Evening star. [volume] (Washington, D.C.) 1854-1972, 1957-11-28
Maine Seeking
More Industry
AS Textiles Go

AUGUSTA, Me-. Nov. %
R.-The State of Maine, noted
for potatoes, Holsters and roll
ing fields. forest and seashore,
has come up with a new gim-
mick in the f1ercely competitive
business of attracting new in
dustry.
1t is about to start using its
highly rated State credit to in
sure mortgages on new factory
space-a sort of FILA plan on
an industrial scale.
It is designed to offer in
dustry modern manufacturing
space, custom tailored, without
an initial outlay by the indus
try and also, ideally, without
direct use of public funds.
To Gov. Edmond S. Muskie
and those who helped him it
was a matter of economic ne
cesSity.
While the Pine Tree State
was attracting thousands Of
overwhelmingly tourists to view
the scenery. fish and hunt, 1t
saw its big textile industry be-
gin to crumble and its unem-
ployment rate inch upward.
Three of it's biggest cotton tex
tile mills have closed in the
last three years.
Development Stepped Up
Maine has had an industrial
promotion division for a long
time. But its efforts produced
mostly small industries which
could do little to offset bigger
payroll losses.
In 1855, Gov. Muskie told the
Legislature industrial develop
ment had to be stepped up.
The Legislature responded
by reorganizing the develop
ment effort. placing more en-
phasis on industrial expansion.
At Gov. Muskie's behest and
with strong bipartisan sup
port. the 1857 Legislature went
further and created the mort
gage insurance plan. The
voters approved by ratifying a
needed constitutional amend
ment. and the Legislature re-
turned in special session in
October to set up the machin-
cry. 1t will start to function
in about three months.
The Maine industrial build
Ing authority will have $40 mill
lion of the States credit at its
disposal.
10 Per Cent Of Cost Raised
This is how the plan is
meant to work:
Communities interested in
obtaining new industry may
create a non-proflt develop
ment corporation. When the
corporation has an industrial
prospect it will determine the
building needs and raise 10 per
cent or more of the cost.
1t would apply through nor
NAL financial channels for a
loan covering the balance and
to the industrial building au-
thority for insurance on this
loan.
When the authority is salts
fed the proposal is sound. it
could write the insurance. The
legal limit is 80 per cent Of the
cost Of any project up to 81
million. and $40 million in the
aggregate at one time.
Premium Included
It's premium CHARGE Of l
per cent to 2 per cent of the
principal sum each year-would
be included with principal and
interest on the loan, taxes and
other expenses in the rental
the industrial tenant paid I'M
der its lease agreement.
In case of default, the au-
thority would take over the
periodic payments on the loan
until a new tenant is found
AS a last resort. it could buy
the mortgage and dispose of
the property. Otherwise. title
would remain in the local de-
velopment corporation.
The plan is intended to en-
courage the local corporation
to get tenant committed first,
then obtain the loan.
The law grants authority to
issue uD to $50 million in State
bonds if necessary to back the
Insurance.
Maine hopes to attrac
growth" industries primarily
--electronics, plastics, electri-
cal machinery and the other
industries rooted in modern
science.