'i ittterttts is
permitted
to appear in the readin?
Adams-Great-American-Fraud
Cheney's own words, in which he explained his scheme to his fellow-members of the Proprietary Association of America.
The quotation marks alone (and the comment within the parentheses) are mine.
The remainder is the language of Mr.
Cheney himself:
itfr. Cheney's Plan.
"We have had a good deal of difficulty in the last few years with the different legislatures of the different states. . . . I believe I have, a plan whereby we will have no difficulty whatever with these people. I have used it in my business for two years and know it is a practical thing. . . . I, inside of the last two years, have made contracts with between fifteen and sixteen thousand newspapers, and never had but one man refuse to sign the contract, and by saying to him that I could not sign a contract without this clause in it he readily signed it. My point is merely to shift the responsibility. We to-day have the responsibility on our shoulders". As you all know, there is hardly a year but we have had a lobbyist in the different state legislatures--one year in New York, one year in New Jersey, and so on. " (Read that frank confession twice--note the bland matter-of-factness of it. ) "There has been a constant fear that something would come up, so I had this clause in my contract added. This is what I have in every contract I make: 'It is hereby agreed that, should your state, or the United States Government, pass any law that would interfere with or restrict the sale of proprietary medicines, this contract shall become void. ' . . . In the state of Illinois a few years ago they wanted to assess me three hundred dollars. I thought I had a better plan than this, so I wrote to about forty papers and merely said: 'Please look at your contract with me and take note, that if this law passes you and I must stop doing business, and my contracts cease. ' The next week every one of them had an article, and Mr. Man had to go. . . . I read this to Dr. Pierce some days ago, and he Avas very much taken up with it. I have carried this through and know it is a success. I
know the papers will accept it. Here is a thing that costs us nothing. We are guaranteed against the $75,000 loss for nothing. It throws the responsibility on the newspapers. . . . I have my contracts printed and I have this printed in red type, right square across the contract, so there can be absolutely no mistake, and the newspaper man can not say to me, *I did not see it. ' He did see it and knows what he is doing. It seems to me it is a point worth every man's attention. . . . I think this is pretty near a sure thing. "
I should like to ask the newspaper owners and editors of America what^ they think of that scheme. I believe that the newspapers, when they signed each individual contract, were not aware that they were being dragooned into an elaborately thought-out scheme to make every news- paper in the United States, from the greatest metropolitan daily to the
7
7. . . ^l IQCK^' . Dollars per year.
. :
? 131
J. C. Ayer Company Manufacturing Chemists
Lowell, Mass.
Wt }\xreby agrtt, for the sum of
payahle in quarUrluA^istalments as earned, upon receipt of hill, to laser! ia i\\t . /A^M. OJiq. ^
poblisbed at
advertisement to average inches.
week in the weekly issue,-- . ^^^^-^^JimerT'each insertion to be at top of
y adjoining pure reading down one side and under- ttam of _ pagf; apart from other advertising.
_ ^ate of. ,
in tlu county of
the advertisements of i. C. Ayer Company, of Lowell, Mass. , during the
from date of first insertion
matter, arrangement, and date of publication, according to plates and copy furnished by them, the space and insertions to be as specified below, viz.
//^ ^ inc)ies. . . . . ,^^^2'i\L/. -. each
. . . times, each insertion to be at top of ^page, wholly adjoining pure reading down one side and under- . c^r:r:? rr. '*r<:>Trrr. page, apart from, other advertising (as paper
~ALSO / / adve. -tisement to average /. /. . . . :.
--<rfci-X</:a^.
neath, or at bottom, of.
week in the weekly 'ssue, . \-JL. . <^.
is made up on
We also agree to notify J. C. Ayer Coopaoy of first insertion of these advertisements, to mail
one copy of every issue of the paper a,3 published to J. C. Ayer Company, Lowell, Mass. , during term of this contract, and to proThptly supply missing papers upon request.
Change in make-up bf paper or consolidation with another paper entitles J. C. Ay<< Company to select new position or cancel contract, as preferred by them.
First. -- It isa^ecdln case any lawor laws are enacted, either State or national, harmful to the intcrents of the J. C. Ayer Co. , that this contract may be cancelled by them from date of such enactment, and the Insertions mnde paid for pro rata with the contract price.
Second. -- It is agreed tliat the J. C. Ayer Co. may cancel this contract, pro rata, in case advertisementij arepublished in this paper in which their products are offered, with a view lo substitution, or other harmful tnotii-e ; also, in case any matter otherwise detrimental to the J. C. Ayer Co. 's interests is permitted to appear to the reading columns, or elsewhere, in this paper.
GuaranteedCirculation X. '^
DO NOT SIGN.
Rstum to J. &. AYER CO. for their accsptaDCQ.
Form of Contract (A).
THIS IS THE FORM OF CONTRACT--SEE (A) (B) (C)--THAT MUZZLES THE PRESS OF THE UNITED STATES.
The gist of the contract lies in the clause which is marked with brackets, to the effect that the agreement is voidable, in case any matter detrimental to the advertiser's interests "is permitted to appear in the reading columns, or elsewhere", in this paper. " This clause, in the same words, appears in all three of these -patent-medicine advertising contracts. The documents repro- duced here were gathered from three different newspapers in widely separated parts of the United States. The name of the paper in each case has been suppressed in order to shield the publisher from the displeasure of the patent medicine combination. How much publishers are compelled to fear this displeasure is exemplifled by the experience of the Cleveland Press, from whose columns ij;i8,000 worth of advertising was withdrawn within forty-eight
hours.
