Evening star., 1937-10-24
COSTS RISE CUTS
9-M0NTH PROFITS
Of PEOPLES DRUG
Earnings of $3.50 a Share
Compare With S2.92 for
1886 Period.
SALES AT $16,286,237
WELL ABOVE YEAR AGO
Capital Retail Trade Reported
Practically Unchanged From
Last Weeks Levels.
BY EDWARD C. STONE.

Stores, Inc, in the first nine months
of this year were higher than a year
ago, but the higher cost of operations
brought about a slight decrease in
net earnings on the common stock,
the drug chains head office reported
here yesterday.
Net sales in the nine months
amounted to s16,286,237.22 against
$15,014, ,94955 in the like period in
1885. At the same time, other rev.
enues brought total stores incomes
up to S16,509, ,355.76, compared with
S15.22l, ,11l.77 a year ago.
Earnings on the 245,474 outstand-
ing shares of common stock so far
this year amounted to $3.50 per share
in the like period in 1886, the report
showed
Cost of sales, operation OF stores,
general and administrative expenses
were all higher than year ago, leav-
ing an operating profit of S769 ,306.23,
as compared with the higher figure of
S9l0.96093 a year ago. After all de-
ductionS for taxes, preferred stock
and other expenses, net profits avail
able for the common stock amounted
to the substantial sum of $685., 1868 90,
against S716,86405 in 1886, the report
stated.
Weeks d. C. Trade Unchanged.
Retail trade in Washington during
the last week was practically un-
changed from the previous week or
the like week last year, the Commerce
Department reported yesterday. Sales
showed an average gain of 0.66 per
cent from last year and declined 096
per cent from the previous week.
Bank clearings recorded slight
gain, S25, ,153 ,292, comparing with S25,-
147683 year ago. The value of
building permits issued during the
week under review totaled S403,200,
against the lower total of $397,550
last year. The number of visitors in
the Capital, however, revealed de-
crease.
Retail trade made advances in the
rest of the fifth district, although
adverse weather conditions forced
some poStponement of consumer pur-
chases Wholesale trade felt the in
fiuence of the current uncertainty in
the securities and commodities mar
kets, the survey states.
After what Baltimore called the
best September showing in the last
seven or eight years, retail trade in
the first half of october continued to
disclose a moderate level of improve
ment over the like 1886 period Nor
folks business was definitely ahead
Of last year."
Transit Investors Aroused.
Granting of higher freight rates to
the railroads by the Interstate Com
merce Commission stirred up great
deal of discussion in the financial dis
trict yesterday among holders of Sc
curities of the Capital Transit Co.
They insist the situation with the
transit company is exactly parallel with
that of the railroads. In both in
stances operating incomes have been
rising, but expenses have been going
up still faster.
The transit company's plea for high
er fares has been pending before the
Public Utilities Commission for about
two years. After the hearings last
June both sides were given until Au-
gust to file statements covering dis
puted points at issue Since then the
commissions ruling has been eagerly
awaited and expected almost daily.
During the present year the stock
has dropped from 16 to 9$s and the
bonds from 81 to 72, the lowest point
in a much longer period. OF course.
the bond interest is paid regularly,
but it has been long time since any
dividends have been paid on the Stock
Stockholders insisted yesterday the
road should be allowed to earn enough
money so that they would "get divi-
dends of their stock which they
bought as an investment, not as
speculation"
Banks in Sound Position.
H. H. Mckee, president of the Ma
tional Capital Bank, who attended
the Boston convention of the Amer
ican Bankers Association, made re-
port on the meetings. high lights,
during the weekly luncheon of Wash
ington bankers at the Willard Hotel
Friday. After presenting an outline
of the leading speeches, Mr.. Mckee
said he felt that 1.-The banks of the
country as whole are on sound
basis"
Securities on the Washington Stock
Exchange remained firm during yes
terday's closing session of the week.
Capital Transit stock figured in two
sales at 91a, and Potomac Electric
Power 51a per cent preferred moved
at 1875. Norfolk & Washington
Steamboat Co. stock appeared on the
board on a sale at 85. Mergenthaler
Linotype opened at 3o1a and closed
with two sales at 80.
New York mutual savings bankers
at White Sulphur Springs adopted
resolution opposing the granting of
any more Federal savings and loan
charters in New York State and
earnestly requesting" the Federal
Home Loan Board to refrain from
further chartering of such institu-
tions without the approval OF the
superintendent of banks. A copy of
the resolution is to be sent to Presi-
dent Roosevelt.
Rollin A. Wilbur, IS, former presi-
dent of the Investment Bankers As
sociation and associate of the late
Myron T. Herrick. died Thursday at
Toledo hospital following short
Illness. He was personal friend Of
many Washington investment dealeGs.