The Clarksburg telegram. [volume] (Clarksburg, W. Va.) 1874-1926, 1911-09-21
Against the United Shoe Ma
chinery Company as Well
as Its Officers.
RESTRAINT aOF TRADE
Is Charged in the True Bills
Found by Boston Grand
Jury.

we're returned today against officers
OF the United Shoe Machinery Com
pany and one against the company it
self. The company and officers arc
charged with conducting their bust
ness in restraint of trade.
Complaints made to the Depart
ment of Justice against the United
Shoe Machinery Company-the So
called Shoe Machinery Trust
brought the attention of the govern
ment to the case.
1t is understood that the corpora
ton was charged with being mo-
nopoly in restraint of trade. Infringe
ments upon the patent laws were also
alleged, it is said.
Prompt action on the part of the
government followed the receipt OF
the complaints In April-a few
weeks after they had been filed-Wil-
liam S. Gregg, special assistant to
United States Attorney General
Wickersham began a government
probe. Special Agents George e.
Kellcher and James L. Bruff assisted
Mr.. Gregg in his search for evidence.
The result of the work OF these
government officials was that on July
26 of this year Attorney General
Wickersham ordered United States
Attorney Asa P, French and Mr.. Gregg
to present evidence obtained to the
federal grand jury that reported to-
day.
History of Concern.
The United Shoe Machinery Com
pany came into being in 1889. 1t was
founded by Sydney N. Winslow, its
present head, who learned shoe max
ing in small factory in Salem,
Mass, owned by his father, who to
secure advantages of combining al
lied interests formed a corporation
embracing the three leading compan-
les then making shoe machinery
Goodyear Sewing Machine Company,
Consolidated and McCay Lasting
Company and Mckay Shoe Machinery
Company were. consolidated. The
company was reorganized in 1906 and
subsequently auxiliary companies
sprang up in Canada, Great Britain,
France and Germany. That same year
the manufacturing of all its shoe
making machinery was concentrated
in one large factory at Beverly,
Mass. The United States Shoe Ma
chinery Company now employs 1900
hands, who turn out 10000 shoe ma
chimes yearly.
The Royalty system, by which the
corporation disposes of this machines
allows a shoe manufacturer to lease
machines, paying rentals in royalties
on every shoe made. A manufacturer
may buy machinery if he gets it from
the United Shoe Machinery Company
providing he buys his findings
such as wre nails and eyelets-fron
the company.
Royalty is Paid.
1t is claimed that the royalty paid
the United Company is about two ond
two-thirds cents per paid of shoes.
Last year the company brought suit
against Thomas G. Plant, Boston
shoe manufacturer, charging patent
infringements. Plant sold out his
shoe machinery plant and .patent
rights to the United Company after
bitter fight.
A few months later an independent
company-the Brosnahan Shoe Ma,
chinery Company of Lynn, Mass
was also purchased by the Unitet
Company.
The next important happening IL
the life of the United Shoe MachinerJ
Company was the unexpected govern
ment probe. The special grand jury
was called August l. Governmer'
agents started before serving sub
poenas that the question Of leases
would be a vital question for TIL
grand jury to consider The jur!
made an extensive investigation, sit
ting four and five days week during
the entire month of ADJUST.
State Investigates.
Announcement of the climax in tn,
governments inquiries was coinci
dent with a proposal for a state in
vestlgation by Governor Eugene n
Foss, a Democrat, who in a messag
to the legislature. which was then Ii
session, pointed out the need of {
statute to reach the alleged monopoly
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