).
ling twelve months, I W>i^l' ill in
? 132
remotest country weekly, an active, energetic, self-interested lobbyist for the patent-medicine association. If the newspapers knew how they were being used as cat's-paws, I believe they would resent it. Certianly the patent-medicine association itself feared this, and has kept this plan of Mr. Cheney's a careful ^secret. In this same meeting of the Proprietary Association of America, just after Mr. Cheney had made the speech quoted above, and which it was being resolved that every other patent-
Zowat,Mass. , kAa<L^. . 2L, 190^. _ ? (LaJt^^^^J. . ,
pvMishenof . Wi? :<<i:>>:! ;<fe^_
_ \yfip^. : . . . :. _.
D. earSir: Weherebyagreetopay. . . lX^. ^jfxA^:. . ^:U^! k? ^. . .
pvory I ^^ numthtj for one year's advertising i^th>> S<^. ^ciaa^cOo-^-\J\:ZOiruf/. . aspercontractsignedbyyou,asfollows:
Weekly--Ave d. ^inches62insertions,firstadvt. OR-. -^iZ^&? 3^>(>ca^ page, top of page with reading matter 5<<^ side0 and following, or
first advt. in col. and with reading jnatter io^ sidef, changed every issue,szr. Un&s, vnsMilmM, ^. ustntmg \srfirstfoU'
loieiing-reaidingn^sMer^ onscpamiicpageo}<<hebngedgwj'jy ittteriki>>, ami a Jitonthly notice.
itonlhlig JTatfeflfl t<< be-tstes^oS *n th>> mwJ WMb-4tf-<<>>eih mtmUn im the <ww type tnui mtwwHcity ^-ihe ^apor, mpart /Mw tthw jftiitm ani ,e. iMrtti$mi)mlt, Matter to be fumUhed by O. I. Bood Co. trnftrt tnetHiti, and fumUked to <<<< regutarty a$ th>> only pvm4 that the adveTH*om>>>>t U totay imt<<rl<<d.
It <s further agreed that the paymtmia ? koO ht <<m4<< yroMpfly on fvlfimeMt <<f tmtract, and that any faUure to ig^ advertSeememU <u epecified >>haU ba jlNjerfj node tip, or a eum pro r*ta noy be diecomtted at time of pai^mamt; oIm Mac WWWi %>> not to be gieen for ituertioii; if oar advertteemtnt U plmeei in ? iiitfi' iiiW'ifHi iifFi I iiniiiittiii fijiiiiiiiiiitiiiji w. III! fii II iiiijij riiiiiniif. (/ iiiifdiiii Miiii mmatBtShed notice eolttmn; oleoif tnake^p t^paper U changed, the advertleetneta wVUbtgixenpoMiononai^igeaeMpteMetoHe; and the pUttee for diaploj/ed adver- MeeaeaC*tk<Mberetimedohe>>eoBedfor. Additioneidieplafepeoectproret^
UMBmWIQfn ineertione of dteptoji required to tuetpaee epedfted.
Please instruct your foreman, that otir oontracA may be oorresU^ and faith-
PMjf executed; alto see that our name it properly entered on yo^r mailing litt, ' <Aot08maypromptlyreceivethepaper*upontheflritendoSevbeequent<iwer- MnUh <<<<d thereby ineure the proper entry of advertieement* to yottr eredii . -on
mr books.
It is agreed that the O. I. Bood Oe. gmv cancel this comtreet, fro rata, in east edetri
ttaement$ art publithed <>> this paper in fekieh tkttr vndittts are offtrtd, vith a tt*>> to eftbBtilutioH, or other hartnfitl motive; also, (>> ease ana matter otheriBtsc iitrimtntal to the O. I. Bood Co.
'i ittterttts is permitted to appear in the readin? columns, or elttwhere. in this paper.
In ease national or slate le^taHon shall be enacted adveroe to (he vummfielnre or sale at proprielam medicine, then thie eontraet shall, ot the option of the advertiser, be caneelfeSi 909. ment to be made pro rata for number of insertione aiten^
Trusting that our business relaMons may prove "mutually pleas' ant and profitaite, we take pleasure in subscribing ourselves.
Very truly yeurs, -.
Form of Contract (B).
medicine man should put the same clause in his contract, the venerable Dr. Humphreys, oldest and wasest of the guild, arose and said: "Will it not be now just as well to act on this, each and every one for himself, instead of putting this on record? . . . I think the idea is a good one, but really don't think it had better go in our proceedings. " And another fellow nostrum-maker, seeing instantly the necessity of secrecy, said : "I am heartily in accord with Dr. Humphreys. The suggestion is a good one.
? 133
but wlien we come to put in our puljlic proceedings, and state that we have adopted such a resolution, I -want to say that the legislators are just as sharp as the newspaper men. . . . As a consequence, this will decrease the weight of the press comments. Some of the papers, also, who would not come in, v. ould publish something about it in the way of get-
'
This contract is the backbone of the scheme. The further details the
Wi hereby agree to insert the advertisements of the Munyons H. H.
ting square
Memedy Co. in our
the next ^. . months and thereofter, same rate and conditions until
forbid by either party, according to copy and instructions furnished by the Munyons H. H. Remedy Co.
