Alfred I. duPont Testamentary Trust
Encyclopedia
The Alfred I. duPont Testamentary Trust is a non-profit organization created by philanthropist Alfred I. du Pont
in 1935, devoted to supporting the Trust's sole charitable beneficiary, the Nemours Foundation
. As of December 31, 2008, the trust’s value was $3.25 billion and employed nearly 3,500. At the end of January, 2009, it had improved to $4.6 billion, but was still down from $5.5 billion in 2007.
At the time, duPont's assets included seven Florida National Bank
s, significant landholdings in Northwest Florida, E. I du Pont de Nemours Company
shares, and the Nemours
and Epping Forest estates
. The value of the assets was approximately $40 million. The duPont Trustees, specifically Edward Ball, created the St. Joe Paper Company and began operating a paper mill in 1938. The trust had a 1939 value of $72.5 million.
A federal law was enacted in 1966 that barred non-profit organizations from owning both operating companies and banking institutions. Ed Ball fought the legislation for several years, even testifying before a congressional subcommittee, but in the end, he reluctantly sold the banks.
After Jessie Ball du Pont died in 1970, Ball arranged the sale of Epping Forest to his friend, Raymond K. Mason
. Before Charter Company
was broken up by bankruptcy in the late 1980s, Mason sold Epping Forest to Herb Peyton
and Gate Petroleum
in 1984. Peyton is presently a duPont trustee.
; the Nemours Children’s Hospital in Jacksonville; the Nemours Children's Clinics in Delaware, Florida, Pennsylvania & New Jersey; and the Nemours Mansion and Gardens
.
and Florida East Coast Industries succeeded Ball and was chairman of the trust for 23 years. Hugh Durden, corporate trustee since 1997, now a retired executive from Wachovia Bank, was elected chairman on January 24, 2005.
The St. Joe Company
was originally owned by the DuPont Trust. After the company went public, the duPont trust owned 70% of the 30.6 million shares outstanding. The company’s stock did well, rising from 53⅝ in February, 1995 to 115½ in December, 1997. The corresponding trust value increased from $1.1 billion to $2.4 billion. The problem was that DuPont’s will stipulated an annual disbursement of the amount equal to 3% of the trust’s value. St. Joe's annual dividend of 20¢ only generated $4.26 million and the required payout was over $72 million, so the trust was forced to sell 4 million shares to invest in a security producing substantially more income than St. Joe. That left a 57% stake, which was reduced by additional stock sales to 23%. On May 28, 2004, the trust filed paperwork to divest as many as 12 million more shares, leaving an 8% ownership.
On October 9, 2000, St. Joe divested its 54% interest in Florida East Coast Industries by distributing FECI Class B common shares to St. Joe shareholders; the DuPont Trust received a large block of FECI stock.
A new Chief Investment Officer was hired in 2000 to manage the trust's portfolio. David Gonino proposed a new investment policy and the board approved it: the trust would not own more than 5% of any company, and no single investment could account for more than 5% of the trust's value.
in Jacksonville, Florida
which was scheduled to open October 1, 2008.
General contractor Elkins Constructors
began work on the trust’s new home on July 17, 2007; noted architect Graham Gund
contributed to the design. The $20 million building features a pyramid-shaped skylight and was described in the local newspaper as opulent.
According to Hugh Durden, chairman of its board of trustees, "We were looking for a 100-year building. We were looking for timeless design that is both useful and enduring. If you're going to be here for decades, that becomes a cost-effective investment."
The most outstanding aspect of the structure is its ability to conserve. The building was designed using LEED
principles, a set of standards for environmentally sustainable construction developed by the United States Green Building Council
. The complex features:
Alfred I. du Pont
Alfred Irénée du Pont was an American industrialist, financier and philanthropist. A member of the influential Du Pont family, Alfred du Pont first rose to prominence through his work in his family's Delaware-based gunpowder manufacturing plant, E. I...
in 1935, devoted to supporting the Trust's sole charitable beneficiary, the Nemours Foundation
Nemours Foundation
The Nemours Foundation is a non-profit organization in Jacksonville, Florida, created by philanthropist Alfred I. du Pont in 1936, and dedicated to improving the health of children. The Foundation operates the Alfred I...
. As of December 31, 2008, the trust’s value was $3.25 billion and employed nearly 3,500. At the end of January, 2009, it had improved to $4.6 billion, but was still down from $5.5 billion in 2007.
