Evening journal., 1916-02-18
CLAIM new DUPONT
STOCK NOT LIABLE
TO TAX As income
(Continued From Page -

Continued From Page 10
stock is not income. taxable or other
wise. and protesting against its in
clusion in the income tax reports.
This statement and protest will bo
sent out in a few days by the du-
Pont Company TO every stockholdor
to be filled i'm by him. II he chooses
and TO be filed with his income tax
report TO the Collector of Internal
Revenue. The statement and protest
which are understood to have beer
prepared by the legal department OF
the dupont Company. read.
In September 1915. the stock
holders OF E. J. DUPONT de Ne
mours Powder Company. a New
Jersey corporation, caused q re-
organization OF the business of
said company to be made. AT that
time the company had outstand-
ing the following stocks and
bonds:
Shares
Common stock. par 800. 294,27i
Preferred stock. par SlOO l6O.6S6
Total ................. 4o4,9ot
4ibeo 8O-year bonds. S14.166,OO0
5fo mortgage bonds. l,230,OOO
Total ............. Sl5,396,O0O
The business had been carried
on for u great many years, and
i'm September. 1915. had as cap
ital and accumulated surplus
employed in the business OF
manufacturing and selling eXplo-
sives over Sl00.000.O0O. The
stockholders. substantially all as
sentlng thereto. organized new
corporation under the laws Of
Delaware. under the name Of b.
J. DUPONT de Nemours and Com
pany, with an authorized capital
OF S240.0O0. 900. divided into .600.-
GOO shares per cent debenture
stock and 100000 shares conf
mon stock. both Of the par value
of 800 each
All the assets and good will Of
the old company were transferred
as an entirety and as going
concern 10 the new company,
October 1. 1915. the new COM
pany assuming all the libilities
of the old company, except capital
stock and funded debt I'm re-
turn therefore. the old company
received Sl.4S4.10O In cash to be
used in the redemption of It's
outstanding per cent mortgage
bonds. S59.6G1,70O par value in
dobonturc stock of the new COM
pany. of which $50. O.23i,60O were
TO be used IN taking up share for
share and dollar for dollar. the
16O.GS6 shares of the preferred
stock of the old company and the
14,l66 1-2 per cent 3O-year
bonds then outstanding against
said old company. and S5S,S54,20O
par value of the common stock ol
b the new company for immediate
distribution among the stockhold'
ors OF the old company.
The personnel of the stockholt
,ol ers. directors and officers of Nh
# new company ON the date of II
f" transfer were the same as that
Of the old company Upon receipt d
the old company of the cash m
stock aforesaid it distributed TO q
stockholders two shares of u
common stock in the new compan
for each one share of common stof
of the old company held by d
4 stockholders respectively The oI
i company also proceeded 10 and ha
nj this date redeemed u cash all il
outstanding per cent. mortgae
bonds. and has by an exchange g
e debcnturc stock therefor taken u
d suhstantiallv all of its outstandn
+. prcferred stock aud all hut ahou
So 100000 of its 4 - per cen
bonds. Since October 1918, II ha
J. transacted mo- business other thn
,f that incidental TO the redemption {
,t its securities as aforesaid, and
now in process of liquidation.
TO- Under the common stock dis
10 tribution aforesaid the undersign
,t ed. n stockholders OF the old CON
,e pany. received in Oct. 1915. nun
NJ ber Of shares Of the common stoc
O. OF the T.. /. DUPONT de NemouT
ar and Company at par. which stoc
so received the undersigned cor
tends is not income. taxable q
otherwise. received by him dui
ing the year 1915 within the pul
view OF the act Of Congress, al
- proved October 3. 1913, an
Y therefore. the undersigned h'
v not included said stock i'm his II
come tax return for said yea
and hereby protests against q
Al. Inclusion OF said stock in his II
~, come tax return for said year.