The New York herald., 1921-05-13
MORGANS TO OFFER
BIG DU POINT ISSUE
$35, 100000 Bonds Company's
Only Ones, Will Be Sold to
Yield Z 1-2 Per Cent.

Permanent financing OF the General
Motors stock taken over by the du Pont
Securities Company in November. 1920,
at the time w. c. Durant found himself
with large and pressing personal indebt-
edness, was consummated yesterday
when ]. z. Morgan & Co. announced the
purchase of sa5,0Qo.o00 q. 1. du Pont
de Nemours Company ten year ia per
cent gold bonds. The new ISSUE which
constitutes the only bond Issue of that
company, will be offered to-day through
a countrywide syndicate for public sub
scription at 100 and interest to yield IA
per cent.
The proceeds of only 5,000,0 900 will
be used to segregate all General Motors
and Chevrolet Motor stock owned by the
du Points. The balance of $10.000,000
will be used for general corporate pur-
poses. The bonds will mature May /,
1891. and they are redeemable at the
option Of the company. in whole or in
part. on sixty days notice at 10 and
interest at amy time prior to May l.
1922. with the redemption price decreas-
ing / per cent. for each succeeding year.
last ten years the company's net re-
ceipts from its commercial business only,
excluding the profits on it's so-called
military" business. have averaged more
than $7,5e0,000, against annual interest
charges of S2.625.000 on the new bonds.
The du Pont company has outstanding
$70.6290o0 6 per cent. debenture. stock
and s63.37s.000 common stock. Total
assets aggregate s2S0.000,000 and the
uncapitalized surplus and reserves more
than sS5. 200. goo.
In this step, which will finance the
General Motors stock ownership perma-
nently, the plans call for the wiping out
of the Du Pont Securities Company, with
the retirement OF its stocks and the
setting up of trusteed funds to meet the
100000, 900 one-year per cent. collat-
eral trust bonds, which mature Novem-
ber 22. 1921. The parent company will
turn over the proceeds of S25, 100000 of
its bonds to the Du Pont American In
dustries, Inc, which will pay the funds
to the Securities Company, and the
parent company will receive In return
$4,000, 900 of the bonds o ( the American
Industries Company. which are to be
secured by $1,000 900 General Motors
stock, $50, ,000,o preferred stock and
all common stock OF the Du Pont Amer
lean Industries Company.
In other words, the financial transac-
tions will result in the free and clear
title of the Z. !. du Pont de Nemours
Company. through its 100 per cent. own
ership of the du, Pont American Indus
tries Corporation, to all of the General
Motors Corporation stock. including the
2.504.373 shares purchased from w. c.
Durant last November and the 122,e95
shares purchased from a syndicate.
The annual report of the L. /. du Pont
de Nemours Company, issued several
weeks ago, tells about the steps taken
last November that added to the con-
Germs investment in the General Motors
Corporation, which up to that time had
amounted to a 29.57 per cent stock own
ership. AS the new financing will re-
move permanently the du Points General
Motors holdings from consideration as
q possible stock market factor. the his
tory In the report of the Durant transac-
tions Is of value as follows:
During the latter part of November
last w. c. Durant. then president of the
General Motors Corporation, requested
that we take over the management and
control of that corporation. advising that
he desired to resign and sell his interest
In the corporation I'm order to liquidate
his personal Indebtedness, which was
very large and pressing. The conditions
presented made immediate action inn
perative and at time when the finan-
cial situation both here and abroad was
very acute"