Evening public ledger. [volume] (Philadelphia [Pa.]) 1914-1942, 1917-10-09
DU PONT MILLIONS UP
AT POLL TOMORROW
$45, 100000 in Powder Cash and
Stock to Be Voted on by
All Shareholders

Forty-nve million dollars in cash. stocks
and bonds are the stakes in tomorrow's vot-
ing OF 1924 shareholders Of the f. l. du
Pont de Nemours Company at Wilmington,
Del. in the presence OF a Master Of the
United States Court
Whether this vast sum, partly the deriva.
tion Of war profits. shall be permitted 20
remain the property OF a syndicate within
the company. including a number OF It's
officers or whether II belongs share and
share alike to the entire aggregation Of
stockholders is the matter at issue and by
direction Of Federal Judge Thompson will
be voted on by all at interest, either in
person or by proxy, at the meeting ordered
in his decision.
Two other important matters are con-
cerned IN the decision which the stock
holders poll will render. One is the con-
demnatlon or condonation Of the acts Of
seventeen men Of big business" who, IN
the opinion Of the Federal Judge, after sew
eral hearings in the celebrated case ac-
duired the $45,0OO 900 through breach Of
trust against their fellow shareholders. The
other is in the premiership or domination
of one uf the most noted families Of
O.
Delaware, whose plant established in the
first decade of the last century by Eleuth-
rere 1renee du Pont, is now one Of the main
relances Of the United States and the Allies
for munitions to carry on the fight against
Kaisersm There has been a split in the
family as the result Of the suits and counter
suits over the rightful possession of the
money at stake, and social, political, busi-
ness and Industrial factors are involved.
JUDGES FINDING
Judge Thompson, after hearing the al
most intermlnable litigation, adJudged the
seventeen insiders guilty of having acquired
$4,000, 900 "tn violation Of the duties
which they owed" TO their fellow stock
holders The question to be put to the vote
Of all at interest is whether these men, who
have defended their right TO their actions
through learned counsel, shall be permit
ted to cut up their 'melon" in peace, as
they assert is their legal and moral privi-
| lege, or whether this money shall. be dis
| tributed proportionately among every
| owner of stock.
The defendants allege refusal Of an orig.
inal offer, left the buying field open TO them
personally and privately.
The verdict will have an important hear
| ing in corporation law, since the principles
at issue affect many big organizations, as
| the decision will establish rights OF minorl.
| ties in dlctation Of general policies and
cover protection against syndicates Of in
| sders."
The stock at interest is now worth S60.-
| 947,00O. II was bought from General T.
| Coleman du Pont for S13,9O3,000 by the
| syndicate, which was composed of Pierre
S. du Pont, Lammot du Pont, Felix du
Pont John p. Laffey, general counsel for
the corporatlon John J. Raskob, treasurer,
| and a number of others. These men are
| the defendants in the suit brought by Philip
and Alfred I. du Pont and numerous other
plaintiffs, who alleged that purchase of the
| stock from r. Coleman du Pont for the
| benefit of the defendants, many of whom
are officers and directors of the company.
| was unwarranted and illegtimate, and
| that the company as a whole, and no
particular section of its inside" men,
| should profit by the purchase. knowledge
| of the contemplated purchase was kept
| from Alfred l., William and Francis. all
| directors, as also according to the court
| records other details of the business
| which prevented their knowing that stock
| quoted at about 5000 per share for COM
| mon and about $50 for preferred had ap
preclated by September 1915. to several
| hundred dollars per share.
The case of the plaintiffs was the las
| big one handled by John q. Johnson. HI
| scored the defendants so mercilessly tina
one by one they all left the courtroom ex
| cept Pierre Mr.. johnson said Teach
| these people (the defendants) a lesson tha
| higher than the mere acquisition of wealth
| 1t is better than money to dc
| right and that when they attempt to mis-
| use their position that such ac
| tion can never be attended by any results
| favorable to the man who attempts II.
| Concerning the syndiclte, Mr.. Johnson said
| These men played with marked cards. They
| were blinded by the gigantic fortunes before
| them"
Judge Thompson. In his finding, said
| "He in whom confidence was reposed oi
| faithfully representing the company in the
| nNf Nfang of hot zinc II
| trust through suppression Of facts and
| through abandonment of his principal by
suggestion of a sale from outside financing
| now take advantage of his own wrong and
successfully claim that the resulting with.
drawal of the offer relieves him
] of any further responsibility and puts him
| in position to thereafter deal for him.
self"
| The acceptance of the purchase was there.
| upon ordered put to the stockholders as a
body, and It is this issue that will be de-
| cided at tomorrow's polling