The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1913-02-09
United Shoe Machinery
Company Is Sued by
Government.
ACTION UNDER
SHERMAN LAW
Petition Filed by Attorney-Gen-
eral Wickersham Is Severe
Arrangement of Unfair Tao
tics Alleged to Have Been
Used in Destruction of
Competition.

trenton. N j.. February s.--rhe
Federal government made its third
antitrust move against the United
shos Machinery Company in a civil
suit, nled here to-day. charging the
so-calIed trust" with welding an
allesed monopolistic power and un-
fair trade tactics TO force the keighley
Company-a conpetitor-into an I'M
lawful contract for the leasing. sale
and fixing the price of an "inseam
trimming machine"
The United States District Court
here was asked TO terminate the con-
tract under which the Keighiey Com
rany gave the United Company the
exclusive right to lease TO shoe manu-
fariurers the "inseam trimming ma
caine' the patent OF which is held by
ire Keighiey Company The effect OF
the agreement is declared to be 10
perpetuate and extend a monopoly OF
the shoe machinery industry TO tes
United Shoe Machinery Company OF
New Jersey"
Defendants to Suit.
Following are the defendants TO the
suit: United Shoe Machinery Com
rany. Boston: Keighiey Company.
lac. Vineland. y. j.: Sidney W. Wins
lox. Orleans. Mass; Edward T. Huru'
Newton. Mass. Charles Percy keigh-
ley. william Bottomey keighiey ana
Charles keighiey. of Vinelsnd. " j.
The governments petition is Sc
ware arraignment of the "trusts' al
legged unfair practices The vigorous
enfoi cement OF its methods is declared
TO have driven practically all competi-
tors from the shoe machinery industry.
giving the s25.0o0.o00 United Company
control Of more than SO per cent OF
the trade The big corporation Is de-
ser,oed by the government as roIows
Ia the bill
b, Misrepresentation end threats
il csprives its competitors of their
customers. IL has threatened It's COM
petitors that il will use It's enormous
resources and powers 70 TAKE away
their customers. BY threats IL has
prevented competing concerns from
entering the business II has given
relates to shoe manufacturers TO IN
Cuce them TO use exclusively It's ma
chimes II has discontinued the sale
TO shoe manufacturers OF all the
most important machines, and uniaw-
<lIiy devised and put into effect leases
and licenses containing unreasonable
and oppressive provisions. which
agreements shoe manufacturers are
compelled to execute in order 70 obtain
machinery with which 10 equip their
Factories
The company is accused of acquiring
patents for valuable inventions and
MT using them FOR long periods Per
sens assigning patents to the trust
aliee cd TO have been required &c agree
to transfer for a specified time all
their future patents or invention OF
sEoe machinery.
Unfair Methods Charged.
To destroy the competition Of the
Keighley concern the United Company
is charged with employing alleged I'M
far methods to make IL difficult for
its competitors 10 conduct It's business
eucces efully.
The petition points out that the
contract gives the united company
exclusive rights 20 put out on lease
all the "inseam trimming machines
owned or controlled or hereafter made
or acquired by the keighley Company.
The two corporations agree not 70
encourage any other person or cor
pora,ioa to enter into business In con-
nection with inseam trimming ma
chimes. except In accordance with the
terms OF the contract While the
Keighley Company reta rs the right
to sell the machines. the contract pro-
h!bits IL from accepting a price less
than $3.50. The Krighley Company Is
required under the agreement 20 pay
5000 TO the United company for every
rapid insesm trimming machine i
sells
The petition IS signed By Attorney
General Wickersham. James A Fowler.
assistant to the Attorney General.
william 5. gregg, special assistant and
John 3. vreeiand. United states at
torney at Trenton.
The contract was entered Into only
last September There Is pending al
Boston a civil suit for the dissolu
ton Of the shoe machinery com2anv
and one count Of indictments returns
against It's officers for the alleged VIC
lation OF the sherman law. The United
states Supreme Court recently dis
missed other indictments fled assins;
the same dcfe ndants