THE DISSOLUTION OF THE POWDER TRUST1 It is thereupon, on this 13th day of June, A. D. 1912, ordered, adjudged and decreed as follows, to wit: 2. That the remaining twenty-seven defendants, namely: Hazard Powder Company, Laflin & Rand Powder Company, Eastern Dynamite Company, Fairmont Powder Company, Judson Dynamite & Powder Company, Delaware Securities Company, Delaware Investment Company, California Investment Company, E. I. duPont de Nemours & Company of Pennsylvania, duPont International Powder Company, E. I. duPont de Nemours Powder Company, E. I. duPont de Nemours & Company, Thomas Coleman duPont, Pierre S. duPont, Alexis I. duPont, Alfred I. duPont, Eugene duPont, Eugene E. duPont, Henry F. duPont, Irenee duPont, Francis I. duPont, Victor duPont, Jr., Jonathan A. Haskell, Arthur J. Moxham, Hamilton M. Barksdale, Edmund G. Buckner and Frank L. Connable, are maintaining a combination in restraint of interstate commerce in powder and other explosives in violation of section I, of an Act entitled "An Act to Protect Trade and Commerce against Unlawful Restraints and Monopolies," approved July 2, 1890, and have attempted to monopolize and have monopolized a part of such commerce in violation of section 2 of said Act. Wherefore, It is further ordered, adjudged and decreed that the twenty-seven (27) defendants above mentioned, and each of them be enjoined from continuing said combination and monopoly, and that said combination and monopoly be dissolved. 3. That the petitioner having availed itself of the permission granted in said interlocutory decree and having presented a certain plan for the dissolution of said combination and the dissolution of said monopoly, so far as the present situation of the parties and the properties involved will permit, to which plan the said twentyseven (27) defendants do not object, which said plan is as follows: First: Dissolve the defendant corporation E. I. duPont de Nemours & Company (1902, Delaware corporation) and distribute its property among its stockholders. Second: Dissolve the defendant corporation Hazard Powder Company and distribute its property among its stockholders. 1 Quoted by W. S. Stevens in his Industrial Combinations and Trusts from the opinion of Court and Final Decree in the case of The United States of America v. E. I. duPont de Nemours & Company and Others, in the District Court of the United States, for the District of Delaware in Equity No. 280. Third: Dissolve the defendant corporation Delaware Securities Company and distribute its property among its stockholders. Fourth: Dissolve the defendant corporation Delaware Investment Company and distribute its property among its stockholders. Fifth: Dissolve the defendant corporation Eastern Dynamite Company and distribute its property among its stockholders. Sixth Dissolve the defendant corporations California Investment Company and Judson Dynamite and Powder Company and distribute their property among their stockholders. Seventh: Organize two corporations in addition to E. I. duPont de Nemours Powder Company (1903, New Jersey Corporation) which shall be capitalized as hereinafter provided, or reorganize the Laflin and Rand Powder Company and the Eastern Dynamite Company, or either of them, to be used instead of one or both of said two corporations, and in case the said Eastern Dynamite Company is so selected, then it need not be dissolved as hereinbefore provided. In case the Laflin and Rand Powder Company is not used under this paragraph dissolve said company and distribute its property among its stockholders. To the first of said corporations transfer the following plants: For the Manufacture of Dynamite: Plant at Kenville, New Jersey, For the Manufacture of Black Blasting Powder: Plant at Rosendale, New York, Two (2) plants at Ringtown, Pennsylvania, Plant at Youngstown, Ohio, Plant at Pleasant Prairie, Wisconsin, Plant at Turck, Kansas, Plant at Santa Cruz, California. For the Manufacture of Black Sporting Powder: Plant at Hazardville, Connecticut. Plant at Schaghticoke, New York. To the second of said corporations transfer the following plants: For the Manufacture of Dynamite: Plant at Hopatcong, New Jersey, Plant at Senter, Michigan, Plant at Atlas, Missouri, Plant at Vigorit, California. For the Manufacture of Black Blasting Powder: Plant at Riker, Pennsylvania, Plant at Pittsburg, Kansas. And permit the said defendant E. I. duPont de Nemours Powder Company to retain the following plants: For the Manufacture of Dynamite: Plant at Ashburn, Missouri, Plant at Gibbstown, New Jersey, Plant at Lewisburg, Alabama. For the Manufacture of Black Blasting Powder: Plant at Connable, Alabama, Plant at Oliphant Furnace, Pennsylvania, Plant at Mooar, Iowa, Plant at Nemours, West Virginia, Plant at Patterson, Oklahoma, Plant at Wilpen, Minnesota. For the Manufacture of Black Sporting Powder: Plant at Brandywine Delaware Plant at Wayne New Jersey. For the Manufacture of Smokeless Sporting Powder: Plant at Haskell, New Jersey. For the Manufacture of Government Smokeless Powder: Plant at Haskell, New Jersey. Eighth Transfer to or furnish the first of said two corporations with a plant for the manufacture of smokeless sporting powder and the brands now or heretofore owned by the Laflin and Rand Powder Company. Such plant to be located at Kenville, New Jersey, or some other suitable Eastern point, and to be of a capacity