Clipped From Evening Sentinel

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STRATEGY USED IN BIG FIGHT PEVTOVK BOARD OF DIRECTORS seek to oi:tvit du roxrs HV AMENDING HV-LAWS A bit of strategy resorted to by the offlwrs of tbe Peyton Chemical Co. in their fight with the Uu Ponts ot the K. I. Du Pont-De Nemours Powder Co., was revealed in Judge Sea-well's court at the hearing of the application for a writ to compel the Peyton to let the representative of the Du Ponts (see the chemical com-pany'H books. Lately the minute book of the board of directors waa Mint to New York, addressed to W. J. Bartnett, one of the legal advisers of the Peytons, and W. C. Peyton, president of the company ald on the witness stand that' it showed the changes made in the by-laws by the hoard nt its last meeting on January 19, 190 5. One change consisted in providing that no stockholder having less than 100 shares of stock In his name is eligible to serve as a director. This prevents Frank Turner, U. S. Penni-man and Oscar, representatives of the Iu Ponts, to whom small numbers of shares have been given, from serving as directors, and Peyton frankly admitted that the change was made for this purpose. The annual meeting, when the election will be held, is to take place on February J;t.h, and It was Intended that information as to the amendment of the by-laws should not get out until then. "The change was to bo a pleasant surprise for them," remarked Peyton. He admitted that the Du Ponts had $300,000 Invested In stock of the Peyton Chemical Co., and that his company owed their company $70,000, and that his purpose was to keep them from securing any control of his company or having any representative on the board of directors, his reason being that they constitute the powder trust and that their object is to wreck his concern if possible. The money put up by Turner, Pcnniman and Sutro for tock at the delinquent sale In December came from the California Powder Works, one of the Du Pont concerns, J. P. Wallace, secretary of the Peyton Co., said. Peyton acknowledged that Bernard Peyton and A. M. Hunt were not bona fide stockholders, 100 shares each having been put in their names to qualify them to serve as directors. Another suit has been ibegun by the attorneys for the Du Ponts, the plaintiff being Frank Turner, who, as a stockholder, requests the court to order tho Peytons to let him Inspect the records of the company's business transactions, the Journal of the directors' meetings and the stock and transfer books. Judge Seawell net this case for next Monday. on-the-Rhlne, a he he to

Clipped from
  1. Evening Sentinel,
  2. 04 Feb 1905, Sat,
  3. Page 4

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