Evening journal., 1916-07-20
CROWD IN court
As J. c. JOHNSON
Opens ARGUMENT
Continued from First PAGE.

next week each side will be given a
specified time in which to file briefs.
This suit, which started on June 2s.
Is an action on the part of Philip F.
DUPONT, Alfred ]. DUPONT and others
10 try TO upset the purchase by Pierre
S. DUPONT and associates Of the en-
tire holdings Of General dupont, the
former president OF the corporation,
in February, 1915. for about $4,000
600, and TO try 10 turn that stock
over to the powder company. The
stock is now worth about $50 .000. 900.
The courtroom was crowded long
before the hour for opening court.
Practically all the early arrivals were
women and before II O'Clock every
seat reserved for the audience was
occupied and probably fifty women
stood up along the wall in the rear OF
the room. The special attraction Of
course, was the prospects OF hear
ing John G. Johnson. the noted cor
poration lawyer and chief counsel for
the complainants. present his argu-
ment to the court.
Mr.. Johnson arrived in court early
and az once got busy with the other
over papers, preparatory 20 starting
his argument. After going over some
papors for a short time he leaned
back in his chair and chatted with
the other attorneys
Counsel and principals on both
sides were all early in their seats.
p. S. dupont. president Of the great
powder corporation, with bis brother,
Irenee DUPONT. vice-president. ana
John J. Raskob, the treasurer, were
early In their seats and seemed in
exceptionally good humor They
! laughed and chatted with fellow de-
PENDANTS and other friends.
Alfred ]. dupont also was an carly
arrival and talked with some Of his
friends while awaiting the opening
OF court.
BY II o'clock the room was crowd
ed 10 such an extent that probably a
! hundred persons who were unable 10
get in we're standing in the corridor
near the doors Half of the mem
bers of the New Castle county bar
we're present and also many promi-
nent business men Of the town.
Mrs William G. Mahaffy, wife Of
the clerk Of the court, and Mrs j.
/ Whitaker Thompson. wife OF the
/ Judge sitting in the case, have been
among the visitors to the court room
from day to day. since the case start
ed. Judge and Mrs. Thompson have
been the guests of Mr.. and Mrs Ma
hairy part OF the time since the trial
opened
Among the women present when
Mr. johnson started his argument
we're: Miss Anne Hilles, Mrs. William
c. Nesbitt. Mrs. Abram p Frantz, Mrs
Otho Nowland, Mrs. Lammot dupont
Mrs Ernest dupont. Mrs. Felix du
Pont, Mrs. John ]. Raskob, Mrs
Charles r. Miller, Mrs. Marshall Bar
ton. Mrs. Murray Stewart, Mrs
Frank Carpenter, Mrs. w. w. Laird
Mrs. Hollyday S. Needs, Miss Emily
p Bissell. Mrs. Robert Fl. Richards
and others.
\ II was about IL o'clock when Mt.
Johnson opened his argument There
were no preliminaries whatever. As
soon as Judge Thompson took his
place on the bench, Mr.. Johnson
/ stepped to the desk facing the court
and started his argument
Mr. Johnson made no attempt what
ever at oratory. He made his talk
direct TO the court as though there
was no one else in the court room
but Judge Thompson and never once
looked around. What few gestures
Mr.. Johnson used he made with his
! left arm while his right hand gripped
the back of a chair.
In opening his argument Mr.. John
/ son said he would contend that p. S.
! DUPONT and his associates had ac-
quired in violation Of a grave duty
that they owed TO the corporation the
stock OF 7. c. DUPONT for them
selves
Mr. johnson contended that under
the New Jersey charter, the purchas-
ing of the stock OF the company by
the corporation was as legitimate as
any Of its other acts.
j The speaker said the charters Of
some corporations prevent them
dealing in their own shares. but IL
was not so in this case. I'VE are
dealing in this case with the acquisi-
ton OF the shares which gave 10 them
/, power which they could use and
!, control this corporation" said Mr..
Johnson. He said they we're not
7 dealing with the ordinary case. but
something which has greatly affected
the company and which will con-
/; tinue to affect IL. which is noticeable
in the action of the corporation in
doubling its capital. etc.
, Mr.. johnson argued that the duty
of a paid official Of corporation is
, TO the corporation first. even when II
is against his personal benefit. He
/, claimed that the stockholders have a
= right TO expect the high paid Off
cials to look after the affairs OF the
corporation TO their advantage.
Mr.. Johnson next took up in his ar
gument the opinion submitted to the
board Of directors by John P. Laffey
counsel for the company on March
6. 1915, TO the effect that the corpor.
alton could not go beyond its sur
plus in buying its own stock. He
told of Mr. Laffey. in substantiatinl
his opinion of reading from section
80 az New Jersey corporation laws
This" said Mr.. Johnson, had about
as much to do with this case as the
dropping of a piece of ice might have
He ignored the real powers that thiI
charter gives under the New Jersey
laws"
Mr.. Johnson read at some length
. from the New Jersey corporation laws
in contending that under this Law
there was no limit TO its acquiring It's
own shares. He declared the powers
Continued on Page Seven.)
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