Omaha daily bee. (Omaha [Neb.]) 187?-1922, 1910-07-26
RIVAL SHoEMAKING MACHINE
Bay state Combine Goes Into
Court 10 shut Out
Competition.

Suit has been instituted in the supreme
court of Massachusetts by the United shoe
Machinery company against the Thomas G.
Plant company and its president. Thomas
G.. Plant, manufacturers of shoes.
The Plant company is declared to have
stopped using patented shoe machines in
alleged violation of the terms of leases il
held from the plaintiff and to have sub-
stituted other shoe making machines in
their places. The United Shoe company
seeks TO enforce the covenants in the leases
with the Plant company, and asks for in
functions to restrain it from using ma
chimes of other make in substitution for
the leased machines.
An accounting for the rentals or royalties
for April or May, due under the leases.
and damages for alleged violation of the
leases are sought.
The validity of the covenants are to be
questioned. The plaintiff has as counsel
Fish, Richardson, Hcrrick & Neave, w. b.
Tarr and e. p. Howe. and Sherman l..
Whipple il counsel for the defendants. A
subpoena has been issued on the bin re-
| turnable the first Monday OF August.
The United Shoe Machinery company as
sorts that 1t has spent millions of dollars
in acquiring patents and in perfecting them.
Instead of selling its machines outright
1t leases them, avoiding. 1t declares, the
necessity for tho shoe manufacturer having
as largo capital as would be required TO
purchase them. M
| The total market value OF machines
owned and leased by the plaintiff is s25,-
100000. The leases We're made to the de-
PENDANT company in 1909, and they have
not yet expired, it is asserted.
The leases are declared to contain agree
| rnantq that the dnfandnnf coOnnanv ahotiId
use the machines to their full capacity. 1t
is claimed that by ceasing to use the ma
chimes in April and taking in and using
other machines in substitution this cove
nant was violated
Violation of another agreement IN the
leases by refusing to pay royalties in May
on shoes which were not, but should have
been, made on the machines is alleged.
Another provision Of tho leases is that the
defendant company should purchase all
duplicate parts, extras and devices needed
or used in operatin-:. repairing or renewing
the leased machines from the plaintiff
and it is asserted that this covenant has
been violated. y" ''+ f'-"
The Plant company is the first Of the New
England manufacturers openly to defy the
shoe machinery combine and introduce thS
shoe making machines of a rival patentee.
n me United Shoe Machlnery company mai
0 a capital of $50 S5O.5lS. It's profits for eigh
0 years, 19O2-19O0 amounted to $2S,411.1S5. i
y divided less than half of this. and piled VI
surplus in eight years of $i5,O14S99. Five
0 years ago the United Shoe Machinery cor
poration was formed to take over the com
pany with an increased capital, in order t
absorb the accumulated profits, which
would not look well to divide The cor
| marathon is not able TO get rid of all IL
profits without attracting too much at
! tention to its exuberant prosperity, and
: has Just made a stock dividend worth NOR
than $s,5OO,OOO The profits OF the Shoe Ma
/ chinery company in eight years were 1867
, per cent, or a trifle more than II per cen
year.