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The sun. [volume] (New York [N.Y.]) 1833-1916, July 09, 1910, Image 12

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y
IS THE UNITED SHOE MACHINERY COMPANY COMPANYAN
AN ILLEGAL TRUST AND MONOPOLY MONOPOLYARE
I
ARE ITS SOCALLED SO CALLED LEASES VALID AND BINDING BINDINGOR
OR ILLEGAL AND UNENFORCEABLE UNENFORCEABLEEMINENT
EMINENT LAWYERS WHO HAVE EXAMINED THE SUBJECTHAVE SUBJECT SUBJECTHAVE SUBJECTI SUBJECTHAVE
I
HAVE GIVEN OPINIONS ON THESE QUESTIONS QUESTIONSOpinion QUESTIONSOpinion QUESTIONSOpinions
Opinion of Meitrt Gaston Snow Saltonstall Salton tall Legal Advisors Adv lcrl of Endicott Johnson Company Shoe Manufacturer and andCertain andCertain an anCertain
Certain Financial FinlUlciallntereatain InlereaU Interestsin in No Way Connected with or Consulted by Mr Plant or Hie InterestsIMtn Interests InterestsIMessrs Interestl1nd
IMessrs > lndicott 1nd lolt Johnson A Cn 70 Lincoln Street Boston Mass MassDear MassI a aI
I
Dear Sirs Sirse SirsWe
We e have II a 1 examined your contracts > with the hr United Shoe Maclunerx Mt adlint CUlllpan hoot ompanx anv and are ol opinion that these th contracts cU1tr lCI are re in violation violationof
of the I hl Sherman Act CI so 0 called that r t thev 1 hl are trl illegal and void and that if vnu IHI choose choose choo l to give up the I ht shoe h machinery which you youhnldunder hold under them themno t thr thrnn htmno m
no action can 3n he siKVesxfnllv ucc fully maintained against you vou hv reason Ha On thereof IherLoft
t r t > t C a 4 a I a 1 4 k kVours
Yours very cr truly trulyIIASTON trulxCASTON trulASTON
ASTON SNOW SAIIONSIAI SAITONSTIII SAITONSTAIIOpinion I IOpinion
i I Opinion of Sherman L Whipple Esq EsqIn
J In relation to the xilulnx 1111111 or ti mxaluliix 111 tluhty IILlII of the socalled t 111ct1 leaes of the United Shoe Machinery Cuqlpany > ompanx I heg to say sav ay that in my OpinionI16y opinion opiniontlfex opil1lonllre
I16y tlfex are If invalid and unenforceable unenforceableSome
Some ul1le war ago at t Mr r Plant s request > 1 I examined with considerable care several different forms of these leases Ica es together with the cases casesinterpreting cas casllIlrprlin casesunerpretinc
interpreting the Sherman hcrm ct which had h d been decided up to that time I was then of the opinion that the leases leas were invalid Since 11enI then
I luxe ha i e lolfoxxed the divisions dlCI lOn interpreting that Act and more recently have again reviewed reviL wed the business methods and leases of the United Unitedompanx
I Icontpany Compan ompanx I haw found nothing in in anv any case decided or in anv facts revealed L by my investigations to change or modify my my original opinion opinionS
S V i t 4 10 A i A i iI 4 4I
I here are ixxo grounds rJund upon cither clh r of xvhicli it is i is clear that these leases are illegal and unenforceableI unenforceable
I First irst because be au the Imted Uron Company as a organized is i itself a combination in restraint r traint of trade existing tc tinB in xiMmon vi n of law 11 Ihe IlbsoUt leases
1 are theretore invalid 1n llad because they t11 are agreements Jfft ireements menh whICh hich the I It I rated Company requires rtqulre its It lessees Iti U to sign Ign in earrytlg carryi cafT i into effect dT 1 the scheme schemeor heme hemeIIr
or plan for building nuildll1 up and maintaining n1111IIlIIn Us illegal Illegalmo monopoly monopolxi poly polyI
i second because apart from the illegal constitution and orsamation of the United Company as > a trust tru the socalled so < alled leases le l in In themselves themselvestend
tend to restrain re lrain and tnonopolie rnOnnPOlilttradl trade and commerce cClmml t and combined cnm inld with other method directed to the Ih same purpose they have ha created andnt and andnnx lI1dnt
nnx nt iMam 111 u tain Jill in illepal ti monopolv m I shoe hOt machiiurv
a 1 1trv >
Very erv truly I rul yours xourSMIRMAN yoursSIIFRMAN ourlSIIFRMAN > >
SIIFRMAN I VIIIIMMI VIIIPPI1Opinion VIIIIMMIOpinion VIII PPI1 PPI1Opinion
