Evening journal., 1912-06-17
PROBLEM OVER
DISSOLUTION
REIMBURSEMENT Of dupont Sc
CuritieS Confronted With
PerplexitieS
SOME THINGS NOT
SET FORTH IN DECREE

There are three issues of bonds con-
corning which it appears that some re-
adjustments must be made as a re-
suit OF the decree handed d~Nn by the !
United States Circuit Court at Will |
mington, ordering the dissolution OF
the dupont Powder Companies. The
issues are the folowingh. Sl6,O00,000
(authorized) 4 1-2 per cent gold
bonds. due 1886, OF the Il. |. DUPONT
de Nemours Powder Company; S1,S50,-
600 first mortgage and collateral trust
per cent. gold bonds, due 1922, of
the same company; and S7S2000, OF
which $4,000 will be retired July l
/ by sinking fund, per cent. collateral
trust gold bonds, due 1884, OF the du-
Pont international Powder Company
I The status Of all these bonds Will be
disturbed in greater or less degree IN
effecting the dissolution. The decree
makes no mention of them. William A.
Glasgow. Jr., Of counsel for the Gov
ernment, says this is a matter which
the dupont companies must adjust be-
tween themselves and the owners OF
the bonds. just as they must bring
about their own initiative the read
iustment of their other obligations TO
comply with the decree.
The powder company would pre-
sumablv be expected to settle it's OBJ
LEGATIONS before distributing surplus
assets. II would appear' that the
charge Of this issue of bonds might
lbe distributed pro rata among the
three companies, or the bonds might
he maid off or an exchange Of secur-
dies might be effected. Persons IA
miliar with the dupont companies ex-
Y pect that some arrangement OF th'
latter kind will be effected AS te
l. having on the bonds, they are cal
q liable at 10, hut are selling at 81 II
l. the market. so this course Woul'
hardly seem feasible. II is plain tina
S 10 allow the bonds To remain chare
@ on the reduced powder company onl
}. would be neither satisfactory nol
r equitable to the company or 10 th'
owners Of the bonds.
+ The S1.s50.000 5s OF the Powder
r. Company will furnish another prop
q lem These bonds we're issued TO re
{, fire mart of the bonds OF the Delaware
). Securities Company and are secured
/. Inv frst mortgages on dozen or 81
}, nronerties formerly belonging 10 I'M
llHfln ana fAtUu A'NH~A
l. widely scattered parts OF the country
:, and partly by s1.Soo,ooO of the T.
J. ner cent. Powder Company bonds. II
p he dissolution, these old Latiin an'
q Rand properties will be divided be
k tween the three corporations inu
IF which the trust is separated. The re
J. sulting situation as TO the lien OF tn
'r bonds would thus seem TO be douoi
ID complicated. a.
The s7s2. 900 collateral trust 5s OF IN
y dupont international Powder Con-
e nanv present a simpler problem PM
c sdeipbians are largely interested J
e these bonds. The DUPONT lnterna
tional of which all the common stoc
is held. for control. by the r. /. d.
'. Pont de Nemours Powder Company,
= pure holding corporation, torme
e for the purpose Of acquiring contro
l. hv AN exchange Of securities, OF m
e international Smokeless Powder an
/ Chemical Company, originally PM
Al adelphia. enterprise. Al the earnel
+ solicitation of army and navy ofhcial
!" who desired above all things 10 avol
N (Continued on Second PageJ