The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1913-02-08
ITS THIRD ATTACK
The Government Files a Civil
Suit at Trenton.
Against the United Shoe Ma
chinery Company.

Trenton, n. J., Feb. S.-The federal
government made it's third antitrust
move against the United Shoe Ma
chinery company in a civil suit filed
here today charging the socalled COM
bination tn welding an alleged mon
opolistic power and using unfair trade
tactics to force the Keighley company
"a competitor-into an unlawful con-
tract for the leasing, sale and fixing
the price of an "inseam trimming ma
chine"
The United States court here was
asked to terminate the contract under
which the Keighley company gave the
United company the exclusive right to
lease to shoe manufacturers the in
seam trimming machine the patent
of which is held by the Keighley com
pany The effect of the agreement, is
declared to be ito perpetrate and ex-
tend monopoly of shoe machinery in
dustry in the United Shoe Machinery
company of New jersey
The following are the defendants to
the suit: United Shoe Machinery COM
pany, Boston; Keighley company, in
corporated, Vineland, n. J.; Sidney
Winslow, Orleans, Mass: Edward P.
Hudd. Newton, Mass; Charles Percy
KeighIey, William B. Keighley and
Charles Keighley of Vineland, N. ].
The government petition is a severe
arraignment of the trusts" alleged
forcement of it's methods is declared to
have driven practically all the COM
petitors from the shoe machinery in
dustry giving the $25,O00,000 United
Shoe Machinery company control or
more than 80 per cent of the trade.
The big corporation is described by
the government as follows in the bill:
The Governments Bill.
''By Misrepresentation and threats, it
deprives it's competitors of their GUS
toners. 1t has threatened it's COM
petitors that it will use it's enormous
resources and powers to take away
their customers. By threats it has pre-
vented competing concerns from en-
tering the business. 1t has given re-
bates to shoe manufacturers to induce
them to use exclusively it's machines.
1t has discontinued the sale to shoe
manufacturers of all the most import
ant machines and unlawfully devised
and put into effect leases and licenses
containing unreasonable and oppressive
provisions, which agreement, shoe
manufacturers are compelled to exc
cute in order to obtain machinery
with which to equip their factories
The company is accused of acquir-
ing patents for valuable inventions and
not using them for long periods. Per-
sons assigning patents to the trust are
alleged to have been required to agree
to transfer for a specified time all
their future patents or inventions of
shoe machinery.
Unfair Methods.
To destroy the competition of the
Keighley concern, the United company
is charged with employing alleged un-
fair methods to make it difficult for
it's competitor to conduct its business
successfully. The petition points out
the contract. gives the United COM
pany exclusive right to put out on
lease all the ''inseam trimming ma
chimes owned or controlled or here
after made by the Keighley company
The two corporations agree not to en-
courage any other person or corpora
ton to enter into business in connec-
ton with ''inseam trimming machines
except in accordance with the terms
of contract While the Keighley COM
pany retains the right to sell the ma
chinery the contract prohibits it from
accepting a price less than $3.50. The
Keighley company is required under
the agreement to pay 5000 to the Uni
ted company for every rapid inseam
trimming machine it sells
The petition is signed by Attorney
General Wickersham, James A. Fow-
Ter, assistant to the attorney general,
William S. Gregg, special assistant,
and John B. Vreeland, United States
attorney at Trenton. The contract was
entered into only last September. There
is pending at Boston a civil suit for
the dissolution of the Shoe Machinery
company and one count of indict-
ments returned against it's officers for
the alleged violation of the Sherman
law. The United States supreme court
recently dismissed other indictments
filed against the same defendants.
Weather Forecast for Kansas.