The Washington times. [volume] (Washington [D.C.]) 1902-1939, 1928-09-27
SANITARY WILL
MERGE WITH
SAFEWAY
BY HARRY GUSACK
Financial Editor

EHdAHClHA EuIIOE
The report that an offer of three
shares Of Safeway Stores Company
stock, as at present constituted, In
exchange for five shares OF Sanitary
Grocery common stock will soon bt
submitted to the stockholders was
confirmed today by Edward G
Yonkers, president of the Sanitary
Grocery Company.
5 To / Split
In announcing the merger Of the
two companies, Mr.. Yonkers said
that under the present plan 1t was
intended to increase the common
stock8of the Safeway Company by
a five.tO-one split, in which event
three new Safeway shares viii be
offered for one share OF Sanitary
common stock. AS d part Of sthe
new developments, Sanitary pre-
ferred stock will be called, but
prior to redemption the preferred
stockh0lders will be entitled to con.
vert their stock into common and
receive the pro rata shares of Safe
way common IN exchange.
In commenting on the amalgama
ton. Mt: Yonkers made the follow
Ing statement:
'SafewRy stores operates 1913
grocery stores. ESQ markets and S
bakeries the largest chain west 1T
the Mississippi River. The gross
volume Of Safeway in 1927 was in
excess of $4,000, 00O
The Safeway Company first
came into prominence in 1925
through the acquisition of several
chains In California and in July,
1926 It Joined with the Skaggs or
gani1ation. AT the time these two
organizations joined forces they
had $50 stores and total volume OF
business Of approximately $3S.T00.-
600, while the sales in 1928 are sx-
pected TO exceed 100000, 600.
Established in 1909
SANITARY Grocery CO.. Inc, was
originally established in 1903 with
% stores. AT the time Of its
incorporation in 1927 when the
preaerlt management took char.;e,
It had 312 stores and sales volume
Of about $l5, 200, 900. At the end OF
the calendar year 1927 the COM
pany had 36S stores and did
volume of business amounting to
over SIT zoo. geo. In September
1927, the company acquired chain
OF 40 Piggy Wiggly sclf-servnc
stores and meat markets operated
In Washington and vicinity and
these stores are being successfully
operated under the Sanitary man,
agement.
Last May the company acquired
IS stores of the H. ID. Lipford
Grocery Company located in Rich
nnond, Va. estimate that the
volume of business of. the Sanitary
Grocery Company this year should
be approximately So. 0O0. 600.
II believe that the Sanitary or
gsnization will be greatly benefited
largest and best.operated grocery
chains in this country. / have
known Mr.. M. B. Skaggs. the OF.
Grating head of the Safeway sys.
tenn, for some years. and believe
that the great growth of that chain
is largely due to his ability, coupled
with conservative financial sponsor
ship. There is definite trend in
this country toward the consolida
ton Of concerns which distribute
commodities direct to the. general
public. Through these consolida-
tions economies are affected and
considerable savings are passed
along to the public in the shape
Of superior service and q better
quality Of goods at lower costs.
Yonkers President
81 shall be president of the cor.
poration which will operate the
Sanitary Stores, while my associate
Harry Hoskinson, will be vice
president. Both of us are large
stockholders in the present SAM.
tary Company, and we will vote in
favor of the plan. Apart from this
/ shall become a vice president of
Safeway Stores. Inc. with head
quarters in Washington. We plan
to increase stores in our imme-
date territory as rapidly as good
locations are available.
Il wish to emphasize that we
will continue to give our patrons
in Washington and other cities the
same excellent service we have sup
piled in the past, together with the
highest quality of goods at the
lowest prices consistent with such
quality. / believe that the proposed
alliance Of these companies win be
Of immediate and lasting benefit to
our customers from every stand
point