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Full text of "Locating the factory"

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TRAFFIC DEPARTMENT 

LEHIGH AND NEW ENGLAND RAILROAD CO. 
H BETHLEHEM, PA. 



JLt 



COPYRIGHT, Ip22 

LEHIGH AND NEW ENGLAND 

RAILROAD COMPANY 

BETHLEHEM 




"The first charge of industrial managers 
is proper plant location. This factor satis- 
factorily taken care of r is a step forward 
to success." 

VICTOR V. KELSEY, in Chemical and 
Metallurgical Engineering^ August 31, 
1921. 

"In the days when naive chambers of 
commerce beat brass bands about the 
country to get any industry whatever to 
locate in a city, many serious mistakes of 
production location economics were 
made." 

J. GEORGE FREDERICK, in Industrial 
Management, September i, 1921. 




LOCATING 
THE FACTORY 




LOCATING THE FACTORY 



MANY enterprises are handicapped 
by being poorly located, and many 
other enterprises are profiting by 
being well located. A poor location often 
places a manufacturer at a serious disad- 
vantage as regards competition, while a good 
location gives him a distinct advantage over 
his competitors. But many manufacturers 
do not realize or consider the great influence 
exerted by location on the success of an 
enterprise. 

The increasing costs of transportation, 
power, labor, and other factors, however, 
have focused the attention of an increasing 
number of business men on the importance of 
this problem. The proprietors of many well- 
established plants will promote their success 



AND IfEW ENGLAND RAILROAD CO. 



by re-locating their enterprise, and all those 
who are planning new enterprises should 
give this subject detailed study. 

The United States Steel Corporation found 
it profitable to build a whole new city, but 
the American Rolling Mill Company finds it 
profitable to remain where it is; Henry Ford 
advocates that factories move to rural towns, 
while William Miller Booth states that "The 
modern American city is the nucleus of suc- 
cessful manufacturing." These seem like 
conflicting opinions, but if we will examine 
the basic factors that should govern the 
locating of a factory, manufactory, or other 
enterprise, we will see that selection and 
decision can be made scientifically, accurately 
and safely. 

There is one universal yardstick that can 
be used by all industries to measure the worth 
any location: the yardstick of Ultimate 

tqfits. In the last analysis this should be the 

fading factor. Yet all too frequently a 
ufacturer is swayed by relatively unim- 

[6] 




LOCATING THE FACTORY 



portant considerations, considerations of the 
moment; such as, bonuses, free sites and tax 
exemptions, whose effect wear off and leave 
him stranded high and dry in a locality 
wholly uneconomical from a manufacturing 
and distributing point of view. / 

Take the experience of certain manufac- 
turers in Minneapolis, for example. In 1897 
Minneapolis "bought" 20 industries through 
free sites, bonuses and stock subscriptions. 
Twenty years later, only one of the original 
20 survived. Minneapolis is an excellent 
location for many industries, but evidently 
it is also a poor location for others. 

There are approximately 285 cities in the 
United States, each with a population of 
more than 25,000. Every one of these towns 
is probably a good location for one or more 
industries and the very best location for at 
least one. The sagacious manufacturer \yill 
uncover that one location which is best for him 
and locate THERE. 

For when his location is right 

[71 




LEHIGH AND NEW ENGLAND RAILROAD CO. 

conditions being equal) a manufacturer is in 
position to compete for the total available 
trade on equal terms, at least, with his 
competitors. But if his location is wrong 
(other conditions being equal) he is handi- 
capped to the precise extent that the location 
handicaps him. A wrong decision in this 
respect, therefore, becomes a serious matter, 
affecting profits and dividends; while a right 
decision is of lasting, cumulative,|importance 
and value. 




[*'. 




