Evening journal., 1918-02-16
annual Report Of
HERCULES EONDER
Did About Same Amot nj j
Business But Profits
Fall Off
TO ADAPT PLANTS TO
PEACE TINE NEEDS

PEACE TINE NEEDS
The annual report OF the Hercules
Powder Company for the year ending
December 81, 1917. has been issued,
and while It shows that the company
did about the same tonnage Of busl-
ness during the past year as du ing
the preceding year, It also shows that
the company's & oss receipts for the
year were several million doll0s less
than during the previous year Ac-
cording 10 the repo t, the & oss re-
ceipts during 1917 amounted TO S44 ,i05,-
o33.4s. as compared with gross receipts
amounting to s63,4i9,O29 So for the
previous year The net earnings from
all sources amounted TO s5S22,4ji IS.
as compared with slG.65s,s12.97, the net
earnings for the year 1916
After S373,500 preferred dividends
there remained balance Of s5,4i7,952
available for the s7,i5O000 common
stock, which was equal to SIC 10 o
share. against 1927 IS a share the pre-
ceding year. During the year 70 per
cent. was paid in dividends on the
common stock.
In the course Of his annual report
the president, r. H. Durham, says:
Your company completed during
the year all contracts on which It had
received advance payments ana Con-
tract Advances no longer appears
among the liabilities As the dividends
"a In dfe
during the year the companys net
wo IN at the end OF 1917 is substan-
TALLY the same as at the end Of the
preceding year.
There has been no change during
this year In the company's issued or
authorized capital and no additional
issues are now in prospect, as in the
opinion OF its directors your company
Is sufficiently supplied with working
capital 10 carry N ough the enlarged
volume OF business that will probably
continue until the end Of the war
Further extensions to military plants
In view OF their temporary value and
the very narrow margin Of profit are
possible only when the Government
supplies the necessary funds
'"As explained In notice sent TO stock
holders on March 6. 1871 there is
something over s9,000000, or about SIPS
per share now invested in working
capital which VIII be required while
the increased mil t9ry business con-
tlnues, after which this sum win be
available either for distribution to the
common stockholders, or to enable the
company to extend its business, If the
oppo tunity appears, and TO pass with
ease through the period Of realiust-
ment that must necessarily follow the
close OF the war. II is probable that
quarterly disbursements Of per cent.
can be continued until that time.
''The flve-year period during which
your company was pc mtted, by or
der OF The Federal Court, to- use, in
connection with its commercial busi-
ness, certain facilities OF the L. /
dupont de Nemours and Company, has
passed, and your company Organiza-
ton has been enlarged to the degree
required to enable Il to take care Of
all development and research work re-
lating to its commercial business, as
il has throughout the period that il
has been manufacturing military eX-
plosives, cared for all Development and
research work relating TO that branch
of the business.
''Your company's organization is OF
the highest quality and has shown it.
self exceptionally capable Of handling
all problems that have been presented
to IT, Since our country entered the
War your company has tried to meet
very requirement that has been plac-
ed upon It, and to constitute Itself an
arm Of the Government for the active
prosecution Of the war. The develop
ment Of new undei takings has been
so rapid however, that tremendous
bu' dens have been thrown upon it and
your company has been forced to pro
ceed cautiously with further exten-
slons, 10 avoid any possibility Of over
loading the organization with con-
sequent loss Of efficiency in the im-
portant work already undertaken
There is probably no indust y and
within an industry probably no single
corporation more exclusively engaged
than your company in the production
Of materials used directly or indirectly
IN the conduct Of the war Not only
is your company manufacturing m H.
tarl explosives, but all az its COM
mercial explosives are used m coal and
metal mining. or in some other way
directly related TO the production Of
absolutely essential materials.
Your companys laboratories con-
tinue activity engaged in their enc IS
TO develop a means Of pc manently
employing the plants erected partcu-
Ia ly for military business, after the
need for their present products has
passed. II IS Of course, improbable
that any substantial new business for
these plants will be developed while
they are still engaged In the manu-
facture Of military explosives, but
there appeal to be excellent prospects
for the establishment Of permanent
business to prohtably employ some
part Of this equipment and to develop
means Of pc mapontly employing
some part Of the working capital now
used in the military branch Of your
company's business.
The several plans inaugu"ated at
the time Of the company's o ganizat'on
for the recognition OF unusual merit
and loyalty and for the pensionng Of
employees Who have been long in the
service have been continued In add
ton to wage and sala-y Increases that
have been made at the several plarts