Evening star., 1934-09-13
i S. SECRET DATA
GUARDED IN PROBE
Senate Committee Learns
OF Advice to du Points
by Gen. Macarthur.
CONTINUED From First Page.)


Lammot. and q cousin, Felix d.
Pont, sat listening. Y&Ss
Members of the committee asked Il
bonuses were inaugurated during the
war. Pierre responded that they had
been paid for some time prior to the
war.
Yes" interjected Irenee "It be-
gan as early as 1905. remember !
was very much surprised in that year
to get a bonus Of $2,500."
Chairman Nye, seeking to develop
what percentage of other companies
the corporation had acquired, read a
list of concerns in which the du Pont
firm had an interest of 100000 or
more. The list included:
The Remington Arms Co.. the
Peters Cartridge Co., the German I.
q. Co., South American Explosives.
French Duco Co., German Duco Co.,
the Bakelite Co., the du Pont Film
Co, the du Pont Rayon Co., the du
Pont Celophane Co.. the Perth Amboy
Chemical Works, the italian Celuloid
Co. and the National Ammonia Co.
Describing the company's holdings,
du Pont said his interest In Cen
eral Motors had increased in value
from an original investment OF $4s,-
000, 900 to $l54000,000.
The corporation owns 10000 600
shares of General Motors common
stock, which it carries on its books
at a value of slightly more than SIS
per share, contrasted with the pres
ent market value of approximately
-, sr ak
cent of outstanding General Motors
stock.
At the opening Of today's hearing
Pierre du Pont strenuously objected
to what he said was the erroneous
impression that his company held the
allied powers at their mercy in the
early days of the World War and
wrung huge profits from them.
II want to say" du Pont told the
committee in q lengthy verbal state
ment, that everything brought out
here thus far has been q matter Of
record for many years"
Information Not Secret.
I'VE don't want the rising genera
ton to think this information has
been kept secret and finally dragged
out as something reprehensible," Du
Pont said "Our records have always
been open to survey"
Chairman Nye interrupted to say
there was no misapprehension on the
part of the committee, but that some
times facts made public at one time
might have more significance when
surveyed later
Exactly" du Pont replied. "All
the facts thus far brought out here
makes our action during the war seem
reprehensible. There has been Moth
ing said about the fact that the allies
beezed us to fulfill their contracts.
They came to US because we were the
only company that could provide them
powder.
They were very glad to pay for
this service. It Is very unbec0ming
to have in the record the money was
wryng from the allies while they were
ct our mercy.
b THAT was not true. We had 10
expand tremendously to make this
powder and high prices naturally re-
suited" -
Du Pont said that as q result Of
this tremendous expansion his COM
spany was able to furnish the United
came into the war without facilities
to make "a pound Of powder"
Du Points Prosperous.
The du Points sat calmly and un-
protestingly yesterday through three
hours of examination by Senator
Bone, Democrat, Of Washington, con-
scerning the capital structure, earnings,
sprofits and dividends Of their COM
Apany before, during and after the war
With Pierre answering most Of the
4questions and the others listening
Salertly, it was testified that the cor
porations net taxable income jumped
Afrom $4,642,534 In 1913, the year be-
Nfore the outbreak of the war, to $127,-
a674,725 in 1916.
4 The return on invested capital in
Screased from 1886 per cent to 63.05
per cent In the same period.
During the four years, 1916-l919 in
elusive, the corporation paid its COM
: mon and debenture stockholders an
average yearly dividend Of 40 per cent
yalthough the regular dividend was
only per cent.
5ss Extra dividends ranging up to 80
per cent were declared In this period
and the extras combined with the
regular dividends payments for the
Aentire year Of 1915 amounted to 100
per cent
Z The total net profits of $6,8S9, 500
were made by the corporation during
the war in the manufacture of T. N.
1T. in one plant, the total deprecated
Investment in which amounted to
s$360,000.
Munitions Levy Protest.
4 Evidence that the du Pont Co. had
strongly protested a Federal muni-
stions levy during one of its most
prosperous years also was placed be-
fore the investigators.
Z The munitions taxa $l3,1S7,o55
slevy-was paid in 1916, the year the
company was offering 100 per cent
dividends on its common stock. Evi-
dence was presented that the du Points,
In o memorandum to stockholders,
had termed 1t "regrettable that the
United States Government has made
our stock the victims of excessive
taxation"
Z Senator Bone at this point snatched
on his glasses and stared at Pierre
5du Pont, who sat directly before him.
r DO you think such a tax excessive
during a year in which you paid
this 100 per cent dividend?" he asked
sharply.
1renee du Pont, who was puff
fing on a pipe at the right of his
brother, interpoSed:
s. The tax was retroactive" Irenee
explained. 1T was slipped over after
our contracts were made. Don't YOU
think that was unfair?"
But even with this tax" said
Bone, you made huge earnings.
Weren't you satisfied"
II don't think it was fair to single
us out" Irenee replied composedly.
We. paid about 80 per cent of that
retroactive tax"
Il came down to Washington to
see Senator Salisbury of Delaware
about it" Pierre smiled He told