Evening Star Newspaper, April 20, 1923, Page 4

'rq THE EVENING STAR, WASHINGTON, D. C, FRIDAY, APRIL 20, 1923. —_—— PIGGLY WIGGLY STORES, 7220 Capital Stock—Authorized and Outstanding 200,000 Shares Class “A” Comman—no Par Value 50,000 Shares Class “B” Commown—no Par Value The Class “A” Stock is preferred as to assets up to $50.00 per share in the event of liquidation, after which Class “B” would be entitled to $50.00 per share, and then both would share equally per share in all further distribution. / Present Sales and Earnings WALL STREET HAS MORE TRICKS Listen to This: “PIGGLY WIGGLY IS WEAK AND SELLS AT $44.00 PER SHARE” “Piggly Wiggly is very weak, and sales are being made over the counter in New York for $44.00 per share. This quotation is only 80 points below the high made just before the stock was suspended from the big board in Wall Street.” Our January sales of the present year amounted to $3,579,273.12, February sales to $3,615,889.39, and March sales to $4,425,173.43, which makes a total for our first quarter of the present year amounting to $11,620,335.94, and against which we realized net profits of $329,700.29 exceeding more than 50% our dividend requirements at the present rate of $1.00 per share quarterly. Class “A” Common Stock is preferred as to dividents up to $4 per share per annum, after which Class “B” is entitled to $4.00 per share, and then all dividends in excess of the $4.00 per share are distributable equally share and share alike on both classes of stock. “The information regarding the weakened con. dition of Piggly Wiggly was received in a night let. ter this morning from the Investment Securities Com- pany of New York City. This letter also stated that the price of $44.00 was two points above the quotation Saturday.” At the present time, however, Class “A” Stock has due it $7.00 per share accrued dividends, which must be paid in addition to the regular dividend of $1.00 per each quarter before Class “B” will be entitled to receive any dividends—and this means, too, that Class “A,” with the accrued dividends of $7.00 per share would be entitled in case of liquidation at the present time to $57.00 per share before Class “B” would participate. The above is quoted from a boxed-In feature played up on the front page of some newspapers, and likely some more such “dope” will trickle out of Wall Street, either as having originated there, there will be the “axked” and “bid” price quotations mingly legitimate at ridiculous These earnings should be materially increased by the last quarter of the vear, which, should this be theresult, will enable us to pay a larger dividend by that time. CAPITALIZATION RECORD Both of these stocks have the same voting rights per each share. This Company has no bonded debt and no preferred stock, cither outstanding or authorized. PROPOSAL FOR ;LY WIGGLY STORES, INC. MEMPHIS, TENNESSEE NEW CAPITAL ¢ the capital stock of this It is now proposed to incr Tass “A” Common Stock to be Company to 500,000 shares Cla of the same g th that already outstanding, but with no increase in Class “B” Stock. This proposed incre in Capital Stock is to be voted upon by the stockholders May 1st, 1923. It is the plan of the management to have sold immedi- ately after such authorized increase in Class Stock 50,000 s for the purpose of providing the Company with suffi- cient money to liquidate entirely all bank Joans and for the further purpose of having sufficient capital to handle with case and more profit the large volume of business of the Company. There will be noted herein a financia Comupany which gives effect to the proposed shares ot Class “A™ Stock. e 25 additional Class *.\" Stock to be au- thorized in the treasury subject to sale by the Roand of Dircctors as may be deemed advisable by them for ion of our business. WX shares of Class ™ reinvesting the n v to be authorized and of that stock sell at $55.00 per and the balance yment to the pur- and September Ist of SLO0 per rt of the stock which I purchased change while I was protecting the llers. cording to the writer’s judgment. such nd profitable investment in a company is supreme against all other con- ement of the ale of 30,000 Septembar 1st. 1923, wit chaser of 2he dividends du hare each dividend dat 1 the New Y an opportunity for a safe where the stockholders’ interes siderations. General Balance Sheet December 30, 1922 cauipu Organtzation expense Less depreciation. Teaseholds, prepai inturance, taxes, interest, ete LIABILITIES e $1.082.501 10 i0.000 shares) . 