Evening journal. [volume] (Wilmington, Del.) 1888-1932, 1917-02-14

abroad in competition with foreign
manufacturers before the war. Out
Of this price. there has been set aside
an amount which is sufficient to amor
tie the cost of constructing new
plants TO fill such contracts, and con-
sequently it became possible for our
company TO quote lower prices on la
ter contracts. those for 1917 delivery
being closed at prices below the prices
prevailing before the war. Further
more, tho company has been able to
name prices for military powders to
the United States Government within
the limit imposed by law, though
prices of raw materials arc very much
higher than before the war.
1.-THE reduction in prices doubtless
enormously increased our volume Of
sales which in the year 1916 aggrega-
ted S31S, S45, 6S5, which amount is bet
ter apprec ated when compared with
the average sales OF the years 1913
and 1914, which amounted to S25,927.-
AIS, an increase Of 1870 per cent. The
amount OF such sales considered i'm
conjunction with the terms which
were most favorable TO the company
is sufficient indication of how success
fully our Military Sales Department
has handled their work.
"The large cash advances made this
company under the terms Of the con
tracts anticipated the actual financial
needs TO pay for construction and ma
terials so that in has been desirable
TO invest temporarily large sums Of
money. The total amount of such in
vestments in bonds, short time notes,
commercial paper, etc, has aggrega-
ted S149, 1885, S3, which has been ac-
complished without loss TO date-of
this amount S93,557,704 has already
been paid at maturity or sold. The
burden of the management of the fl
nances has fallen upon the Treasurer
of the company and his assistants, TO
all of whom great credit is due for
their masterful work.
1T would be unfair to pass over the
subject of extraordinary military pow
der manufacture without commenting
on the loyalty and industry of the en-
ployes of the company throughout the
entire period From one end of the
line TO the other there has been a
strong and united effort to accomplish
successfully the vast work that now
stands to the everlasting credit Of
those engaged in it, This condition
calls for congratulation to the stock
holders and for highest praise for their
employees.
Operation Of Bonus Plan.
Largely responsible for this stu
alton is the bonus plan OF the com
pany. The success Of this plan in pro-
noting tho welfare OF the company has
been so marked that It is thought Of
sufficient interest to the stockholders
to warrant the enclosure herewith Of
tho explanatory pamphlet which is
distributed among employees.
1.-THE stock required for bonuses is
purchased by the company in the
omen market The bonuses arc paid
usually in common stock of the COM
pany and (employcs who have
contributed in an unusual degree TO
the success Of the company by their
inventions, ability, industry. and 10y
atty. and whom it is deemed desirable
to have interested in the business as
stockholders
"Since the adoption Of the plan in
1905 there has been distributed to the
employees stock which cost about So
600. O0O, but the present value OF which
is over S2SO00,000.
"It will be noted that this plan pro-
vides for two classes of bonuses, VIZ
-"A1 bonuses and "B" bonuses. I'm
der the "B" Bonus Plan, there is avail
abIe for distribution each year sever
per cent. of the earnings of the com
panv after allowing for six per cent
dividend on the debenture stock AM
p Eve per cent. dividend on the com
mon stock.
"The Bonus Plan. together with IN
Stock Subscription Plan, under WhlcI
is offered each year for SUBSCRIPTION !
definite amout usually 1000 to d'UV,
shares) Of debenture stock on hoeral
terms, is largely responsible lot tnt
interest of employees in the STOCK o.
the company. these men have every
cause TO feel their partnership IN inc
affairs of the company and undouoted
Nv this relation has contributed ma
terially to the company's success.
"The amount available for bonus
distribution for the year 1916 is repre-
scented by 1920 shares of common
stock and 14,92S shares of debentur'
stock.
Under the Stock Subscription Plan
1000 shares Of debenture stock have
been offered for subscription in 1917.
"The commercial part OF the explo
sives industry, temporarily relegate
to second place by military demands
has continued to prosper even thougl
somewhat handicapped by higher sell
ing prices made necessary by the in
creased cost of raw materials and la
Dor.
Allied Industries Show Profit
"The allied industries in which =.
. dupont de Nemours & Company is in
terested, such as the manufacture o
. "Fabrikoid," "Pyralin," lacquers, sol
vents, chemicals, and the extraction o
nitrate in Chile have been placed Of
a satisfactory footing and the compan
is now deriving a suitable profit iron
/ all such investments.
: THE laboratories, research and de
8 velopment departments of the com
a pany have been Indispensable in III
r rapid progress OF the past two year