Evening public ledger. [volume] (Philadelphia [Pa.]) 1914-1942, 1916-11-01
DU POINTS PRESIDENT,
REPLYING TO WOMAN,
DEFENDS BIG MERGER
Pierre, in Aflidavits, Declares
Delaware Concerns Absorption
of Jersey Corporation Was
Good Business Policy
COMPLAINANT BENEFITS

TRENTON. N. j.. Nov. Pierre s. du
pont rroy,dert ~ tho du Pont Powder
Companies OF Delaware ana New 'erseS'
today filed in the Court OF Chancery r.tua-
Wits TO support the reorganlzation OF .ne
powder companies under which pe LEI
aware Corporation took over the New Jer-
sey concern Miss Hetty /. Henry OF
Pompton Lakes N. j.. who held FOUR shares
Of common stock OF the New Jersey corpo-
ration. contends that the reorganization anq
the apportlonment OF the stock y untsT
and she asks in a suit that the Ihancey
Court reinstate the old New Jersey concern.
President du Pont relates In detail the
expansion OF the powder Industry ana re-
counts the steps leading up TO the aosorp-
tlon OF the New Jersey concern py the
parent corporation in Delaware lie SAID
that IL was a bad business policy to have
a discrepancy between the capitalization
Of the New Jersey corporation and the
value of the property which would be per-
manently used In the business OF the COM
pany. Some radical changes were necesar' /
to reorganize the New Jersey company a
the agreement to merge II with the Ds
aware corporation was brought about.
PROPERTIES TRANSFERRED
The reorganization was effected october
l. 1915, and the properties of the New Jer1
sey company were transferred to the Della
ware company after the requisite corporate
act on the part Of both corporations. Inf
exchange for its properties the New Jersey
company received Sl.ist,100 In cash ana
5sS,642 shares of common stock and b96.6Y7
shares of debenture stock OF the Delaware
company of the par value OF $lqo and the
Delaware company agreed to assume the
obligations Of the New Jersey company.
Since the reorganization the Delaware oas,
pany has invested millions in new rnts
in which the New Jersey company nevehad
an ownership and also has acquired for
S6.OO Arlington
products manufacturer, an enterprie in
which the New Jersey company nevs had
any ownership. Further, President du Pont
says the Delaware company has entereai into
many large contracts for war munitions and 4
its business has been very successfully CO.,
Quoted -
Answering the suit Of Miss Henry, III
president states that on account of the fotv
shares of common stock of the New Jersev +
company which this action is based
dividends and shares of stock in the Dclav
ware corporation have been given heH
which, at the present time. are worth S2800t
In addition, she has received in cash andl
other securities as dividends on the stock nI
the Delaware corporation approximately
$500.
REASONS FOR REFUSAL
Concluding his affidavit President dat
Pont says that to give such relief as the
complainant prays for would be to revest
the New Jersey company with the prop
erty In question to such an extent that the
four shares Of stock which Miss Henry now
holds would be worth their present value
plus $4,000, which those who held the stock
before her have already received gF
The affidavit states that eighty-nine and
seven-tenths per cent of the stockholders
OF tine old New Jersey company agreed TO
the absorption of the concern by the Della
ware corporation. The company and its
officers received no protest or objection
from any holder of its stock or other Sc.
curities to the proposed plan. The Della
ware corporation was organized at an ex-
pense of $S9,S50 and has obtained perm.s-
sion to do business in thirty States nj AZ
approximate expense of S1650O Miss
Henry seeks to restrain the Delaware cor
poration from continuing the absorption Of
the New Jersey concern for a consideration
of $12o.000,000