The sun. [volume] (New York [N.Y.]) 1833-1916, 1911-07-28
WASSACHl SETTS WILL LEAI T.
~ TO 4. \. GRAND ~ M.
Legislative Committee Decides After
Hearing some r, ,Idencc That state
investigation should AWAIT the Rc.
suit Or tho Federal Courts Action.

EosroS, July -, An investigation into
tho affairs Of the United shoe Machinery
Company by the legislative Committee
on Rules was held at the State House
to-day The object of the inquiry was 10
pas, upon the question whether the rules
should be suspended To permit the admls-
sion in tho House of a resolution for q
special recess committee to investigate
the operations of the company.
! At the close Of the hearing the commit
tee voted To report ought not to pass tC
! the Legislature tomorrow,
! Members of the committee said this
action was taken in view of the coming
! investigation of the company by the
/ Federal Government The committee
also voted to report in favor of referring
the second message from Gov. Foss
calling for new anti-shoe legislation TO thu
! next general court
! Charles IL Jones. president of the Com
monwealth shoe Company, was the frs
witness called He said:
/ The United company has monopoly
and they POSSESS control of all tn" essen
tial machinery for shoe making. W.
must either lease their machines or &c
out Of business. We must pay royaltie,
TO them on patents which have expired
We pay from 81 800 TO 81. 700 year Lease
on eacn machine. and we must lease then
! for seventeen years
The legis lation of 1907 helped only
the | nited company They can take ON
machines on thirty days notice. The
manufacturer cen do nothing. We shouic
have the same right Inc Ia" keep
him AT the mercy of the trust. lh'
new act which has been drawn up gives
the relief needed and makes the ole
law efficient and enforcibie."
In defining the difference hetweer
ROYALTY machines and those purchasec
outright Mr. Jones said that the Goodyear
weltiug n achine which probably costs
the United shoe Machinery Company
$3.50 to manufacture. is sold outright
! in England for $500 In this country
the same machines are installed IN fac
tory on royalty system amounting
to from 81, 200 TO 81 500 year Tor seven
teen year lease. and at the end OF the
lease we cannot purchase them M
declared with emphasis
why" asked one Of the committee
men. do you not buy the machines IN
England" ,
because if We did" replied Mr., Jones
",he United shoe Machinery Corporation
would take out our other important ma
chimes furnished us on a royalty basis.
President Winslow of the compan,
said: Il deny that there is any coercion
used TO make the manufacturers use ou'
machinery. To explain the leases which
have been quoted. would take more time
than | have at present. but | can only
saw tha, their terms have been wrongly
interpreted -,
Charles +. Choate Jr., attorney for tht
company, declared that the attacks on the
company were instiRated by an associa
tion of Western shoe manufacturer
and that their attorney was Louis ID
Rrandeis. Il warn you" he said moi
to iniure a great Massachusetts, industry
NV giving heed TO the agitation which
a lot of outsiders have started for thei'
own selfish ends. Is il right for the Legis
lature to let lot Of people from wes
Of the Mississippi dictate to business II
ssachusetts?' go.
Special Assistant Attorney GeneralW
lam s Gregg arrived from Washington
TODAY 20 take charge of the investigation
bv the United States Grand Jury. He sale
that a large number Of witnesses have
been summoned some Of them from
distant parts Of the country.