Evening journal. [volume] (Wilmington, Del.) 1888-1932, 1918-02-25

Of upwards OF S60.OO000o which viii DC
snperfluous for ordinary purposes. Tn
less we can then md new uses for
these plants. they viii then become
valueless. Already The men who 81
successfully mot The recent cNtroordi-
nary emergency quickly and under
standingly selling and developing the
opporlunlty which The war created
are engaged With equal energy and
foresight in working out plans for the
use OF these vast works after the war
II can hardly be 90 the Interest OF the
stockholders that our employees should
b. deprived OF The stimulus Go success
ful cndcavor which he Bonus Plan
Affords
Tho letter TO the stockholders Is fuil
of interesting facts and figures and Il
gives a history Of The bonus plan from
rs Inception. IN 1908, When ihc old
powder company flfst adopiedil Nircd
!. dupont was at That time. aud con
iinucd 40 be until March, 1916. direc-
tor of The company and the plan had
his approval during an this time. For
q long time he was a member OF the
finance committee. and in that capacity.
approved asnumber Of the individual
awards 10 active heads of departments
Wild were also directors, which awards
are now under attack boy him In the
courts.
one particularly interesting part Of
ihc letter shows that he, after having
signed the minutes Of finance com
miitce meeting. wrote TO The board a
month later that the words of those
minutes were incorrect and were moi
those used by him He protested
against the board taking action in line
with tie resolution as 10 appeared On
the minutes over his signature The
resolution embodied provision for pay
ing definite sums aggreg0llng S3,9iSiii
TO certain important employees. His
criticism Of the resolution, as 10 was
signed by him, was that no definite
sum was intended to be recommended.
The bonus plan provided that seven
per cent. or the profits afler paying 9
per cent. on the dcbenture onG . per
cent. on the common stock, should be
distributed among employees. The war
contracts Of 1915 and 1916 brought such
large profits that this seven per cent.
was vastly In excess of what had been
distributed heretofore. For The year
1915 The earnings. after regular divi-
dends had been set aside, were more
than s5sOOOOO0 Of this sum little
more than si.0OO.OO0 was awarded TO
employees. the rest going 10 common
stockholders
For the year 1915 the earnings above
fixed dividends amounted TO more than
Siii.00O00. Of which more Than $1,000
900 was invested in stock awarded as
hontan1 Those ost.orda ...ara s..huF ar,
known as Glass 3" bonuses. There Is
another, known as Glass A. awarded
for conspicuous services. Tho total
cost TO The company OF the stock and
cash distributed during these two years
I'm both classes was sl0Sl6,OiOOl
n Is pointed out in the letter TO the
stockholders that the stock awards
made under The bonus plan do not he
come Immediately the property OF the
employees, u is only after five years
OF continuous service that the stock is
finally delivered To- the beneficiary. he
being credited with one-sixtleih OF il
each month the design being to have
each recipient deeply and continuously
Interested IN working for the greater
success of the company.
IN view Of the fact that the attack OF
the present Management has been con
iinu0us and severe. 10 is expected tina
The coming annual meeting viii Prov
OF unusual interest The bonus award.
for 1917 have been delayed. pending tn,
action 90 be taken at this meeting, thl
letter saying that the directors fee
that before proceeding further with The
execution Of the bonus plan thcy
should know whether 70 stu has the
approval of The stockholders. and II
not. what changes they desire made.
The letter Of President p. :. dupont
TO shareholders is as follows. -
To tho stockholders:
We beg TO call your attention "a
tho following documents enclosed
herewith:
I. Notice OF the Annual Nicotine
OF the stockholders, to be held March
H. 1918.
?. Proposed amendment to IN,
Company's. By-laws referred to in
paragraph 3 OF said notice.
3. Copy of the Company Bonus
Plan as amended October o. 1916
and now IN force.
q Proxy for the stockholders
meeting.
the proposed new bylaw and 10 IN,
paragraphs numbered 3, 4 aud IL
tho Secretary notice OF the snnua
injecting.
The Directors have thought 4, hes
20 submit tho matters referred TO 81
said three paragraphs for the CON
sideration and determination OF IA,
stockholdcrs for tho reason that. al
though the Company's Bonus Plat
was inherited from n. T. dupont a,
Nemours Powder Company Cherein
after referred 10 as the "old" Com
pany") and was adopted by tina
Company as early as 1905. and wa
IN force from the time OF its adop
ton down 10 the time said Compan
ceased business ON October q. 1871,
all with the knowledge and nc
Quiesccncc OF the Company's stock
holders, certain stockholders OF th
present company, who were stock
holders OF the old Company
including Alfred T. DUPONT am
Francis l. DUPONT. who fror
tho time Of tho organization, of bot
Companies until March. 1916, wer
Directors OF both Companies huy
now challenged the Bonus TPlar II
the courts, demanding that Ga
Directors be required 20 pas bac
into The treasury Of the Company on
OF their own pockets all dislribu
tons made hereunder since IA
present Company was formed More
over, fhe time has arrived for muh
ing the 1917 distributions under ia
Bonus Plan, and the directors fee
that before proceedin further wit
It's execution they should lno'
..hnlhnr IN .iIlI Ii. lhn annrnr..I- 4