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

and arc now actively engaged in the
important work of preparation for the
necessary changes in the business Of
the company for the great factories
for the manufacture or military pow
der may be useless at the end of the
European War and tho officers OF the
company are, therefore. bending their
efforts TO find means of diyerting part
of this ECU pment to other uses With
this end in view. they expect to en-
ploy the S60,O00,000 Of new capital that
was authorized in the reorganization
of the company in October 1915.
The acquisition Of the Arlington
Company, manufacturers OF "Pyralin."
was recorded in the last annual re-
port. Since then the purchase OF a
company manufacturing paints and
chemicals. has been arranged. The de-
velopment of these lines of industry
promises profitable reward and the
continued employment of many Of our
valuable men whose services might
otherwise be lost with the termination
of military demands.
1T is regrettable that the United
States Government has made our
stockholders victims of excessive tax
AAANAAs AMuNl AlAN vi HQA AAA0n "a
and Ammunition Tax Laws. the tax
levied against our company for the
year 1916 alone will result in our
paying TO the United States Govern
mCnt an amount equal TO the entire
profit made on sales of military pow
ders TO the United States Govern
ment by this company and its prede-
cessors since the inception OF the in
LAS nj To
state Il another way, the tax levied
against our company for 1916 under
these laws will aggregate an amount
equal TO 40 per cent Of our entire
net earnings for the year 1912. in
which year we had the largest earn
ings in the history Of the company
prior TO the war.
Curtail Extraordinary Dividends.
During 1916 the directors have con-
tinued the policy of distributing as
dividends the major part of the ma
nual earnings. For 1917 the reduc-
ton in prices of military powders and
the continued extension of large cred
its 70 the purchasers of these pow
ders make it expedient to curtail eX-
traordinary dividend disbursements.
Moreover uncertainty as to Industrial
conditions after the termination Of the
war. make It advisable TO maintain
great financial strength BY this
means the most unexpected financial
storms will be weathered safely and
the company will be in position to
take advantage OF opportunities for
investment that may be presented.
ITO this end the treasurer of the
company has recommended a dividend
that IT is believed can be continued
without interruption after the war
The present market value OF the COM
mon stock seems warranted by the
companys assets and prospective
profits and is in line with the diyi-
dend recommendation.
I'm addition 10 the payment of
per cent. dividends on the debenturf
stock of the company, the following
distribution has been made to the
common stockholders, during the veal
1916: March. "a per cent; June 2
per cent; September 25 per cent; De
cember. 20 per cent; total, 100 pc
per cent
The report shows that the compan,
had 3S4O stockholders in 1915, o
which 1922. or 20 per cent. were en-
ployes OF the company, and in 19l
there We're 1921 stockholders, Of whoI
144S or "a per cent. we're employs
b OF the company.
The consolidated balance sheet Dc