sufficient to manufacture 950,000 pounds per annum of smokeless sporting powder of the brands to be assigned to the first of said corporations. Ninth Furnish said two corporations respectively with sufficient working capital and the necessary cash and facilities to enable them to efficiently carry on the business which will attend the properties so to be transferred to them. Tenth: Transfer said properties to said two corporations respectively upon a valuation thereof based on the last inventory of said properties, to include a fair valuation for brands and good will, and issue to said E. I. duPont de Nemours Powder Company in payment therefore securities of said two corporations respectively at par value as follows: Fifty per cent. (50%) of said purchase price in bonds not secured by mortgage which shall bear interest at the rate of six per cent. (6%) per annum, payable if earned by the company during said year, or to the extent thereof earned but not otherwise; nor cumulative; payable not less than ten years from date; the form of said bonds to be approved by the Attorney-General or the Court, which bonds shall be subject to call at one hundred and two (102); and the other fifty per cent. (50%) of said purchase price in the stock of said two corporations respectively, which for the time being shall be their entire stock issues. Upon the receipt of said stock and bonds by E.. I. du Pont de Nemours Powder Company, distribute the said stock and one-half of said bonds or the proceeds of the sale of said bonds among the stockholders of E. I. duPont de Nemours Powder Company. In the organization or reorganization of said two corporations to which said properties are to be transferred, provide two issues of stock in said two corporations respectively, one of which shall have voting power and the other of which shall have no voting power. So distribute said stocks among the stockholders of E. I. duPont de Nemours Powder Company that any amounts thereof which upon said distribution shall go to any one of the twenty-seven defendants herein before mentioned shall consist of one-half of said stock with voting power and one-half of said stock without voting power, and provide that upon the transfer through death or by will from any one of said twenty-seven defendants of any stock which has no voting power, to some person or persons other than one of said twenty-seven defendants herein, or upon the sale by any one of said twenty-seven defendants of any stock which has no voting power, to some person or persons other than one of said twenty-seven defendants herein, or their respective wives or children, said stock so sold or transferred may be exchanged for stock with voting power. Eleventh: Transfer to said two corporations, respectively, so far as practicable, a fair proportion of the business in explosives now conThus in original.-Ed. trolled by E. I. duPont de Nemours Powder Company under time contract. Twelfth During a period of at least five years furnish each of said two corporations respectively, under such arrangements as may be reasonable, such information from the records of the Trade Bureau maintained by E. I. duPont de Nemours Powder Company as may be desired. Thirteenth During a period of at least five years furnish to each of said two corporations such facilities, information and use of organization, as E. I. duPont de Nemours Powder Company may operate or possess in reference to purchase of materials, experimentation, development of the art and scientific research, as said two corporations may desire from time to time, in the interests of their business, and upon some reasonable terms as to the cost thereof to said two corporations. And said plan having been duly considered by the Court, it is ordered, adjudged and decreed that the said defenants are respectively directed to proceed forthwith to carry said plan into effect, and it is further Ordered, adjudged and decreed, that if said defendants shall not have carried said plan into operation and effected the same on or before the fifteenth day of December, 1912, then and in that event an injunction shall issue out of this Court restraining the said defendants in paragraph two of this decree mentioned and each of them, and their agents and servants from thereafter in any manner whatsoever placing the products of any of the factories owned by said defendants or said combination into the channels of interstate commerce, or such other relief shall be granted by the appointment of a receiver or otherwise as this Court may determine. 4. That should the defendants find it impossible to perfect the details of said plan on or before the said fifteenth day of December, 1912, they may have leave to apply to the Court for further time to carry out said plan. 5. That until said plan is `carried into operation and effect, the said twenty-seven defendants hereinbefore named in paragraph two of this decree, are, and each of them is, and the agents and servants of them are jointly and severally hereby enjoined from doing any acts or act which shall in any wise further extend or enlarge the field of operations, or the power of the aforesaid combination. It is further ordered, adjudged and decreed that the said twentyseven (27) defendants, their stockholders, officers, directors, servants, agents and employees be and they are hereby severally enjoined and restrained as follows: |