and limit production. In the third member of this group, the Standard Envelope Company, we have probably the most interesting combination of the three. The Standard Envelope Company was a Massachusetts corporation with a capital of $5,100, incorporated by certain envelope manufacturers. It was a convenient method of harmonizing the interests of the different members, and was used as a medium for the pooling of profits and expenses. Another and supplementary agreement provided an arrangement for equalizing and keeping prices at a fixed rate, and also for equalizing losses and expenses.-Ed. EXHIBIT I ARTICLES OF ASSOCIATION OF THE MANUFACTURERS OF GUN POWDER 1 We, the undersigned, Manufacturers of Gunpowder, for the purpose of ensuring an equitable adjustment of prices and terms for sales of powder throughout the United States, hereby agree to the subjoined Articles of Association, to which we severally pledge for ourselves, and all under our control, rigid and honorable adherence. Ist. This Association shall be called "THE GUNPOWDER TRADE ASSOCIATION OF THE UNITED STATES," and comprises all manufacturers of Gunpowder in the United States, who now or hereafter may be admitted thereto; the present organization being composed of the following manufacturers, entitled to representation and vote at all meetings of the Association, as follows: E. I. Dupont de Nemours & Co.....Ten Votes. .Ten Votes. Laflin & Rand Powder Company. . . .Ten Votes. Oriental Powder Mills. Austin Powder Company.. ..Six Votes. .. Four Votes. .. Four Votes. .Four Votes. 1 United States of America v. E. I. du Pont, de Nemours and Company. In the Circuit Court of the United States for the District of Delaware, Gov't. Ex. No. 96-b. Pet. Record, Exhibits, Vol. 1, pp. 476-479. The minutes of the same meeting that adopted this agreement show that a committee reported a scale of prices which was also adopted and made binding upon the Association. For a complete history of the powder combinations, see Stevens, Wm. S., Quarterly Journal of Economics, May, 1912, Vol. XXVI, pp. 444-481.-Ed. 2d. The officers of this Association shall be a President, Vice-President, Secretary, and Treasurer, to be elected by ballot on the first meeting of this Association, and annually thereafter, and who shall hold office until others are elected in their stead. 3d. It shall be the duty of the President to preside at all meetings of the Association, and on the written request of two members thereof, to call special meetings of the same. In case of his absence, the same duties will devolve upon the Vice-President. The Secretary shall attend all meetings of the Association, keep full record of their transactions, and issue such notices to the associates as the properly authorized officers may direct. The Treasurer shall have the custody of all funds belonging to the Association. 4th. This Association shall meet quarterly: say in the first week in February, May, August, and November, of each year, at such time and place as may be agreed upon at the previous quarterly meeting, for the purpose of establishing prices if need be, of hearing and deciding appeals, and determining all questions relative to the trade that may be submitted to it. 5th.-A Council of five persons, associates, of whom three (3) shall constitute a quorum, shall be elected by this Association at their first meeting for organization, and annually thereafter, holding office till the election of their successors, in default of such annual election. Such Council shall meet weekly (or at the call of the chairman) in the City of New York, or elsewhere, as a majority of Council shall decide. To said Council shall be referred all questions of discrepancy and deviations from prices in the different home markets, all complaints in writing of infraction of agreement by any agent of any associated company or firm; they shall adjudicate upon the same, and the decision by a majority of the Council shall be final; provided, that any associate aggrieved by such decision may appeal to the next quarterly meeting of the Association, pending which he must submit to the decision of the Council. 6th. Any manufacturer of Gunpowder desiring to be admitted a member of this Association, may at any time signify his wish in writing to the President thereof; when upon admission and on his signing the Articles of Association, the said manufacturer is at once entitled to participate in its benefits, as he is likewise bound by its obligations. No member of the Association shall withdraw from the same without having signified his intention so to do, at least thirty days before such withdrawal, to the President, who shall at once call a special meeting of the Association. 7th. The minimum prices for powder of the various sorts required for the trade shall be established and regulated by this Association. 8th. Any funds necessary for the carrying out the provisions of these Articles shall be assessed by the Council upon the associates in proportion to the votes to which they are respectively entitled. 9th. These Articles shall not be altered or amended, except by a vote of two-thirds of the members of the Association at a regular quarterly meeting and after at least thirty days' notice of the proposed alteration or amendment. EXHIBIT 2 PROCEEDINGS OF THE KENTUCKY DISTILLERS AT THEIR MEETING IN LOUISVILLE, KENTUCKY, MAY, 18881 Ist. Determine the quantity of whisky to be made in 1889. On this point 11,000,000 gallons is recommended as the maximum. 