The Washington times., 1911-02-03
SAY POWDER TRUST
GRIPS WORLD TRADE
Government Lawyers Will
Offer Astounding Proof At
Wilmington Trial.

Within the next three weeks, at Will
| mington, Del. will come on for argu-
ment the most remarkable case under
the Sherman act that has ever been
tried by the Government lawyers.
1t involves the national and inter-
national powder trust, which the Gov
ernment seeks to dissolve. The case
was started about three years ago, and
the Governments proofs are now all
before the court. Arguments are to be
sbmitted to Justices Gray, Dallas and
Burlington, in the circuit court.
The Department of Justice considers
the case of large Importance because
OF the unique character of agreement
which the powder makers of this coun-
try and Europe signed. to divide the
entire world into competitive and nom
competitive zones, and to uphold prices
in all countries. 1t is believed to be
the most striking case of worldwide
trust ever developed
Because of its international character.
some points are raised which may prove
highly important when the international
shipping trust case comes on for trial
later. The Federal Government has no
Jurisdiction of foreign concerns that
may conspire TO extort from the Gov
ernmcnt or people of this country; just
what its powers are, in the case Of
Americans conspiring with foreigners,
is a question of decided interest and
Importance.
Able Counsel Employed.
In the forthcoming argument the Gov
eminent will be represented by James
Scarlet and William A. Glasgow, who
have handled it from the beginning.
The powdermakers will be represented
by former Senator John c. Spooner and
John G. Milburn.
The remarkable agreement between
the American powder trust and the
European manufacturers, which has
been produced and put in evidence by
the Government, will play a large part
in this case. The Americans were given
as exclusive territory the United States,
all North America, except Canada,
American colonies, Venezuela and Col
ombia. The rest of South America was
made common territory. or syndicated
territory" and the rest of the world
was given to the Europeans.
The Americans agreed not to eStab-
lish factories in Europe, and the Euro
peanS not to build factories in the Unit
ed States; both sides bound themselves
not to erect in the 'syndicated terri
tory" Each group was to have chair
man, and these two were to fix all
prices. Neither party was permitted to
fsell in the territory assigned to the
other; in the "syndicsted territory"
prices and trade were to be distributed
under arrangement among the managers
of the trust. The provision that pecu-
liarly Interested the Government law
yers, in view of the fact that the Gov
ernment is the greatest buyer of ex-
ploSiVes, was this:
Affecting the Powers.
whichever the American factories re-
ceiye an inquiry for any government
other than their own, either directly or
indirectly, they are to communicate
with the European ia ctories through
the chairman appointed, as hereinafter
set forth, and by that means to ascer-
tain the price at which the European
factories are quoting or have fixed, aud
they shall be bound not to quote or sell
at any lower figure than the price at
which the European factories are quot
ing or have fixed. Should the European
factories receive an inquiry from the
United States, or decide to quote for
delivery for that government, either di-
rectly or indirectly, they shall first in
the like manner ascertain the price
quoted or fixed by the American fac
tories and shall be bound not to quote
or sell below that figure"
The chairmen were to fix selling
price for each market, below which no
sales were to be made. The difference
between this basic price and the actual
selling price was TO be deemed the
syndicate profit, and to be divided equal
ly between the American and European
parties to the transaction.
Out of the profits a syndicate fund
was to be built up to 100000, from
which should be paid any fines not re-
coverable from. the parties; and two
thirds of this fund might be used for
the purpose of protecting tine common
interest against outside competition"