easton plan in brief, and so we shall say
something about il
Under the plan the merchants Of Easton enter
into an agreement TO take subscriptions and 10
guarantee certain amount 10 be used bv ar
torneys-in-fact in the Endorsement of paper at
the banks. The committee Of the Easton Board OF
Trade originally was asked 10 raise in this man
ner S2sO000 but really started in 70 raise $500.
600 fund, and actually secured 100000 The Ex-
eoutive Council Of the Easton Board Of Trade COM
priseS representative from each of the five banks
and trust companies in the city who work in har-
mony with the Board Of Trade in all matters
In order 20 raise the guarantee fund il was
found necessary TO have the subscriptions amount
10 sum larger than was needed, so that in going
over the names Of responsible business men of the
city on whom n expected 10 call allotments
we're made amounting TO S7s0O00. Representa-
tives OF the banks we're called before the Council
of the Board Of Trade and their opinions we're
secured as 10 what merchants we're eligible in the
S5O0000 fund for the amount they we're going to
be asked 10 subscribe for.
The hank representatives approved the elipibil-
ity Of the various merchants by raising or lower
ing the proposed subscription before the Board
OF Trade Committee approached any Individual
or firm, so that II would not be possible for the
banks TO come back at the committee and say
the allotment was not agreeable 10 them
The Esston Board was really soliciting subsorip-
tions TO a credit club in which the bankers we're a
committee or admissions and stated al wha price
each member should join. The committee did
not get entirely over the city, but stopped when
the 100000 mark was reached The committee
believes that had he t,I
tnue the work the fund could have been increas-
ed by 100000 or more
The Public Utilities Companies such as the Fas
ton Gas and Electric Company the Leheh Water
Company, the Easton Transit Company we're put
down for subscriptions Of $4,000 each The two
breweries Of the city we're put down for similar
amount The other subscriptions ranged on down
from $4,000 to 81 ,Oo0 No subscriptions we're
taken for less than 81 600
As a result the sum of $4,000 was lent one
manufacturing concern which amount was fur
nished by the banks. the industry giving a mort
gaze secured bv bonds at 81 per cent interest
which will be used as collateral to notes given TO
the banks. and these notes are indorsed by the
three sttorneys-in-fsct mentioned in the agree
ment While the banks thus lend money with
bonds ss secured on the 100 per cent mortgage,
the business community Of Esston is really the en-
dorssr of the notes and make the banks safe in
their loans
Wiilismsporf, Pa. has guarantee fund Of $500
COO with subscriptions ranging from two Of S25.-
600 each BY the Williamsport Street Railway and
Lighting Companies. and the williamson Wa
ter Company down 70 many 81 900 subscriptions
There are almsot 100 subscribers in Wiihsmsport
70 the fund
The foregoing shows what other cities are do
Ing Wilmington with such fund and with ts
natural advantages should be able 10 secure many
industries Easton has done so and Easton's
natural advantages as a manufacturing center. we
think. are not comparable with ours