2d. Of this quantity let there be distributed under the following rules 9,000,000 gallons, leaving 2,000,000 gallons as a reserve, to be placed in the hands of a committee of ten, consisting of two from each collection district, to be allotted in such quantities and to such signers as in the judgment of the committee may be required to even up the shares of each, when any injustice, all facts duly and impartially considered, has been done under the rule. 3d. Take the surveyed capacity of the distillers of the State, and, after excluding from consideration all houses with a daily capacity of less than 40 bushels, ascertain the percentage of capacity actually used for an assumed period of 156 days in producing the crop of 1886, if the distillery was not operated in 1887, or the crop of 1887, or an average of the two years, when no production was made in 1886 and 1887, the committee shall make a basis fairly and justly. 4th. Having ascertained as above the actual percentage of capacity used by each, multiply the surveyed capacity by this percentage and thus ascertain the number of bushels required to 1 House Report No. 4165, 50th Cong., 2nd Session, 1888, pp. 33-36. This agreement followed one of similar character adopted in June, 1887.-Ed. have produced the quantity of whisky in a run of 156 days that each actually produced in 1886 or 1887, or the average as may be taken as the basis. 5th. Having thus equalized all the houses and ascertained the relative number of bushels daily capacity, multiply this daily capacity by 104 days and 44 gallons to the bushel, and ascertain the gallons each is entitled to make. Add these shares together, and if the total is less than 9,000,000 gallons, increase the days from 104 to the number required to produce the 9,000,000. If the total exceeds 9,000,000 gallons, reduce the days to the number required to produce the 9,000,000. The different houses are entitled to make the shares thus obtained in such time during the season from July 1, 1888, to July 1, 1889, as may suit their convenience. The committee will, after the above appointment is made, receive applications for allowance out of the 2,000,000 reserved, fixing a date in the future by which time all applications are to be filed with the committee. The allotment will be made not to exceed the 2,000,000 gallons in the aggregate, and in such quantities, if any, to each applicant as the facts presented may justify. 6th. The committee shall furnish each distiller with a statement of the share to which he is entitled under the rule, and also a statement of the allowances, if any, made out of the reserve; said statements to be signed by the committee. 7th. Five members of the committee shall constitute a quorum for business, but no allotment shall be made except at fixed time or times, of which ten days' notice must be given each applicant in writing. No member shall sit as a committeeman in considering his own application. 8th. The distillers forming this agreement shall elect a board of trustees, to consist of seven members, whose duty it shall be to enforce the agreement. The committee described in sections preceding this section shall be charged with the duty of obtaining to the agreement the signatures of such distillers as may be absent at the meeting, and shall, when this work is performed, deliver to the chairman of the board of trustees this agreement, and a statement giving the shares of each distiller. 9th. The board of trustees shall, within ten days after their election, elect a chairman, and is hereby authorized and directed to secure an office in the city of Louisville, and to appoint a competent secretary and fix his salary. The secretary shall keep a full and complete record of the bond stock of the signers to this agreement, from reports received from each distiller, as directed in section 10. 10th. Each distiller is requested and directed to send the secretary, when the office is established, a full and complete statement of the 1886 and 1887 whiskies, by months, then in his distillery bonded warehouses, and from the 1st to the 5th of each succeeding month, a statement of the withdrawals and deposits by months, together with a check for such an amount per barrel of deposits as may be fixed by the board of trustees as sufficient to pay all expenses, provided such rate shall not exceed 4 cents per barrel deposited in bond. II. A full and accurate account shall be kept of all moneys received and of all disbursements. The secretary shall furnish, not later than the 20th of each month, to each signer a full and complete statement of the bond stock of the signers by months and years, as of the last day of the preceding month. 12. The agreement to be signed is in substance the same as that signed in 1888. The amount as determined by the committee as the share of each is to be placed opposite each name by the trustees from the statements furnished by the committee. The trustees shall then mail to each signer a statement setting forth the quantity placed opposite the name of each. If said quantity differs from that as shown in the statements furnished each signer by the committee, said signer must at once report the fact to the trustees, who shall investigate and ascertain and correct the error, if any. 13. The committee in allotting the reserve of 2,000,000 gallons will give the fullest consideration to signers that were most conservative in 1886 and 1887, in order to give to such signers the proper reward for their consideration. In event of any dispute or controversy except as provided in the next section, arising between the committee or trustee and any party to the contract, the same shall be settled by arbitrators, to be selected as follows: one by the committee or trustee and one by the party, and these two an umpire, whose award shall be final between the parties. There shall be selected by the convention a committee of five men, one from each collection district, who shall be known as the board of appeal, to whom any party who deems himself aggrieved by any allotment of capacity may appeal, which appeal shall be made in ten days after notice of allotment and five days' notice |