Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1913-05-23
JUST ONE CASE.
CONTINUED from Page One.)

! the Sherman act 1t would be suffi-
cient, he said, if it was shown that
| one man was driven out of business.
| Before taking up the absorption OF
other companies, Charles F. Choate,
Jr., counsel fe- the United Shoe Ma
chinery Company, showed that prior
| to 1904, which was five years after the
organiZa ton of the company, there
was no requirement compelling shoe
manufacturers to use other machines
of the company with the heeling ma
chimes Of the United Company.
The reason for restricting the use
| of the heelng machines to shoes
stitched on the Goodyear stitching
| machines, he explained, was a de-
sire on the part of the company to de-
velop the use of their Goodyear ma
chimes. Prior to 1904 an initial pay
ment of $500 was required from
shoe manufacturer on leasing a Good
year machine. This required a con-
siderable outlay of capital on the part
of the small shoe manufactures and
retarded the demand for the Good
lyear machine. In order to dispense
with the initial payments, which ag-
gregated a considerable amount, and
not increase the royalties on the
Goodyear machines, the company, he
stated, decided to permit shoe manu-
Ifacturers to lease their Goodyear ma
hines either with or without the mi
| tal payments. If no initial payment
was made, the manufactures was re-
quired to use only the company's 9TH
er machines with the Goodyear ma
chimes
| The royalties which are 3, 4, and
| s cents on each pair of shoes turned
out with the aid of the Goodyear ma
chimes, remained unchanged while the
number of Goodyear shoes increased
! from 100000 pairs annually to over
sixty million or seventy million pairs
The matter of the taking over of
then resumed.
The first of the competing COM
lpanies acquired was the Goddu Sons
Metal Fastening Co. of Boston. On
March /. 1899, one month after the
United Shoe Machinery Co. had been
organized, it acquired control of a
majority of stock in the Goddu Co.
According to the terms of the con-
tract the Goddu people agree dto as
sign to the United Co. all patents AND
Inventions which it might secure dur.
ing the next 10 years and agreed fol
the same period not to injure or harm
the United Co. in its business in an,
way. A copy of the agreement wa
introduced as an exhibit without OBJ
lection of any kind from the defenc
except the explanation that the con
troll of the Goddu Co. was not secure
in pursuance of conspiracy on tn
part of the defendants to effect
monopoly as alleged by the govern
: ment
The Goddu Company has been out {
: business for long time and the trus
o tee. VINO was appointed by the coul
to wind up it's affairs, has started su
a against the United Company for dan
! ages under the Sherman act, allegir
& that it was forced out of business l
A the control exerted by the officers
t,,l the United Company over its affair
IA Mr.. Gregg then took up the agre
l. ment with Marshall Henry Pearst
in and Charles Bennion of Leceistt
rh Eng, who owned and controlled all
OF the canitsl stock of Pearson & BE
X mon, Ilt., IDdnUldNtut Vi . Va -a'iOS AZ
a. chinery at Leicester, Eng, and bo
ton. The agreement provided for 7
al organization of Z new corporation u
ne der the laws of Great Britain ana IL
he land for the purpose of taking ov
ID and carrying on the shoe machine
!. | bu3iness previously conducted by I
=. United Co. and the English compar
aa III the British Isles.
';a Sidney w. Winslow, president OF I
: United Co., and others are on
Z boarri OF managers of the new corp'
alton and according to the govei
es raeit they dictate its policy and ha
DESTROYED its competition III the m;
n kets of the United States.
e. The issued eapital OF the new co
in, | pany is sl.720,27S, of which the Uni
les Co. owns sl.0o6.392
IT Contracts giving the United Co. CO
troll IF the remaining companies W
las introduced as exhibits. When the b
n iness of individuals was acquired
individuals eptered the employ of