Evening journal., 1916-07-07
COUNSEL Clash
OVER Finances
IN DUPONT CASE
Mr.. Glasgow and Mr.. Gra-
ham in Repeated Tits
at Today'S Hearing
TESTIMONY NOT Clear
ABOUT some BIC LOANS

John Hood. Jr., an accountant Of New
York. occupied the witness stand all OF
tins mornings session of the now fa-
nous DUPONT Powder Company case, inl
the United States Court. This account
ant. representing the compliments, eX-
amined the books of the powder COM
pany and prepared statements relative
10 deposits Of the company in banking
institations where the Securities Com
1any borrowed money to pay for the T..
G. 1uPont stock; showing the assets
anc liabilities OF the powder company
at specified times between the fall OF
1914 and the hast of 1915; contracts Of
the powder company during that period
and other important statements relative
go the business of the company. These
statements were put in evidence, IN
most instances, over the objections Of
counsel for the defendants.
When court took a recess at
o'clock, Mr. Glasgow of counsel for
the complainants. was reading from
statements of the daily deposits Of
the company in several New York
banking institutions at about tie
time that the stock was bought.
These deposits in some instances
showed an increase of more than 100
per cent. between February 1. 1915,
and the middle of March Of that
year.
When the case was resumed this
morning Mr. Graham of counsel for
the defendants handed to counsel for
complainants a statement Of the daily
balances of the f. l. DUPONT deNe.
rours Company of Pennsylvania witt
the Coal and Iron National Bank. o
New York
Mr. Glasgow. Of counsel for the com
plainaAts. requested this statemen
YESTERDAY II was not read at thi
time The company on request sls'
produced the investment ledger cover
ing the period from January 1. 1911
10 March 81. 1915.
John Hood Jr.. a public accountant
Of New York. VINO has been going owe
the books of the powder company 70
some days for the complainants. wa
called 70 the stand. He indentifiel
statements that he had prepare
showing the daily balances in certail
banks and trust companies iron
November 30. 1914. to September 81
1915; the treasurer's contracts fror
December 1914 to October 1, 1915
summary of assets and liabilities c
the company from October 1914 Z
December 1915; loans to banks an
trust companies from NovemAr q
NJ 1914 to September go 1915. and
statement Of certificates of deposl
.aa.ra hon L
He also identified a statement he ha
prepared of quotations of the commo
stock of the powder company frol
November 80, 1914 to December 3
1915. taken from the Financii
Chronicle.
After all these statements had bee
identified Mr.. Glasgow said he wou
offer them in evidence. The statemel
of deposits in the several banks whei
the Securities Company had secure
loans, was the first statement offere
Mr.. Graham requested counsel {
the other side to state the purpose
these statments. Mr.. Glasgow stat'
the purpose was TO show the dai
balances in the banking institution
where the loans were secured by q
Securities Company.
Mr.. Graham made strenuous obJe
ton to this statement going into e'
dence on the ground that it was il
material He argued that the reas
given by the cOmplainants for wal
ing this information in the interroe
tories was to show that accounts
these various banks we're increas
with funds OF the powder compa
before loans we're advanced TO
Securities Company and that the co
plainants should be restricted to II
use of the statement.
At this point Mr.. Glasgow 81
another purpose for this stateme
was to show that in each and eve
banking institution where the loa
we're secured the amounts on depo
Of the powder companys moneys v
IN excess of the loans.
Mr. Graham continued to object,
was overruled by the court. ]
statement was admitted and the
sendants noted an exception.
Mr.. Graham netX cross examined
witness about loans TO the banks.
pointed out the entry for an investm
note OF 81 100000 with the Bank
Trust Company, of New York, and c
ed the attention of the witness to 81
entries underneath of the above en-
showing that 100000 of the loan "
TO G. l. Hudson and Company and 81
lar amounts TO other brokers. He po
ed out a number of other similar
tries and asked the witness If these
not show that the loans were made
the brokers' and not the banks.
Mr.. Hood replied the books do not
nut whether the banks or the comp