Fanning a Flame

When Kansas Millionaire Bill Graham tried to spark a brush fire for capitalism in socialist-minded India last summer (TIME, Aug. 12), the government poured on cold water. Finance Minister T. T. Krishnamachari and others refused to see him. But last week Graham's dream of financing capital-starved entrepreneurs ("The small guy who's on the ball") and making a profit to boot had become too important to ignore. When Graham landed in India with funds raised from free-enterprising Americans, Pandit Jawaharlal Nehru himself sat down with the tireless enterpriser for a half-hour's talk and wished him all success. Krishnamachari not only approved, but last week eased import restrictions on needed machinery for Graham projects and promised that all profits could be taken out of India.

The reason for the turnabout was plain. India is now desperate for foreign capital and sees in Graham a chance to show good will toward investors. On Graham's part, there had been nothing but good will and hard work since last summer. Fervently talking up his dream back in the U.S., Graham collected $250,000 from fascinated' investors ranging all the way from the Rockefellers' International Basic Economy Corp. ($25,000) to an oil worker who offered $5,000 in $100 monthly installments and formed Private Enterprises Inc.

Money-Sucking Sands. On his way to India, Graham not only picked up two more $100 checks from pilots in midair, but planted some free-enterprise seeds along the way. In Athens he left $10,000 with a committee of bankers for local loans, another $6,200 in Istanbul and $10,000 in Beirut. Already approved are loans to a Greek furniture company, a Turkish spring-clip factory, a Lebanese cement contracting business. He landed in India with $220,000 left in hand and a lot more enterprise in mind.

In two weeks he trebled his capital. Indian Banker G. D. Birla, whom Graham met in San Francisco at the International Industrial Development Conference (TIME, Oct. 28), made good on a promise to match the capital in rupees. Another Indian millionaire promised an additional $200,000 in rupees; two textile magnates raised $25,000 more. Indian Industrialist J. R. D. Tata, owner of 25-company Tata enterprises (TIME, Sept. 30), is expected to come in soon.

But to put all the money to work without throwing it away was another story. As Banker Birla put it: "Any fool can make money in the U.S., but to make money in India is an art. India is like the sands of the desert, where money can disappear like water." Because only "some success stories" can really get his crusade moving, Graham now believes that he must focus on bigger deals first before he can make the thousands of little ones he dreams of. In Bombay he put up $20,000 to match $20,000 in rupees" from Textile-man P. N. Kejriwal, who wants to build a nylon hosiery plant.

Change of Plan. To beef up the original plan of sharing capitalization and profits fifty-fifty with small borrowers, Graham has switched to 50% from an entrepreneur, 25% from a wealthy Indian (both in rupees) and 25% in dollars from Private Enterprises Inc. On the committee of Indian bankers and businessmen who screen the loans, this has the effect of more help to enterprises in which they have a chief interest. But bigger deals will persuade more big businessmen to put up more matching rupees, get them in on the crusade.

Whatever the outcome, Bill Graham plans to haunt India next year to make sure that enterprises are started and properly run. Said he fervently: "We're going to light a fire under these Indians. Whatever happens, at least we'll find out whether or not they really want our help."

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