Evening journal., 1916-05-20
DUPONT COMPANY
Wins FIRST POINT
lcontlnned From Page 1.l

December /. 1914.
Second. The quantities OF powder
manufactured and sold daily since
December 1, 1914.
Third. The names of the banking
repositories Of the DUPONT companies.
and the daily balances OF the dupont
companies In such repositories.
The impression today among per-
sons who studied the opinion was that
Judge Thompson had given a very
clear 'and business-like opinion. and
that the judge had narrowed the case
down TO questions that will figure as
essential hereafter.
Judge Thompson. I'm his opinion.
sets forth the averments in the case OF
Philip +. dupont against the defend
ants, and adds
1T is not denied by the individual
defendants that. when the stock OF r..
Coleman dupont was purchased and
during their negotiations, they had
Information that contracts were in
existence, about TO be entered into.
and I'm process Of negotiation and
were likely to be made within a short
time. which would be exceedingly
profitable and would largely enhance
The value OF the stock of the Powder
Company
of the number Of contracts en-
tered into or under negotiation dur
| ing the period in question. and the
aggregate amount Of money agreed
| TO be paid 10 the Powder Company
under these contracts are relied upon
as facts to support the averment I'm
the bill that, during the time Pierre
s. dupont and his associates were
negotiating for the purchase OF the
T. Coleman DUPONT stock. they had
Information upon which they based
an opinion of a large increase in
value OF the stock which induced
them to make the purchase. those
facts would be material in support
OF plaintiffs cause. That averment.
however is admitted in the answers.
The aggregate amount TO be received
under the contracts would be mate
rial as one OF the constituent facts
to prove another fact namely. the
amount Of the assets OF the company
available for purchase OF the T..
Coleman DUPONT stock. but such a
purchase under the averments OF the
bill must be from sums reserved out
Of working capital or out OF surplus
or undivided profits. The amount to
be received under the powder con-
tracts would not show the sums
which were or could be reserved by
the company as working capital. nor
the amount Of the surplus and undi-
vided profits of either the Powder
Company or DUPONT & Company.
"The amount OF money which would
/ would have been available to pur-
chase the stock Is not represented by
I the total amounts receivable from the
powder contracts, and those amounts
have no bearing upon II except IN
connection with all the costs Of labor,
material and all other expenses in
cident to the cost Of manufacture and
sale. without doubt. the plaintin
would be entitled under the pleadings
in support OF his cause TO a disclosure
OF the assets OF the powder company,
out OF which the latter would be able
under its charter to purchase the
stock, but I fail TO see what lawful
purpose can be served by compelling
the defendants TO place upon the rec
ord information which may disclose
a mass of details relative to its busi-
ness which is undoubtedly calculated
to burden. oppress and harass the
corporation defendant. when that in
formation OF itself would be OF no ma
! teriality. but could only be considered
in connection with items OF cost and
expense in order to reach the really
material facts.
"All of the information necessary ia
arrive at the material fact, namely
what assets were available which either
company was able 10 apply TO the pur.
chase of the stock. can be obtained
from the contracts themselves and from
the books of the defendant companies
This information IL entirely within the
reach Of the plaintiff under the provis
ion OF the 5sth equity rule, which en-
! powers a court or Judge To make sucl
orders as may be appropriate to effect
The inspection or production of docu
ments in possession of the other part
and containing evidence material to tn,
cause of action.
with this comprehensive remedy
, open to the plaintiff. from which the
amount available to the Powder Com
! pany under the provisions OF as
: charter for the purchase OF the stock
, can be ascertained. he will suffer nc
I deprivation OF rights in the produc.
I. tion OF evidence II the court refuse.
TO sanction the disclosure upon the
/. record OF what Is but a constituent
. element in arriving at the essentia
n fact to be ascertained. This reason
!. ing applies 10 the interrogatOries al
Z. 10 both companies and those relat
:. ing TO powder contracts. as well a
L to those relating to the quantity o
powder and other war munition
manufactured and sold daily.
!. "The remaining interrogatories re
Quiring the names of the depositorie
F.. OF the money OF the companies ant
y the daily balances on deposit since tn
+ first day OF December. 1914. and IN
e dates when each amount was opened
5 are intended TO support the avermen
S in the bill that Pierre s DUPONT. b
(. reason Of his official Connection wit
the Powder Company and by reaso
j. Of the connection OF his associates Il
the company, was in position 10 de
e posit large sums Of money derive
h from the company's contracts wit
o the banking institutions from whic
= the money was borrowed through IN
DUPONT Securities Company to pur
70 chase the stock and thereby obtain
n through the funds of the Powde
la Company a credit necessary for pro
n curing the loans.
There is no averment in the bill
.IanTn IL