Evening star. [volume] (Washington, D.C.) 1854-1972, 1907-07-30
SUIT AGAINST THE
POWDER TRUST
Filed in Wilmington, DEL, at
Noon Today.
AGAINST TWO COMPANIES
And "a Other Corporations and II In
dividuals Connected.
WITH THE 25 CORPORATIONS
Different Steps Taken in Violation of
the Sherman Law in Restraint
of Trade.
WITH THE 25 CORPORATIONS

The United States government
today began suit against the So
called powder trust in the United
States circuit court at Wilmington,
Del. The government asks that
the Du Pont Company of Delaware
be restrained from exercising con-
troll over subsidiary companies.
The papers in the case were filed
by Assistant Attorney General
l'urdy at noon. Subpoenas were
issued returnable the first Monday
in September.
The government filed at noon today in
the United States circuit court for the dis
trict of Delaware, at Wilmington, Del, a
petition against 4. I. du Pont de Nemours
& Co, the f. /. du Pont de Nemours Pow
der Company of New Jersey and twenty
four other corporations and seventeen in
divduals connected with the twenty-six
corporations which are made defendants in
the petition.
The petition relates that all of the de-
PENDANTS are engaged in Interstate trade
and commerce in gunpowder and other high
explosives and violating the act Of July
q, lS.p, commonly known as the sherman
antitrust act. II seeks to prevent and re-
strain the unlawful existing agreemnts,
contracts. combinations and conspiracies in
restraint of such trade and commerce, to
prevent and restrain the attempts on the
part of the defendants to monopolize such
trade and commerce. and to dissolve the
existing monopolies therein.
Association in 1879.
1t states that in the year 1872 all, with
the exception of three of those which were
then engaged in the business of shipping
and selling gunpowder and other high ex-
plosives In the United States, organized
themselves into an association with the
object of regulating the PRICES at which
gunpowder and other high explosives should
be sold to the trade, Of driving out OF the
business by unfair competitive methods
the three corporations which were at that
time engaged in such business and were
not members of such association, and Of
discouraging from entering into such BUSH
ness any who might wish so to do. Inc
petition alleges that the association organ
lied in 1872 was in uninterrupted operation
until June of 1881, and that In the mean
time the members of such association, as
the result of such organization, controlled
the prices at which their prcaucts were sold.
and by unfair competitive methods forced
the three independent corporations referred
10 to Join the association. 400, -,
1t relates also that IN June OF 1881 me
members of the original association ana the
would-be competitors, who, In the mean
time had been forced to join with them,
abandoned the old agreement and entered
into new one, the object OF which was 10
regulate the prices at which gunpo"der
and other high explosives should De sofa
and TO prevent any person or corporation
which might wish to engage in such busl-
a ness from so doing; that the second assoc
citation was better organized than the hrst,
in that il was organized under an agree
ment which was designed to remedy the
defects which experience showed the 1872
association to possess: that the second asSo-
citation extended over a period of five years
three other successive associations We're
formed one in 1856. one in 1891, and the
other in 1890, each with the same general
object and composed Of the same mem
beers and their SUCCESSORS; that each Of
these associations was an Improvement on
the previous one In accomplishing the OBJ
jects for which II was formed and in con-
trolling the businesses Of its constituent
members: that the 1895 association con-
tinued until 1902 and that during the whole
period OF time from 1872 until 1902 the
members Of these associations BY various
unfair business methods forced substan-
TALLY all competitors out OF the business.
until at tho later date they controlled o.
per cent thereof.
To Acquire Control
The petition then goes on to state that in
1892 the four principal manufacturers and
dealers in explosives In the United State.
were +. !. du Pont de Nemours & Co the
Latin & Rand Powder Company, the Haz-
ard Powder Company and the Eastern Dy-
Mantle Company; that the result of the
numerous specified Illegal operations OF the
various associations and the various mem
bers thereof since the year 1872 these four
companies In 1902 owned or controlled every
corporation of any considerable Importance
which was then engaged in the business OF
manufacturing and dealing in explosives:
that at that time the Hazard Powder Com
pany was entirely owned by e. /. du Pont
de Nemours q Co. and the Eastern Dyna-
mite company was controlled by T.. I. du
Pont de Nemours & Co, the Hazard Pow
der Company and the Latin & Rand Pow
der Company together. so that for E l. du
PCnt de Nemour3 & Co. to acquire control
Of them all II was only necessary for tina d,
corporation to acquire control Of the IA Ain
& Rand Powder Company: and that there
upon the control OF the Latin & Rand Pow
der Company acquired by e. l. du
Point de Nemours & Co. In the following
manner. II caused the Delaware Sec,lri-
ties Company to be organized under the
laws of Delaware and caused that compan
to issue Its bonds for 81 600 600 and to ex-
change those bonds for the entire issue q,
capital stock OF the Latin & Rand Powder
Company. which was 81 600. Geo. that It Their
caused the Delaware Securities Company &c
issue its capital stock IN the amount OF
100000 and thereupon TO issue a ma jority
Of such 100000 of capital stock to E. I
du Point de Nemours & CO. so that + I
du Pont de Nemours & Co was then IN
control of the Hazard Powder Company
the Ianln RAND Howder Company, the
Eastern Dynamite Company and the CAPT
tai stocks of all companies which were a,
that time owned by those four corpora tons
r. ]. du Pont de Nemours & Co thereby ac.
uuired direct control OF the manufacture
shipment and sale of So per cent of the ex
ploeives so manufactured, shipped and solo
In the United States.
The bill alleges that then E. l. du POM
de Nemours & Co. caused to be organized
under the laws OF Delaware the Z. L. d.
Point de Nemours Powder Company with
nominal capital of $4,000. and then caused
that company TO transfer such 10000 o