The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1908-10-22
POWDER TRUST
MONOPOLY OF
FIRST WATER
Dupont and His Pals Sued by
Federal Government Under
the Sherman Law.
FORMER SALES AGENTS
DAMAGING TESTIMONY
COMPANIES EX-
TERMINATED BY THE TRUST,
AIDED BY RAILROADS.

cent monopoly of the powder trade i'm
the Urited States has been obtained by
methods such as cutting prices to about
50 in certain states. while price of
So 10 was maintained elsewhere. was the
substance of testimony against the so-'
called powder trust at a further hearing
of the case here today. The litigation
is a federal suit for alleged violation
of the Sherman antitrust law.
Il. 5. Waddell of Peoria. ILL.,. was the
only witness today. For many years
Mr. Waddell was a general sales agent
Of the combined powder companies, ard
he subsequently, became an independent
manufacturer. 1t was he who filed the
petition on which the suit was brought.
At the opening James Scarlet. Who
appears for the government, said that
he would present the history of the
combine between the years 1888 and
1892, and produce evidence to show that
a conspiracy among the powder compa-
MES existed at the time the petition for
the suit was filed.
Mr.. Waddell's Testimony.
Mr. Wadden testified that in 1882 the
association was composed of the z. l.
Dupont Powder company, Hazard Pow
der company, Latin q Rand Powder
company. Oriental Powder company,
American Powder mills, Miami Powder
company and the Austin Power COM
pany. In that year the organization
was changed to a pool, when two other
companies, the King Powder company
and the Ohio Powder company, were
taken in. They did not join until bit
ter rate-cutting warfare had occurred.
The witness said that the pool con-
trolled between 80 and SO per cent CT
trade in sporting powder and 80 per
cent of the trade in blasting powder.
How Trust Is Operated.
When the witness was asked how the
association operated, he said:
The officers of the several compa-
MES would meet from time TO time and /
establish or change the prices at which
the product was sold. The prices agreed
on We're communicated to the other
companies. and they in turn notified
their agents.
q 1t was just previous TO 1856 that the
fight against the King Powder COM
pany and the Ohio Powder company
was initiated. In describing the oppo-
sition to the latter company. in which
he took part himself. the witness said: |
Fight in Ohio Company.
Their territory included Ohio, West |
Virginia, Indiana. Illinois, Kentucky, |
Tennessee and parts of western New
York. | was delegated TO conduct the !
fight. President r. L. Wheeler told me /
to cut the price below them. no matter |
how low they went. | was told further |
TO guarantee each customer that our |
price would be 10 cents lower than any |
price the King company could make !
Tire price went as low as 81 - and g. TO- !
while the price elsewhere in New Eng |
land. at the seaboard and in the west, 1
where there was no contest, was main /
tanned at full 500"
Both companies sold out to the com |
bine. the witness said. after a futile /
struggle.
LAS soon as these companies Joined /
the pool" said the witness. ~ got my
orders to increase prices i'm the con- /
tested district at first to s. and later |
to the full rate"
Screws Put on Agents.
Mr.. Waddell then said that the com
bine had put the screws on the agents
in different parts of the country, who |
later began to break prices and reduce 1
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. Among the members
of this body were: Henry A Dupont.
]. A Haskell, r. V Wheeler G. NJ.
Peters, Arthur Williams. r T. Cole
man and A. o. Fay.
Between 1889 and 1896 there were
several Independent companies formed,
including the Chattanooga Powder /
company. Almost as soon as the Chat
tanooga companys product was put on
the market. the witness said, the pool I
started after them. and there was no
quarter given
1T was a short and, vicious fight"
added Mr. Waddell
We sold powder at cost and below.
The fight ended with the general round
up of the independents about July,
1896"
Who helped you in the fight?" asked /
Mr.. Scarlet.
The liberal rates on freight which |
the railroads were giving at this time
helped us We got rebates off the
Tunnel line and other roads I I
do not now recall
The hearing adjourned until tomor-
row.