Evening journal., 1908-10-15
DUPONT CASE
HEARING is ON
Testimony About the Alleged
Trust Heard in New York by
Commissioner Mahaffy
TO REACH
FEDERAL BUSINESS

BY United Press Leased Special Wire.
NEW YORK, oct. 15.-Federal activity
took a step yesterday in its announced IN.
tention to prove the E. I. DUPONT deNe-
mours Powder Company. of New Jersey
is merely the operation under a charter
Of a group of powder manufacturers
whose business is a trust of restraint Of
trade.
The most interesting portion Of the in
vestigation is promised when the inquiry
reaches the contracts for powder supplied
to the army and navy. Existence and op
Grafton of a combination Of powder manu-
facturers from is72 to 1902 known as the
Gunpowder Trade Association. were in
part admitted. in part established and in
part denied at the hearing before William
G. Mahany, special United States Com
missioner. to-day.
Alexis I. DUPONT. secretary OF the du
Pont corporation. delivered TO the Commits
sioner books and records of the dupont
and other companies, including a com.
pendium of rules" and fundamental
agreement" which are the basis of the
Governments contention that a combna
tion Of powder makers existed prior to the
passage of the Sherman Antitrust law
and up to the time of the chartering OF
the DUPONT company in New Jersey.
Judge James A. Scarlett. a special as
sistant to the Attorney General, conducted
the examinations.
Edward colvin Testifies.
Edward Colvin. formerly president of
the Hazard Powder Company ana
director Of other companies which IL
was admitted were absorbed by tho
Gunpowder Trade Association. but now
retired and George Wtighman, of No.
12O Hancock street. Brooklyn, were the
only witnesses. They were examined
as to the methods of the gunpowder
makers association in the treatment or
rivals. Independent companies by
cutting prices got trade which had
been held by members of the associa,
ton. they said and these reduced
prices were met by the companies ia
the association. It was also admitted
that some of these rivals were alb
sorbed by the companies in the associa-
ton taking portions Of their stock
Others. it was indicated. had ceased TO
become rivals when the association
agreed TO take the whole output Of
such independents.
All of this testimony affected chiefly.
the wears 1885. 1SfD 1891 and 1902, ana
Judge Scarlet explained later that no
was merely establishing the early ex-
istence of the combination of powder
makers and its methods. The existence
Of this association and its agreements
and rules are admitted in the reply Of
the DUPONT company to the suit ia
equity brought by tho United States
several months ago for the dissolution,
of the DUPONT company as a trust in
restraint of trade.
Frequent reference was made to Roii-
ert S. Waddell. now president of the
Buckeye Powder Company, of Peoria.
ILL.,. and for many years Ohio agent
of the Hazard company. Mr.. Waddell
was largely instrumental in bringing
about the present action against th'.
DUPONT company by representations t.
President Roosevelt. especially as to
contracts with the army and navy.
There are thirtv-six defendants to
the present suit and at the hearing yes
terdav We're Messrs. Townsend and
Button. of Townsend Avery and But
ton. counsel for the DUPONT company,
William S. Hills. of Wilmington, ana
]. A. Haskell. a vice-president Of the
DUPONT de Nemours company.