The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1911-09-20
Officers of United Shoe
Machinery Company
Accused
WILL ENTER PLEAS
WITHIN TEN DAYS
Defendants Charged With Con.
Quoting Business in Restraint
OF Trade and in Way to
Make Them criminally LA
BILE According to the
Sherman Act.

Boston. Mass. September 1s-st,
prominent business men Connected
with the United Shoe Machinery Com.
pahy were indicted to-day by the Fed.
eral grand jury for alleged violations
Oh the Sherman antitrust act.
Two indictments were returned al
iesms the maintenance OF an unlaw-
-al eonoination and conspiracy in re-
s'raint or trade on the part of Presi-
dent Sydney w. Winslow, Vice-Preei
dents Edward P. Hurd, George w
Brown and William Barbour, Counsel
Elmer P. Howe and James j. Storrow
Messrs Winslow, Hurd, Brown. Howe
and storrow are Bostonians,. while Mr. e
Barbour is a resident of New York.
All except Mr.. Storrow are directors
OF the company. Mr.. Storrow resigned
from the directorate just before the
tnuhicipal election two years ago.
when he was candidate for MAYOR.
but Is the largest stockholder
The grand jury sat for nearly
month considering the evidence pro-
duced by seventy-five witnesses, who
were brought here by special agents
OF the Department OF Justice at Wash
ington from all parts OF the country.
but especially from New England.
The investigation was In charge OF
United States District Attorney Asa
/ P, French. assisted by Special Assist
ant Attorney Generals Gregory and
! Pagan, of Washington
The Indicted officials will be sum
noned into court within the next ten
days to plead to the indictments and
furnish bail
Fine and imprisonment.
| The penalty provided under the
statutes involved is a fine of $4,000 or
imprisonment for one year, or both
The trial will not take place until
we'll along in the winter, owing to the
crowded condition OF the Circuit
| Cour. calendar
According to Attorney Gregg. the
| Indictments charge that the six de-
PENDANTS have been working through
the instrumentality OF the United Shoe
Manufacturing Company in way to
make them criminally liable under the
Sherman act.
The second Indictment also alleges
that the carrying on OF the business
under the merger OF three old shoe ma
chinery manufacturing companies
which was effected in February. 1899,
was engaging in a combination In re.
straint of trade. that 1t was Il con.
spiracy In restraint of the trade OF
shoe manufacturers, and that the whole
transaction was a monopolization OF
interstate trade. all OF which. 1t is fur
Their alleged has had "a pernicious
effect upon the public
The United Shoe Machinery Com
pauy has branches in various parts OF
the world
Complaint to Government.
Complaints made to the Department
of Justice against the United Shoe
Machinery Company-the so-called
shoe machinery trust"-brought the
attention OF tina government to the
case
Prompt action on the part OF the
government followed the receipt of the
complaints. In April-a few weeks
sitter they had been tiled-William 8
Gregg. special assistant to United
I states Attorney General Wickersham,
began government probe. Special
Agents George L. 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 &c
of this year Attorney General Wick
ershom ordered United states Attorney
Asa p. Branch and Mr. Gregg to pre-
sent evidence obtained TO the Federal
grand jury that reported to-day
The United Shoe Machinery Com
pany came into being in 1889. 1t was
founded by sydney ~ Winslow. its
present head. who learned shoemaking
in small factory in Salem. Mass.
owned by his father, who to secure
advantages of combining allied inter
ests. formed a corporation embracing
the zee leading companies then max
ing shoe machinery--Goodyear Sewing
-cmine Company (Consolidated), Me-
Kay Lasting Company and Mckay Shoe
Machinery Company. The company
was reorganized in 1906 and subse-
guently auxiliary companies sprang up
in Canada, Great Britain, France and
Germany. THAT same year the manu-
featuring of all its shoemaking ma
chinery was concentrated in one large
factory at Beverly, Mass. The United
Shoe Machinery Company now employs
1000 hands. who turn out 10000 shoe
machines yearly.
Royalty system,
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 manufacturers
may buy machinery IL he gets 1t from
the United Shoe Machinery company,
providing he buys his "andings"--such
as wire sails and eyalets-from the
company.
II is claimed that the royalty paid
the unitedCompany is about 22-3
cents per pair of shoes.
LAST year the company brought SUIT
against Thomas @. Plant, a Boston
shoe manufacturer, charging patenr
infrngements Plant sold out his shoe
m>chinery plant and patent rights to
the United Company, after bittar
hsht
4 few months later an independents
company, the Rrcsnnhan Shoe Machln-
cry Company, ostynn, Mass. was also
purchased by the United Company.
The next important happening la
HE life OF tha United shoe Afaohfnavs, X