New-York tribune., 1918-05-21
Sweeping Victory
Won by the United
Shoe Machinery Co.
Supreme Court Decides
Against Government in
Dissolution Suit

WASHINGTON, May 20.-The United
Shoe Machinery Company to-day won
its case in the Supreme Court against
the governments antitrust action.
The court not only approved the legal
organization of the shoe machinery
company, but also the much contested
"tying leases"
The governments suit. appealed to
the Supreme Court after it had been
lost in the lower courts, was ordered
dismissed. The decision applies to the
company and all its subsidiaries.
How Court Divided
The court divided four to three, with
Justices McReynolds and Brandeis not
participating, because the former as
Attorney General was concerned in the
case and the latter as private lawyer
was concerned in the litigation.
The prevailing opinion, as given by
Justice McKenna, was very brief, the
justice explaining that it suff1ced to say
that the opinion of the lower court was
upheld.
Justice Day, in dissenting opinion,
in which Justices Pitney and Clark
Joined, paid especial attention to the
leasing features and declared the tying
within the provisions of the Sherman
antitrust law.
One OF the evidences relied upon by
the government to prove an unlawful
combination was the agreement be-
tween the constituent and a circular
announcing it, The majority opinion
held these were evidence Of nothing
illegal. sMd 49,. 49,,
and agreement were not intended nor
regarded to be the avowal, as con-
tended by the government of monopoly.
achieved or to be achieved, but simply
the business expression and foresight
OF the advantages which would result
from the concentration in one mango
ment of instrumentalities which,
however different, supplement one an
other in the creation of a shoe," says
majority opinion.
,"Considering the remedy prayed,
which is extreme, even in its mildest
demands, we may ask, what Of the in
vestments that have been made dur
ing these years of extension and de-
velopment of the new company's busi-
ness? How pick out from the new
conditions the conditions Of 1899 and
restore them and the art of that time
and renabilitate the businesses that are
alleged to have ceased to exist or to
have become merged in the united COM
pany.
Dissolution Would Impair Efficiency
"How radical should the dis
integration be? Or should there be
sale in entirety and not in parts
And, if in entirety, will purchaser get
an immunity that the companies did
not have? A sale in entirety would
seem to be absolutely necessary to
preserve the works at Beverly and yet
how can that be done if there be dis
solution of the company and distribu-
tion of machines? The idea is re-
mentality should be dismantled and its
concentration and efficiency lost. It
has been testified that the purpose of
the organization was the consolidating
OF all the machines in one modern
factory and the standardizing of them.
This purpose has been attained. The
company employees there 1000 men.
There are, however, certain in
stances of acquisition which may be
said to give confirmation to the charges
OF the government to justify the de-
disaster to the offenders-in other
words, demonstrate the purpose of the
original union Of the companies. the
persistence of that purpose and the
extension Of its dominion, having the
evil consequences depicted by the gov
ernment.
"Upon these instances it would seem
unnecessary to dwell, the Companies
not being competitive at the time Of
their union in the United Company"
Dissenting Opinion
"There are provisions in the So
called leases attacked in this case"
Justice Day said in dissenting, (which
in my view are so clearly within the
condemnation of the Sherman anti
trust act that the further enforcement
of them and the making of new leases
of like character should be enjoined.
ut clearly appears from the record
that the United Shoe Machinery Com
pany dominates the trade in certain
kinds of shoe machinery furnished to
manufacturers all over the country.
which machinery is essential to the
successful prosecution of the business
of manufacturing shoes. From familiar