The Birmingham age-herald., 1911-09-20
Indictment Alleges Merger

The second indictment also alleges that the carrying on of the business under the merger of three old shoe machinery man- ufacturing companies which was effected in February, 1899, was engaging in combination in restraint of trade; that if was conspiracy against the independ- enl manufacturers, and that the Whole transaction was monopolization likewise of interstate trade.
 II was further alleged this had per- nicious effect upon the public.
 The United Shoe Machinery Manufaet- uring company has branches in various parts of the United States and other countries
 Complaints made to the department of justice against the United Shoe Machin- cry company-the so called "shoe ma- chinerv trust"-brought the attention nf the government to the case.
 It is understood that the corporation was charged with being a monopoly in restraint of trade. Infrngements upon the patent laws were also alleged, 1t is said.
 Prompt action on the part of the gov ernment followed the receipt of the com- plaints In April-a few weeks after they had been filed-Willam s. Gregg, special assistant to United States Attorney Gen. eral Wickersham began a government probe Special Agents George F. kelle- her and James l.. Bruff assisted Mir. Gregg in his search for evidence.
 The result of the work of these gov ernment officials was that on July 28 of this year Attorney General Wicker sham ordered United States Attorney Asa F. French and MT. Gregg to present evi- denee obtained to the federal grand jury that reported today.
 Founded By Winslow
 The United Shoe Machinery company came into being In 1899. It was founded by Sydney N. Winslow, its present head, who learned shoemaking In q small fae- tory in Salem. Mass, owned by his father, wbo, to secure advantages of combining allied interests, formed corporation .eni- bracing the three leading companies then making shoe machinery-tG Goodyear Sew ing Machine company. Consolidated and Mckay Lasting company and Mckay Shoe Machinery companyl-were consol- dated The company was reorganlzed III 1905 and subsequently auxiliary companies sI rang up in Canada, Great Brtalh, France and Germany. That same year the manufacturing of all it's shoemaking ,raehin.rv was concentrated in one large factory at Beverly Mass. The United States Shoe Machinery company now em- blows 4O0O hands, who turn out so,Wi shoe machines yearly.
 Royalty System Explained
 The rovaltv system by which the corpora tlon disposes of it's machines, allows shoe manufactures to lease machines, having rentals in royalties on every shoe made manufacturer may bury machin- cry if he gets it from the United Shoe Machinery company, providing he buys his findings such as wire nails and eyelets--froIn the company.
 II Is claimed that the royalty paid the United company Is about 2-S cents per ralr of shoes.
 Last year the company brought suit against Thomas q. Plant, Boston shoe manufacturer, charging patent infringe ments Plant sold his shoe machinery plant and patent rights to the United com pany after d bitter fight.
 A few months later an independent com pany--the Bresnahan Shoe Machinery company of Lynn, Alass,-was also pur- chased by the United company.
 The next important happening in the life of the United Shoe Manufacturing company YVES the unexpected government, probe The special grand jury was called August 1st Government agents stated be fore serving subpoenas that the question of leases would he a vital question for the grand jury to consider The Jury made an extensive investigation, sitting four and five days a week during t'.s entire month Of August.
 State Investigation
 Announcement of the climax in the yov- arnments inquiries was coincident with \ proposal for q state investigation by s:3v- 
 sCox1INUED ON rA6E ~