Evening journal., 1919-03-10
DUNHAM
TELLS OF PROSPEROUS
YEAROF HERCULES co.

cules Powder Company, TO-DAY trans
mitted TO the stockholders OF that com
pany his annual report, covering the war
limo activities of the corporation. Mr.
nnnham emphasizes that the company
i devotinc itself 10 development ol
neace-iime production. and VIII CON
'hict exhaustive experiments loohihs
toward that end ,,,
Tho financial statement Is very krd',-
e,.inc and shows earning Of p per cent.
~ tbe common stock for the year, ana
,.,,rrent assets of 500. .60O.1l6, including a
nc cash account and Liberty Bonds
President nunhams report SAYS
..rhe balance sheet shows the cohul-
ton III vonr company at the close oi
i.s sixfh wear. The total assets as COM
nared with last year are Increased 10
sbe extent OF the remainder Of advance
nax1neut on the Nitro contract. tne het
addition 10 profit and loss for the year
,hs monev borrowed for the purchase
of liberty Bonds Of The Fourth Loan,
and bank loans TO provide adaitlohal
working capital
,There has been no change during t1e
voar In the company's issued or au-
thorjzed capital and no additional Is
snes are now I'm prospect. While 10 mas
been necessary during the year 10 se-
cnre additional working capital through
borro,Ving from banks the need Tor IN
creased working capital has now passed
and the liduldations OF the company >
accounts with the United STAT gov
ernment will take care of all ouisidhd-
ing indebtedness and leave q supst'h-
tial addition to the cash balance.
''The year that has just closed mas
heen one Of the most eVenuui m the
worlds history; it has certainly Deeh
che most eyentful In your company $
history though the net profits have
been the smallest in any of the Tour
wears in which IL has been engaged
On war work. Since the close of hos
tlitles on November #. your company
has been able to reduce iis SPECIAL war
undertakings from the maximum rate
at which they were then running 10
fhe point where, as OF December 81,
war work had been practically discon-
iinued There remains only small
quantity OF war material still to he de-
livered and an new manufacture has OF
es,lr-e long since. ceased. With TIE co.
operation OF the War and Navy Depart
mems. this reduction has been accom-
plished with "a minimum of unempl0y-
ment.
In 1911. when h0slilities in Europe
commenced. ttr-rompany was manu-
featuring smOkclcss powder In plant
having a capacity Of about 1890 pounds
per DAY. 10 was not manufacturing
n. " r.. though u was familiar with
this explosive through having used
something less than 100000 pounds per
year as an ingredient In dynamite.
Sisrling early in 1915. your company
entered upon lhe manufacture of war
explosives by erecting such additional
facilities as would permit The m3nutac-
iure on a small scale Of Cordite for the
British government The Cordl,e plant
,vss later very materially increased. IA
cHiiies for the manufacture of II. \. y.
6vere provided al Hercules, and the
Union Powder Corporation. manufac-
turing pyr0 Smokeless Powder, at Gil
lespie. " T.. was purchas u.
Additions and alterations o. these
plants and others enabled your rom-
pany 30 so Increase rs production of
war materials that al the end OF De
cember 1915. 70 had manufactured and
delivered total OF 90,OO0OO0 pounds OF
sm0keless cannon powder including
Cordite. and 700OO00O pounds OF r. N.l
r.. and I'm November was Op railing ills 4
own plants at a capacity OF j,OOOOOO !
pounds Of smokeless cannon powder per
month. and 100000 pounds of r. \. TJ
per menih.
I'm addition lo This production 10,
100000 pounds of other war materials
have been delivered while am Of this
ing In any degree the output of COM
mercial explosives. Explosive, are such
q necessary part of The mining industry
and The products Of The country's mines I
are so essential 60 the prosecution of /
the waI That your company could not
reduce lis commercial activities. hut
must handle war work without sacrlnc-
ing ils commercial business.
Though your company had largely
developed Is output of war materials
for the European governments. q very
large part Of thc capacity available at
the cl0se of the war had been brought
into existence since our country bcc3mc
a beligerent In undertaking thc manu-
facture of explosives for The United
states. your company has always at
tempted TO constitute itself an avn @
the government for lhc prosecution 20
tho war. and 10 place is entire re
sources at the countrys service. I
may be said that your company di
not seek to sell explosives 90 The Unite
States, but rather that &C kept the Wa
and Navy Departments constantly ad
yised Of rs facilities. plants and organ
izaiiOn and 10 endeavOrcd 90 meet On
wishes OF those departments in obtain
ing maximum output from existing IA
cilties. and providing additional faclll
Hes as those departments desired th
output further Increased.
in accepting this business, profit ha
been given secondary consideration
the first endeavor being TO supply on
government with the greatest quantit!
of explosives that it would be possibl,
for your company 20 produce in con
sider3tion OF its financial resource.
with such aid as the government might
be willing 10 render and The ability OF
its organization to undertake addition
al work without risking The success Of
equally important work already under-
taken. 50 long as your company was
reasonably sure that no loss would be
incurred, The extent Of the profits TO
ne obtained was not considered Of much
Importance.
Mler Your company had under