Evening public ledger. [volume] (Philadelphia [Pa.]) 1914-1942, 1916-01-12
ANOTHER DU POINT
ASKS TO JOIN SUIT
Continued from PAGE One


ment was made that he had been ousted
from office.
All of the complanants except Alfred
I. du Pont and Philip +. du Pont arc
children of the late Francis G.. du Pont.
and not only are benefcaries under his
estate. but also under that OF Alexis 1.
du Pont, their grandfather
This estate also includes many thousand
shares OF stock In the powder company.
The trustee is the Fidelity Trust Company
of Philadelphia, and as many of the
beneficiaries evidently consider II to their
interests as stockholders to become
parties to the suit. the trust company
doubtless will be forced to take stand
with the complainants.
Should the trust company decline to
become party to the suit, the bene-
ficiaries are empowered by law to pet-
tion the court to become parties to the
suit not only as individual stockholders.
but as beneficiaries under a trust which
they believe is not being properly ad
ministered The ousting of Alfred /.
du Pont has served to rally that entire
faction to his support, and array them
against the defendants.
The situation is now critical. Alfred 1.
du Pont has always been a moving power
in the corporation and his influence is
far-reaching. II was he who In 1902 tock
over the powder company when II was
about 10 be sold to the Lafiln and Rand
fowder company.
GAVE STOCK TO KIN
At that time Alfred l. du PonL brUdsht
Pierre s. du Pont, now president of the
company, and T. Coleman du FONT, both
his first cousins. into the business, and
presented to each of them n largo block
of stock in the company.
OF the three, Alfred l. du Pont was the
only one experienced in the powder in
dustry and for that reason he took over
the management OF the operative end of
the business. while his cousins attended to
the executive matters.
I. Coleman du Pont was elected presi-
dent and Pierre S. du Pont was elected
treasurer, and they retained these posi-
tions until early last year. when T. Cole
man du Pont sold all his holdings in the
company and resigned his office. Pierre
g. du Pont was elected to I'LL the va
cancy.
Shortly after Pierre S. du Pont be-
came affiliated with the powder company,
IN 1902. there was an inflow of new ma
teriai into the personnel OF the corpora
tion. and IL is Pierre s. du Pont and
these later arrivals who comprise the
II members OF the directorate who are
accused of fraudulently acquiring the
stock OF +. Coleman du Pont through the
du Pont Securities Company at time
when the powder company itself should
have taken over these holdings.
The stock in question comprises 63,3l4
shares or common and 1859 shares OF
preferred stock. Ii was purchased by
Pierre S. du Pont and his associates for
about si40oO.OOO and is now worth four
times that amount.
The Significance OF this deal" lies in
the fact that the stock thus acquired,
together with that individually owned by
Pierre s. du Pont and his Associates"
has given them control of more than 40
per cent OF z. I. du Pont de Nemours &
Co. stock.
II the suit against the du Pont Secur-
tiles Company Is successful the stock
acquired from T. Coleman du Pont will
20 into the treasury OF the powder cosn-
pany at the price paid for IL. and will no
longer represent a voting power for any
faction. Such an oFcome win not only
deprive Pierre s. du Pont and his asso-
elates OF control OF the corporation. but
will enhance the value of every share OF
the eompany's stock about 500
Those who have stood with Alfred l. du
Ponf In the development are particularly
angry over the recent action OF the board
Of directors They assert that Pierre S.
du Pont IN particular and the other de-
fendant directors in general have given
An excellent example OF the quotation rel |
aflre to the bitterness OF the serpents
tooth In pooling their interests against AL
1red 4. du Pont and then adding insult |
% injury BY ousting him from the vice |
presidency.