The San Francisco call., 1904-12-17
LOCAL COMP ANY
FIGHTING TRUST
Peytons Say Powder Monop-
oily Is Scheming to Ruin
What 1t Cannot Control
AFFIDAVITS ARE READ
Chemical Concern Declares
Its Destruction Is Sought
as a Dangerous Competitor

That the powder trust Is scheming to
crush a competitor that it cannot con-
troll is the startling cause assigned by
the Peyton Chemical Company for the
litigation In which ii has been involved
by the E I. du Pont de Nemours Pow
der Company Of New Jersey.
y The trust Is the owner Of 5000 shares
Of the chemical oompany's stock This
has been advertised for sale for the
payment Of a delinquent assessment Of
$50, 900. The sale was to have taken
place last Saturday, but the New Jer-
sey corporation got q temporary in
junction from Judge Kerrigan, and yes
terday was set for the Peyton company
to show cause why the injunction
should not be made permanent. The
hearing was not finished. 1t will 60 on
this morning, the Peytons urging
hasty determination because Of q debt
of 3113. .906 25 which must be paid on
December 81 This debt is one of the
bases of the charge of conspiracy to
wreck the local concern 1t is owed to
the Du Points for money loaned, and II
cannot be paid unless the Du Pont COM
pany pays its assessment on the Pey-
ton shares or permits them to be sold
If the assessment is paid the Peyton
company promises to pay the notes; II
1T is not the chemical company says
It will lose $293, 900 IN collateral, includ-
ing w. c. Peyton's 1900 shares of stock,
which viii give the trust its sought-for
control.
These facts and many others bearing
upon the merits Of the case and the
charges Of intent to ruin the chemical
company are set forth in the volumin-
Gus afidavits of the officers and direct
President w. c. Peyton and Secretary
j. P. Wallace, read In court yesterday.
Peyton says that he is the owner of
stock worth s257, 900, upon which he has
paid the assessment of $40 share.
TO PREVENT PAYMENT.
He declares that the suit was brought
by the Du Pont company for the pur-
pose OF preventing the plaintiff from
paying its debts on December 81 in the
hope that it can thereby obtain col
lateral Of the value of $293,000 and ac-
Quire control of the defendant corpora
ton, wreck it and thereby avoid COM
petition which would confront the trust
If the chemical company remains in
business. Peyton says he has devoted
his money and energies to his company
until it has become the largest manu-
facturer of strong acids in the United
States.
He says that on November Is a suit
was commenced in the United States
Circuit Court and dismissed, and the
present action in the Superior Court
was begun the day before the sale.
This, he says, is a part of the con-
spiracy to wreck the company. He says
that the Du Pont company controls the
powder business of the United States,
and a large part Of its profits is de-
rived from the sale Of smokeleSs pow
der to the Government. The Peyton
company, he says, is in q position to
enter into the smokeless powder busi-
ness and reduce the income Of the trust.
The affiant declares that 7. G. du
Pont, president, and Pierre S. du Pont,
treasurer of the Du Pont company, re-
sorted to various means to acquire con-
troll of the Peyton company. They made
him a proposition, which he refused,
and then, he says, he was told that the
greater company and its subsidiary
corporations would wreck the chemical
company. He says that they acknowl-
edged that they procured the California
Powder Works to repudiate a contract
for chemicals, to the damage of the
Peyton company in the sum Of $50 900.
The trust owns about half the stock in
the California Powder Company. He
says, too, that they have resorted to
vexatious litigation, the creation of dis
satisfaction among customers, scurril-
Gus accusations and caused an attach
ment suit TO be filed on a 100000 claim
for which no demand had been made.
AID FOR AN ENEMY.
Then, it is said. they attempted to
gain access to the company's books for
r. S. Penniman, vice president Of the
California Powder Company, an avowed
enemy and business rival of the Peytop
company.
Secretary Wallaces affidavit went
into more details in regard to the neces-
sity of the assessment, the financial
transactions and the reputation of the
numberless charges against the com
pany made in the case in the Circuit
Court. Among other things he said
that it was charged that the ocmpany's
plant was not worth 100000, when it
was worth more than $500, 900 and all of
its assets amount to s1,000,000. He
quoted from letters from the three Du
Points, one ratifying the present man
agement and the others congratulating
Peyton on his success.