Evening journal. [volume] (Wilmington, Del.) 1888-1932, 1916-08-16
Securities Company Head
Declares Lawyer Made
Measurements in
Recent Suits
SAYS HE DIDN'T GET
. PROMOTERS PROFIT

nan duPont's powder shares:
Mr. duPOnt's Letter.
The letter follows:
Wilmington, Del, Aug. 10, 1916.
To the Stockholders Of dupont Sc
curities Company:
In his argument before the court
In the case of Philip f. DUPONT VS..
Pierre E. DUPONT, ct al, William A.
Glasgow, counsel for the plaintiffs,
made the following statements, which,
In the opinion Of the writer, for rea-
sons herein stated, can only be char
acterized as wilful lies
He pierre S. duPonD bought
this powder stock from T. Cole
man dupont at S20.0O0,000 He
sold il to the Securities Com
pany for S21,197 600, and he made
promoters profits of S1,197000 in
the stock of the Securities Com
pany; and what he gave to the
employees was the promoters
profit that he and Raskob had
made on the sale to the Securities
Company.
He made a profit Of $1,197,000
on the sale of this stock on the
UIlIt VI E-NV a CAAaAN " BAAAAh6
il into the Securities Company at
a profit in its stock of S1,197, 900,
and he gave to those employees the
promoters watered profit that he
was getting on the sale to the Sc
curities Company.
You would have thought that a
perfectly straight dealing would
have been to let those men come
into this deal in the Securities
Company on the same basis that
Pierre DUPONT and Raskob and
Irenee DUPONT and Lammot du-
Pont and Carpenter were in, but
they did not.
He put the common stock into
this company for 1921 a share, and
instead of the price being to the
Securities Company S19,00O,O00, it
was S21, 4SS.000. and P. S. DUPONT
made on that sale to the Securities
Company s1,979,000 in the stock
of the Securities Company, and
after giving nine of the directors
1850 shares each out of that profit
and Laffey 500 and 500 TO each of
the eleven young duPonts, he had
still a promoters profit Of $500 ,OO0s
Tells OF False Impression.
These statements are quite 1parl
from the case before the court and
have no bearing on the issue Other
than to create a false impression OF
dupont Securities Company stock e
certain stock holders, consequently
rejecting on the integrity of the
founders Of the DUPONT Securities
Company.
william A. Glasgow had uncontra-
dicted evidence that the consideration
for the stock transferred to the
heads of departments of the p. /. du-
Pont de Nemours Powder Company
was solely that of continued service
with the company for one year. HI
also was in possession of the letter
addressed by the writer to Philip F
dupont and others on April 20, 1915
in fact he introduced the letter az
part of the evidence in his case. Thii
letter states:
The members of the latter (the
syndicate) now hold stock in the
dupont Securities Company in
the proportion of 500 shares Of the
latter for each 222.75 shares of
the common stock of z. /. du-
Pont de Nemours Powder Com
pany acquired from the syndicate
members by the DUPONT Securi-
ties Company.
Now that this whole transaction
Is definitely closed, l offer you
opportunity to become stock
holder of DUPONT Securities Com
pany on the basis above outlined;
that is, II you will transfer to me
223 shares of common stock of E.
I. DUPONT de Nemours Powder
Company, I will transfer to you
500 shares of dupont Securities
Company and $50 in cash, repre-
senting the quarter share of r.
L dupont de Nemours Powder
Company common stock at the
original price of 5000 per share.
Contributed by Syndicate.
The syndicate contributed to Il
dupont Securities Company. as show
by the testimony in the above mel
toned case. 2S,177 chares of connie
stock of e. I. dupont de Nemoui
Powder Company. and the net pa,
ment received therefor by the synd
cate consisted Of $3.50 shares of d.
Pont Securities Company stock.
other words, / and my associate
Messrs. Irenee DUPONT. Lammot d
Pont. A. Felix dupont r. R. NJ. &c
penter and J. ]. Raskob received e,
actly 500 shares Of dupont Securiti'
Company stock for each 222.75 shar'
OF common stock Of p. /. DUPONT
Nemours Powder Company we sold
the dupont Securities Company.
addition to this $3.50 shares, the
were issued to the heads of the d
partments OF E. I. DUPONT de Nemou
Powder Company 11,750 shares. whi'
makes up the total capitalization
$4,000 shares of dupont Securiti
Company stock then issued and no
outstanding.
From this it is quite evident tn
the offer Of exchange of DUPONT S
curities Company stock for commt
stock of r. I. DUPONT de Nemou
Powder Company was on such bas
as to place every stakeholder in e
actly the same position as the oris
majors Of DUPONT Securities Compan
and that neither I. my associates, n
anyone else made a profit in the ma
ner charged by William A. Glasgo
The profit made in the dupont Secul
ties Company transfer has accrue
through the increased value OF 4
company's assets, in which eve
share of stock has participat
equally.
No member of the syndicate recei
ed more than 500 shares of DUPONT
curities Company for each 222.
1890 ~ Il dn Pnr,t ia NoI,nn