The Washington herald., 1907-07-31
SUES POWDER TRUST
Government Goes After 26
Component Companies.
RECEIvERSHIP IS SUGGESTED
Plan Followed In Tobacco Trust
Case Again AdOpted-PetitioR Re
Iates Alleged steps by Means of
which Du Points Have Gained
Control of COuntry's Production.

Inc government y66Aetudy llttA III tl4c
United States Circuit Court for the dis
trict of Delaware, at Wilmington. petit
ton against E. I. Du Pont de Nemours &
Co., the z. l. Du Pont de Nem0urs Pow
der Company, Of New Jersey, and TWEEN
ty-four other corporations and seventeen
individuals connected with the tWenty-six
corporations, which are made defendants
in the petition
The bill In equity was filed by John +.
Niels. district attorney, ana J. V. Road
strum, the special agent OF the Depart
ment Of Justice. who. for ever eight
months. has been investigating the affairs
Of the trust.
The following are named as individual
defendants. being. it is said. members Of
the Du Pont family or men who have
married into st.: Alexis I. Du Pont. Alfred
l. Du POnt. Eugene Du Pont, Eugene Z.
Du Pont, Henry A. Du POnt. H. T. Du
Pont, Irene T. Du Pont. Francis l. Du
Pont. Pierre S. Du Pont. T. Cloan Du
Pont. Victor Du Pont, jr., J. A. Haskell,
A. J. Moxam. A II. Barksdale. II F.
Baldwin. E. G. Buckner. and Frank L.
Connable.
Receivers May BE Named.
The petition relates that all the defend
ants are engaged in interstate trade and
commerce In gunpowder and other high
explosives. and are violating the act OF
July ?. 1879. commonly known as the
Sherman antitrust act II seeks 20 pre-
vent and restrain the unlawful existing
agreements, contracts. combinations. and
lconspiracies in restrain Of such trade and
commerce, 10 restrain the attempts Of
the defendants 10 monopolize such trade,
and 10 dissolve the existing monopoiies.
The court is asked to determine
whether public interests will be better
subserved by the appointment Of receiv-
ers 10 take possession OF the property Of
the alleged trust with a view 10 bringing
about conditions that viii be in harmony
with the law. The prayer in this respect.
is Identical with that in the so-called To-
bacco Trust petition.
Il is stated in the petition that in 1872
all except three Of the concerns selling
high explosives in the United States or
ganized with the object Of regulating
prices at which such commodities should
be sold and of driving the other corpo-
rations out Of business by unfair com
petltive methods This association en-
joyed an uninterrupted operation, 1t is
said, until 1881 when "a new agreement
was entered into with the object Of pre-
venting new manufacturers from engag-
ing in the powder business. IN the
meantime. the three "wOuld-be" competi-
tors are declared 10 have been compelled
to join the monopoly.
Competition Frozen Out.
It is shown that there were succeeding
asSociations in 1856, in 1891. and in 1896
each with the same general object and
composed Of the same members and their
successors. The 1886 association continued
until 1892 and during the whole period
the members Of these associations. il is
asserted, by various unfair business
methods. forced substantially all COM
petit0rs out of the powder business until,
az the latter date. they controlled Sc per
cent thereof
The petition recites many OF the opera
tions Of the so-calied powder trust lead
ing up 20 the organization in May. 1893,
under the laws inthe State Of New Jer-
sey, of the Z. l. Du Pont de NemOurs
Powder Company. with a capital stock Of
so e0o.Gl9 as a holding company. for the
purpose Of acquiring the capital stocks Of
every corporation in the United States en-
gagged in manufacturing and dealing in
high explosives.
Seventy Firms Merged.
This New Jersey holding company. It is
alleged. acquired control Of the companies
operating in high explosives in the United
States. until all Of the business Of ship
ping and selling such commodities Of sub
stantially seventy companies, which had
from time 70 time, since 1s79, been sep
arate competing concerns, is now being
carried on by three gigantic. operating
companies. namely. the Eastern Dynamite
Company, the +. I. Du Pont de Nemours
Powder Company of Delaware, ana the
Latin a. Rand Powder Company
The defendants, Il is alleged, already
have a complete monopoly Of the produc-
ton and distribution of smokeless ord
nance powder, In addition to the monop-
oily of 50 per cent OF the production and
distribution Of high explosives other than
smokeless powder.