Opinion of George J Carr Esq of New York City CityI
I hose h l examined with WII h especial Cl > are the t 111 various terms nrm und I think I all the I he forms ol leases ca cs of shoe sh machinerx signed bx hy the I hl United Lnitedshoe lnihdhot Unitedhoe
shoe hot Machmcrx Company ompanx and shoe IIO manufacturers > > throughout thrnu hout the he L mted St IUlS ite > I have given full consideration to the fact that these th leases leasesor i ior
or agieements I IClmlnts grant licenses under dlr various letters le lers patent and ana that some of the machines which arc the subject of the th agreements contain m mxentions in invention
xentions of which the L United Shoe Sh Machinery Company has ha111 an exclusive l patent monopoly In relation to and ana as a affecting the validity of these theseagreements thcsagreel11nl
agreements s I haw examined with 11 h great care care the I he xarious lanous IflOIl decisions dIS1 II1S of the t h Courts Hurts url interpreting the I She Sherman an AntiTrust Act so called calledcspcciallx calledcspcciallxi c led esf7erially esf7eriallythose p i lll lllIho
those Iho e decisions dealing dllhl1 with the rights of patentee I i AJI A AM MOI ni 01 1 i I in HI OPINION OII IO HAT I HA I PHFSF AGREEMENTS ARE ILLEGAL 1LLFGI llLFGM NITER tNOFRiinr l L NITERI nF R RIItTCl
iinr IItTCl I H T CINO ci M 1 > iilxi nt I Nosh ora or iF Fill TFHMS I riRMsni OF ANY o NVOIIHF NVOIIHFIt > oY nl 1 HI I IFASFS CAN AN lr iNFORCFD AGAINST ANY LESSEE LESShEthose LESSEEIt
1 A 1 t tIt
It is t interesting rntere Img tn t note that the Gnirt curt in the I Ill Bourse of its il opinion in in trw case Jl > t Rlount Mfq Mf C Co t v Yale TOn Mfg Co C itXj Fed 5 5said I i iJIJ
said 111 I IIs
is Is it possible thai the manufacturers lr + ot shoe machmcrx machinery tI are without the scope of the Sher Sherman Sherman Sherman ¬
man act ci for the reason that their machines < generally embody one or more patented improvements mprovcmmt The e reasons for forenctinj forncti fortoctit
enctinj ncti + g the Sherman la last fern quite as J applicable to articles of thi character as a to articles having hain no connection with ith patents patentsVery pattnttI
A r s < 4 tI o a 4 4Very
Very trv truly ours yourGEORGE 0 voursGEORGf
GEORGE J CARR
Opinion of Means Brandeis Dunbar Nutter Counsel for Charles H Jones President of the Commonwealth CommonwealthShoe
Shoe Leather Company CompanyEntirely Entirely Unconnected with the Plant Interests Interestsi
i I lor I or the Ih reasons set It forth t rth xe e reach the following foIlO II1 conclusions conclusionsRs onduslonF inclustonFIRM
F FIRM Rs I The I he United L shoe hot Machmerx t ompanx is is I 1 combination lIrn mat IOn in restraint rl1 r lOt of trade and all contracts made bx by it as d essential essentialparts
I parts of the combination or to carry out the purpose l of monopolizing and perpetuating pt ptlu3tin its monopoly of the shoe shoemachinery shoemachinery shoemachinery
machinery trade an unlawful The leases Ita used are re uch contracts and arc unaUIIS unlawful unlawfulslOl
IS slOl LCO Nli II rile leases JCJ are in themselves thcnt ehec aside from the I I unlawful combinations embodied in in the United Shoe Sh Machinery Company ComoanvrC
I i restraints rC lraint on interstate trade within the II herman ct cthe ctrill etriIIRlt
rill riIIRlt R II I the he fact act that I the I he United Shie Machines adl l1er Companx leas as a formed to deal in patented p lnlcd articles does not prevent the illegality illeodhtyof
of f the I ht combination omal Ion nor does the I h fact that the t Ia leases Il are of patented machines render them legal le 1I since since the purpose of ofthe o oI ofthe
the I combination omhinttl ion and nd the provisions prO1 < lon of f the Iw leases are HI deMpned dt < Irntd to create a 1 monopoly monoro beyond that I conferred bv h the > Patent
I aw a aH
1 H t J R Hili R 11 I I I r Ihr h jo lease Ia being rill mx 111 lad xmi 1111 i annul be held hd liable lor nr failure to 0 perform performHas ptrformIfa performleas
