Evening star., 1942-09-21
|GarfinckeI Volume
|Up 25.3 Per Cent
lin Fiscal Year
S483,0l9 Net Profit
Compares With $37o,279
In Previous Period
BY EDWARD c. STONE.

Net safes OF JULIUS GarnncKel &
Co. for the year ending July 81
amounted to s5,832 ,S8o6 as COM
pared with net sales of $4653 ,603 Al
in the previous year, striking in
crease of sl,179,27719 or 25.3 per
cent. William E. Schmid, president.
reported at the annual meeting of
the stockholders, held in Alexan-
dria today
Net profit after the deduction of
all charges against income. but be-
fore the provision for income and
excess profits taxes, amounted to
s483 ,01978, compared with S379,-
1882 last year, the report said.
This was an increase of 27.4 per
cent, or $103,74046.
This increase, the report added, is
after extra compensation paid to
the president and vice president of
the company under the terms of
their employment. based upon a
percentage of increase in such
profits. The report continued:
S1.62 Earned on Common.
"As you are we'll aware, there was
substantial increase in tax rates
in the 1941 Revenue Act and our
provision for income and excess
profits taxes according to existing
law amounts to S230,0O0, or $2O9 per
share of common stock, compared
with the provision a year ago of
$102 900, or SO cents per common
share. After deducting this pro-
vision for income taxes, a net profit
is shown of $253,0l978, compared
with the net profit of s277 ,279 80 last
year after provision for much lower
taxes.
After dividend requirements on
the preferred stock, earnings per
share Of common stock this year
were sl.62, compared with s1.84 a
year ago. We have, however, set
up an additional Federal tax pro-
vision CT $4,000, which is estimated
to be required, if proposed 1912 rates
as approved by the House of Repre-
sentatives are enacted applicable to
the entire seven months, January to
July, 1912.
Should this entire additional re-
serve be used, we will pay in income
and excess profits taxes a total OF
$1,000 equal to S255 per share OF
common stock. Therefore, the net
income for the year would be re-
duced by this additional taxation to
the net amount of $203,019.78. After
preferred dividend requirements
this equals $l.16 per share of COM
mon stock.
Regular Dividends Paid.
Regular dividends at the rate oil
per cent per annum we're paid or
the preferred stock and at the rate
of 171a cents quarterly on the COM
mon stock on September 80 and
December 81, 1941, and on March 81
and June 80, 1912. The total amount
of dividends paid all stockholders
was $152,01236 and we carried to
earned surplus $51 1,00742.
THE balance sheet at July 81
1912, shows current assets at $1,911,-
467.46 and current liabilities at
s913,637.79, or net working capital
of 81, ,00S, ,829. .67.
I'm 1899, our first year of cor
porate operation, we laid out q pro-
gram for improving, remodehng
and refurnishing our entire store
This program is now, In the main
complete and we have one of the
finest equipped stores in the coun-
try. We feel that the changes that
have been made have contributed to
the substantial increase in sales and
profits.
"On August II we opened our
suburban unit, Garfinckel's Spring
Valley in the northwest section Of
Washington"
Phone Stations at New Peak.
| Two new records were registered
by the Chesapeake & Potomac Tele-
phone Co. in August, the number
of telephones in service being the
highest ever known and the average
number of daily calls the highest or
record for that particular month
telephone officials announced today
Telephones installed during th'
month reached the all-time higf
mark of 350,448, compared witt
301,211 in August, 1941, and gair
of 1892 during the month. tn
only phones now being installed ar
those considered necessary to tn
war effort, this accounting for tn
letdown in new stations compared
with records made earlier in tn
year.
Average calls per day in Angus
numbered l,438678, compared will
$685. ,693 in the same month a yea
ago. While lower than in othe
months this year, daily calls wer'
far ahead of any previous August
Business was held back by the Gov
ernments's request that patron
make only necessary calls in orde
not to interfere with war activities
Bank Starts Final Payments.
I Justus S. Wardell, receiver for tn
former District National Bank
started payments today OF the flna
dividend of $703, ,52542 to 1885,
claimants. This is a dividend o
Is per cent.
| AS IS per cent has already beer
distributed, this dividend means tn
returns of 100 per cent OF thei
deposits to the patrons. In add
ton, the receiver is paying 2.98 pc
cent interest, so that depositors ar
getting 1928 per cent return.
When the distribution Is com
pleted the District National vii
have paid back $4,047, ,92l,47. Re
ceiver Wardell has reason to be yer
proud of the results. 1t is one o
the best receivership records mad'
by any of the banks which wer
not allowed by the Treasury to opel
after the bank holiday.
Patrons are being notified OF
postal cards when to apply for thel
checks at the I street office. Thi
is to prevent too much of rus
for the limited staff. Uncalled-fo
checks will be forwarded to the oftlc
of the controller of the currency.