LOCATING 
THE FACTORY 



FACTORS THAT DETERMINE 
DIVIDENDS 



"The subject of locating industries through-out 
this broad country, probably on account of its 
ample area, has received less constructive attention 
than most other industrial problems." . . ."It may 
be stated that the most profitable location for a 
factory is where the cost of production plus the 
cost of distribution is at a minimum. It is evident, 
then, that the profits of any particular industry 
are directly related to the choice of the site." 

H. H. McCANNA, in Industrial Manage- 
ment, June i, 1921. 



THE activities of almost all business 
enterprises may be classified into 
four divisions: Financing, Account- 
ing, Manufacture, Distribution. 

Of these four, Financing and Accounting 
are influenced but little by the location of a 

[9] 



LEHIGH AND NEW ENGLAND RAILROAD CO. 



factory. To be sure, banking facilities and 
accounting facilities must be provided by the 
locality and by the design of the plant, but 
when we measure the value of a location by 
our gauge, Ultimate Profits, the significance of 
banking and accounting facilities as an 
influence that should determine where a 
factory should be situated, is almost negli- 
gible. In considering Financing from the 
viewpoint of raising Capital for the enterprise, 
J. Russell Smith, Ph. D., in his book, The 
Elements of Industrial Management, says, 

"Capital is scarcely worthy of discussion as a 
locating factor, because of its mobility. When the 
other factors combine to make a prospect of profit, 
there y granted politi:al stability, capital will go y 
whether it is :o build a huge mill and town in the 
woods of Maine for the manufacture of paper, to 
dig oil wells in the mosquito-ridden swamps on the 
Gulf of Mexico, or to aid in the search for precious 
metal in the frozen reaches of the upper Yukon. " 

The two phases of industrial activity that are 
affected most incisively by the location of the 




10 



LOCATING THE FACTORY 



factory, are Manufacture and Distribution. 
/Economies of production and distribution are 
usually dependent in large measure on the 
site selected. Thus the importance of having 
the factory correctly situated is emphasized, 
for production and marketing are the two major 
divisions of business activity that bear most 
directly on a manufacturer's profits. 

But the forces that make for low manu- 
facturing costs and the forces that make for 
low marketing costs are often not in harmony. 
For instance, power may be "dirt cheap," or 
raw materials plentiful, at a point so far from 
the markets for the article manufactured that 
its price at the markets would be prohibitive. 
And it is equally true that all the forces 
that promote low manufacturing costs may 
not work together; neither do the factors 
affecting distribution always pull in the same 
harness. Raw materials may be abundant 
at points where labor is wholly absent, and 
to which labor cannot be induced to migrate; 
freight rates may be low to points where the 

[ii] 




LEHIGH AND NEW ENGLAND RAILROAD CO. 



market is overcrowded, but high to markets 

practically free from intensive competition. 

, So it is evident that the selection of the 

best location for a factory cannot be based 

* -wholly on factors that affect either Marketing 

facilities or Manufacturing facilities alone. 

The effect of the different factors, or opposing 

>i/ forces, must be weighed, and that location 

selected which combines the greatest number of 

favorable factors in the greatest extent. 

In his article "Choosing the New Plant 
Location"* H. H. McCanna of the E. I. 
duPont de Nemours Company says, 

"There are certain fundamental factors which 
enter into the solution of every plant site. It is the 
weighing of these factors, and establishing the 
relative importance of each that assists most in 
drawing scientific conclusions and deciding upon 
the proper location of the plant. The main factors 
may be classified as follows: 

J "PRIMARY FACTORS: 

A Markets foreign, domestic, national and local. 
B Raw Materials principal and secondary. 



ndustrial Management, June i, 1921. 




[12] 



LOCATING THE FACTORY 



C Transportation rail, water and motror truck. 
D Labor male, female; skilled, unskilled. 
E Power coal, fuel oil, electric. 

"SECONDARY FACTORS: 

A Climatic requirements, if any. 

B Public utilities required. 

C Dependency on municipal environment. 

D Dependency on municipal laws or ordinances. 

E Advertising value of plant. 

F Financial aids capital, bonus, free site. t 

G Disposal of plant wastes. 

