Evening star. [volume] (Washington, D.C.) 1854-1972, 1929-04-12
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/ 1877 4 1928 /

so that they are able to estimate their
probable -four and sugar needs, the
prices Of which commodities vary con-
siderably In cost. Thus the company
has been able to minimize losses on this
| account.
AS the country has grown. National
| Biscuit has been building bakeries in
new territories. until It now has so
bakeries making 225 different varieties
of biscuits, which are sold under many
trade marks and trade names. The
conservative accounting methods for
which the company is famous Ii well
| illustrated by the fact that these trade
marks are not mentioned on the bal
ance sheet.
Although National Biscuit has been
steadily expanding since its formation,
expansion plans have lately been pushed
forward at an increased pace. In 1928
| the company acquired the Item Biscuit
Co., q large. Middle western concern,
and Christie Brown, Canadian COM
pany, thereby strengthening its posi-
ton in these markets. In addition, plans
were made to acquire the Holland Rusk
Co.. manufacturing q trade marked
! hard toast, and the Shredded Wheat
Co., manufacturing breakfast food.
BY reinyesting large sums In It's Or
ganization in earlier years the company
improved its financial position 30 that
1t can now pay out q large part OF re.
puted profits in dividends. Earnings
have increased steadily from S4.54 in
| 1922 to $731 in 1928. and dividends
have correspondingly been raised. until
| the present rate Of SIS. At IT'S, then, the
| yield is - per cent, and like many
other companies whose records have at
| tracted q large investment following,
1 - &nI1{R1oA a a TaFtFA
which Is anticipating higher yields In
the future. ...,.... .t-.....
| 80 Loose-Wiles.
The Loose-Wiles Biscuit Co., the sec
| ond largest in the country. is an OUT
| growth Of q company formed in 1908.
It had to struggle for foothold IN the
industry for many years. but succeeded
| in climbing steadily. Progress since 1922
has been especially rapid.
| AS the company has entered new
markets, its trade mark. sunshine
Biscuits" has become increasingly pop
ular. Today it has 10 plants east Of the
Rocky Mountains and distributes its
products through 100 branches.
In addition to its biscuit business, the
| company has begun the manufacture
| Of candy, an interest which is reported
to be expanding rapidly.
. For many years HOUSEWIVES pald no
dividend on its common stock, using
earnings 10 improve its financial posi-
| ton and for expansion. As o result, the
company now feels Justified In paying
out large share Of earnings in diW-
dends.
Earnings have grown from 80 cents in
| 1922 to $377 last year. With dividend
| Of $3.50 the stock is therefore paying
a. Oer cent at So
It is interesting that the earnings OF
both National and LooSe-Wiles have
grown steadily in recent years. Loose
Wiles has shown O slightly faster gain,
due probably To- the fact that its posi-
| ton was rather more insecure before
1921. At current prices National Is
selling at ~ times last years earnings
and Loose-Wiles at Is times last years
! earnings.
The companies plan to continue their
| expansion programs. While dividend
rates have been advanced as steadily
growing earnings warranted, the pres
ent yields Of around per cent are
probably anticipating future growth to
some extent.
tCopyrightr 1927