Evening star., 1937-05-19
DUPONT CALL CASH
!. TOTAL $33,02O,0|)D
Balance Before 20 Crash
Aired by Financier Just Be.
fore Leaving Stand.
~ the Associated Press.

~ the Associated Press.
NEW YORK, May ia month be-
fore the Wall Street panic, Pierre S.
du Pont had s3S,O2o,o0 cash in the
call money market, it was brought out
today as the Government ended its ex-
animation of the Wilmington indus
trtalist in the 1929 income tax case
against him and his business associate,
John j. Raskob.
In concluding his questioning, Ma
son B. Leming, chief of Government
counsel, took up Du Points testimony
that he bought around $4,000, 900 Of
securities after the crash to bolster
the market.
Did you consider the stocks YOU
bought at that time good stocks?'
1.eming asked.
I thought they were," Du Pont re-
Piled, that's why bought them"
q. 1t was a sort Of a bargain day,
wasn't 1t, Mr. du Pont?
A. don't know whether YOU could
call it that or not.
q. Well, it turned out to be, didn't it?
"A. You couldn't tell at that time.
NOBODY knew whether it was or not.
Illegal Pact Alleged.
line Government contending a
series of cross-sales between Du Pont
and Raskob after the panic was fic-
ttlous and was accompanied bv an
Illegal repurchasing agreement, seeks
$ol7,3l6 deficiency tax from Du Pont
and sl,026,340 from Raskob.
>. Ihe sales were made on November
II and December 26. 1929, with re-
purchases on January and q of the
Following year With these cross
sales the two established losses of more
than s7o00,o00. in comparison with
pre-panic values, which they deducted
from their income taxes.
Just before Du Pont was excused
as witness, Leming went into his
call loan accounts. He handed Du Pont
patch of ledger and bank accounts
and asked him:
When did you take your money
out OF the call loan market?"
Du Pont examined his papers and
said:
There was a balance of $4,000
at the end of September, 1880"
Q. Reduced from what?
S4,00o,o0o in March, 1880.
"A. We'll, at the end of March, 1890,
It was S4,OOOOOO.
@. What September was thato
A. 1890.
Q. Oh WE'LL let's go back to Sep
tember, 1929.
A. At the end of September, 1929,
It was s33,O2O,OOO.
Q. What was it a the end of Oc-
eober, 1929?
A. 1t was s258OO, 900.
James S. Y. Ivins, chief counsel for
De Pont, objected vigorously to this
line OF testimony contending the rec
ords were already in evidence and that
there was no necessity of having
Ou Pont figure out the balances with
pad and pencil
III your honor please" he said IN
Richard L. Disney of the United states
Board Of Tax Appeals, who is hearing
the case, Il want to object to this little
act MIR. Lem1ng is putting on here.
He's seeking to dramatic, with his pad
ana pencil stunts, things which have
been In the record all along and which
we have been willing to stipulate from
the beginning. A lot of time could be
saved here"
Your honor, don't think should
stand silent in the face of Mr.. WINS
remarks. I think the questions an
sWered by Mr.. du Pont with respect to
the stocks he purchased and the money
he possessed justified my asking
them"
Says Queries Justified.
Disney came to the aid of the Gov
ernment counsel and remarked:
L think so. too, Mr.. Leming. I
think your questions have been justi-
fed"
Before Du Pont left the witness
stand-after almost two full days of
testimony. in which he defended the
legality of his cross sales with Raskob.
stating he made them to establish de-
duct1ble losses in his tax return-Dis-
ney said:
There's one question I'd like to ask
the witness.
I haven't gathered yet, Mr.. du
Pont, as to whether there were any
other transactions-I mean transac-
tlons of Observation-Disclosures you
and Mr.. Raskob between November 13,
the date OF the first sale, and the
END OF January, 1890, when the last
fepurchase OF stocks was made?"
The transactions in the record in
TINS case, Du Pont replied, ARE the
only ones"