Evening public ledger. [volume] (Philadelphia [Pa.]) 1914-1942, 1917-04-13

lDIj PONT FACTION
TO APPEAL CASE
Followers Of Pierre Contend
i. There Was No Moral
or Legal Breach
SCORED BY U. S. JUDGE
Chief Defendant Betrayed
Trust" Federal Jurist
Says in Decision
SCORED BY U. S. JUDGE
WILMINGTON, Del, April 13.

WILMINGTON, Dell April 13.
rb., defendants in the DUPONT stock suit,
,u,nfyine the ownership of powder stock
..,nerIv held by General T. Coleman
snpont announced today that they would
.nneal from the decision of Judge J. Whit
AVER Thompson. They issued the following
statement -,
..,,rse make an appeal to the higher courts,
snore the entire decision made by Judge
1,hompson, both his findings as to fact and
ss IN law can be reviewed. Counsel for
.the defendants did not question the sound
cess of the law as to the duty of directors
.nward stockholders of a corporation, but
shov oid contend and will continue to con-
,and that the facts in this case do not show
that there was either moral or legal breach
of trust. A great majority of the stock
Solders themselves either in person or by
nroxy at two annual meetings since the
4,inr of this suit one of them being since
the evidence was all before them, have
snnroyed by their votes, the action of the
ofHcers and directors in this matter. No
ono of those interested. aside from the
Siointiffs in the case voiced disapprovai."
Judge Thompson in his decision while
boIding that the directors are disqualified
from again passing on the purchase OF this
stock does not place any of the blame for
a breach of trust on them He confines his
severe criticism to Pierre S. du Pont.
PIERRE DU POINTS LETTER
Mfr. du Pont has written the following
letter TO the stockholders:
.sThe decision of Judge Thompson is i'm
nortant to the stockholders of l.. l. du
Pont-de Nemours Company. with respect
N the ultimate disposition of the stock pur
chased from Mr.. r. Coleman du Pont. but
s,so in regard to its effect on the personnel
Of the management of the company. The
latter has passed through a two-year pc
It,A tr,1xE t.,
the prompt execution of a great business
development by those in charge of the COM
nany's affairs. The executive committee of
the board of directors, consisting of Irenee
du Pont II. F. Brown. r. r. M. Carpenter,
F. L. Connabe. William Coyne, Lammot du
Pont, H. G. Haskell John j. Raskob and
f. G. Tal,man, together with the able men
they have gathered about them, are the re-
sponsbe factors in this success.
against these men the decision makes
no finding of bad faith betrayal of trust
or wrongdoing of any kind In this Judge
Thompson is in complete accord with both
the plaintiffs and defendants in the case,
as no accusation has been made against
the conduct of any of these men.
1.-THE stockholders may rest assured that
the management of the affairs of the COM
pany remains as heretofore in control of
an able body OF. men. whose character is
left unscathed by this opinion"
The case will go to the United States
Circuit Court of Appeals in Philadelphia.
RULES AGAINST PIERRE
Judge Thompson ruled that Pierre S. du
Pont, president of the Il. l., du Pont du
Nemours Powder Company was guilty of
= "betraying his trust as an officer of the
corporation in concealng information dur
ing negotiations for the purchase by the
company of the holdings of General T.
Coleman du Pont, valued at upward of
S57,0OO,O 900
He has filed an opinion in the Emitted
Estates District Court at Wilmington. up
holding the suit Of Philip F. du Pont and
other stockholders of the du Pont family.
which was brought to have the individual
purchase of the stock of Pierre and his as
socates set aside.
Tho decision is climax to a bitter family
T. c'ntroversy which started following the
purchase of the stock two years ago for ap-
proximately $14,000,000, after General du
Pont had offered to sell it to the company.
In deciding that Pierre S. du Points methods
In acquiring the stock were irregular, Judge
Thompson rules that the opportunity Of
the company to purchase the stock in dis
pute is still open, notwithstanding that its
acquisition would be of enormous profit to
1t. The Court decides, however, that the
majority of the board of directors of the
powder company is disqualified to act, and
could not summon qualified quorum, and
put the question before the stock
holders at a meeting to be conducted under
the supervision of special master to be
appointed by the Court The holders of
, the stock acquired from General du Pont
will not be allowed to vote their shares at
this meeting.
PhiD F. du Pont and his followers, Flea
nor du Pont Perot, Eleuthere Paul du Pont,
Archibald M. l.. du Pont, Ernest du Pont,
alfred ]. du Pont Francis /. du Pont, Louis
Albert de Casanove, Jr,. Henry S. Morris
and Charles Ellis Gooden, were the plain
inns in the court action against Pierre s.
du Pont Irenee du Pont, Lammot du Pont,
Alexis Felix du Pont, John j. RSskob, Rob-
ert Rulith Morgan Carpenter, Henry F.
du Pont, Eugene Il. du Pont, William Coyne
Harry q. Haskell, Harry F. Brown and
John P. Laffey
The Eucning Ledger tods the only neWs.
paper IN the United States 0hich published
ne details OF the du Pont fight for mil
i'ons. For toeeEs an exhaustive inUestiga-
t'on toas made by staff correspondents,
~hh the result that q complete series OF
articles todS published in tohioh the history
OF the du Pont family toas presented, to-
gether toith the facts of the fight in the
Idmfiy Which Uas finally aired in the
United States courts These articles tUere
printed In January. 1916.
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