Evening journal., 1916-07-13
5. DUPONT
SAYS MORGAN CO.
MADE DEPOSITS
New York Bankers, Not du-
Pont Company, Distributed
Money to Banks
Tells OF ENORMOUS WAR
ORDERS FOR EXPLOSIVES

Pierre S. dupont. president Of the
T. l. DUPONT de Nemours and Com
rany. in redirect examination in the
powder suit in the United States
Court this morning, testified that the
contracts for war explosives previous
% the time that the loan was secured
from Morgan and Company to pay
'or the T C. dupont stock we're for
$50 3740OO. and from then until Sep
tember of the same year 1915 about
SIX months contracts amounting to
s176, ,593 900 were received
The redirect examination of the
witness had not been concluded when
Mr.. dupont was temporarily with
drawn from the stand to allow Phila-
delphia and New York bankers who
participated in the loan to testify. The
substance of their testimony was that
The loan was made through Morgan
and Company and that they had no
dealings with either P S. DUPONT or
John J. Raskob. in regard to the loan
II was their opinion that the loan
helped the credit OF the company.
When the court reconvened at IL
o'clock this morning It was the be-
ginning Of the ninth day Of the suit
In that time 200 pages Of testimony
has been taken. Most Of this was
given BY Alfred l. DUPONT and Pierre
S dupont The usual large crowd was
on hand, including a number OF
women who have been regular attend
ants. By 11.30 O'Clock the room was
crowded and many persons were
standing in the corridor.
The heat seemed 20 have no effect
no the audience. and all chatted free
" before the session opened. Palm
Beach suits predominated.
General T. Coleman DUPONT was in
court early. He wore a brown bust
ness suit and joked with some of the
defendants about their summer raj
ment and the suit they have on hand
This was the fourth day that P. S
DUPONT. president OF the company, ha.
been on the stand. Mr. dupont stands
AZ all times. and has declined to 81
down during lulls in the case. Mr.
Johnson resumed the cross-examina-
ton Of the witness as soon as court
opened
Mr. Johnson questioned the wit
ness relatives to his answers to the
interrogatories and asked him If GER
tain answers were correct Mr.. du
Pont replied that they were
Mr. Johnson said at this point b,
was through with teh witness but
asked the defendants for q copy of a
letter dated February 13. 1915 II wal
necessary TO send TO the Office of the
company for the letter. and proceed
ings were stopped for ten minutes
until the letter was produced will
Mr. DUPONT remaining on the stand.
This letter was produced, and
when read proved TO be one from
T. c DUPONT 10 P S DUPONT, datet
February 1S. 1915. In this letter Mr.
DUPONT repeated his offer to sell some
OF his stock. and said in his opinion
II would go to $3.50 and probably $500
He urged that It was important tha
the younger members of the famil!
become interested in the common
stock He said he was willing Z,
let 90 10000 10000 or even 40,00l
shares of his common stock at thu
market price at that time. which h,
said he thought was about 5000.
He urged that II was necessary u
take the matter UP quickly to devils
some plan for buying his stock a
he price would probably soon ad
vance.
In the letter General dupont SAT-
what he was afraid Of was that tn
powers that be (the administrator
at Washington would do some foo
thing" that would draw this countr
into the war before we knew il an
in that case the dupont compan
would have to furnish powder TO "ou
own country" as well as the others.
Begin Redirect Examination.
After the reading of this letter Nj
johnson concluded with the witnes
and Mr.. Graham took up the redirec
examination. The witness said, i
answer to questions that Alfred
and william dupont. while member
Of the finance committee, had neve
criticized reports TO the committe
relative 10 deposits in banks.
Mr.. dupont also was examined as
the increased deposits in the New Yol
banks about the time that John
Raskoh went TO Morgan and Compar
to make arrangements for borrowing Il
money to buy the stock from 7.
dupont. He explained, as was done
cross-examination, that Morgan ar
Company were agents for the Allies az
that about the time the money was bo
rowed the Morgan house received s
100000 on the powder company's 60
tracts and some of it was deposited
the dupont Company account wi
Morgan and Company. The remaind
of this amount was distributed amol
other depositors of the company in Ne
York. TIe told Of other instances whit
Morgan and Company, on receivii
large sums on. their contracts, had sir