The Richmond palladium and sun-telegram. [volume] (Richmond, Ind.) 1907-1939, 1919-04-30
Differentials as They Affect City's Growth

Dlfterentlals as They Affect City S Growth
Richmond along with other cities of tn
United States is making determined effort t.
increase the number of industries in its confines
on the theory that the prosperity of the munich
patty is intimately related with the industrial
growth of the city.
In accord with this theory, Richmond adduce
a long list of inducements to entice prospective
factory owners to locate here. The advantage
of the city are set forth with the one object il
view of attracting the attention of the factor.
owner and of ripening his decision to locate hi
plant here.
Kansas City is doing the same thing. Thu
Kansas City Star presents phase of this com
petitive bidding for industries which is somewha
out of the common run of municipal advertising
because it strikes at the very fundamentals O.
the proposition. The editorial presentation O.
this problem in the Kansas City Star can be ap
piled to Richmond.
No citizen of this community can escape the
make for municipal growth and prosperity.
Hence he will derive considerable profit a:
well as enlightenment from the appended edi
torial which is submitted in the hope that it will
make all of us think more deeply on the problem
in which all of us are interested.
Says the editorial of the Kansas City Star:
This article is on subject that concerns the
prosperity of every business man in Kansas City
1t concerns the prosperity of Kansas City as a
whole. 1t is on differentals.
What are differentials?
Advantages that one business has over the
majority of it's competitors. Better freight rates
may be differential Better access to terminals
may be. Efficient labor cheap fuel, good man
agement, a dozen things enter into the matter.
Carnegie got rich because he created differ
entails in efficient organizations that gave him
an advantage over his competitors. Differentials
are what every business man is striving for. The
history of successful business is the pursuit of
differentals.
In the last decade of the last century and the
first of the present. big capital was sought as the
chief of differentials. The United States Steel
Corporation, with its enormous capital, is the
monument of this effort. Then came the era of
scientific management. The progressive bust
ness found it's dfferentias and its success in
stopping leaks and increasing internal efficiency.
Another discovery in this field has been made
in the last few years. 1t has been learned that
there are possible business differentials in MAX
ing the city a more efficient place in which to
produce goods.
The fact that certain advantages went with
a city has been recognized unconsciously for a
long, long time. Why does factory find it more
profitable to locate in Kansas City than in Tonga
noxie? Because Kansas City supplies it certain
differentials that it cannot find in TonganoXie.
But it has been assumed that these city diff
ferentials were fixed and Interchangeable. Labor
suppv railroads, coal-these We're taken for
granted The recent discovery is the recognition
that there are any number of differentials that
may be increased by intelligent community
action So today cities are beginning definitely
to bid against each other for population and bust
ness. They are doing this by deliberately Great
ing es--differentias-tha their rivals
do not have.
The costs of doing business are affected by
conditions in the city much more than men used
to suppose Take the ordinary accounting list ::
Labor material, transportation, carriage, light,
heat, power, rent, taxes, insurance, interest de-
probation, selling expense.
Consider to what an extent the city is an ele-
ment in these costs. The labor supply is much
more efficient in cities where families can find
comfortable homes at moderate cost, where there
is good transportation good schools and whole
some amusement facilities. Carriage costs depend
on the condition of pavements and on we'll con-
ceived traffic ways as well as intelligent plan