Evening journal., 1913-10-13
AFTER MILLION
FUND TO BOOST
WILMINGTON
Chamber o. Commerce Wants,
Amount Only Guaranteed
To Help City
OUTLINE PLAN AT
BODY'S NEXT MEETING

UOIldIn EuIdUA'f iuAN W. 'f' fN'''
ing of new industries for Whining
ton. It Is the opinion of many of the
members that the compaign will re-
suit in a great industrial boom for
Wilmington and the citizens Of the
city will never have cause 10 regret
picdging the fund for the bcttorment
of the city.
II Is pointed out that to grow i'm the
proper channels. or in fact to grow
at all Wilmington must have some
thing to offer tc large manufacturers
and other concerns If she expects TO
secure them in competition with
other cities. Many towns give away
land. exempt from taxation while
others have a guarantee fund.
The plan is not to raise one million
dollars but simply to get subscriptions
for that amount that would guaran
tee a sufficient credit II was first
proposed 10 raise only 100000. but Il
was decided that such an amount was
too small for a city like Whining
ton The details Of the plan which
are pretty thoroughly explained in the
appended letter of President Marvel,
viii DO presented TO the body at the
meeting tomorrow.
Mr.. Marvl says for several days VIC
have had under consideration what
appeared to be most desirable shoe
factory proposition, which. however,
VIII probably be lost 10 the city for
the reason that the needs Of the
propositions are little greater than
arc warranted by sound banking
methods where the banks arc hand
ling trust funds i'm the making OF
loans but as Mr.. Levy Is TO be an
"a ~ nrnnncQd rnrnnraffnn
and is putting his money into IL, and
the proposed business is otherwise
apparently we'll based, IL would seem
to be a most desirable thing II some
organization or development company
we're in a position 10 assiss tho pro-
posed company In its banking needs,
in jorder that the new industry of a
desirable character might be brought
I'd our town This particular cir-
6imstance followed by lengthy dis
Slussions with Mr.. pindell aud MIR. Nc
b5overn has convinced me that our
town needs a development company
with money or credit that would en-
able It to assist desirable industries in
locating here. and | am further con-
vinced that such a plan is capable of
being carried into effect in this city.
Such a plan as is now formulated
IN my mind is as follows:
First Incorporate development
nompany with proper powers with
capital stock say of S5O0.o00.
Second. Secure subscriptions TO the
entire capital stock each subscription
TO be- conditioned upon the securing
Of total of 100000 in subscriptions
and The payment Of such subscrp-
fions 10 Ne called for III such times
nd i'm ht. al
recteq(by the board of directors OF
the development company
Third Cali a conference OF tho VIII
fIhinston bank presidents and cashiers
and ascertain IL the development COM
panY with $500. 900 of subscriptions in
its treasury would ontitle IL TO a total
credit among The various banks 20
an amount say OF 100000 and II its
endorsement of commercial paper
would be accepted by our banks TO
a maximum sum sas of 100000.
Fourth. Have tho development COM
pany consider the various prOposi-
tions from new industries and upon
deciding that a proposed industry is
worthy and desirable for the commu-
nifty to authorize the proper officers
of the development company TO en-
dorse the notes OF said concern to
an amount agreed upon. In order that
said concern may secure the accom-
mediation at its bank that may be nee
cssary for its business.
Fifth II there at any time shoul,
be a default on any note endorsed j.,
tho development company. the direc
tors TO call from the subscribers Il
lts capital stock a certain per ccp|
OF each subscription sufficient 10 plac
it ia funds to meet tho obligation {
the bank. or it may be felt wise fo
the development company TO Gail iC
five per cent In the first ins,anc
and thereby give Il available cas-
Of say S250OO.
Sixth Have a proper bylaw adop
cd, restricting the endorsements
the development company say
100000 in any one year. and a tot
outstanding al any time say OF S2Ot
000
seventh IF a loss is incurred I
endorsement as aforesaid the doyclo
ment company TO take necessai
steps 10 recoup as far as may be fro
the concern accommodated any su
plus funds either deposited In ca.
or invested In negotiable securiti'
that may be readily diverted in
cash
Eighth. 7 am convinced that th
plan can be carried TO a successf'
conclusion and If this be true i
Possibilities for good can readily
forecasted by any one. The subscril
tions to the capital stock hereiubefol
referred to would be legal obligation
on the part of the subscribers th'
would put the development compar
in assets that would entitle II to sui
stantial credit. The subscriber wou
be lending his credit 10 the amour
OF the subscription to the develol
ment company practically 10 q
same extent as If he had given h
promissory note but wirnout the en-
parrassment of having such note
4 outstanding. The subscribers cou
b icok forward to the possibility
F paying say five per cent and a seri
Of unfortunate endorsements might
time necessitate the payment of
g per cent, but beyond this I do n
foresee any probability of further d
" mands. Such plan would enable
70 put through the Bee Hive bmldi
proposition promptly. to say nothi
s OF other lines of activities. Il mis-
q not matter from a standpoint Of cr,
a IL whether our total subscriptions
q the treasury of the company amour
b ed 10 $500 900 or $1,000 900, aes 500
900 Of legal subscriptions might
title US with the banks TO all I
credit which we might desire TO Il