New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1907-07-31
POWDER TRUST SUED.
Government Alleges Monopoly and
Restraint Of Trade.

Washington, July 30.-The government filed
to-day in the United States Circuit Court for
ne District of Delaware at Wilmington. Del a
,,etition against f. ! Du Pont de Nemours &.
Co the I. I. Du Pont de Nemours Powder Com
many lof New Jersey and twenty-four other
corporations, and seventeen individuals con-
rected with the twenty-six corporations which
are made defendants in the petition
The petition relates that all OF the defendants
are engaged in interstate trade and commerce
in gunpowder and other high explosives and
are violating the act of July - 1890, commonly
known as the Sherman antitrust act It seeks
10 prevent and restrain the alleged unlawful
existing agreements. contracts. combinations
and c7nspiracies in restraint of such trade and
commerce. 10 prevent and restrain the alleged
attempts the part of the defendants to mo-
roroze such trade and commerce and 10 dis
solve the existing monopoies there
The court is asked to determine whether pub
lie interests VIII be better subserved by the ap-
-oiDrrent OF receivers 10 IA Ike possession OF the
nroperty Of the alleged trust. with a view to
bringing about conditions in trade and COM
rnerce thar VIII be in harmony with the law
The prayer in this respect is identical with that
in the so-caIed Tobacco Trust petition.
HISTORY OF ORGANIZATION
L IS stated in the petition that in 1872 all ex-
.ept three Of the concerns selling high explo-
sives in the United States organized with the
object Of regulating prices which such COM
7Iodities should he sold and OF driving the other
corporations out of business by unfair competi-
tive methods This association enjoyed an UNI
interrupted operation. il is said. until 1881,
when new agreement was entered into. with
the object Of preventing manufacturers
from engaging in the powder business. In the
mean time the three would-be competitors are
declared to have been compelled join the
monopoly
Il Is shown that there were succeeding asso-
Citations in 1886, in 1891 and in 1895. each With
the same general object ard composed Of the
same members and their successors. The 1896
association continued until 1897 and during the
klole period Of time from 1872 until 1902 the
hers Of these associations. il is asserted. by
vsrln>-S unfair business methods forced sub
stantia}ly all competitors out of the powder
business until al the latter date they controlled
- Per cent thereof
The petition reCites many OF the operations Of
the so-called Powder Trust leading up to the
organization in May 1903. under the laws OF
the state Of New Jersey. Of the z. l. Du Pont
o. Nemours Powder Company. with a capital
stock OF S5oooo6o0, as a holding company for
the purpose Of acquiring the capital stocks Of
sverE corporation in the United States engaged
in manufacturing and dealing in high explo-
sives. The New Jersey holding company, il is
alleged. did acquire control Of the companies
operating in high explosives in the United
tstes until all Of the business OF shipping and
cling such commodities Of substantially sev-
,nry companies which had from time 70 time
1uce 1872 heen separate competing concerns, IS
how being carried ny three gigantic oper-
ting companies. namely. The Eastern Dyna-
mite Company and f. / Du Pont de Nemours
powder Company Of Delaware and the Latin
Rand Powder Company.
The defendants. il is alleged. already have q
ompTete powder monopoly Of the production
nj distribution Of suokel~<s ordnance powder
r addition u the monopoly Of - per cent OF .
he production and distribution Of high explo-
ives other than sruokeless powder.
THE RELIEF ASKED FOR
The government asks. in is prayer for relief. Z
hat these operating companies he enjoined and
esrrained from operating and engaging in inter
state commerce in the United states and that
-eceivers be appointed TO take over their bust |
7ass
The government asks also that control Of
errain capital stocks i'm other companies by
h. various holding companies shall he ad-
judged unlawful and void and that the defend
ants shall he restrained from carrying on al
eyed unfair competition against twenty-six iu- (
ependent firms. which ~ tho time Of the filing
Z The petition were engaged in the manufatt-
s-e. shipment and sale Of blasting powder and
.yna mite in the United States in lawful com /
EDITION with the defendants.
Wilmington, Del, July 3o-The papers In the /
SUIT of the government against the so-calIed /
Powder Trust were fled in the United States /
Court here by Nj Purdy Assistant Attorney /
general, shortly after noon to-day After the I
-eadinE OF the petition the court issued the .
iubpnuas asked for. They are returnab bic on /
n first Monday in October Counsel for tho /.
Du Po't companies decline 10 make any state /
esnt regarding the proceedings.
N regard 10 the connection of Senat tor DI I
PoUt 18th the so-called trust. the bill filed says:
That the defendant. Henry 4. Du Pont was
-he president and member Of the board Of di-
-ec'ors # +. ! Du Pont de Nemours K Co. 3
f3m the lime OF its organization until January,
!H'i during which time he attended from time +
10 riuc INC meetings Of the board Of directors I
IF said company. held IN the city Of Whining
ton, and participated in the direction and man
.Eemeut Of its business and was responsible
therefor. that 81 the time Of filing this petit
ION Inc said Henry 4. Du POnt one OF the .
principal stockholders IN said company, and .
during all Of the times herein mentioned has .
leen and now is exercising dominant influence
over the management and business Of said .
-ompauy"
Mr., Du Pont was elected United states Sen /
ator In June. 1906.