Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-09-19
CUTS IN FOODPR|CES
BOOSTING BUSINESS.
Thompson Restaurant Chain
Reports Pre-War Charges
VIII Be Broadened.
BY EDWARD c. STONE.

Charles A. McCulloch, chairman OF
the board of the John r. Thompson
Co, which operates several restaurants
In Washington, declares that the pre-
war prices have boosted earnings, which
Tor the current year will be close to
$3.50 q share on the 100000 common
shares outstanding In 1880.
eff the excellent response which we
have received so far to our merchandis-
ing campaign offering various foods in
our restaurants at pre-war prices con-
tinlles to hold, as appears likely, we
should earn close to the $1,126,5 85,
shown in $780," Mr.. McCulloch said.
Since we started our merchandising
program at pre-War prices with re-
duction of ham and egg sandwiches 10
cents during the middle of July we
have made the same price levels apply
to other items on our menus. We in
tend to broaden this price level still
further.
GAS an indication OF the public's re-
spouse to such prices we added 405, 900
new customers within 80 days after the
prices were put into effect in the 81
cities in which we operate" he as
serted
Mr.. McCulloch stated that the third
quarter this year, ending September
80, would show profit considerably
higher than the "a cents share re-
ported in the third quarter of 1880. In
the first six months this year company's
earnings were S1.34 a share compared
with S194 q share in corresponding
period of 1880. 1t is expected that in
creased volume stimulated by lower
prices will produce profits in the final
half this year to Offset the go cents a
share drop in earnings of the first half.
He further stated that there was lit
tie likelihood of any extra dividend or
regular rate higher than the current 81
annual dividend this year. He indi-
Gated that the management which is
headed by John r. Thompson as presi-
dent, planned to spend between $1,000
600 and 3,oO0,0 900 in an expansion and
rehabilitation program.
Retail Trade Maintained.
Reports heard from tine to time dur
ing the past year that retail trade had
not slumped nearly so badly as had
production are being confirmed by the
reports of representative merchandising
corporations that have issued their
statements for the first half year, says
the American Bankers Association
Journal. The two big mail order houses
both showed q marked Improvement in
earning power. despite decrease In
volume of sales. Sears, Roebuck g. Co
net profits were approximately $6,008,-
600 this year, as against S5,618.000 in
the first half of 1880, while Montgom-
cry, Ward & co. reduced their net
deficit for the period from $2,503,000 to
S1,376, 900.
Some of the other large organizations
which made good showtngs included the
Kroger Grocery 81 Baking Co., which
increased its net profits from $265,000
in the first half of 1890 to $Z,316,000
in the first half of 1881; Schih Co..
which increased from S15i 900 to $223,-
600: Peoples Drug Stores, which in
creased from 1921 900 to $247, 900; j. c.
Penney Co., which increased from So
407, 900 to $4,212, 600; Safeway Stores,
which increased from $1,711 900 to ST.
001, 900; Grand Union Co., which in
creased from $500, 900 to $525,000: First
National Stores, which increased from
$1,438, 600 to $2,386,0 900, and Loft. Inc,
which changed from deficit of $751;
600 to profit (before certain charges)
of $4,000. Combined earnings of a
group of 81 merchandising companies
increased from SIS, 291 900 in the first
half Of 1880 to so 81, 900 in the first
half of 1881. or by 1873 per cent.
As proof that goods can be moved In
large volume If the price is attractive,
the Great Atlantic & Pacific Tea Co.
reported that in the five weeks ended
August sales amounted to sos, 528, 900,
decrease of IL per cent in dollar value
compared with the corresponding period
year ago, but tonnage of goods sold
during the period amounted to 5l3,095
and showed Ill per cent increase
compared with last year.
Dividend Is Increased.
A quarterly dividend of so cents a
share is announced on the LOOMS
Sayles Mutual Fund, Inc, Shoreham
Building payable october / on stock OF
record September Is. This funds divi-
bends are paid only out of earned in
come. The present payment is an in
crease Of 10 cents over the five previous
quarterly dividends