Evening Star Newspaper, April 25, 1923, Page 4

00006000000 400006000000 0600000000000 004004 6406000000083 0000 9089000000000 0000080 400000040009 040600000900404¢304000000000600¢00040¢0000000000900000004 3385 8880888000888880888088888808828838880888888888338383333883288383888888328888233833302328280880388083288223s: | | *400 . THE EVENING 'STAR, WASHINGTON; D. 0, WEDNESDAY, APRIL 25 1923. WALL STREET and PIGGLY WIGGLY PRESENT SALES AND EARNINGS 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 re- quirements at the present rate of $1.00 per share quarterly. the gambler that rules.” These earnings should be materially increased by the last quarter of the year, which, should this be the result, will enable us to pay a larger divi- dend by that time. PIGGLY WIGGLY STORES, Inc. Capital Stock—Authorized and Outstanding 200,000 Shares Class “A” Common—No Par Value 50,000 Shares Class “B” Common—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 in all further distribution. Class “A” Common Stock is preferred as to dividends up to $4.00 per share per an- num, 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. . . At the present time, however, Class “A” Stock has due $7.00 per share accrued divi- dends, which must be paid in addition to the regular dividends of $1.00 per share 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 partici- pate. Both of these stocks have the same voting rights per each share. This Company has no bonded debt and no preferred stock, either outstanding or au- thorized. = PIGGLY WIGGLY STORES, INC. Memphis, Tennessee General Balance Sheet December 20, 1922. The first PIGGLY WIGGLY store was established | at Memphis in September, 1916. The next town to have a PIGGLY WIGGLY store was Houston, Texas, in May, 1917, and the next was Lake Charles, La., in December, 1917. It was in 1918 that the.larger development of the PIGGLY WIGGLY system was begun. These var- ious units of stores were established by different com- panies under a regulation contract, so in organizing PIGGLY WIGGLY STORES, INC, it was necessary to purchase outright the several units of stores that composed our first operation in 1920, and to do this we had to purchase leases and the regular PIGGLY WIG- GLY 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. Merchandise ... Accounts receivabl Variety s factory, etc Piggly Wiegly contract rig Autos anl auto trucks $ 307,789.50 3—$ 4,767,011.91 439,351.72 T territory. .. 2.510,797.55 tore building improve- ments, ete ......... 3,586,750.11 Office equipment and improvements .... 68,472.03 Organlzation ex- pense ... 79.036.63—%4,087.0¢ Less depraciation. 578,26, 3,461,786.85 Leaseholds, prepald i s, inter g R 859,008.67 $13,038,856.70 LIABILITIES -...$1,082,591.10 + 94,258.39—% 1.176,849.49 Accounts payable Reserve for federal taxes. Capital Liabliities— Common Stock Class “A” (250,000 shares) . Common Stock (50,000 ehares).. Special surplus @ dends on Class stock Surplus and undivided profits .$9,750,000.00 5,000.00 700,000.00 407,007.31— 10,662,007.21 Even with the handicap of a new organization, made $12,038,856.70 up of the several units of stores thus purchased, we made a good start with a profit, but within six months we had a terrible slump in prices which everybody can remember, and instead of making a profit for the first year we made a loss of over $1,000,000.00 and then bank loans were called and other troubles followed throughout the next year—1921. However, we finally made a profit in the last quarter of that year. ORGANIZATION AND DIRECTORS CLARENCE SAUNDERS i FLETCHER SCOTT R. A. HARRIS ; In Addition to These the Following List Compose Our Board of Directors: CERTIFICATE OF AUDIT Having audited the books of account of the Home Office &nd having examined and tabulated the monthly reports of the op- erating units for the fiscal year ended December 30, 1922, we certify the above statement to be correct after givin to n;(e proposed sale of 50,000 shares of Class “A" Stock. (Signed) E. ¥, LEATHAM & COMPANY, Certified Public Accountants. Memphis, Tennessee, April 8, 1823, effect ‘'ommon Piggly Wiggly Securities Agency, LYNN H. DINKINS, Washington, D. C. Pres., Interstate Trust & Banki N La. A.W.BERDON ", Premdent, Stewart, Comsl G, New onioans 1o PAUL M. DAVIS, Vice President, American National Bank, Nashville, per share, and inclose my ¢heck for $ hereto attached. Chm. Board Federal American Nat'l Bank, Washington, D. C. It is understood and & E. W. BRADFORD ttorney-at-Law, Washington, D. C. JNO. H. WATKINS.......70000 T ..Investment Banker, New York -':‘_.:{-.