Evening star., 1939-09-26
S2,350,o00 Stock
In GarfinckeI Store
To Go on Market
Amount Largest Ever
Offered Here Aside From
Utility Issues

What is said to be the largest
amount of stock ever brought out in
Washington, with the exception of
public utility financing, is expected
to 60 on the market Thursday, when
public offering is made of 10000
shares of common stock and 10000
shares of cumulative convertible
preferred stock of Julius Garfinckel
& Co.. Inc. The sale, which in
wolves a total of s2.35O,OOO, means
the transfer of the big department
store at Fourteenth and F. streets
NV, from the Garfinckel estate
to a newly formed corporation.
1t was announced in the financial
district today that the common stock
is being offered at $40 per share
by a banking group headed by j.
G. White & Co., Inc, while the
preferred. at S25 a share, is to be
offered by underwriters headed by.
Robert Garret & Sons and Alex
ander Brown & Sons, both of Balti-
more. with several Washington firms
participating.
Underwriters of the common stock
include j. c. White e. Co., New
York; Auchincloss, Parker & Red
path, Washington; Robert Garrett
& Sons, Alexander Brown e. Sons,
Baker Watts & Co. of Baltimore; Y.
E. Booker Co., Washington; Childs.
Jef1ries e. Thorndike, Inc, Barrett,
Herrick g. Co., Inc, New York:
Johnston, Lemon Co., Washington:
Kirchhofer, Arnold, Raleigh, N. c.:
Scott, Horner & Mason, Lynchburg;
Stein Bros. & Boyce, Baltimore.
Most Of these firms are also under
writer's of the preferred stock.
Both the preferred and common
stock issues will be listed on the
Washington Stock Exchange when
approved by the Board of Cover
nOrS.
Business Started in 1905.
Proceeds of the sale are to be de-
voted to the purchase of the busi-
ness and real estate of Julius Gar
finckel & Co., which has operated,
since 1905, a retail department store.
The business of the predecessor
company will be purchased from
the Riggs National Bank and
others, as executors and trustees of
the estate of. Julius Garfinckel.
The balance of the purchase price
of $4.349,OO0 will be provided
through a 81 100000 deed of trust to
the Prudential Insurance Co. of
America, secured by a first lien on
the real estate and improvements
thereon, and by delivery of $750,OOO
par value of cumulative 6 per cent
preferred stock to the estate of
Julius Garfinckel, and $84, 900 in
promissory notes. On completion of
the financing, the company's out
standing capitalization will COM
prise $4,000 shares of cumulative
convertible 6 per cent preferred
stock, $25 par, and 10000 shares of
81 par common stock.
Julius Garfinckel & Co., Inc, a
speciality store dealing primarily in
women's wear and accessories, oper-
ates a total of SO retail departments
and five service departments, in
Guiding fur-storage vaults. The real
estate to be acquired comprises the
property and nine-story building To-
Gated at 1401 F street NV.
Major Executives.
According to the registration
statement FLED with the Securities
and Exchange Commission, William
E. Schmid, for many years closely
associated with Mr.. Garfnckel. will
be president and principal executive
officer; Elizabeth Fairall, active in
the store for years, will be vice
president and a director: Gordon A.
ONeill, vice president; Jennings A.
Snider, secretary, treasurer and ac-
counting officer; Sidney F. Taliafer-
70, vice president and trust officer
of the Riggs National Bank, di-
rector; Murray Mcconnell, New
York, director; E. Cortlandt Parker,
Washington, director, and Richard
p. Dunn, partner in the investment
firm of Auchincloss, Parker & Red
path, director.
Tracing the growth of the busi-
ness since its founding in 1905, the
registration statement states that
gross business of $166,779 for the
first 10 months Of operation COM
pares with gross of $3,401, sol for
the IL months ended July 81, 1889.
Net income before provision for
income taxes. for the latter period,
was $235, ,402. After adjustments
the indicated net income in the IL
months ended July 81, 1899, was
equivalent, after estimated income
taxes, to about three times divi-
dend requirements on the preferred
stock, and the balance remaining