The Calumet news. [volume] (Calumet, Mich.) 1907-1938, 1911-09-19
|NDICT ALLEGED
TRUST OFFICERS
CONTINUED from Page one)


machines paying rentals i'm royalties
on every shoe made. A manufactures
may but machinery II he gets il from
the United S',oe Machinery Company,
providing he buys his findings
as wire. nails and eyelets-from the
company.
1t is claimed that the royalty paid
the United Company is about 23
cents per pair OF shoes.
Last year the company brought suit
against Thomas O. Plant, n Boston
shoe manufacturer. charging patent
heterogeneous. Plant sold out his shoe
machinery plant and patent rights TO
the United Company after a bitter
fight.
a few months later an independent
company-the Bronnahan Shoe Ma
chinery Company of Lynn, Mass.-was
also purchased by the United Com
pany.
The next important happening in
the life of the United Shoe Machinery
Company was the unexpected govern
ment probe. The special Grand Jury
was called August 1st Government
agents stated before serving subpoenas
that the question of leases would be a
vital question for the grand jury to
consider. The jury made an extensive
investigation, sitting four and FIVE days
a week during the entire month of
August.
State Probe Also Proposed.
Announcement of the climax I'm the
governments inquiries was coincident
with a proposal for a state investiga-
ton by Governor Eugene n. Foss, a
democrat, who i'm a message to the leg
islature, which was then i'm session,
pointed out the need of statute to
reach the alleged monopoly. The Leg
islative committee on rules said that an
anti-monopoly bill already enacted
covered the situation.
Governor Foss, then turning to At
torney General Swift, demanded an i'm
mediate investigation of the methods
OF the Massachusetts Shoe Machinery
industry.
Attorney General Swift then re-
quested the Governor for evidence. The
Governor replied it was not the duty of
his Office to supply evidence. Mean
while the attorney general consulted
with several shoe men, but Governor
Foss again urged the legislature to
take action, accompanying second
message with a letter from the presi-
dent of a large Massachusetts shoe
manufacturing company relating con-
ditions in the industry
Reduce Cost of Shoes.
\ state hearing on the matter fol-
lowed and QnitiaD Representative
Bogue from the big shoe center at
Lynn introduced a bill in the House of
Representatives providing for recess
committee to begin a probe in Massa-
chusetts.
At the hearing Louis ID. Brandcis of
Boston, who has assisted the govern
ment i'm some of its trust cases. pre-
scented a bill, drawn up, he said, for
Attorney General Swift which provid-
ed for drastic regulations, prohibition
of royalties and leases. with prison
penalties for the violation.
President Charles ii. Jones, pres-
dent of large shoe company, in read
ing the bill at a hearing declared that
If it was enacted into law it would
mean the saving of five cents of each
pair Of shoes manufactured
At the hearing Charles S. Choate. an
attorney, declared that the United
Shoe Machinery Company had been
doing everything in it's power to aid
the government agents in their investi-
cation.
The order providing for the recess
Investigation was killed in the House.
on the ground that the government
was already conducting an investiga-
ton against the Shoe Machine Com
lpany.