Evening journal., 1911-02-04
ARGUE The
POWDER SUIT
Government is Ready For
Final Attack on World
Wide Concern
PROOFS ARE BEFORE
U. 5. CIRCUIT COURT

On March IN the United states
Circuit Court viii come ON for argu-
ment the most remarkable case under
the Sherman act that has ever been
tried by the Governments lawyers. It
involves the national and interna-
tional so-called powder trust, which
the Government seeks to dissolve. The
case was started about three years
ago, and the Governments proofs are
an before the court Arguments are
20 be submitted to Justices Gray,
Dallas and Burlington in the Circuit
Court.
The Department Of Justice at
Washington considers the case OF
large Importance because OF the
unique character Of agreement which
the powder makers OF this country
and Europe signed. TO divide the en-
tire world into competitive and non
competitive zones. and TO uphold
prices In all countries The Govern
ment viii be represented by James
Scarlet and William A. Glasgow. who
have handled II from the beginning.
The powder makers viii be represent
ed by former Senator John c. Spoou-
er and John G NIilburn.
Worldwide Agreement.
Tho remarkable agreement between
the American powder companies and
the European manufacturers. which
has been produced and put in ovi-
dence BY thee Government, will play
large part in this case The Ameri-
cans were given as exclusive territory
tho United States, all North America
except Canada. American coloniea.
Venezuela and Colombia. Tha re-
mainder OF South America was made
common territory" or "syndicated
territory and the remainder Of the
world Was given to the Europeans.
Tho Americans agreed not to es.
tablish factories In Europe and the
Europeans not TO build factories IN
the United States; both sides bound
themselves not to- erect in the "syndi.
Gated territory Each group was tc
have a chairman, and these two were
TO fix all prices. Neither party was
permitted to sell in the territory az.
signed to the other. in the "syndicat.
cd territory prices and trade were tc
be distributed under arrangement
among the managers OF the trust. The
provision that peculiarly interested
the Government lawyers, I'm view o
the fact that the Government Is the
greatest buyer Of explosives, wa.
this:
Must Not Under.Bld.
Whenever the American factories
received an inquiry for any Govern
IsqlI5 'uMo II5ql uBql Iaulo lusU
directly or indirectly, they are to com
municate with the European factorle
through the chairman appointed. al
hereinafter set forth, and by tina
means TO ascertain tho price at whic
the European factories are quoting o
have fixed, and they shall he boun
not to quote or sell al any lower fig
ure than the price al which tn
European factories are quoting o
have fixed. Should the Europeai
factories receive an inquiry from thu
United States or decide to quote fo
delivery for that Government. eithel
directly or indirectly, they shall frs
in the like manner ascertain tn,
price quoted or fixed by the American
factories and shall be bound not q
quote or sell below that figure"
The chairmon we're 10 fix q selling
price for each market. below whicl
no sales were to be made. The diff
ference between this basic price snS
the actual selling price was 10 b.
deemed the syndicate profit and to b,
divided equally between the American
and European parties to the trans
action.