Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1913-05-22
Contention of Government in Suit
to Dissolve u. S. Shoe Machinery
CO.==MachineLeases of ThreeCOs.
Are Designed to Bind Together.
Manufacturer Must Use Only Machines Designated
n Leases Or Forfeit HIS Machine.

Of the patent involved in manufacture
# the machine.
After Introducing the leases used by
he United Shoe Machinery Co., James
A. Fowler, assistant to the United
States attorney general explained at
The request Of Judge Brown, that the
leases drawn up after the formation
# the trust were made more string
ont III Their provisions than the leases
drawn up by. the Goodyear, the Nc
ISay and the Consolidated companies
tcff re they combined.
Each OF these three companies, he said,
manufactured special machines and in
their leases clauses We're inserted which
Tied" those machines together.
After the formation of the combina-
ton, lie said, clauses were inserted IN
The leases which tied" all the machines
of three combining companies together
'"fhe government objects to every pro-
vision In the leases that ties one ma
chine to another said Mr.. Fowler.
Mr. Fowler then pointed out the ety.
ing clause to which the government OBJ
iceteG In lease of lasting machine.
one OF the clauses, stripped of its legal
dressing. provided that the leased ma
ehinery should not be used in the manu-
faeture of any shoes which have been
welted or stitched by the aid of any ma
chinery not held under lease from the
United Shoe Machinery Co. The metallic
fastening machine of the United Shoe
Machinery Co. are also tied with the
other machines in the same clause.
Another tying" clause in the same
lease, TO which the government oo-
jeeted provided that il at any tine
the manufacturer should fail OF
cease To use lasting machinery leased
him by the United Shoe Machinery
Company. The company at is option
might terminate by notice in writing
any or all the leases OF lasting ma
ehinery held BY the manufacturer.
In subsequent clause, any breach
or default made In the observance of
any one or more of the conditions OF
the lease by the manufacturer gives
the right to the company to terrln-
ate all leases not only of lasting ma
ehnery but of all other machinery
leased by the manufacturer from the
company.
A further Objectionable clause re-
NulItu d pay iiltHl VI "ioV iDi ShNA'
lasting machine at the termination OF
the lease. This charge was made as
partial reimbursement to the COM
pany for deterioration. installation
and instruction Of operators
Mr. Fowler also called attention Of
the court to lease called an alteriia.
tive lease, under which a manufac
turer ca making an initial payment o.
$500 for the use of the lasting machine
was freed from the provision of th'
lastirg machine to be used only II
eonnt elton with the welting, stitehin:
and metallic fastening machines of tn
United Shoe Machinery Co.
Attorney Charles +. Choate, Jr
counsel for the defence, stated that OIL
making the initial payment, the man
ufacturer was free to use the leases
machine with any other machines h
desired, provided the other machine
| did not to the same kind of work. Fo
| example. he explained, that on maxim
ar initial payment of $500, manufac
turer in leasing Il lasting machine
might use it in connection with an
weltlhg or stitching machine he &c
| sired, but he could not use it with an
other lasting machine except the Uni
ea Shoe lasting machines.
Judge Putnam said: THAT is a
right, but when it comes to tieing or
Continued on Page Twelve.)