The San Francisco call., 1904-12-22
POWDER TRUST
MAKES DENIALS
Says 1t Has Not COnspired
Nor Threatened to Wreck
PeytOn Chemical Company
LOANS LARGE
Du POnt Affidavit Shows Ad-
vances of Nearly a Half
Million for Local Plant

The powder trust had it's day in court
yesterday with q showing in refuta tion
of the charges of the Peyton Chem
ical Company and in support of its
demand for an inspection of the books
before determining whether or not it
shall pay 100000 assessment upon its
shares Of Peyton stock. The hearing,
before Judge Kerrigan, occupied all of
the day. 1t will be resumed on Friday
morning.
At the opening yesterday Attorney
e. s. Pillsbury asked for a continu-
ance, which was denied He said that
the California Powder Company. OF
which he is practically the executive
mead, had been charged with being a
party to conspiracy to wreck the
chemical company, and he wanted an
opportunity to deny the charge. The
president of the concern, Captain John
Birmingham, is now on his way from
Washington. Garret McEnerney, at
torney for the Du Pont Company in the
original litigation, also asked that he
be permitted TO participate in the final
arguments. Both Pillsbury and Me-
Enerney asking for delay pleaded that
they had been busy with the Dolbeer
case.
A half-dozen counter affidavits for
the e. 7. Du Pont de Nemours Powder
Company were then read to the court,
the principal one being that of Pierre
s. Du Pont, treasurer and assistant
secretary of the big New Jer-
sey corporation. He admitted the
company's purchase of stock in
the various California powder COM
panies. excepting the Judson Dyna-
mite Company, but said that the pur
chases had been made in Delaware and
that the company had done no business
in this State. He denied that there had
been any conspiracy to wreck the
chemical company, but admitted that
a proposition had been made to acquire
control Of the local corporation, the D1
Points believing that a change in man
agcment would be for the best interests
of all the stockholders.
LOANED LARGE SUMS.
His recital of the financial transac-
tions between w. G. Peyton and I. c.
Du Pont president of the trust, threw
al interesting light upon the relations
between the companies. He declared
that in January. 1901, Peyton represent
eG that $500, 900 cash was ali that was
needed to start the Peyton Chemical
Company, and upon his representations
the Du Points subscribed and paid for
$500 900 worth of stock. Du POM eX-
pressed the Delle1 tnal the TeindllluSI
OF the stock, $500 shares, was issued to
Peyton without payment Afterward.
K is said, Peyton represented that more
money was needed, and the Du Points
loaned him S75. 900. and thereafter he
borrowed SIS, 900 more from the Bank
Of California. In 1902, ii is said. Pey-
ton said $4,000 more was needed to
complete the works. He got that, and
returned for another loan of $4,000.
saying that it would not all be needed,
as the earnings would be sufficient to
meet part of the debt.
When the 100000 loan was made, it
is said. it was agreed that there should
be, no more demands for money, and
the assessment of $40 a share on the
pu Points 1000 shares is considered an
evasion Of that agreement. The eX-
PLANTATION of the California Powder
Company's breaking of the flve-year
contract for acids. on which the Pey-
ton Company has sued for S5I2,OGO dam
ages. is given in the statement that
the Peyton Company failed for three
years to deliver any acid under the
contract.
CHANGE NECESSARY.
m, pont saws that the situation has