In 1923 the company, jointly with French interests, organized du Pont Cellophane Co., obtaining 52 percent of its common stock.

In August 1924 the company acquired the business and assets of General Explosives Co. with plant at Carl Junction, Mo. In that same month it also acquired 63 percent of the capital stock of Lazote, Inc., manufacturers of synthetic ammonia under the Claude patents.

In 1926 the company merged 46 percent of its 63 percent stock interest in Lazote, Inc., into a new company, du Pont National Ammonia Co. for which it obtained a 51 percent interest. The new company then acquired a 100 percent stock ownership in National Ammonia Co., Inc., a leading distributor of anhydrous ammonia to the refrigeration trade, and a 79% percent stock interest in the Pacific Nitrogen Corp., a synthetic ammonia producer in Seattle, Wash. National Ammonia Co., Inc., held or shortly thereafter acquired a majority interest in Michigan Ammonia Works and Pacific Ammonia & Chemical Works.

The parent company subsequently acquired full control of Lazote, Inc., and du Pont National Ammonia Co. and full control of Pacific Nitrogen Corp. through National Ammonia Co., Inc. The name of Lazote, Inc., was then changed to du Pont Ammonia Corp. and it acquired the assets of du Pont National Ammonia Co. which was then dissolved. Du Pont Ammonia Corp. was dissolved in 1931 and National Ammonia Co., Inc., was dissolved in 1935, the assets of these companies being directly acquired by the parent company.

In October 1924 the company entered the photographic film business when it got together with French interests and formed du Pont Pathe Film Manufacturing Corp., acquiring a majority interest in the stock of the new company. It later acquired the minority interest from Pathe Film Co. In 1941 du Pont Pathe Film Manufacturing Corp. was dissolved and its assets transferred to E. I. du Pont de Nemours Co.

In 1925 the du Pont Co. formed du Pont Viscoloid Co. to which was transferred the company's celluloid plants in Arlington, N. J., Poughkeepsie, N. Y., and Norwich, Conn., and the plant of the Viscoloid Co., Inc., at Leominster, Mass. In this transaction the du Pont Co. received all of the preferred stock and 83 percent of the common stock of du Pont Viscoloid Co. The full control of the company was acquired in 1928.

In 1925 the company acquired a 50 percent stock interest in Eastern Alcohol Corp. which it formed jointly with Kentucky Alcohol Corp. to construct an alcohol plant at Deepwater, N. J. The du Pont Co. acquired full control of Eastern Alcohol Corp. in 1931.

In November 1927 the company acquired the assets and business of Excelsior Powder Co. with plant at Kansas City, Mo.

In 1928 the company acquired a 50 percent stock interest in Bayer-Semesan Co., Inc., which was formed jointly with Winthrop Chemical Co. The du Pont Co. in 1943 acquired the remainder of the outstanding common stock of the new company and changed its name to du Pont-Semesan Co. This company produces seed disinfectants and fungicides.

In 1928 the company, through a subsidiary, du Pont Viscoloid Co., acquired a 50 percent stock interest in Pittsburg Safety Glass Co. which was formed jointly with Pittsburg Plate Glass Co. to manufacture safety glass for automobiles. However, the company's interest in this concern was sold to Pittsburgh Plate Glass Co. in 1931.

In 1928 the company formed Old Hickory Chemical Co., in which a 50 percent stock interest was acquired, to manufacture carbon bisulphide at Old Hickory, Tenn.

The company's position in the chemical industry was considerably increased when it acquired the Grasselli Chemical Co. (Ohio) in 1928. This company was founded in 1839 and operated 23 plants for the production of acids and heavy chemicals, lithopone and other pigments, zinc and zinc products and explosives. The du Pont Co. acquired the explosives plant and business of the Grasselli Powder Co., a subsidiary of the Grasselli Chemical Co. The Canadian plant and business of the Grasselli Co. were transferred to Canadian Industries, Ltd., a 47 percent controlled affiliate of the du Pont Co., and the remaining business constituting the bulk of the activities of the Grasselli Co. were transferred to the newly formed The Grasselli Chemical Co. (Delaware). To this new company was added the acid and heavy chemical business formerly conducted by the du Pont Co., together with plants in Pennsylvania and New Jersey.

