Los Angeles herald., 1908-10-27
TRUST
AGENT BETRAYS
INNER SECRETS
TELLS HOW DU POINT GOBBLED
"SMALL FRW
SALESMAN TRIED TO COMPETE
WITH BIG COMBINE
Witness Declares He Had Difficulty
Buying MachInery--Soon Gave
Up in Despalr-Frozen
Out
IBy Associated Press.

ny EW YORK, Oct. 26.-In the hearing
~ today in the government suit
~ against the so-called powder
trust, Robert S. Waddell, formerly gen
eral sales agent for the Associated
Powder company testified that he had
a part in awarding many contracts
and fixing special prices to certain OF
their companies.
He told of once having talked with
e. l. Dupont of the Latin & Rand
company, one of the big competitors,
Mr. Dupont saying he would take up
the subject of the purchase of the
Latin & Rand company
Ten days later he said, he received
a telegram from Mr. Dupont announc-
ing that the Latin & Rand company
had been purchased" When he next
met Dupont he asked what the pur-
chase price had been and Dupont re-
piled:
Just a Few Bonds
"Oh, nothing much; few bonds,
that's ALL"
Waddell said that when he notified
the big powder company that he was
about to sever his relations with the
company, /. c. Dupont asked him what
he was going to do. He replied he
was going to build mill and "go into
business for himself" Mr.. Dupont said
he would like to "go in" with him.
There was a period of negotiations
over terms, Waddell said, and 1t was
finally agreed he would have 81 per
cent of the profits and the Duponts
the remaining 40 per cent. He said
that up to February 2, when he left
the big company, he had every reason
TO believe the Duponts were to be his
partners, but the negotiations were
suddenly broken off.
Alone, he organized the Buckeye
company and started to erect mill at
Peoria, Ill.
Then Came Trouble A
He experienced great difficulty in
getting machinery for his mills, find
ing that many of the manufacturers OF
the best machinery were under con-
tract to furnish machinery only to COM
pafies in the big association.
"In September, 1905" said the wit
ness, "I sold my mill to Altman Lint
and #. w. Oler. From the time
started business until ! sold out con-
tinuous warfare was waged against me
by the Associated Powder companies
Waddell said that whereas the price
of blasting powder in Illinois had been
$1S5 per keg, Immediately after the
building of. his mills was commenced
all the Associated Powder companies
reduced blasting powder to $1.10 fiat
in the district that would be reached
by his mills.
Spies Sent to Mills
"Spies and detectives were sent in
side my mills to create diSsenslon
among the employees" said Waddell.
"I was enabled to overhear con-
versation which took place between
Harry Page of the Chicago, Burlington
& Quincy railroad and representative
from Dupont At that conversation
Page was offered $25 a month and So
for every letter he would write in
which he was to give the details of
every shipment made from the Buck
eye mills, the name of the consignee
and the date and number in each
case"
In reply to a question by Judge
Scarlet If he had lost any contracts
from the action of the Associated
Powder companies. the witness said
that he lost a contract with the Deer
ing. Coal company of Chicago.
II had supplied this company with
ten or twelve thousand barrels" he
said, when one day learned that a
car of powder had been refused. I was
told that this was because the miners
would not use Buckeye powder. They
had been spoken to by agents of the
Dupont and Latin 81 Rand COM
panies, and apparently had been in
duced to protest against the use of
my powder"
The hearing was adjourned until
Wednesday next.