0% whares) . dividends K B 1 s of account of the Home Office and havin onthly” Teports of the operating units for the a statement 1 res of Cla (Signed) E. F. LEATHEM & COMPANY, ki, Basiine, atit ¥ N Certified Public Accountants This Company was chartered under the laws of Virginia in November, 1919, but did not begin active business until January 1st, 1920. 150,000 shares of the original issue of stock were underwritten by a group of New York bankers at $39.00 per share before active business was begun, with the provision that the writer, Clarence Saunders, the President of the Company, would have the privilege of disposing of one-half of the underwriting in the acquirement of stores and for cash. The banking syndicate sold the stock they handled at $43.00 per share to others of a sub-group of bankers, with an option on an equal number of shares at $47.00 per share. The writer disposed of every share of his allotment at exact cost to him of $39.00 per share, and in May, 1922, the writer dis- posed of the remaining authorized stock of 50,000 shares at $43.00 per share without any profit to himself for so doing and without any aid from a banking syndicate—the Company receiving the entire proceeds of the sale without any expense. Naturally, the banking fraternity of Wall Street does not like this way of doing, so that is the main reason PIGGLY WIGGLY stock was sold “short” at the time the proposal was made in Novem- ber, 1922, that the stock of this Company be increased so as to pro- vide the necessary working capital for the growth of the business— no underwriting syndicate was going to make money off the stock- holders was the rcal trouble—and, of course, now the brokers and bankers will tell their customers to let PIGGLY WIGGLY stock alone. Why? Because the President of the Company is considered a radical and is hard-headed and won't let the bankers and brokers make all the money they would like to make out of PIGGLY WIGGLY. These references are meant only for that type which the description fits, as the -writer has many good and substantial friends among the worth-while bankers. But if the record of the President of Piggly Wiggly Stores, Inc., is put side by side with these said brokers and bankers, it will be found that no man has yet lost a nicket in holding on to an investment made in any company of which he has been the hea And not only this, but every one has made a big profit, whereas many and many are the investments recommended by the critici ing brokers and bankers that have lost money in small amounts large. Those who invested in my first venture in the wholesale grocery business and who stayed with me till that business was sold real- ized more than 150% for the three years their money was in that husiness. Those who invested with me in Piggly Wiggly Corporation in 1917 have received regularly, without interruption since that datc, 8% dividends annually on each share of Preferred Stock purchased in that Company, and received dividends in addition on Common Stock which was give as a bonus with the Preferred upon the basi of one share of Common with each share of Preferred, and which Common, before all the “bear raids” started on Class “A” Stock, had sold as high as $110.00 per share, and which has since been selling between $80.00 and $90.00 per share. And if space permitted it would be very interesting to trace the record of those who have made a big profit on Class “A” Stock up to this time. And yet neither the wholesale grocery stock referred to or the Piggly Wiggly Corporation Stock was listed on the New York Stock Exchange, and every stockholder was that much better off because the Wall Street gambler could not get by with his “short” selling tricks to ruin these stocks by fictitious sales made at low prices. There is no trouble about maintaining a legitimate market on a stock of real value, as there is always scmebody to buy body wants to sell. HISTORY OF BUSINESS The first PIGGLY WIGGLY store was established at M n September 1916. The next town to have a PIGGLY WIGGLY store was Houston, Texas, i May, 1917, and the next was Lake Charles, La., in December, 1917 FUTURE EXPANSION PROGRAM present year, and, based upon the profit record of the Variety Stores already operating, we can safely count on a net profit from these 25 stores of at least $1,000,000.00 per year, and, of course, these 25 stores can be increased to 1,000 or more as