Every evening, Wilmington daily commercial., 1922-03-04

fits. the value of the Delaware COM
pany common stock based upon such
profits was less than $50
per share.
THAT in making the assessment of
the common stock of the Delaware
company IA of October /. 1915, the
did not consider tho sur
plus of accumulated profits or the
former corporate profits of the New
Jersey company, but ascertaincd at
Wilmington. Delaware. what sales had
been made privately between brokers
or others of comparatively few shares
of stock. and having been Informed
that the stock had sold privately at
$347.5O or higher Gin small lots), the |
government assessed the value Of the
stock on that evidence alone at s3i7.50.
Described Bonus Plan.
That from tho year 1904 the New
Jersey company had I'm effect 10y prop
er corporate action n bonus or profit
sharing plan, which proved for the
distribution among fits employees who
might contribute To the general good
OF the company. and whom II was de
sired to have Interested as stock
holders therein, part e tho earn
iugs of the company. This distrihu-
ton. however while aSCcrtainCd and
awarded to the cmploye i'm terms "
dollars based upon a percentage Of
surplus earnings q the company. was
paid to the employee In the capital
stock OF the company at the value at
which il was purchased 10y the com
panY. For example, IL the officers Of
the company awarded tO an cmployc
81 900 they paid this in sCarcs OF stock
of the company at the price at which
/ II was purchased, and If the shares
cost the company $3.50 per share the
omployo received four shares The
81 ok, however. was not Immediately
delivered 60 the cmployc. but II he
remained with the company for i've
years at the end OF that time the
stock was delivered 10 him fun paid
and worcestershire
The stock for bonus distributor
was purCha scd by tho company month
ly, and during the period prior 10 the
LIST OF October. 1915, large amount
of the stock OF the New Jersey COM
GERS OF the company for the bonus
distribution. These purchases were
made by the officers If the company
at high prices, and il WAS To the in
terest of the officers to bid the stock
20 IA high price. After October |,
these high prices Of New Jersey com
pany stock were reflected in the price
OF Delaware company stock. linz
mediately after the 1st Of October
1915. n large amount Of stock in the
total was purchased from day 10 day
In small share lots for this bonus dis
tribution at high prices. Between the
Ist Of October, 1918. and the LIST OF
January. 1916. the company purchased
for bonus purposes 4.bS6 shares of IN,
common stock Of the Delaware com
, pany, and between the LIST Of October
, 1915. and the LIST OF April, 1917. abou
year and six months. the compan!
, purchased for bonus purposes 29.00'
! shares Of its common stock at th'
; average price Of s305s3 per share an,
z 6.640 shares Of its debenture stool
- at the average price Of sl05.G5 pc
share.
s 1t cost the company nothing mon
o 10 pay a high price for It's own stool
O than 10 pay low price therefor.
g had SO many dollars being a certai
r percentage ~ its prohts-lo invest 4
- It's own stock for bonus distribution
3, and Il was a matter OF no Finances
d concern 70 the company. It's stock
e holders or officers what price the
It paid for the stock
J. This purchase by the officers {
a the company OF small lots offered, Wit
n unlimited authority as 70 the prize
furnished the backbone OF the deman
" for the stock, and without this pul
er chase by the company from month
y month any substantial amount OF Il
T. stock put upon the market would hay
'e had no purchaser as a whole. and
is II had been attempted TO sell Il
IN stock IN small lots a large block
ID say 10000 shares would undoubted
have broken the market down To pa
o. The officers OF the company WI
De managed the bonus plan were deep
n Interested IN maintaining this stock
ar a high price. This is shown by Il
ne fact that these officers. constitutil
~ practically majority Of the board
NJ directors, through the du Pont 5
n curities Co had borrowed in NJ
OF York from J. +. Morgan & Co. 500
u 900. for which large part OF the
e- common stock, II not all, IN the Del
ware company was put up as c.
X lateral, and 1t was OF the greatest II
g portancc TO the officers Of the co,
is pany who controlled the purchase
IL the stock Of the company for bon
" purposes to see that this stock W
ais kept up at an apparently high pri
thereby strengthening their Coilatel
d. in New York for the large loan afol
We said.
ne THE only evidence of actual sa
us showing the price and number
ks shares sold must. be secured II at
Of from the books Of brokers who W.
he privately dealing in this stock. Tn,
OF were no public sales. the stock "
int not listed on any exchange. and
on. question of sale was one OF priv,
hat negotiation between individuals
)ck NJ po,, Mod
ted
of "Affiant charges that no return
hat been made for him by the commissi
lng or in accordance with the terms
ion the act of October 3,1913. The not
re and demand dated December 81 rs
be aforesaid was made upon him cha
ock ing that he had received Oh the