The Madison daily leader. [volume] (Madison, S.D.) 1890-current, 1907-07-31
AFTER POWDER TRUST
Government Begins Suit to Dis
solve Existing Monopoly.
RECEIVERS MAY BE NAMED

Court Asked to Determine Whether
Public Interests Would Not Be Bet
ter Subserved by Such Action-His.
tory Of the Combination.
Washington, July 31-The govern
ment has filed in the United States
circui. court for the district of Della
ware, at Wilmington, petition
against &. !. Dupont, De Nemours &
Co, the e. I. Dupont De Nemours
Powder company (of New Jersey and
twenty-four other corporations and
seventeen individuals connected with
the corporations which are made de-
PENDANTS 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 2, 1890, COM
monty known as the Sherman anti
trust act. 1t seeks to prevent and
restrain the unlawful existing agree
ments, contracts, combinations and
conspiracies in restraint of such trade
and commerce, to prevent and restrain
the attempts on the part OF the de-
PENDANTS to monopolize such trade and
to dissolve the existing monopoly
therein.
The court Is asked to determine
whether public interests will be bet
ter subserved by the appointment OF
receivers to take possession Of the
property of the alleged trust with a
view to bringing about conditions in
trade and commerce that will be In
harmony with the law. The prayer
in this respect is identical with that
In the so-called tobacco trust petition.
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
regulating prices at which such COM
modities should be sold and Of driving
the other corporations out OF business
by unfair competitive methods. This
association enjoyed an uninterrupted
operation, 1t 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" competitors are
declared to have been compelled TO
join the monopoly. 1t Is shown that
there were succeeding associations In
1856, in 1891 and in 1896, each with
the same general object ana COM
posed of the same members and their
successors The 1896 association con-
tinued until 1902 and during the whole
peIiod of time from 1872 until l9oz
the members of the association, 1t Is
asserted, 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 of the business.
History Of the Combination.
The petition recites many OF the
operations OF the so-called poWder
trust leading up to the organization III
Nav. 1903, under the laws in the state
of New Jersey of the e. l. Dupont De
Nemours Powder company, with
capital stock Of s50,000,0O0. as hold
ing company for the purpose OF ac-
curing the capital stocks OF every
corporation in the United States IN
manufacturing and dealing in high ex-
plosives. This New Jersey holding
company, it Is alleged, did acquire
control OF the companies operating In
high explosives in the United States
until all of the business OF shipping
and selling such commodities OF sub
stantially seventy companies, which
had from time to time since 1877 been
separate competing concerns, Is now
being carried on by three gigantic op-
Grating companies, namely, the East
ern Dynamite company, =. |. dupont
De Nemours Powder company OF Del
aware and the Latin & Rand Powder
company.
The defendants, it is alleged, al
ready have complete monopoly OF
the production and distribution OF
smokeless ordnance powder, In addi
ticn to the monopoly of 95 per cent OF
the production and distribution o.
high explosives other than smokeiess
powder.
The government asks, in Its prayer
for relief, that these operating com
panies be enjoined and restrained
from operating and engaging In inter
state commerce in the United states
or that receivers be appointed to take
over their business.
The government asks also that con
troll OF certain capital stocks In othel
companies by the various holding com
panies shall he adjudged unlawful ant
void and that the defendants shall bs
restrained from carrying on allege'
unfair competition against twenty-si'
independent firms which at the tim
of the filing OF the petition were en-
gagged In the manufacture, shipmen
and sale of blasting powder and dyna
mite In the United States In iawfu
competition with the defendants.
Deny Connection With Crime.
New Yorls. July s1.-In statemen