Evening star. [volume] (Washington, D.C.) 1854-1972, 1912-02-26
CUTTING uV|NGC0ST ONLY HALF TRUTHS
Louis D. Brandeis Makes Re-
DIV to S. w. WinsIoW.
WRITES TO SENATOR clAPP
Explains Why He Resigned as Di-
rector Of United Shoe Ma
chhery Company.

/
| The allegations Of President S. W.
Winslow Of the United Shoe Machinery
Company that Louis D. Brandeis Of
Boston, in his recent testimony before
the Senate interstate commerce COM
mittee. criticised acts of the company
which occurred while he was d.
rector and counsel in it were answered
today in q letter from Mr.. Brandeis
to Senator clapp of Minnesota. chair
man of the committee.
Mr.. Brandeis asked that his lettar be
embodied in the hearings of the COM
mittee as supplementary to the testi-
mony he gave December Il. is and
/ 16 last.
| Referring to Mr. winslow's letter to
! the committee as presenting half
truths and statements, some false and
others grossly misleading" Mr.. Bran
deis explains in detail how and why
he became convinced that the policy
and method of the United Shoe Ma
chinery Company were inconsistent
with the general welfare. and that ad-
| ditional legislation was necessary to
protect the public against the prac-
tees Of that trust
Other Circumstances Develop.
Mr.. Brandeis declared that while 1t
was true that in April. 1906. he be-
lieved in the policies and methods Of
the company as legally and morally
unobjectionable." he withdrew as a d.
rector few months later, when, he
alleges, different set of circumstances
developed.
Mr.. Brandeis says he was Of the opin-
| lon at first that there were good and bad
trusts. and that the shoe monopoly was
being operated benefcially and was pro-
noting competition AS q consequence,
| he adds, he appeared before the Massa-
chusetts legislature to oppose q bill seek
| ing to compel change in the methods
Meanwhile. relates Mr.. Brandeis. his
| attention was called by President W. H.
McElwain Of the company bearing that
name and President Charles III. Jones of
the the Commonwealth Shoe and Leather
clauses OF the leases. which seemed to
them Objectionable. At conference be-
tween these men and Mr.. Winslow, an
understanding was reached to secure
the defeat Of the pending bill and adjust
differences in amicable conferences
After these objections had been pre-
scented. Mr.. Brandeis asserts. he pursued
/ the subject and ascertained facts to some
Il
him by Mr.. Winslow and other oficials
OF the company.
Decides to Quietly Retire.
| II was not yet fully convinced. how
ever" he writes. that the shoe machin-
| cry cempany's policy was unsound or its
methods improper, but so serious doubt
had been raised in my mind as to the
soundness of their general policy, and
particularly as to the propriety OF some
of their methods, that I was unwilling to
assume responsibility for the companys
action. and having reason to believe that
Mr.. Winslow was not likely to make any
/ change in policy or methods, and having
as one Of the nineteen directors no real
undertaking to decide definitely whether
the criticism made were sound or not to
| quietly. retire without raising the ques-
tom from the board of directors, of
which l had become member. to rep
resent the large stock interests OF the
| Henderson family of Chicago.
| I rendered my resignation December
9, 1903. and It was Immediately accepted"
subsequently,. at Mr.. Winslow's re-,
/ as counsel for the company at confer
| ences with Messrs. McEIwain and Jones
concerning the leases deemed objection
| able.
| "The facts then developed" continues
Mr.. Brandeis. land the further considera-
| ton given the subject convinced me
fully that. while the policy and methods
OF the company had. on the whole. oper-
ated beneficially up to that time, they
must, II pursued eventually prove in
furious both to the community and the
| companys interest and / urged most
strenuously upon Mr.. Winslow and other
officials who PARTED pated in the confer
ence with me that these methods be
changed. that the policy of monopoly be
abandoned, and particularly that the
tying clause be eliminated from the
leases"
Was Never General Counsel"
Mr.. Brandeis says his suggestions were
refused. and he ceased to act as counsel
for the company. never having been, he
alleges. general counsel"
| For three and a half years. Mr.. Bran
deis says. he took no part in questions
relating to the policy of the company.
but that In the summer Of 1910 the situa-
| ton had entirely changed" from what
it was in 1905 through the attitude Of the
federal government In connection with
the, Standard Oil and Tobacco cases, and
| the al,esed intention of the shoe ma
chinery company Ito ignore and evade''
| the act of the Massachusetts, legislature
| prohibiting tying clauses in leases. He
was impelled to, no longer remain passive
in the shoe controversy as a consequence
of the purchase by the shoe machinery
company of the Plant system Of shoe
machinery-an act of monopoly which Mr..
Brandeis prior thereto had believed would
be looking "jail in the face because he
construed it as q fragrant violation" OF
the Sherman antitrust law.
Grounds Of Objection.
Mr.. Brandeis concluded his letter with
the explanation that his criticism OF the
Lshoe machinery company's course was
not in its contesting the constitutionality
of the Massachusetts, act of 1907. govern
ing leases, but Sin 1t SO conducting its
business as to make it practically impos-
| sible for any person to test the act for
the company added to its leases a rider
| by which 1t reserved the right to termi-
| nate the lease in thirty days with or
| without cause. which put the Massa-
chusetts manufacturer. absolutely within
it's power; he had to be good since no
substitute machinery was available to
him"
i RESIGNS PUBLICITY WORK.