Evening journal., 1916-07-20
CROWD IN court
AS ]. c. JOHNSON
Opens ARGUMENT
(continued From Pgge 2l


the benefit of the corporation.
Mr.. Johnson contended that the
working capital of the company on
December 81. 1914 was S24 900 900.
investments. $4,000 900, and deduct
ing current liabilities of $3,000,O0 and
the bonded debt OF Si7,000,0 900. which
had long term of years to run. there
remained an excess Of current as
sets Of about S3S.0OO.0O0 He also
spoke of the large amounts that had
been received in advances on con-
tracts by that time.
The working capital. the speaker
said. had increased to S4S, 100000 by
February 2S, 1915, about the time the
stock was purchased. This increase
in working capital had taken place.
he said. from the time that Alfred I.
dupont had stated $3.50 a share was
too much until the time the stock
was bought by p S. DUPONT and as
sociates.
"Is it any wonder" asked Mr..
Johnson. that Pierre. in his letter
to Coleman. at about that time, said
100 per cent. on the common stock
about that time was in sight?"
There is nothing in corporate
management and nothing in life that
is certain argued Mr. Johnson. in
speaking OF the risks that the cor
poration took in fulfilling the large
war contracts.
Returning TO the matter OF funds
over surplus for the purchase Of the
! T. c. DUPONT stock, Mr.. Johnson
said: They had cash in hand OF
! from twelve to fourteen millions in
the banks for eight months and then
they say they we're not able TO buy
and that II was hazarderous 10 buy"
At this point in his argument Mr..
Johnson gave some figures that at
tracted much attention among the
spectators. He said on September
80. 1915, the working capital was
slO4. 100000. the other assets S121.-
100000. and the capital assets $751;
OOO,O
Mr.. Johnson also stated that what
ever else there may be In doubt in this
case there can be no doubt but that
the corporation on March / could
have bought this stock and paid in
cash for II
He contended that P. S. dupont
and his associates acquired for them
selves this stock in violation of a
grave duty Stock" he said. "of i'm
mensely more value than they paid
for IT, and when the true value was
known to them
At this point Mr. Johnson said there
were several points which the com.
plainants relied on.
He argued that the shares were &C
quired by P. S. dupont, his brother.
in-law. his two brothers and Mr.. Ras
kob at a time when there rested on
him the duty of carrying out, II pos
sible the negotiations OF buying thi;
stock for the corporation. which ne
gotiations had been started the prev
p ious December. Mr. Johnson claim
ed the stock was secured by official
, of the corporation for personal bene
fit
Mr.. Johnson argued that under tn
Sherman act, 1t had been held tina
the ownership of a corporation doe
b require that the actual majority o
, stock be held. but that If a clique
holds so near a majority that a few
scattering outlying shares will give
a majority. then it is the ownership
He stated that from the time tn,
| DUPONT Securities Company was or
! ganized, P. S. dupont and associates
became in absolute control Of tn,
, corporation, as much so as though
they owned all the stock.
Mr.. Johnson next dwelt at some
length on what he termed as the
; vicious" act of "ousting" Alfred l
DUPONT from the corporation 'be-
, cause he opposed them acquiring foi
themselves that which should have
, gone to the corporation" He mex
touched on the correspondence be-
I tween Alfred l. and p. S. duPonf
when the former requested copies O.
certain letters and accused p S du
/ Pont of bad faith in sending the wronl
copies. Mr.. Johnson delved into tn,
= correspondence with T. c duPOn
! relative to his stock and also tn,
, conversations that p. s. DUPONT haG
with General duPont's representa-
! tive, L. l.. Dunham. about the stock
r He argued that at no time had theri
ever been mentioned anything abou
General dupont selling all OF his holt
? ings until the actual sale was made
l He referred 70 the actual negotiation
! that we're carried on by the compan,
for the stock late in 1914 and also 4
the conversation between Alfred ant
n Pierre DUPONT early in 1915. whei
i the latter claimed the negotiation
! Z with 7. c. dupont were all off be
cause the finance committee had turn
. ed down General duPonts offer
was his conterl.on that there wa
I. nothing official to prove that tn
. negotiations were off and they wer
only off because P. S. DUPONT saw fl
= to call them of.
Al this iuncture Mr.. johnson ha
= reached the part that John j. Rasko
> the treasurer of the corporation, toe
: in securing the loan from Morgan & c
= to buy the T. {. DUPONT stock. He to-
: of Raskob hurrying over to New YoI
to borrow money to buy all Of Gener
= duPont's holdings when there appa
Il emily had been no intimation that II
! latter would sell all his holdings !
, referred to Raskob as the paid treasur
of the corporation, going TO New Vol
o on personal business against the be
; interests OF the company. "What wou
y have become Of the F.. |. DUPONT de y
. mours Powder Company had Rask,
, carried out his threatf" inquired Il
/ speaker. He said Mr.. Raskob had sa
$ he considered he had a right TO lea
y the corporation for his personal busine
J. ut any time and would not be connec
ed with the corporation under any 9th
le conditions.
- In speaking Of the deal that p :
! dupont put through buying this stool
- Mr.. Johnson spoke of the giganti
- fortune that fitted before his vision
-.