In 1929 the company acquired Krebs Pigment & Chemical Co. In 1931 the company formed Krebs Pigment & Color Corp. to consolidate Krebs Pigment

& Chemical Co., the pigment and dry color division of its subsidiary Grasselli Chemical Co., and the pigment business of Commercial Pigments Corp. Krebs Pigment & Color Corp. was dissolved in 1942, and its assets were transferred to the du Pont Co.

In May 1930 the company further strengthened its position in the chemicals industry when it acquired the properties and business of the Roessler & Hasslacher Chemical Co. of New York, founded in 1882, manufacturers and distributors of a large number of important specialty chemicals.

In August 1930 the company acquired a 51 percent interest in Kinetic Chemicals, Inc., which was formed jointly with General Motors Corp. to develop the manufacture and sale of refrigerant chemicals and allied products.

The

In August 1931 the company acquired the dyestuffs and organic chemical properties and business of the Newport Co. with plants at Carrollville, Wis., and Passaic, N. J. By this acquisition the company obtained a 72 percent common stock interest in Acetol Products, Inc., manufacturers of "Cel-O-Glass." latter company was dissolved in 1935, and its assets acquired by the du Pont Co. In July 1932 the company acquired a 55 percent interest in Gardinol Corp. which was formed jointly with Procter & Gamble Co. to exploint cleaning materials in the textile industry.

Also, in 1932, the company through its subsidiary Grasselli Chemical Co., acquired a 60 percent interest in a company in Argentina engaged in importing and processing sulfur and producing carbon bisulphide. Full control of this subsidiary was obtained in 1933.

In 1933 the company acquired 91 percent of the outstanding preferred stock and 66 percent of the common stock of Remington Arms Co., Inc., a manufacturer of sporting goods, ammunition, cutlery, etc. The following year, the company acquired the principal assets and business of Peters Cartridge Co. through Remington Arms Co., Inc. The company now owns 99 percent of the preferred and 66 percent of the common stock of Remington Arms Co., Inc.

In 1943 the company added to its photographic products business by acquisition of the assets and business of Patterson Screen Co., manufacturer of X-ray and fluoroscopic screens. This business is now conducted by the photo products department of the du Pont Co.

In 1944 the company acquired the Tacoma, Wash., plant of Latimer-Goodwin Chemical Co.

As a result of all of the foregoing acquisitions, together with the research and development of its chemical and allied products, the company's diversification of its business since 1915 is reflected in the following departmental organization for the manufacture of its products:

Ammonia department: Ammonia, urea, urea fertilizers, methanol, higher alcohols, glycol, organic acids, hydrogenated products, antifreezes, and food chemicals. Electromechanicals department: Electro and industrial chemicals, including solvents (for metal cleaning, dry cleaning and extraction) formaldehyde, cyanides, sodium, peroxides, ceramic colors, refrigerants, fumigants, and insecticides.

Explosives department:

Explosives division: Commercial explosives, blasting accessories and miscellaneous chemicals.

American glycerin division: Liquid and solidified nitroglycerin and oil and gas well torpedo service.

Military explosives division: Military and sporting powders. Fabrics and finishes department:

Fabrics division: Coated fabrics, washable window shade fabrics, and impregnated fiber products.

Finishes division: Finishes for all industrial transportation, marine and household purposes, including solvents, lacquers, enamels, paints, varnishes, automotive waxes, and polishes.

Grasselli chemical department: Acids, inorganic heavy chemicals, zinc and zinc products, adhesives, fungicides, wood preservatives, insecticides, weed killers, and agricultural chemicals.