History
The Alfred I. duPont Testamentary Trust was created as per Alfred I. duPont's will after his death in 1935.At the time, duPont's assets included seven Florida National Bank
Florida National Bank
Florida National Bank , founded in 1905, grew to became the second largest commercial bank in Florida. Florida National Group was acquired in 1990 by First Union Corporation, which was renamed Wachovia in 2001.-Early years:...
s, significant landholdings in Northwest Florida, E. I du Pont de Nemours Company
E. I du Pont de Nemours Company
E. I du Pont de Nemours Company was the holding company formed in the early 1900s by T. Coleman du Pont, Alfred I. du Pont and Pierre S. du Pont to save the family business from being bought out by a rival....
shares, and the Nemours
Nemours Mansion and Gardens
The Nemours Mansion and Gardens is a country estate with jardin à la française formal gardens and a classical French mansion located in Wilmington, Delaware. The mansion resembles a Château and contains more than seventy rooms spread over five floors occupying nearly . It shares the grounds with...
and Epping Forest estates
Epping Forest (Jacksonville, Florida)
Epping Forest was an historic, estate in Jacksonville, Florida where a luxurious riverfront Mansion was built in the mid-1920s by industrialist Alfred I. du Pont and his third wife, Jessie Ball du Pont. It was added to the U.S...
. The value of the assets was approximately $40 million. The duPont Trustees, specifically Edward Ball, created the St. Joe Paper Company and began operating a paper mill in 1938. The trust had a 1939 value of $72.5 million.
A federal law was enacted in 1966 that barred non-profit organizations from owning both operating companies and banking institutions. Ed Ball fought the legislation for several years, even testifying before a congressional subcommittee, but in the end, he reluctantly sold the banks.
After Jessie Ball du Pont died in 1970, Ball arranged the sale of Epping Forest to his friend, Raymond K. Mason
Raymond K. Mason
Raymond K. Mason has been an American business leader for nearly sixty years, almost 40 as head of the Charter Company in Jacksonville, Florida. Charter was in the Fortune 500 for 11 years beginning in 1974 and ranked 61st in 1984.-Personal life:...
. Before Charter Company
Charter Company
The Charter Company of Jacksonville, Florida was a conglomerate with more than 180 subsidiaries that was in the Fortune 500 for 11 years beginning in 1974 and ranked 61st in 1984 before it sought bankruptcy protection in late 1984 and spiraled into obscurity....
was broken up by bankruptcy in the late 1980s, Mason sold Epping Forest to Herb Peyton
Herb Peyton
Herbert Hill "Herb" Peyton is an American entrepreneur and founder of Gate Petroleum in Jacksonville, Florida, which had sales of $1.44 billion in 2008...
and Gate Petroleum
Gate Petroleum
Gate Petroleum is a privately held diversified corporation headquartered in Jacksonville, Florida, the 11th largest in Florida in 2010. In FY 2008, the company ranked #338 on the Forbes list of America's Largest Private Companies...
in 1984. Peyton is presently a duPont trustee.
Nemours
The Nemours Foundation operates the Alfred I. duPont Hospital for Children in Wilmington, DelawareWilmington, Delaware
Wilmington is the largest city in the state of Delaware, United States, and is located at the confluence of the Christina River and Brandywine Creek, near where the Christina flows into the Delaware River. It is the county seat of New Castle County and one of the major cities in the Delaware Valley...
; the Nemours Children’s Hospital in Jacksonville; the Nemours Children's Clinics in Delaware, Florida, Pennsylvania & New Jersey; and the Nemours Mansion and Gardens
Nemours Mansion and Gardens
The Nemours Mansion and Gardens is a country estate with jardin à la française formal gardens and a classical French mansion located in Wilmington, Delaware. The mansion resembles a Château and contains more than seventy rooms spread over five floors occupying nearly . It shares the grounds with...
.
Leadership
Following Alfred du Pont’s death in 1935, Edward Ball controlled the trust until his own death in 1981. W.L. Thornton, former CEO of St. Joe CompanySt. Joe Company
The St. Joe Company is a land development company formerly headquartered in Jacksonville, Florida, United States. It is Florida's second largest private landowner, owning about in the state at the end of 2009.-Beginning:...
and Florida East Coast Industries succeeded Ball and was chairman of the trust for 23 years. Hugh Durden, corporate trustee since 1997, now a retired executive from Wachovia Bank, was elected chairman on January 24, 2005.
Current
- Hugh M. Durden, 1997
- Winfred L. Thornton, 1967
- Herbert H. PeytonHerb PeytonHerbert Hill "Herb" Peyton is an American entrepreneur and founder of Gate Petroleum in Jacksonville, Florida, which had sales of $1.44 billion in 2008...
