Evening star., 1934-12-14
DU POINT WAR PACT
WITH U. S. ASSAILED .
BY BAKER, PROBE HEARS

Continued From First Page)
gotten $7,500,000 instead Of $l3 ,500,-
600 for construction of the plant.
Reporting to Baker on this, Brooking
said Gen. Crozier, Col. Hoffner and Mr..
McRoberts of the Army Ordnance De-
partment insisted it was reasonable
and evidenced the greatest generosity
on the part of the Du Points"
You can readily see," Brooking
wrote. "how difficult it is to get men
who have so conclusively passed upon
a proposition to admit they have made
a mistake"
Big Gain Denied.
But Du Pont officials contended
sharply the picture drawn by Alger
Hiss, the Senate Committee investlga-
tor, is misleading. They said they
managed the construction OF the $685.
900 900 plant for payment OF 81 and
operated it for a royalty of cents on
every pound Of ammunition produced.
This netted about $2,45l ,l85, but ST.
976, ,645 was paid back to the Govern
ment under the excess profits tax, the
company official said.
This left $474,540 for the Du Pont
subsidiary that handled the project,
but company officials said only S275,-
600 of this ever reached the parent
organization because the Government
refused to allow 100000 spent in
bonus to employees.
On the other hand, the committee
contended the contract carried no risk
for the Du Points because the Gov
eminent put up all the money.
Could Have Cut Profits.
Brookings reported he felt the War
Industries Board could have reduced
profits under the contract by one
half If it had participated in the ne
potiations, which were rushed through
in the early stages of the war.
Even under these reduced terms
Brookings said the Du Points would
have IAN absolutely secured proft OF
$500. 900 per year for nothing on
earth but directing the policy OF the
company from their main off1ce.
Irenee du Pont challenged this state
ment. ut was not our opinion tnat
II was a handout for doing nothing.
he said.
Hiss brought out that the Du Points
on Americas entry into the war, were
able to sell the United States powder
at about so cents per pound, whereas
it had received 81 per pound from the
allies earlier.
The profit had been used to amor
tie expense in tremendous plant ex-
pansion, 1t was said.
Fortuitous Circumstance.
att was then merely a fortuitous
circumstance that the United states
got it's powder cheaper" Hiss re-
marked.
II don't understand that remark"
Du Pont said.
well. certainly patriotism played
no part in this lower price" HISS SAID;
Naturally" Du Pont said, I'VE mao
to recover the expenditures we had
made. We would not be good trustees
for our stockholders if we had not"
Pierre du Pont volunteered the ac-
count of his conversation with Baker.
Baker told me just after he can
celed the contract that 1t was time
the American people did things for
themselves" Du Pont said.
"It was a clear indication to me
that the Du Points were not wanted
and were not considered as Amer
leans.
His implication was that we were
q species of outlaws"
War Profits Told.
The committee swung into the war
profits phase of its inquiry yesterday
after making at least an outward
peace with President Roosevelt. We'd
nesday the Senators were plainly 1rkeo
when Mr.. Roosevelt named dlstln-
guished group to study the problem OF
taking the profit out Of war" appar-
emily, at the same time, ignoring the
munitions probers.
Senator Clark, one Of the commit
tee members, visited the White House
yesterday and returned to report that
Mr.. Roosevelt expected the two groups
to work together. He saw, he said,
mo basis for conflict" adding that the
Senate Committee was trying its best
to get something done and welcomed
aid"
Meanwhile, the chairman Of the
White House Committee, Bernard M.
Baruch, journeyed South for a vaca-
ton, equipped with voluminous docu-
ments on the problem, in which he
has interested himself for years. At
the War Department, simultaneously,
plans were made for bringing up to
date the price freezing" and high tax
recommendations Of the War Policies
Commission made in 1882.
High Tax Proposed.
These would impose 95 per cent
| tax on all profits of corporation in
excess Of its average for three years
prior to the war and would vest in the
J administration autocratic authority to
! stabilize prices and control credit.
| Negotiations leading up to the war
time contract between the Du Points
and the Government, on which the
Delaware munitions company re-
ceived the 100000, were first
brought up late yesterday.
| This capped the day devoted to
the exposure of war profits running
in many cases. to 20, 80 and 40 per
cent of invested capital and even
some to several times that figure.
Some concerns made between 100 and
800 per cent in 1917. In the same
year there were 181 individual in
comes of over a million dollars, Al
of which had not appeared before.
800 Per Cent Profit Shown.