Evening journal., 1916-07-17

not called as a witness. The other
side did not object to the written
statement which was handed to the
court and which was apparently a
certificate from a physician. 1t was
Mr.. Porter whom John J. Raskob.
treasurer Of the company. made ar
rangements with as the representa-
tive of Morgan and Company for bor-
rowing the money with which TO buy
the T. c. DUPONT stock.
Mr.. Raskob. treasurer Of the COM
pany in reply to a question asked him
/ by Mr. Graham, said that neither the
New Jersey nor the Delaware cor
poration had any such account on the
books as working capital" He said
he was familiar with a statement
shown P. S. DUPONT while the latter
was on the stand, showing the assets
and liabilities of the company.
Mr.. Raskob was asked to identify a
number of papers that we're shown
him. which were reports Of a New
York auditing company following ex-
aminations of the corporations books.
The witness said the term working
capital" was not used in any Of these
reports.
Mr. Graham placed in evidence with
out objection from the other side, the
annual report Of the company for the
years 1914 and 1915 and the reports
of the audits of those reports.
"Mr. Raskob,' asked Mr.. Graham,
do you know the policy of the COM
pany relative to the declaration Of
dividends?"
about two-thirds Of the earnings
were paid in dividends during the
past FIVE or six years." the witness
replied.
Mr.. Raskob, in answer TO a ques-
ton, said the dividend Of December,
1915. was paid in accordance with the
custom he referred to. He said how
ever, that he thought the dividends
paid by the new company this year
had been somewhat less than two
thirds of the earnings.
The witness was next questioned
relative to his purchasing common
stock to be distributed among en-
ployes as bonuses. He was instructed
to obtain this stock by the board. the
witness stated.
The witness was asked 10 J. P. Laf-
fey was present at the meeting Of the
board Of directors on March 10, 1915.
Mr.. Raskob replied that Mr.. Laffey
was elected a member Of the board
of directors at that meeting. and that
he did not think he (Mr. Laffey) was
at the meeting.
At this point Mr.. Graham con-
cluded his direct examination.
CrOss-ExaminatiOn Under Way.
( Mr.. Johnson. in his cross-examina-
ton. delved into matters pertaining Ia
the statement of assets and liabilities
of the r. l. DUPONT de Nemours Pow
der Company. dated November 30
1914, and which, he stated, had beer
p furnished the complalnants' account.
ants by the company.
Mr.. Raskob. in answer to questions
. put by Mr.. Johnson. said they were
=, forms of this character known as
. consolidated balance sheets. that hac
e. been used for the past thirteen years
Mr.. Johnson questioned the wit
ness as TO whether or not the com
r pany had any binders containing theii
2 monthly statements for the past thir
; teen years, which. he said. were foi
!, the guidance of the finance commit
tee. Mr.. Raskob did not know of sucl
binders, but thought they we're prob
+ ably in the accountaing department.
; The witness was asked what off
+ cial prepared the statements and h.
replied that he did not know. MI
Raskob insisted that the statement
n he referred 10 we're consolidated ba
?, ance sheets and we're not exactly IN
e same as the one produced by MI
e Johnson and furnished the complain
ants accountants. Numerous othe
Is questions were asked the witnes
d along this line.
y Handing the witness another state
:. ment. Mr.. Johnson asked:
Does that not show that the work
- ing capial Of the company on Septem
= Der. 1915, was S1O4 $4,000 and o.
!, February. 1915, is was S40.757 .000?"
:, Mr. Raskob said that was correct.
- He was questioned as to the ad
= vances paid on contracts and wha
~ the statement showed in that par
ticular. Mr.. Raskob replied that III
% statement showed that in Februar,
1915, the advances paid the compan
3 had amounted to S23 ,903, 600. and 1
=, September, 1915. the advances amount
~ ed TO SS6,127,000 on account of con
OF tracts.
30 Mr.. Raskob said the contracts call
NJ ed for the payment Of so per cent {
~ the amount in advance, and that a
4, the contracts were made good the II
70 naming so per cent was paid.
- Mr. Raskob said a large amount {
I. - the advance money was used to pa
n Tor material and supplies.
- rs It not true" asked Mr. Johl
ga son, that the company had the Ten
y. fit of SS6,00O,O00 that was not y,
ne due2"
10 That was in accordance with N
4, contracts replied the witness
~ ~ Mr.. Raskob again stated on GRO.
- examination that the dividends pal
- since January 1, 1915. were less tina
E two-thirds of the earnings.
~ Mr.. Johnson called his attention
d. 1873 Il. per cent having Deen paid
y dividends during the last 15 montl
- and asked him If that did not mea
that the earnings we're at least q
per cent. during that time.
THAT much at least" replied II
nd witness.
1T when did you first learn that II
IL T. c. dupont stock could be bought
re February II, 1916 replied the vi
he ness.
n He told of P. s. DUPONT telling hi
~ about L. l. Dunham, personal repr
sentative of T. C-~duPontr tellingshi