Position top of col. and next to reading matter. To be first medical advertisement in pater and not to be placed' in crotch or fold of paper. This can be avoided by having a column of reading or advertising between.
At. the rateof.
Payments to be made monthly quarterly oh the basis of the amount of space used.
All advertisements to be set in regular reading type of paper when Hesired, Change in copy to be made without extra charge.
This agreement is not to be invalidated by insertions in wrong loca- tions or omissions, as improper insertions or lack-of insertions are not to be counted or paidfor, the publisher guaranteeing the full number of cor- rect insertions with proper positions.
All editions each day of papers containing the jidvertisement of the Munyon's H. H. Remedy Co. to be sent to them during the life of this con- tract, and to supply missing copies upon request.
Change in make-up of paper or consolidation with another paper entitles the Munyons H. H. Remedy Co. to select newposition at above rate' or cancel contract, us preferred by them.
First --It is agreed in case any law or laws are enacted, either State cr National, harmful to the interests of the Munyon's H. H. Remedy Co. that this contract may be canceled by them from date of such enact-
ment, and the insertions madepaidforpro rata with the contractprice. Second--// is agreed that the Munyon's H. H. Remedy Co, may can-
cel this contract pro rata in case advertisements are published in this - paper in which their products are offered', with a view to substitution or other harmful motive j also, in case any matter otherwise detrimental to the Munyon's If. H. Remedy Co. 's interests is permitted to appear in the
reading colu7nns, or elsewhere in this paper. Guaranteed average circulation for past twelve months
Acceptedfor _
By _ . . . -. Form of Contract (C).
organization of the bureau to carry it into effect--that, too, has been kept carefully concealed from the generally unthinking newspapers, who are all unconsciously mere individual cogs in the patent-medicine lobbying ma- chine. At one of the meetings of the association, Dr. E,. V. Pierce of Buffalo arose and said (I quote him verbatim) : . . . "I would move you that the report of the Committee on Legislation be made a special order to be taken up immediately . . . that it be considenred in execu-
_ ^^,v,-^^^ y^^
? 134
CAN MR. CHENEY RECONCILE THESE STATEMENTS?
Letter addressed to Mr. William Allen White, Editor of the Ga- zette, Emporia, Kan.
BY FRANK J. CHENEY. Dear Sir:
I have read with a great deal of interest, to-day, an article in Collier's illustrating therein the contract between your paper and
ourselves. [See p. 13
Mr. S. Hopkins Adams endeav- believe I have a plan whereby we
ored very hard (as I understand) will have no difficulty whatever
to find me, but I am sorry to say with these people. I haA^e used it
as a safety guard to protect him-
self, in case any State did pass a
law prohibiting the sale of our ders. . . . There has been goods.
His argument surely falls flat
when he takes into consideration would come up, so I had this the conduct of the North Dakota clause in my contract added. Legislature, because every news-
paper in that State that we adver-
tise in had contracts containing tract I make: 'It is hereby agreed that clause. Why we should be that should your State, or the compelled to pay for from one to
two years' advertising or more, in
a State where we could not sell any law that would interfere
our goods, is more than I can un- with or restrict the sale of pro- derstand. As before stated, it is
merely a precautionary paragraph prietary medicines, this contract
to meet conditions such as now shall become void. ' . . . In the
Extract from a speech delivered before the Proprietary Associa- tion of America.
BY FRANK J. CHENEY.
"We have had a good deal of difficulty in the last few years with the different legislatures of
-- the different states. Editor. ^
. . .
I
that I was not at home. I really
believe that I could have explained in my business for two years, and that clause of the contract to his I know it is a practical thing. entire satisfaction, and thereby
saved him the humiliation of
making an erratic statement. years, have made contracts with
This is the first intimation between fifteen and sixteen thou- that I have ever had that that
clause was put into the contract sand newspapers, and never had
to control the Press in any way, but one man refuse to sign the or the editorial columns of the contract, and by saying to him
Press. IbelievethatifMr. Adams
was making contracts now, and that I could not sign a contract
making three-year contracts, the without this clause in it he read-
same as we are, taking into con- ily signed it. My point is merely sideration the conditions of the
different legislatures, he would be to shift the r^ponsibility. We
desirous of this same paragraph to-day have the responsibility of
. . . I, insideofthelasttwo
the whole matter upon our shoul-
constant fear that something
This is what I have in every con-
United States Government, pass
? tising.
135
exist in North Dakota. We Avere State of Illinois a few years ago
compelled to withdraw from that they wanted to assess me three State because we would not pub-
lish our formula, and^ therefore, hundred dollars. I thought I under this contract, we are not had a better plan than this, so compelled to continue our adver-
I wrote to about forty papery To illustrate: There are 739 and merely said: 'Please look at publications in your State--619 your contract with me and take
of these are dailies and weeklies. note that if this law passes you
Out of this number we are adver-
tising in over 500, at an annual
expenditure of $8,000 per year and my contracts cease. ' The
(estimated). We make a three- next week every one of them had year contract with all of them, an article. . . . I have carried and, therefore, our liabilities in
your State are $24,000, providing, this through and know it is a suc- of course, all these contracts were cess, I know the papers will ac- made at the same date. Should
these contracts all be made this cept it. Here is a thing that costs fall and your State should pass a IS nothing. We are guaranteed
law this winter (three months
later) prohibiting the sale of our
goods, there would be virtually a ing: It throws the responsibility loss to us of $24,000. Therefore, on the newspapers.
for a business precaution to guard
against just such conditions, we
add the red paragraph referred to I have this printed in red type, in Collier's.