, 1995 - John F. Porter III, 1995
- W. T. Thompson III, 1995
- John S. Lord, 2000
Past
- Jessie Ball du Pont, 1939–1970
- Ed Ball, 1939–1981
- Reginald S. Huidekoper, 1939–1943
- Elbert Dent, 1943–1965
- William B. Mills, 1965–1986
- Thomas S. Coldewey, 1965–1994
- Alfred duPont Dent, 1965–1997
- A. L. Hargraves, 1965–1966
- Jacob C. Belin, 1967–2000
Major investments shift
The Trust was valued at $1.9 billion in January, 1996.The St. Joe Company
St. Joe Company
The St. Joe Company is a land development company formerly headquartered in Jacksonville, Florida, United States. It is Florida's second largest private landowner, owning about in the state at the end of 2009.-Beginning:...
was originally owned by the DuPont Trust. After the company went public, the duPont trust owned 70% of the 30.6 million shares outstanding. The company’s stock did well, rising from 53⅝ in February, 1995 to 115½ in December, 1997. The corresponding trust value increased from $1.1 billion to $2.4 billion. The problem was that DuPont’s will stipulated an annual disbursement of the amount equal to 3% of the trust’s value. St. Joe's annual dividend of 20¢ only generated $4.26 million and the required payout was over $72 million, so the trust was forced to sell 4 million shares to invest in a security producing substantially more income than St. Joe. That left a 57% stake, which was reduced by additional stock sales to 23%. On May 28, 2004, the trust filed paperwork to divest as many as 12 million more shares, leaving an 8% ownership.
On October 9, 2000, St. Joe divested its 54% interest in Florida East Coast Industries by distributing FECI Class B common shares to St. Joe shareholders; the DuPont Trust received a large block of FECI stock.
A new Chief Investment Officer was hired in 2000 to manage the trust's portfolio. David Gonino proposed a new investment policy and the board approved it: the trust would not own more than 5% of any company, and no single investment could account for more than 5% of the trust's value.
Headquarters
The headquarters of the trust is a 40,000 ft², five-floor building on the St. Johns riverfrontSt. Johns River
The St. Johns River is the longest river in the U.S. state of Florida and its most significant for commercial and recreational use. At long, it winds through or borders twelve counties, three of which are the state's largest. The drop in elevation from the headwaters to the mouth is less than ;...
in Jacksonville, Florida
Jacksonville, Florida
Jacksonville is the largest city in the U.S. state of Florida in terms of both population and land area, and the largest city by area in the contiguous United States. It is the county seat of Duval County, with which the city government consolidated in 1968...
which was scheduled to open October 1, 2008.
General contractor Elkins Constructors
Elkins Constructors
Elkins Constructors is a privately held corporation headquartered in Jacksonville, Florida founded in 1955 by Martin Elkins. Purchased in 1984 by a group of investors which included current CEO, Barry Allred. The company is one of Florida's largest privately held construction companies and the...
began work on the trust’s new home on July 17, 2007; noted architect Graham Gund
Graham Gund
Graham de Conde Gund is an American architect and the president of the Gund Partnership, an American architecture firm based in Cambridge, Massachusetts, and founded by Gund in 1971...
contributed to the design. The $20 million building features a pyramid-shaped skylight and was described in the local newspaper as opulent.
According to Hugh Durden, chairman of its board of trustees, "We were looking for a 100-year building. We were looking for timeless design that is both useful and enduring. If you're going to be here for decades, that becomes a cost-effective investment."
The most outstanding aspect of the structure is its ability to conserve. The building was designed using LEED
Leadership in Energy and Environmental Design
Leadership in Energy and Environmental Design consists of a suite of rating systems for the design, construction and operation of high performance green buildings, homes and neighborhoods....
principles, a set of standards for environmentally sustainable construction developed by the United States Green Building Council
United States Green Building Council
The U.S. Green Building Council , co-founded by Mike Italiano, David Gottfried and Rick Fedrizzi in 1993, is a non-profit trade organization that promotes sustainability in how buildings are designed, built, and operated...
. The complex features:
- The pyramid skylight illuminates the atrium during the day and the sun provides warmth during cool months.
- Many interior walls use opaque glass to share light between areas.
- Sensors turn off lights in empty rooms.
- The Air conditioning and heating systems are high efficiency and limit power usage during peak demand periods.
- Rainfall is collected and stored in three 10K gallon cisterns underground which are utilized by the lawn sprinkler system.
- Lavatories have “dual flush” toilets.
- Flooring uses Bamboo, which is fast growing, saving hardwood species
- The building contains an area for securing bicycles ridden to work, and a facility with showers for changing clothes.
- Multiple bus routes stop within a three block radius of the center; three within a block.