“:5{:‘2{‘1 b En.o"&'elv':r'y' e general supervision of & Distriet unit. s general supe: of buying and Manager | making of the large eoutracts for i g:-&-a at the principal town of the Zone Districe. Ba & iy ra Merchandise i All the rata amount. e of our Town Units has & Local Man. I[Er'.e:’l;‘!ccmlll to territory boundaries several towns are considered a Zone District, which has h at Mempbis. Mi ‘are answerable te the Dail Weel and S e oo AN pa "’g’;’.'.','.:"" » unit—ail merchandise A4 464 und ‘rprs beat the Tall fotal TOWN. ws vacavsvsvesson resnsssiovsvovososss SBLE o0 sescanees It was a big battle—a terrible one—and to come out victoriously over Wall Street is a good feeling. Prospects are fine for PIGGLY WIGGLY to be here a long time—too big a business—too good a business—too profitable a business to quit just because a bunch of gamblers sold PIGGLY WIGGLY stock “short.” Too many real and worth-while American citizens in thu free country of ours to let it be said in case of PIGGLY WIGGLY “Tis And this advertisement is addressed to that great body of men and women who say, “The gambler shall NOT rule.” Come, let’s be partners together—all on the same basis and at the sameprice. Do it today, for tomorrow you may forget. NEW CAPITAL TO BE ADDED It is now proposed to increase the capital stock of this company to 500,000 shares Class “A’” Common Stock, to be of the same grade and rights with that already outstanding, but with no increase in Class “B” stock. This proposed increase in capital stock is to be voted upon by the stockholders May 1st, 1923. It is the plan of the management to have sold imme- diately after such authorized increase in Class “A” stock 50,000 shares for the purpose of providing the company with sufficient money to liquidate entirely all bank loans and for the further purpose of having sufficient capital to handle with ease and more profit the large volume of busi- ness of the company, and it is intended, as set out below, tll';lt no public offering be made of this new stock of 50,000 shares. There will be noted herein a financial statement of the company which gives effect to the proposed sale of 50,000 shares of Class “A” stock. The 250,000 shares additional Class “A” stock to be authorized is to be held in the treasury subject to sale by the board of directors as may be deemed advisable by them for the need and proper expansion of our business. Same Stock---Special Payment Plan The writer is now offering, as an individual, to sell a limited number of shares of Class “A” Stock already outstanding for the purpose of reinvesting the money so realized in the new shares of stock to be authorized and sold so that there will not be a public offering of the stock at this time. This is exactly the same stock that was listed on the New York and Chicago Stock Exchanges and is part of the stock which was purchased by me through those Exchanges while 1 was protecting the market against the “short sellers,” and the peculiar circumstances which makes it possible for this stock to be sold by the writer at the low price of $55.00 per share on a special payment plan is a rare opportunity to invest in a big business at a price and upon special terms that is not likely to ocur again Washington Loan and Trust Building, Room 714, Phone Main. 9557. Phone Potomac 740. 1 hereby make application for.....c.uu. shares of Class “A” Common Stock of Piggly Wiggly Stores, Inc,, at $55.00 eed that should the amount of stock now being oftered for sale upon this plan be over-subscribed that I will receive my pro Signature e cenicce e snones i oo soss sis sosmsin s st oo se et vesnd Street svescoconcressuirnncsen dosverenar et sessTt st ss Coressn in many years. $20.00 cash per share—balance of $35.00 per share, payable Sept. 1st, 1923, without interest and with payment to the purchaser of the dividends due June 1st and Sept. 1st of $1.00 per share on these dividend dates. The same terms will apply on a purchase of either 1 share, 5 shares or 100 shares. All cash may be paid if desired and the stock delivered at once. Remember this—that no one makes more than a small per cent on an investment if it is made after years of profit record, because then the price is too high, and it’s only because PIGGLY WIGGLY is a new business that the opportunity is so great for a big profit on the present selling price of $55.00 per share for the stock. To get on the ground floor of any big proposition is the opportunity that comes to a few, and then only once in a lifetime—this is timt opportunity for you. Most companies are owned and controlled by the rich stockholders, but in PIGGLY WIGGLY the President of this Company wants the small stockholders in thousands to own and control this Compeny. Let us make PIGGLY WIGGLY independent of the big rich and have it the business of the peopley where its earnings will be distributed to all alike, in- stead of big checks to a select few. There is immensity in such a plan—a great power for good to all in such a purpose. 