E.I. Du Pont De Nemours & Company Minute Books 2530
Total Page:16
File Type:pdf, Size:1020Kb
E.I. du Pont de Nemours & Company minute books 2530 This finding aid was produced using ArchivesSpace on September 14, 2021. English Describing Archives: A Content Standard Manuscripts and Archives PO Box 3630 Wilmington, Delaware 19807 [email protected] URL: http://www.hagley.org/library E.I. du Pont de Nemours & Company minute books 2530 Table of Contents Summary Information .................................................................................................................................... 3 Historical Note ............................................................................................................................................... 3 Scope and Content ......................................................................................................................................... 7 Administrative Information ............................................................................................................................ 8 Controlled Access Headings .......................................................................................................................... 8 Collection Inventory ....................................................................................................................................... 9 Parent Companies ........................................................................................................................................ 9 E.I. du Pont de Nemours & Company Stockholders and Directors Meeting Minutes ............................. 9 E.I. du Pont de Nemours & Company Stockholders and Directors Meeting Minutes ............................. 9 E.I. du Pont de Nemours & Company Stockholders and Directors Meeting Minutes ........................... 10 E.I. du Pont de Nemours & Company, Executive Committee Minutes ................................................. 10 E.I. du Pont de Nemours & Company, Finance Committee .................................................................. 10 E.I. du Pont de Nemours & Company, "A" Bonus Committee ............................................................. 11 E.I. du Pont de Nemours Powder Company (Delaware) .......................................................................... 11 E.I. du Pont de Nemours Powder Company (New Jersey) ...................................................................... 11 Directors & Shareholders Meeting Minutes .......................................................................................... 11 Executive Committee Minutes ............................................................................................................... 12 - Page 2 - E.I. du Pont de Nemours & Company minute books 2530 Summary Information Repository: Manuscripts and Archives Creator: E.I. du Pont de Nemours & Company Title: E.I. du Pont de Nemours & Company minute books ID: 2530 Date [inclusive]: 1899-1940 Physical Description: 11 Linear Feet Language of the English . Material: Abstract: The E. I du Pont de Nemours & Company minute books document an important era in the history of the company from just before the turn of the twentieth century through the 1930s. The DuPont Company in this time went through many changes in structure under the leadership of cousins T. Coleman du Pont, Alfred I. du Pont, and Pierre S. du Pont. ^ Return to Table of Contents Historical Note E.I. du Pont de Nemours & Company was incorporated in Delaware on October 23, 1899, as the successor to a traditional family partnership first established in Paris on April 21, 1801, that went on to become a leader in the U.S. gunpowder industry. The business underwent two reincorporations and major restructurings, the first on February 26, 1902, and the second on September 4, 1915. The first transformed a family company into a more modern departmentalized firm with significant outside stock holdings, a change that allowed it to dominate the U.S. explosives industry, replacing a cartel of small and medium-sized firms with a large, centrally-administered one. The second, a breakup of the first company under Progressive Era antitrust action against its monopoly position in explosives, had the paradoxical effect of permitting it to evolve further into a multi-divisional and later multinational manufacturer of a wide array of chemicals and chemical products. It remains one of the major players in the international chemical industry. The first incorporation of 1899 was the work of Eugene du Pont, considered the senior member of both the firm and family. It differed little from the change from partnership to corporation undertaken by many old family firms in response to the great merger movement of the late 1890s. The seven partners received stock for their fractional interests and became stockholders rather than partners, but there was no investment by outsiders. The five senior shareholders, Eugene du Pont, Alexis I. du Pont, Francis G. - Page 3- E.I. du Pont de Nemours & Company minute books 2530 du Pont (Frank) and Colonel Henry A. du Pont each held 20% of the company, while junior partners, Charles I. du Pont and Alfred I. du Pont each received 10%. With the death of company president, Eugene du Pont on January 28, 1902, the Du Pont Company was thrown into a time of great uncertainty. At their meeting following Eugene's funeral, none of the partners would agree to take the reins of the company (Alfred was absent from these meetings). A few were too old or too far removed to take over, and Colonel Henry A. du Pont was far more concerned with his political career. This left the young powder man, Alfred. Unfortunately, none of the other partners wished to have him at the helm of the company. It was then decided that the company would be sold to longtime rival and competitor, the Laflin & Rand Powder Company. J. Armory Haskell, formerly the head of the Repauno Chemical Company, the explosive firm begun by Pierre S. du Pont's father Lammot du Pont, was president of Laflin & Rand. Plans were also made at this time to turn the leadership of Du Pont over to Hamilton M. Barksdale, another successful Repauno man. Barksdale would be taxed with arranging the sale, and if a price was not agreed upon, he would then manage the company. What was not predicted by the partners at Du Pont was Barksdale's demand that a du Pont head the firm as a condition of the sale. The stockholders met once more and finally agreed to sell for $12 million, formally appointing Barksdale as the agent to facilitate the sale of the company to Laflin & Rand. Other options discussed were T. Coleman du Pont, a member of the Louisville branch of the family and successful in his own right in the electric streetcar railway business, coming to the company; however it was widely known that Frank du Pont would not approve. One more meeting would need to be held the next day with Alfred in attendance before all could be finalized. The following day, Alfred arrived from the powder yards in his work clothes and listened to Frank's proposal for selling. Alfred then proposed a motion to sell to the highest bidder, not just Laflin & Rand. The meeting concluded and it seemed settled that the company would leave family hands for the first time in a century. As the shareholders were leaving, Alfred spoke up with a plan that he would buy the company. Much discussion ensued with Frank du Pont being the most vocal dissenter, insisting Alfred could not have the company. Finally, Colonel Henry A. du Pont spoke up and gave his blessing, feeling it was his right to be able to buy Du Pont. Alfred then met with his cousin T. Coleman to discuss his plan to buy the company with Coleman's help. Coleman agreed to go along with the proposal on two conditions. First, he would be the majority stockholder and the firm would be reorganized and, second, that his cousin Pierre S. du Pont be brought on board as the financial expert. The plan the cousins devised was to purchase the company for $12 million in bonds and issue stock which would increase in value as the company was reorganized and grew. They would issue 4% thirty year bonds to the partners in the old company, and new capital stock of $20 million to themselves for later profit. This plan was taken to the partners and approved. However, T. Coleman became concerned that the nature of the bonds as a first lien on the property included in the sale would handicap any future attempt to raise money by junior bonds. A second plan was then drawn up to replace the first lien bonds with notes that would guarantee the old stockholders 4% annual interest. In return for surrendering the first lien, they would also receive 25% of the new company's stock. The deal was closed on February 10, 1902, and finalized on March 1, 1902. The old company would sell its entire assets at a value of $24 million, $12 million in the 4% notes, and $12 million in stock, of which Coleman received 36%, Alfred and Pierre 18% each, and the remaining 24% divided among the stockholders of the old company, including the estate of Eugene du Pont. The three cousins were now in control of - Page 4- E.I. du Pont de Nemours & Company minute books 2530 the family business and free to reorganize. First, the cousins incorporated the E.I. du Pont de Nemours Company in Delaware on February 26, 1902. On March 1, it acquired all the assets of the old 1899-1902 corporation. T. Coleman du Pont became president of the new company, Alfred I. du Pont vice president and general manager, and finally Pierre S. du Pont as treasurer. With these transactions completed,