The Birmingham age-herald. [volume] (Birmingham, Ala.) 1902-1950, 1906-05-07
POWDER TRUST HAS
THE OCTOPUS FEVER
Former Official Tells About the
Birmingham Plant
WAS FORCED TO SELL OUT
Expense of Slauehtering Competition
Is Reganed by High Prices.
other Instances of How
Trust Works.

Chicago, May 6-(SpeciaLl-A special 10
the Tribune from Washington says:
In all the trust busting talk of late
years there has been a suspicious amount
of glttering generality as to the method
of capital. 1t is seldom one Isl able to
get hold of definite details as to the meth
DDS adopted to crush out competition.
Almost all the prosecutions thus far in
stituted by the government have been
based largely II not entirely, upon in
ferences from known commercial cond-
tons and not upon direct proof of con-
spiracy to restrict competition. Readers
of The Tribune already have been given
good deal of informa ton in regard to
the general methods of the powder trust,
which has been sandbagging the whole
country. including the United States gov
eminent. prosecution of that trust is
one of the things which may be confident
ly predicted.
Such proceedings necessarily will be linn
tied to things which are not barred by
the statutes of limitations These matters
the attorney general now is considering
with a view to prosecution.
Illinois Man Governments Ally.
1t SO happens, in looking into the af-
fairs of the powder trust, which has a
good deal more to do with everyday life
than most people would imagine. the gov
eminent has been able to call to its as
sstance R. S. waddell of Peoria. ILL.,,
an independent powder manufacturer,
who for twenty-five years or so was in
the employ of the Dupont Powder COM
pany, and who participated in the merg-
ing OF that concern with other companies
into the powder trust. He was an actual
party to the early proceedings of the old
dynamite and powder pool, which began
operations in the way of crushing out
competition as a preliminary to the ere
alton of the trust as it now exists.
AS to actual evidence which he has
turned over to the attorney general. this
important witness mouth is closed, but
have secured from him as the result of
a long and extremely interesting interview
a detailed statement of just how trusts
work, how they kill off competition, and
how, with remorseless success they drive
OF course the powder trust is only run
or the same lines other trusts. 1t prob
ably Is no better and no worse than many
other great combinations There was a.
time when 1t tried to buy out it's small
competitors but when the pool was form
ed it was found to be cheaper and more
effective to crush the life out of the little
fellows, to squeeze the blood from their
veins, then to buy up the carcass for a
song.
Shows no Pity to Independents.
This plan, bloody and cruel as 1t seems
to ordinary business men, followed
out by the powder people, although the
trust included men like the Hazards,
Duponts and others, who in the days of
their individual existence were known as
upright, high-mnded business men, but
who, as soon as they sank themselves into
a corporation. became parties to the most
vicious methods
In the early part of 1902 there was
in existence an Independent powder COM
pany at Birmingham. Ala 1t had been
started by a man by the name of Green
and his partner from Cincinnati. but the
capital mainly was subscribed In Bir-
mingham. 1t did a profitable little bust
ness and Its plant was so constructed 1t
could make powder at net cost at the
the mill of about 10 cents per keg. The
powder pool in that year found 1t ad-
visable to crush out the Birmingham
plant, which was extending its business
I'm a legitimate way SO as to threaten
the success of two powder factories I'm the
pool located al Nashville and Chatta-
nooga.
AT that time Mr.. Waddel was general
sales agent of the powder pool. He knew
exactly how that Birmingham factory was
driven out of business and I might as
well let him tell that part of the story.
ut was really an easy matter, he ex-
planned when you consider the re-
sources of the pool, which embraced all
the large manufacturers of powder and
dynamite in the country. 1t was nothing
more nor less than what people in the
west call roundup. The pool had mills
at Nashville and Chattanooga. The Nash
VILE concern was selected to beat the
life out of the Birmingham competitor.
How "Sandb aging is Done.
"The northern companies in the pool
found 1t convenient, under one excuse or
another, TO decline orders from the ter
rtory tributary to Birmingham We knew
the Birmingham mill could not make
powder for less than 10 cents a key.
Thereupon a salesman of the Nashville
concern acting under orders from the
central pool visited towns about Biz
mlngham. They fixed the price. which in
each case was 10 cents key. plus the
freight rate from Birmingham TO that
particular town.
This settled the Birmingham powder
mill in a comparatively short time. be-
cause 1t could not sell a key of powder
anywhere within its own territory In any
way or at any time except at loss of
cents a key.
But Of course the Nashville mill must
have suffered the same loss?'
"Of course, so far as the books went.
But the powder to fill these orders was
supplied to the Nashville mill by north
ern companies. Tho Duponts, Hazards,
and other mills in the pool contributed
pro rata. They selected the Nashville mill
merely as their agent and II cost that
concern only its share in the total loss
in the Birmingham district. Freight rates
in the south are generally high and with
in comparatively short distance in a cir
Gle around its mill. the Birmingham COM
pany could not compete with the mills
in the pool. and over all the territory to
the north and east of Nashville and
Chattanooga the price was kept up to
the usual average of sl.25.'
"Are you personally acquainted with
these facts, or is this hearsay?'
Ruin, Then Buy Plant for a Song.
II ought to know about it, because /
made shipments OF powder to supply these
orders / supervised the sales, and drew
upon the different companies 10 supply
their quota. and continued to do 80 until
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