Evening journal., 1916-07-12
continued from Flrst Paee.


Justice against the company.
One Of the largest crowds that has
attended a session of the court since
The case started was present at the
opening Of court this morning. The
excessive heat was no drawback TO
those who wanted TO watch and hear
the proceedings. The fact Of p. S.
dupont head Of the great powder
concern, being on the stand ana
under cross examination at the hands
OF John G. Johnson. the noted corpor-
alton lawyer, of Philadelphia, at
racted the unusual crowd.
There were also more women pres
ent than usual and they followed the
case with close attention. Most oil
the women are stockholders in the
powder company and some are the
wives or otherwise related to either
the complainants or defendants 10 the
suit
Al the opening Of court Mr.. John
son had read into the record the bal
ances in the four New York banks
IN which the company kept deposits
other than the fifteen from which the
loans were secured for payment OF
the T. c. dupont stock
When the cross-examination OF Z. ).
dupont was resumed by Mr.. Johnson
fhe first question asked was:
oYou told us yesterday that II was
some time in March before you knew
what banks the loan had been placed
with by Morgan & Co..
"That is true" replied the witness.
The witness repeated in answer 10
questions that until some time in
March neither he nor Mr.. Raskob, the
treasurer. knew what banks had taken
The loans.
nDld Mr.. Raskob tell you," asked
Mr. Johnson, "how Morgan knew who
your repositories were In New York
Yon know fifteen out OF the nine
teen banks where the company kept
deposits we're tho banks that made
these loans"
"He did not" replied the witness
II don't know that he knew that"
When asked by Mr.. Johnson II II
did not strike him as peculiar that is
out of the 10 repositories OF the COM
pany IN New York should participate
I'M the loan. the witness replied that
II did not strike him as being unusual
Or peculiar, as they were the largest
banks in New York, and that II was
reasonable to think that Morgan q Co
should place the loan with those
banks.
Mr.. Johnson next questioned the
witness as TO what his syndicate aaso-
ciates IN the DUPONT Securities Com
pany, who had borrowed money to
pay for the +. c. DUPONT stock we're
worth outside Of their DUPONT inter
ests. Mr.. DUPONT said he could not
say, as he did not know.
Mr.. Johnson then questioned The
witness as to his wealth at that time
outside OF his DUPONT interests, and
he replied that outside Of his duPon
interests. he was worth about "a,
600 600 nc that time.
The witness was also questioned a
70 the onicial connection Of his asso
ciates In the purchase Of the stool
with the powder company He wa
iso asked this question after he ad
mitted that he has had some expert
ence with banks IN the borrowing o
money. as it considered a desirable
thing In securing a loan, to have
deposit about the size OF the loan II
the leading bank?'
Mr.. DUPONT said he thought tha
was desirable and that from hii
knowledge of bank loans we're gener
ally secured from banks where the Dor
rover had a balance, and that the
custom. as he understood It, was tC
lend four OF Ave times as much TO
customer as he had on deposit.
Mr. Johnson asked the witness l
inside OF fifteen months the syndicat
4 HN
chased al 5000 a share S1S3 80 shar
An dividends. The witness reptile
that II the records showed that
was true.
Mr. dupont was next questione
about the proposed 30 per cent II
auction of the stock OF the old con
pany. and asked II that would not ao
500 more 20 these shares making
total of s273 so that had been receive
on the stock bought for 5000. The WI
ness said that was true.
Mr. Johnson asked II this In rouI
numbers would not bring in s45 00(
600 more on the stock purchased, al
he replied that he thought that WI
right. =,
witness as TO the formation OF the ne
(the present. company ana asked
two shares OF common stock sellil
AZ about $3.50 a share was not T
celved for each share Of the o
stock making a total OF about lzo'O
shares Of new stock received by q
dupont Securities Company. lie
piled that was true.
Mr.. johnson asked the witness II
was not true that S1S3.5O was 7
ceived on the stock in dividen'
within fifteen months; 500 a sha
more when the reduction Of the car
talization Of the old company wou
be made and that in addition TO tn
n the 10000 shares in the new cor
pany was not worth s43.O00,000 MOI
The witness said that was true b
that they only got the same perce
tage as other stockholders received
"Oh, we are questioning you nc
about who owned the good thing T
marked Mr.. Johnson.
Mr.. DUPONT was questioned abo
the participations in the stock su
scription Of the dupont Securiti
Company by Messrs. Laffey, Coyl
Haskill, Brown. Tallman and Ra
saw He asked why stock valued
$4,000 was turned over to each
these men and he said II was becal
thcy were al the heads Of deps
mcnts and it was following out
plan of the company to get the m
important employees to become la
Stockholders.
Nfr.sas al