Evening journal., 1918-03-02
lContInned From FIrsl 30. }

military powder were much higher
were ss2.0is.0i9 90 The report says.
However. cur low rate Of profit Is
part explanation OF the fact that E. /.
dupont de Nemours and COMPANY IS
tho one corporation in the United
States able to offer rs products to the
Government at prices substantially
lower than those Of pre-war times.
oven though the cost Of raw materials
has increased much more than 100 per
cent.
OF the earnings for the year s3e.5O0.-
600 OF so per cent, Is credited 10 saw
ings resulting from lmnroyed methods
of manufacture Of military powder.
Very substantial progress. the report
says, has been made IN the develop-
ment OF The Industries that must even
tually furnish a substitute for the
military business which the company
now has on IFS books The manufac-
ture and sale OF Fabrikold, pyralin,
LacQuers, Solvents and a variety Of
chemicals have all developed and be-
come a part OF current business.
The purchase OF the Harrison Broth
ers and other paint and chemical com
panies is reported as a valuable line
Of industry which Is already success
ful and promise greater reward.
The companys entry into the dye
business Is rcFsrded as OF the greatest
imnortance and is noted with this
comment and Definite promise;
"a number OF important dyes are
slreadv on our list Of products and the
manufacture OF INDIGO and other valu-
able dves has been started on COM
mercisl scale 70 Is expected that sub
stantial quantities OF these products
will have been turned ont before The
stockholders meeting. This business Is
closely allied to that OF the manufac-
ture OF explosives and VIII therefore
substitute IN a substantial manner the
loss OF our military business"
The report SAYS that tho recent ao-
QUESTION Of a large interest IN the
General Motors Corporation and the
Chevrolet Motor Company opens no q
new line OF activity OF greei promise
FOR the motor comnanies are very
la~re consumers OF the Fabrlkoid. Py-
rslln. paints and vsrnishes manufao-
tured BY the dupont COMPANY
Purchases OF nitrate lands In Chile
have been made to such on extent thai
ut Is expected that the Company viii
soon be IN position to produce an OF
the nitrstes used by It IN norma
times"
The recent announcement that thl
duPonts have found a great source o
potash surrlv IN Chile and have givei
the world the benent OF this discover,
Is spoFen OF and It Is announced tha
"the quantity elaborated this year hal
about equaIled the amount necessar!
for the company's normal require
ments."
All Of these industries. the repor
suggests. warrant the continued eXpec
tst'on that the IS per cent. dividenl
declared last year can be ma'ntaine
under normal conditions after the wal
The report OF Pierre S. dupont, pres
ident. Is as follows;
"The continuation OF the Europea
War has made 10 necessary 70 conn
as more o. less permanent the larg
volume Of business developed by (.
dupont de Nemours and Compan
since the year 1914. Though militar
powder orders will undoubtedly de
crease az a no-distant date, the dlrec
tors believe that the company ha
EnAunAlrlE4 a. NuAMlAAE VI UW-lMNNa ~
the future that will prevent return c
the comparatively small transaction
OF the years prior TO 1914.
AZ the beginning OF our militar
powder expansion, continuation Of th
war and Of war orders was a condit!o
of extreme doubt. 70 was, therefore
necessary 10 ask compensation CON
mensurate with a business hazardou
both in manufacture and likelihood q
It's continuation The fact that the per
formance OF our employees under dlfl
cult conditions was extremely salts
factory has entitled the company {
fhe large compensation earned and on
customers amons the warning nation
OF Europe do not begrudre us the rC
ward Of success, but. on the CONTRARY
are grateful for the good service tina
has been rendered them A large pal
OF the profits arising from the mil
tary business OF recent years has bee
reinvested IN the expansion Of tll
company's affairs, so that today's prC
FITS must be measured In compariso
% capital employed, exclusive OF goo
will OF s2i0O0OO00. as AGAINST a tOt
Of s5i 10000 prior 10 1914. 10 othG
words. future success Is 10 be meal
urea NUh ue INtulne NA NNN ANi AiNA ~
vestment Of the stockholders, but d
the much larger capital which Is no
under the control Of the directors. III
profits OF the company which az
shown In the statement attached her
20 represent n return on ompl0yl
capital, excluding good will, Of i6 pl
cent. In figuring This perccniase the
IS Included as employed capital u
cost value Of military powder plan
that have been fully employed durlI
The year, but whose value ,s66iOO 90
has been charged or the books durlI
the years l9i6-i9i7. This return may
compared 10 that Of iih per cen
which was the average earned on ca
ital investment for several years pri
20 the war, OF with 90 per cent, Whit
FOR many years represents the retul
on capital and surplus Of the Nation
Banks Of the nation. However, our 10
rate OF profit Is part explanation OF q
fact that p J. dupont de Nemours al
Company Is the one corporation IN O
United states able 10 offer its produc
10 the Government at prices substan'
ally lower than those Of prev
times, even though the cost Of "a
materials has increased much mo
than 100 per cent.
"As soon as 10 was found that W
orders were likely 10 continue beyol
one year, the several departments
the company endeavOred 20 impr0
manufacturing conditions at the ne
factories. This work has progress