Evening journal., 1915-12-09
DUPONT SECURITIES co. IS
ATTACKED In COURT SUIT


then wrote to I, Coleman DUPONT. who |
was in hospital in Rochester, Minn., |
advising him that the finance commit
tee of the e. J. DUPONT de Nemours
Powder Co.. at its meeting in Decem-
/ ber 1914. was in accord with the idea
OF purchasing the 10000 shares Of
common stock from him, but that
there seemed to be a difference of
opinion upon the one point OF price
alone. and that the committee were
also in favor of allowing at least a
/ portion of this stock to be resold by
the company, to which employees, on
some plan to be subsequently defined,
and the said r. Coleman DUPONT was
advised that the only objection in De-
cember, 1914, TO the purchase OF the
said stock. on the terms proposed by
the said T Coleman dupont, was that
the income which could be derived
from the purchase of the stock at the
price of S160 per share, might not
make the purchase of the stock at
! tractive to the employees aforesaid, and
the said Alfred l DUPONT then advised
the said r Coleman DUPONT that IN
his opinion the time had arrived when
II was very desirable, by purchase or
the said shares of stock from the
said r. Coleman dupont to make an
\ offer of a part at least Of said stock
TO the company's employees. at as low
a figure as consistent with the COM
panv's interest. in order that the en-
ployes might benefit by an increased
value in said stock. which the tnen
nresent condition seemed to indicate
as quite probable"
/, The complainant says thu notwlth-
+ standing these representations, fisrle
\ s dupont entered into negotiations
B. with a confidential representative Oh l.
! Coleman dupont "for the purchase
in his own interest OF the shales VI
, stock of the said T. Coleman du
I and offered TO purchase all OF tne
2 stock of the said r. Coleman dufonl,
p which said offer. at 5000 a snare, ior
/. the common stock and $50 per snare
4 for the preferred stock was maze Dy
4 the said Pierre S. DUPONT for his own
E. account. and accepted on or ABOUT
g February 20, 1915. -,
n The complainant further sets fortu
that as soon as Alfred !. dufont anu
l., William dupont learned of this pur'
i chase they expressed to him their
4 view that they presumed the stocB
It was purchased for and on behalf ol
j the company. "and told the said Pierre
riS $ dupont that any other course o.
n action. or any attempt OF the SAID
10 Pierre s. dupont to purchase the sale
: stock for his own purposes they con
It sidered breach OF faith by the saiC
'- Pierre S. DUPONT"
ol pierre S. dupont, according to the
r. bill. offered to sell the stock he ha'
-t purchased from r. Coleman duPon
TO the company, and resolution U
n that effect was referred to the n
,f nance committee. The complaint con
ID times: Upon information. complain
X ant believes. and Therefore AYERS, ina
= the said Pierre $. dupont had so ar
r. ranged and brought about that tn
oil resolution Offering to purchase sal
Is stock should be referred to the 4
nance committee. we'll knowing tina
On the said committee was composed {
or Pierre S. dupont, Irenee DUPONT, Wi
,dlliam dupont and Alfred l. duPon
and that by reason OF the interest {
AZ the said Irenee DUPONT (Which intei
10 est as above stated. was not disclo:
le ed with him, the said Pierre S. du
n Pont. as an associate in the purchas
n. OF the said stock of T. Coleman dJ
v. Pont as aforesaid. that he. the sal
s. Pierre S. dupont. and Irenee duPon
ct could prevent any recommendation {
at said committee looking to a propos
ie ton for the purchase Of the stoc
Of aforesaid.
4. complainant is informed. believes
u and therefore AYERS that the resolu
II ton aforesaid. providing for the pre-
Of position to purchase the said stoc
Id OF T. Coleman DUPONT. would hav
r. been adopted by the board Of director
is at the meeting aforesaid but for tn
nd fact that Pierre S. DUPONT. Irenee du
)n pont. Lammot DUPONT, John J. Rasko
he and r. r. NJ. Carpenter were then a:
if- sociated with the said Pierre S. dJ
ed pont in the purchase of stock of
ed Coleman DUPONT aforesaid. and fui
or ther BY reason OF the fact that Ill
ce said Pierre s. DUPONT held out to Gel
in tain members of the board. to vii
or Henry F. DUPONT. Eugene E. duPon
lu, Harry G. Haskell. Harry +. Brow
.lu and William Coyne, also members
III the board, the prospect of their b.
ne coming interested through the d'
"a POnt Securities Co.. aforesaid. alor
u With him i'm the purchase of the sa
stock Of r. Coleman DUPONT"
.al The complaint further sets fort
re- that on March TO- 1915, of the dire
az tors of the powder company the Fl
ance committee reported that the re
olution for the purchase of the sto'
II did not receive. "a majority vote OF u
10 finance committee and that thereto
OF no recommendation was contained
NJ their report. A mt ti0n was theI
lr- upon offered and seconded. that q
ne company make an offer to purcha
be from the Syndicate referring
IN Pierre S. dupont and his associat
Mt. aforesaid) the stock which was pt
ng chased from T. Coleman DUPONT
mis- The complainant further sets for
he that a majority of the directors yot
in In the negative upon this resoiuti
pit by reason CT the influence OF Pier
s. duPons and his associates afoi
be- said" Furthermore the complaina
The sets forth that "at or about said til
lr- or very soon thereafter the said Hen
10 f. DUPONT Eugene e. DUPONT, Har
Ter G. Haskell. Harry F. Brown and W
Dre liam Coyne. became interested in
r. purchase Of the stock of the said
S. Coleman DUPONT, through the duPe
vas Securities Co.. defendant aoo'
100 uamed.
1pe The complainant alleges Il
the each of the individual def
aid drnts. members of the board of
bet rectors. utterly failed and neglect
OF 10 perform the duties incumbent up
/. them" and secured for themsel'
arv, the benefit to accrue fro-1 ownersl