Evening journal., 1916-07-15
had subscribed to the loan.
No Other Inducements.

No Other Inducements.
Mr. Raskob said there was no agree
ment or offer other than what he had
testified TO- for the securing Of this
loan
Mr.. Raskob was then taken over
the ground OF the meetings OF the
board OF directors on March 6 and 10,
1915. which had already been testified
to by several other witnesses. The
witness was asked why he voted
i against the resolution to buy the
IT. c. dupont stock from p. S. DUPONT
and associates.
The witness gave a long explana-
ton as 10 why he voted against the
resolution and said he had many
reasons lie said the book value of
the stock at that time was only about
Sis or S120. He also said the DUPONT
Company. in all its history, had never
purchased stock for itself. and he
thought IL would be a bad precedent.
He gave additional long reasons for
not voting Tor that resolution. includ-
ing the question Of legality based on
Judge Laffey's opinion.
Mr. Raskob told of the obligations
which were made for the purchase OF
the T. c. DUPONT stock being paid
of. This was done, he said, with
SO 600 900 five per cent. notes of the
dupont Securities Company, which
were floated through Morgan and
Company in November, 1915. COM
mon stock of the DUPONT Powder
Company was put up as collateral.
This deal with Morgan was concluded
on November Is. 1915. The Bankers
Trust Company was again the trustee
IN this deal and the witness said he
does not yet know where Morgan and
! Company sold the notes.
i The witness was questioned at
some length relative to the shares
OF stock voted at the last annual
meeting for and against the resolu-
} ton approving the acts of the direc-
tors and officers Of the company. The
q great majority as was shown by prev
ious testimony, approved the acts OF
the directors and officers.
Mr.. Raskob. in answer to questions
from Mr. Graham. said he. as treas
, urer OF the company. under the by
2 laws Of the corporation. had control
? Of the bank deposits, subject TO the
approval Of the finance committee.
Didn't Influence Loans.
The witness said deposits were not
made in any banks to influence the
: banks in making loans 20 pay for the
b r. c. DUPONT stock.
The witness was also questioned by
Mr.. Graham relatives TO increases in
] -
New York banks, about the time the
money was borrowed. He said it
J was due 10 the large amounts being
paid on European contracts for war
powder. at that time. Morgan and
Company, from time to time, gave
: the company credit for large sums
without deposits being made by the
company, the money being paid on
the war contracts.
Mr.. Graham next took up with the
witness the bank balances in the de-
positories OF the company on Febru-
airy % ana "a. 1915. The loan with
Morgan and Company was arranged
by Mr.. Raskob. on February %.
Mr.. Raskob said that the increased
deposits in the twelve New York
banks that participated in the loan
OF February "a over February %. was
so and 7-10 per cent. The increased
deposits for the same timd in all
other repositories of the company was
65 per cent and in the other four
} large New York banks that did NOT
participate in the loan, for the same
time was III per cent
Mr. Raskob said the large increase
IN deposits was due TO advanced pay
= ments received from Morgan and
Company principally and other
sources on powder contracts.
The witness was withdrawn at this
e point, and Mr.. Graham asked that the
court adjourn until Tuesday morn
ins as he required some time for
himself that was very essential
Mr.. johnson objected to going over