Has the United Shoe Machinery Company in Reality the Boasted Patent PatentMonopoly PatentMonopoly PatentMonopoly
Monopoly Which It Claims ClaimsAre
Are the Wonder Worker machines infringements or do they in fact embody design and methods in shoe making ma ing soFar so sofar sofar
far advanced beyond existing methods as to render the patents of the United Company largely obsolete andineffective and andineffective andineffective
ineffective ineffectiveI
R RI n l 1Hf III OPINIONS I NSIR IH In IfIFSI s jl 1 s tif1ONti I > Ns ltl < > IMININI PMINF PATF > IlT COLNSH COLNSHOpinion COLNSFII
Opinion of Robert P Hains Esq Formerly Principal Examiner United States Patent Office OfficeIn
I In mx 111 ludcmcnt Iud menl the 11l patents granted granl tn u Mr 15 < Plant fully and umprchensixelx protect prr IlC1 his machines and give to him the exclusive t right richtto ri ht htto
to tothurmanulaklun tothurmanulaklunof heir I manufacture mJIIlIII I Uf sale all and u lice e as contemplated bx hy Statute SI al Ull while on the I other hand his hl machines are free from the charge of infrinccment infrinccmentof nt ntof I
of anv an existing cxi < ting patents on whICh an iniunction injunction might nll hl be h asked h hYours I Iour
Yours our very try truly
ROBERT P MAINS HAINSOpinictn MAINSOpinion IN INOpinictn
Opinictn of Frederick L Emery Esq of Messrs Emery Booth Janney Varney Patent Attorneys AttorneysI
I Y D Y 1 1I r rI >
I xxith entire ontidence y that the I mted Shoe Machinery Company will never by
repeat any
patent I suit suitcombination suit
combination of f patent suits UII be able to obtain anx In iniunction or injunctions mimctions that will restrain the use of Mr Plants machinery in substantially substantiallythe or orLOmII101licn orcnnthniticn I II
the I Ill form in in i xvhich it now exists existsIn tlshIn existsIn
I In my opinion Mr Plants machines embody designs and methods in shoe making to 0 far adra advanced ad need beyondexisting beyond beyondexisting
existing methods as to render the patents of the United Company largely lar < < ely obsolete and ineffective ineffectiveMr
ted m i of his own inventions He has more than 600 United States and
Mr I5 r Plant is i also fully protected prolt < respect foreign patents manv many of them thrmof themof
llicm llicmVery
of broad rnttl scope fully covering his entire line of new and improved machinerye machinery
e y w t w o
Very truly yoursFREDERICK yours
FREDERICK I EMERY FMERYOpinion EMERYOpinion EMERYOpinion
Opinion of Livingston Gifford Esq of Gifford Bull Patent Counsel New Ne York City CityThomas CityThomas CityThomas
Thomas G i Plant FsqHear Esq 1sqDear EsqDtar
Dear Sir SirI
A r I r e A e Y r 4 e
y yI
I understand that Mr Emery has personally explained c < pll1ntd the pre precautions aulionl that were ere taken to avoid infringement in
machines nf any outstanding Jllt t andll1 patents and nd partlularly1 ho < 1 IIf th the United Shoe Machinery Company The modus nlodusoperaadiwasthis o ranJ wasahis Vhtn Vhtnrr Vheneyer vour vourexisting vourmachinl yourmachines
eyer rr a qurctinn tJllt < linn of o inftin infringement tmtnl o1t > < e in the constructIOn of our machines Mr Emery I ery came to New York with all his papers and he and I dis
cussed d rh the mailer lXhaUlivd exhaustively anti III evert ltr rate Jopied o ttd Ihi p1serva1 1U1UI r policy o lcy of being t1n on t the t safe side bv eliminating from your machines all
features of rfsemhlanct lo existing rlstin patents excepting such as were clearly justified ded by the th prior act a t as shown by expired patents I understand understandthat
that I this discussion cliclI ion covered machines for all branches of your work and therefore I basing my judgment upon the preliminary work of Mr
I Fmcrv men I believe that nil oj 0 Iht macfrnifi a submitted to me arc Ira front 11 infringement 1mgo
I 4 4 I e r Y 4 I
a aYours
Yours ver very ery cl trul truly I
TIIM LIVINGSTON STON GIFFORD
iri iriGLEN IIItVlllN IIItVlllNEVERY
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