New-York tribune., 1919-03-06
DuPOntPOwder
Company Again
On Peace Basis
Contracts for War Explo-
sives Quickly Cancelled to
Save Unnecessary Expense

Earned b7 per cent in 1918.
Made 40 per cent of Allied explosives
These arc features disclosed in the
annual report of l.. |. du pont de
Ncmours a Go, issued yesterday cover
ing operations Of the worlds greatest
explosive manufacturers during 1913.
Earnings OF 81 per cent ON the S5S.-
eo''@oo OF outstanding common stock
compare with n per cent earned IN
l9l7,
Operation of the factories Of tho
company resulted in the production of
'''oo' NV pounds of military en-
ploslvcs of all kinds furnished to the
united States and the Allied nations.
This output is estimated by the com
rahy at 40 per cent of the amount Of
explosives made throughout tho world
Tor the Allies during the war. The
number of men employed in the Mill
tary factories of the company alone
reached maximum of 47,9ld.
Munition Business Eliminated
"Thc sudden ending of the war in
November" says the report to the
Stockholders, brought about an almost
immediate curtailmcnt Of the activities
OF the company, and the few remaining
weeks OF the year 1913 we're sufficient
to eliminate almost completely all mu-
milton business. The magnitude and
rapldity of this reduction is we'll illus
tratcd IN the shrinkagc in number of
employees at munitions, of whom on
November II there were S5 ,63S engaged
on war orders, while on December 27
Zs,iol only remained on the payrolls.
Oflcers of the company ENCOURAGED
DN n NJ OF N'.- !,
Gel all contracts quickly in order to
save material and labor in producing
unnecessary explosives. 1t also happens
that orders for the year 1918 were
practically completed. Little will be
done on contracts covering the first six
months of 1919, and no profit will be
derived from the uncomplcted portion
'hereof. The contracts cancelled
amounted to about $26O,OO0,000.
FROM 1915 to 1918, the report shows,
the gross capital employed by the pow
@ der manufacturers increased from
$e3,432,0 900 to $30S, 600 In addi-
ton there was distributed to stock
holders $140,9S3,000 in divioends The
gross business amounted to S1,O4a-
10000, including the cost OF con-
structlon work. Construction costing
S220 100000 was done during the war
by the company's own engineering de-
partment, with staff at times number
ing $4,000 men.
The du Pont factories handled dur
ing the war 1,330,000,OOO pounds Of
cotton, or 100000 bales, in the manu-
1acture of explosives. The sulphuric
acids plants produced 2,500,000,000
pounds, requiring 922,0o0,O00 pounds
OF sulphur. Production of nitric acid,
1880 900 pounds, required the
r Of
nitrate of soda Altogether 216,0OO,OOO
gallons of alcohol were handled, of
which $4,000, 600 were Consumed and
the balance recovered for reuse.
The company built Individual dwell
iDgs to house its men to the number
of 10,790, and these, With the ac
ccmpanying hotels, bos osrd.ng houses,
vomen's dormitories and bunk houses,
are capable of housing G5.000 persons.
The military powder factories con-
structed by the du PoHt company and
its subsidiaries cover 3.Q25 acres, or
IA square miles, equal t. twice the
built up area of the city of Whining
ton, Del
Story of Government Plant
The report tells the first inside story
Of the construction and operation for
the government of a military powder
plant near Nashville, Tenn. Ground was
broken on March 8, 1918. BY the time
of the signing of the armistice seven
powder units were in operation and
the eighth and ninth powder units were
about 60 per cent completed. At that
time the entire plant was about SO per
cent finished The report says that
the production of powder at this fac
tory will total about 36,000,000 pounds
at the cessation of operations.
At the signing of the armistice man
ufacture of powder was 13,000,0 900
pounds ahead Of contract requirements.
The estimated cost of the construction
of the plant was $4,000, 900. Under the
contract with the government no profit
was to be paid for construction work,
and owing to cancellation prior to the
completion of manufacture of all pow
der required the total profit of the
company after paying taxation will
probably amount to $l,30O,000 on trans
actions covering SIZE, 1853 500, or l per
cent, according to the report.
Of the war contracts the report says:
"The military sales department of the
company is numerically small organ
ization, whose chief, Colonel Edmund G.
Buckncr, has handled personally the
greater part of the many contracts
under which all military explosives
were produced These contracts called
for the production of 1900 900 900
pounds of standard explosives valued at
81 100000 900 and special explosives
and accessories worth $206,00 ,OOO
The greater part of these contracts
provided for cash advances which at
one time exceeded 100000 900, unse-
cured except by the general credit Of
the company, as shown in its state
ment. No dispute has arisen with re-
spect to any of these munition con-
tracts, nor has it been necessary to
modify their terms after execution.
Taking military cannon powders, by
far the most important in quantity sold
i 1898, 700 900 pounds-it is to be OBJ
served that the average cost to the
United States government and the AL
lies for powder contracted during the
four years, 1915-'18, was 612 per cent
higher than the price fixed by Con-
grcss for several years prior to the
war. The contracts with the United
States government made in the years
1917 and 1918 were at prices 10.7 per
cent lower, and for 1919 16.S per cent
lower than that prevailing before the
war"
To employ its huge amounts of cash
the company has purchased during the
war $297 900, 900 worth of securities.
There remains in the treasury only
$1,705,O00 Of such investments. The
company bought $4,000, 900 of Allied
government securities and subscribed
to Sl57, 100000 of the various offer
ings of the United States government
securities, of which $121 100000 were