The watchman and southron. [volume] (Sumter, S.C.) 1881-1930, 1911-05-10

ner asked to be excused from com
menting on the matter further, but
said he might have som 4thing to
say upon his return.
Max Hart and Marcus Marx of the
firm said in Chicago yesterday that
they had no staten mant to make with
respect to the incorporation Of their
business for the reason that the entire
matter was in the hands of their
brokers.
/ At the office Of A. CT. Becker & Co.,
THE incorporation of the busin 9ss
has been undertaken for the pur-
pose Of perpetuating and solidifying
the organization. The partners real
ize that the interests of many others
than themselves should be conserved.
Thousands of retail clothicrs have ac-
quired a steady patronage and built
up valuable good will on the r4pu-
tation of Hart, Schaffner & Marx
clothing, and it is unjust to subject
their interests to the vicissitudes of
the partnership form of organization.
M oreover, this incorporation, while it
will in no way effect any change of
management, will nevertheless pro-
vide way to hold and reward those
employees who have developed with
the business and give to them an op-
poTtunity to acquire substantial
financial interest in the enterprise"
1t is understood that the provisions
for the employees will be made
through common stock. which is TAX
en- over by the firm. there being no
common stock for sale.
OF the s5,OOO,OOO preferred stock.
Sl,OOO,OOO is retained by the firm.
The bylaws Of the proposed corpor-
alton provide that no dividend Of the
common stock shall be paid until
100000 surplus has been accumulat-
ed, and no dividend Of more than 4
per cent shall be paid until a sur
plus Of $1,OOO,0OO is provided
The preferred stock consists of 7
| per cent cumulative. with dividends
payable quarterly. The stock will be
listed on both the New York and the
Chicago stock exchanges and will be
redeemable at $12O at the company's
of "a
understood from outside sources that
a statement Of the earnings for the
last five years shows dividends easily
earned on both preferred and COM
mon stock as we'll as a substantial
surplus. The preferred stock repre-
sent5 the machinery, stock and ac-
counts receivable. The common stock
represents the good viii Of the bust
ness Tho Hart, Schafsner & lark
building IS leased 20 r.e proposed
corporation, ana - IN 10 way It part
or IL owing To ,ne pr4Anatur1 pub
hclty given to the matter no state
ment has been prepared, but it is
| expected one will be issued with a few
| days. The incorporation has been
| contemplated for the past two months.
| it is said.
Because OF the nature OF thu busi-
ness, it was thought by those interest
| ed that the New York laws were pre-
| ferable to the Illinois laws FIR incor-
poration purposes
1T was asserted in one quarter that
provisions are to be made for the
| reservation Of certain part Of the
stock for some Of the EMPLOYEES of
the firm, but a confirmation Of this
was lacking, for the reason, it was
| said, that Joseph Schaffner who is in
charge of this plan, it out Of the city.
In confirming the report Of the
proposed corporation, Robert Schaff-
| ner, of A. G.. Becker & Co., Of Chi
cago, said yesterday that the papers
J for the incorporation Of the business
in New York will be filed in a few
days
In the trade the opinion prevailed
yesterday that the action Of the firm
In Incorporating it's business was for
the purpose Of perpetuating the we'll
known firm name and affording to
those who have either directly or in
directly contributed to the success Of
the business. which has become part
or 1t, something which could not be
attained under a copartnership. A
tew venture the opinion that the firm
contemplated inaugurating a profit
Sharlng plan for it's employees, but
| the cOncpnSnS opipio,, uoC 10 tho