I make this statement to you,
as I am credited with being the
originator of the paragraph, and take, and the newspaper man can I believe that I am justified in not say to me, *I did not see it. '
adding this paragraph to our He did see it and knows what he contract, not for the purpose of
controlling the Press, but, as be- is doing. It seems to me it is a fore stated, as a business precau- point worth every man's attention.
tion which any man should take who expects to pay his bills.
, . . I think this is pretty near
Will you kindly give me your a sure thing. " version of the situation? Await-
ing an early reply, I am,
Sincerely yours, FRANKJ. CHENEY.
tive session, and that every person not a member of the organization be asked to retire, so that it may be read and considered in executive ses- sion. There are matters and suggestions in reference to our future action, and measures to be taken which are advised therein, that we would not wish to have published broadcast over the country for very good reasons. "
Now what were the "matters and suggestions" which Dr. Pierce ''would not wish to have published broadcast over the country for very good reasons 1"
and I must stop doing business,
against the $75,000 loss for noth-
I have my contracts printed and
right square across the contract, so there can be absolutely no mis-
. . .
? 136
Valuable Newspaper Aid,
Dr. Pierce's son, Dr. V. Mott Pierce, was chairman of the Committee on Legislation. He was the author of the "matters and suggestions'' which must be considered in the dark. "Never before," said he, "in the history of the Proprietary Association were there so many bills in different state legislatures that were vital to our interests. This was due, we think, to an effort on the part of different state boards of health, who have of late years held national meetings, to make an organized effort to establish what are known as ^pure . food laws. ' " Then the younger Pierce stated explicitly the agency responsible for the defeat of this public health legislation: "We must not forget to place the honor where due for our uniform success in defeating class legislation directed against our legitimate pursuits. The American Newspaper Publishers' Association has rendered us valued aid through their secretary's office in New York, and we can hardly overestimate the power brought to bear at Washington by individual newspapers. " . . . (On another occasion. Dr. Pierce, speaking of two bills in the Illinois Legislature, said: "Two things oper- ated to bring these bills to the danger line. In the first place, the Chicago papers were almost wholly without influence in the Legislature. . . . Had it not been for the active co-operation of the state outside of Chicago there is absolute certainty that the bill would have passed. . . . I think that a great many members do not appreciate the power that we can bring to bear on legislation through the press,") But this power, in young Dr. Pierce's opinion, must be organized and systematized. "If it is not presumptuous on the part of your chairman," he said modestly,
"to outline a policy which experience seems to dictate for the future, it would be briefly as follows"--^liere the younger Pierce explains the "mat- ters and suggestions" which must not be "published broadcast over the country. " The first was "the organization of a Legislative Bureau, with its offices in New York or Chicago. Second, a secretary, to be appointed hj the Chairman of the Committee on Legislation, who will receive a stated salary, sufficiently large to be in keeping with such person's ability, and to compensate him for the giving of all his time to this work. " "The benefits of such a working bureau to the Proprietary Association," said Dr. Pierce, "can be foreseen : First, a systematic plan to acquire early knowledge of pending or threatened legislation could be taken up. In the past we have relied too much on newspaper managers to acquaint us of such bills coming up. . , , Another plan would be to have the regulation formula bill, for instance, introduced by some friendly legisla- tor, and have it referred to his own commitee, where he could hold it until all danger of such another bill being introduced were over, and the
Legislature had adjourned. "
Little wonder Dr. Pierce wanted a secret session to cover up the frank naivete of his son, which he did not "wish to have published broadcast over the country, for very good reasons. "
In discussing this plan for a legislative bureau, another member told \vhgit in his estimation was needed. "The trouble," said he--I quote from the minutes--"the trouble we will have in attempting to buy legislation-- supposing we should attempt it--is that we will never know what we are buying until we get through. We may have paid the wrong man, and the bill is passed and we are out. It is not a safe proposition, if we consider it legitimate, which we do not. "
? ^*i'**i^'i^tt^iisa. 4*iiv-. >>. -
337
THE TELKORAM 18 THE OFFICIAL NIWS'APKR OF THE CITY or RAU CLAItt
Ptrauaazs or
9^ <Stygrast, Bails anB >>mi-Wethldi
Bailg s^ BnUg Jfrw ^rtst
Senator Jazses K. Noble,
Senate Chamber, State Capitol,
fladiEOn, Vis. KyJ>ear Senator:-
April 26, 1905.
ITe are receirlng dally, from many of our Patent Medicine patrons, consiunlcatlcns that are very urgent in asking ub to do our utmost to prevail tjpon you to ? withdraw your rsTised till, -srtiich, if it is passed, will probably he the means of depriving The Telegram (C)f a very literal patronage it now receives through advertising con- tracts aade with Proprietary Jfedlcine Iiouses.
