Evening journal., 1916-07-18

department of the company for IL
years and was elected a member Of
the board Of directors on March 10.
1915.
It was Mr. Laffey who gave the
opinion to the board on March s,
to the effect that the company could
not expend beyond It's surplus 10 buy
its own stock
the board meeting on March and
said he did not carry several law
books in his arms as testified to, but
kdid have in his hand pamphlet copy
'of the New Jersey corporation laws.
Mr. Laffey said he was called to
the meeting by'Mr. Beardslee over the
telephone He told the directors that
he did not believe the company could
purchase its own stock beyond its sur
plus. At that time he was not a di-
rector. nor was he a holder Of any
stock of the DUPONT Securities Com
pany at that time
Mr. Laffey said he discussed with P.
S DUPONT probably the day before
the directors meeting. the matter of
buying the stock by the company and
thought IL was himself who started
the conversation on that subject.
He told Mr. dupont, the witness
said, during that conversation that II
was his opinion a company with S16,-
100000 in bonds and a bank surplus
Of about S6.000.000 could not buy 20
per cent. Of its own common stock
al 5000 when the book value at that
time was only s120
Mr.. Laffey said Mr.. dupont is no
way influenced him relative 10 his
opinion.
Mr.. Johnson cross-examined the
witness relative to a Gift that he re-
ceived of 500 shares of the stock of the
DUPONT Securities Company. at a par
value of 800 He said he received this
gift under the same conditions as
other heads of departments.
Mr.. Johnson also had the witness
again go over his talk with p. S. du-
Pont on the day before the board
meeting. After Mr. Laffey concluded
his testimony court took a recess
until 2 o'clock this afternoon.
Yesterday Afternoons Session.
The first question asked by Mr..
Raskob al the opening OF the after
noon session was that the records
showed on February IA. 1915 there
was a deposit made with Morgan and
Company TO the credit Of the powder
company for $500, 900. and he ask
ed who made that deposit Mr Ras-
kob said II was credited to the com
pany by Morgan and Company.
He was asked if there was any COM
munication from Morgan aud Com
pany relative TO this credit He said
he could not recall. but that the Nor
gan company probably notified them
by telephone, or otherwise, as to such
/ large credit
Were you in Wilmington or New
b York when that credit was made" in
/ quired Mr.. Johnson.
II don't know" replied Mr.. Rag-
kob.
He said the communication relative
to this credit was probably commun-
icated to the assistant treasurer.
He was asked what he did about
the matter when he learned about the
distribution of this money, among
Z other New York banks
He said that the distribution was
probably made by the assistant treas
I urer
Mr.. Raskob was asked who could
have signed checks distributing this
S5500.000 among other banks and he
! said there we're seven or eight people
in the company who could have sign
ed the checks
"The checks, IL made out on Feb
ruary "a. providing for the distribu-
tion of this credit. would not reach
New York until FEBRUARY 25, would
i they?" inquired Mr.. Johnson
fe rorrocf ronffod fI1 .,-gt
ness.
He said it was the custom of the
! company to credit banks with checks
on the day they were drawn.
: The witness was asked other ques.
= tions as to the distribution of funds
t credited by Morgan and Company
. and he again replied that this distri-
E button would be made by the assistant
? treasurer
"who was the assistant treasurer
t What was his name?" inquired Mr.
3 Johnson.
my brother, William F. Raskob,
the witness responded.
Mr.. Raskob was asked if he had any
] knowledge of how the money credit
ed by Morgan and Company was dis
. tributed among the banks.
Mr.. Raskob said he hardly thought
the question was fair, and wher
= pressed for another answer, said hs
really did not know who directed the
+ distribution of the amount referred
~ to.
4 Forming Of New Company.
!, a Mr.. Johnson asked the witnes!
4 what the purpose was for forming tht
4 new DUPONT Company to take ovel
a the old company's business.
Mr.. Raskob started out by telling o
!. a plan Of the directors formed in 1911
d for the reorganization of the compan!
Ie and went into a long statement a.
s. to those plans.
Mr. Johnson then questioned thl
o witness about the circular sent out L
k stockholders telling of the proposes
d reorganization, and asked him If thl
II plans that he spoke of as being work
n ed out by the directors in 1911, werl
Is included in the circular sent out b!
e the directors
ie He answered that they we're not
z Mr. Johnson brought the witnes
n back to the purchase of T c. dupont
L powder company shares again. ant
k asked him if the part of Nor
Is gan and Company crediting then
d. with large sums Of money. and tn