Evening public ledger. [volume] (Philadelphia [Pa.]) 1914-1942, 1916-04-08
DU PONT S5O,OOO,OOO
SUIT TO HAVE FIRST
PUBLIC HEARING TODAY
Representatives of Defendant
Company Present Argu-
ment Against Answer
ing Interrogations
DENY RIGHT OF QUERY
Say lnterrogatories Have No Bearing
on Case in United States
District Court

The first public hearing Of the
S5O,O00.O00 "du Pont suit" which has
been pending in the United States Dis
trict Court since last December. was laid
before Judge Thompson in the Federal
Building in this city today.
The activities of today were in the
nature of preliminary hearing. at which
representatives of Il. |. du Pont de Ne
mours & Co. and of the old Il, l. du Pont
de Nemours Powder Company presented
arguments to show why they should not be
compelled TO answer interrogatorics filed
with the court by Philip F. du Pont of
Merton. Pa, the original complainant in
the suit
The interrogatories require that the old
powder company name and show the
amount of money on deposit with various
banks and trust companies prior to and
Following the transactions complained Of
by the suing stockholders and further re-
duire that both the old and the new
powder company show the exact nature Of
all orders placed with them during certain
periods of 1914 and 1915
GROUNDS OF OBJECTION.
The defendants have objected to the
interrogatories on tho ground that the
questions have no bearing on the transact
tons which will he investigated in the
litigation. The complainants hold that
the replies might show that the banks
which noated a large loan 20 the de-
PENDANTS and enabled them to purchase
large block of the r. 7. du Pont de
Nemours Powder Company stock have
been rewarded" by having the size of
their deposit accounts increased by the
officials of the powder company.
The Complainants also hold that if the
various powder contracts are produced
in court they will show that the de-
PENDANTS knew that the stock they pur-
OF in
and that they were playing sure
thing" in Keeping this stock from the
company and obtaining it for themselves.
The II. I. du Pont de Nemours Powder
Company was rcorganized last September
into r. T. du Pont de Nemours e Co., n
corporation capitalized at S240,000,000. or
at twice the capitalization of the old con.
Cern. The directors and officials of the old
powder company automatically became di.
rectors and officers of the new.
If Judge Thompson decides that the
defendants must answer the nterrogatories
they will in all probability seek n delay
of 80 days in which to prepare their re-
plies which when filed would leave no OBJ
stacle in the way of continuing the hear
ings. If it is decided that the company
need not answer the interrogat tories it is
believed that the hearing of the case will
be begun within period of two or three
weeks.
ALLEGE FRAUD IN DEAL.
Philip +. du Pont, Alfred I. du Pont.
Francis /. du Pont and other stockholders
of the powder company who ere compain-
ent in the litigation, allege that the de-
PENDANTS fraudulcntly acquired T.. I. du
Pont de Ncmours e Co. stock valued at
more than S5O,O00,00O.
The stock in question was obtained from
General T. Coleman du Pont in December
1914, for about S14,O0OO0O. The complaint
ants allege that the defendant directors
voted down an offer by which the powder
company might have obtained these hold
ings in order that they might obtain them
for themselves through the du Pont Securi-
ties Company.
Pierre S. du Pont, president of the pow
der company, is accused of having been
the central figure in the alleged fraud.
He asserts that 1t was never to the best
interests Of the powder company to OBJ
tain the stock formerly owned by T. Cols-
man du Pont.