The San Francisco call., 1905-02-15
WDER FIGHT
SHIFTED AGAIN
Circuit Judge Morrow Is
sues Restraining Order on
Peyton Chemical Company
CONSPIRACY CHARGED
Sharp Practice Alleged at
Recent Sale of Delinquent
Stock in Mills Building

The fierce battle in the Dupont pow
der case. which began several months
ago in the United States Circuit Court
has again shifted to the Circuit Court.
Papers were filed yesterday, and on
motion of Garret McEnerney Judge
Morrow issued an order commanding
William C. Peyton, the Peyton Chem
ical Company and others named in the
bill to appear this morning at o'clock
and show cause why they should not be
restrained from acting as officers or di-
rectors, and why a receiver should not
be appointed. The order also prohibits
all persons concerned from proceeding
with the annual election of directors.
The complainant, the e. I. DUPONT de
Nemours Powder Company, filed an un-
dertaking in the sum of $4,000.
In support of the suit and tho peti-
tion for the restraining order affidavits
of Frank Turner, r. s. Penniman, r.
d. Madison and others were filed.
Turner deposes that on December 81,
at 1870 a. m, Turner, Penniman and
Madison, each carrying a sack con-
tanning $4,000 in gold, and Penniman
with an additional sack Of $500, went
into the office of the Peyton Chemical
Company, on the fourth floor of the
Mills building, where the sale of delin-
quent stock was to take place. There
j. F. Wallace read the published no.
tice Of the sale and said he would sell
the least number of shares to the per-
son who would pay the assessments
and costs due, stating the costs to be
$9S 40 for each certificate or lot Of 1000
shares. Thereupon Wallace offered GER
tificate No. q for 1000 shares for sale.
The respondent, Peyton, offered to pay
the assessment and costs for the en-
tire lot of 1000 shares, and Immediately,
Mr.. Turner deposes, Wallace said
'Sold!" Penniman offered to pay the
assessments and costs, but Wallace re-
fused to give deponent, or any other
person in the room, an opportunity to
bid for said stock, and declared the
stock sold to Peyton without repeating
the bid Of Penniman or calling for
other bids. Turner swears that the
actual time consumed from the moment
that Wallace offered certificate 81 for
sale until he declared the same sold to
Peyton was between two and three Sec
onds. The other deponents corroborated
the affidavit Of Turner.
The bill recites, among other mat
ters, that on January 16 of this year
the respondents believed that 1t was the
intention of the complainant to vote
2975 shares for either Penniman and
Turner or Penniman and Oscar Sutro
at the annual meeting of February Is,
and for the fraudulent and wicked pur-
pose Of preventing complainant from
voting for any but the five respondents
named as directors they amended the
bylaws on that date so as to require
a stockholder to be the owner of at
least 100 shares of stock of the respond
ent corporation in order to be eligible
to the Office Of director. 1t is also al
legged that the respondents, with ma
licious and wicked intent, sent their
minute book to New York for the pur-
pose Of surprising the complainant with
said amendment at the annual election
on February Is.
It is alleged also that on January 8
of this year William c. Peyton pretend
ed to transfer to Bernard Peyton 100
shares and to A. M. Hunt like num-
ber for an equally fraudulent purpose.