The evening times. [volume] (Grand Forks, N.D.) 1906-1914, 1911-09-19
UNITED SHOE
MACHINERY CO,
IS INDICTED
Charged By Government With
Conducting a Business in
Restraint of Trade

FINDINGS Of GRAND JURY
AGAINST OFFICERS As WELL
History Of the Concern and is Alb.
sorption of Opposition by Means Of
Royalties on the Patents It Owns
Findings Are Also Involved.
Boston, Sept. 19-An indictment
was returned 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 de-
PENDANTS are charged with conducting
business in restraint of trade.
The officials indicted are Sidney w.
Winslow of Orleans, president; Ed
ward p. Hurd of Newton, vice presi-
dent; the assistant treasurer, direc-
tor and member of the executive
committee, George w. Brown of New
ton. vice president, member of the
I IL,
William Barber of New York; vice
president, member of the executive
committee and director, Elmer P.
Howe Of Boston; counsel, member of
! the executive committee and director,
James j. Storrow. The largest stock
holder and formerly member of the
executive committee and director, DR..
Storrow, who resigned from the
board on Dec 8, 1909, a month previ-
GUS to the municipal election in
which he was candidate for mayor.
According to w. S. Gregg of the
department Of justice at Washington
who has been in charge of the case,
the indictments charge that the six
defendants have been working
through the instrumentality of the
United Shoe manufacturing company
In way to make them criminally
liable under the Sherman act.
Complaints made to the department
OF justice against the United Shoe
Machinery company-the so-called
shoe machinery trust"-brought the
attention Of the government to the
case.
1t is understood that the corpora
ton was charged with being a monop-
oily in restraint of trade. Infringe
ments upon the patent laws were also
alleged, it is said.
Prompt action on the part of the
government followed the receipt of
the complaints. In April-a few
weeks after they had been filed
William S. Gregg, special assistant to
United States Attorney General Wick
ersham began a government probe.
Special Agents George E. Kelleher
and James l.. Bruff assisted Mr.. Gregg
in his search for evidence.
The result Of the work of these
government officials was that on July
26 of this year Attorney General
Wickersham ordered United States
Attorney Asa P. French and Mr..
Gregg to present evidence obtained to
the federal grand jury that reported
today.
History Of Company
The United States Machinery COM
J pany came into being in 1889. 1t was
founded by Sydney N. Winslow, its
lpresent head, who learned shoe MAX
ing in small factory in Salem, Mass.
owned by his father, who to secure
advantages of combining allied inter-
ests formed a corporation embracing
the three leading companies then
making shoe machinery-Goodye ear
Sewing Machine company, (consoli-
dated), and Mckay Lasting company
and Mckay Shoe Machinery company
were consolidated. The company
was reorganized in 1905 and subse-
quently auxiliary companies sprang
up in Canada, Great Britain. France
and Germany. That same year the
manufacturing Of all its shoe making
machinery was concentrated In one
large factory at Beverly, Mass. The
United States Shoe Machinery COM
pany now employs 1000 hands, who
turn out 10000 shoe machines year.
ly.
The royalty system, by which the
corporation disposes Of its machines,
allows a shoe manufacturer to lease
machines, paying rentals in royalties
on every shoe made. A manufacturer
may buy machinery If he gets it from
the United Shoe Machinery company.
providing he buys his "findings''-
such as wire nails and eyelets-from
the company.
1t is claimed that the royalty paid
the United company is about 2 2-3
cents per pair Of shoes.
Last year the company brought suit
against Thomas G. Plant, a Boston
shoe manufacturer, charging patent
infringements. 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 Bresnahan Shoe Ma
chinery company of Lynn. Mass
was also purchased by the United
company.
The next important happening in
the life of the United Shoe Machinery
company was the unexpected govern
ment probe. The special grand jury