The San Francisco call., 1897-11-02
TO SMASH TIE
POWDER TRUST
The Aid Of the Federal
Courts Is to Be
Invoked.
A ssooiated Powder Company's
April Compact Will Be
Attacked.
Vigorite Powder Mills Still Idle.
Suspicious Negotiations With
the Combine.

An effort is to be made to smash the
powder trust, which has been i'll practical
operation in this city since April last.
A well.known attorney is now gathering
evidence against the trust, with the view
of breaking it up, if possible, by due pro-
cess of law. He declares that its con-
tlnued existence is in direct violation OF
both the Federal and State laws.
A compact was entered into last spring,
the parties to which were the California,
the Judson and the Giant powder COM
panies. involving a very material increase
in the schedule price for blasting powders.
Since that time there has been no ad-
vance. The powder men claim that up
10 the time of the agreement for uniform
rates the prices had been cut SO low in
the com petition for the trade that powder
had been selling b'low the cost OF manu-
facture. They com bined under the name
of the Associated Powder Company, elect
ing ex-Mayor Z. b. Pond as chairman OF
the executive committee
The Vigorite Powder Company, it is
said, refused to become n party to the
deal, but those on the inside claim that
Their cooperation was not wanted. At
any rate the mills of the Vigorite Com
pany have been idle for several months,
and the com mbine has been having its own
way. Some weeks ago it was announced
on the streets that the Vigorite Powder
Company was making alterations and ex-
tensions to its work across the bay, and
intended soon to resume operations and
give the combine lively run for Its
money. The continued delay, however,
in the movement TO resume has excited
the suspicion of consumers that the Asso-
ciated Powder Conn pany has been strength
ened by the accession of a new ally IN its
effort TO retain absolute control of the mar
ket. Their tears have been greatly height
ened by the report that negotiations were
said TO be in progress t)r some Time BACK
between the com bins and the Vigorlte
Powder Company, so that here should be
no friction on the subject of prices.
For these reasons fierce fight against
the powder combine is about to be waged.
Considerable tiuci uations in the quota
tons for powder stocks have been @
marked feature of the San Francisco
Stock and Bond Excnauge. Last month
more than one-thlrd of the capital stock
OF the Vgorite Powder COMPANY changed
hands, the price varying from So 10 So 87H
a share. The lowest quota fio1 for Can
fornia dining October was 800, and the
highest $110 per share. The same figures
for Giant Consolidated were $36 and $50
respectively.
Those who nave declared war against
the powder combine claim hat IL has not
only fixed prices 10 suit ITSELF but has also
definitely parceed out the territory in
which each of the mem bers shall have the
exclusive right to sell powoer. AS the
agreement is said TO cover not only Cali
fornia, but Nevada. Oregon, Washington
and Arizona, it would be In that case in
direct vlo auon of the stringent antitrust
law enacted by Congress. The Stare OF
California has no antitrust law, but a
prominent lawyer, who was interviewed
on the subject, said tnat the policy of the
State laws being against trusts the agree
ment could be attacked IN the courts as
unlawful because IN restraint of trade.