The Washington times., 1907-07-21
RECEIVER LIKELY
FOR POWDER TRUST
Department of Justice Has
investigated Three
Concerns.
Officials Say DUPONT Sys-
tenn Was Extremely
High Finance.

In the bill which the Federal Govern
ment will file In the United States CIR
cult Court at Wilmington. Del, next
week, in an effort to dissolve the So
called Powder trust. the Attorney Gen
eral sets forth such an array OF illegal
practices under the Sherman antitrust
law as. II proved, viii warrant his be-
lief that receiver will be appointed TO
take charge of the affairs OF the L. /.
DUPONT de Nemours Powder Company,
the Laffiin & Rand Powder Company,
and the Eastern Dynamite Company.
The Department Of Justice has been in
vestigating the management OF these
concerns for over six months and
through the work OF J. II. Graves and V.
n. Roadstrum. special attorneys, IL Is
believed that the Government has the
strongest case yet prepared.
Conditions Since 1879.
The bill recites conditions existing
since 1872. when there were in existence
ten powder companies. From that time
until the present IT is charged that there
has been a carefully planned campaign
looking to the absolute monopoly of the
powder and dynamite business OF the
United States. 1t is declared that al
pendent companies, the trust controls
ninety-five per cent of the total output.
According TO the charges, the first
method prevailing toward combinations
was in the form OF iron-clad agreements.
but finally the cupidity of the prime
movers became such that they resorted
10 all sorts OF practices to force indie
pendent concerns out of business.
Practice appeared to make perfect. ac-
cording to the bill. for it is charged that
almost each year the trust improved in
its methods OF illegal absorption.
Sold Below Cost.
When the trust could not buy out
right 1t sold goods in the territory of
the independent at a price much below
cost. 1t employed detectives to ascer-
tain the customers, and then sent out
agents to gobble up the business.
A striking instance of how It oper-
ated is given in the case Of the Terre
Haute Powder Company, known as the
Northwestern. This was composed OF
coal operators who manufactured pow
der for their own use. It Is charged
that the trust eventually got this trade
by organizing the Great Northern Manu-
featuring and Supply Company and put
ting on a line of wagons from which
powder was sold to the company's own
miners at 70 cents less than they could
produce 1t. Although the miners were
obliged to purchase from the Operators
the difference in price raised such dis
sention that the coal men had TO sci
their plant TO avoid a strike.
II is charged that the DuPOnts even
- lnHHC inc AZ.
through a stock manipulation running
high into the millions. but showing upor
the analysis made by the Department
OF Justice experts that the new property
secured by them did not cost them g
cent
Dupont High Finance.
II is declared by high Government Of
hcials here that the manipulation o.
Alton railroad stock by Hartman would
look like 30 cents compared TO thu
Dupont system of high finance"
Twenty-four companies and a scor'
of individuals are named in the bill
as parties defendant. The Department
Of Justice will not make public the de
tails until the bill has been received
from Attorney General Bonaparte. whC
IS now on his vacation The proof hal
been revised by him and all that is nov
required Is 10 secure his signature.
The original intention Of the Depart
ment Of Justice was to begin the sui
in Cincinnati The papers were almos
ready TO file when the trust dissolvet
the corporation there TO prevent tn
Government from having Jurisdiction
The suit will now be begun IN the hom'
city of the trust. The former bill. whicl
has been entirely rewritten, did OF IN
clude the receivership feature.
1t is understood that the bill recite
even more sensational charges thar
those already noted.