Evening star., 1933-03-12
DRUG STORE SALES
OF PEOPLES CHAIN
REPORTEDf0R 1882
Lower Total Than Year Ago
Held Reasonably Good by
President Gibbs.
NET OF SO PER SHARE
EARNED ON COMMON
Local Traders and Investors Deeply
Interested in Reopening of
New York Exchange.
BY EDWARD C. STONE.

BY EDWARD C. STONE.
Total retail sales of Peoples Drug
Stores, Inc, the big drug store chain
with headquarters in Washington, dur
ing 1882 totaled s16.1S0,16275, COM
pared with s17,439,C31.77 in 1881,
decrease of S1,258, ,86902 which repre-
SentS percentage decrease of 7.22 per
cent. After making adjustments for
closed stores, the decrease in sales
volume was equal to $50 per cent.
These figures were brought out in
the annual report made yesterday by
the drug company, of which, NJ H.
Gibbs is president. The report added
that net earnings for the year, after
providing for adequate depreciation and
all ether charges, including Federal
income taxes at the increased rates
prescribed by the 1882 revenue act,
were SSH, 1870 of which, $143,981 so
represents dividends declared and paid
on the outstanding preferred stock and
s367,813.60 as earnings applicable to the
common stock which is equivalent to
So per share on the common stock.
During the year, President Gibbs re-
ported to the stockholders, seven retail
piring leases which were not renewed
due to the fact that the locations either
were improbable or that satisfactory
renewal terms could no be arranged.
This reduced the number of stores in
operation at the end of the year to
lit as compared with 124 on December
81. 1881. there being no new stores
opened during the year
President Gibbs rerorted that the
financial condition of Peoples Drug was
better at the end of the year than on
December 30. 1881, the ratio Of current
assets to current liabilities being "a
to l as ccm-ared with 3 to l at the
end of 1871. The drug company added
that further progress had been made
during the wear in tho development
of MERCHANDISE produced in the firms
own laboratories.
In view Of the economic conditions
prevailing through the year. the Off
cials believe the results are highly sat-
isfactory. Reasonably satisfactory re-
suits during this year are believed to
be assured by the continuance Of pres
ent business and merchandising poll
cies
Peoples Drug Stores preferred stock
has always been listed on the WASH
ington Stock Exchange and the COM
mon is listed On the New York Stock
Exchange. In normal times there is
a large amount of trading in both
these issues.
Market Predictions Impossible.
The Washington Offices of the New
York Stock Exchange firms are
anxiously awaiting reopening of the
big board" this action being wholly
dependent on the resumed banking
operations. There has been a great
deal of discussion here during the past
do when the tickers start moving and
business is resumed One mans guess
is as good an another although the
advance in commodity prices is usually
interpreted as a bullish actor
A study by Administrative and Re-
search Corporation of the price action
of common stocks after the only two
previous extended closings of the New
York Stock Exchange indicates that
there is no precedent as to how the
market may open after the present
closing.
WHEN the exchange was closed at
noon September 18. 1873, as result
of the failure of Jay Cooke & Co.,
promoters of the Northern Pacific
Railroad, the average closing price for
principally railroads, was 65.41," this
review states. "On the first day Of the
reopening these same 20 stocks dropped
to 1888 on average"
THE action following the closing on
July 81, 1914, previous to the outbreak
of the World War, however, showed a
marked rise en- the opening date, De-
cember IL, 1914. The 20 Dow Jones
industrials closed at 51.88 on average
and opened at 54.72. At the opening
the exchange permitted trading under
restrictions and it was not until April
l. 1915, that all restrictions were re-
moved By that time. after four
months of stable and slightly increas-
ing market prices, the Dow Jones
averages had risen to 61.05."
Offers Way to Ban Hoarding.
A recommendation that the Federal
Government issue one-year notes bear
ing interest of to 4 per cent as a
means of bringing about a return to
the banks of gold still boarded and of
aiding the Government in its short
term financing, was made last night in
telegram from Louis Guenther, pub
Usher of The Financial World, to Sec
rotary Woodin of the Treasury. Mr..
Guentners telegram follows:
Il wish to submit for your respectful
consideration a suggestion to meet the
boarding problem. Make public an
nouncement of one-year Government
note issue bearing or per cent in
terest which will be delivered to all
those who will deposit either gold or
currency in their banks. Bankers
could be instructed to give receipts for
such money with Government backing
that deliveries of the Government
one-year notes will be made by the
banks as soon as possible. Such a
plan would appeal to those seeking
absolute safety for their funds and at
the same time would aid the Govern
ment in its short term financing which
will be especially heavy during the next