Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1911-07-28

| tl@tL IN view OF the TACT That the fed
eral government was prosecuting an
! investigation of the Machinery Com
pany and also the attorney general of
! the state and as it would take four
| ffths vote to secure the introduction
| of new legislation into the General
| Court at this time ii was deemed best
to report unfavorably on the resolution
| The governments case against the
| United Shoe Machinery Co, The so
called "shoe machinery trust. was
completed at conference held here
| today by Special Assistant nited
States Attorney General VIM )
| Gregg, and United States District At
torney Asa p. French.
The evidence gathered by federal In
vestigators. under the supervision OF
Attorney General Gregg will be pre-
scented 20 a federal grand jury in Bos-
ton next Tuesday
After the conference neither nan
would say whether a civil suit for dis
solution or a criminal Indictment
would be asked of the grand jury.
4 report that Gov. Eugene y. Floss
would be among the witnesses called
20 tell what evidence has come To his
Office of the su-called monopoly was
current today, but could not be Yeri-
fed.
When asked if the evidence gathered
at a hearing held at the state capitol
today, in connection with the state
probe Of the United Shoe Machinery
Co would be admissible to the fed
erai grand jury room, Attorney Gen
eral Gregg said:
The mere fact that il is record
of an outside body would not neces-
sarily kept it out Whether it would
De admissible would depend on eircum-
stances.
A bin providing for drastic regula-
tons for the conduct of the shoe ma
cEine1y industry in Massachusetts
with prison penalties for their viola
ton. drawn up for Attorney General
Swift by Louis d. Brandeis prosecu-
tor in many trust cases, was read
10 the committee on rules at the state
capitol at a hearing called to consid-
er the resolution offered by Rep.
Bogue, of Lynn, for an executive probe
into the operations of the United Shoe
Machinery CO.
This bill was read by Chas. r. Jones,
president of 4 local since company, the
first witness called He declared that
the bill would destroy the present roy
atty system of the United Shoe Ma
chinery Co. The abolition of this sys
TEN he said would mean saving of
live cents on each pair of shoes man
ufactured through the removal OF roy
aIties on one According to Mr. BoGue
the money saved by the manufacturer
could be put into the manufacture of
a better shoe.
Representative Cavanagh of Lowell
asked would the money saved from
royalties be put into the manufactur-
ers pocket or into the shoe2'
Competition is so fierce that 80 per
cent. of the manufacturers would have
to put it into the shoe" Mr.. Jones re-
piled;
The principal provisions of the Bran
dcis law are:
Prohibition of the clauses in the lease
of shoe machinery requiring the manu-
| facturer TO take additional machinery
| from the same country.
Prohibition of clauses requiring the
manufacturer to pay a royalty on
goods in the making of which the
eompauys machine was not used.
| Prohibition of shoe machinery manu-
| faeturers from Incorporating in the
lease of their machines the right te
terminate such leases at any time.
provision that if under six day s
from the passage of the act any shoe
| machinery company shall violate the
| law every director and executive Of
| hcer of that company shall be held
guilty unless he has proved that he
has done his best TO have this company
take action in conformity with the
| law He is required to submit in writ
| ling a protest 10 that effect
| Charles Schoate, attorney for the
| United Shoe Machinery Co, gave the
hundred or more people from all parts
of the state who were i'll attendance
at the hearing something of sur
prise when he was called to the wit
ness stand and declared that the COM
lpany he represented had been doing al
In their power to aiG the government
IageRts in their investigation; the re-
suits of which would be placed be
fore the federal grand jury next Tues
lday. Attorney Choate said United Shot
was not opposed To Investigations ane
lwculd assist the Legislature In any
lHay and would help the attorney gen
lelal if he so desired in his probe.
President Winslow was on the wit
Iness stand when the hearing adjourn
ed until o'clock He declared that Mr.
Homes had misstated facts when h
said that leases were so worded tina
lit was impossible for a manufacture
to use other machines if lie used som'
) OF those put out by the United Shoe
President Winslow declared that II
lcertain groups contracts providing
that the manufacturer must use the
United Shoe cos. machines in tina
group. This does not mean, he said
that they cannot use competing com
ipanies' machines in other groups.
ELECTRIC.