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 of this expansion was accomplished in the latter half of the year in anticipation of a further increase in our capital stock. Our present plans contemplate the establishment of stores throughout the Eastern territory during the present year Our sales for 1922 amounted to $31,534,312.00 and our total gross income amounted to $5,300492.10, which, after expenses, depreciation and federal taxes, left a net balance of $653,058.50, and a balance for sur- plus and undivided profits of $103,058.50, after the de- duction of dividends on Class “A” stock, which were resumed again effective with June 1st, 1922, of $1.00 per share, payable quarterly, and have been paid regu- larly since that time. The dividend dates are March 1st, June 1st, September 1st and December 1st. 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 under- written by a group of New York bankers before active busi- ness was begun, with the provision that the writer, Clarence Saunders, the President of the Company, would have the HISTORY - OF BUSINESS AND THE RECORD 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 to others of a sub-group of bankers. The writer disposed of every share of his allotment at exact cost to him—and in May, 1922, the writer disposed of the remaining authorized stock of 50,000 shares without any profit to himself for so doing and without any aid from a banking syndicate—the Company receiving the entire pro- ceeds of the sale without any expense. Those who invested in my first venture in the wholesale grocery business and who stayed with me till that business was sold realized more than 150 per cent for the three years their money was in that business. Those who invested with me in PIGGLY WIGGLY COR- PORATION in 1917 have received regularly without inter- ruption since that date 8% dividends annually in that Com- pany, and received dividends in addition on Common Stock which was given as a bonus with the Preferred upon the basis of one share of Common with each share of Preferred and which Common has been selling from $80.00 to $100.00 per share. .. 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 those stocks by fictitious sales made at low prices. There is no trouble about maintaining a legitimate mark- et on a stock of real value, as there is always somebody to buy at the right price if somebody wants to sell at the right price. TO MAKE MONEY, CUT THIS OUT—MAIL TODAY. $il s T September 1st, 1923, I promise to pay to the order of Piggly Wiggly Securities Agency at the Liberty Central Trust Company, St. Louis, Mo., ..... esusessecses JDOLLARS. _ This note is given for the balance due at the rate of $35.00 per share on the purchase of which is at the rate ... shares of Common Stock, Class “A” per share. My cash payment on said stock having amounted to............. of $20.00 per share and the balance of $35.00 per share is to be paid by me b September 1, 1923, and in accordance therewith I have given my note as ..DOLLARS ..) being at the rate of $20.00 per share with the under- standing that the number of shares of stock as herein specified are to be deposited with the Libérty Central Trust Co., St. Louis, Mo,, for delivery to me upon my full payment of this note on the date of same, and should payment be made sooner I am to re- ceive said stock at that time. : It is also understood and agreed that I am to pay no interest on this note and that T am to receive the dividends on this stock, which are payable June 1, 1923 and Septem- ber 1, 1923, unless sale is made of stock by me before the said dividend dates, UT THIS OUT AND MAIL IT; TOWN I osicsboraces cvssvtsprssnossosssese SIZNAtUTE wrecsorascmonsnrecscesionscsocesosonesssesiosesass SEEEL vevecme sote vorsesorssivessscesoccesronerstsecaerssre State..ccoccececns 000094000000 5000009400000400090040000000040000800406904 BT e et d e tea e et e et s R r e e s r s artatetiisseateesssstitsasretsstitaessstssstizssszsestressttssssasssessstaditisstsassisnsstitstissesssessssesssdtiotaiostitatsassesisssaraizizastssttizrssasssatostistsssstiazatasttsatititstsaisstissss