Mr. Webb. They have made aU these leases with the patent right
as the basis, not the mere right of contract, but I thinK they have
founded aU their contracts and leases upon some patented machinery;
that is my recollection; and they go behind the patented rights which
Congress has given them.
Mr. Copeland. The State has the right of police power, that is all.
Mr. McCoy. There is a Massachusetts statute on the subject. Mr.
MitcheU has called my attention to it here — an act of 1907, and an
act of 1908, and another one of 1911.
Mr. Copeland. They merely put a ''rider'' in their leases and that
takes care of that situation. I could not repeat the substance of it
exactly.
Mr. Floyd. The local statute in Massachusetts would not give you
relief in any way, so far as interstate commerce is concerned, because
the laws oi Massachusetts would only restrict them within Massa-
chusetts, and you are selling your machines or desire to sell joux
machines litrou^hdut the country, as you sell them now in foreign
countries. So, in order to get any reUef from your condition, aaid



TBITST LEGISLATION. 1045

that is of very great value to you, it must not be local; it must be by
Congress.
. ifi. CoPELAND. It must; that is true, include interstate commerce,
of course.
Mr. Floyd. After that statute was passed thev changed their leases
and practically the same condition exists as did prior to the passing
of the Massachusetts statute ?

Mr. CoPELAND. Practically so; it has not changed the conditions.
STATEMEITT OF MB. J. VAIT HOUTEIT , PBESIDEITT ST. LOUIS,
B0CK7 MOUHTAIV ft PACIFIC CO., BATOIT, V. HEX.