If the writer thought for one Eonient, that the passage of your medicine 1)111, was somsthinf the people really warjted, or were at all anxious that such a lair be enacted, he would give you his per- sonal word that no effort on the part of The Telegram would be in evidence to opfcse the n^asurHj but on the other hand it is our firm belief that the people of Wisconsin DO rOT CAHX 0i;3 WKIT, whether
the bill becomes a law, or not; and under such circuaistaroes, why you should find it agreeable tc proceed along any line that would create unpleasant results for The Teleg'-ar. -.
itfr. Cheney's Plan.
"We have had a good deal of difficulty in the last few years with the different legislatures of the different states. . . . I believe I have, a plan whereby we will have no difficulty whatever with these people. I have used it in my business for two years and know it is a practical thing. . . . I, inside of the last two years, have made contracts with between fifteen and sixteen thousand newspapers, and never had but one man refuse to sign the contract, and by saying to him that I could not sign a contract without this clause in it he readily signed it. My point is merely to shift the responsibility. We to-day have the responsibility on our shoulders". As you all know, there is hardly a year but we have had a lobbyist in the different state legislatures--one year in New York, one year in New Jersey, and so on. " (Read that frank confession twice--note the bland matter-of-factness of it. ) "There has been a constant fear that something would come up, so I had this clause in my contract added. This is what I have in every contract I make: 'It is hereby agreed that, should your state, or the United States Government, pass any law that would interfere with or restrict the sale of proprietary medicines, this contract shall become void. ' . . . In the state of Illinois a few years ago they wanted to assess me three hundred dollars. I thought I had a better plan than this, so I wrote to about forty papers and merely said: 'Please look at your contract with me and take note, that if this law passes you and I must stop doing business, and my contracts cease. ' The next week every one of them had an article, and Mr. Man had to go. . . . I read this to Dr. Pierce some days ago, and he Avas very much taken up with it. I have carried this through and know it is a success. I
know the papers will accept it. Here is a thing that costs us nothing. We are guaranteed against the $75,000 loss for nothing. It throws the responsibility on the newspapers. . . . I have my contracts printed and I have this printed in red type, right square across the contract, so there can be absolutely no mistake, and the newspaper man can not say to me, *I did not see it. ' He did see it and knows what he is doing. It seems to me it is a point worth every man's attention. . . . I think this is pretty near a sure thing. "
I should like to ask the newspaper owners and editors of America what^ they think of that scheme. I believe that the newspapers, when they signed each individual contract, were not aware that they were being dragooned into an elaborately thought-out scheme to make every news- paper in the United States, from the greatest metropolitan daily to the
7
7. . . ^l IQCK^' . Dollars per year.
. :
? 131
J. C. Ayer Company Manufacturing Chemists
Lowell, Mass.
Wt }\xreby agrtt, for the sum of
payahle in quarUrluA^istalments as earned, upon receipt of hill, to laser! ia i\\t . /A^M. OJiq. ^
poblisbed at
advertisement to average inches.
week in the weekly issue,-- . ^^^^-^^JimerT'each insertion to be at top of
y adjoining pure reading down one side and under- ttam of _ pagf; apart from other advertising.
_ ^ate of. ,
in tlu county of
the advertisements of i. C. Ayer Company, of Lowell, Mass. , during the
from date of first insertion
matter, arrangement, and date of publication, according to plates and copy furnished by them, the space and insertions to be as specified below, viz.
//^ ^ inc)ies. . . . . ,^^^2'i\L/. -. each
. . . times, each insertion to be at top of ^page, wholly adjoining pure reading down one side and under- . c^r:r:? rr. '*r<:>Trrr. page, apart from, other advertising (as paper
~ALSO / / adve. -tisement to average /. /. . . . :.
--<rfci-X</:a^.
neath, or at bottom, of.
week in the weekly 'ssue, . \-JL. . <^.
is made up on
We also agree to notify J. C. Ayer Coopaoy of first insertion of these advertisements, to mail
one copy of every issue of the paper a,3 published to J. C. Ayer Company, Lowell, Mass. , during term of this contract, and to proThptly supply missing papers upon request.
Change in make-up bf paper or consolidation with another paper entitles J. C. Ay<< Company to select new position or cancel contract, as preferred by them.
First. -- It isa^ecdln case any lawor laws are enacted, either State or national, harmful to the intcrents of the J. C. Ayer Co. , that this contract may be cancelled by them from date of such enactment, and the Insertions mnde paid for pro rata with the contract price.
Second. -- It is agreed tliat the J. C. Ayer Co. may cancel this contract, pro rata, in case advertisementij arepublished in this paper in which their products are offered, with a view lo substitution, or other harmful tnotii-e ; also, in case any matter otherwise detrimental to the J. C. Ayer Co. 's interests is permitted to appear to the reading columns, or elsewhere, in this paper.
GuaranteedCirculation X. '^
DO NOT SIGN.
Rstum to J. &. AYER CO. for their accsptaDCQ.
Form of Contract (A).
THIS IS THE FORM OF CONTRACT--SEE (A) (B) (C)--THAT MUZZLES THE PRESS OF THE UNITED STATES.
The gist of the contract lies in the clause which is marked with brackets, to the effect that the agreement is voidable, in case any matter detrimental to the advertiser's interests "is permitted to appear in the reading columns, or elsewhere", in this paper. " This clause, in the same words, appears in all three of these -patent-medicine advertising contracts. The documents repro- duced here were gathered from three different newspapers in widely separated parts of the United States. The name of the paper in each case has been suppressed in order to shield the publisher from the displeasure of the patent medicine combination. How much publishers are compelled to fear this displeasure is exemplifled by the experience of the Cleveland Press, from whose columns ij;i8,000 worth of advertising was withdrawn within forty-eight
hours.