"In outlining the above factors it will be seen that 
the primary ones are those which usually enter 
most prominently into the production and distri- 
bution costs of the product, which as stated previ- 
ously, are kept at a minimum by a properly selected 
site. 

"These are the items then that should receive 
careful and thorough study and should be weighed 
in relation to each other for any particular industry. 
It is understood, of course, that in various indus- 
tries, the importance of these factors will differ and 
in some industries some of the secondary factors 
will assume major importance. 
"But the more consideration that is given toward 
establishing the relative value of these factors, 
the more likely it is that the proper site will be chosen.'' 






LOCATING 
THE FACTORY 




THE PRIMARY FACTORS 



"All other things being equal, an industry naturally 
locates nlear the market which it expects to serve; 
for, commonly, the founding of an industry comes 
either because of a demand from a market or from 
an effort to create such a demand." 

DEXTER S. KIMBALL, M. E. 

A MARKETS. Generally speaking, the 
market that a manufacturer wants to reach, 
is the pivotal consideration that should 
I govern his choice of plant location. For 
unless he can sell his goods, he can realize no 
profits/Normally, it would be unwise for the 
manufacturer whose goods are used by the 
sheep-herder on the slopes of the Rockies to 
locate in the heart of the New England States; 
and it would be equally difficult to reach the 
Southern cotton fields or the shoe centers of 



14. 



LOCATING THE FACTORY 



Lynn or Brockton, Massachusetts, from a 
factory on the Pacific coast, if competitors' 
plants were located closer to these markets. 
If the product is one that appeals to the 
whole rank and file of the population of the 
United States and the manufacturer does 
not, or cannot, cover the entire country, 
it may be advisable for him to locate in or 
near the heart of one of our most thickly 
settled districts. But if the product appeals 
to a well defined class of people, he should 
consider where the largest number of this 
class are to be found. 

/From a geographical standpoint, many of 
our larger markets are clearly defined, even 
though political boundaries are not recog- 
nized in the world of production. For example, 
"The Industrial United States includes the 
section north of the Ohio River and the 
Mason and Dixon Line, and efast of the Miss- 
ississippi River, with smaller sections like the 
Birmingham district in Alabama, the Pueblo 
district in Colorado, and Kansas City in Kan- 



LEHIGIJ AND NEW ENGLAND RAILROAD CO. 

sas and Missouri/'* A manufacturer whose 

.product is used by other manufacturers: such 

' ^ as, lathes, machine tools, or heavy machinery, 

should probably erect his plant at a point 

[ x convenient to one or more of these great 

fhanufa cturing centers. 

Conditions which exist in the business 
world today lay stress on the side of distri- 
bution; the producer must go to his market 
where formerly the market came to him. 
Usually, then, a factory should be located at 
; a point from which its product can be 
shipped with equal promptness and cheap- 
ness to each of its principal sales centers. 



B -RAW MATERIALS. Second in importance 
to the market is the location of raw materials. 
^If a market is accessible and all other things 
are equal, a plant, to secure its greatest advan- 
tages, will always find it desirable to locate 
Jiear its raw materials. Insofar as the cost of 

hn C. Duncan, M. S., Ph. D., in The Principles of Industrial 

[16! 




LOCATING THE FACTORY 



raw materials is concerned, that location will 
be the best that will make the total resultant 
freight charges of all raw materials the, 



minimum. 



/This is why paper mills are found near the 
forests, and packing houses near the stock- 
raising regions. The best location for a blast 
furnace (given a market) is a site where ore, 
coke and limestone may most conveniently^ 
be brought together./In the manufacturie df^ 
paving brick, it has been estimated that the\ 
relative weights of clay, finished product, and 
coal are approximately 40, 30, and 3. In a 
case of this sort, it is evident that proximity 
to market and to clay beds is of utmqst / 
importance. 

