Evening star., 1943-09-21

partment store - = =
as vice president C. G. Sheffield.
since 1889, the same year tina
Julius Garfinckel & Co. was incor
porated. Mr.. Schmid, who is relin
gushing the duties of president, ha
been with the organization for man
years and has rendered brillian
service. Both men have seen tn
concern make exceptional strides il
business expansion.
At the same meeting, Raymond A
Lee was elected controller of tn,
company. also newly posi-
tion, All other officers were re
elected, including Miss Elizabeth
Fairall, vice president; Gordon A
O'Neill, vice president; Jennings A
Snider, secretary and treasurer
and Irene w. Streeter, assistan
treasurer.
New Stock Proposal Approved.
Stockholders approved proposed
issuance and sale of $4,000 shares O.
5hTo $25 par value preferred stocl
and 1890 shares of 81 par valu'
common stock.
According to registration papers
recently filed for SEC approval
proceeds would be used to redeem
the present cumulative convertible
So preferred stock on october al
$3.50 a share plus accrued divi.
dends. Any additional proceed!
would be added to working capital
Richard P. Dunn and Mr.. Schef.
field was reelected to the board o.
directors for three-year terms. Priol
to the election of officers, Mr.
Schmid as president made his an.
nual report to the stockholders show.
ing earnings on the common stock
equal to $2.20 share against SIG
per share on the common a veal
ago, and disclosing an increase ir
sales of 48 per cent during the year
Credit Buying Cut Sharply.
One of the most important econ.
omic developments in the Fifth Re.
serve District in the last year has
been the marked reduction in credit
buying of consumer goods, the Rich
mond Reserve Banks September re-
view declares.
Although Regulation w has been
important in regulating installment
credit, the chief causes for the lat
ter's decline are the virtual disap-
pearance from the markets of dur
able goods which were generally
bought on the installment plan, and
the increase OF cash income which
lessened the need for dit-buying.
Increased down payments required
under the May % amendment to
Regulation w proved a real deter
rent on installment buying, custo
mers apparents giving more atten-
ton to the fist payment than to the
amount of future payments or the
length of time over which they are
spread.
Change In Buying Habits.
Partly due TO restrictions on credit,
but probably more directly to in
creased cash incomes, buying habits
Of consumers have changed materi-
ally in two years.
In April, 1912, cash sales made up
43 per cent of the total sales in Fifth
District department stores but in
May this figure rose to 48 per cent
went to 81 per cent in June and
July, when the amendment went
into effect and many charge ac-
counts, were frozen for the moment
climbed to SIS per cent. Since then
through June, 1943, the figure has
f1uctuated between 81 and SO per
cent.
Meanwhile, the proportion of open
charge accounts sales and of INSTALL
ment sales to total sales declined
substantially, open charge accounts
dropping from Is per cent of total
sales in April, 1912. to 38 per cent in
June, l943, and installment sales de-
clining from IL per cent to 3 per
cent during the same period
In dollar amount of credit out
standing, receivables on open charge
accounts in leading department
stores in June, 1943, were 50 pei
cent under June, 1912, and install
ment receivables declined 48 per cent
during the same period, despite in
creases in total sales, the survey
states.
In addition to declines in con-
sumer credit extended by depart
ment and furniture stores, all other
sources from which credit flows tc
consumers show the same contrac-
ton trend, the greatest decline being
in the automobile industry, followed
by household appliances.
Marx Represents Controllers.
Raymond G. Marx, controller OF
the Riggs National Bank, will rep
resent the bank controllers of the
Fifth Reserve District at the annua.
meeting of the National A.ssocia tion
of Bank Auditors and Controllers
which opens in Detroit Thursday
He is the national committeeman
for this district.
Mr.. Marx is a member Of the Or
ganization. policy and other COM
mittees of the national association
and will present his report as chair
man of the committee on co-opera
tion with regulatory departments OF
the Federal Government.
Many war problems will grip the
attention of the delegates. officers
will be elected, Hugh E. Powers Of
Louisville being slated to succeed
Ottmar A. Waldow, Detroit, as pres
ident.
Today's Trading on Exchange.
Capital Transit stock was strone
on the Washington Exchange today
80 shares selling ex-dividend at 81.
Washington Gas Light common
was again in demand and wa.
strong, go and Is share lots movinf
at 22A.
Yesterdays 1000 ,O00-share day or
the New York Stock Exchange re.
vived market interest and attend.
ance in the boardrooms today
There were 81 new highs for tn.
year yesterday.
After careful consideration ant
many suggestions, the new pape
published by the employees of tn,
Second National Bank has bee,
named Second Thoughts.