The Bemidji daily pioneer. [volume] (Bemidji, Minn.) 1904-1971, 1908-10-24
ME H0DS OF The
POWDER TRUST
Former Official Testifies in
Government Suit.
COMPETITION KILLED OFF

Si9 Concern Went After New Com
panies as Fast as Organized and
Either Forced Them Into the Pool
or Out of Busness-controIs Prac-
tically the Entire Trade in Its Line
in the United States.
New York, Oct. 2 Methods al.
legged to have been employed by the so
called powder trust to gain control Of
the powder trade in the United States
were described by r. s. Waddell, for
mer general sales agent in the United
States for the big powder company,
at the days session of the hearing in
the governments suit against the COM
pany for alleged violation of the Sher-
man antitrust law. He had declared
that the defendant company now con-
trolls between IS and SO per cent of
the trade in gunpowder and 80 per
cent of the trade in blasting powder.
He told of the formation of the South
ern Powder company, which was Or
! ganized in Cincinnati, with mills in
Georgia, in 1896, and absorbed by the
big company few months later. eve
went right after the Southern as soon
as they entered the MARKET" said Mr..
Waddell. ''The fight continued until
the general round up in July, 1885,"
"What do you mean by the general
round up?" he was asked.
II mean the complete elimination Of
competition by absorbing the CON-
petitors," replied the witness.
Mr.. Waddell said he had been in
formed by the officers of the company
that there was an agreement with for
eign manufacturers on sales of dyna-
| mite. This information was given
him, he said, after foreign mills had
been erected in Jamestown and was
known as the Jamestown agree
ment.'
International Agreement.
II was told that one of our officers
had been to Europe and that there
after we would have no further trou-
ble," said he. This, he said, was when
there was some disturbance in the
market over the cutting of prices on
s1nokeless powder. He said a new
agreement was drawn by members Of
the pool after practically all the COM
petitors had been absorbed. When a
paper identified by Waddell as copy
of the agreement was presented coun-
sci for the defense objected to it's
acceptance by the court.
Continuing his description of meth
DDS which he alleged were used to
absorb or crush competitors Waddell
told of fights which were made by his
company against the Indiana Powder
company and the Southern Powder
company. The Indiana company,
which was formed in 1897, had Ohio,
Kentucky, Michigan, West Virginia
and one or two other states for it's
market. He was directed by Eugene
Du Pont and F. w. Owen to go to
Terre Haute and open the fight
against the Indiana company. There
he met the chief officers of that COM
pany.
Il told them that they had reduced
the sales of our companies $4,000 to
10000 kegs of powder in the territory
they occupied" said he, land that we
could not stand for that, but would
fight to regain the trade. l proposed
that the Indiana company be reorgan-
lied with 100000 capital, of which
the Hazard Powder company should
take 81 per cent and the other stock
holders 40 per cent But they refused
to enter into any agreement with the
pool. They said that they thought
they had perfect right to manufac-
ture powder for their mines, that they
wanted to be friendly with us and
hoped there would not be any fight.
I told them that we would put up
mills near them and begin the fight
by undertaking them to their own
miners"
More Underhand Methods.
Mr.. Waddell then told of the organ.
ization Of the Great Northern Supply
company, to sell not only powder but
shovels, picks and supplies, and to the
employment of two men named RAM
sey and Racous to go among the min
ers to stir up discussions between the
miners association and the operators
association. These men made speeches
at the miners meetings, he said.
The fight lasted until January, 1902,
when the Indiana company went I'M
der and sold out to the pool.
The Southern Powder company was
organized in Birmingham, Ala, and
its business was restricted to Birming-'
ham and vicinity.
1--WE fixed it so they could not get