Evening star., 1928-03-15
PEOPLES DRUG PFD.
ISSUE IS CALLED
Stockholders Meet April S to
Consider Reorganization
OF Concern.
BY EDWARD c. STONE.


the ST. .coo.00o s per cent prcferre'
stock nov outstanding.
The Peoples Drug Stores Stockhold
erS Will meet on April 5 10 approve
REORGANIZATION Of the company 10 pro
VIDE funds for this redemption and ais
for further expansion.
The directors recommend that ncv
caDo021v be formed which would sci
s.. 500. 900 Of preferred stock, convertible
over a pcrioC of five years into common
stock. There would be 100000 shares al
The rev cotnpany'S common stock eN'
changed for an equal amount OF COM
mon stock III the present company.
Thr new company would assume tht
warrant obligations OF the present com
y,a,v and would reserve Suthclcnt O.
lis common shares 70 redeem these war
rentS. Provision IS "a DC made Tor tnt
sale Of limited amount OF common
stock 10 employees. The company plans
10 ACQUIRE more drug store chains.
At The same time that notices re-
csrd!rg the calling Of the preferred
stock were sent out. notices we're also
mailed - the common stockholders an
rouncine that the directors consider II
a0 ovc0rtuac time 10 refund the pre-
terred S per cent issue with 6'2 per
cent convertible preferred stock issue
thereby making q saving OF IL pei
cent.
In order - carry out this plan,"
the company says. your board or dircc-
,ors has adoD;ed q plan o: rcorCaniza-
;i1n that will result il the retirement
# all the preferred stock: the acQuiSi-
;lcu Of ynur Ccmpany'S assets subject
10 liability BY a new company for COM
mon stocG Of such new company. Which
viii. IL turn. be distributed 10 the COM
mon stockholders Of the present COM
,>ary share for share: and for furnish
;nc additional capital for expansion
purposes.
The plan Of reorganization con-
terminates ii substance that all the
-Ssets Of YOUR company shall be trans
-erred 10 a new Maryland company of
he same name. which shall have the
eame board Of directors and the same
MANAGEMENT and personnel as the pres
rrt COMPANY, and that the present COM
r~aylv shall receive in return for Its
ossets one share Of common stock OF
ne new Maryland company for each
share OF common stock OF your company
outstanding Oh the cate OF Closing the
transaction"
The charter Of the new Maryland
company Will authorize 100000 shares
without par value Of common stock and
100 900 shares OF the par value OF Sl00
each Of preferred stock.
The redeening OF the preferred stock
came as a distinct surprise to the local
financial district.
Local Securities Hold Firm.
Tnteres: on the Washington Stock Ex-
.2ange today centered IN the action Of
Peoples Drug Stores preferred stock.
following the announcement that the
company proposes TO call III this issue
Trading in il was very moderate. 10
:'a-es selling at 1872 and 10 more at
81. While j: is caIlabIe at 10 1t has
aiuabie warrants for the purchase of
11lr : stock at so. the warrants pre-
1nt!ng any heavy selling n the mar
st To-Day.
Potomac Electric per cent preferred
I'D az lii@s. while the s. per cent issue
12ved a. I07i2. Railway 4; Electric
i'd AZ 1892. Lanston Aionotype
sr1e out a. IG9. while Washington Gas
icilt stock as again strong. opening at
r9i2 and closing al so. There was more
aer stock but sales totaled only IS
sarcs
Trading was quiet in bonds, recent
.1..ce levels being maintained.
New Telephone Stock Mark.
The American Telephone &; Telegraph
"a, recently issued It's three millonth
ock certificate. The company puts
II an averages Of about 500 new stock
srt!acates each business day. with fre-
;aut occasions when total OF 1000
r daY is reached. At stock issue times.
d. course the volume Is much greater.
e a rel
ock certificates 70 the public was
ade IN 1900 n exchange for stock OF
e American Bell Telephone Co. al
z headquarters of the company, which
re then located in Boston.
II Is estimated that there are now
tEtardi.lg over one million Of the cer-
<tcates which haze been issued ieaV-
g q total of approximately tao mil
= which have been Cancelled "a trans
rs.
Issues Far Oyerxubscribed.
Subscriptions for the two new issues
a Treasury certificates Of Indebtedness.
se Treasury announced today, were
a?ly double the amount allotted. The
al subscriptions amounted 70 ST 900
. 900 while the subscriptions allotted
re s3gz f3i 500. OF the latter sum.
81 s051 $50 Ms 70 Tct4Te Treasury
r1lGcates oi Indebtedness maturing
MORROW.
stock list.ngs on the New YORK
'fsck Exchange today included 92i ,Ia4
,&,ano.g SHARES ~ 10 par common,
q 100 900 shares Of 7 per cent
rn1.atj3e convertible preferred q 500
r value g. the Ke.th-AIbee-O -Orp!1eun
1spor&t.ou and the outstanding
.9.c9D shares y! $3.50 cumulative
ctegted Eupck n Lre~'s incorporated.
Sanitary Grocery Sales Up.
Gaies q 70 chain s.orea IN February
yaec ST aggregate gain over the
.rse month ~ 1927 u nger II pc.
-. The greatest incseaseS during
e neotn were made by SanlLary
rEefy, fateWag EDofcS. National Tea
% J J. AeHa4Fy, Ganjtary Grocery
!1 %AS 11H The 39ca1 concern IL
q cipse ~ the up Tor the first tWO
2gti-s II tie year. For this PERIOD
J. tscWpyTY pygK the iead. With Safe
~ Gtofcs ;n setoHd pi&1;e. Rational
a tagrd ard Sanitary Gt0ce3y tp0ftn
The four companies were way ahead
2p1a Wpgi%2!lD and Kfeage.
Heard in financiai District.
Norman FISCHER trust officer ~ the
r1t3neatal JU1at CO. TlaS written "
DlstS3cs L8cef winters ES%ocjat!pf
,sg co5cl&i slppgft ~ the nloye foi
sGGIe ragtt4! pFfSErgalGgl cf estate
tsgp3PA Lte lh483aEtf
lu1f % @yEeBi a#lC4. W!,cn &hHNfd q
GEO tece&&5ga "a sDi4ue during tas
~ 1921. att again "a me increase
g5fg p&ce villa the aete!eyateG pro
cssqy II q assgppDlieS.
sj4e EH:fH EMe3aran Cos Sgbs.G.arlc:
Ns@etUalu and Dpy@f peninsula .
oaHan vii >pes>G css5e ~ .$I7Go0 81
te8 kaitduga and Improvements !,
~ ms t1tetca 1871 b4dgst h.
ye tAaH 81. 1tD GJy
sIMMG PETROLEUM.
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