Evening journal., 1920-03-04

making company Of The four previou
wears into a producer Of peace-time ne
cessities Large growth in The volum
If business other than commercial ex
nlosivcs. Is shown and a brighter Iu
lure is predicted. The report snow
thaf While there MAS a FALLING on II
net sales and net earnings. the uhol
vided earnings on investment Stock
have risen to such proportions as 70 d
very material In measuring the earning
capacity OF lne company
For the year 1919, the estimated un'
divided profits accruing TO the prinoi.
pal siockholdings OF The company. mol
reelected In the Consolidated Income
statement Of the E. l. dupont de Ne
mours ana Company amount to si6.,
fO57i3. which Is equivalent TO S2'5'
per share on common stockk.
II is noted also that the estimated
excess in net asset values OF the prin-
cipal siockEoldings OF the company
over snd above the values at which
such stocks are carried on the books
amounted 10 s33, ,f26. .623 at December 81,
1919 which Is equivalent TO sJ62y per
share OF common stock.
The annual report Of Irenee DUPONT
president OF the company, Is as iol-
lows:
'eYour oompany's contracts with the
Allied Foreign Governments contalned
no cancellation clauses. They We're
practically completed az the time OF the
signing OF the Armistice, because tie
United States Government haa bought
our entire output sold for delivery
in 1919. with instructions TO us as 70
what norton was assigned by them 10
the foreign Allies.
"Confrscis with the u. s. Government
which provided for cancellation, IN
olude clause intended 30 hold the
compauv harmless from all loss Tex
Npt prospective profltsl. due TO can
collation.. These contracts We're
nromptIv cancelled soon after The Sign
,ing Of the Armisiice, leaving the comp
utstion Of the amount OF damages
caused by the cancellation TO De de-
termined as soon as might be.
"a large amount Of accounting was
required to prepare The claims ana
since they were submitted, negotiations
have been conducted with the several
Government Claim Boards. which are
reviewing and auditing the accounts
The total amount Of the claims Of this
sonpanv against The II s. Government,
because OF cancelled war Contracts, is
s27 5o5 377is. Against this amount the
company holds advance payments, re-
ceived on account Of The output can
YELLED amounting 10 500 7aS 0SS03. The
claims have been carefully prepared
with "a view Of asking only for such
l.noares as are eminenilv fair and Just,
II that they viii eventually De approv-
and paid by the Government How
ever settlement has not yet been made
and may not be completed FOR some
tine because OF the Governments sys-
icm which requires very complete
audii Of an Items.
"The strictly war plants Of the com
ranv. a. reported last year. were SOFA
ea bloc 20 the dupont Chemical Com
rsev. So that This company has been
relieved OF the burden Of liquidation
.hai Investment IN detail.
Progress can be reported IN the task
~ converting the munition making
sompanv Of 9he years 1914 30 1918 in
clusiye. into a producer OF peace-Iime
necessities The personnel ana assets
had grown during the war period 70
such an extent that u was evident 10
the management that they could not oe
fully utilized in the industrial eNplo-I
sive business. The reports OF the years
1916. 1917 and 1918 indicate that this
condition had been anticipated ana the|
eompany's scope broadened no utilize,
as far as maybe, It's greater assets and
personnel in the after-war period
"As a result Of enterins into the pro-
duction and distribution OF py-ra-lin'
paints. pigments. chemicals and dyes
10 supplement your company's COM
rnerclal explosives manufacture and the
gerry considerable growth IN the vol
nme of the business in these under
taklngs. I am able 20 report that fur
ther ollrtailment in The number OF en-
ploves OF the company's payrolls from
that indicated IN Rst years report has
not been found necessary. on Deem
her "a 1919. there were OF s9laried em-
nloves ss10 and o. wage-earners %, 40,
a total Of 1850.
"Bv far the largest investment In
new undertakings has been made IN
the motor industry by an investment
IN the stock Of the General Motors
CORPORATION. and although we are only
stockholders IN the corporation, the
friendly relations with its manage
nent have enabled US TO receive the
indirect beneft Of many valuable em-
ployes who would otherwise have had
70 be dispensed with, because the eX-
sraordipary growth IN that industry
has demanded large numbers Of capable
men.
"The next in size has been IN our new
dye plant az Deepwater Point. ~ j.,
across the Delaware from Wilmington,
where we are manufacturing success
fully a large number Of the cOmpli-
Gated dyes formerly made IN Germany
only. Your company has made a corr
spicuous success in the synthetic
manufacture Of indigo and camphor on
a very large scale and is now making
satisfactory profits thereby. Research
laboratories have been established and
many chemists are employed in this
very important new branch Of our
Industry.
Subsidiary Companies
"The widening scope Of our activi-
ties has made it desirable ihat certain
OF our Investments be carried in sub
sidiary companies The chart shown
IN the center pages Of this report indi-
,ates the relationship Of these com
,anis more clearly than a verbal state
nent Stocks which the company owns
IN other companies excepting those
which are consolidated with the par
mt company in forming the statement
II Z. /. dupont de Nemours & Com
Dany and subsidiaries, viz: f. T. du
pont de Nemours & Company. OF Penn
sylyania- z. l. du pont de Nem0urs