Evening journal., 1922-03-07

the year lHLV were discontinued lot
the reason that the depressed earn
ngs Of the company did not warrant
a dividend greater than s per cent.
per annum.
Price. Waterhouse and Company.
Public Accountants have audited the
books and records OF your company
for the year 1927 and copy Of their
certificate, together with the usual
Balance Sheet and Profit and Loss
Account are hereto attached.
Referring to Balance sheet. n.
decrease in the items Notes and
Accounts Receivable and Mater
ials and Finished Products. is oc-
casioned by the reduction In the
volume OF business OF your COM
pany and the liquidation OF surplus
inventories
The increase in Securities held
for Permanent Investment Is due
largely 10 an increase In your equity
in General Motors Corporation Com
mon stock. due TO the acquisition OF
all OF the outstanding securities OF
the DUPONT Securities Company
which company. as outlined in report
for the year 1920. was formed foi
the purpose OF purchasing ce- ain
General Motors Corporation Common
Stock from W. c. Durant.
THE Permanent Investment in
Manufacture has been reduced by
writing OF against Reserve for De
probation such parts OF plant as
have been considered permanently
obsolete or out OF use.
The reduction in Notes and Ac-
counts Payable is due largely 70 the
liquidation OF all OF your company's
bank loans
THE decrease IN the Reserve for
Contingencies IS due principally 70
the charge made against II on ac-
count OF reduction in inventory
prices. as already explained.
Subsidiary Companies.
Securities held for Permanent
Investment consist principally OF
your companys investment directly
or through subsidiary companies ir
the General Motors Corporation. hu'
include also It's interest in various
allied industries as indicted by the
chart on pages s and 9 OF this re
port.
These securities are carried or
the books OF r. I. DUPONT de Mem.
ours & Company az cost. and in.
come therefrom Is included In it'
fpoorna oorourt crf.. ,-L,- r,.of,.o 4
In the form OF interest or dividends
The amount so received during 1921
was s12.1s6.43s.
THE net iasset value represented
by the securities. based on the &C.
counts OF the various companies. 4,
approximately s24.sOO.0O0 IN excess
or their cost The excess "a ma
terlally less than the corresponding
figure at the close OF 1920. principal
ly by reason OF the readiustmenf o
inventory and plant values made b,
the General Motors Corporation De
cember 81. 1921. as shown by It
preliminary statement for the yea
1921, a copy or which accompanie
this. report. This statement show
surplus for the no par value com
mon stock over and above $40 pc
share OF t55.s14.160. the proportio
applicable TO the holdings Cdirec
and indirect) Of your company be
ing approximately s2O.6oo.OOO.
The change in the line OF owner
ship OF certain OF your company
investments. made apparent by
comparison OF the chart in this re
port with that OF last year. calls 70
the following comments:
"All assets OF dupont America
Industries. Inc. excepting an equit
equivalent to 7.0OOO 600 shares Gen
eral Motors Corporation Commo
stock. have been transferred TO IN
parent company or 20 other subsid
iaries owned entirely by the paren
company This was done in con
nection with the company's bon
issue. referred TO IN letter to IN
stockholders OF May 81. 1921.
The duPont-Nobel Company hs
been organized for the purpose q
holding $4,000 shares OF commo
stock OF the Canadian Explosive
Ltd: also 10000 shares Genert
Motors Corporation Common stool
which were previously carried D
the Canadian Company for the joir
account OF Nobels Explosives Co
Ltd. and your company.
THE Compania de Explosives d
Chile was formed for the purpos
Of constructing high explosive
plant In Chile 10 serve that cour
try's needs as we'll as certain oths
trade on the West Coast OF Sout
America. Your company subscril
ed to a substantial interest thereii
and the DUPONT Engineering c
was awarded the contract for bull,
ing the plant near Calama. Chile
"The Delaware Surety Compar
was organized on June %. 1915. ul
der the Laws OF Delaware. with a
authorized capital OF 10000 share
all OF which were subscribed for
the DUPONT Co. al $50 per shar
The company was organized for q
purpose OF writing surety bonds Z
the faithful performance by yo
company OF It's contracts to furni
military explosives. The contrac
having been completed. the CONT
uatlon OF this company was
8 longer required and It was accor
3 ingly dissolved on June 80, 1921.
assets were turned over 10 the d
! Pont Company, its sole stockhold'
j 1T is with deep regret that y
= are informed OF the death OF Ale'
T. DUPONT, for many years secreta
= 10 your company. His engaging p'
! sonallty. fine character and sterli
d qualities endeared him to all his q
b sociates. on leaving college
p started with the dupont Compa
and his onffra huefuaca raraar "a