New-York tribune., 1922-08-03
Cimbel Bros.
TOSell Shares
To the Public
Department Stores Are
Negotiating With Bankers
for Plan That Will Leave
Present Owners i'm Control
To Form New Corporation
REIMBURSEMENT to Unity Two
Companies for Purpose
of Promoting Efficiency

A new corporation rs IN process OF
formation by Gimbel Brothers % take
over and operate as unit the two
companies which now operate the
three department stores doing busi-
ness under that name In New York,
Philadelphia and Milwaukee. The prof.
ect contemplates public participation
for the FIRST time In an enterprise that
under the ownership and management
OF Gimbel Brothers has reached posi-
tion among the leading department
stores Of tho country.
In connection with the cOnsolida-
tion Of the Gimbel interests negotia-
tions have been undertaken and VIZ
tually completed with the banking
houses Of Goldman. Sachs Co. and
Lehman Brothers, whereby the latter
are 10 acquire an interest IN the pre-
ferred and common stock Of the com
pany. No information was obtainaDle
as 20 the amount OF stock that VIII be
sold 20 the bankers. but it was stated
that control of the. business would con
tinue 20 rest with the Gimbcls, who
will be in charge Of the management
az heretofore. The bankers plan %
offer the stock publicly In the near
future.
To Promote Efficiency
The financing is projected merely a.
one feature Of a corporate change that
is expected 10 promote efficiency in
the handling Of the Gimbel organiza
tion. The raising OF money through
resort 70 the open market, u was sara
by the spokesman FOR Gimbel Brothers
last night. is not for a specific purpose
such as was involved in the acquisition
Of the Saks building. There will be no
change In policy. he said. and pro.
ceeds Of the sale Of stock will be used
in the general expansion and upbuild-
ing OF the business. The two com
panies which will be merged have
been run practically as one and even
from the operating standpoint ie"
changes are regarded As likely.
The first Gimbel Brothers was or
ganized in Pennsylvania in 1903 as me
snccossor 70 business originally
established by Adam Gimbel IN l64Z'
This company operates the dspsa,t.,,-
ment stores in Philadelphia and NIL
woukeo and It's sales are estimated %
exceed $4,000 900 annually. It's capi-
talization consists OF S5,000OOO com
mon stock and S5,0O0O00 6 per cent
cumulative preferred stock. al OF
which is held by the officers ana d.
rectors Of the company. Dividends on
the common stock have been NJ the rate
Of 10 per cent a year.
Second Company Formed
In 1909. when il was decided 20 enter
New York. a second corporation was
created in this state under the name
Gimbel Brothers. with a capitalization
Of 81 600 900 common and S4.OOOOOO Z
per cent cumulative preferred stock
and n department store was opened on
sixth Avenue, between Thlrty-secona
and Thirty-third streets. The build
irgs were purchased By the company
in 1919 The preferred stock was IN
creased in 1914 TO $5.000,000. As in
the case OF the Philadelphia company
All the stock is held by the officers ana
directors. except that julius Rosen-
wald. OF Chicago. is reputed 20 have an
interest
The list OF officers OF the two COM
panics is largely overlapping. Isaac
Gimbel is president in New York ana
vice.president in Philadelphia, and
Jacob Gimbel is president in Phila-
delphia and vice president in New York
Other members OF the family serve as
yice-presidents or hold other ofhces IN
both companies. The boards OF dl-
rectors are comprised OF Glmbels, eN-
cept that J. F. Duggan. second wee
president is a director IN the New
YORK enterprise. and Oscar Greenwald,
Murray Guggenheim and Daniel Gug-
eenheim are directors in Philadelphia.