The sun. [volume] (New York [N.Y.]) 1833-1916, 1907-07-31
TRUST BUSTING suit No. 2
POWDERC IBINATTON NOW TAR
GET o. .TTORNEY-GENER4L.


rs They Were I'm the Tobacco Trust case.
WASHINGTON. July 1.-The Government
filed to-day in the United States Circuit
Court for the District Of Delaware, at Will
mington, a petition against z. I. du Pont
de Nemours a Co, the r. !. du Pont de
Nemours Powder Company Of New Jersey
and t~wenty-four other corporations and
seventeen individuals connected with the
t~wenty-six corporations hat are made de-
PENDANTS in the petition. The suit is de-
scribed by the Department Of Justice as
follows:
The petition relates that all Of the de-
PENDANTS are engaged in interstate trade
and in g%unpowder and other
high explosives and are violating the act
OF July .. 1890. commonly known az the Sher-
man antitrust act. 1t seeks to prevent
and restrain the unlawful existing agree
! ments. contracts. combinations and con-
spiracies In restraint Of such trade and COM
merce. to prevent and restrain the attempts
on the part Of the defendants to monopolize
such trade and m and to dissolve
the existing m~onopolies therein.
After relating hoy in the opinion OF the
Department Of Juf ce the powder combi-
! nation grew after new associations were
formed in 1872, 1881, 1893, 1891, 1895 and 1902
until the group controlled s5 per cent. Of
the trade. the statement goes on:
T.. !. du Pont de Nemours 4 Co caused
the Delaware Securities Company to be
organized under the laws Of Delaware
and caused that company TO issue its
bonds for 81. O0O. 900 and to exchange these
bonds for the entire issue OF capital stock
of the Latin a Rand Powder Company,
which was 81 900. 900: that II then caused the
Delaware Securities Company to issue its
capital stock in the amount OF "a, 1000. 900 and
thereupon 10 issue a majority OF such "a
600, 600 OF capital stock TO +. ]. du Pont de
Nemours a Co. so that the Il. j. du Pont
de Nemours 4 Go. was then in control OF the
Hazard Powder Company. the Latin Il Rand
Powder Company. the Eastern Dynamite
Company and the capital stocks OF all com
panies which were nj that time owned by
these four corporations. +. /. dn Pont de
Nemours & Co. thereby acquiring direct
control Of the manufacture. shipment and
sale of s. per cent. OF The explosives 80 manu-
featured. shipped and sold in the United
States.
The statement then sets forth that the
stock and control OF all the powder makers
passed eventually into the control of the
f. l. du Pom de Nemours Powder Com
pany, a New Jersey corporation organized
in 1908 "for the purpose OF acquiring and
holding, as far as it was possible TO acquire,
the capital stocks OF every corporation in
the United States engaged in manufacturing
and dealing in high explosives"
The petition then sets out the manner in
which the New Jersey holding company
thereafter acquired a majority OF the capital
stocks OF other corporations engaged in
dealing in high explosives and the plan by
which it controlled the prices at which high
explosives were sold by the corporations In
which 1t had 20 stock ownership or control.
Then follows the allegation that after the
New Jersey holding company had acquired
control OF substantially all Of the companies
operating in the explosives business in the
United States. f. i. du Pont de Nemours
a Co, through +. ]. du Pont de Nemours
Powder company OF New Jersey. caused
the corporate existence OF the subsidiary
companies OF which IL owned or controlled a
majority OF the capital stock to be dissolved
and the assets Of such companies to be trans
ferred to one or the other of three gigantic
operating companies. the particular one Of the
three operating companies depending upon
the nature OF the explosives manufactured
and dealt In by such subsidiary company.
until all OF the business OF shipping and sell
ing high explosives Of substantially seventy
companies. which had from time to time
since 1872 been separate and independent
competing corporations, ia now being carried
on by these three gigantic operating com-
panies.
IL il maintained that the defendants in
combination are un.awfully restraining trade
and in Runpowder and other high
explosives: that they already have a COM
plete monopoly OF the production and dis
tribution OF smokeless ordnance powder
and have n monopoly Of 95 per cent. OF the
production and distribution OF gunpowder
and high explosives other than smokeless
ordnance powder.
In its prayer for relief the Government
asks. among other things. that the Eastern
Dynamite Company. the f.. I. du Pont de
NemoIUs Powder Company OF Delaware
and the Latin & Rand Powder Company.
the three gigantic operating companies,
be enioined and restrained from operating
and engaging In interstate commerce In the
United States. or II the court Ia OF the opinion
that the public interest will be better sub
served thereby that receivers he appointed
to take possession Of all of the property,
assets, business and affairs OF each and all
Of these three gigantic operating companies.
with full power to administer the same. and
TO take such course in regard thereto rs will
DTlnR aDOub tcflultlOHS III suCH tTdue anu cOm-
merce as shall be in harmony with law.
The prayer in respect 10 such receivership
is identical with that In the tobacco trust
petition.
The Government also prays that the holding
ownership and control Of certain capital
stock in other companies by the various
holding companies which are defendants.
and which we're organized and used by Z. /.
du Pont de Nemours a Co. as stockholding
companies. be adjudged unlawful and void.
The United States Circuit Court issued
subpenas returnable September ?. which
we're asked to direct the defendants to
appear herein and answer (but not under
oath, answer under oath being hereby ex-
pressly waivedD the allegations contained
in the foregoing petition and abide by and
perform such order and decree as the court
may make in the premises.
Although senator Du Pont has announced
that he has withdrawn from the concern
he is named as one OF the defendants.
CHICAGO WANTS CONVENTIONS.
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