The Minneapolis journal. [volume] (Minneapolis, Minn.) 1888-1939, 1906-07-17
May Bust Powder Trust.

Special to The Journal.
Chicago, July 17.-A Washington
special to the Chicago Tribune says:
The war department. has taken steps
to carry out the direction OF congress TO
bring the powder trust to its knees.
Orders have been given for the prepare
tion of plans for a plant having cap
acity of 100000 pounds per annum: The
plant may be located at Rock Island,
III.
The erection Of this plant is due to
the revelations made by Roberts. Wad-
dell, president Of the Buckeye Powder
company of Peoria, respecting the way
in which the powder trust held the gov.
eminent by the throat and compelled II
to paw the prices which it fixed.
Once the, establishment is in opera
tion-and this is expected In about
year from today-the war department.
will ascertain the actual cost Of powder
and will compel the trust to reduce It's
price accordingly, or suffer the alterna-
tive Of having q recommendation go
to congress for the manufacture by the
government Of all the powder the army
needs.
Navy's Plant a Weapon.
The navy department. has plant at
Indian Head, Md, which has capacity
Of between 5000 and 1000 pounds a
day, and it has compelled the trust to
reduce the price to about 70 cents g
as exorbitant But with the army. and
navy working in conjunction there ls no
good reason, in the opinion OF officials,
WHY the cost Of powder should not be
reduced at least 20 per cent.
The appropriation made by congress
for an army powder plant amounts to
$165,OOO. In the opinion OF Wadde!l.
as expressed In letters to congress, TINS
sum was too meager and he beneVed
plant should be erected which would en-
able the government to manufacture In
dependently of the trust. Congress
was disposed, however, to look upon the
matter as an experiment, In spite OF the
satisfactory results obtained from the
naval powder factory.
Trusts Lobbyists Active.
Moreover. there was unwillingness to
drive private manufacturers out OF Dus'
mess. These arguments were all hne,
but unquestionably one of the CONTROL
ing reasons why such small plant was
authorized was the activity or represent
tatives Of the trust.
The Importance to the trust of pre-.
venting the erection Of a larger plant
by the government will be appreciated
when it is known Secretary Taft esti
mates the proper reserve OF powder To-
the army and navy to be S5O0OO0s
pounds. There are, only 1890 900 pounds
on hand. This is to say, the govern
ment will have to expend about $25,
100000 in order to establish the reserve
and, if Mr.. Waddell's figures OF the cos
be correct the trust will reap prof
from the furnishing of this material be
tween $11, 100000 and $12,oo0,000.
The trust is known as the Dupon
powder trust, which is alleged to owl
International and the California Pow
der companies. For several years tn,
departments paid to the trust SIS and 81
cents pound. The International com
pany was organized and entered mt
| the competition, causing a reduction II
price. until the Dupont trust obtained
control Of the International produet
Waddell estimated that the net pronI
/ of the trust due to the exorb1tant prlc'
charged to governments amount to 81,
/ SOC, 600 per annum.