The Fargo forum and daily republican. [volume] (Fargo, N.D.) 1894-1957, 1911-09-19

were consolidated. The compan,
was rganized In 1905 and subsequently
auxiliary companies sprang UP in Can.
ada, Great Britain, France and Ger.
many. That same year the manufac.
turing of all It's shoe-malring machin.
cry was concentrated in one large fac.
tory at Beverly. Mass. The Unitet
States Shoe Machinery CO. now EN-.
ploys 1000 hands, who turn out 20,OOC
shoe machines yearly.
The royalty system, by which tins
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 II he gets IL from
the United Shoe Co., providing he buys
his "hndings"-euch as wire nails and
eyelets-from the company.
1t is claimed that the royalty paid
the united company Is about 2 Ia
cents per pair Of shoes.
Last year the company brought suit
against Thomas G.. Plant, q Boston
shoe manufacturer. charging patent
infringements. Plant sold out his shoe
machinery plant and patent rights to
the united company after q bitter
fight.
few months later an independent
company-the Brosnallan Shoe Ma
chinery Co. of Lynn, Mass.-waa also
purchased by the united company.
The next important happening IN the
life Of the United Shoe Machinery Co.,
was the unexpected government probe.
Tho t-f 4Vxw "a
!. Government agents state before
serving subpoenas that the question
OF leases would be a vital question
Tor the grand jury to consider. The
jury made an extensive investigation.
sitting four and Ave days a week DUR
ing the entire month OF August.
Announcement of the climax IN the
governments inquiries was coincident
with proposal for a state investiRa-
ton by Gov. Eugene N. Foss, a demo-
crat, who in a message to the legtslat-
ure. which was then in session, pointed
out the need OF a statute to reach the
alleged monopoly. The legislative
committee on rules said that an anti
monopoly bin already enacted 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
chinery industry.
Attorney General Swift then re-
quested the governor for evidence.
The governor replied 1t was not the
duty OF his office to supply evidence.
Meanwhile Governor Foss again urged
the legislature to take action, accom-
a second message with a let
ter from the president Of a large Mas
shoe manufacturing COM
pany relating conditions in the indus
try,
A state hearing on the matter fol-
lowed and Representative Bogue from
the big shoe center at Lynn intro
duced q bill in the house OF represen-
tatives providing for a recess COM
mittee to begin a probe In Massaallu-
sets.
At the hearing Louis ID. Brandeis Of
Boston, who has assisted the govern
ment In some OF it's trust cases, pre-
sented a bill, drawn up, he said, for
Attorney General Swift, which pro-
vided for drastic regulations, prohibi-
ton Of royalties and leases, with
prison penalties for the violation.
Pres. Charles Fl. Jones, president of
\ large shoe manufacturing company,
IN reading the bill at a hearing de-
Shared that If it was enacted into law
t would mean the saving Of S cents
IN each pair Of shoes manufactured. |
AT the hearing Charles S. Choate,
IN attorney, declared that the United |
Shoe Machinery Co. had been doing |
everything In It's power to aid the |
government agents in their investi-
cation.
The order providing for the recess /
Investigation was killed In the house,
m the ground that the government |
vas already conducting an investiga-
ion against the shoe machine COM
,any.