Evening journal., 1917-04-13
Orders Meeting Of Stock
holders Of New dupont
Company to Vote on Pur-
chase Of I. c. duPOnt'S
Former Stock at $500 a
Share
DEFENDANTS APPEAL
WILL STAY THAT ACTION

Judge J. Whitaker Thompson, Of
Philadelphia, in the United States Dis
trict Court in this city yesterday after
noon filed a decision in favor of Philip
F. DUPONT and the co-complainants
in their suit against the Il. l. DUPONT
de Nemours Company (the old corpo-
ration), h. ]. DUPONT de Nemours and
Company (the new cOrpOration). and
the directors OF those companies
who are associated in the du-
Pont Securities Company. growing
out OF the acquisition by the Securi-
ties Company Of the stock formerly
owned by General T. Coleman DUPONT /
This stock. acquired at the time by
the men composing the Securities
Company for about S15,56S.000. is es- f
tmated to have value now. with the
dividends on It, OF about S5S,000.000.
The defendants in the case an
nounced today that they will appeal
| from the decision.
/ Judge Thompson rules that "full
disclosure of all the negotiations by
Pierre 5. DUPONT. as a director of the
company and member of the finance
committee. looking to the purchase ~
| T. c. duPonts stock should have been
submitted to the finance committee
and the board OF directors for their
action before negotiations for the pur-
chase OF the stock for the company
were terminated. The stock IN ques-
tion, after negotiations for its acquisi-
/ ton by the company were terminated,
was bought by Pierre S. DUPONT and
his associates, who formed the DUPONT
Securities Company, which holds the
stock.
Judge Thompson decides that the
| directors OF the powder company who
are also interested financially in the
dupont Securities Company are now
fdisqualihed, because of their interest
TO pass upon the question OF the par
chase Of the stock formerly held by
lit. C. DUPONT. and he orders that
meeting OF the stockholders OF tic E.
H. DUPONT de NemOurs and Company
! Nhe new corporation) be held, 10 be
conducted by a master to be named
bv the court, at which the question or
tho purchase by the company Of the II.
c. dupont stock be voted upon by the
stockholders. Voting of the stock ac-
ouired from T. c. DUPONT. or the pro-
ceeds OF It, is enioined at that meet
ing.
An appeal in the case, II is expect
cd would stay the meeting OF stock
holders ordered by Judge Thompson
at least until the Court Of Appeals
can pass on the suit
II was a subject OF some comment
today that when T. c. duPOnts stock
was acquired by the present owners.
the only dupont Company in exist
ence was e. /. DUPONT de Nemours
Powder Company. e. I. DUPONT de
Nemours and Company was not then
in existence. yet Judge Thompson
orders the question of the purchase
OF T. c. duPonts stock voted upon
by the stockholders OF the new com
pany. and makes no provision for
stockholders Of the old powder COM
pany-the only company in exist
ence when the stock was offered-to
vote upon the question OF purchase
of the stock
The stock involved the acquisition
OF which would be voted upon II
Judge Thompsons decision should
e prevail includes:
! The common stock Of the DUPONT
D Powder Company of New Jersey ac-
e quired from Coleman DUPONT (63,-
% 314 shares)
All dividends on this stock since
Il was acquired by the defendants,
with interest on such dividends to
. date.
. The common stock OF f. I DUPONT
, dc Nemours & Company acquired from
these 63.314 shares Of DUPONT Pow
der Company common stock in the re-
organization of September, 1915 (126,
62S sharesl
All dividends on these 126. .e2s
. / churac al II duno,,f 10 NTo,.,r...... O.
. Company common stock. with inter-
est to date on such dividends.
The money derived from the sale OF
debenture stock of L. I. dupont de
Nemours & Company acquired in the
reorganization Of September. 1915
from the preferred stock of the du.
Pont Powder Company of New Jer.
' sey bought from r. c. dupont ia.
F, o5s shares) with interest to date
All the above are estimated to b,
worth about S5S,00O,OO0 today. Thl
e original Investments of the men com
f prising the dupont Securities Com
e pany in the stock at issue. was S13.
e. 600 900 (in round fgures) and the in
Y terest to date is Si666S 600. making
l. Sl5,56S, 900 that the defendants would
Ie be reimbursed il compelled 10 urn
A. their stock and dividends over 10 'n0
K powder companies.
IS Judge Thompson in the course ~
at his long opinion. decides La ,,,.,s,.
III powder company haa iesa4 80 e,,e4
- Inv ne own stock and hau SUN
o'ent ~ Nv yyorking capital on February Is.
,o1S or ~ "a aeouire the T. c. dupont stock
l..iiSor5 lgig, ~ impairing the capital stock
\. va WIN ;n Judge Thompson also de-
he pa'a l;5os that The offer Of T. c. du-
I'd Pont g made through Pierre S. dupont,
o, 80 sell his stock 70 the company should
/ have been submitted TO the board OF
y directors OF the company to pass
) upon.
!, AS 10 the endorsements OF the acti
of the officers and directors OF ths
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