The Bismarck tribune. [volume] (Bismarck, N.D.) 1916-current, 1927-08-30
BY JOHN w. HILL
Financial Editor. Iron Trade

tOTs ana the 0u POnt 1ntercStS.)
BY JOHN w. HILL
Financial Editor, Iron Trade
Review
The General Motors Corporation
the brilliant jewel Of the du Pom,
industrial crown, has been under tho
virtual control Of this famous family
since 1920.
The story of how this came about
|, and how General Motors was trans.
formed from struggling concern ia
the outstanding success of the age
is one Of the mos: amazing chapters
IN the pages of industrial history.
Durant Started 1t
The breath of life first was
brcathcd into General Motors by Will
liam c. Durant. He organized the
concern back in 1908, blending to-
Cether pack of financial troubles
AZ well rs consolidating properties.
Within space of two years he was
forced to obtain bank loan of $l5,-
10000 One Of the conditions of
the loan imposed by, bankers was that
control should be placed in voting
trust until Oct. l, 1915.
At that time, John J. Raskob, a
New York boy who had started to
work for the du Points as stem
ographer, had worked his way up to
place as an official in the du Pont
corporation. Raskobs rise with his
employers had been rapid and they
appreciated his keen foresight.
Pierre S. du Pont valued his judg-
ment. When the young man came
to him with a great vision Of the
possibilities Of the automobile in
dustry and particularly in the possi-
bilities of the field for General Mo-
tors. he listened
AS result Of youn~ Raskobs in
vcstigation the du Points purchased a
few shares of General Motors com.
mon stock.
Du Points Held Control
In 1915 the end of the voting trust
period drew near 1t was found that
du Points holdings in General Mo-
tors, consisting of something slightly
less than 5000 shares, constituted
the balance of power between the
Durant interests and the bankers.
The outcome of the situation was
. that the bankers and the Durant
party each placed seven men on the
directorate and du Pont was per-
mitted to place three. making a board
OF II. RaskOb was one Of du Points
appointees and Pierre S. du Pont
himself was elected president. This
was the entry into what has proved
to be one of the most profitable in
vestments ever made. In 1923 du
Pont handed over the presidency to
Alfred P. Sloan and took the position
Of chairman.
: The du Pont interest in the cor
poratlon at the start was only small
one. But during the war the parent
du Pont corporation piled up huge
profits which had to be put to work
. elsewhere. Again. Raskob came for
ward Tor General Motors and his su-
perlor lent him ready ear. They
proceeded to place large amounts in
the stock OF that corporation.
FIRST $25.OOO.00O was invested and
later a similar amount. Then fol-
lowed considerable financial trouble
Tor General Motors. The result of
this was the formation of giant
pool to take over a controlling inter
est. and the du Points invested an
other 25,O0O,OOO. This marked the
fading from the General Motors pic
ture of the spectacular and cmbit
y
This last purchase gave the du
Fonts virtual control of the organiza-
ton through ownership of about o5
per cent Of the stock.
Based on current market quotations
for the stock, they would have a
market profit alone Of about $685.
ooo,Oc0 on their investment if they
were to take it. In addition the
dividends received on the stock have
been more than the original purchase
price.
Has Huge Assets
+. !. du Pont de Nemours & Com
pany itself has capitalization of
S2l3 100000 with gross assets of
S346.30O,0O0. It's working capital at
the close of 1926 totaled more than
SOL 900, 900.
Its business is extremely wide
spread with plants located all over
the country. At the present time the
corporation employs about $4,000
men and has an annual payroll of
about $44,OOO,OOO.
The du Pont stock is fairly wide
ly held. there being 1903 stock
holders. Last year the company paid
out in dividends a total of $4,000
900.
The company was first organized
10 years ago by F.. l. du Point to
make gun powder. an art he had
learned in France. The inspiration
Tor the new enterprise came from
Thomas jefferson, who was out Of
patience with the poor quality Of
powder obtained for his fowling
niece. He persuaded his friend .du
Point to supply his want.
From tiny beginning the COM
pany has grown to it's present inn
mense size. Powder and explosives
remained the chief product for many
years. But chemical research added
to the list of manufactures one by
one, until now the company includes
q multitude of diverse products rang
ing from baby's tecthing rings to
smokeless powder and automobile
paint.
Family Works Together
fhe'present active head Of the Will
mington lDel.I family of du Points
and the man who first recognizcd the
possibilities of General Motors is
Pierre s.. who is 81. Irene du Pont
was president of the f. l. du Point
de Nemours Co., but more recently he
has been passing many of his burdens
to other shoulders.
Lammot du Pont, tho yc"r~es..
brother. and regarded as tren, nndons-
y able, is now president Of the
Nemours Company. But tn" family
pulls in team work and all major
problems are discussed arou.d the
family circle.
PULSE SHOWS HEALTH
Mar, nI;nnY ~