The raw materials used by some manu- 
facturing plants are composed largely, or 
entirely, of the finished products of other - 
plants. This is true, for instance, in the 
production of fine electrical specialties. But 
the same principles govern the correct loca- 
tion of these industries, as govern the correct 



,-Tr-r " .,.,,,.,. ' 

LJ[J[ UB Wl m ' IH) IIU Hl1 





LEHIGH AND NEW ENGLAND RAILROAD CO. 

location of other industries; the manufacturer 
should locate his factory as conveniently as 
practical, to the source of his raw materials. 
The location of the actual materials used 
by a manufacturer as his raw materials is 
always an important consideration, but the 
fact must not be lost sight of that the location 
selected will, in many cases, be a compromise 
between the availability of raw materials and 
the accessibility of markets. A correct compro- 
mise, in these respects, usually results when 
the factor of Transportation is considered. 



C TRANSPORTATION. Transportation usu- 
ally limits the size of a manufacturer's market 
more than any other one factor/ For except in 
the case of patented articles, such as novel- 
ties which cannot be duplicated, and branded 
articles so widely advertised as to be really 
specialties, transportation charges wall-in the 
area that a manufacturer can profitably reach. 
These transportation charges are the row- 
freight charges on both raw materials 

[i8J 




LOCATING THE FACTORY 



and finished product. But the crux of the 
problem of transportation usually lies in the 
relative costs of transportation for raw 
materials and for finished product; i. e., the x 
ratio between the freight rates on the materials 
that go into_the product and the freight 
rates on the product to the points where it is 
marketed. The ideal location, in this respect, 
is where these combined charges will be lowest. 
7 As between waterways and railways, the> 
former have the advantage of cheapness, 
whereas the latter have the advantage of 
greater speed. Frequently the part-rail and 
part-water route is the most economical. 
In reaching the Pacific coast, for example, a 
manufacturer situated in the East may ship 
by rail to an Atlantic seaport, thence through 
the Panama Canal to the Pacific port, and 
frequently undersell his Competitors located 
in Illinois or Wisconsin who are forced to use_ 
an all-rail route. 

/A manufacturer who is situated so that he 
can make or receive shipments over more than 

[19] 




LEHIGH AND NEW ENGLAND RAILROAD CO. 



one railroad, is more likely to receive better 
service and enjoy lower freight rates, than the 
manufacturer so situated that he is at the 
mercy of one railroad. Thus, a manufacturer 
located along a belt-line railroad which taps 
the trunk-line railroads entering a large city, 
is in position to use any one of these trunk- 
lines for any of his shipments; moreover 
transfer charges will be absorbed in the rates 
quoted him by all the trunk-line railroads- 

The growth of many of the "Industrial 
Districts adjacent to belt-line or connecting- 
line railroads in cities like Chicago, Kansas 
City, Minneapolis and St, Paul, is due 
largely to the superior transportation facil- 
ities afforded a manufacturer located along 
side of such a belt-line railroad. 

The advantageous effect of competition 
between railroads on the rates a manufac- 
and the service he enjoys, is well 
tkd by the example given by Edwin J. 
^ Dv,Jn his book Rat/way Traffic* 



Alexander Hamilton Institute. 




[20 



7 A PTT>P V 



. . . "Boston is served by both the Boston and 
Albany and the Boston and Maine Railroads. The 
connection between the two roads is formed by the 
Grand Junction Branch of the Boston and Albany, 
which meets the Boston and Maine at Somerville. 
The Grand Junction branch terminates at East 
Boston, where, at the railroad docks, lie many of 
Boston's oversea lines. 

"Suppose a carload of export freight is shipped 
from Nashua, a point reached only by the Boston 
and Maine. To put this freight on shipboard will 
cost the Boston rate plus a switching charge on the 
Grand Junction branch of the Boston and Albany, 
21-2 cents per hundred pounds, minimum $5 per 
car. The $5 per car is what the Boston and Albany 
charges for switching the car to its docks; the 
Boston rate is the Boston and Maine's rightful 
compensation for hauling the car from Nashua. 
Only the Boston and Maine reaches Nashua, and 
this railroad need make no sacrifice in the matter of 
absorption of switching charges, in order to get 
the car to haul. 

