Evening public ledger. [volume] (Philadelphia [Pa.]) 1914-1942, 1916-01-25
TUG or WE ovER BIC Powder CONCERN

entire stock issue of +. l. du Pont de
Nemours II Co.
After having disposed of his holdings
in the powder company I. Coleman du
Pont resigned the presidency and his di-
rectorship in the concern. Pierre 5. du
Pout was elected to the office.
ON September 4. 1915 a financial ire
organization" of the Il, |. du Pont de
Nemours Powder Company was effected
and r.. |. du Pont de NemourS K Co.
was established under the laws of Della
ware. This organization taking the name
Of the concern established in 1902 by
Eleuthere lrenec du Pont, is capitalized
at $2iO,O0OOOO or at twice the figure at
which the company it replaced had been
capitalized.
In 1901 the powder company had paid
n dividend of u per cent. ON its common
stock. Such dividends gradually in
creased in magnitude, and in 1910 and 1911
u per cent. was paid. In November 1915
h. /. du Pont de NemourS X Co. declared
Il regular dividend of ~ per cent. and an
additional dividend of 2Si2 per cent.-a
melon hitherto undreamed of even in
connection with war brides"
Philip f, du Pont alleges that Pierre
5. du Pont and the II other directors Of
the powder company, defendants in the
equity suit effected the reorganization
of the powder company ana declared the
30 per cent. stock dividend in order to OBJ
tain money with which to make pay
ments to r. Coleman du Pont for the
stock taken over by the du Pont Securi
ties Company.
The individual defendants In the suit,
who comprise a majority of the board Of
trustees of the powder company, are also
accused of accomplishing another pur-
pose by the declaration of the large divi-
dend, namely the depicting of the COM
pany's available funds to point where
n nhng 90. la
Coleman du Pont stock even if an oppor-
tunity to do SO presented itself
Philip f. du POnt is not alone in his
stand against Pierre ;. du Pont and the
other defendant directors of the powder
company. ON January 3, 1916 it became
known that Mrs Robeson Perot. of 5l5l
Wissahickon avenue, had petitiOned the
court TO be made "A party plaintiff to the
proceedings. She is a cousin to the orig
inal complainant, and, spurred by her
action, five other members of the du POnt
family filed similar petitions with the
court within ten days.
One of these petitioners was Alfred l.
du POnt, vice president, member of the
Finance Committee and a director of the
powder company. Immediately after the
news of his Intervention petition was
published the powder company issued a
statement asserting that on the day he
took this action a special adjourned meet
ing of the board of directors of r. l. du
Pont de NemOurs q Co. was held, and
Alfred |. du POnt was deposed from the
vice presidency and his position ON the
Finance Committee of the corporation.
The news brought a storm of protest
from independent stockholders and with
in a day Francis l du Pont, another di-
rector OF the powder company, also filed
a petition for permission to become a
party TO the suit against Pierre S. du
Pont and the other defendant directors
OF T. l. du Pont de Nemours & Co.
As the situation now stands a large
block Of stock, constituting balance of
power In the powder company, is held
by Pierre 8. du Pont and his associates"
included in the du Pont Securities Com
pany. These men, who are also directors
Of b. |. du Pont de Nemours & Co, and
defendants in the suit are Irene du
Pont, Lammot du Pont, Alexis Felix du
POnt, John j. Raskob, treasurer of the
company X. h. Morgan Carpenter.
Henry f. du Pont. William Coyne, Harry
G. Haskell Harry F. Brown, John p.
laney and Eugene f. du Pont
IL is considered significant that those
accused OF attempting 10 defraud and
seize control of the powder company
largely comprise the new blood" Incl
dent TO the Incorporation of the p. /.
du Pont de NemOurs Powder Company
and the advent of Pierre s. du Pont i'm
1902, when he was presented with the
stock which proved the foundation upon
which TO build tremendous fortune