Evening public ledger. [volume] (Philadelphia [Pa.]) 1914-1942, 1916-07-18
PIERRE SPENT MONEY
LIKE WATER, BROTHER
A.I.DU PONT DECLARED
Witness in Powder Suit at Will
mington Tells How Head of
Company Viewed
Partner
TREASURER ON STAND

WILMINGTON, Del, July 1s-At the
opening of the du Pont powder hearing
in United States District Court today,
John j. Raskob, treasurer of the company
testified on redirect examination, when
asked as to the attitude of Alfred l. du
Pont toward increase of wages made by
the company that Gu Pont hac said to an
employe that Pierre was in frantic fight
over a strike of some carpenters and was
spending money like water"
Asked about the credit of $500, 600 from
the Morgan Company Raskob said he had
looked up the records yesterday afternoon
and ascertained how the money had been
checked out in repositories. Five of the
banks participating in the roam received
none of the money, while some of II went
to banks in Chicago and Boston. This, he
said was sample of the manner in which
this job always was done. The list of banks
which took part in the distribution and the
checks were next offered in evidence.
Mr. Raskob identified the minutes of the
Finance Committee meeting of February
g. 1916 when it was decided to amortizo
the Sl2,000,000 spent in extraordinary con-
struction due to military contracts at the
rate of 100000 u month. as we'll as the
S3,20O,0O0 spent on the International Smoke
less Powder and Chemical Company.
John c. Johnson cross-eXamined Rasltob
about the distribution of the Morgan credit
Counsel becamed engaged in a squabbe
over the Morgan balance, Johnson claiming
1t was excessive and George S. Graham that
II was not Graham asked Raskob If any
limit had been placed on bank balances, and
he said none had been.
Henry +. du Pont was called and asked
his reasons for voting. as a director, against
the purchase of Coleman du Points stock.
He said he did not sanction the company
buying its own stock and thought the money
could be put to better use in extending
plants and generally taking care of the
contracts on hand, He was not then inter-
ested in the du Pont Securities Company.
which he did not enter until more than
month later
Mr.. Johnson wanted to know If RaslSob
was influenced in his opposition to purchase
by the company by Judge Laffey's opinion
that the company could purchase the stock
only to the extent of its surplus. He said
he was, "in a measure"
Irenee du Pont. brother of Pierre the
president, was asked the reason for the
directors meeting of March 6, 1915. He
said II was to discuss the proposition to buy
the Coleman du Pont stock from the securi-
ties company, and to determine whether
the president had the confidence of the
board. He voted against the purchase. his
strongest reason being that the company
should not speculate in its own stock.
r. r NJ, Carpenter. a director testified
he participated in the negotiations for the
purchase of the stock and in the formation
of the securities company. He voted against
the proposition OF lHe purchase OF Ine STOCK
by the du Pont Company, believing IL would
be unbusinesslike for the company to buy
such large blocks OF It's own stock for it.
self
Judge Laffey, legal counsel for the du
Pont Powder Company told OF advising the
directors that the company could not pur-
chase stock in excess OF it's surplus funds
without impairing its capital. The opinion
was given off-hand. but later he gave II full
consideration and confirmed il, informing
Pierre du Pont
on cross-examination Judge Lafrey told
of receiving 500 shares of the purchased
stock. II was given on condition that he
remain with the company another year.
he said he then had no intention
of leaving. The shares were given him by
the du Pont Securities Company Mr.. John
son asked him II he was familiar with the
charter and he said he was
And you gave the advice about the pur-
chase OF the stock being familiar with the
charter?" asked Mr.. Johnson.
Il did" replied the witness.
That's ALL" rejoined Mr. johnson