The San Francisco call., 1907-02-27
ACCUSES POWDER TRUST
OF FRAUD IN GAINING
ITS MONOPOLY IN WEST
James A. Folger Sues Giant
Combine to Quash a
$6,75O,OoO Deal
FREEZEOUT ALLEGED
Action Shows That Du Pont
Concern Has Absorbed
All Coast Rivals
FREEZEOUT ALLEGED

Oakland by James A. FoIger. the
wealthy San Francisco merchant.
against the California Powder works,
Ia became known that the powder trust
has absorbed all of the independent
companies in California. The purchase
of the California Powder Works was
effected by the Du POnt Company, 9TH
erNise known as the trust, some time
ago, and it was shown yesterday that
the trust has secured control of the
Peyton Chemical Company the last of
the independent concerns on this coast.
The PeytOn Company stubbOrnly resist
ed absorption, but has at last been
swallowed by the great monopoly.
The Peyton Company and the CALI
fornia Powder Works have been large
manufacturers of smokeless powder, and
have on this account enjoyed big
share Of Government business. The
Peyton Company has been the owner
of a secret process of making smoke
less powder. and therefore was consid-
cred a big prize by the trust. At the
head of the big combine which is now
powerful on the Pacific Coast as
we'll as the Atlantic, is United States
Senator Henry A..Du Pont of Delaware
In addition to the two companies
above named, the trust secured con-
troll recently of the California Vigorit
Guigne was president and H. H. East
man secretary.
FOLGER CHARGES FRAUD
AS stockholder in the California
Powder Works, Folger charges that the
sale Of the companys property to the
Z. L Du Pont de Nemours Powder Com
pany, the name used by the trust, was
involved in fraud. He claims that $15.-
100000 worth of property was sold for
$6,700,000. without bids being called
for and also charges that the sale was
made for the purpose of throttling
competition in the powder business
Prior TO the deal by which the Du
Pont de Nemours Company absorbed
the California Powder Works the lat
ter company was the principal rival
of the former in the powder trade in
the West The complaint sets forth
that number. of months ago the Du
Pont de Nernours Company began a
campaign of buying up the stock of its
business antagonist until on November
so, 1906, it had become the owner of
27,315 shares out of a total issue of
80. 600, as was shown by the books of
the California Powder Works.
On that day.. the complaint states,
the directors of the California Pow
DER Works sold all of its property to
the Du Pont de Nemours Company for
s6.750,0o0 and the latter company
agreed to assume all Of the debts of the
former corporation, besides paying that
amount. On February Is of this year
the stockholders of the California Pow
der Works ratlfied the sale. The d.
rectors then began proceedings, accord
ing to the complaint of ]. A Folger, to
dissolve the corporation.
ASKS FOR ACCOUNTING
Folger owns 50 shares OF stock of
the California Powder Works. The
par value of the shares is 500, and the
entire capital .zation of the company
is therefore 100000
The directors Of the California Pow
der. Works are r. S. Penniman, Frank
Turner, II. NJ Barksdale, W. J. Web
ster, John Birmingham Jr., r. c. Du
Pont and A J. Moxham. They are
named as defendants in Folger's suit,
as are also NJ. A. de Laveaga and L. z.
Lyons, shareholders in the California
Powder Works. T. c. Du Pont is presi-
dent and A ]. Moxham vice president
of the Du Pont de Nemonrs Company.
which corporation is part of the So
called powder trust II. NJ Barksdale
is a director in both the Du Pont and
California companies.
Folger asks the court to compel the
Du Pont Company TO surrender to the
California Powder Works all of the
property transferred to it as a, conse-
ouence of the sale and to render an
accounting Tor the time that it has
held the same. The court also is re-
ouested to restrain the directors of the
California Powder Works from pro-
proceeding further in their plan to
dissolve the corporation. Folger fur
Their requests that a receiver be ap-
pointed for the California Powder
Works The attorneys for the plain
tiff are Stratton. Kaufman and Far
quar-.
The principal works of the Califor-
MIA Powder Works are on the bay
shore north of Berkeley.