Evening journal., 1917-04-25
dupont Company Denies Any Fraud in Distribution of Bonus Stock

so distributed are due to the fact that
! in those years the earnings Of the
company have been so large as to
give such results.
Ninth.-That prior to the month Of
February, 1916, the said h. ]. dupont
de Nemours and Company for the pur-
poses aforesaid acquired 1856 shares
of its own common stock, and shares
OF the common stock OF the said +. l.
dupont de Nemours Powder Company.
Tenth.-Since the organization of
this company In the month of Septem-
ber, 1915. II has purchases, for the
purposes aforesaid. 29.006 shares o. its
common stock at the average price OF
S305.S3 per share and 6,640 shares Of
its debenture stock at the average
price OF $10565 per share and 2 37l
shares OF the common stock of +. ].
DUPONT de Nemours Powder Company
at the average price of S104.77 per
share, and, except as herein stated,
these defendants deny the allegations
contained in the tenth paragraph Of
said bill.
Eleventh.-For answer to what is
OF the said bill, these defendants say
that between the first day of February,
1916, and the first day of February,
1917. il has purchased, for the pur-
poses aforesaid, 21 2S2 shares of its
common stock and 1920 shares of its
debenture stock.
Twelfth.-For answer to what is
contained in the twelfth paragraph of
said bill, reference is made TO the
foregoing statements contained In this
their answer
Thlrteenth.-For answer to what is
contained in the thirteenth paragraph
OF said bill, these defendants say that
the said e. l. DUPONT de Nemours and
Company. since commencing business
on the first day OF October, 1915, has
purchased 10000 shares of its common
stock, 16,640 shares OF its debenture
stock, and 2,371 shares of the common
stock of the said Il. ]. DUPONT de Ne
mours Powder Company, and has dis
tributed the said stock TO its employees
I'm accordance with the said bonus
/ plan the certificates for said stock. be-
ing delivered to the said bonus trus-
tee by whom the same are now held
In accordance with the provisions Of
the said bonus plan. Neither the said
bonus trustee nor any other bonus
trustee acting under the said plan or
any of its predecessors has voted the
said stock at any meeting of the stock
] holders OF the said company or Of the
said b. !. dupont de Nemours Powder
Company, but the said shares of stock,
when voted, have been voted by the
| persons in whose names the same
then stood on the books of the COM
pany, and these defendants. and none
1 of them, have exercised or attempted
to exercise any dictation or control
as to how the said stock should be
voted upon any question arising at any
meeting of the stockholders of the
said companies, or either of them. but
the said stock has been voted by the
persons in whose names it has stood
on the books of the said companies
as aforesaid, and these defendants
deny that any expenditure of moneys
OF the said company. or that the ac-
quisition and delivery of said shares
and permitting the said shares to be
voted upon, has been in pursuance OF
any scheme except under the plan and
for the purpose aforesaid, and these
defendants aver that the said rlan,
instead of being in fraud of the said
Company as alleged in the said para.
graph OF the said bill. has been Of
great benefit and advantage to the
said company in the profitable conduct
of its business.
Fourteenth.-FOr answer to what is
contained in the fourteenth paragraph
/ or said bill, these defendants state
that there has been expended. from
the funds in the treasury of the said
/ r, !. dupont de Nemours and Com
pany, from the time of it's organization
until the filing Of this bill. the sum
! of S10,S77 566.91 for the purchase Of
said stocks as aforesaid.
Fifteenth.-These defendants admit
that said r. |. DUPONT de Nemours and
Company awarded the said Edmund
u. Buckner, on account of conspicuous
services rendered by him to the COM
pany, 1850 shares of its debenture
stock and 1850 shares of the common
stock Of +. I. DUPONT de Nemours
Powder Company, for which there
was paid approximately the sum of
Two Hundred and Fifty Thousand Dol.
lars (S250,00O) and aver that said stock
was purchased and said awards were
plan hereinbefore mentioned and that
said stock is included in the stock men
toned in paragraphs Ninth 20 Thir-
teenth OF this answer; and these de-
PENDANTS deny, in this regard, the ex,
istence of any conspiracy or scheme
as set forth in said paragraph Fif-
teenth Of the Bill of Complaint herein.
and allege that said stock was so
awarded to said Buckner In due course
and by proper authority In pursuance
of said bonus plan.
Sixteenth.-F answer to what IS
contained in the sixteenth paragraph
of said bill, these defendants aver that
since the organizatio of said r. I. du.
Pont de Nemours and Company, by
proper corporate action duly taken by
its Board of Directors, the said Com