Evening journal., 1919-03-10


sources. it was requested by the War
d parlment 90 undertake the operation
or L. ;. Explosives plant &c, at Nliro'
W. Va. this plant having a prospective
capacity OF 625,O0O pounds OF smokeiess
powder per day, including the manu-
facture OF all The ingredients entering
into that powder. Running 40 full ca
pacliy this plant required greaier
number OF employees than all OF the
plants OF the Hercules Powder Com
pany.
"IIavlng made satisfactory arrange
menis so that this undertaking was
financed entirely by the government
Your company accepted a contract TOT
the operation OF The Nitro plant. some
of your cOmpany's best operating tall
ent was Immediately transferred to the
Nitro plant and an organization was
gathered together in an exceedingly
short time.
"N-orkinr I'm close cooperation with
ihc War Department. with thc director
of explosives plants, and the conlrac-
tors by whom the plant was construct
ed. your company started the manu-
faclurc. first OF the ingredients. ana
then OF the powder. as rapidly as ille
several portions OF the plant were re
leased by the construction forces. NJ
the time OF the armistice, the organl1a-
tion at this plant had been develop
ed 40 such degree that your COM
pany Is convinced that the entire plant
would have been operated 1l a hlgh
state OF efficiency.
illustrating the narrow margin oi
profit on which government business
was undertaken. your company's opera
ton of The Nitro plant did not con
tribute one dollar OF profit during the
wear lust closed. though there Is a
small profit that will be due In the
final settlement. ON the 0lhcr hand
deriving other plants Of some Of their
hest men who were sent 10 Nitro, un-
doubiedH resulted In reducing the net
pro0is Of the company for the year, be
low what they would lave been had tIle
operail0n of the Nitro plant not been
undertaken.
Your company has been in close
enough contact with the War and Navy
Departments 10 appreciate the things
that those departments have accom-
pllshed and has found a spirit OF CO.
operation that has been a large factor
IN enabling your company TO contrib
ute AS much as 10 has 90 the successful
OF the war. 10 Is believed
ihat iis war eXpericnce has added very
10 the value Of your com
pany's good will and the letter which
is reproduced in this report is an evil
dence of The War Departments appre-
citation
your company has. during the four
years OF its war experience, paid in
federal taxes, including taxes accrued
for the year just closed a total Of So
9g2 .62g.93. II has subscribed 90 s5.3j0.-
600 Of Liberty Bonds OF which Sl,70OO00
have been taken by employees on lib
eral subscription terms. which your
company believes materially increased
the employees subscriptions over what
they could have been had the COM
panys subscription plan not been avail
able.
"YOur company's laboratories have
been engaged IN the Investigation OF a
means OF permanently employing the
plants erected particularly for military
business after the need OF war mate
rials had passed. Obviously as the
need for war materials became greater
md The men available fewer 10 was
Necessary 10 restrict this research work |
within very narrow limits Likewise. I
While your company's financial re- I
ources We're fully employed In war
usin.ss. 10 was not practicable 10 l
l3ke investments i'm other lines.
some products have been developed
bat VIII perhaps increase and take
heir place among the profitable lines.
ut the products so far developed viii
ot utilize any substantial part OF your
ompany's war plants.
All war plants have been written of
o a nominal value and your company
ias nothing ON It's balance sheet rep
esnung investment in processes or
products TIA, may prove Improbable.
Ihc total amount carried as plants and
represents plants engaged i'm
the manufacture OF commercial cXplo-
sives, and has increased only ijes since
i9ii.
Excess working capital and other
FUNDS Tied up i'm war business are now
ln process of liquidation. Some of thel
best talent of your cAnpany's oreani- |
Nliou has been released from war
work and is now available for mo i'm
| INesligatlon and development of proOl
/ aDl' means of employing the conn
panN'S resources. 70 is believed mat
with he talent available and vim
funds in liquid form your compauv is
IN much better position 90 nnd prn0t-
able employment for its resources. dllr-
lng the reorganization through which
the business of the company Is going
than would have been possible under
war conditions when Your companv's
organization was fully employed on
war work, and was not available fol
research and Investigation.
n substantial sum has therefor,
been appropriated and set aside for th
specific purpose Of investigating an
developing additional lines OF prollabl
endeavor, and a department organizes
for the purpose
In closing down war operations.
has been possible 90 make much NOR
accurate determinations Of values o.
hand than was possible while opera
lions at full capacity continued. Vic
lent changes have taken place in IN
prices Of some Of the materials used 4
the manufacture Of explosives. 10 ma
been definitely determined that tn
plant erected in California, for the re
covery OF values from seawead. canno
he successfully operated under peac,
and operations at tha
plant are being rapidly discontinued
Your company has disposed Of a large
quantity of potash which 1t held In
the belief that It would be required In
the governments powder program. This
was disposed of at a price SUBJ
stantally below its cost OF production.