Evening journal., 1920-03-04
DIT PONT co. BACK ON
PEACE BASIS; PROFII
IN ITS INVESTMENTS

: followed This yesr, however, the
amount has risen TO such proportions
as TO be very material In measuring
the earning capacity OF your company
"For the year 1919, the estimated
) undivided profits accrulng to the prin-
cipal stockholdngs OF the company
! not reflected in the Consolidated In
come Statement Of the =. !. du Poni
de Nemours & Company, amount to
si6i05,7 ,7i3. which is equivalent to s2l3'
per share on common stock.
"AlsO, in this connection, 10 is inter-
estlng te note that the estimated ex-
! cess In net asset values OF the prlnoi-
pal stockholdings OF the company, over
and above the values at which such
stocks are carried on the books,
amounted 20 S33.i26,623 at December
81. 1919, which is equivalent to $500
per share Of common stock.
General Motors Corporation Investment
The largest Of these items Is that ac-
cruing by reason OF the earnings OF the
General Motors Corporation. Your
company owns through It's subsidiary.
dupont American Industries. 238,5Oi
shares Of General Motors Corporation
common stock and i59ii5 shares OF
Chevrolet Motor Company common
stock. Since the Chevrolet Motor Co.
owns stock in the General Motors Co.
In an amount which makes each share
OF Chevrolet Motor Co. represent 1879
shares Of General Motors Corporation
stock. this investment really represents
/ 200, 952 shares OF General Motors Corp
oration common stock. The total cost
OF these 1896 shares OF the company
was s.75s, ,252 SO.
"No dividends were received from
these securities in 1919 by The dupont
Company. though s2669l30 was re-
oeived by its subsidiary. The dupont
American Industries, whereas 10 is estl-
mated. based on the first eleven months
OF 1919 will be si3si55i953 over and
above the dividends received by the du-
POm American Industries.
ut Is oppOrtune here 10 call your at
tention 30 the origin OF this investment.
Your vice president. J. j. Baskob, with
extraordinary foresight, interested him
self as early as 1915 in the General Mo
tors Corporation 20 the extent OF be-
coming large stakeholder and di-
rector In that company, and by eXer-
convince fhe directors OF your COM
pany that the very unusual step OF
making huge investment in an indus
try largely foreign to its business was
warranted by the opportunities afforded
thereby.
"The earnings on General Motors
Corporation stock for the year 1919, af-
ter setting aside a suitable amount for
excess profits tax. will be about SS1 a
share and the value Of your cOmpany's
Investment as measured by The present
market quotations has more than
doubled since It's acquisition. This
statement Is perhaps stronger than any
comneudation OF Mr.. Raskob's work
which could be made in this report.
Bonus Plan.
your directors have continued the
bonus plan. approved by the stock
holders at their meeting In March. 1917
The earnings OF the company, by rea-
son OF the cessation OF hostihties and
the newness OF ITS activities in other
than the explosive line. RESUMED In
much reduced amount for distribution
among the employees; however 1886
employees were awarded bonuses OF
common and OF debenture stock for
1919. at cost Of ss57 1869.
stock Subscription plan.
"The stock subscription plan has
been continued and 1000 shares Of de-
beniure stock offered 90 employees who
were with us during the years 1918 and
1910 subscriptions received aggregated
ii27i ehares. and your officers have
deemed ID wise 10 accept them all.
The continuance OF the bonus and
Stock subscription plans mas been oil
aid IN increasing the number Of en-
ploye stockholders
.srhe number Of stockholders and
those OF them employed by the COM
many Is shown in the following tabula-
lions covering "a number OF years. Inc
record for 1907 10 1914 inclusive, is OF
p. ]. dupont de Nemours Powder Com
pany: that for the later years, OF Ks
successor. F. I. dupont de Nemours and
Company:
1901. 500. Of whom 2is. or 81 per cent.
were employees: 1908. 955. OF whom 200,
ar 26 per cent were employees; 1909.
1886 of whom 52i, or 80 per cent. were
employes: 1910 1895, OF whom 764,
or h5 per cent were employees; 1911,
2.f63. OF whom 900. OF 70 per cent were
employees: 1912. 2697, OF whom lao or
53 per cent were employees; 1913, 1885
OF whom 4 Oi7. or 36 per cent. were en-
ployes; 1914, 3.093 Of whom i.iSA orr
3s per cent. were employees; 1918, g..
$40. OF whom 1922 or % per cent were
employees: 1916. 1921. OF Whom LAS
or "a per cent. were employees; 1917.
5.l09. OF whom 24i5 or - per cent
were employees 1918. 1903. Of whom 1920
or i5 per cent were employees; 1919.
siS7. Of whom 1913, or "a per cent
were employees.
Decrease due to loss Of employees
Powder Company and Atlas Powder
Company
Pension Plan.
1.-THE company has continued the
pension plan which has proven itself
10 be Of great value in caring for en-
ployes who after long and faithful ser
vice are unable 10 continue their work
Il is felt that This plan is OF mate
rial aid in ATTRACTING and holding a
most desirable class Of men, that is
those who have a thought for the fu-
ture.
IN the past. The cost Of pensions. as
paid out, has been charged TO cur
rent operations rOur officers. how
ever, feel that although there is no
legal obligations 70 continue this plan
/ into the future, we viii find 10 expe-
dent so to do, and it is accordingly
desirable to set UP a reserve to take
account Of such portion Of prospec-
tive future pension payments as arr
! requIred by pensions alreadv nrantnd