Twice-a-week plain dealer. (Cresco, Howard County, Iowa) 1895-1913, 1907-08-06
UNCLE SAM Attacks
THE POWDER TRUST
SUITS FILED AT WILMINGTON,
DEL AGAINST CORPORATION
AND INDIVIDUALS.
MONOPOLY VIOLATES
THE SHERMAN ACT
Government Asks That Dupont Com.
pany Be Restrained from Control
ling Subsidiary Concerns - Re-
cevers Prayed For.

ling Subsidiary Concerns - Re-
ceivers Prayed For.
Wilmington, Del, July 31.-The
United States government Tuesday be-
gan suit against the so-called powder
trust in the United States circuit court
here. The government asks that the
Dupont company of Delaware be re-
strained from exercising control over
subsidiary companies. The papers in
the case were filed by Assistant Attor-
ney General Purdy at noon. Subpoenas
were issued returnable the first Mon
day in September.
The petition was filed against e. I.
DUPONT de Nemours & Company, the
E. l. DUPONT de Nemours Powder COM
pany (of New Jersey, and "a other
corporations and II individuals con-
nected with the 26 corporations which
are made defendants in the petition.
Antitrust Law Violated.
The petition relates that all OF the
defendants are engaged in interstate
trade and commerce in gun powder
and high explosives and are violating
the act of July 2, 1890, commonly
known as the Sherman antitrust act.
1t seeks to prevent and restrain the
unlawful existing agreements, con-
tracts, combinations and conspiracies
in restraint of such trade and COM
merce, to prevent and restrain the at
tempts on the part of the defendants
to monopolize such trade and COM
merce, and to dissolve the existing
monopolies therein.
The court is asked to determine
whether public interests will be better
subserved by the appointment of re-
ceivers to take possession of the prop
erty of the alleged trust with view
to bringing about conditions in trade
and commerce that will be in harmony
with the law. The prayer in this re-
spect is identical with that in the So
called tobacco trust petition.
First Organized in 1872.
1t is stated in the petition that in
1872 all except three of the concerns
selling high explosives in the United
States organized with the object of reg
ulating prices at which such commodi-
ties should be sold and of driving the
other corporations out of business by
unfair competitive methods. This as
ISOLATION enjoyed an uninterrupted
operation, it is said, until 1881, when
a new agreement was entered into
with the object of preventing new
manufacturers from engaging in the
powder business. In the meantime,
the three "would-be" competitions are
declared to have been compelled to
join the monopoly. 1t is shown that
there were succeeding associations in
1886, in 1891, and in 1896, each with
the same general object and composed
of the same members and their sue
cessors. The 1896 association con-
tinued until 1902, and during the whole
period of time from 1872 until 1902 the
members of these associations, it is as
serted, by various unfair business
methods, forced substantially all COM
petitors out of the powder business
until at the latter date they controlled
95 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 in the state
of New Jersey of the E. l. Dupont de
Nemours Powder company with capt.
tai stock of $50,000,0OO as holding
company for the purpose of acquiring
the capita1 efonkc of ovor,, o,r,r -.
i'll the United States engaged in manu-
featuring and dealing in high explo-
sives. This New Jersey holding COM
pany, it is alleged, did acquire control
OF the companies operating in high ex-
plosives in the United States until all
OF the business of shipping and selling
such commodities of substantially 70
companies, which had from time to
time since 1872 been separate COM
peting concerns, is now being carried
on by three gigantic operating com.
panies, namely: The Eastern Dyna-
mite company and e. l. Dupont de
Nemours Powder company, of Della
ware, and the Latin & Rand Powder
company.
1 Complete monopoly Alleged.
The defendants, it is alleged, already
have complete monopoly of the pro-
duction and distribution of smokeless
ordnance powder in addition to the
monopoly of IS per cent. of the pro-
duction and distribution of high explo.
sives other than smokeless powder.
The government asks, in it's prayer
for relief, that these operating com
panies be enjoined and restrained from
operating and engaging in interstate
commerce in the United States or that
receivers be appointed to take over
j their business.
The government asks also that con-
troll of certain capital stocks in other
companies by the various holding com
panies shall be adjudged unlawful and
void and that the defendants shall be
restrained from carrying on alleged
unfair competition against 26 indie.
pendent firms which at the time of the
filing of the petition were engaged in
the manufacture, shipment and sale of
blasting powder and dynamite in the
United States in lawful competition
with the defendants.
A Camera Fiend.