Evening journal., 1915-12-28

Dear Sir At meeting OF
the finance committee, held some time
in December Mr.. p. 5. DUPONT /
brought to the attention OF the COM
mittee. your wish 10 dispose Of 10000
shares Of common stock Of the Powder
Company at S160 share, with thef
suggestion that same be redistributec /
upon some liberal basis among the
more important OF the companys en-
ployes.
''The committee were in accord /
with your general idea viz. the pur-
chase from you of 10000 shares OF |
stock, and I believe were also a unit |
on the point OF a redistribution Of at |
/ least a portion Of this stock TO the |
companys employees upon some plan
: TO be subsequently defined.
"The one point. on which there
seemed to be a diiferenc of opinion. I
was the question of price The posi-
ton which ] took on this point, and
/ which | believe was similar to the one
\ maintained by Mr.. William DUPONT,
was that in purchasing this stock at
the price suggested by YOU which
would involve the expenditure Of S3-
100000 of the stockholders funds. an
investment of this size by the finance
committee could not be defended on a
return of less than approximately 6eoSo
or at least better than go, and for this
ment or a basis of, roughly. Cia9o
was suggested. II is my opinion that
this principle should be the guiding
one in any investment of the COM
pany's surplus funds in lieu OF
distribution of same.
again. in Offering this stock for
= subscriptions TO our employees, It
should be made on an attractive basis,
which, in my opinion, should not be
less than 6ia qo, and, as tho company
Z cannot afford to lose on transaction
r of tLis kind. It was manifestly i'm
= possible for It to purchase stock at
= one figure and offer il to its employees
: at a lower one.
. "I believe It an excellent time to
d make an offer of this character to the
= employees at as low a figure as Is
!, consistent with the company's inter-
ests, in order that the employees may
u benefit by any increment in value,
u which the present conditions would
: seem to indicate as quite probable,
7. and | furthermore believe that If the
u company can purchase this stock
/ from any outside source, it would be
/ better to acquire it in this manner
rather than issue its treasury stock
= for the above mentioned purpose.
: "I am setting my position before
p you clearly, for the reason that
"a have lately ascertained from Mr.. p
n S. dupont that he did not understand
IA my position as | had intended to pre-
- sent il, and for this reason. feared
= that he had unintentionally conveyed
= TO you a wrong impression as TO ml
NJ reasons for advocating the finance
et committees decision in the matter.
ts Yours very truly,
Alfred l. DUPONT
ID "Vice- President"
nc "all Of which was to the knowledge o
u this complainant, unless it be tina
es instead Of showing said letter TO sal
az complainant. someone undertook [
u misstate the contents thereof to hin
u "This defendant is advised and b'
" lieyes. and, therefore, AYERS that unde
So date OF February l9, 1915. the said
II, Coleman DUPONT sent to said Alfred
'el dupont a letter in reply to the afor'
er said. communication, which letter wa
in the terms following, to wit:
IA Rochester. Mimi, Feb. 19, 1915.
N "Mr. Alfred DUPONT, Wilmington Del
he Dear Alfred: | am in receipt (
in your letter of February 16 and hay
M read it several times. l cannot how
ce ever, make out why you wrote it. 7
i'll reiterate, the offer I made in Decen
nj Der to sell 10000 shares at $3.50 va
le- made. as Pierre will tell you. at whl
on then considered, and now know, WI
'h- sacrifice TO myself
as I'm that proposition, l stated II
stock would go to 5000 early in 19l
ice Having made up my mind that il wa
is, wice to get the young men OF Il
lel company interested, | took the que
aid tion up with Pierre, who agreed vii
Je- me that it was q good thing for q
younger men of the company az
iht therefore a good thing for the cor
lat pany. Pierre told me that you, TO
by had agreed it was a good thing. Th
ms it was q good thing, subsequent even
ne have proven.
ea "a few days after my operation
Ieu Pierre advised me there was son
lan misunderstanding IN regard TO tf
n%n % proposition and that you were n
.nu ~. prepared to accept It, while ! IN
yer fully understood before leaving W
alu mington that you would accept il.
ner Il Immediately wired Pierre
uu- withdraw the proposition, unless
''n was, in some way committed.
I'm the third paragraph of your Il
a. ter YOU say: The one point on viii
sid there seemed TO be a difference
,aid opinion was the question Of price.
no "If you will have the date of
.on- proposition TO the finance commit
ont iooked up. you will find that the 4
err accented orders and the money in
,,,h. hands. was sufficient to make the Il
ont have a book value beyond the price
he which / offered il and the earnings,
non season of ,he accepted orders, wo
aid make the - per cent you mention
IRA your letter, lon like "A drink of wat
as "On the second page Of your letter
du- say: Il believe it an excellent time
MES max, an offer of this character to
der employees at as low figure, etc
nan "To guide me. won't you please ad
,ove how much of your common stock
in are willing TO let 60 ~ this time to
liant important employees at price sugge'
der by YOU, 1925 per share. Probably ]
man Join with you in an offer.
nat ''The position that you take, tina
Sohl ON is wiser TO buy outstanding stock
lne 10 issue new stock is, think, cor
uei one.
,srod q am really sorry, but. to be pert
~ " frank with you, | cannot undersi
"a the purpose of your letter to me.
oNN~fl Htr.oralr~