Evening journal., 1911-03-02
ASSATLINC
DUPONT CO.
W. A. Glasgow, Jr., Arguing
Governments Suit, Says it
Violated Sherman Act
OPERATIONS EXTENDED TO
EUROPE PLAINTIFFS SAY

Legal arguments in the Govern
ments suit brought four years ago to
dissolve the so-called Powder Trust
under the Sherman ani-trust act,
were begun I'm the United States Cir
cut Court. Philadelphia, yesterday be-
fore Judges Gray. Lanning and Buff
flngton.
e. /. DUPONT dc Nomours and Com
pany, and sixteen other powder man
ufacturing companies. who arc de-
PENDANTS to the suit. are charged with
illegally combining to form mo-
nopoly Of the powder trade In re-
straint Of interstate commerce.
In the matter Of interest aud inn
portance, the litigation Is looked upon
by Government officials as on par
with the Standard Oil and Tobacco
Trust cases. which we're the subject
Of suits begun by the Government.
The suit was started in the District
of Delaware I'm August, 1907, aud
since that time testimony has been
taken before a commissioner i'm yari-
Gus parts Of the country. When the
case was called yesterday William A.
Glasgow. Jr., James Scarlet William
L. Kenyon and v r. Roodstrum ap-
peared as counsel for the Govern
ment. while ex-senator John c.
Spooner. George S. Graham. James
NJ Townsend. William n. Button and
William S. Hillcs represented the de-
PENDANTS J. A. Iasto. vice-prcsident
Of tho alleged trust, was an Interested
spectator
Mr.. Glasgow made the opening arr
gument for the Government. coniining
himself solely 10 review of the doc
umentary evidence adduced for the
complainant. He began by giving a
history OF tho alleged combination.
starting in 1872, with the formation
of the Gunpowder Thare Association.
the purpose Of which was 10 regulate
and maintain prices Subsequent
meetings were held and new members
taken in. he said. until the combina-
ton controlled % per cent OF the
I powder manufactured in this country.
Mr.. Glasgow al this point explained
] that there are only about four irdc.
t-ilea.ea iiiAns s tl-,t ~ ClrfafI6,f
Drastic rules governing tho associa-
/ ton members we're adopted. Mr. Gas
! gov declared az various meetings held
by the alleged combine He explained
that q Board Of Trade was formed 40
| fix the prices and TO restrict sales OF
powder in various States. Penalties
were provided for infracious OF the
latter rule and IN some instances. he
contended. fine of 81 was imposed
for every 20 pounds of powder sold I'm
excess Of the regulated amount
Mr. Glasgow spoke OF a meeting
held in 1856. whereby an agreement
was entered into between f3 COM
panics, which controlled nearly all
the powder output in the United
States. Prices were advanced By this
agreement. It was declared. Terri
tories were allotted 10 each company
in which TO do business.
Continuing Mr.. Glasgow said
"A neutral belt was formed.
where all of the members could fight
for trade. but the fixed prices Of the
various grades Of powder were main
tanned. At one Of these meetings a
resolution was adopted that
"'All matters discussed before the
association are TO be held inviolably
secret and any member who divulges
such matters shall be considered un-
worthy Of a seat in the Gun Powder
Trade Association.
Judge Gray. who had been following
Mr.. Glasgow's recital with interest.
suddenly asked him how he had OBJ
tained the evidence
zone of the companies had file af
the minutes of these meetings. and IL
was produced under subpoena" re-
/ piled counsel
Mr.. Glasgow. continuing his arru-
mont, declared that the history Of
the association showed that the latter
not only regulated and controlled the
manufacture Of powder but that it
! also regulated the price, divided the
! United States in seven districts and
limited the amount Of powder which
/ each member might sell. Further.
that It made competitive fights with
manufacturers Of powder outside of
the association. to the point of ac-
| quiripg control and bringing these
outside parties under the terms of
the association and subject to its
| agreements.
Mr.. Glasgow concluded the opening
/ address today.