"If the export car originated at Buffalo, the New 
York Central and the Boston and Albany would 
of course, haul it to the Boston and Albany docks 
for the flat Boston rate. The car could be moved 
from Buffalo via the West Shore and Boston and 



[21] 





LEHIGH AND NEW ENGLAND RAILROAD CO. 



Maine. But these roads could manifestly charge no 
more than the Boston rate from Buffalo to the 
Boston and Albany docks, for the Boston and 
Albany and the New York Central stand ready to 
haul the car there at this flat rate. Therefore, the 
Boston and Maine must absorb into the Buffalo- 
Boston rate the switching charge which the Boston 
and Albany sees fit to make for hauling the car 
to the docks from the junction at East Somerville. 
Now the Boston and Albany does not care to en- 
courage the route via the Boston and Maine of 
traffic which it can itself carry, so on the competi- 
tive traffic its charges for switching are 41-2 cents 
per hundred pounds, minimum $9 per car. The 
Boston and Maine stands willing to absorb this 
charge on export traffic. 

"That is, switching charges are absorbed, not 
added to the rate, in the case of competitive 
traffic, and they are not absorbed in the case of 
local or non-competitive traffic." 

In addition, it must be remembered that the 
lanufacturer located at Buffalo, in the fore-, 

ing instance, would have open to him a 
loice of more than one gateway for his 
traffic. He might ship via the Great 



22 




LOCATING THE FACTORY 



Lakes and the St. Lawrence River, via 
Boston, New York, Philadelphia or Balti- 
more. Thus he is benefited by competition on 
the seas as well as on land. 

It is obvious that the factor of transpor- 
tation costs has a big bearing on the Ultimate 
Profits a manufacturer will enjoy, and that 
there are many phases of this complicated 
problem which must be considered. Although 
the preceding illustration deals with ocean- 
bound shipments, the same principle applies 
to domestic shipments, and affects the small 
shipper just as much as the large shipper. No 
manufacturer should decide upon a location 
for his factory until he has very carefully 
weighed ALL the elements of transportation 
that will affect him. And since the subject 
of rates is an intricate orie, most manufac- 
turers will profit by the counsel that only an 
expert in these matters can give. / 



D LABOR No site for a .factoj; 
desirable one unless a sufficient supj 

[23] 




LEHIGH AND NEW ENGLAND RAILROAD CO. 



kind of labor needed by the industry is avail- 
able in the neighborhood or can be attracted 
to the locality; otherwise there is but little 
assurance of success. Perhaps the labor 
factor has caused more factories to re-locate 
than any other one consideration. 

But in those industries where the bulk of 
the labor is unskilled, or semi-skilled, as in 
smelting plants and cement plants, the 
factors of Market, Raw Materials and Trans- 
portation will predominate, for the working 
population can be moved to the plant 
location from elsewhere. There are industries 
in which the worker will seek the enterprise, 
but there are also many industries where the 
enterprise must seek the worker. 

When the latter condition obtains, Labor 
becomes an important factor in deciding 
where a plant should be erected. It is usually 
exceedingly difficult to induce skilled labor 
to migrate. It takes time to build up an 
industrial community of skilled workers and, 
is a rule, skilled workers do not wish to leave 




LOCATING THE FACTORY 



their environment without a considerable 
increase in wages, or other compensations. On 
the other hand, labor conditions are so 
unsatisfactory and troublesome in many 
large labor centers that manufacturers have 
moved from these points for this cause alone. 
A consideration of the labor factor includes 
a study of the relative merits of city, country 
and suburban locations, for a given industry. 
The comparative advantages of these three 
is admirably summed-up by Hugo Dimner in 
Factory Organization and Administration , as 

follows : 

'"As between city and country sites, the city 
presents the most flexible labor market. Skilled 
labor is most easily obtained on short notice in a 
city. In the country labor is cheaper, and the work- 
men are likely to be more contented. They are 
likely to marry and have homes in pleasant 
surroundings, and the inducements for the wasting 
of their earnings are not so great as in a city. At the 
same time, in dull times the country factory is 
looked to as bound to exercise a paternal interest \ 
in the employees and town, a responsibility from i 
which the city factory is relieved. 




