The Lake County times. [volume] (Hammond, Ind.) 1906-1933, 1907-02-12
DID NOT SELL ITS
SMOKELEss SECRETS
Dupont Powder Company Explains It's Relations With
the United States Government

'00 states government, and instead or
opposing the erection Of that plant, the
DUPONT company assisted the officers Of
the United States in every possible
way furnishing them much valuable in
formation IN the way of blue prints
and gave them the result of their ex-
perience in the business, and did every
thing possible TO make this venture a
success from the standpoint of the
government. The same attitude was
assumed by the Dupont company in
regard to the appropriation made by
the last congress for the erection of a
smokeless powder plant. and the COM
pany not only offered to furnish, but
has furnished. the proper departments
Of the United States government with
plans and blue prints to facilitate that
work.
GAL NO TWO DUPONT POWDER co.
There has been some comment in the
papers, and also in congress. in regard
to the relations of the Dupont COM
pany to a smokeless powder plant in
process of erection by the government
of Brazil. This in no way involves any
secret processes or methods which are
employed by the United States, or in
the manufacture OF its powder, the
Dupont company brought its plans
10 the attention of the proper
departments Of the United States gov
eminent, and with the qualifications
above mentioned no objection upon the
part OF the executive departments of
our government was made to the Du
Pont company undertaking the bust
ness.
Not Enormous Profits on business.
In regard to the price which is and
has been charged the government for
smOkeless powder which has been fur
nished by the Dupont companies, 1T has
been stated that this business shows
profit of 100 per cent to the DUPONT
company, and that on account of these
profits that company has been enabled
to sell commercial exprosives az or
below cost to such an extent as to rem
der it impossible for independent com
panies to compete in certain CONNER
cial fields
In this regard it was shown in a
recent hearing before the sub-com-
mittee OF the appropriations committee
of the house Of representative which
has had in charge the matter of fur
Their appropriations for the construc-
ton of smokeless powder plants that
instead of yielding a profit of 100 per
|
Pont companies II per cent profit on
the operations and capital invested and
La profit considerable less than that rea-
liked by 1T in other lines and from the
larger part Of it's commercial business.
All of these facts appear from detailed
statements made before the congress
sional committee which are now on
public recaord.
What Makes Powder
1t must be remembered that there are
peculiar burdens imposed on this bust
lness by it's nature. To say nothing of
the dangers of accident which often
result in very large losses, the govern
mental departments are continually
considering changes in the formula
and in the specifications which they
require to be fulfilled in the furnish
ing of explosives. The result of these
! changes has frequently rendered pow
der already manufactured OF no avail,
and frequently abandonment of expen-
sive machinery which was no longer
available has been necessitated. The
| demands Of the government have been
spasmod1c. requiring large plants which
for long periods at a time are idle
The specifications are very strictly en-
forced and the result is that large
amounts of powder have been I'M
available and have been left on the
hands of the company.
The Dupont company was organized
in 1902 and furnished the United States
government all the powder used in the
war of 1912, and the major part of
that used in 1913, 1915, and 1898. A
careful investigation of the prices
charged by contractors during the last
two wars show that while practically
every other contractor who had been
previously selling munitions of war to
the government. advanced its price, the
dupont company sold at no greater and,
for some kinds of material at q less
price than had before been charged.
The company undertook to manu-
facture Brown Prismatic Powder when
1t was seen that the supply of smoke
less powder was not sufficient. putting
In new machinery based upon the con-
tracts then given. Upon the signing
Of the protocol in July, 1898, and the
demonstration of the absolute unfit
ness of Brown Prismatic powder for
military purposes, the government re-
quested the cancellation Of the IN
filed portions of the contracts which
Dupont company sold at no greater and
out any compensation for the new ma
chinery which then remained on its
hands.