Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1911-09-20


Machinery Company-thc soealled
Shoe Machinery Trust''-brought the
attention of the government to tbs
case.
It is understood that the corporation
was charged with being a monopoly in
restraint of trade. fnfringements
upon the patent laws We're also al
legged, it is said
Prompt action on the part Of the
government followed the receipt al the
complaints. In April-a few weeks
after they had been filed--William s.
| Gregg, special assistant to United
State Attorney General Wickersham
began government probe Special
| Agents George Z. Kelleher and James
l.. Bruff assisted Mr.. Gregg in his
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
The United Shore Machinery Com
pany came into being in 1899. II was
founded by sydney y, Wlnslew. It's
present head. who learned shoe MAX
ing in a 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 max
ing shoe machinery-(G Goodyear Sew
Ing Machine Company. Consolidated
and Mckay Lasting Company and Ne
Kay Shoe Machinery ompany)-were
consolidated. The company was re-
organized in 1905 and subsequently
auxiliary companies sprang up in
Canada, Great Britain, France and
Germany. That same year the manu-
featuring of all it's shoe making ma
chinery was concentrated in one large
factory at Beverly, Mass The United
States Shoe Machinery Company now
employs 1000 hands, who turn out 90
GOO shoe machines yearly.
The Royalty system, by which the
corporation disposes of its machines,
allows 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 ropalty paid
the United Company is about . %
cents per pair of shoes.
Last year the company brought suit
against Thomas G. Plant. a, Boston
shoe manufacturer. charging patent
Infringement, Plant sold out his shoe
machinery plant and patent rights to
the United Company after bitter
fight
a few months later an Independent
eompany-the Bresnahan 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 list Cow
eminent agents stated before serving
subpoenas that the question Of leases
would be vital question fer the
grand jury to consider. The curry
made an extensive investigation, sit
ting four and five days week during
the entire month of August.
Announcement of the climax IN the
governments Inquiries was coneident
with a proposal for state investiga-
ton by Governor Eugene y. Foss, q
Democrat. who in a message to the
legislature. which was then in session
pointed out the need of statute to
reach the alleged monopoly. The
legislative committee on rules said
that an anti monopoly bill already en-
acted covered the situation.
Governor Foss. then turning to At
torney General Swift. demanded an
immediate investigation of the meth
DDS of the Massachusetts Shoe Ma
1 chinery industry.