LEHIGH AND NEW ENGLAND RAILROAD CO. 



"A suburban site, convenient to a belt line 
railway such as exists in most of the larger trade 
centers, presents many advantages of both city and 
country. It permits the purchase of sufficient 
ground for a factory site to allow for future expan- 
sion. It has the labor market of the city to draw 
from, and offers the workmen who choose to live 
close at hand the opportunity of pleasant home 
sites." 

One of the factors that induced the recent 
location in Huntington, West Virginia, of a 
large new Thermos bottle plant was the 
unbalanced labor situation there, between 
rriale and female labor. There has been an 
abundance of labor for men at this point 
in the railway car shops, etc. but the women 
of the town who wanted to work have had but 
little opportunity. This phase of the labor 
factor is an important one for many manu- 
facturers to consider, both in regard to the 
employment of women as a class, or other 
types of labor as a class. 

Just as is the case concerning Markets, Raw 
Materials and Transportation, the nature of 

[26! 




LOCATING THE FACTORY 



the industry determines the degree of influence 
Labor should exert on site selection. But it is 
at all times essential that sufficient depend- 
able labor be at hand to completely satisfy 
the requirements of the enterprise. 



E POWER. Before the days of steam and 
electricity practically all industries requiring 
power necessarily sought water-power when 
choosing a manufacturing site. And even 
today, water-power is usually the cheapest 
source of energy that a plant of any kind can 
have. In some industries where raw materials 
and water-power are found in close proximity, 
and the transportation costs on the raw 
materials are greater than these costs for the 
finished product, factories using these raw 
materials should be built beside a waterfall in 
the region where the raw materials are found. 
But the use of coal and electricity has 
greatly modified the importance of water- 
power as a source of energy. Not only are the 
waterfalls frequently too small to allow for 




LEHIGH AND NEW ENGLAND RAILROAD CO. 

growth, but their location is far from the 
markets for the product. New England got 
its start in manufacturing because of its 
abundant water-power, but at the present 
time large parts of the manufacturing districts 
of New England have outgrown their puny 
waterfalls and are dependent on coal imported 
from Pennsylvania and West Virginia. 

For most industries, the fuel bill is a 
relatively small item in the costs of manufac- 
ture, which superiority of efficiency in labor 
or manufacturing methods easily offsets. 
Of course, inexpensive power, whether coal, 
electricity, fuel oil or water-power, is always 
a factor to be carefully considered in selecting 
a factory site. But this factor, like each of the 
preceding factors, must always be considered 
in relation to the other factors which may 
modify its importance. 

Seldom, indeed, does it happen that the 
existance of any one consideration should 
determine an industrial location. The manu- 
facturies that permanently flourish are usually 



LOCATING THE FACTORY 



those that are located in a district where 
they can count the greatest number of desirable 
primary factors. 

The Waltham watch, however, is made at 
Waltham, Massachusetts, primarily because 
this location is away from dust and soot. This 
is an instance where a Secondary Factor is of 
primary importance. Not infrequently, for ^ 
given industry, other factors enter in, which 
modify or limit a manufacturer's choice of 
sites. 





1 LOCATING 
THE FACTORY 




THE SECONDARY FACTORS 



"I knew a wise man who had it for a by- word when 
he saw men hasten to a conclusion: 'Stay a little, 
that we may make an end the sooner/ " BACON. 

