Evening public ledger. [volume] (Philadelphia [Pa.]) 1914-1942, 1917-09-28
DU POINTS MAKE REPLY
TO COAL OPERATORS
"Inaccurate and False impress
sion" Created by Latter's
Statements to u. S.
'ANALYzE THEIR PROFITS
commercial Side Of Business Subordi-
mated to War Work, Rushed
for Emergency

An inaccurate and false impression Is
conveyed IN the statements of the coal oper-
ators to the Federal Government In their APP
peal for action TO bring down the price
of commercial powder used at the mines.
according to officials OF the du Pont Powder
Company.
In their appeal to Dr. Harry \. Garfield.
the national fuel administrator, at Wash
iDgton. the operators associations pointed
out that the Atlas. du Pont and Hercules
Powder Companies showed profits of SS5,-
100000 in 1915 over 1914. an increase in the
country-wide cost Of powder Of from Sl.20
per keg in 1916 to $1sO at present, with an
added advance of twenty cents announced
on September IL
Unless the price is brought down. opera
tors declared in their appeal a decreased
coal production would result and possibly
dangerous labor troubles at the mines
Tables were cited TO bear out their con-
tentions -t
OFFICIAL STATEMENT
In an official statement from the du Pont
Company it Is declared that the increased
profits are due TO the great expansion of
the war business and that there are no facts
10 Justify the assumption that the profits
ot the company were made from sales OF
blasting powder.
The statement follows
These statements would link up all prof
Ns Of this company with the increase in the
cost or commercial powder per lSeg, con-
veying an inaccurate and false impression.
Much OF this company's profits during the
years mentioned was due to the great ex-
pansion in the war business There are no
facts to justify the assumption that all of
the profits OF this company were made from
the sales Of blasting powder TO the mines.
The annual report of the company FOR
The last year discusses in full the great
military sales and makes it plain how
successful that business was. 1t also states
In regard to the commercial end of the
business the following:
The commercial part of the explosives
Industry, temporarily relegated to second
place by the military demands, has con-
tinued to prosper even though somewhat
handicapped by higher prices made neces-
sary by the increased cost of raw materials
and labor
"On examination of the annual report of
the du Pont Powder Company for the years
1914 and 1916, the following is revealed
with respect to their business: The gross
sales in 1914 were S25.179.9i7 and in 1916
were $3lS.S45,64S; the net profits in 1914
were S5.603,153 while in 1916 they were
tS2.107,692. The percentage OF the gross
represented by the net profits for 1914 was
22.2 per cent and for 1916 II was 25S
per cent.
COMPARES PROFITS
ut will be observed that the enormous
Increase in net profits is due to the still
larger increase In gross sales, due to the
large military operations of the country.
It may be of interest to note that the
profits on mining powder in 1914 repre-
scented about 10 per cent of the companys
business, whereas in 1916 these mining
profits represented less than 1 per cent of
the total profits.
''It is quite true that the profit on blast
ing powder sold to the miners by the coal
operators has always been recognized as
part of their legitimate earnings. and that
changed conditions have deprived the opera
tors of this income which they are entitled
TO recoup through their sale of coal until
their contract with the miners permits of
an adjustment of powder prices"