Evening journal., 1916-07-12

the company closed contract on
500. .OOO,OO and the Morgan Company
handled the money. Mr.. DUPONT ac-
counted for the sudden increase in
the Morgan bank, by stating that the
Morgan house placed credits to the
company in their own CMorgan) bank
ing house He believed that the Nor
gan company placed this large bal
ance on deposit from payments on
contracts.
Were they in the habit OF doing
that" asked Mr. Johnson.
81 believe so" replied the wit
ness.
When did they start that" the
witness was asked
when we started 10 do business
with them" answered Mr.. dupont
WAS that their custom" asked the
attorney.
Il don't know about custom. but that
was done in this case" replied Mr.
DUPONT
Q Now we will fome to the bank
balances generally, but we have got
to fnd the date when there was the
understanding between Morgan &
Company and Mr.. Raskob A. There
was no understanding between them.
There was no such understanding.
g. Between Porter and Rasltob p
A. Yes.
@ Was Porter acting for himself? d?
A. With regard to an entirely differ
ent matter, not the bank balances.
g. am talking about this an
nouncement that Raskob made 10
you when he came back. that Nor
gans were agreeable and would Ak
II for you. That was on the 18th of
February. Now I am coming IN
another date. the oath of February
on the 2Sd Of February YOU went
over TO New York and had your tan,
over there with Morgan q Companv
didn't you? A. Yes.
Q OF February. the dav after
Washington's birthday? When Won
went over to New York what member
OF the firm Of j. p Morgan & Com
pany there did you see? A. Mr.. Por-
ter, believe.
O. And you practically and sub
ftantially arranged the whole thing
with him then. didn't you? A. What
whole thing?
Q. Have you any doubt about the
thing that am asking you about? A.
J want 10 be sure.
@. There is only one thing that
you were interested i'm, that Is, your
acquisition Of these shares
Mr. Graham; / object to this.
Mr.. Johnson; He asked me what
thing
Mr. Graham: The proper thing
would be answer and tell him what
thing
The Court: I do not think there is
anything improper in Mr. Johnson's
examination.
The witness insisted on knowing
which transaction II was and Mr..
Johnson explained that II was the one
with Morgan q CO. He resumed.
@. And would you be surprised II ]
would tell you-and by-the-by think
you say in your answer you did moi
know until some time i'm March tn,
banks that were lending you tn,
money? A. Yes, that is correct.
O. You had no suspicion Of who
they were, had YOU? A. What do you
mean by suspicion?
| @. or sort Of general idea. A. !
suspected that they were the promi-
nent banks in New York
Q. Some of them were not I'm New
York. but some time in March you
found out who they were; and who
designated the banks, Raskob? A.
do not know who did.
@. You never inquired even who
or how It came about that these fif-
teen banks were the elect, the chosen
ones? A. The way I found out
about Il was that Raskob told me that
Morgan & Company had informed
him who took the loan. I do not know
who prompted Morgan & Company TO
place the loan.
@. In point OF fact, as you after
ward learned the banks which took
this loan were fifteen banks, two of
them I think I'm Philadelphia and the
rest IN New York who had been de-
positories of the. dupont Powder
Company. that IS so, Is it not? A
think that they we're all repositories
yes.
Q. Did Raskob tell you how thos'
banks came 20 be selected as the lend
ers Of this money? A. No.
, Q. Were you surprised that h
, some non-understood way, the bank
which were lenders We're fifteen de
, positories Of your company A. no
al all. We had deposits In all OF IN
large banks Of New York, therefor
. any New York bank selected mus
have been part OF the fifteen. We ha
deposits In all OF the large New for
hanks. therefore, II New York bank
took mart Of this loan they must nav
collected a depository.
q About how many banks wer
habitual repositories Of your compan
AZ this time IN the city Of New YORK
Ia. About ten. 49,.
o. would you say It was more tina
\ Eve? A. Yes, / believe II was Hlor
than hve. A..
o would you be surprised II
told YOU that on the 2Srd DAY
Il February. the day that you vlsite
New york and perfected this mar
cial arrangement. there was on d'
,osit with the Mechanics q Meta
Rational Bank one hundred and nine
fv-one thousand dollars and that IN
next day the deposit balance wa
three hundred and sixty-nine thou
sand dollars? A. No, l would h'
be surprised.
O. am going through the foul
teen or fifteen Would you be an
more surprised II I we're 10 tell yo
D that on the 23rd day Of February IN
deposit in the American Exchang
I Bank was one hundred and ninety
j. nine thousand dollars, and that o
J. the oath it ran up 10 FIVE hundre
x and ninety-one thousand dollars2 :
D. No. I would not be surprised.
% O. Then / do not helleVe that