Gunpowder Trade Association.

The Gunpowder Trade Association was organized by the nation's major powder companies in April 1872. The aims of the association as stated in the agenda to its first meeting were: (1) regulate the powder market in order to avoid overproduction, (2) put an end to cut-throat competition and price wars, (3) establish sales quotas and (4) gain control over those companies that did not join the association.

Lammot du Pont of E. I. du Pont de Nemours was the first president of the Gunpowder Trade Association. He initiated a period of consolidation by establishing a policy wereby the Du Pont Company would lend capital to its competitors or alternatively acquiring their stock or other assets as a way of forcing them to adhere to Association policies. In this way the Du Pont Company expanded and consolidated its control of the powder market.

The members of the Gunpowder Trade Association met quarterly to establish policy. However, a Council on Prices met weekly, or at the call of the president, to hear complaints of violations of the price schedule.

The Gunpowder Trade Association continued to operate until 1903, when the Du Pont Company embarked on a strategy of vertical integration and concluded that it no longer needed to work through the Association.

From the description of Records, 1870-1903. (Hagley Museum & Library). WorldCat record id: 122503445