Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1911-09-19
GRAND jury lNvEeTl.
CATION TO % FOLLOWED ~
PROSECUTIONS.
CORPORATION AND oFFicERs
clsARoEp WITH MONOPOLY
System Of csllsstins Royalty Fer Every
Machine Operated Held to Do in Re-
straint Of Trads-aivai Machine
laanufaete Shown to Have Been
Absorbed.

Boston, Sept. Ian Indictment was
returned today against the officers OF
the United Shoe Machinery Company
and second indictment was found
against the company itself. by the
United States grand jury. The defend
ants are charged with conducting bust
ness in restraint Of trade.
Charged With Monopoly.
Complaints made to the department.
OF justice against the United Shoe Ma
chinery Company-the so-cafed shoe
machinery trust the atten-
sstof 6f the government to the case.
1t Il understood that the corporation
was charged with being y monopoly 4:
restraint OF trade. Infr1ngements upon
the patent laws were also alleged, II Is
said.
Prompt action on the part of the
government followed the receipts Of the
complaints. In April few weeks
after they had been filed-WiNiam 8.
Gregg. special assistant to United
states Attorney General Wickersham.
began a government probe. Special
Agents George e. Kelleher and James
Z II. 0TuII dSSSStcu >sASs Soo -
search for evidence.
The result of the work Of these gov
eminent officials was that on July 26 OF
this year Attorney General wicker
sham ordered United States Attorney
Asa p. French and Mr. Gregg to pre-
sent evidence obtained to the federal
grand Jury that reported today.
orsanixsd In 1859.
e. ~ ,Nun
pany-cam into being In 1889. 1t was
founded by Sydney n. Winslow. It's
present head. who learned shoe max
Ing In a small factory in Salem. Mass,
owned by his father, who to secure ad-
vantages of combining allied interests
formed a corporation embracing the
three leading companies then making
shoe NEUTRALITY-SUSPICIOUS. Sewine
Machine Company. Consolidated ana
Mckay Tasting Company and mckay
Shoe Machinery Company)-were con-
solidated. The company was reorgan-
ized In 1905 and subsequently auxiliary
companies sprang UP In Canada. Great
Britain, France and Germany. Inat
same year the manufacturing OF all It's
shoe making machinery was concen-
trated in one large factory at Beverly.
Mass. The United States Shoe Ma
chinery Company now employs 1000
hands. who turn out 10000 shoe ma
chimes yearly.
Royalty System Used.
The royalty system. by which the
corporation disposes OF Its machlnes'
allows q shoe manufacturer to lease
machines, paying rentals In royalties
on every shoe made. A manufacturer
NAV buy machinery II he gets 1t from
the United Shoe Machinery Company,
nroyiding he buys his "indinss'-such
a wire nails and eyelets-from the
company.
the United company is ABOUT go
cents per pair of shoes.
Absorbs compstitors.
Last year the compony brought suit
against Thomas o. Plant. Boston
shoe manufacturer, charging patent in
fringements. Plant sold out his shoe
machinery plant and patent rights to
the United company after bitter
fight.
IA few months later an Independent
company-tlle Bresnahan Shoe Machin-
cry Company. Of Lynn. Mass.,-was
also purchased by the United company
-s The next important happening in the
life OF the United Shoe Machinery
Company Was the unexpected govern
nnent probe. The special grand jury
was called Aug. l. Government agents
stated before serving subpoenas that
the question OF leases would be vital
question for the grand jury to consider.
The Jury made, an extensive investiga-
ton, sitting four ond ave days week
during the entire month Of August.
9tate Deoins Probs.
q :Announcement Of tiae climax in the
governmsnt's Inquiries was coincident
with Z. proposal for q state investiga-
tion BY oovarnor Eugene n. Foss. a
democrat, who In a message to the leg
islature. which was then in 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
Immediate Investigation Of the methods
OF the Massachusetts shoe machinery
industry.
Attorney General Swift then re-
queSted the governorsfor 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
Eo0e again urged the legislature to take
Action. accompanying second mes-
saSo with = letter from the president
Of . large massachusetts shoe manu-
facturtng company relating conditions
ia the Industry
"a state hearing on the matter fol-
lowed and Representative Bogue, from
the big shoe center at Lynn, introduced
q bill n the house Of representatives
.pfoviding Tor asreceos committee to be-,
;glns = probe N Massachusetts.
Ns OsaNd ~ F6esnulaAos dill.
the hearing Louis D. Brandeis Of
eo6ton. Who has assisted the govern
a 80 sss