Evening journal., 1917-04-25

have been large. Otherwise there has
been no change, according TO the bill
to warrant any attack on the plan.
The defendants absolutely deny the
existence of any conspiracy or scheme
having for its purpose the distribution
10 themselves or other favored en-
ployes Of the assets OF the company
70 which they were not entitled. They
deny. also, that there was any thought
Of Increasing their control of the cor
poration through these distributions
as alleged in the bill OF complaint.
They deny the allegation that the
stock has been voted by bonus trus
tee: II has been voted by those IN
whose names II was placed as a re
ward for their services None of the
defendants, the answer says, has al
tempted to exercise any control over
the voting OF this stock or has in any
way suggested to holders how they
shall vote.
The answer states that there has
been expended from the fund OF T.. ].
dupont de NemOurs and Company tthe
present operating company from the
time of it's organization until the filing
OF this bill the sum OF Sl0,SI7, ,556.9l
in the purchase Of bonus stock.
Acquired in Open Market.
In answer TO the paragraph in the
bin Of complaint asking for the names
of the vendors Of this stock the de-
PENDANTS say that the bonus stock was
acquired from time TO time IN the open
market at the best price for which Il
was possible to purchase it They say
that since the organization OF +. j.
dupont de Nemours and Company and
up to the time OF the filing of this bill
1850 shares of debenture stock we're
purchased at the average price of
S106 65 per share and 29006 shares of
the common stock were purchased at
the average price OF S305,S3 per share
u is also set out that 2,S7l shares of
the common stock of f.. I. dupont de
Nemours Powder Company We're ac.
quired at the average price Of Si04.11
solely for the purpose Of distribution
among the employees In accordance
with the bonus plan.
lt is also pointed out that, as mat
ter OF fact. in certain years very large
sums Of money have been expended
in the acquisition OF this bonus stock
because the amount OF such bonuses
Is and for many years has been seven
the company after the payments OF
ordinary dividends on the debenture
and common stocks of the company
and during these years this surplus
has been unusually large because OF
the abnormal profits made out Of con
tracts for war munitions. The answer
sets out in full the bonus plan OF the
company which has been in operation
Tor thirteen years which divides the
bonus distribution into two classes
One Of these classes provides for the
distribution of stock for conspicuous
services regardless OF the company's
earnings. This class Is very small
percentage OF all the bonuses granted
The second class Glass "B"-was es
lablished with a view to sharing pro
fits with employees who have contri
buted most in a general way to the
company's success.
Employe Has Voting Power.
When bonus stock is awarded il
this class those to whom It IS awarded
have vested in them all the rights o
4 stockholder. though they do not be
come actual owners of the stock cert
hcates for five years The stock re
mains In the hands OF a bonus truste
who. each month for a period OF fv
years, credits the holder with one
sixtieth OF the value OF the stock
Meanwhile the employe In whosl
name the stock stands draws the divi
dends and has full voting power whicl
1e exercises at his discretion.
One section Of the bill or complain
refers specifically to an award Of $3.50,
BOO made 10 Colonel Edmund G. Buck
1er, director of military sales for IN,
company. The answer states that thi,
award was made for most consplcuoui
service rendered by Colonel Bucknei
and was made in due course and b,
proper authority.
Col. Bucmer is q vicepresldent O
the company and Is the man who hat
personal charge OF all the negotiation,
which brought to the dupont Compan,
The hundreds of millions of dollars II
contracts for war munitions supple,
70 the belligerent nations Of Europe
which have become allies of the Uni
ted States since this country declare,
war on Germany
The answer in full follows
IN THE
DISTRICT COURT OF THE IrNITTI
STATES FOR THE DISTRICT Oh
DELAWARE.
IN EQUITY
ELEANOR DUPONT PEROT a Cit
zen and lnhabiiant of the state O
pennsylvania, and residing therein
COMPLAINANT.
VS..
PIERRE 5. DUPONT. HENRY F. DU
PONT IRBNEE DUPONT. EUGENl
e. DUPONT, LAAlMOT DUPONT