New-York tribune., 1918-03-21
Du Pont Company
Wins Legal Fight
In District Court
Original Bill of Complaint
Filed by Alfred |. Du
Pont Dismissed

WILMINGTON, Del, March 2O.-The /
management of f. l. du Polt de Ne
mours e. Co. and the old du Pont
Powder Conn any won a double -barrelled |
victory to-day in the dismissal by the !,
United States District Court Of the bill!
of compliant filed in the suit instituted
BY Alfred I. du Pont and other minority
stockholders, involving the stock for
merly held by T. Coleman dr Pont,
now valued at approximately $50, 100000.
j. W. Thompson, District Court judge,
who tried the case, filed the decree
dismissing the original bin Of COM
plant and awarding the defendants
practically all they had been contend
ing for. Besides dismissing the com
plaint wnich charged bad faith toward
the stockholders on the part Of the de-
PENDANTS, Judge Thompson overruled
al. the exceptions taken % the masters
report in the recent stockholders meet
ing, which sustained the present Of
ficers ana directors in the purchase OF
the T. Coleman du Pont stock by
Securities Company. The decree handed
down by Judge Thompson ends the long
drawn out Litigation against the present
management, unless Alfred /. du Pont
and his Plaintiffs take an appeal to
the United States Circuit Court OF
Appeals
Fight Started in 1915 =
The legal fight between the du Pont
factions, begun in 1916, which has
been terminated SO far as the lower
courts are concerned by the decision
Just handed down, has been considered
one of the most important and interest
ing in the history Of American cor
poration litigation. Alfred |. du Pont,
formerly manager of the black powder
department Of the du Pont Powder
Company, was the real plaintiff in the
suit, although Philip F. du Pont was
the original plaintiff of record.
1t was charged ia The complaint that
Pierre S. du Pont and his associates
used the credit of the company in iinan-
cling the transaction which gave them
> possession of all the common and pre-
ferred stock owned bv General I. Cole
man du Pont. 1t was further alleged
that the company had not fully re.
hnQuished its consideration of T. Cole
pany 20700 shares of its own common
stock on the understanding that these
shares were to be sold to officers ant
employees at nominal price, with {
view to encouraging them to become
stockholders and give them a fnancia
. interest in the company for which the.
were working.
Extraordinary Stock Rise
The suit began early in 1915. 1t de
vcloped during the course of the pro
t Coleman du Pont had offered to sell tt
the company 20,700 shares at Sl60 ;
share. This offer was turned down b.
t the finance committee. of which ALFRED
G |. du Pont and William du Pont, two o
+ the plaintiffs in the litigation. wer,
, members. The offer of I. Coleman d,
\ Pont was refused by the finance com
n mittee on the ground that the price o
4 SlG0 a share was too high the stool
y =. at that time being on an per cen
dividend basis. On learning this I
Coleman du Pont withdrew his offer t.
= the company and closed all negotia
g tions then pending.
= = Two months later, on learning that 7
. Coleman du Pont was willing to sell al
=. Of his holdings, Pierre S. du Pont an
. his associates entered into negotiation
~ dtiQ pun CIIdSSU (OlGlldu uQ IOnL
= entire holdings, amounting to 63,31
=" shares of common stock and 1853
shares of preferred stock. Pierre
du Pont made an offer of 5000 a shar
G. for the common and $85 for the pre-
ferred at a total cost of $4,000 Tie
Some time after this transaction wa
e closed the litigation for possession o
n 7. Coleman du Points former holding
commenced.
s Owing to the extraordinary prosper
n ity enjoyed by the company as resul
e OF its huge war contracts, the stock in
5, volvcd in the suit increased in valu
IS in spectacular fashion. The commo
n stock for which Pierre S. du Pont an
e his associates paid 5000 a share subse
h quently sold at the equivalent Of 81 ,OO
If Later on a reorganization was cffecte
n in order to increase the capitalizatio,
and as q result of the exchange of tn
d, old stock for new the stock bougt
c from r. Coleman du Pont is estimate
Is to have attained a value of we'll owe
5. $50 100000.