our business develops, as this Company has the exclusive PIGGLY WIGGLY contract rights for the entire United States. We now have 667 Piggly Wiggly Grocery Stores operating and 7 Piggly Wiggly Variety Stores—the Variety Stores are located in Chicago, Memphis, Terre Haute, Norfolk, Chat- tanooga, Nashville and San Antonio. We have leases either signed or in negotiation that will’ give us 25 of these stores doing business by October of the It was in 1918 that the larger development of the PIGGLY WIGGLY system ts of stores were established by different com panies under a regulation co: ct, so in organizing PIGGLY WIGGLY STORES, INC., it was necessary to purchasc outright the several units of stores that com- posed our first operation in 1920, and to do this we had to purchase leases and the regular PIGGLY WIGGLY contract as well as the Store Equipment and Mer- chandise, and while the first two mentioned items may at first glance appear high in our statement they could easily be sold at this time for at least double the amount shown as the book value for these items. was begun. These various u Our other stores are located in these 62 towns: Chicago, | Dayton, Ohto. vee 12 | Helena, Ark . Decatur, . Denver, Colo. 94; Memphis, 52; St. Louis, 49; Washington, D. C., 36 Minneapolis, Minn 14 Roeck Island, 11 3 | Saginaw, Mich.. 1 | San Amtonio, Tex: ! 3 | 13 Sloux City, I Kansas City, Mo. 1 N 2 - | Kansas City, Kan N 2 ¥Knoxville, Tenn. Lansing, Mich. Limn, Ohio. | Little Rocl Macon, G Milwaukee, Even with the handicap of a new organization made up of the several units of stores thus purchased we made a good start with a profit, but thin six months we had the terrible slump in prices which everybody can remember, and instcad of making a profit for the first year we made a loss of over $1.000,000 and then bank loans werc called and other troubles followed through the next year—1921. However, we finally made a profit in the last quarter of that year. » (U101 PRV L, Win. Blytheville, Ark Cedar Rapids, In Chattanooga, Cineinnati, Ohio. Columbux,” Ohio il Blum, o Pex 2EuliSaarumn - afanliaa P At the beginning of 1922 we had operating 331 stores and at the close of business December 31st this number had been increased to 663 stores, and in ad- dition thereto we had established five Variety Stores, new Bakeries, a Candy Factory and other necessary additions to our business. The major portion oi this expansion was accomplished in the latter hali of the year in anticipation of a further increase in our capital stock, | | | | There are other companies operating PIGGLY WIGGLY stores with a total of over 600 stores and the combined sales of these stores for March with those of PIGGLY WIGGLY STORES, INC,, totaled $8,318,355.30, which is at the annual rate of $100,000,000.00. ) It is proposed by the management of PIGGLY WIGGLY STORES, INC,, to purchase as many of these separate units of stores as possible so as to bring together in this Company the full power of the added organization and sales and,too, we can add materially to the number of stores now being operated by us in most all of the towns that belong to our Company organization which will enhance our profits con- siderably because of larger sales to be realized and a corresponding reduction to be had in overhead expenses. The largest development yet to be attained will be in our Company estab- lishing and operating stores throughout the New England States, in New~ York, Pennsylvania and New Jersey, and it is the plan of the management to do this during the present year, as we have acquired the exclusive territory rights for PIGGLY WIGGLY Stores in those States where these stores arc not already operating. 22777, Z It is well known to all as to the reason that intervened which prevented the new capital irom being added. Our sales for 1922 amounted to $31,534,312.00, and our total gross income amounted to $5,300,492.10, which after expenses, depreciation and federal taxes left a net balance of $633,058.50, and a balance for surplus and undivided profits of $103,058.50 after the deduction for dividends on Class “A” stock, which were resumed again cffective with June 1st, 1922, of $1.00 per share, payable quarterly, and have been paid regularly since that time. The dividend dates are March 1st, June 1st, September 1st and December 1st. E Looking into the future and taking the record already made by PIGGLY WIGGLY Stores which is now in the $100,000,00000 class in sales and accom- plished within five years against manifold obstacles there is scarcely any doubt as to this business leading the nation in any similar line within just a few more years. Is there such a record anywhere else? Ask the “croaker” this question. 