Evening journal., 1916-07-19


business handed over 10 him was very
large. and it was impossible for his
department. as then organized, 10 MI
the orders He then called on the
Engineering Department to erect new
plants and prepare to take care OF
this enormous war business
II was necessary, testified Mr
Brown, TO make enormous increases
in the operating force Of the COM
pany. He told of the great care that 7,
had to be taken in the manufacture
Of smokeless powder. and, conse-
quently 1t was a great problem Of
how TO get and train the men to man
ufacture the powder. BY March IL
1915, he said It was necessary TO null |
tiply the force Of his department ten
times and the matter was causing him
much anxiety. About that time many
I additional workmen were brought in
and when the company reached its
maximum capacity. in May of this
year, he had 10000 mon In his de-
partment, compared with 1000 wnen
the war broke out.
Mr. Brown testified that prior 10
March 1. 1915, there were orders for
100000 pounds of smokeless powder,
and 2.500.OOO pounds of gun cotton.
He said in March of that year. they
we're behind in their orders and wo~o
still behind in April, and did not calch
up with the contracts until the lat
ter part of May. 1915.
Mr Brown said there we're grave
questions from time to time as to
whether or not the powder could be
e. Il -. IL
contracts. The question of securing
the labor necessary to turn out the
powder was a question that caused
him much concern, and then there
was also a grave question as TO
whether or not they could make ship
ments. He said prominent men in
Congress were advocating the placing
Of an embargo on munitions. He said
these facts made it speculative at that
time as to whether or not the con-
tracts could be fulhlled.
Mr.. Brown, then told Of being pres
ent al the board of directors meeting
on March 6. 1915 and of voting
against the resolution to buy the T.
c. dupont stock from P S. DUPONT
at 5000 a share. He said previous to
that meeting p S. DUPONT had called
, him to his Office and told him that as
head Of the smokeless powder depart
ment he would get 1850 shares of the
stock OF the DUPONT Securities Com
, pany. This was bonus stock, and was
, given to the more important employees
! to increase their interest In affairs Of
! the company. Mr.. Brown said this
fact gave him much concern. relative
i to his action in voting on the resolu-
ton but that he considered il careful
" from a business standpoint, and de
s. cided il was a speculative proposition
q and the future highly speculative ant
n therefore he voted against purchasing
e the stock by the company.
ie Mr. Brown was cross-examined b!
10 Mr.. Johnson. and especially as TO tn
II gift Of 1850 shares Of the stock o
ia the Securities Company. Mr.. Brow
ie maintained that the gift Of the stoc
III did not influence his vote, as he con
sidered the proposed purchase by tn
"a company from a business standpoir
oss only. Mr.. Brown said the value q
~. w war contracts March I, 1915, wa
m about s60,00O,Oo0
NO NO He Wouldn't Forget t.
re William Coyne was the next wi
ness and he said he was director c
H. the sales department and thought h
he was director of the old powder com
as pany.
What did he say" inquired M
be Glasgow. Of counsel for the complain
nd ants.
To- "He said he thought he was dire'
90 tor" replied Mr.. Graham.
''If was director Of a $50 1000 ,0C
?" corporation, would not forget It
the last day of my life" said NJ
ed Glasgow.
ey Mr.. Glasgow thought the matte
over for second, scratched his hea
'o' and said, loud enough to be heard a
a over the room, "My God / wou
i.n never forget it,"
~ Mr. Coyne also told of being al
meeting attended by Mr.. Brown, NJ
~ Haskell and other department head
'e when p S, DUPONT said each of the
If. were to get 1850 shares of stock
.Wne W the DUPONT Securities Company.
~ Mr. Coyne also said he attended q
'se March directors meeting. and vot
~, ~, against the buying of the stock +
.,ne the company He told of a reserv
WI ton in a letter written by p. S. d
a., Pont to the effect that II the compai
bought the stock, he and other depai
ment heads would receive 1900 shar
Of the common stock of the Dowd
company He said the fact that
"a "h was 10 receive 1850 shares OF {
Securities Company stock did not
fluence him in voting against the n
az on olution. He considered the stock W
H'0 highly speculative as to the value
.. 5000 that was placed on IT,
~ During the cross-examination \
E tho Coyne said his salary with the CO..
pany was $4,000. Mr.. Coyne, in
NY swer 20 questions from Mr.. Iohns'
said he voted for the resolution
~" % dorsing the acts of the officers a
o,,t u also the purchase Of the stock by
be S. DUPONT and associates
ola The cross-examination was cont
bo lued at some length along the lines
the connection with the meeting Of
sd~ board of directors when the reso
tion 10 buy the stock for the ca
pany was voted down.
ant On redirect examination,
re- Coyne said he thought the price
the the stock az 5000 in March, 1915.
New speculative and that he sold 80 sha
100 at s211 on March IL. that he had ?
here chased in January Of the same
wit for S195.
Kicked yourself ever sii
M1Hr