The Washburn leader. [volume] (Washburn, McLean County, N.D.) 1890-1986, 1907-08-02
AFTER POWDER TRUST
Government Begins Suit to Dis
solve Existing Monopoly.
RECEIVERS MAY BE NJ

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
nsent has fled in the United States
rircuit court for the district Of Della
ware, at Wilmington, a petition
against e. L. Dupont, De Nemours e.
Co., the E. /. Dupont De Nemours
Powder company (of New Jersey aud
tw enty-four other corporations AND
seventeen individuals connected with
he corporations which are made de-
PENDANTS in the petition.
The petition relates that all OF the
defendants L 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
restrain the unlawful existing agree
ments, contracts, combinations AND
con]spiracies 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
10 dissolve the existing monopoly
therein.
The court is asked to determine
whether public interests will be bet
Ter subservcd by the appointment OF
receivers to take possession of the
property Of the alleged trust with d
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 thai
Ia The so-cailed 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
ES.:itldLlllS VI bSCo u IN 'H'~
nodities should be sold and Of driving
he other corporations out Of business
by unfair competitive methods. This
association enjoyed an uninterrupted
u seration. it is said, until 1881, when
a new agreement was entered into
with the object of preventing new
manufacturers from engaging in the
-.--1. 1;-, r., thu ,9OorTfSaIfA
TIE three would be" competitors are
declared to have been compelled To
Join the monopoly. 1t is shown that
tiere were succeeding associations LII
lSSG, in 1891 and in 1886, each with
ase same general object and COM
posed of the same members and their
Successors. The 1886 association con-
Gnued until 1902 and during the whole
period OF time from 1872 until 1902
the members of the association, 1t is
asserted, by various unfair business
methods, forced substantially all com,
petitors out of the powder business
latil at the latter date they controlled
% 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 i'll
May, 1903, under the laws In the state
Of New Jersey of tho p. L.. Dupont Dc
Namours Powder company, with a
capital stock Of $50, 000, 900, as a hold
Ing company for the purpose Of &C.
curing The capital stocks of every
corporation in the United States in
manufacturing and dealing in high On
plosives. This New Jersey holding
company, it is alleged, did acquire
control Of the companies operating ih
high explosives in the United States
until all of the business of shipping
md selling such commodities of sub
stantially seventy companies, which
had from time to time since 1872 been
separate competing concerns, is nov
being carried on by three gigantic op-
Grating companies. namely. the East
ern Dynamite company, e. l.. Dupont
BE Nemours Powder company of Del
aware and the Latin G. Rand Powder
company.
ne u~cleIEdiCSs ~ 10 dliSSSN, III
rosdy have a complete monopoly OF
tTs. production and distribution of
sraolieless ordnance powder, in addi-
ton to the monopoly of 95 per cent Of
tie production and distribution Of
high explosives other than smokeless
powder.
The government asks. in its prayer
for relief, that these operating con-
panies be ~enjotned and restrained
bsm operating and engaging in inter
state In the United States
or that receivers be appointed to take
oyer their business.
The government asks also that con-
Ael 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 twenty-six
Independent firms which at the time
# the filing of the petition were en-
gagged in the manufacture, shipment
and sale of blasting powder and dyna-
mite in the United States in lawful
competition with the defendants.