Capital journal., April 08, 1925, Image 3

WEDNESDAY, APRIL 8, 1925
. A 640s000
Oeeini Mil for Salem
For twenty years Salem has been waiting to read a headline like the above.
Many of the pioneers who brought the Willamette valley to the attention
of the world as a flax producing center have passed on but the actual
establishment of linen mills here which in the next ten years will employ
thousands of people, will stand as an everlasting monument to their vision
energy and courage in developing the flax growing industry which will
furnish the raw material for these mills. They have done their part and it
remains for those of us who will enjoy the fruits of their labor to now
do our part.
What Industries Mean
We have all said: "What Salem needs is industries. How can we interest
capital in the development of our resources?" Salem has made a good start
along that line and everyone has witnessed the substantial growth in popu
lation nd building during the past five years. This can be credited wholly
to new industries that have located here and to the enlargement of old
ones..
The establishment of a linen mill here opens an entirely new era of
growth for Western Oregon. Linen is a product which has a worlc-wide
market. The raising of the raw material is confined to restricted areas.
The Willamette valley seems to be one of the world's most favored loca
tions for raising flax. This means that with the actual establishment of
linen manufacturing in Salem we will gradually witness "the location of
additional mills in this district and it is entirely safe to predict that
within ten years the number of laborers employed in this industry will
aggregate thousands.
Successful Men Behind Project
The men who wish to build a linen mill in Salem are practical linen
manufacturers and have been operating mills in Canada at a very fine
profit for many years. Their raw material is shipped into Canada from
different parts of the world. One of their largest markets is the United
States. To sell their goods here, however, they must pay a duty of some 30
percent which is imposed by our government to protect United States
industries. As'it has been demonstrated that the finest quality of flax
can be grown in the Willamette valley, these gentlemen wish to establish
the first mill at the most central source of supply of raw material and
escape the duty which is levied against Canadian linen. .
' Mill Proposition Stands Inspection
' Mr. Sanson, who is head of the Canadian mills is ready to invest $62,")00
in the Salem plant He must raise the balance of the money from local
investors. It is his desire that as large a number of stockholders as pos
sible interest themselves in this undertaking in order that the greatest
amount of public sentiment may be created in favor of the industry,
thereby insuring a proper supply of raw material. The Salem Chamber of
Commerce and a committee of Salem Chamber of Commerce and a com
mittee of Salem bankers have investigated every statement made by Mr.
Sanson and find that he is a highly respected and a successful and respons
ible business man in Toronto, Canada, and Loekport, New York, at both of
which points he has linen mills. Salem has raised hundreds of thousands of
dollars as donations for various purposes. It now has a chance to invest a
little money in a profitable enterprise which will return not only good
dividends on the stock but still -bigger dividends in increased business and
aork for every merchant and laboring person in this vicinity.
Salem to Raise $300,000
Of the $640,000 which the plant will cost, Salem will have to provide
about .$300000. The town of Albany has signified its willingness to raise
$50,000; Silverton, a like amount; Portland capital will come in for a large
block of stock. All of these outlying districts are willing that the first
plant be located in Salem because they realize that the development of this
industry in the Willamette valley means new industries and business for
almost every town in Western Oregon.
Linen Manufacturing Employs Much Labor
. . The proposed mill will employ from 240 to 260 persons at an average pay
' 'roll of about $4,000 per week. It will use the product of 5,000 acres of flax.
A normal crop of flax can be produced at a cost of $29.50 per acre which'
includes taxes and interest on land value, labor, and all overhead charges.
, The gross output of the mill to start with will be about $600,000 per annum.
The estimated profits based on past years of experience by Mr. Sanson in
the manufacture of linen goods will be about $118,500 per annum. This will
provide a 7 percent dividend on preferred stock, allow for depreciation and
reserve and pay a dividend on common shares. Local men will control the
board of directors. There are no commissions, selling cost or promotion
fees connected with the raising of the money for this mill. It is strictly an
undertaking by the highest type of business men and technical experts
who know the linen industiy and who have made a success of this business.
' It would be hard to choose a manufacturing plant for Salem which would
w be of greater value to the community and surrounding towns.
Benefits to Follow Linen Mill
The result of such a mill will be the establishment of scutching mills in
other cities throughout the valley. It will mean a steady and profitable
market for this great farm crop. Salem's most prominent business men
have identified themselves with this movement and are subscribing their
money. ' Without doubt this is the greatest single event preparatory to
future growth of this city that local residents have ever witnessed. Linen
mill will not stop at Salem but a' successful demonstration must be made
here to start with.
There will be amass meeting at the Grand opera house Friday night at
8 o'clock where prominent speakers will discuss every phase of this question.
It is the desire of the Chamber of Commerce, the gentlemen proposing to
build the Oregon linen mill and the heads of financial and business institu
tions of the city that all citizens turn out to this meeting. The Grand opera
house has been donated by the management and this advertisement is
donated by the newspapers and business men of Salem.
Unparalleled Opportunity Pressed to Us
This is the greatest community opportunity that we have ever faced and
the opera house should be packed to overflowing Friday night. If we fail
'to take advantage of the proposition that is offered us we should forever
jjiiore keep still about Salem needing industries. If Salem passes this up
jsoine other town will jump at the opportunity and become one of the linen
''manufacturing centers of the world.
Opportunity Waits for No Man!
This advertisement paid for by local business men who are interested in the development of Salem.
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