).
ling twelve months, I W>i^l' ill in
? 132
remotest country weekly, an active, energetic, self-interested lobbyist for the patent-medicine association. If the newspapers knew how they were being used as cat's-paws, I believe they would resent it. Certianly the patent-medicine association itself feared this, and has kept this plan of Mr. Cheney's a careful ^secret. In this same meeting of the Proprietary Association of America, just after Mr. Cheney had made the speech quoted above, and which it was being resolved that every other patent-
Zowat,Mass. , kAa<L^. . 2L, 190^. _ ? (LaJt^^^^J. . ,
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pvory I ^^ numthtj for one year's advertising i^th>> S<^. ^ciaa^cOo-^-\J\:ZOiruf/. . aspercontractsignedbyyou,asfollows:
Weekly--Ave d. ^inches62insertions,firstadvt. OR-. -^iZ^&? 3^>(>ca^ page, top of page with reading matter 5<<^ side0 and following, or
first advt. in col. and with reading jnatter io^ sidef, changed every issue,szr. Un&s, vnsMilmM, ^. ustntmg \srfirstfoU'
loieiing-reaidingn^sMer^ onscpamiicpageo}<<hebngedgwj'jy ittteriki>>, ami a Jitonthly notice.
itonlhlig JTatfeflfl t<< be-tstes^oS *n th>> mwJ WMb-4tf-<<>>eih mtmUn im the <ww type tnui mtwwHcity ^-ihe ^apor, mpart /Mw tthw jftiitm ani ,e. iMrtti$mi)mlt, Matter to be fumUhed by O. I. Bood Co. trnftrt tnetHiti, and fumUked to <<<< regutarty a$ th>> only pvm4 that the adveTH*om>>>>t U totay imt<<rl<<d.
It <s further agreed that the paymtmia ? koO ht <<m4<< yroMpfly on fvlfimeMt <<f tmtract, and that any faUure to ig^ advertSeememU <u epecified >>haU ba jlNjerfj node tip, or a eum pro r*ta noy be diecomtted at time of pai^mamt; oIm Mac WWWi %>> not to be gieen for ituertioii; if oar advertteemtnt U plmeei in ? iiitfi' iiiW'ifHi iifFi I iiniiiittiii fijiiiiiiiiiitiiiji w. III! fii II iiiijij riiiiiniif. (/ iiiifdiiii Miiii mmatBtShed notice eolttmn; oleoif tnake^p t^paper U changed, the advertleetneta wVUbtgixenpoMiononai^igeaeMpteMetoHe; and the pUttee for diaploj/ed adver- MeeaeaC*tk<Mberetimedohe>>eoBedfor. Additioneidieplafepeoectproret^
UMBmWIQfn ineertione of dteptoji required to tuetpaee epedfted.
Please instruct your foreman, that otir oontracA may be oorresU^ and faith-
PMjf executed; alto see that our name it properly entered on yo^r mailing litt, ' <Aot08maypromptlyreceivethepaper*upontheflritendoSevbeequent<iwer- MnUh <<<<d thereby ineure the proper entry of advertieement* to yottr eredii . -on
mr books.
It is agreed that the O. I. Bood Oe. gmv cancel this comtreet, fro rata, in east edetri
ttaement$ art publithed <>> this paper in fekieh tkttr vndittts are offtrtd, vith a tt*>> to eftbBtilutioH, or other hartnfitl motive; also, (>> ease ana matter otheriBtsc iitrimtntal to the O. I. Bood Co.
'i ittterttts is permitted to appear in the readin? columns, or elttwhere. in this paper.
In ease national or slate le^taHon shall be enacted adveroe to (he vummfielnre or sale at proprielam medicine, then thie eontraet shall, ot the option of the advertiser, be caneelfeSi 909. ment to be made pro rata for number of insertione aiten^
Trusting that our business relaMons may prove "mutually pleas' ant and profitaite, we take pleasure in subscribing ourselves.
Very truly yeurs, -.
Form of Contract (B).
medicine man should put the same clause in his contract, the venerable Dr. Humphreys, oldest and wasest of the guild, arose and said: "Will it not be now just as well to act on this, each and every one for himself, instead of putting this on record? . . . I think the idea is a good one, but really don't think it had better go in our proceedings. " And another fellow nostrum-maker, seeing instantly the necessity of secrecy, said : "I am heartily in accord with Dr. Humphreys. The suggestion is a good one.
? 133
but wlien we come to put in our puljlic proceedings, and state that we have adopted such a resolution, I -want to say that the legislators are just as sharp as the newspaper men. . . . As a consequence, this will decrease the weight of the press comments. Some of the papers, also, who would not come in, v. ould publish something about it in the way of get-
'
This contract is the backbone of the scheme. The further details the
Wi hereby agree to insert the advertisements of the Munyons H. H.
ting square
Memedy Co. in our
the next ^. . months and thereofter, same rate and conditions until
forbid by either party, according to copy and instructions furnished by the Munyons H. H. Remedy Co.
Position top of col. and next to reading matter. To be first medical advertisement in pater and not to be placed' in crotch or fold of paper. This can be avoided by having a column of reading or advertising between.
At. the rateof.
