Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1913-05-22

Boston, hay .l--An extension IF the
system which required shoe manufac-
ttfdrs - use certain groups of shoe
nGaehiner. together VAS declared by
the government, today, to have follow
ed the organization Of the United
Size Machinery Co, which tine govern
iat nj is seeking 10 dissolve in proceed
mes now pending in the United States
district court.
By presenting over - different forms
OF 1easeB in use before and after the
organization OF the company, the gov
erlmtnt aimed to show an extension
Of the Leasing system from three sep
aratc groups of machines, none of
which Wolp tied" or required To be
used together. to nine separate groups,
eight Of which were tied to enc or more
other groups.
James A. Fowler. assistant to the
United states attorney general, who
IS associated as counsel in the case, in
formed the court that the leases We're
changed after the organizatio of the
company and the provisions were made
more stringent. ."The government OBJ
iects," said he, Ito every provision
that ties. one machine TO another.
Charles +. Ghoate, Jr., counsel for
tie defence, contended that the Tie
ing" system formed a feature of the
leases before the organization Of The
Company and that whatever changes
Mere made we're designed to meet tn
growing needs of the trade, and not
il pursuance Of. Plan to effect mo-
nopoly of the siloe machinery business
in this country as charged by the gov-
eminent.
The fight over the leases of the Unit
cd Shoe Machinery Co, which Prom
ise5 to become the feature Of the gov
Garments suit II dissolve the COM
pany, started with a probe Of th2
leases used before the combination.
Harold G. Dcnham of Medford, sec
re,ary of the company, after Identity
| ing certified copies of the articles OF
| Incorporation of the company, dated,
| February. 1899, and Of the holding com
,,afly, the United Shoe Machinery Cor
! p1lation. dated, May, 1905, both OF
| which were offered as exhibits by the
| government, presented the leases used
before the organization of the COM
pany.
| New leases were drawn up by the
| three principal companies that united
10 form the alleged trust, the Good
wear shoe Machinery Co, Mckay Shoe
| Machinery Co, and the Consolidated
and Mckay Lasting Machine Co.
Witness testified that the entire bus
| mess of the Good year Co, was con-
| Quoted by leases. The issued capital
| was $3.90G,0 900. 1t manufactured Two
principal machines for attaching the
| sole to the uppers on welt shoes anu
| l6 auxiliary machines that prepared
| the leather fer the principal machines
| and finished the shoes after they were
| stitched. 1t also manufactured spe-
| ciSi lasting machine
| The Goodyear Shoe Machinery Co OF
canada conducted the business IN
Canada. The business abroad was
done through the International Good
lyear Co.
| William S. Gregg, special assistant
10 the United States attorney gen.
lerai. who is conducting the prosecu'
ltion. also probed the leases of the NC
IKay Shoe Machinery Co., and thu
consolidated. Each of the eomphnie!
Ihad several different leases, each leas'
lrelating to one or two of the primer
pal machines which were leased on
lroyaltv ranging from half cent Z
two cents pair. The lease, whicl
might be terminated at any time OF
written notice to the company, eH
tended over II years, covering the Ill