The Independent. [volume] (Honolulu, H.I.) 1895-1905, 1898-03-08
TO INCORPORATE.
W. W. Dimond & Co.'s Proposed
New Plan for Their Business.

The incorporation OF the we'll
established business is for double
purpose: First, to enable it's patrons
to become owners in the same and
sharers in it's profits; and, second, to
enable the business to afford the
convenience of credit system, and
at the same time do away with its
unfavorable features.
The promoters have reason to feel
assured that their plan OF action
will meet with the cooperation Of
their patrons, both in Honolulu and
throughout the Islands, and that
the success which has attended their
business during the past two years
will follow them in an increased
measure under the proposed change.
The aim of the promoters is to
have the stock we'll distributed in
small blocks, and, as far as possible,
placed among the patrons of the
business, so that every regular Gus
toner shall have the opportunity
OF becoming an owner in the bust
ness.
The capital stock in the corpor-
alton will be 100000 divided into
paid up shares Of $40 each, The
shares issued will equal only the
actual inventoried value Of the pro-
perty of the business, and verified
inventory of assets will be shown
subscribers before payment for stock
is required. The certificates OF stock
by their own terms can be exchanged
at any time with the Company for
goods to the amount of the par
value OF the shares and ten percent
additional, thus guaranteeing a pro-
fit to the holder, and the business of
the past is an assurance Of fair
profit on the investment, which will
be paytble in annual dividends on all
stock, to the owners thereof, at divi-
dend payment date.
The certificates themselves, and
the Bylaws as well, provide for the
transfer of stock and dividends
accruing thereon, without notice to
the officers of the Company, thus
ensuring easy and Informal transfer
of the stock; the transferee having
all the rights of the original holder
to use the stock as collateral and
secure dividends thereon.
The business will DO conducted on
cash basis or its equivalent, but
patrons who are stockholders are
provided the convenience of an open
account by depositing shares with
the Company for security amounting
to ninety percent Of the amount of
credit required, against which they
may draw, settle and draw again at
will, indefinitely.
All such accounts will have the
benefit of five percent discount now
allow On cash purchases, if settled
at the end of the current calendar
month. If not so paid the account
will be held open for three months
from the due date before advantage
will be taken Of the collateral secu-
rity. Houses in the same line of
business may have an open account
payable quarterly without being
secured by stock as collateral, by
unanimous consent of the Board of
Directors, for which the latter will
be responsible.
A cash business as above outlined
will eliminate losses from unpaid
accounts, and, also, the percentage
added under credit system to the
selling price of the goods to cover
such risk and loss. In other words,
the Company will be able to sell at
lower prices than at present and yet
make the same profit. 1t will there
fore be in position to meet the
keenest of competition, to the
mutual benefit of its stock holders
and patrons.
The business will continue to cater
to the consumer by offering COM
plete line of household furnishing
goods on the lines of the past, and