Evening star., 1927-03-19
PEOPLES DRUG NET
IS S837,582 GAIN
Company Earns $3.51 on
Common in Year-Farm
Loan Rate Cut Likely.
BY EDWARD C. STONE.

HcOpJeS Drug Stores annual report
for 1926 shows healthy Improvement
over 1925 with net earnings, after
Federal taxes. available for dividends,
of $43l.769. After payment of pre-
ferred dividends this was equivalent
to $351 per share on the 100, 900 shares
OF no par value common stock out
standing. compared to $3.41 per share
in 1925.
The balance sheet discloses an in
crease in assets of $S37,5S2. Working
capital position of the company
showed a slight falling off. however,
in comparison with the previous year.
due to the increase in number of stores
from IS to 46. which were financed
entirely from earnings. Sales during
the year amounted to $6.342 ,692, com
pared with S5.20S,979 in 1925.
President Malcolm c. Gibbs. in his
report to stockholders, states that the
chain as now constituted is on a
normal S8.000,000 annual sales basis.
While earnings did not increase pro
portionately to sales, this was due to
the fact that it was necessary to en-
large the company's organization ma
terially on account of the expansion
of it's business Whereas a year ago
its stores were all located in the Dis
trict of Columbia, at present the com
pany also operates stores in Mary
land. Pennsylvania, Virginia and west
Virginia.
This resulted, he reports, in in
creased overhead, which was not fully
absorbed In the volume of business
done during the year, but should be
fully taken care Of during 1927. Sales
for the first two months of 1927 ere
35 per cent in excess of those for the
corresponding period of last year.
Banker Notes Birthday Anniversary.
C. J. Gockeler, vice president of the
District National Bank, secretary
and member of the board of gov
ernors of the Washington Stock Ex-
change, was receiving fluctuations
today upon reaching another birth
day anniversary. Mr.. Gockeler is one
Of the most active financiers in
Washington and his friends are
legion. Before becoming a bank Off
cial he was secretary of the Wash
ington Board of Trade and did much
to advance the activities of that body
The financier is treasurer of the
Washington Auditorium Association,
member of the National Press Club
and several other organizations. He
boasts of 81 Summers and is grow
ing younger every day.
Kresge Reviews Chain Growth.
The annual report just issued by
the S. S. Kresge Co. shows that in
80 years this company has grown
from l store to an organization oper-
ating 377 stores, an average increase
of about IL units per year. During
1926 81 new stores were opened and
with some $500 additional cities
available for the opening of "5 and 10
cent" stores in the United States
alone. continued growth is expected.
In the past Is years sales increased
from $5,116,099 to $119.300,074 and net
profits from $30,993 to S12 2.504.442.
May Cut Farm Rates.
The Federal Land and Joint Stock
Land Banks are considering reducing
the interest rate on loans to farmers,
it was indicated at the Treasury today.
These banks now have outsta Hding
more than $1.700,000, 900 on American
farm lands. The average rate charged
by land and joint stock land banks at
present is 5 to 5H per cent. Treasury
officials indicated that a uniform fiat
interest rate of per cent may soon
be inaugurated and a slight cut fur
ther effected later if money conditions
warrant.
United Cigar Stores Net Grows.
United Cigar Stores had net income
OF $9.854,869 for 1926, including $2,301,.
639 enhancement of leasehold values,
equal after preferred dividends to $5.O2
a share on the common. Net for 1925
was $S,813,228. including s1,295,196 en-
hancement of leasehold values, or
1924 on a smaller number of shares
Other Financial Notes.
Directors of Southern Diaries met
In New York yesterday afternoon, but
reported that only routine business
was transacted.
j. T. FELTON,, formerly of the sales
force Of the American Bond & Mort
gage Co., has joined the staff Of the
bond department of Crane. Paris &
Co.
Richmond, Baltimore and Atlanta
again showed loss in bank clearings
for the week In comparison with the
same period last year. Dun's report
for the whole country, however, re-
veals a good sized increase.
Moody's Weekly Review considers
the increasing cheapness in money as
the feature of the present financial
situation. "In the late Spring or
we may find ourselves in a
3h per cent money Market" the
report says.
Traffic Up $50 Per Cent in rs Years.
In a recent bulletin the Southern
pictures the South's mineral
riches and adds:
Traffic on the Southern Railway
System has increased ESQ per cent in
the last 25 years. To handle this
greater traffic efficiently the Southern
n the same period spent 1915 900 900 |
or new equipment and for enlarge
nents and improvements on it's 5000 |
niles of lines serving the States east |
of the Mississippi and south of the |
Ohio."
Bank Publications Appear.
The Commercial National News,
edited by r. Jesse CLANCY, and the |
security News. published by the |
American Security and Trust Co., ap- |
oeared today. Both are excellent |
numbers. The publications are brought |
'ut each month in the interest of the |
employees Of the banks mentioned.
ZINC cT0rYc TrNrrY Errn