77777 % % 722 ORGANIZATION and DIRECTORS CLARENCE SAUNDE FLETCHER SCOTT R. A. HARRIS.. BRI o v 4 mpsnsmmsminsinsmmnvbiiiBnsehwes Date. eee ...President e President ...Secretary and Treasurer September 1st, 1923, I promise to pay to the order of Clarence Saunders at the Liberty Central Trust Company, St. Louis, Mo. Mr. Clarence Saunders, In addition to these the following list composes our Piggly Wiggly Stores, Inc. Board of Directors: .Pres., Interstate Trust & Banking Co., New Orleans, La. ..President, Stewart, Carnal Co.,, New Orleans, La. Vice President, American National Bank, Nashville, Tenn. of Caldwell & Co., Nashville, Tenn, President, Central Clgar & Tobacco Co., Memphis, Tenn. T R DOLLARS Memphis, Tenn. This note is given for the balance due at the rate of $35.00 per share on the purchase of..eceresccoveise cosse 5 shares of Common Stock, Clas: of Piggly Wiggly Stores, Inc., at $55.00 per share. My cash payment on said stock having amounted to. .e....DOLLARS I hereby make application for...... shares of Class “A” Common Stock of Piggly Wiggly Stores, Inc., at ROGERS CALDWELL. cee R R. L. JORDAN. JAS. L. McREE 2772222222227 . 77 v 72227 Z zzz7% 7770 W Wi E. A, BASSE. GEO. B. WEAR! C. S. WYATT.. W. T. GALLIHE! E. W. BRADFORD. JNO. H. WATKINS. .. Every one of our Town Units has a Local Manager, and according to terri- tory boundarics several towns are con- sidered & Zone District, which has the general supervision of a District Man- ager located at the principal town of the Zone District. AIl of the District Managers are answerable to the General Office at Memphis. Bookkeeping and Sales Records are Kept locally with each town unjt—all merchandise being shipped direct from producer or manufacturer to each town for the supply of the local unit of stores, so that this really keeps each town unit on a separate and independ- ent basis of operation, except there is the added strength of a large organi- zatoin doing the same thing at many Chm. Board Federal American Nat'l Bank, Washington, D, C. ..Lawyer, Memphis, Tenn. -Distriét Manager, San Antonio, Texas -District Manager, St. Louis, Mo, strict Manager, Chicago, Illinols Attorney at Law, Washington, D, C. ««+.Investment Banker, New York towns and with the buying facilities for making large contracts for -mer- chandise for the use of every town unit. This general supervision of buy- ing and the making of the'large con- tracts for merchandise 1{s _handled through the General Office .t Memphis. Dally, Weekly and Monthly reports are made in detall to the General Of- fice by every town unit, and by each Zone District, and these various ve- ports are consolldated and represent the full total of our business. Thus we have a large business in total with all the benefits of a large organization yet simplified and made comparatively easy in handling through the’system, - as far as feasible and profitable, of local management of each town. unit. Signature $55.00 per share, and enclose m); check for $.....cv0veuvee..which is at the rate of $20.00 per share, and the balance of $35.00 per share is to be paid by me September 1, 1923, and in accordance therewith I have given my note as hereto attached. It is also understood and agreed that should the amount of stock now offered for sale upon this plan be oversubscribed that I will re- ceive my pro rata amount. ©t000000000000000 0009 e It IITEROICC ROl Street weesecccecsseccccsesscsroscsscscnamessesiocs seseshnisomus SO oo s ($.0e-c0secaneess), being at the rate of $20.00 per share, with the understand- ing that the number of shares of stock as herein specified are to be deposited with the Liberty Central Trust Co., St. Louis, Mo., for delivery to me upon my full payment of this note on the due date of same, and should payment be made sooner I am to receive said stock at that time. It is also understood and agreed that I am to pay no interest on this note and that I am to receive the dividends on this stock, which are payable June 1st, 1923, and September 1st, 1923, unless sale is made of stock by me before the said dividend dates, CUT THIS OUT AND MAIL IT Signature ...... Street EOWH s eissiamisivnismmemnt G SHE o it e sessssssrecsssecsncnccncenennanse D R L R L) 72 0