The Telegraph-courier. [volume] (Kenosha, Wis.) 1888-1946, 1916-12-21

employed in different sections of the
country.
Organization of the Kenosha Homes
Company. :
Without the usual haggling and
delay which unfortunately has been so
characteristic of other industrial com
munities, the Kenosha manufacturers
Immediately organized a stock company
for the building Of homes for work
ingmen. The capital of the company
while only $4,000 was backed up by
subscriptions among ten of the leading
factories to the amount of 100000
Officers were elected, papers Of organi-
zation taken out and the company
was ready for business.
Negotiations With Builders,
Negotiations were opened with a big
western contracting firm and a com
pany building ready cut houses. Plans
were submitted by these companies for
number of low cost houses and
methods of building were discussed. 1t
was the plan of these companies to run
spur track right onto the tract to be
built upon, large saw and planning
mills were to be set up on the ground,
labor saving devices of all kinds were
to be used, in word, the whole enter
prise was planned as one big operation.
Arrangements had almost been com
pleted with these outside companies
when local building enterprise was
finally heard from. An organization
had been whipped into shape by an ex-
mayor of Kenosha, whose one thought
was, that any house building to be
done in his city should only be done by
local labor. The organization included
the largest lumber yard in the city,
real estate man of standing in the com
munity, and number of contractors.
This company submitted plans and cost
estimates that really seemed so much
more favorable than the propositions
of the outside companies, that the
manufacturers gladly recognized local
initiative. A contract was immedi-
ately drawn.
A greement Between Kenosha Homes
Co and Kenosha House Building Co.
The agreement between the Homes
company and the local builders, the
Kenosha House Building Company was
for the erection of four hundred
houses to cost between $500 and $2500.
AS matter of fact these houses range
from $1,000 to $1,000 In the agree
ment these houses were to be erected
wherever designated by the Kenosha
Homes Company, whether on single lots
for cost plus ten per cent. The local
banks agreed to finance the proposition
up to sixty five per cent of the total
value and to take a first mortgage for
seven years. The Kenosha Homes
Company was to direct and supervise
the enterprise and to supply the bal
ance of the money needed, (thirty-fve
per cent and to secure a second mort
gage. 1t was arranged that the con-
tractors, the House Building Company,
were to make al sales, collections, keep
the books, etc, under, however, the
constant supervision of the Homes
company. In general, therefore, the
agreement between the Kenosha Homes
Company, Chat is the manufacturers) !,
and the Kenosha House Building Com
pany, was that the latter were to do
all the work from construction to sales
and collections, while the former
through their officials supervised the
enterprise and supplied the second
mortgage money. Tt is worthy of men
ton at this point to state that
the manufacturers, although they have
shown unusual initiative, neverthe-
less, to use slang expression thave
always retained a grip on the cold
end of the poker They are not
philanthropists, for while they supply
the second mortgage money, the agree
ment is, that this money must be paid
back first OF all, with interest at six
per cent. Furthermore, though at first
cash was being paid in, today in most
cases the manufacturers are endorsing
I AAS1iiCo COMPANY hOOCS, lHuS S1IbDIN
loaning their credit. Operating ex-
penses of the company are covered by
the FIVE per cent of the sales prices fee
claimed by the company on each sale.
Methods.
Time does not permit detailed ae-
count of the organization back of the
entire work. Briefly it is the adapta-
ton to the building of houses of the
same principles that guide our large
Industries in their manufacture of the
raw material into the finished product.
In other words, the Kenosha Homes
Company is not building houses, it is
manufacturing them. Lumber and
other materials Of all kinds are bought
N large quantities, thereby getting