Organic chemicals department: Dyestuffs, tetraethyl lead, neoprene, ethyl alcohol, refrigerants, camphor, and other organic chemicals for the rubber, petroleum, textile, paper, perfumery, and other industries.

Photo products department: Motion picture, X-ray, portrait, lithographic, and microfilms and fluorescent screens.

Pigments department: Dry colors and various pigments.

Plastics department: Plastics and fabricated articles such as combs and tooth brushes.

Rayon department:

Rayon division: Viscose rayon yarn, staple fiber and tire yarn.

Acetate division: Acetic acid, acetate rayon yarn, acetate staple fiber and other acetate products.

Cellophane division: Cellophane and cellulose products.

Nylon division: Nylon and nylon yarn.

The table which follows shows the financial and operating record of E. I. du Pont de Nemours & Co. for the last 20 years. It shows for each year the average number of employees, the average invested and borrowed capital (capital stocks, surplus, and long-term debt), sales, net income, rates of return on invested and borrowed capital, and earnings per share and dividends per share on outstanding common stock.

E. I. du Pont de Nemours & Co.-Financial and operating record, 1925–44

Not including employees of Government-owned plants operated by du Pont; 45,000 employed in other plants in 1944.

2 Average of investment at beginning and end of year in common, preferred, and debenture stocks, surplus and long-term debt, excluding appreciation of investment in General Motors Corp. stock and stocks of certain Canadian companies. This appreciation ranged from $36,288,893 in 1925 to $189,378,242 in 1944, for General Motors stock and from $2,015,358 in 1925 to $4,364,113 in 1944 for Canadian investments. After providing for payment of Federal income and excess-profits taxes.

4 Present share basis.

$3.45 paid in cash and the balance in common stock of General Motors Corp.

The remarkable growth of the company during this period is indicated by the fact that the average number of employees has increased over 4 times from approximately 15,000 in 1925 to more than 63,000 in 1944; the average invested and borrowed capital of $553,900,000 in 1944 is 24 times greater than in 1925; and in 1944 the sales of $622,100,000 were the largest in the company's history and reflect an increase of more than 7 times the amount of sales in 1925. The table also shows that the company's operations have been highly profitable. Throughout the period its average earnings were equivalent to nearly 15 percent on the invested and borrowed capital, the annual return ranging from 6.57 percent in 1932 to 24.05 in 1929 after providing for all costs and expenses of doing business and providing for the payment of Federal income and all other taxes.

The table shows that the company's earnings per share on its common stock and the dividends paid per share of common stock averaged, respectively, $5.17 and $4.55 per annum. However, these averages are based on the number of shares outstanding during the respective years after stock split-ups of 2 for 1 in 1926 and 31⁄2 for 1 in 1929. On September 13, 1926, two shares of no-par-value common were issued to stockholders for each share of common stock of $100 par value then outstanding, and on January 21, 1929, 31⁄2 shares of common stock of the par value of $20 per share were issued for each share without par value. On the basis of the original shares outstanding in 1925, each common stockholder of the company for the 20-year period would have earned an average of $31.97 per share per annum, and would have received cash dividends averaging $28.12 per share per annum on his original holdings.

The total net income to the company shown on the preceding table includes a substantial amount each year from sources other than from the sales of its products. For example, for the last 5 years such other income averaged approximately 40 percent of the total net income for those years, and consisted principally of the income to the company from its investment in common stock of General Motors Corp.

As previously stated, the company acquired a large interest in General Motors Corp. in 1917. The investment in the common stock of this company has been highly profitable to the Du Pont Co. The dividends received on this stock for the last 18 years averaged $28,360,744 per annum, and was equivalent to an average return of 49 percent on the average investment of $57,533,596 in this stock during this time.

The following table gives the details concerning the number of shares of common stock of General Motors Corp. owned by the Du Pont Co., the percentage of ownership, the investment in the stock, the dividends received, and the return on the investment for each of the years 1927-44.

E. I. du Pont de Nemours & Co.-Return on investment in common stock of General Motors Corp.