Payments to be made monthly quarterly oh the basis of the amount of space used.
All advertisements to be set in regular reading type of paper when Hesired, Change in copy to be made without extra charge.
This agreement is not to be invalidated by insertions in wrong loca- tions or omissions, as improper insertions or lack-of insertions are not to be counted or paidfor, the publisher guaranteeing the full number of cor- rect insertions with proper positions.
All editions each day of papers containing the jidvertisement of the Munyon's H. H. Remedy Co. to be sent to them during the life of this con- tract, and to supply missing copies upon request.
Change in make-up of paper or consolidation with another paper entitles the Munyons H. H. Remedy Co. to select newposition at above rate' or cancel contract, us preferred by them.
First --It is agreed in case any law or laws are enacted, either State cr National, harmful to the interests of the Munyon's H. H. Remedy Co. that this contract may be canceled by them from date of such enact-
ment, and the insertions madepaidforpro rata with the contractprice. Second--// is agreed that the Munyon's H. H. Remedy Co, may can-
cel this contract pro rata in case advertisements are published in this - paper in which their products are offered', with a view to substitution or other harmful motive j also, in case any matter otherwise detrimental to the Munyon's If. H. Remedy Co. 's interests is permitted to appear in the
reading colu7nns, or elsewhere in this paper. Guaranteed average circulation for past twelve months
Acceptedfor _
By _ . . . -. Form of Contract (C).
organization of the bureau to carry it into effect--that, too, has been kept carefully concealed from the generally unthinking newspapers, who are all unconsciously mere individual cogs in the patent-medicine lobbying ma- chine. At one of the meetings of the association, Dr. E,. V. Pierce of Buffalo arose and said (I quote him verbatim) : . . . "I would move you that the report of the Committee on Legislation be made a special order to be taken up immediately . . . that it be considenred in execu-
_ ^^,v,-^^^ y^^
? 134
CAN MR. CHENEY RECONCILE THESE STATEMENTS?
Letter addressed to Mr. William Allen White, Editor of the Ga- zette, Emporia, Kan.
BY FRANK J. CHENEY. Dear Sir:
I have read with a great deal of interest, to-day, an article in Collier's illustrating therein the contract between your paper and
ourselves. [See p. 13
Mr. S. Hopkins Adams endeav- believe I have a plan whereby we
ored very hard (as I understand) will have no difficulty whatever
to find me, but I am sorry to say with these people. I haA^e used it
as a safety guard to protect him-
self, in case any State did pass a
law prohibiting the sale of our ders. . . . There has been goods.
His argument surely falls flat
when he takes into consideration would come up, so I had this the conduct of the North Dakota clause in my contract added. Legislature, because every news-
paper in that State that we adver-
tise in had contracts containing tract I make: 'It is hereby agreed that clause. Why we should be that should your State, or the compelled to pay for from one to
two years' advertising or more, in
a State where we could not sell any law that would interfere
our goods, is more than I can un- with or restrict the sale of pro- derstand. As before stated, it is
merely a precautionary paragraph prietary medicines, this contract
to meet conditions such as now shall become void. ' . . . In the
Extract from a speech delivered before the Proprietary Associa- tion of America.
BY FRANK J. CHENEY.
"We have had a good deal of difficulty in the last few years with the different legislatures of
-- the different states. Editor. ^
. . .
I
that I was not at home. I really
believe that I could have explained in my business for two years, and that clause of the contract to his I know it is a practical thing. entire satisfaction, and thereby
saved him the humiliation of
making an erratic statement. years, have made contracts with
This is the first intimation between fifteen and sixteen thou- that I have ever had that that
clause was put into the contract sand newspapers, and never had
to control the Press in any way, but one man refuse to sign the or the editorial columns of the contract, and by saying to him
Press. IbelievethatifMr. Adams
was making contracts now, and that I could not sign a contract
making three-year contracts, the without this clause in it he read-
same as we are, taking into con- ily signed it. My point is merely sideration the conditions of the
different legislatures, he would be to shift the r^ponsibility. We
desirous of this same paragraph to-day have the responsibility of
. . . I, insideofthelasttwo
the whole matter upon our shoul-
constant fear that something
This is what I have in every con-
United States Government, pass
? tising.
135
exist in North Dakota. We Avere State of Illinois a few years ago
compelled to withdraw from that they wanted to assess me three State because we would not pub-
lish our formula, and^ therefore, hundred dollars. I thought I under this contract, we are not had a better plan than this, so compelled to continue our adver-
I wrote to about forty papery To illustrate: There are 739 and merely said: 'Please look at publications in your State--619 your contract with me and take
of these are dailies and weeklies. note that if this law passes you
Out of this number we are adver-
tising in over 500, at an annual
expenditure of $8,000 per year and my contracts cease. ' The
(estimated). We make a three- next week every one of them had year contract with all of them, an article. . . . I have carried and, therefore, our liabilities in
your State are $24,000, providing, this through and know it is a suc- of course, all these contracts were cess, I know the papers will ac- made at the same date. Should
these contracts all be made this cept it. Here is a thing that costs fall and your State should pass a IS nothing. We are guaranteed
law this winter (three months
later) prohibiting the sale of our
goods, there would be virtually a ing: It throws the responsibility loss to us of $24,000. Therefore, on the newspapers.
for a business precaution to guard
against just such conditions, we
add the red paragraph referred to I have this printed in red type, in Collier's.
