Evening public ledger. [volume] (Philadelphia [Pa.]) 1914-1942, 1915-12-29
U. s. TO PROBE MORGANS
DU PONT DEAL ACTIVITY
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the purpose Of making the payment
aforesaid to T. Coleman du Pont, and
furthermore did give its obligations to
said T. Coleman du Pont in the sum or
five million nine hundred thousand dol
lars &59O0,O00) in payment of the balance
of said purchase price for said stock, and
alleges that said eight million five hun
dred thousand dollars ,O0O was bor-
rowed by said corporation through the
banking house of j. p. Morgan ~ Co.
and that said loan was secured by
pledglng therefore a portion of the stock
acquired from said T. Coleman du Pont,
and Furthermore that said obligation IN
the sum OF five million nine hundred
thousand dollars Cs5.9OO 00O) so given TO
said T. Coleman du Pont was likewise
secured by pledge of a certain portion
OF said stock so acquired from him, and
this defendant further alleges that, IN
order to further secure said loan so OBJ
tanned through j. p. Morgan & Co.
and said obligation to said I. Cole
man du Pont this defendant and his as
sociates transferred to said du POnt Sc
curities Company large amount OF the
common stock of said II. |. du Pont de
Nemours Powder Company, at that time
and for a long period before owned In
dividually by this defendant associated;
that Furthermore said loan of eight mill
lion five hundred thousand dollars CSS,oOO-
O00) so obtained through j. j. Morgan
g. Co. was personally guaranteed by
this defendant to the amount OF four mil
lion two hundred and fifty thousand dol
lars Cs4, $50 OOO), by said Irenee du Pont to
the amount of one million three hundred
and sixty thousand dollars Gl,36OOOO, by
said Dammot du Pont to the amount OF
one million three hundred and sixty thou
sand dollars 81, 360O00). by said John j.
Raskob to the amount of three hundred
and forty thousand dollars tS34O.OO, by
said a. Felix du Pont to the amount of
six hundred and eighty thousand dollars
Cs6SO.OO0) and by said r. r.. NJ. Carpenter
to the amount of five hundred and ten
thousand dollars (S5i00OO.
ASSERTS CREDIT WAS GOOD.
"The defendant denies that he and his
associates did not have credit or market
able collateral for the purpose of effect
ing said loan as alleged in paragraph
eight of said bill of complaint, but on
the contrary. alleges that the payment
for said stock was accomplished In the
manner above set forth and upon the sole
credit of the said du Pont Securities Com
pany and the individuals hereinbefore
mentioned; that portions of said loan of
eight million five hundred thousand dol
lars CSS.500,O00) were offered by said j. p.
Morgan & Co. to certain banks and
financial institutions which at that
time were unknown to this defendant and
his associates and this defendant and
his associates did not learn the names
of said banks and financCl institutions
until long after that said loan was largely
oversubscribed and over 30 per cent. was
taken by said banks and financial in
sttutions and less than 10 per cent. re-
talned by said j. p. Morgan &c Co."
"MELoN'' ALLEGATION DENIED.
The answer denies the allegations OF
Philip f. du Pont that the 2S per cent
melon of the powder company was
split at time when tho directors of the
securities company We're called upon to
meet further payments to T. Coleman du
POnt.
To show how completely the du Pont
Securities Company controls the II. l. dc
Pont De Nemours Company, II of the Il
directors of the latter company are stock
holders in the securities company, as are
: of the members Of the Executive Com
mittce of the powder company and as
are also of the members of the Finance
Committee.