The Richmond Virginian. (Richmond, Va.) 1910-1920, 1920-03-04
lie RIcHNoNp NEUTRALITY-SUSPICIOUS.. MARCH "A 100.

: Chevrolet Motor company represent
( .2ts5 shares OF General Motors cor
poratien stock, this investment really
represents 2os.se2 shares OF General
4 Motors corporation common stock.
| The total cost of these 44S,45s shares
TO the company was s4s.756,2s7.53.
No dividends were received from
these securities in 1918 ny the Du
Pnnt company though $2,6se, 43o 90
was received by it's subsidiary, the Du
Pont American industries. whereas 1t
is estimated, based on tho first eleven
months OF 1919, that the earnings ac-
cruing TO this stock for the year 1919
will be t1a,s16,54S-63 over and above
the dividends received hU the Du
Point American industries.
In explaining the company's In
vestment in General Motors tho report
says:
1T Is opportune here to call your
attention to the origin Of this invest
msnt Your uce-prcs1dent, Mr.. J.
j. Raskob, with extraordinary fore
sight, interested himself as carly as
1916 In the General Motors corpora
ton to the extent OF becoming a
large stockholder and director in that
company, and by exercising great
Perseverance was able to convince the
directors OF your company that the
very unusual4step of making a huge
investment in an industry largely
foreign To it's business WAS warranted
by the opportunities afforded there
by.
The earnings on General Motors
stock for the year 1919, after set
ting aside a suitable amount for ex-
cess profits tax, will be about $s7 a
share, and the value of your com
pany's investment as measured by the
present market quotations has more
than doubled since its acquisition.
This statement is perhaps stronger
than any comm endation of Mr.
Raskob's work which could be made
In this report"
The company's consolidated state
ment shows a surplus of s71 .74i,304
Al, of which s3,440.41s.74 was added
during the year after the payment of
S3,64s,S22 as six per cent divi-
dend on the dcbenture stock, and
sl0,593.756 as an eighteen per cent
dividend on the common stock
Munitions contracts with the United
States government were cancelled i'm
rnediately after the signing of armis-
tice, and since that time continued
efforts have been made to reach a.
settlement of the claims against the
government. The total amount of
these claims is s27,595,3771s. against
which the company holds advance
payments amounting to $20.75S,0sS.-
03. The governments system OF audit
ing claims indicates that it will be
some time before all items can be
adjudicated
AS a result OF entering into the
production of goods other than ex-
plosives. the company has been able
TO retain 81 $50 OF its wartime en-
ployes, and has been able to receive
the indrest benefit of many who
have gone to the General Motors and
other corporations in which the COM
pany holds substantial interests.
At the new dye plant at Deepwater
Point, the company Is manufacturing
successfully a large number of the
complicated dyes formerly made in
Germany only. Conspicuous success
mas been made In the manufacture OF
synthetic indigo and camphor, and ii
is expected that this very important
new industry viii be developed
rapidly in the coming years
The company has continued the dis
tribution Of stock under It's bonus
plan and at the end of the year
awarded common and debenturs
stock costing Ss57,53e.S9 to 1856 en-
ployes-
Under the stock subscription plan
employees have subscribed for 1917
shares OF the debenture stock. The
number OF stockholders has reached
the total of S,13T, of whom 3,S13, OF
"A per cent, are employees. The
company will continue the admins.
/ tration of its pension plan. and instead
| of charging the outlay to current
| opera tons has set aside a reserve Of
$l,40o. 600 as a contingent liability tt
cover such portion OF prospective
future pension payments as are re-
qutred by pensions already granted.