The Penn's Grove record., 1917-02-16
DUPONT PROFITS BIG
industrial Outputs Arranged For
After War Orders Cease

Wilmington, Del, Feb. 13.-The i'm
mense amount of business transacted by
f. L. DUPONT de Memoirs * COMPANY
because OF the European war, and es-
peclally the income of that corporation
IN f9l6. is Indicated in the annual re-
port OF the corporation. which was sent
to its stockholders today. Summarized.
the report shows that the company had
gross receipts of $31S.S45.6S4 rs. of
which the net earnings and adjustments
are given as. $S2.107 .692.55. From this
latter amount dividends of $62, sos. So
were paid and So 9S. S20.55 transfer
red to the surplus account, which at the
end of the year amounted to sos
6 7.037.62.
In addition to telling what was ac-
complished last year the report goes
into the company's plans for the future.
stating that it is not waiting for the
end of the war. but is anticipating it
with a view to turning the greatly ex-
banded munitions plants over to pro-
ductive commercial uses as soon as the
present abnormal demand for their prod
uct ceases. Plans have been perfected
to cope with any financial conditions
that may develop after the war. In this
CbuHtcllOH the FeDOfL says.
For 1917 the reduction in prices of
military powders and the continued ex-
tension of large credits to the purchas-
ers of these powders make it expedient
to curtail extraordinary dividend dis
bursements. Moreover, uncertainty as
to industrial conditions after the ter
mination of the war make it advisable
to maintain great financial strength. BY
this means the most unexpected finan-
cial storms will be weathered safely and
the company will be in position to take
advantage of opportunities for invest
ment that may be presented. To this
end the treasurer has recommended a
dividend that it is believed can be con-
tinued without interruption after the
war;"
NEW USES FOR LABORATORIES.
Aside from financial preparations for
the future plans are being formulated
to meet new conditions by the expan-
sion of the commercial part of the ex-
plosive industry. The allied industries
in which the company is interested nave
been placed on a satisfactory footing
and the company. the report says, is
deriving a suitable profit from all such
Investments.
The laboratories. research and devel-
opment departments of the company.
which have been indispensable in the
rapid progress of the past two years,
now are actively engaged in preparation
for the necessary changes in the bust
ness of the company. The great factor
les for the manufacture of military pow
der may be useless at the end of the
- -1 l.. a.
company are bending their efforts to
find a means of diverting part of this
equipment to other uses.
A section of the report dealing with
the handling of the great war business
of the past two years and the e%ompany's
relation with the United States Govern
ment says:
THE warning nations were unwilling
to place orders extending cover a great
length of time. and therefore our early
contracts were closed at prices approx
imately 25 per cent higher than the
prices at which we sold powder abroad
in competition with foreign manufacture
ers before the war. Out of this price
there has been set aside an amount
which is sufficient to amortiZe the cost
of constructing new plants to fill such
contracts. and consequently it became
possible for our company to quote lower
prices on later contracts, those for 1917
delivery being closed at prices below the
prices prevailing before the war.
LOWER PRICES BRING GREATER
SALES.
Furthermore the company has been
able to name prices for military pow
ders to the United States Government
within the limit imposed by law, though
prices of raw materials are very much
higher than before the war. The reduc-
ton in prices doubtless enormously in
creased our volume of sales, which in the
year 1916 aggregated $31S,S45,6S5,
which amount is better appreciated when
compared with the average sales of the
years 1913 and 1914, which amounted to
$50, 1927. 47S, an increase of 1130 per
cent. The amount of such sales. con-
sidered in conjunction with the terms,
which were most favorable to the COM
pany, is sufficient indication of how sue
cessfully our military sales department
has handled its work"
The financial difficulties involved IN
handling the great volume of rush bust
ness, especially the acquisition of cash
to pay for construction and other ma
terials were met by bonds, short-term
notes and other forms of commercial
paper to the amount of $149,9S .2S3,
CONTINUED on Page Eight
returned to the bidders.