The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1911-09-19

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-Good Sewing
Machine company, Consolidated and
Mckay Lasting company and Mckay
Shoe Machinery company-were con-
SoIidated. The company was reorgan-
lied in 1905 and subsequently auxil-
Iary companies sprang up in Canada,
Great Britain, France and Germany.
That same year the manufa curing of
all its shoe making machinery was
concentrated in one large factory at
Beverly, Mass. The United States
Shoe Machinery company now employs
1000 hands, who turn out 10000 shoe
machines yearly.
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 manufactures
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 ss cents
per pair of shoes.
Last year the company brought suit
against Thomas C. Plant. a Boston
shoe manufacturer charging patent
Infringement Plant sold out his shoe
machinery plant and patent rights to
the United company after a 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 Government Probe.
The next important happening in the
life of the United Shoe Machinery
company was the unexpected govern
ment probe The special grand jury
OF 49, -
agents stated before serving subpoenas
that the question Of leases would be
vital question for the grand jury to
consider. The jury made an extensive
investigation, sitting four and five days
week during the entire month OF
August.
Announcement of the climax in the
governments inquiries was coincident
with proposal for a state investiga-
ton by Governor Eugene n. Foss. a
Dem ocrat, who in a message to the
legislature, which was then in session,
pointed out the need of a statute to
reach the alleged monopoly. The leg
islative committee OIL rules said that
an anti-mon0poly bill 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 machin-
cry industry.
AtlOTHey General swift then asked
the governor for evidence. The gov
ernor replied it was not the duty of
his office to supply evidence. Mean
while the attorney general consulted
with several shoe men, but Governor
Foss again urged the legislature to
take action, accompanying a second
message with a letter from the presi-
dent of a large Massachusetts shoe
manufacturing company relating con-
dltions in the industry
A State Hearing.
A state hearing on the matter fol-
lowed and Representative Bogue from
the big shoe center at Lynn intro
duced bill in the house of representa-
tives providing for a recess committee
to begin probe in Massachusetts.
At the hearing Louis D. Brandeis Of
Boston, who has assisted the govern
ment in some of it's trust cases. pre-
sented bill, drawn up, he said. for
Attorney General Swift, which provid-
ed for drastic regulations, prohibition
of royalties and leases. with prison
penalties for the violation.
President Charles H. Jones, president
of large shoe company, in reading the
bill at a hearing declared that If it was
enacted into law it would mean the
saving of cents on each pair of shoes
manufactured.
At the hearing Charles S Choate. an
attorney, declared that the United Shoe
Machinery company had been doing
everything in its power to aid the gov
ernment agents in their investigation.
The order providing for the recess in
veStigation was killed in the house, on
the ground that the government was
already conducting an investigation
against the Shoe Machine company.