Evening journal., 1916-07-26

their own Dtneul. But Wual Is the
fact as to what the percentage was?
The fact is that on the 23d and the
oath the participating banks had
percentage Of two and a fraction and
at the outside banks had a percentage
of two and a fraction; and II Your
Honor will examine the record up to
December you will find that the de-
posits in the participating banks in
percentage had gone down from sixty
FIVE or sixty-six TO ffty-hve OF ffty-
six and in the outside banks II went
up; and when you compare the four
banks in New York that did not parti.
cipate with the fourteen banks that
did participate, you will find an in
crease in the participating banks
Of one hundred and seventy-three per
cent. How can it be said that these /
men used the money Of the company I
TO forward their own purposes and I
help themselves? In the name OF
justice and honesty how can any one /
impute a motive like that? But, says /
my friend, they benefited by the con- /
dition. A man has a right to beneht
by all the conditions by which he is
surrounded. when he gets the benefit
Of the trust and confidence that comes
to him as an honored officer OF a
corporation. All this money was
guaranteed by themselves and the
guarantee was a real one. They took
the responsibility of Il, and they held
this from February until now; and
yet after waiting eight long months,
these gentlemen come into court and
ask you to say that although they took
the risk, although they more the heat
and the burden of the day. although
their private fortunes might have
been swept away in taking this block
OF stock. forsooth they must now
yield up all of the profits and the
stock itself. There could not he done
in the name of justice a more criminal
or unconscionable act than that
Take again the motives that govern
! ed these men. II is not said In so
many words. but il is said in better
way that facts and circumstances
unite to proclaim the truth. Men may
/ lie, but these things do not generally.
/ There are a lot OF little circumstances
| in this case which indicate what these
men were doing. You will remember
Graftmeier's correspondence which
/ Mr.. P. S. DUPONT says he sent in mis-
take TO this gentleman when he asked
/ for certain letters That correspond
ence lasted down into February before
there was any definite conclusion
reached about It. II was accepted at
the time Of these negotiations. They
wanted to get T. Coleman DUPONT to
pool his stock. Why? Because the
Allies were afraid something would
happen to disrupt this corporation and
prevent delivery of the powder They
were in peril of not getting any more
orders from these foreign customers.
If they maintained a position in which
doubt and uncertainty existed over
them. This is what prompted Pierre
s. dupont to ask T. G. DUPONT to pool
the balance of his stock II he sold the
forty thousand shares. Then comes
back his answer, no, he will not pool
any of it, but he will sell IL all. Then
comes the sale. But say that they
had a double laudable purpose. They
were striving to secure what they toe
! had started out to do, the distribution
Of stock thoroughly and equitably
among this new executive COMMITTEES
! and the younger members of the du-
Pont family. They we're striving also
to secure and hold the confidence OF
these foreign customers with whom
they were dealing and with whom. If
suspicion existed, their future was
doomed. There could be no success
without that assured.
Mr.. RaskOb Free 10 Go.
When this transaction is closed in
New York a great deal has been said
and I think undeservedly. by Mr..
johnson. when he refers TO Mr..
Raskob as being in the pay Of the
company and then going TO New
York for these few hours on this day.
Nobody who knows anything about
corporate existence and corporate ser
vice could ind any fault with his
J action in that respect. You will find
I that the president OF the Pennsylvania
Railroad Company can go into private
business and he does not consider that
: he has not such a right. Why do
they dwell upon Raskob going TO New
b York for a day to attend to important
/ matters? Il was a matter which was
not disassociated from the company's
! affairs. It was a matter which was
! most intimately connected with the
company's affairs, because II that
, block of stock were put on the market
, and sold. it might make changed con-
J ditions: it might bring about an al
! lance which would be a peril TO the
corporation; and they we're protecting
the interests Of the corporation as
J we'll as taking the chance OF making q
profit through a gamble in the stock
They say-Mr Johnson distinctly
SAYS in his argument-why he went
to New York when he only knew that
+ forty thousand shares would be sold
II he went to New York and negotiated
! the purchase, OF the whole block OF
2 stock ! say to the court that the
l testimony contradicts that statement
I On the 18th. there is a telegram sem
. by Dunham to T. c. DUPONT, TO which
=, an answer was received. and Mr.
Z Raskob says that either by phone ol
r bv a meeting he did know before ht
D went to New York that the whole
e block of stock was for sale, and hs
e went with that knowledge and h'
? dealt on that knowledge and th'
I thing was closed up and the settle
s ment made. They got their stock
y The Securities corporation was or
: ganized.
q Now a word in relation to that.
is charged here that he was seekinl
70 TO get control of this corporation.
r is the first time in my life / evel
= heard that securing control Of
S corporation, without some fraud. wal
Z an offence or was a thing that th'
+ court would lay hands on and restrain
y In that connection l would like 4
v read Your Honor a short excerpt from
L an opinion delivered by your forme
a on-aesoto Tudoa Crav in tho A1lar