I make this statement to you,
as I am credited with being the
originator of the paragraph, and take, and the newspaper man can I believe that I am justified in not say to me, *I did not see it. '
adding this paragraph to our He did see it and knows what he contract, not for the purpose of
controlling the Press, but, as be- is doing. It seems to me it is a fore stated, as a business precau- point worth every man's attention.
tion which any man should take who expects to pay his bills.
, . . I think this is pretty near
Will you kindly give me your a sure thing. " version of the situation? Await-
ing an early reply, I am,
Sincerely yours, FRANKJ. CHENEY.
tive session, and that every person not a member of the organization be asked to retire, so that it may be read and considered in executive ses- sion. There are matters and suggestions in reference to our future action, and measures to be taken which are advised therein, that we would not wish to have published broadcast over the country for very good reasons. "
Now what were the "matters and suggestions" which Dr. Pierce ''would not wish to have published broadcast over the country for very good reasons 1"
and I must stop doing business,
against the $75,000 loss for noth-
I have my contracts printed and
right square across the contract, so there can be absolutely no mis-
. . .
? 136
Valuable Newspaper Aid,
Dr. Pierce's son, Dr. V. Mott Pierce, was chairman of the Committee on Legislation. He was the author of the "matters and suggestions'' which must be considered in the dark. "Never before," said he, "in the history of the Proprietary Association were there so many bills in different state legislatures that were vital to our interests. This was due, we think, to an effort on the part of different state boards of health, who have of late years held national meetings, to make an organized effort to establish what are known as ^pure . food laws. ' " Then the younger Pierce stated explicitly the agency responsible for the defeat of this public health legislation: "We must not forget to place the honor where due for our uniform success in defeating class legislation directed against our legitimate pursuits. The American Newspaper Publishers' Association has rendered us valued aid through their secretary's office in New York, and we can hardly overestimate the power brought to bear at Washington by individual newspapers. " . . . (On another occasion. Dr. Pierce, speaking of two bills in the Illinois Legislature, said: "Two things oper- ated to bring these bills to the danger line. In the first place, the Chicago papers were almost wholly without influence in the Legislature. . . . Had it not been for the active co-operation of the state outside of Chicago there is absolute certainty that the bill would have passed. . . . I think that a great many members do not appreciate the power that we can bring to bear on legislation through the press,") But this power, in young Dr. Pierce's opinion, must be organized and systematized. "If it is not presumptuous on the part of your chairman," he said modestly,
"to outline a policy which experience seems to dictate for the future, it would be briefly as follows"--^liere the younger Pierce explains the "mat- ters and suggestions" which must not be "published broadcast over the country. " The first was "the organization of a Legislative Bureau, with its offices in New York or Chicago. Second, a secretary, to be appointed hj the Chairman of the Committee on Legislation, who will receive a stated salary, sufficiently large to be in keeping with such person's ability, and to compensate him for the giving of all his time to this work. " "The benefits of such a working bureau to the Proprietary Association," said Dr. Pierce, "can be foreseen : First, a systematic plan to acquire early knowledge of pending or threatened legislation could be taken up. In the past we have relied too much on newspaper managers to acquaint us of such bills coming up. . , , Another plan would be to have the regulation formula bill, for instance, introduced by some friendly legisla- tor, and have it referred to his own commitee, where he could hold it until all danger of such another bill being introduced were over, and the
Legislature had adjourned. "
Little wonder Dr. Pierce wanted a secret session to cover up the frank naivete of his son, which he did not "wish to have published broadcast over the country, for very good reasons. "
In discussing this plan for a legislative bureau, another member told \vhgit in his estimation was needed. "The trouble," said he--I quote from the minutes--"the trouble we will have in attempting to buy legislation-- supposing we should attempt it--is that we will never know what we are buying until we get through. We may have paid the wrong man, and the bill is passed and we are out. It is not a safe proposition, if we consider it legitimate, which we do not. "
? ^*i'**i^'i^tt^iisa. 4*iiv-. >>. -
337
THE TELKORAM 18 THE OFFICIAL NIWS'APKR OF THE CITY or RAU CLAItt
Ptrauaazs or
9^ <Stygrast, Bails anB >>mi-Wethldi
Bailg s^ BnUg Jfrw ^rtst
Senator Jazses K. Noble,
Senate Chamber, State Capitol,
fladiEOn, Vis. KyJ>ear Senator:-
April 26, 1905.
ITe are receirlng dally, from many of our Patent Medicine patrons, consiunlcatlcns that are very urgent in asking ub to do our utmost to prevail tjpon you to ? withdraw your rsTised till, -srtiich, if it is passed, will probably he the means of depriving The Telegram (C)f a very literal patronage it now receives through advertising con- tracts aade with Proprietary Jfedlcine Iiouses.
If the writer thought for one Eonient, that the passage of your medicine 1)111, was somsthinf the people really warjted, or were at all anxious that such a lair be enacted, he would give you his per- sonal word that no effort on the part of The Telegram would be in evidence to opfcse the n^asurHj but on the other hand it is our firm belief that the people of Wisconsin DO rOT CAHX 0i;3 WKIT, whether
the bill becomes a law, or not; and under such circuaistaroes, why you should find it agreeable tc proceed along any line that would create unpleasant results for The Teleg'-ar. -.
