The daily banner. (Cambridge, Md.) 1897-2008, 1917-04-30

came member of the Alfred fac
ton. Coleman was the other MEM
Der. but he was in Rochester. Mimi,
for an operation, and stayed there
until some time in March following.
Alfred objected to buying the
stock at $50 d share. contendlng
shat. as the dividend was s per cent
the WELD would be per cent, and
nrnye unattractive to the officials TO
whom il was proposed to sell the
stock. and that therefore, il would
be unwise for the company to under
take to become the medium for the
transfer OF the stock from Coleman
10 the officials. Pierre voted against
Alfred'S motion TO that effect, and.
by implication. in favor OF making
the purchase. William voted with
Al;rrd. making the vote , to /.
From thai point begins the tight.
Alfred claims that his motion was
not to refuse Colenan's offer def
n!teiv. He holds that the words lat
this time" were at the end of his mo-
ton OF rejection, and that the mo-
ton should have been so recorded.
Pierre claims the words lat this
time were not in Alfred's motion 10
reject Alfred asserts that there was
an understanding that Fierre, as act
ing president in ColemanS absence,
should continue negotiations with
the latter Pierre maintains that
there was no such understanding
After some weeks Alfred inquired
of Pierre about the progress OF ne
sotiations with Coleman, and was
told that they were all off in conse-
quenCe of .Alfred's motion TO reject
Coleman's offer at $50. Alfred pro-
tested that his motion was not to re-
iect indefinitely. There following
chickering's such as might have been
expected.
Then, in the early months of 1915.
it became known that Pierre and his
associates had purchased all of
Coleman's stock-63,341 shares OF
common at $500 share. and IA ,599
shares of preferred at $S5 share.
Of the purchase price, approximately
$4,000. 900. Pierre paid Coleman
sS.50G,00O cash and gave notes for
the balance. with security. The S.
500. 900 he borrowed from j. P. Nor
gan & Co., a depository of the COM
pany. who farmed the loan out to Is
other banking concerns. each of
which likewise was a depository of
the company.
There was the devil to pay when
Alfred learned about the purchase.
In the few months which had elapsed
since the meeting of the finance COM
mittee. when Coleman's offer at $3.50
was considered, the dupont Company
had secured immense contracts from
the Allies and was making millions,
ot tho SfnaE hOllphf
from Coleman would increase ire
mendously in value.
He insisted that Pierre had been
instructed by the finance committee
to continue negotiations with Cole
man upon behalf of the company, and
that his failure to do so was breach
of his duty to the company; that
Pierre. in his position as acting pres
ident. had opportunities to foresee
! the great profits that were to be
made. and had undertaken to pur-
chase the Coleman stock for himself
and associates, instead Of negotiat-
| ing for it upon behalf of the COM
pany, because Of his inside know
| ledge; that he had suppressed infor-
nation about new offers which Cole
man had made and which should
| have been reported to the company
| that he had used the credit of the
company with Morgan & Co. and the
other banking concerns to obtain the
| loan with which to pay Coleman 49,
100000 on the purchase; and that
| Morgan & Co had made the loan be-
| cause they knew of the great profits
ahead for the dupont Company and
believed that Pierre, as acting presi-
dent, would be able to have these
! profits distributed as dividends, and
so would be in a position to pay off
the loan II he Dividends The
stock purchased.
| Then followed the stit, in which
| Alfred alleged, in brief, that Pierre
| had violated his fiduciary obligation
to the DUPONT Company, and had ia
| ken advantage of his official know
ledge of the company's affairs and
| his influence over its finances and
credit to buy the Coleman stock per-
sonally, instead of keeping the com
| pany informed about the status OF
| negotiations with Coleman and Civ
ing the company the first chance to
| buy, and in which Pierre cOntended
| that he had purchased the Coleman
| stock only after the finance commit,
1 tee of the company, upon Alfred's
motion, had declined to negotiate
! with Coleman, and that thus he was
entirely within his personal rights.
AS everyone knows, Alfred won
sweepingly in the United States Dis
trict Court. The case will be decid-
ed finally, it is expected, by the
United States Court of Appeals.
J. w. 0.