Evening journal., 1916-07-25

panes filed by G. G. Rheuby and Robert H. Richards counsel
for the Powder Company with the Senate committee
on finance at Washington last night:
The Hercules Powder Company, Delaware corporation
was organized about beginning of the year 1913
to the decree of the the suit of the United
States against DUPONT de Nemours Company and others
Prior to- and for time after the beginning of the
present European War the Hercules Powder Company did not
engage to any extent in the manufacture of military explosives
or anv other of munitions Its business
solely the manufacture of explosives for industrial uses
and sporting purposes
Sometime in the year 1915 the Company began engage
in the business manufacturing military explosives and to do
this obtaining for such explosives enlarged
listing plants and built and acquired plants for this purpose
The great bulk of the military explosives being manutac
tured and which have been manufactured by since
began to engage in this business type of smokeess pow
der "Cordite" This type of powder is used by
Great Britain and by other nation in the world today The
Hercules Powder Company the only manufacturer IN this
country which has made is making Cordlte The crcum-
stances under which Hercules Company engaged in the
manufacture of Cordte most unusual The British Gov
ernmen the only customer first gave the Company order
for comparatively small amount which the Company under
took make at its smOkeless powder plant at Kenv New
Jersey The Company successful in producing Cor
the product satisfactory to the British Gov
that considered the placing of additional and large
with the Hercules Company for this explosive Ace
essential ingredient of "Cordte" The British Gov
eminent manufacture of "Cordte in the large plants
located within territory in the market in this
try purchase of all the available and of
did not desire competitor for the purchase thereof Finally
give the Hercules Powder Company large contracts
for the manufacture of Cord upon the condition that the
Hercules Company should obtain its from
of supply not then commercially known to the
world This presented difficult problem and apparent bar
obtaining of any Of this business The problem
nevertheless by experts the Hercules Com
pany and they eventually presented to the Company plan
which they recommended practicable for the obtaining OF
acone by methods than any then commercially known to
world The Hercules Company hereupon repproached the
only possible for Corde and offered to take con-
upon condition imposed The greatly
prsed nevertheless anxious to buy aceone than
from the known of supply to
buy Cord and this resulted in its imposing the fur
condition that the Hercules Company should to
and deliver from its hitherto unknown Of
supply quantity of agreed price equal to the
quantity of Corde which the purchaser would contract to
purchase Finally upon this basis contracts entered into
for a large quantity of both these commodities
fulfment of these contracts involved the building of
plants development Of and the
of great risk the part of the Company Acetone there
toore produced mainly from the destructive da
ton wood The Hercules Company has devised two hitherto
commercially unknown methods being based fundamental
y upon the for the production of aceone and
the other being based the of ke which reaped
of the Pacific Ocean by specially invented and
constructed floating machinery for that purpose.
Hercules Powder Company has about 14OO ockhold
majority of whom reside in the the States of Delaware
and New Jersey.
The general offices of the Company in Wilmington,
Delaware and its explosive manufacturing plants located
in the States of New Jersey and California
The which the Company has invested in the NUM-
the State of New Jersey about $0O00000
of which amount about S. 100000 invested in plants
The amount which the Company has invested in the NUM-
the State of California about $6OOoOOO Of
which amount about SO 100000 is invested in plants
The number of men employed by the Company in the NUM-
the State of New Jersey between 5000 and
1000.
The number of employed in said business in the
State of California is about 1000
AS example of the extent of the business at this
time it estimated from reliable statistics that, IN THE
STATE OF NEW JERSEY ALONE, there is employed
by all of the manufacturers in the manufacture of military
explosives between $1,000 $4,000 Many other
are employed the States of Virginia California
where
The outstanding capital stock of the Hercules Company
amounts to $130O0OOO of which about 100000
preferred stock and about 100000 The
money which the Company has invested in its munion
business is about $20O00O0O
THE AMOUNT OF MONEY WHICH THE PROPOSED
MUNITION MANUFACTURERS TAX. BY REASON OF
ITS RETROACTIVE CHARACTER, WILL TAKE FROM
THE COMPANY FOR THE YEAR 1916 WILL BE EQUAL
TO ONEFIFTH OF THE ENTIRE CAPITAL WHICH THE
COMPANY HAS INVESTED IN ITS lIUNITION BUSINESS;
WILL BE 500 ON ITS OUTSTANDING COMMON STOCK