Evening journal., 1916-05-18
SUIT DOESN'T stop
DUPONT Dividend
dupont Company Required
TO Answer Trenton Suit
on Monday
LITIGATION is NOT
REGARDED SERIOUS


There was some speculation today as
TO whether the suit iied by Hetty L.
Henry, of Pompton Lakes. y. j.. 10 try
TO set aside the reorganization Of the
DUPONT Powder Company. win stop the
payment ol the dividend Oh stock of r.
I. DUPONT de Nemours end Company
Cthe new company.
Nice-C Chancellor Howell, Of New Jor-
scy, has issued an order for the DUPONT
Company to show cause IN Jersey City
ON May ~ why an Injunction should
not Issue restraining tho company from
disposh OF the properties Of the New
Jersey corporation, and also show cause
why the Delaware new company
should not be restrained from paying
dividends on the properties Of the New
Jersey corporation. The order sets forth
that II is not intended 10 interfere with
the ordinary operation Of the factories
and plants Of the DUPONT Company
The DUPONT Company is required 10
answer on Monday next, and there
was feeling today that the COM
panys answer will be such that no
order will be issued TO hold up divl-
dend payments. especially when the
rights Of thousands OF persons are
involved The DUPONT Company direc-
tors are 10 meet on Wednesday next
10 declare a dividend.
There was feeling today in fnan-
cial circles that the New Jersey suit
Is not serious, inasmuch as the Della
war company took over the New
Jersey corporations property. assets.
contracts. etc. in October last with
out any objection being voiced by
stockholders. and all stockholders Of
record at that time being treated ex-
actly alike IN the distribution Of stock
under the reorganization.
At the DUPONT Company Offices. II
was stated that the suit was not
deemed Of sufficient importance TO
comment on
It was said today that Hetty L..
Henry formerly was connected with
the DUPONT Company and that she
owns four shares Of stock in the old
DUPONT Company.
The transfer records show. It Is
said that her stock was bought in
the open market since the reorganiza-
ton of the dupont Company. She
owned two shares of stock prior to
reorganization, but Il is said the rec
ords show she sold those shares. This
is expected TO have an important bear
ing on the case.
The directors Of the old DUPONT
| Company justified the reorganization
OF September. 1915. by reason OF a
clause In it's bylaws which provided
for such transfer Of the company
properties If the consent Of twO-thirds
of the stockholders were obtained
The plaintiff holds that this clause
4 violated the laws of New Jersey in
7 force at the time the transfer was
made.
The complainant holds that by rea-
son of the "entiro and absolute IL
/ legality" OF these transactions there
| is no reason why the DUPONT Pow
der Company. OF New Jersey, should
not be reinstated in possession Of its
property and assets Of which the de
PENDANTS have "unlawfully attempted
to deprive IT,"
The complainant also asks;
SHOULD they (the defendants) at
tempt to keep themselves within tn
jurisdiction Of this court the com
plalnant prays that a receiver ma
be appointed by this court to TAX
possession and charge Of all the as
sets which formerly belonged to tn
said New Jersey company, and
necessary. TO continue the Operatio
OF said plants under the direction {
this court for the use and benefit
the stockholders OF the said New Jel
sey company
b In conclusion the complainar
asks:
= That the defendant powder con
I panios and the defendant directors
those companies answer the bill
complaint:
That the defendants repay TO Il
7 treasury OF the New Jersey Compar
j all dividends Illegally paid out OF j
assets and earnings;
a ! That the Delaware corporation n
j. turn 10 the e. I. DUPONT de Nemoui
. Powder Company all its properti'
and assets.
That the court compel the office
OF the old company TO perform the
;, prOper duties TO that company;
= That. II necessary a receiver be a
a pointed to take charge OF the prope
7 ties in question;
That the defendants be restraln
q from declaring further dividends al
o restrained from disposing of the pro
a critics OF the corporation:
n That writs OF subpoena may be
= sued commanding the defendants
o. abide by the DEGREES Of the court al
compelling them 10 answer the all
cations OF the bill Of complaint.