Evening star. [volume] (Washington, D.C.) 1854-1972, 1908-10-22
CRUSHED OUT BY CUT PRICES
POWDER TRUSTS METHOD OF
KILLING COMPETITION.
Sales Agents Testimony Shows
Railroad Rebates Helped Com
bine to Destroy Rivals.

NEW YORK. October 22.-That a 90
per cent monopoly of the powder trade in
the United States had been obtained by
methods such as cutting prices to about
a dollar in certain states, while a price OF
1918 was maintained elsewhere. was the
substance Of testimony against the So
called powder trust at further hearing
of the case here yesterday. The litiga-
ton is a federal suit for alleged violation
of the Sherman antitrust law. r. S.
Waddell Of Peoria. ILL.,. was the only wit
ness. For many years Mr.. Waddell was
a general sales agent of the combined
powder companies, and he subsequently
became an independent manufacturer. 1t
was he who filed the petition on which
the suit was brought.
James Scarlet, who appears for the
government. said that he would present
the history. of the combine between the
years 1882 and 1892. and produce evidence
to show that conspiracy among the
powder companies existed at the time the
petition for the suit was filed. ana ne
said he would also show the means De-
vised for the continuance OF the conspir-
acy and for an evasion OF the Sherman
antitrust law.
Mr.. Waddell testified that in 1882 the
association was composed OF the =. l..
der Company. Latin Rand POWDER
Company, Oriental Powder Company.
American Powder Mills. Miami Powder
Company, and the Austin Powder COM
pany. In that year the organisation W.
changed to a pool when two other com,
panies. the King Powder Company ano
the Ohio Powder Company, were embraced
in the organization. They did not JOIN
until bitter rate-cutting warfare nao DC,
Cured The witness said that the pool
controlled between 95 and 9S per cent OF
the trade in rife and sporting powder ana
oO ner cent of the trade in blasting pow
der. 49,.
When the witness was asked how the
association operated. ne salo; r;as
would meet from time to time and estaD-
fish or change the p.ices at whlch the
product was sold. The prices agreed on
were communicated to the several COM
panfes and they in turn notified their
agents
Mr.. Waddell then said that the com
bine had put the screws on the agents
in different parts Of the country. VINO
later began to break prices and reduce
commissions, forcing them to sign con.
tracts in accordance with the wishes of
the pool In 1889 a governing body was
formed. which became known as the
board of trade"
Henry A. du Pont. j. A. Haskell. r. v.
Wheeler, G. NJ Peters, Arthur Williams.
r. I. Coleman and a. o. Fay. Between
1889 and 1896 there were several lnde-
pendent companies formed. including the
Chattanooga Powder Company. Almost
as soon as the Chattanooga Company's
product was put on the market. the wit
ness said, the pool started after them
and there was no quarter given.
ut was a short and vicious fight" Mr..
Waddell added. I'VE sold powder at cost
and below. The fight ended at the gen.
eral round up of the independents about
July 1896.
Mr.. Scarlet.
1.-The liberal rebates on freight rates
which the railroads were giving at this
time helped us. We got rebates of the
Hoosac Tunnel line and other roads / do
not now recall