Rock Island Argus. (Rock Island, Ill.) 1893-1920, 1910-08-17
FIELD OF LITERATURE
a Trust That Levies Tribute on Almost
Every American.


Hampton's Magazine for Septemher
tuins the focus OF it's spot light on the
Shoe Machinery trust. OF this-a trust
which reaches into the pockets of AL
most every man, woman and child In
the country, Judson c. Welliver saws:
Sidney w. WinsIow's Shoe Machin.
cry trust may not be the biggest trust,
Dut II mas the finest monopoly. and
Iovies tribute on more people than any
other.
ut dominates the American shoe
manufacturing industry, and seeks to
nominate that industry throughout the
"orld. IL makes no shoes. 1t makes the
machines with which shoes are made.
For many years, because it had per
fected an almost alright monopoly of
patents, nobody has been able to make
or wear shoes without paying tribute
10 1t. 1t eleven years it has grown
from $4,000, 900 to almost s1OO, 900 900.
ara right now it is engaged in a fight
for its life which promises to be one of
the most spectacular and bitter strug-
giles ever known IN industry. The trust
is seeking to make our patent laws sus-
tain its monopoly and thereby abrogate
the Sherman antitrust law"
Vhy shoes have been growing more
expensive since the tariff on shoes and
hides was cut has been an unsolved
problem with many. Mr.. Welliver gives
the reasons thus:
The Shoe Machinery trust was or
gsnized in 1899. Then it had S9,152, 900
preferred stock, and So, 92S, 900 common,
probably largely water. In eleven years
the immense earnings raised the COM
non stock capitalization to $4,000, 900. |
worth at market quotations, $40, 600, 900. |
"The company accumulated S1S,592,- !
ono surplus and distributed untold 9TH |
er millions in fat dividends in that |
period.
Every year its tribute is vaster. For |
the business year 1909 it reported /
earnings from operation, plus increase |
in value of shares in it's subsidiaries, of |
almost sS,000,000. March 1, 1910, it
had S0,734 machines on lease in this
country; and President Winslow is
Quoted as saying three years ago, that
it controlled SO per cent OF the shoe
machinery in the United States.
"The trusts monopoly is based pri-
maIily on control of patents, compel
ling manufacturers to use it's machines,
and form of lease designed to bind
them to use none other.
THE disaffection of shoe men with
tie trust" Mr.. Welliver continues,
"crystallized in 1905 in a vigorous de-
mand by part of the Massachusetts
trade for legislation to prohibit the
trust forcing manufacturers to use it's
machines to the exclusion OF all 9th
ers. Richard H Long of South Fran
iEgbam, Mass, took the lead. Mr.
Long was the original, and has been
the most persistent antagonist of the
trust.
Richard H. Long is one of the pa
triots of business Other men had
more to gain by making that fight and
less chance to lose everything. Others
could better afford to pay a $4,000 fee
to single lawyer, as Mr.. Long did,
along with immense expenses in other
directions. But these others were not
doing it; somebody must; and so Rich
ard Long did it.
But sophistries and evasions were
useless as against the facts. It was
shown that as far back as 1904 the
British shoe manufacturers had risen
In revolt against the United Shoe Ma
ch'nery corporation, which held them
In the same grip of iron, and petitioned
the privy council to compel modif1ca-
lions of the trusts lease. A day was
ser for hearing on this petition, and
that very day the trust surrendered,
conceded the nine important changes
which were demanded in the leases,
and avoided the hearing!
Nine big, vital, telling concessions
voluntarily made to the British manu-
facturers! Only one of the nine was
asked by the American manufacturers;
and the trust fighting to the last ditch !
against granting that one!" !