Evening public ledger. [volume] (Philadelphia [Pa.]) 1914-1942, 1916-01-19
HALT REQUESTED
IN THE FILING OF
DU PONT PROXIES
Complainants Urge Stock
holders to Await Out
come of Lawsuit
THREE RESIST CUSTER

ting that they withhold any proxy for
the coming annual meeting Of the du
Pont Company until the suit now pending
In the United States District Court is
decided
The message. which is signed by Alfred
l. du Pont. recently deposed vice prcsi-
dent of that S240. 100000 corporation;
Francis |. du Pont and Philip +. du Pont,
original complainant In the case. Is OBJ
viously occasioned by the letter received
by all stockholders yesterday from the
defendant directors requesting proxies
IN order that Alfred L. du Pont, Francis
l. du Pont and william du Pont might be
removed from the board of directors ana
be replaced by II. NJ. Barksdale. +. @.
Taltman and William G. Ramsay.
The kilograms sent out to counteract
the effects of the letter read as follows;
I'VE are mailing you letter In which
we suggest your Withholding any proxy
for the coming annual meeting OF the
du Pont company until the determina-
tion of the litigation now pending hled
on behalf of the company.-Philip f. du
Pont, Alfred I. du Pont, Francis |. du
Pont."
DEFENDANTS AFTER STOCK.
Although the letter referred to in the
kilograms has not been obtained as yet,
It Is generally believed that 1t Is based
upon the ground that the defendant dl-
rectors of the powder company should
not be allowed to usurp complete control
of the corporation when the litigation now
pending Involves assets of such great
value.
The immediate sum involved in the
riit Is more than s50.OOO.OOO in powder
company stock. 1t was acquired by
Eyerre 8. du Pont and the other de-
iendant directors for apout 600, and
as A. iu guCCpggful would be
turned over to the corporation at the
latter figure This would mean that
everv outstanding share OF stock In du
Pont de Nemours & Co. would be In
creased in value by about $500.
The letter sent ont by Pierre S. du Pont
and his associates asserts that they al
ready control So per cent. of the powder
company stock In view of this fact 1t
IN generally believed that the complain
tend their efforts toward obtaining proxies
ants in the present litigation VIII not eN-
for themselves, but rather toward pre-
venting the other side from getting
drmer grip on the control of the corpora
lion than II now Las.
OBJECT TO USURPAT1ON.
II became known today that some one
or some faction is attempting TO buy
5000 shares OF stock in the powder COM
pany in the open market.
The purchase of such a block of COM
mon stock involves an outlay OF Sl,sO.-
900. 1t is generally believed in this city
that Pierre s. du Pont, president of the
powder company. and his codefendants
are the ones who are seeking to acquire
these holdings.
Thus far no offers to sell 5000 shares
of stock in compliance with inquiry on the
open market has been recorded Brokers
attribute this to the fact that the next
quarterly dividend of the powder com
pany will be declared before the annual
stockholders' meeting. As the corporation
is reputed to be earning more than S1O.-
100000 a month, II is expected this divi-
dend will be particularly luscious
melon" and no stockholder is anxious
to part with his holdings before he has
obtained his slice.
As proxies are revokable those ac-
quired by the faction headed by Pierre
s. du Pont will not by any means be
secure. The argument that each share
OF stock may be enhanced in value by
s20O, by the outcome of the case now
pending in the United States District
Court, Is a strong one for the complain
ants. and at the last minute In view of
this fact many of the stockholders may
deem 1t unadvisable to place further
power in the hands of the defendant
directors.
DUE TO a. I. DU POINTS DEMAND.
The present efforts of Pierre S. du Pont
and his associates to oust Alfred l.
du Pont, Francis l. du Pont and William
du Pont from the directorate of the
powder company are traceable to what
occurred on January 10. when there was
special adjourned meeting OF the board
OF directors.
At that time. it is understood, Alfred
L. du Pont demanded that the defendant
directors. who comprise IL of the 81 on the
kAa I'd furFrt nNraF hA ufn nf iggtn in
the present litigation to the treasury OF
the powder company. 1t Is further under
stood that he gave the board to under
stand that unless such action was taken
he would petition the court for permission
to become party plaintiff TO the pro-
ceedings.
Whether or not this is what occurred,
the fact remains that that same day
Alfred /. du Pont did petition the court
for permission to become a party TO the
suit. and on the following day the com
pany announced that he had been de
posed from vice presidency and his posi-
tion on the Finance Committee OF the
powder company
This action OF the defendant directors
aroused another foe for them to combat.
The day after the ousting of Alfred l. du
Pont was announced Francis 1. du Pont,
q director OF the powder company. also
petitioned the court for permission 10 join
in the suit. William du Pont, also a
director OF the company, has always
stood by his cousin. Alfred l. du Pont.
against the group now appearing as de-
fendants In the litigation.
NOT ALLOWED TO GUST FELLOWS,
Directors OF a corporation are not em-
powered 10 remove fellow members from
the board This alone accounts for the
fact that Alfred. William and Francis l.
du Pont still appear directors OF the
corporation. 1t also accounts for the de-
efforts Of the defendant direc-
tors TO obtain enough proxies for the an
nual steekholders' meeting to insure the
removal of these three men from the
Of the corporation.
Should these efforts be successful Pierre
s. du Pont and his associates will have
complete control OF the affairs OF the
as they win not only control
the directorate, but also the Finance
Committee and the Executive Committee
Of the corporation. II is the general be-
lief IN this city that the defendants are
working with the idea that II they can
usurp control OF the powder company for
another year they can clean up" enough
IN that time to make the outcome Of the
present litigation OF little consequence to
then. even though the decision should be
an adverse one.
NEW SCHOOL BOARD OFFICES
-------------