Evening journal., 1916-07-18
MORE WITNESSES
IN DUPONT Case
ON STAND TODAY
Continued From First Page.)

l1AAh eOitNtNtQ IillS morning.
do you know what Alfred I. du-
Points attitude was as to raising the
wages Of employees" inquired Mr..
Graham.
Mr.. Raskob replied that he had
been told that Alfred l. DUPONT said
P. S. dupont was extravagant in his
management and raised the wages Of
the employees 20 per cent. when it was
unnecessary.
In answer to a question from Mr..
Graham, the witness said after leav-
ing court yesterday he had the matter
of how the distribution was made
among other banks of S5,500,000
placed to the Securities Company s
credit with Morgan and Company, on
February "a, 1915. He produced
checks amounting TO S5,500,000 on
Morgan and Company, on February "a,
and said these funds were distributed
among New York, Chicago and Boston
banks.
Mr.. Graham placed in evidence a
copy of a letter sent by the witness 70
the executive committee at a meeting
held February 10. 1915. II was stated
in this letter that the construction
cost, because of abnormal conditions,
had been about s12,S0O.0O0 and. sug-
guested that IL be amortized at the
rate Of S1,000,000 a month and that all
expenses relative to the purchase OF
the International Chemical and
Smokeless Powder Company also be
amortized These suggestions were
included in a resolution adopted by
the committee at that meeting.
A resolution was also placed in evil
dence that was passed by the finance
committee at a meeting, held July IA
1915, which spoke Of a verbal report
having been made by Mr. Raskob, rela-
tive to amortization OF the abnormal
construction work. The finance COM
mlttee also approved Of the sugges-
ton
After several more questions by Mr.
Graham. relative to balances with
Morgan and Company and a few ques-
tions by Mr.. Johnson on re-cross ex-
animation. the witness left the stand
Henry F. DUPONT was the next wit
ness. He testified that he was a di
rector of the Powder Company IT
March, 1915, and attended the meet
ings held on March and 10 Of tina
year.
He testified that he voted agains
the resolution at the March 6 meet
ing to buy the stock from P. S. du
Pont that had been purchased from
T. c. DUPONT. He also voted agains
the resolution at the March 10 meet
inc which came from the finance
committee suggesting that an offer b.
made to P. S. DUPONT for the stock
When asked why he voted agains
those resolutions the witness re
piled:
"I did not approve Of the compan!
buying its own stock, and particu
larly as the stock was speculative a
that time. It was my opinion tina
the company's money should be KEEP
for constructive work, raw material
and for many other contingencies"
At the time the witness vote
against the resolutions he had N
stock of the DUPONT Securities Com
pany. and he said that no one had at
tempted to influence his vote agains
the resolutions.
Mr.. dupont testified that as a re
suit of a letter from P. S. dupont ol
April 16. 1915, he exchanged some o
his powder company stock for Securi
ties Company stock.
Mr.. johnson, in cross-eXaminatiol
asked the witness what other reason
he had for voting against the resolu
tions referred TO in addition to thos
he had already given. Mr.. DUPONT re
piled that one other reason was tha
Mr.. Laffey. the company's counsel
had given II as his opinion that tn
stock could not legally be bought b,
the company.
The witness was cross-examined a
some length as to whether or not h
would still have voted against tn
company buying the stock had b.
known it would turn out to be sue
a good investment as II has turne
out to. be. He said there would hav
been no way for him TO know that
and at any rate it was speculative a
that time, and he was opposed to tn
company buying its own stock
Mr.. Johnson asked Mr.. DUPONT if
was not true that P. s. dupont in a le
ter to him about the time that he e.
changed his powder company stock f.
the Securities Company stock, did NJ
state that the powder company stoc
was worth $500 a share. He could n,
remember this at first, but afterwarC
identified the letter which containe
that statement.
Irenee dupont. brother Of P. S. dl
Pont, and e-president, director ar
member of the finance committee of u
powder company, was the next witnes
He is also a defendant in this suit.
Mr. dupont said he was first spoken
about buying the T. c. dupont stoC
Just previous 10 February 20. 1918. an
attended n meeting Of the members
the syndicate about that time, whC
the proposed purchase Of the stock W,
discussed. He told of Mr.. Raskob goir
to New York about borrowing II
money. The witness also told of beir
present at the board meetings of Mar,
G and 10 and voting against the resoll
tions for the company to buy the stoc
His principal reason for his vote WI
that the stock was speculative, he sal
He was also present when Mr. LaffC
was called in on March and heard h
legal opinion given. This opinion.
said was that the company in buyiI
its own stock was restricted TO purchas
to the amount of surplus it had on har
at that time.
On cross examination Mr. dupont sa
he did not entirely disregard the opiniC
of Mr. Lafey in determining to vo
against the resolution. He thought. r
gardless of Mr.. Laffev's opinion. if the
was nothing vicious in the matter the
could get around the referred TO restri
tion some way. but he was opposed
the company buying its own commc