Evening star. [volume] (Washington, D.C.) 1854-1972, 1930-02-26
GROCERY BUSINESS
IS DECLARED GOOD
Kroger Co. President SAYS
Outlook Is for Improve.
ment in Sales.
BY JOHN F. SINCLAIR.

bI JOhN f. SINCLAIhs
Special Dispatch to The Star.
NEW YORK, February 26.-william
H. AlberS of Cincinnati, the 47-year.
old president of the Kroger Grocery
&c Baking Co., operating 5,527 stores
which in 1929 did business of more
than $286000,0 900, sees decided i'm
provement in the last six months of
1880.
Asked about grocery trade conditions
throughout the country, he said:
Our general sales were 2 per cent
better than a year ago for the same
number of stores. There is still some
weakness in the commodity prices. Our
prospect for business within the next
six months is fair, with decided i'm
provement after that"
The name Kroger is known in more
than thousand cities throughout the
Middle West. In volume of sales in the
chain field it is now exceeded only by
the F. w. Woolworth Co. and the At
lantic & Pacific Tea Co
The Kroger organization years ago
began scientific study of merchan-
dising turnover. In 10 years the num-
Der of articles sold in its stores has
been decreasing-from $500 different
articles then to 800 and 900 now. The
average Kroger store carries about
$4,000 worth OF goods and figures on
turning over that volume every 10 DAYS.
When asked Mr.. Albers about the
problem confronting the small grocer.
ne replied:
1--WE have nearly 10000 men employed
in our business and nearly half of them
are stockholders. Hundreds of these
men never saved a dime before they
entered our business. Profit sharing is
here to stay. When a man becomes a
keyman with us, we give him a sub
! stantial stock interest. This is why
our labor turnover is so very slight.
mo one can foretell what the final
| form of merchandising distribution will
| take. Perhaps there is no final form.
| for the law of business progress spells
continuous change"
Common Stocks and Trusts.
| Should common stocks be placed in
/ trust accounts?
Edgar L. Smith, New York investment
banker, believes that voluntary restric-
| tons in the management of trusts
| should be established by indenture, or
| otherwise, if the tendency is toward the
elimination of legal restrictions.
Mr.. Smith favored the admission of
| common stocks into trust investments
| on the ground that certain percentage
of them became the best form of in
surance against the loss of purchasing
power in period of currency or credit
! imitation" But he laid great stress
| upon the fact that the account should
maintain a balanced position between
bonds and equity investments (stocks)
History is replete with examples of
eminent trustees and administrators
who have been carried away on tie
| speculative illusion of their time to the
detriment of the funds for which they
were responsible" said Mr.. Smith
H. F.. Wilson. jr, vice president of
the Bankers Trust Co. of New York,
believes that small percentage of trust
fund investment in common stocks is
sometimes desirable, providing the stocks
are chosen on the basis of yield and
soundness, not on speculative posi-
bilities.
Over the long pull the tendency of
the country is to get richer and under
ordinary conditions the same holds
true of corporations So equities over
periods of years, evidenced by COM
mon stocks, would seem to have bet
ter chance for rise. other things be-
ing equal, than bonds, which remain
fixed in amount and return.
Natural Gas.
What part did large available sup
ply of natural gas play in the determ-
lining of the United States Steel Cor
poration to enlarge its Birmingham
plants? No doubt. large one.
United States Steel but few days
ago signed a contract with the South
ern Natural Gas Corporation for the
delivery of gas to its subsidiaries in
the Birmingham region, which is
equivalent in heat value to the total
annual sales of gas in the city of Bos-
ton.
This is the second large contract
signed by the Southern Natural Gas
Corporation for the delivery of large
quantities OF gas through their pipe
line, opened but few months ago.
The new system comprises 900 miles,
piping gas from the Monroe and Rich
land gas fields in Northeastern Louisi-
ana. Natural gas is playing a vitality
important role in the development of
the new industrial South.
The question arises: Suppose this
gas supply should fail? Provisions have
been made by some companies to take
care of unusual peak loads by storing
gas in old wells. But never before in
the history of the industry has such
| demands been made upon it and they
are continually increasing.
Should an insufficient supply of gas
| exist, millions of dollars of equipment
would be useless as well as spelling
ruin to these new industrial centers
built around it. BY the end of 1880
about $4,000 900 900 will have been in
vested, with consumption averaging
about II trillion cubic feet.
AT present there are thousands of
miles of natural gas pipe lines. The
tremendous growth of the natural gas
industry in recent years has been phe-
nomenal-an old industry which has
come to life.
will any banking legislation be
| passed during the present session of
| Congress-" asks a California reader.
OF course, nobody can say at this
moment just what will happen in this
situation. But as legislation shapes up
now 1t does not seem possible that any
legislation can be completed at this
session of Congress.
II the House committee on banking
and currency enters into the proposed
inquiry into chain and branch bank
1 ing it will undertake a man sized Job
that will take months to complete.
1t does not seem possible that Con-
gresS can finish that job of thorough
banking investigation in time to pre-
sent any constructive banking legisla-
ton before Congress adjourns.
| Copyright, 1890, by North American News
paper Alliance)
]