The New York herald., 1922-08-16
NEW MACY STOCK
=. FOR SALE TO-DAY.
S6,OO0,0OO z Per Cent. Pre-
ferred Issue to BE Offered
at $103.50 a Share.

Formal offering for public subscrip-
tion 81 s6,000.000 new per cent cumu-
lative preferred stock of r.. II. Macy
& Co. will be made to-day by Lehman
Brothers, the bankers who underworld
an issue of Gimbel Brothers stock Last
week. This is part of s10,000.00o Of
new preferred stock presently to be
authorized and issued by the company
in the course of capital readjustment,
which also involves the authorization
and issuance of $4,000 shares of COM
mon stock. The management also has a
profit sharing plan in which it win re-
serve block of stock for employees of
the Macy organization.
The new preferred stock has a par
value Of 500 and will be sold at $103.50
a share and accrued dividend. The COM
mon stock will have no par value. APP
plication has been made to list both
the preferred and common stock on the
New York Stock Exchange.
The preferred stock is redeemable as
whole or in part at $115 a share and
accrued dividends. On or before August
/, 1923. and annually thereafter II is
provided that out of surplus and net
earnings at least three per cent. OF the
largest amount In par value OF the pre-
ferred stock at any one time outstand-
ing shall be acquired by the company by
redemption or by purchase at not to
exceed $115 a share and accrued diyi-
dends.
Jesse Isidor Straus. president of r.
III. Macy & Co., in a letter to the bank
ers. states that for the three years ended
January 2S, 1922, the annual net sales
were, and computed on the basis of 1929
Federal taxes, the annual net profits
would have been as follows:
Net profits
computed on
the basis of
1922 Federal
~. Year Ended o Net Sales. tax rates.
Jan. 81, 1920..... .S35, ,5i5 $3,1o0,03S
Jan. 70, 1921. 44.527 POI 2,41s, Goa
Jan. 2s, 1922....... 1861 ,762 2,299, SIG
Average annual net profits for the
three years ended January Is, 1922, COM
puted on the basis Of 1922 Federal tax
rates, would have been S2,6R.S19, about
3.79 times the annual dividend payments
required on the total issue of $4,000, 900
preferred stock Sales for the six months
ended July 29 last were $22,223.227, COM
pared with $21,470.46S for the CORE
spending period in 1921. Approximate
net profits before deduction for Federal
income taxes for the first six months
OF this year are estimated by the COM
pany at S1,449.000, compared with net
profits of $1,2S3,270 before taxes for the
corresponding period of 1921.
The consolidated balance sheet OF the
company as of January 2S last, after
giving effect to the recapitalizatfon, shows
net tangible assets of S1S,931,722, ex-
cluding the good will account of $1,000
600. Net current assets amount to about
S12,52S,023 and alone are equivalent to
125 per cent. Of the entire preferred
stock.
Readjustment of the capitalization Of
r. II. Macy & Co. will involve no change
in the management. The present organi-
cation, which has conducted the business
since 1914, viii continue to exercise con-
troll.
The Macy organization had its begin
ming in 1853 when Rowland II. Macy
started the business in a small store
Mr.. Macy died in 1877 and Charles u.
Webster. q relative, succeeded to the
business. In 1883 Mr., Webster invited
Isidor and Nathan Straus to become
general partners. In 1901 and 1902 the
Macy business was moved from Four
teenth street to its present location.