IN some few industries, the effect of 
climate is highly important, but in most 
industries, although the cost of heating a 
factory in a cold climate may be of some 
importance, the climate as a locating influ- 
ence is practically negligible. In the testile 
industries, for example, climate formerly 
had considerable influence, but now such 
factories are kept at the proper degrees of 
temperature and humidity by artificial means. 
Of course, a healthful, invigorating climate is 
conducive to increased production, and for 

[30! 



LOCATING THE FACTORY 



this reason a site where such a climate is 
found may be desirable. 

The public utilities supplied by a district, 
the municipal* environment and the laws of 
the state and ordinances of the town or city, 
should always be looked into carefully when 
choosing a factory location. It is important 
that the means of transportation for workers 
to and from the plant be considered, for this 
and other environments of the factory will 
have bearing on the contentment of labor. 

One of the chief objections to factory sites 
in rural districts is the difficulty encountered 
in according skilled workers, accustomed to 
the conveniences of city life, similar conven- 
iences in the country. In any location, the 
spirit of the inhabitants, the local laws, and 
the attitude of the people toward the enter- 
prise should be investigated. "The temper of 
a city is told by the spirit of its people. No 
prospective manufacturer wants to try to do 
business in a town which is itself antagonistic 
or indifferent." Of course, the laws relating to 



LEHIGH AND NEW EN&LAND RAILROAD CO. 

buildings, construction, sewage, smoke, noise, 
etc., and the water supply, fire protection, 
sewage facilities and similar items should not 
be overlooked. 

Usually the advertising value of a plant 
should not be considered at all in choosing a 
location. This is a field wholly removed from 
the usual functions that devolve upon the 
factory itself and except in very unusual cases, 
a consideration of the advertising value of a 
site, may lead to false conclusions. The 
advertising value of almost any site is 
passive; it is not a BIG constructive force. 
Advertising funds should be used for strictly 
advertising purposes; they should not be used 
to purchase property. 

The dangers arising from being unduly 
influenced by offers of financial aids has 
already been pointed out. This does not imply, 
of course, that such offers are at all times 
and under all conditions to be looked at 
gkance. Frequently such offers are made in 
faith and if accepted will prove profit- 




LOCATING THE FACTORY 



able to the manufacturer and to the locality 
offering these inducements. But they must 
not be considered as FIRST considerations; 
other more important considerations take pre- 
cedence over them. This is shown by Charles 
W. MacMullen, president, Clark, MacMullen 
& Riley, Inc., Consulting Engineers, when he 



says, 



"An encouraging feature of present day industrial 
development is the increased care exercised by the 
manufacturer when selecting a location for his 
new mill or factory. Too often in pre-war times he 
was unduly influenced by an invitation from some 
small industrial center to locate there, on the 
assurance that his plant would be free of tax 
burden for a specified number of years. As an added 
inducement the cost of the land in such cases was 
apt to be very low. 

"Swayed by these and other minor consider- 
ations, the manufacturer would buy a site and 
build in this vicinity to find, too late, that his 
factory, finished and in operation, was not properly 
placed with reference to raw materials, low power 
rates, good water supply, suitable labor conditions 
and within reasonable distance from a market." 



*From The Textile World, July 23, 1921. 



(33) 




LEHIGH AND NEW ENGLAND RAILROAD CO. 



/ Facilities for the disposal of wastes is an 
important factor in many manufacturing 
processes. At some locations these must be 
taken care of by the individual manufacturer, 
in others sewage systems are available, in 
still others, refuse and waste may be fed into 
nearby streams. State laws frequently have 
bearing on this matter and should be con- 
sulted before decision is reached. 

There are many other considerations that 
should be investigated and weighed in 
choosing the site itself;/such as the nature of 
the land, ifs contour and soil, the shape of the 
plot and similar elements. But these are de- 
tails that follow the more important factors 
dealing with location in general. The important 
thing is to select the right location or locality, 
the site itself should then be carefully chosen. 

From this condensed survey of the principal 
factors that should ordinarily determine the 
best location for a factory or manufacturing 
plant, it is evident that the manufacturer 
about to locate his industry, or the manu- 



34 . 




