Evening journal., 1917-04-25

imposed by this plan shall apply to
bonuses heretofore granted.
Q. While the Company has in mind
the granting OF annual awards, it re-
serves the right to modify this plan
| from time to time or to discontinue
new allotments OF granting of bonuses
either temporarily or permanently.
provided that no modification of this
Plan shall operate to annul a bonus
already granted.
And these defendants deny that the
said honus plan OF the said company
was scheme having for its purposes
the distribution to these defendants
and others of the assets of the said
company to which they were not en-
titled or OF increasing their control OF
the corporation as alleged in the said
paragraph OF said bill. but on the con-
trary thereof that the said bonus pian
was adopted and has been admins
tered solely and only for the purpose
of reWarding In a special manner
those of its employees who contributed
In an unusual degree to the success
of the company by their inventions,
ability industry and loyalty.
/ These defendants admit that the
said g. J. DUPONT de Nemours and
Company has expended large sums
from the moneys Of the said company
I'm the acquisition of shares of its
stock for the purpose Of carrying out
the said bonus plan; that certificates
for said shares of stock were made
/ out in the names of such Of the said
employees as had by proper corporate
action been determined to be entitled
thereto, and that the said certificates
when so made out were delivered TO
the bonus trustee in the manner and
/ for the purposes as set forth In the
said plan, and are now and will con-
tinue TO be held by the said bonus
trustee for the purposes therein men
/ toned until such time as the same
should be delivered to the said em-
ployes IN accordance with the said
plan, and these defendants aver that
the said bonus plan as administered
by the said company has been of in
estimable value I'm securing the faith
/ full and efficient services of the en-
I ployes Of the said company in the con-
/ duct Of its business and In the profit
able administration OF its affairs: that
from time to time as the said bonus
Z
effect the employees of the said com
pany have been informed thereof and
of the fact that by the exercise of
ability, industry and loyalty to the said
company they would be entitled to
participate as beneticiaries thereun-
| der, and several thousand of the en-
! ployes of the said company have re-
ceived the benefits of such bonus plan;
that in addition thereto In the annual
reports made to the stockholders Of
the said companies prior to and at
their annual meetings. statements
have been made showing the general
nature and effect of the said bonus
plans upon the business of the said
company, and at such meetings no
dissent or disapproval has been made
| by any stockholder 10 the said plans
or any of them or the way in which
the same were administered by the
officers OF the said companies, and
that at each of the stockholders meet
ings resolutions have been passed ap.
proving, ratifying and confirming the
! acts OF the directors and officers OF
l the companies during the year covered
by the said reports.
Eighth.-These defendants deny the
existence of any conspiracy or scheme
as charged in the said bill and admit
that said r. ! DUPONT de Nemours and
Company has from time to time ac-
quired at the best price for which it
was possible to purchase the same,
large numbers of the shares of its
stock and of the said h. /. dupont de
Nemours Powder Company. the said
/ E. !. DUPONT de Nemours and COMPANY
( having acquired. since its organization
and up until the time of the filing Of
this bill l6.640 shares of its debenture
stock at the average price of SlO5. .65
per share. and 29O06 shares of its
common stock at the average Lrice
OF S3O5.S5 per share, and also 2,371
shares of the common stock of the
lsaid e. /. dupont de Nemours Powde~
Company at the average price of
$lO4.71 per share, all and solely for
the purpose of distributing same
among its employees in accordance
with the said bonus plan then in force.
Under the bonus plan hereinbefOre
referred to a bonus known as Class
IA bonuses have been awarded for
conspicuous service and the amounts
thereof have been entirely irrespective
of the cOmpany's earnings, and the ag.
gregate amount of such Glass "A"
bonuses has been a very small per.
centage of all the bonuses that have
been granted, a very great percentage
thereof being Glass "B' bonuses. al
though it is true that I'm certain years
very large sums of money have been
expended in the acquisition of stock
for the purpose of distributing such
stock as Glass "B" bonuses, as that
has been the result from the fact that
the amount of such bonuses is and
for many years has been measured by
Z per cent. of the surplus earnings oi
the company left after the payment oil
dividends on the debenture stock and
the common stock of the company
and the large amounts that have beer