Worcester Democrat and the ledger-enterprise. (Pocomoke City, Md.) 1921-1953, 1942-06-05
OF The
A & P COMPANY
FOR FISCAL YEAR

Net earnings of the Great Atlantic
& Pacific Tea Company, for the ifs
cal year ended Feb. %, 1912, were
SIG, ,222 after charges, including
federal income tax of $11,900,000,
John A. Hartford, president, reported
to stockholders today. These earnings
were 8.68 per cent lower than the net
of $18,336,617 after charges includ-
ing federal taxes of $7,100,00O report
ed last year.
While gross sales increased to ST.
378,147,240 from 5,774,056 for
the preceding year, the net earnings
rate declined for the third successive
year to 1.21 per cent, as compared
with 1.64 per cent last year and 1873
per cent in 1910.
"The further decline in the net
earnings rate is directly attributable
to the company policy of using saw
ings achieved through greater operat-
ing efficiency to lower prices to con
sumers, raise wages of employees and
increase returns to farmers and other
suppliers," Mr. Hartford said. In
spite of increased taxes, wages and
returns to growers, the company was
able to effect several reductions in
its gross profit rate during the year
to the point where our customers are
continuing to enjoy the lowest retail
prices in relation to our costs in the
history of the grocery industry"
Attributing the lowering of the
markup to further elimination Of cost
ly handling operations and reduction
of waste and spoilage, Mr.. Hartford
cited as an example an IL per cent
increase over the preceding year in
the direct delivery of food to retail
outlets from packing or processing
plants or rail unload points.
"Thirty per cent of all food distrib-
uted by the company during the year
was handled in this fashion, bypass
ing even our own warehouses;" he
said. "This not only helped narrow
the spread between prices paid pro-
ducers and those charged consumers,
but has helped to relieve the strain
on transportation facilities which are
so vital to the nations war effort"
Mr. Hartford pointed out that the
recently posted federal price ceilings
will not alter the company's policy of
keeping it's markup and retail prices
as low as possible Pointing out that
under the price ceilings food prices
will not be identical in all food stores,
he said the company will continue to
reflect in its retail price structure any
operating economies effected.
Mr. Hartford said the progress the
company has made in increasing the
returns to agriculture is also attrib-
utable to increased efficiency in OPP
Grafton. During 1911, our growers
and shippers of fresh fruits and vege-
tables received 1877 per cent more of
the consumers food dollar than they
did in 1887, and FOG per cent more
than they did in 1940," he said. "An
average of 54.6 cents of every dollar
spent in APP stores for fresh fruits
and vegetables was returned to our
suppliers last year, as compared with
53.5 cents in 1910 and 46.8 cents four
years ago-about eight cents above
the national average for produce mar
keted through all channels"
During the year employees received
wage increases and added compensa-
ton totaling $1O,6OO,0O0 annually,
Hartford reported, making a total Of
$24,9O0,0O0 in annual wage increases
that employees have received since
1888. Company benefits to employees
totaled approximately $17,000,000 last
year, including wage increases, pay
ment of 100000 to former employees
now in the armed services, as well as
company expenditures for vacations,
free insurance, severance pay, sick