Evening journal., 1909-01-14
CHARGES DIVISION
OF POWDER TRADE
Former dupont Agent Admits
Agreement With Other
Concerns
DIDN'T KNOW OF
YELLOW DOG"

IhlbADbl4PHlA, Jan. 14-That the
so-called Powder Trust" worked under
an agreement by which the powder
business of the country was divided
was brought out yesterday at tina
hearing before Special United states
Commissioner Mahaffy. in the Federal
Building, in the hearing Of the Cow
ernment against the T.. /. DUPONT de
Nemours Powder Company.
Shaken by recent illness brought
on by business worry. William KolleI.
president of the Rockdale Powder
Company. OF Hoffmandale. Nd, made
his evidence stand out like the strong
scene in q play when in the course Of
yesterdays hearing he recited the de-
tails Of the conversation he held with
II. c. Nichols, formerly an employe
OF the Powder Company, in which
Nichols told him that the Trust had
decreed his business ruin.
After leaving the employ OF the .du.
Points. koller testified, Nichols called
upon him. He had never met him be-
fore, although he knew OF his work.
Nichols showed him a list Of the GUS
toners of the RocSdale Company and
told of his efforts to win them away.
He said his orders from the DUPONT
Office were to put the Rockdale Com.
pany out Of business. no matter how.
He said he had been authorized TO cut
prices, but anyway to get the trade
you are still in business?" Mr.. Sol.
Ter was asked.
"Yes. we are on top Of the earth"
Struggling"
Sweating blood"
Mr.. Koller told further Of a visit he
made as a member Of a committee ap.
I pointed by the independent manufac-
/ turers to confer with the DUPONT Com
pany, asking it 70 agree on a schedule
/ OF prices. ]. A. Haskell vice-presi-
dent. told them that the current price
4 for black blasting powder. 30 cents for
a 25-pound keg. was about right, but
that dynamite was altogether too high
Dynamite had dropped from - cents
a pound to a fraction over 10 cents
inside of q couple of years. and none
of the independents could do business
successfully on such a basis. He asked
Mr.. Haskell If it were not true that
the dupont Company was making a
profit Of 100 per cent upon its produc-
ton Of sporting and ordnance powders,
in which lines the independents were
not competitors. but was told that
sporting powders did not come within
the scope OF the discussion. No agree
ment was reached.
Price Agreement Admitted.
w. A. Sullivan, until recently sales
agent in this city for the big powder
concern. admitted that the dupont
Company worked under a price agree
ment with the Miami Powder Com
pany for period OF nine months. end
ing early in 1905. Each company con-
tracted to produce a certain percentage
Of the powder and explosives output OF
the company. but he was unable TO re-
call the proportions allotted TO each
Statesmen in his district were instruct
ed to gather information regarding
competing concerns and to report upon
It, as we'll as TO make sales The wit
ness organized the Explosive Supply
Company. which has since been alb.
sorbed by the dupont Company. He
would not admit any agreement to
! limit production.
When asked by Mr.. Scarlet II the
Climax Powder Company was not one
of the "yellow dog" companies, Mr.
Sullivan replied: I don't know any
The hearing adjourned to meet again
next Thursday in New York, when
counsel for the duPonts agreed TO pro-
duce contract in which certain for.
mer directors of the Latin and Rand
Powder Company promised not to en-.
gage in the manufacture Of explosives
in the United states.
The Government attacks the dupont
Company as a combination and con.
spiracy to restrain interstate commerce
and trade In the United states and
to monopoiize the same" IL asks the
court TO dissolve the trust" and &c
enioin II against entering into inter.
state trade.
Scarlet Satised Thus Far.
James Scarlet. special assistant &c
the Attorney General. is in charge ol
the prosecution. assisted by j. Har-
wood Graves, another special assist
ant,
MIR. Scarlet, speaking OF the case
after the hearing. stated that he did
not anticipate an early settlement
"rhe number OF companies 20 be in
vestigated. scattered all over the coun-
try from San Francisco to New York
necessarily delays the prosecution; but
we are more than satisfied with the
progress made. and we confidently ex
pect a conviction"