Evening journal., 1917-02-16
S227 Share Profit
ON hercules STOCK
Remarkable Showing Of
Powder Co. Set Forth by
President Durham
ASSETS SHOW $425
SHARE BOOK VALUE

earned 227 "a per cent. on its common
stock during 1916 is set forth in the
annual statement of r. H. Durham,
made public today. It shows that
the company on a gross business OF
$63, 419, O29 during 1916 had net profits
Of S16,65S,S72, and the amount avail
able for common stock dividends as a
result of the years operations was
S16,2S4.372, OF 227 "a per. cent. on the
common Stock. During the year
ninety-hve per cent. was paid on COM
mon stock. The company has total
assets OF $35,7694O5, equivalent to a
book value of more than S425 share
for the common stock, after writing
OFF the preferred stock.
The balance sheet appended shows
these figures; Permanent Investment
plants and property, Sl2,Sl2, 39ll7; cur
rent assets, $50 9s4 ,Ol452; total. $50,
FOG. 405.69; capital stock, common, vi
10000; preferred, S5,35O,OO0; current
liabilities, S2O37 ,44s.7s; federal taxes
S2375, SOLOS; reserves and contract adj
vances. S4,O7O,629.29; profit and loss
Sl4,Sl2, 1864.
The income statement shows the fol-
lowing for the year;
Gross receipts. S63,419O29.55; net
earnings from all sources, $l6,65S,-
S72.97; paid or set aside for pre-
ferred dividend. $374 500; available
for improvements or for dividends
ON common stock. St62S4. 372.97;
amount available for dividends equiv
alent to annual rate on common stock
of 227.75 per cent; dividends paid
during period on common stock, 95
per cent; net earnings from all
sources equivalent to annual rate on
total investment Of 1884 per cent.
President Durham announces that
the Federal munitions tax will be paid
under protest and will be contested
by the company In the United States
courts President Durham in his re-
port says:
The balance sheet shows the condi-
ton of your company at the close
of its fourth year. While the total
assets and liabilities are approximate
Is the same as at the close OF the
preceding year, there are many
changes in the individual items, and
a comparison or contrast of the fig
ures shown at the close Of 1916 with
the figures for the preceding years
reveals the progress that the company
has made, as well as the difference
between existing conditions and those
prevailing in normal times.
There have been no changes dur
ing this year in the company's issued
or auth orized capital, as the advanc-
ed payments and the earnings from
the special business enjoyed have
supplied SUFFICIENT funds. not only for
the plant extensions required, but to
20 mill
out other financial assistance, the
great increases in raw material, I'm
ished product and In open accounts
There Is a smaller amount in per-
manent investment than at the end of
the preceding year. This is the result
of the policy Of writing down to NOM
inal valuation the special plants con-
structed for the manufacture of mill
tary explosives during the life of the
early and profitable contracts. There
Is q small amount of this special con-
struction work to be written off
against contracts still incomplete SO
that your company's books will show,
at the completion of these contracts,
an increase in permanent investment
account over figures shown at the
end Of 1914 only 20 the extent OF ac-
tua1 permanent improvements which
should contribute toward the increase
of the normal profits obtained from
commercial business.
10 Readjust War Plants.
Included among these plants
especially constructed or purchased
for military business and written off
during the year to q nominal valua-
ton, are the Union powder plant,
purchased during the latter part OF
1915, and plant for the recovery
OF potash, acetone and other values
from seaweed, constructed during the
early part of 1915. Your companys
laboratories are actively engaged in
the work of investigating and devel-
oping means to insure the profitable
operation of both of these plants af-
ter the urgent need of their present
products has passed, the similar eff
forts are also being made to insure
the continued profitable operation Of
the extensions TO our other plants
now engaged in the manufacture Of
military explosives. While there is
every reason TO believe that efforts
along these lines will be, to some
degree. successful there Is no reason
TO suppose that any of these plants
could be probably continued in the
manufacture of military explosives
after the end of the present European
war.
because of their value for nation
al defense, your company will main
tain these plants as long as business
Of any kind can be secured on terms
that will pay the running expenses,
repairs and requirements and a fair
return on the working capital re-
quired, but as operations under these
terms would bring no return on the
value of the plants themselves, it is
necessary to consider the plants as
OF only nominal value until some
means be developed to insure their
profitable operation.
Big Increase in Assets.
'"rhe great increase in the current
assets, as compared with the close Of
the year 1914, before your company
entered into the manufacture Of mill
tary explosives. reveals. to some ex-
tent the manner in which large ex-
tension I'm business absorbs addition
al funds for working capital. as every
ltem under this heading represents
u necessary part OF the conduct Of
this business Even the item in
vestment securities IS principally the
holdings Of Anglo-French bonds, for
which your company subscribed as a
part OF its general plan for the con-
duct OF It's military business.
"As much transformation has been
distributed over the country during
the last few years regarding the tire