Every evening, Wilmington daily commercial., 1921-03-12
.DU POINT EARNINGS FOR
YEAR OF S23,749,SO7
Annual Report of Company Re-
veaIs Decrease in Sales
From Year 1919.

Net earnings of s15.o5s,O22.21 and
sales of Sa3 .9S3. .291.6f. are shown In the
annual REPORT for 1920 of Il. 1. du Pont
de Nemours 4 Company. which has
been issued. These figures compare
with net sales of s105. 5.437. .923.24 and net
earnings of Gil .820. .953O5 In 1919. Earn
ings applicable TO common stock were
$40. 749. .s07.86. Of which S6.267,7ST was
paid In cash dividends. In addition TO
sum applicable to common stock tho
undivided earnings arcruinH TO the COM
pany through it's stockholdings In SUBJ
sidiary and other companies agRrega ted
approximately s13,000.00O. This would
make total of s23, 3,749.8 9.807.s6. which
represents the company's direct earn
inss applicable to common stock. plus
It's equity in earnings OF other COM
panies In which IL has large or con-
trolling stock interests. This total 10
equivalent to approximately $3.50 per
share of common stock.
The report rays the estimated not
value of the principal investment stock
holdings exceeds the values at which
such stocks nre carried on the books by
slightly over $4,000. 900. equivalent to
about $50 a share on common stock
The companye suspended war con-
u iANAH Will lnt NFTUuteill MI tn~
teresting chapter In tho report. On De-
cember 81. 1920, there were 81 of these
claims aggregating 1875, ,692 .b5, but
by reason of advances from the United
States. and credits due tho United
states for purchases Of materials I'm
claims. the net cash duo the company
was only $2,0l3, 410IS. OF these claims
agreements have been reached with
auditors and the local army boards
covering q claims. aggregating sea-
075,327.31. on which there In due the
company in cash s354,6s370.
The balance OF the claims 16 aRgre-
eating $4,000. .S65,24. on which there is
cash due the company OF s1,65S. .7i6.4s).
are still in process of settlement.
Depreciation of inventories OF raw
materials and fnirhed product, due 10
the abrupt decline In prices In the
latter part OF ths year, amounted to
sI0.s42.s1s.43. That was written of
without disturbing the profits for 1920
because during previous years when
prices were increasing the directors had
set aside from the current profits an
amount sufficient TO meet suoh an ea-
pected decline.
The investment of vurpluA funds in
other profitable Industries wps com
blcItb al 1fAfs Out sA8N year II
became apparent that the opportunity
for expansion IN the lines OF busineas
in which we had become engaged was
70 have additional funds 10 pcrrna riertly
invest therein" To secure the neces-
sary funds dividends wore paid partly
in stock which resulted in cash ac-
cumulations at the rate Of approx
mstely se.eoo 900 per annum.
This change IN the dividend plan was
made because. the report -nys: II was
found that many OF the stockholders
would be unable TO purchase their pro-
portion OF a new gtock issue because
the Government would take 20 much OF
their income IN taxes as to leave an
amount for rcinvestnent. II
is difficult TO find newcomers 10 take up
the stock. for the reason that they are
In the same situation with respect to
income tax and have little surplus
for reinvestment. The Same situation
prevents the sale OF bonds or debenture
stock. except at very high interest rates.
doubtless due TO the grave shortage in
capital"
Payment OF federal taxes wa.
ma tor contributing cause OF the insult
fciency OF capital remaining from un-
divided profits" the report save The
amounts paid TO the United States Gov
eminent s.nce 1916 are: For year 1916,
s1b. 7ss. .2s6.30; 1917. s21.5ss.s .s7s.s4; 1918,
s12, 90S. .s1976: 1919. s1,s7S.ss327. Total
s51. $50. .564.97. These taxes. like the
Surtaxes on individual incomes" the
report adds. are a serious drain on
funds available for reinvestment in In
dustry.
The recent purchase Of the Durant
holdings in General Motors Gin which
the du Pont Company already had a
large interest and now har a controlling
nterest) and the financing Of the deal |
are explained in detail.
The Company's consolidated balance |
sheet. in which is included B. l. du /
Pont de Nemours & Company Of Penn |
sylvania. Z. I. du Pont do Nemours |
Export Company and the Rokeby |
Realty Company. shows total assets Of |
1858 ,35s, ,s71.o3 as compared with s240.- |
s2.620.74 In 1919. Surplus shown is /
1868. .7s4.27. as compared with SILL I
al. .3os.41 in 1919. Tho capitalizati ton /
n 1920 was Debenture stock. .70,629,-
30; common stock, s63.37s, 1886.
The annual meeting Of stockholders |
viii be held next Monday.