Salt Lake Herald-Republican | 1913-02-09 | Page 4 | Shoe Machinery Trust Attacked Along New Lines

SHOE E MACHINERY TRUST A ATTACKED TT ACK D ALONG NEW LINES Court Asked Aked to Annul Exclusive Contract for Leasing Patented Machine T N N. N e J. J T Feb 3 Time The The t d- d 1 era eral I government made mado Its third move o against agans the time United Shoe Machinery MaChiner Ma Ila Chiner chinery company compan In a civil chU suit Butt tiled flied here toda today charging charing tho the called so-called trust with wielding an alleged monopolistic po POWer vcr and unfair unfair trade tactics to o force torce tho im Iel company compan a competitor into an unlawful contract for tor th the tho leasIng leasing leas leas- ing lug and autti sale and fixing the price ot of an Inseam trimming machine The Tho United States tes district court here W was K asked e 1 to terminate he contract tract under which the J company gave Ra the thc United company compan the exclusive e right to to shoe Iio manufacturers the trimming machine lh the patent of or which is 15 held by the h icy ley company Tho effect of or the agreement agreement agree gree ment i is I declared to be to perpetuate and extend a monopoly of ot the shoe machinery machinery ma ma- I chinery Industry In ln the tho United d Shoe Shoo Machinery l company of New Jersey Following are aro tho the defendants In la the suit United Shoe Machinery company compan Boston Bog Bbs ton tote company compan Inc Vineland N X J. J Sidney W W. W Orleans Mass Edward Ed P P. Budd Hudd Newton ewton Mass Charles Percy William Wil liam llam Bottomley Keighley and Charles of or N X J. J Unfair Practice l A Arraigned Time The governments government's petition l is a It se severe severo se- se vere vero arraignment of or the thc trusts all al- al l legeti ged unfair practices The vigorous enforcement of Its methods J is d declared clar d to have driven practically all competitors tors tor from the shoe shoe- machinery industry giving the United company control of or more than 39 9 per cent of tho the trade hadt The Tho big corporation Is IB described d db b by the time government ds d's as follows In the bill S B By misrepresentations sad and threats It deprives s Its competitors of or their cue cue- It has threatened Its Hs competitors tors that hat It will use Its enormous re resources resources ro- ro sources 8 and powers to teke away their customers Because of ot threats it has line prevented pre competing concerns from entering entering entering en en- the business It has given re rebates rebates ye- ye bates to shoe manufacturers to induce them to use uso exclusively el Its Hs machines It has discontinued th the sale to hoc shoe manufacturers manufacturer of oC all the most important tant machines and unlawfully dol devised oll olland and anti put into effect I leases a e and li M containing unreasonable and oppressive ss c pro l provisions lons which agreements shoe hoe manufacturers manufacturer are compelled to c o c o- o rt f In t. t t n with which t hi hUt to equip lip lip- their thita factories t i Tho The petition points l out that the contract contract contract con con- tract gives the United company compan exclusive ex ec- elusive right to put lut out on lease so all the Inseam machines g go o owned ned or 01 controlled or h hereafter made or 01 acquired b by the K y company The two corporations agree not to en encourage encourage encourage en- en courage an any other person or 01 corporation corpora corpora- tion to Into enter business in connac- connac Chine with I except In accor accordance ance with the terms or of orthe the time contract While hUe the K company com coin pany lan retains the tho he right to sell the time machines machines machines ma ma- chines tho the contract prohibits it from accepting pUng a price less than Th The Keighley com company pan i Is II required under the agreement to pa pay to the United Unit rapid rapi inseam ed company compan for every ln trimming machine It sell