Evening journal., 1916-05-18
ASK Accounting OF
POWDER CO. VINDUP
Method OF Closing Out In
ternational Co. Affairs
Attacked in Court
COMPLAlNANTS SAY
ACTION WAS ILLEGAL

Az lON w AS ILLEOAL
Robert r. McNecley and Richard p.
McNceley. OF Philadelphia, trading as
AlcNeeley q Co.. glazed hid manuiae-
turers, yesterday afternoon filed ln 'hc
United States lOurt IN this city sult
TO compel am accounting of the winding
up OF the affairs of the International
Powder Company, DUPONT subsidiary
The suit names piclfe S. DUPONT, john
j. Raskob. Colonel -F-t. Bucknor, john
y. Iaiiey and some other officers OF the
DUPONT Powder Company, and i. Cole
man DUPONT, former president oi the
international Powder Company, as de-
PENDANTS. 10 is alleged that 10y the
manner in which the international
tompany's affairs were closed and the
corporation dissolved the DUPONT Pow
der Company was deirauded of several
hundred thousand dollars. Judge Brad
ford issued suhpoenas rctnrnable ON
june 6. Ward. Gray s. Ncary, OF this
citv. and Roberts. Montgomery Me.
Kcehan. of Philadelphia. arc counsel for
the complanants. The suit has no con
noction with any other suit against the
DUPONT Company.
At the offices OF The dupont Com
pany al noon 1t was announced that a
statement commenting on the suit
would be issued later i'm the day by
Pierre S. DUPONT and some of the
others named as defendants.
Il is alleged in the hill that in Janu-
arv 1918. IL was decided To dissolve
both the Chemical Company and the In
ternationM Powder Company by having
the former corporation sell all
its properties aud assets 60 the
DUPONT Powder Company. This was
,lonc the sale being effected AZ the price
nf s5.I6O.OOn. The Chemical Company
then maid in dissolution $50 ou each out
Standing sharaL it, stock. This gave
the mtomatiniB 81 Powder Company 81,
nl5.7S3. which with certain other assets
and liabilities. gave the concern tina
sum of sl.l3G.5n2 for distribution.
The international Powder tompnny
had s5.OO0.OOO lS5OOOO -harcsl "ut.
standing I'm common. as we'll as $3.50,
900 az s69.g sharcsl ia preferred stock
Each share of preferred stock was en-
Titled. IN ease Of dissolution to bc paid
af mar iSIO0. while the common stock
was entitled 90 nc retired with all the
assets remaining after the payments "a
the holders of the preferred stock Tho
assets of the international Powder
Company. it is claiaed. were sufficient
TO retire the preferred stock at S96.5o Q
share.
Instead OF retiring the international
Powder Company stock upon this
basis. the complainants allege that
Pierre S. DUPONT. e. G.. Buckner John
j. Raskob and John p. Laftey; beini
In control OF both the DUPONT Powder
Company and the international Pow
der Company. conspired 70 have the
dissolution of the International Pow
der Company cfccten on a basis thai
would result In large and Illegal
profits 10 certain stockholders OF the
International Powder Company and "a
the great detriment and loss and VIC
lation Of the rights Of the defendant
DUPONT Powder Company"
The defendants. Il is asserted
bought up the major portion OF the
outstanding preferred shares OF tho
International Powder Company held
by the public. at prices ranging from
$50 10 500 a share The purchase
was effected with the funds OF IN,
dupont Powder Company. II Is alleged
but the shares were nor transferred
10 that corporation. instead being hel,
by the individual defendants or thei
Representatives ASSIGNED in blank
Subsequently, it is averred. about 10,
600 Of the shares We're issued to pierr
6 dupont
On April %. 1915. the bill Of com
plant alleges. the DUPONT powde
Company owned approximately 32.9S
shares OF preferred stock OF the I'm
ternatiOnal Powder Company. ~ whic
number only Glib shares stood I'm IN
name OF the powder company OF n
remaining shares 10 120. stood i'm IN
name Of Pierre S. dupont and 7.75
shares stood In the name of +. {
Buckner.
it IS alleged the defendants cause
these shares standing I'm the name Z
the DUPONT Powder Company an
certain other shares of preferred stoc
10 be cancelled at $50 share. TIL
total number of shares cancelled q
$50 Is stated on belief to be % .55
n which number all but 321 stood
The name of the powder compan!
This Il is asserted. left the Intern,
iional Powder Company with S2.077
90S with which to cancel 1915.
shares Of preferred and $4,000 share
OF common stock outstanding. The bi
OF complaint continues.
Had the International pOwde
Company been dissolved i'm accor,
ance with law and the rights Of tn
stockholders the dupont Powde
company would have received appro,
naatoly Sil6.34i5O more than ID di
receive, TO wit tho difference betweo
va por share and $96.5O per share O
~ p oNimately 25.233 shares of pr,
fcrred stock"
Upon the cancellation Of the 25 r.
shares of preferred stock at $50
share, the International Powder Con
pany was I'M a position to pay SiOO
share on the 1875 shares of nrefe
red stock which remained outstan
ing, and to pay total of S346.3iS
the 10000 shares Of common sto
outstanding. and held by the dnpo
Powder Company according to I
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