Evening journal., 1916-07-12
(Continued From Pgge I'd

latter. He SAID these letters had tol
do with the pooling of the stock of
the four largest stockholders and that
he thought they we're the letters that
Alfred I. DUPONT had requested. His
attention was called to the testimony
Of Alfred I. DUPONT, in which the
latter said they were not the copies
that he wanted. Witness said he un-
derstood they were the copies that
Alfred had asked for and that he had
no other reason for sending these !
particular copies. /
At this point Mr.. Graham offered
m evidence what he said was a state
ment Of the daily cash balances OF
the powder company in not only the
IA banks that participated in the loan
but also all other banks where the
company kept balances from January
/ to April /, 1915.
He said this statement included 4OI
other banks that were repositories
for the company in addition TO the Ia
banks referred to.
Mr. Graham, in a statement to the
court as to what the statement ne
offered contained. said 1t would snow
that from December /, 1914. to March
1, 1915. 623S per cent. OF the com
pany's deposits was in the ID banks
referred 10 that participated in the
loan and 1852 In all the other banks
and that from March / 10 December
Is. 1915. the percentage in the IA
banks was $3.50, and in the other
banks 1881 per cent.
"That is not what we asked for We
asked for the daily deposits in the
New York banks. other than those
that participated in the loan, where
the company had deposits" stated
Mr.. Glasgow.
"That was not mentioned before the
noon recess" replied Mr. Graham.
Mr.. Glasgow contended that he did
specify the New York banks In his
application The statement went in
The bill OF complaint and the
answer OF P. S. DUPONT to the same
we're placed in evidence, Il having
been brought out that copies Of the
same had been sent out 10 Etockhold-
ers. IN asking for proxies previous TO /
the annual meeting of the B. l. du-
Pont de Nemours and Company, held
in Wilmington, March 13. 1916.
The witness was questioned as tol
this meeting over which he presided. |
A protest against the voting OF stock
held BY the dupont Securities Com |
pany. at that meeting, signed by Alfred
l. DUPONT. and others. was placed In !
evidence. The minutes Of the meet
ing we're read by Mr.. Graham I'll
showed that AGA 26S shares OF the
6o7.9 shares OF voting stock were
represented and voted at this meet
ing. The stockholders by a vote Of
510qS4 shares against 1921 shares,
supported a resolution setting out the
details Of the purchase of the stock
BY DUPONT and associates from
T c. DUPONT and approved the deal
The minutes showed that Henry p.
Brown Of counsel for the complain
ants. was present az that meeting,
and presented The protest against the
voting OF The DUPONT Securities Conn
nany stock A resolution was adopt
ed by the stockholders. approving
and ratifving all acts Of the board Of
directors.
In answer to a question Of Mr.. Gra-
ham, the witness said he was presi-
dent OF the DUPONT Securities Com
pany. and that the number Of shares
OF stock Of that company voted AZ the
stockholders meeting was 126,62S |
Mr.. DUPONT stated that the directions
Of balances and selection of deposit
tories was the work OF the finance
committee, and not the president and
treasurer Of the powder company
He said this was fixed by a bylaw Of
the company.
At this point Mr.. Graham said,
Take the witness"
VI. Johnson CrOss-Examines.
There was a stir throughout the
room when the cross-examination
was started. as John G. Johnson, who,
up until this time. had been active
only IN an advisory capacity as coun-
sci for the complainants. took UP the
examination Of Mr.. dupont
Mr.. johnson moved over 10 a table
directly IN front OF the witness. and
conducted the examination while
seated he Immediately plunged into
an examination Of the witness as %
distribution Of the deposits among
New York banks, relative % those
that participated IN the loans Mr.
johnson asked The witness II there
was any resolution by the finance
committee that the president and
treasurer should arrange for the bank
balances. He said there was no such
resolution. az far as he knew. but
thought i had been fixed by resolu-
ton giving the finance committee that
authority
The witness. under more cross-ex-
animation. thought the treasurer
might have the authority for the dis
triouton of bank balances 70 a Ger
tzin extent He asked n there had
been any disapproval Of any action Of
ne treasurer by the finance commit
zee. relative % placing moneys in
banks and the witness replied that
there had not
me witness was examined az great
length relative 70 the jump in the bal
ances Of the New York hanks In
Nnicn the company kept deposits and
"nlcn participated in the loan about
me time OF the day following the .ir,c
mat Alr. Raskoh went TO New Yort ana
"a" DIT Porter. Of the Morgan firm
about the loan.
The witness said Mr.. Rasxob ven,
% the Morgan company as an individ
ual, ana not as treasurer of the cor
pany. He said Mr. Raskob came baoi
and reported favorably. as 10 his con
ference with Mr Porter He wa