LOCATING THE FACTORY 



facturer who is considering re-locating his 
disadvantageous^ situated plant, must care- 
fully contrast, compare and consider many 
different factors if he is to find the one loca- 
tion that is the very best one for him. His 
investigation of all suggested sites must be 
drastically thorough and his final decision 
must rest on the rock-ribbed foundation of 
Fact, Truth and Correct Principles. 

He should not rely wholly on the reports of 
people or organizations interested in boosting 
some particular locality, for their reports must 
almost necessarily be colored by their enthu- 
siasm. The Census reports and some of the 
Departmental reports of the Federal Govern- 
ment will disclose much valuable information, 
and some of the bulletins issued by the several 
States may be of assistance. In addition, the 
counsel of someone thoroughly experienced in 
the problem of scientific plant and factory 
location should be called upon. In this 
respect the service offered by the Lehigh and 
New England Railroad may be very valuable. 

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LOCATING 
THE FACTORY 




A STRATEGETIC RAILROAD 



"The development of any manufacturing business 
today and the plans for growth in any industry 
hinge on this one idea specialization." 

E. H. AHARA, General Superintendent, 
DODGE MANUFACTURING COMPANY. 

IN effect, the Lehigh and New England 
Railroad is a large belt-line or connecting 
railroad which crosses and connects with 
all the principal trunk-line railways in the 
eastern part of the United States. It provides 
the same advantages to industries located 
along its lines as the belt-lines around cities 
provide for the industries situated along their 
tracks. The chief difference is that the Lehigh 
and New England Railroad serves a larger 
territory. 

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LOCATING THE FACTORY 



It extends from Nesquehoning in Carbon 
County, Pennsylvania, to Campbell Hall in 
Orange County, New York, and embraces a 
district rich in manufacture, agriculture and 
natural resources. It forms a gateway to the 
rich New England factory district, and gives 
ready access to all the adjacent Atlantic 
seaports for ocean-bound or canal-bound 
traffic. It taps the anthracite coal fields, the 
Portland cement district of the Eastern 
Pennsylvania, and traverses a section of the 
country rich in slate, limestone and many 
other raw materials of great importance to 
many different industries. 

It should be remembered that "a big 
majority of our industries today are included 
in an area bounded by lines connecting 
Portland, Maine, Milwaukee, Wisconsin, 
St. Louis, Missouri and Baltimore, Maryland. 
This area comprises about one-twelfth of the 
total area of the United States and about ) 
one-half of its population." And although 
location along the lines of the Lehigh and New 

[371 



LEHIGH AND NEW ENGLAND RAILROAD CO. 

England Railroad is not the best for every 
form of industry, it is an excellent location 
for many different enterprises. 

The Lehigh and New England Railroad 
knows that its prosperity depends upon the 
prosperity of the industries it serves. Conse- 
quently, its officers are interested in having 
only those industries locate along its lines 
who will be best located when located there. 
To this end this railroad places at the 
disposal of the manufacturer who wishes to 
thoroughly investigate all localities that may 
prove desirable, its full facilities for the anal- 
ysis of factory and plant locations. 

Data and records of great value, many of 
which the average manufacturer would not 
be in position to consult, are accessible to the 
Lehigh and New England Railroad. Its 
research work and reports are made in the 
interest of the manufacturer, impartially 
and comprehensively, in the same way the 
manufacturer himself, or his engineering 
specialist, would make them. This contact 

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LOCATING THE FACTORY 



with factors and figures in which the manu- 
facturer considering factory or plant location 
or re-location is intimately concerned, is 
offered to those interested without cost or 
obligation. 

A resume of the scope, importance and 
value of this service will be furnished on 
request. 

Traffic Department 

LEHIGH AND NEW ENGLAND 

RAILROAD COMPANY 

GENERAL OFFICES 

BETHLEHEM, PENNSYLVANIA 




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