Los Angeles herald., 1906-02-22
CASH TRADE PROMOTION
COMPANY is ORGANIZED
GIVES COUPONS TO MERCHANTS
IN CUSTOMERS BEHALF
These Are Redeemable for Stock.
Company Agrees to Invest Sixty
Per Cent of Income in Los Angeles
Real Estate

1t has remained for a company of
Los Angeles business and professional
men to originate an organization
known as the California Cash Trade
Promotion company, which promises
to be one of, the greatest institutions
for the families of moderate means
next to the savings banks.
This new concern has just been Or
ganized and is now having it's incor-
poration papers perfected at Sacra-
mentO.
For the present the headquarters
will be in room 30S, Lankershim build
ing.
In brief the plan of this concern
may be described as paying you divi-
dends on your living expenses, or in
other words paying you interest on
what you spend, as the banks now
pay you interest on what you save.
The company is engaged in MAX
ing contracts with merchants of this
city, but in time expects to extend
it's field of operations to nearby towns.
The company is capitalized for one
million dollars, the stock to be OF
the par value Of S. per share and nom
assessible.
On Cooperative Basis
In a measure the organization Is
cooperative in that each holder of
one share participates in all the ben
efits. This stock is not on the market
and cannot be bought for cash at any
price.
The company issues coupons to each
merchant who becomes a member Of
the association, and the customers Of
these merchants are entitled to one
coupon with each ten-cent purchase.
One thousand of these coupons enti-
tie the customer to one share of the
company's stock or SO in cash.
These coupons are sold to the mer
chant, and the articles of organiza-
tion bind the company to invest so
per cent of the income of the company
in Los Angeles real estate. AS soon
as the company can realize a profit
on any portion of its realty holdings
the property will be sold and the
principal reinvested, while the profits
thus accumulated are to be returned
10 the stockholders as dividends.
The other 40 per cent is to be used
for the legitimate expenses of the COM
pany, such as office rent advertising,
salaries and commissions to agents and
clerks.
Only Through Coupons
The fact that the stock of the COM
pany cannot be purchased excepting
through the coupons and that these
can only be secured from merchants
who become members OF the organiza
tion will have a strong tendency to
cause people to save their coupons.
The feature that is likely to appeal
to most Angelenos is that the COM
pany invests its profits in Los An
geles real estate, now considered
the best possible security, and that
it is possible for the family in mod
crate circumstances to save enough
in the daily purchases of necessities
to invest in real estate.
The president of the company is w.
r. Thomas, with the Golden State
Realty company at 421 South Spring
street, the secretary treasurer" is DR..
Joseph p. Mertes, with offices In
the Lankershim building, and NJ M.
Meyers, an attorney in the Henne
building, is the vice president All
the officers are bonded by the Amer
lean Bonding company.
"We have just begun business"
said Mr.. Thomas yesterday, IN speak
ing of the objects of the new COM
pany, "but we have gone far enough
to know that our plan for investing
the savings of the stockholders will
meet with success.
Merchants are taking hold of the
plan and we expect to be in full oper-
alton within thirty days. Our incor-
poration papers are now being per-
fected at Sacramento"