In 1948, Philip Sydney Morse started a distributing company in the United States under his namesake that delivered Japanese sewing machines to retailers, dealers and agents. Morse patented designs of machines, citing companies, such as Sears Roebuck and Necchi.
The importing company was Mercury, for which Morse was treasurer. The country of origin was either covered by a motor or the label was removed prior to the machines being distributed. Also, the companies used the word "manufacturer" in their advertisements, when in fact neither company owned any manufacturing property, which mislead the public to believe the machines were domestic products. A complaint was filed, and on Jan. 4, 1955, it was found that both companies were violating the Federal Trade Commission Act.