Evening journal., 1916-10-14
WAR REVENUE TAX
BILL HITS DUPONT
CO. SIG A SHARE
Explosives Manufacturers to
Pay $1,000, 900; May Come
Out of Next Dividend
COMMON STOCK IS Held
BY 2213 INDIVIDUALS

Stockholders in munition manufac-
turing corporations arc beginning TO
realize that the levy on munition
profits made by the revenue bill re-
Gently passed by Congress is likely
10 interfere seriously with their in
comes from end-of-the-year dividend
disbursements. Corporations are now
busy checking up 10 see just what the
- - per cent retroactive tax on net
profits will mean to their stockhold-
ers and their treasures.
Oficials of y. l. dupont de Nc
mours and Company have completed
computation which shows that the
company will be compelled to draw on
its net profit account TO the amount Of
$4,000 900 TO pay this tax. which is
I'm addition to approximately $1,000 900
required to meet the two per cent
income tax, and there is growing be
lief among the stockholders that this
will cause a decided reduction in the
amount Of the distribution Just before
Christmas.
Tho powder company is among the
nrst OF the victims OF the revenue bill
20 make public its figures in this tax
account and they bear out all Of the
predictions OF hardship on investors
made by those business men who Op-
posed the bill when Congress was
rushing il to final passage during
the last hours before adjournment.
This bill. passed by Congress on
September s. Is retroactive and levies
the tax on business transacted from
I IL L..
late for the burden Of this retroac-
tive provision TO be distributed over
the year. Three dividends had beer
declared before il was written into
the statutes. The profits over the
last few months of the year must
therefore. bear the burden OF this
tax levy. There are 5SS.542 shares
OF the common stock On the basis
OF the profit on the taxable muni-
tion business. known 10 date and es-
timatcd 10 the end OF the year,-a
total in round numbers OF $4,000. 900
this S9500.Q0O will mean a with
holding OF about sic a share from
what might otherwise have been dis
trlbuted.
The stock OF the DUPONT Company
is so widely distributed that this
blow to the hopes OF its holders will
be felt keenly.
The common stock is held by 2.213
individuals.
only 2ss Of these hold more than
100 shares.
Those holding 100 or less number
1925.
Holders OF so or less number 1885.
Holders OF 10 or less number 1.13O.
Many of these small owners are
employees of the company, who have
secured their holdings through
bonus plan. which has been in oper-
alton for a number of years. under
which employees have been awarded
stock for inventions and other con-
Fpicuous services, and others besides
who have purchased the company's
stock out of accumulated savings
The last annual report showed
that Of the S.S40 holders of both COM
mon and debenture stock, that 1.122
or 29 per cent. were employees.
Another point about the retroactive
feature Of the revenue bill. which
materially reduces the amount avail
able for dividends. is that il gave the
munitions manufacturers no oppor-
tunity to adjust their business to
meet the extra burden OF 12 1-2 per
cent Nearly all Of the profits which
are taxed were made on contracts en-
tered into before the tax was thought
or The manufacturers. therefore
had no chance to adjust prices to in
ciude this unexpected addition TO the
cost of production.
Under the revenue bill as II ori-
ginally passed the House, before il
was amended. the DUPONT Company
would have had TO pay about $780,
100000 as war revenue tax, or about
$50 a share.