Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1913-05-21

W, Lawrence y. \. 1silOutS ~
Co, New Bedford; Marley Button Manu-
featuring Co., Portsmouth. n. a.. Mari
horo Awl and Needle Co, Marlboro: %
seph Z. Curtis, Everett: Fred II. Perry,
West Medford; William r.. Arnold and
the Arnold Machine and Supply Co,
North Athineton; Carver Cotton Gin Co,
East BIidgewater, and the ELLIS LAGER
Co., HaVerhili.
'f.y acquiring the business Of these
individuals partnerships and corpora
tons the United shoe Machinery Co, ;"
said William s. Gregg, special assist
ant to United States Attorney General
NeReynolds, in opening the nrosecu-
ton, secured control of SO per cent.
OF the shoe machinery business which
relates TO the fastening CT the sole to
the uppers on boots and shoes
The fastening of the sole to the up
per IS the principal operation in max
ing shoes by machinery and The three
leading manufacturers Of machinery
fer this process COMBINED to form the
United shoe Machinery Co., in 1899,
with j capital Of S25.o00.0 900. The Unit
Cd Shoe Machinery Corporation, the
holding company. Was not formed I'M
III 1900 Its capital IS s50.00o,0o3. The
principal acts complained Of in addi-
ton IL the ACQUISITION of the IS indi-
yiGuals, partnerships and corporations
are the organization Gf the parent
es,nipanY and the holding company
and Ire leases or license agreements.
Tie United Shoe .t.aehinery Co. does
al IF its business on leases and the
contest ever the se-called "tieins
elausca in the leases is expected TO be
a feature Of the trial.
Government Attorney Gregg stated
tlfat il makes no objection to the COM
pany leasing it's entire pr 1duo', but 1T
cfair1s that the stieing" clauses com :
neIs shoe ranufae tnrers to t1se all or
none ef the machines grouped together
by the company.
IT also have very strong impressions
against the tieing clause" said Judge
Putnam, although ] can conceive that
the leases are beneficial to shoe manu-
faeturers, especially new and small
er ones
Attorney Chcate, in opening the de-
fence denied that the leases compelled
shoe manufacturers to use the COM
Dany's machines exclusively II they
lispd one of them. He said the gov
eminent was in error on that point.
He explained that the welting and
stitching machines, which attach the
soles to the uppers, and the lasting
machines, were the principal machines
in the. shoe industry. A number OF
auxiliary machines work in connec-
ton with these. The auxiliary ma
chimes. he explained, were furnished
free of. charge with the principal ma
chimes, and for that reason the com
pany in the "tieing' clauses of the
leases limited the use of its auxiliary
machines to the principal machines
with which they are grouped.
ANY shoe factory he said can lease
welting, stitching or lasting ma
chine. but if he wanted the auxiliary
machinery he would have to agree tt
use them only in connection with tht
companys other machines
Hy an initial payment it was pos
| sible, he said, for the shoe manufac
turere to free himself from the exae
tons of the tieing clause. In the cas'
| of the metal fastening machines
which are furnished free to manufac
turers on agreeing to purchase th'
metal exclusively from the United Ma
lchinery Co, at rates slightly in excess
cf the market prices. the initial pay
Iinont required to free the manufac'
turers from the restriction OF the tie
ling clause is $500 TO $500.
1.-THE only revenue the company re
ceiyes under the leases" he said. lis
Continued on Page Twelve.)