The New York herald., 1876-10-01
4 CHANGE OF BASE
The American Press Association Stopped at
an Hours Notice.
NEW ASSOCIATION FORMED.
Withdrawal Of the New York, Boston, Pittsburg
and Providence Papers.

Yesterday afternoon Mr. Benjamin Wood. Of the Scv
York Daily Nescs; Nj. Goodsrll, OF the New YORK
Grapaie; Sidney Dean OF the Providence Daily Star;
Robert Sevln, OF the P,usburg Leader, aud f. n.
Bacon, OF the Boston Globe notified the manager Of
the American Press Association this city that from
this date they should discontinue taking the news ri
the American Press Association Tho Manager. Mr.
william somerville seeing that without tho aid Of
these papers association could not do business End
pay its employees, discharged every man IN the office
and notified all the papers taking news that The asso-
ciat.on haa ceased to exist No sooner was ns done
than very extraordinary circumstance occurred
The employees OF the s.Arnerican Press Association"
employed by new organization called "Ths
National Press Association" which at once sent out
its circulars and offered 10 supply all the customers Of
the American Press with the same news and for the
same money they had been paying for It's use. Tho
following is the CIRCULAR
NEW YORK, Sept 3o 1870.
Tho earnest cndeavors OF nearly ali OF the directors
OF tho American Press Association increase ucil-
scribers have been Tor some lime past frustrated by
the action OF certain stockholders, who have become
possessed OF a majority OF the stock. aud who Eos
having newspapers taking the news OF the association,
have voted down all measures for strengthening the
association financially in IT'S facilities tor gathering the
news. Therefore, dcspairing VI continuing tho asso-
ciation what ITS founders intended II should be,
news gathering association ant not speculative
stock concern. the following named directors oi
the association. constituting q majority OF the
Board, have Withdrawn their newspapers from the
Amor, AN Press Associ ciation and have entered into
new associa.iun be known as The National As
sociatcd Press. whose object viii DO 10 supply the
OF the world to any and all newspapers desiring
1t throughout the United States aud Canadas. Com
pcle have been made with the telegraph
companies, cable companies and agents for iul and
rciabe service from all parts Of the world. The
National Associated Press viii com mcncc operations
sunday, the lst OF October.
William B. Somervie, hitherto General Manager VI
the American Press Association has been engaged ~
Manager. We ask the cooperation OF nil newspapers
interested IN free trade III news.
BENJAMIN WOOD, New York DAILY NeUs
J. GOODSELL, New York Daily GrapAic.
SIDNEY DEAN, providence tR II Daily Star.
ROBERT r. NEVlN. Pittsburg Daily Leader
Il. II. BACON, Boston Daily Globe
Unexplained, this whole proceeding is puzzle hut
1t will be made clear when the motive Is shown. Nr.
Robert Johuston. the publ sher Of the Evening NG
this city, is the principal sockholdcr the American
Press ASSOCIATION, and was It's treasurer for many
years He has tor several years past been gradually
buying In stock OF the company rntil hc held 1876
shares OF AGO. the remainder Of the shares being
distributed between eight ten papers
belonging TO the association. ~ the annual
meetings he managed to secure q proxy of
ten shares, and thus controlled tho association.
The charter OF tho company was received in Phiadel
phia and tho last annual meeting be held In this
tion could tho business OF It's annual meet
ings in New York An adjournment was had to Phila-
dclphia and under the laws there, that shareholder
could be director and at the iime
Mr.. Johnston ousIcd from the position OF treas.
urer, worth 81 500 per annum From that time there
has been continual warfare In tho association Bcnja-
Wood desired 10 be President other people wantod
10 hold office, but nothing could be effected and the
business gradually declined.
FINANCIAL CONDITION OF TIKI ASSOCIATION
Mr.. r. Johnston claims that whom be was ehs
treasurer the profits OF the concern were $3.50 pet
week. but under the present agemenI the receipts
had so run down that tho business was transacted at
debt, and cnl was made Tor q meeting In Phfia-
dephla for the purpose of raising money to meet ths
current expenses This meeting was held last week
All the directors were present. and proposition
made to increase the capal stock TO 500 shares Ar.
rangements were made TO place the stock SO that
Mail, voted II down. to the great disgust
Of the General Manager and the stockholders
II Is stated by the stockholders that Mr. Johnson
then offered and adopted resolution stopping SUIT
begun by the association against him for money due.
This exaspcrated tho minority to such degree that
they held private meeting and resolved to form
other association. The Manager OF the Americas
Press Association, who sided with tho minority,
quietly went to work and discharged ali the agents
throughout the country and the European correspond
and then engaged thom for the National Press
soclation. Offices we're hired In the basement
OF the Atlantic and Pacific Telegraph Company's
Office. No. LAB Broadway, aud " morrow shoy
will begin operations SO quiet had tho affair been
slightest idea OF what was going Mr. Johnston, oi
the Nail did not know that the American Press Asso-
c.aton was about TO stop until alter four O'Clock yos-
crday afternoon and then he found himself the
OF the majority OF the stock and Office without en-
poycs and press ASSOCIATION without paper to take
news agent 10 send H.
THE CoUP D'ErAT
entirely successful OF this sharp piece o.
business transacted for the purpose OF WORKING
Mr.. Johnston out or the association and leaving him
powerless A HERALD reporter visited this gentleman
last evening He was greatly excited and stated that
n q ndatlt rhoaN
him and the creditors Of tho association out
Of their money In regard to his beng
come security Tor the rent OF the Offices and that they
uhe associatonl owed him several hundred dollars.
They had been running tho business down; the Man
ager was conspiratcr and did not know how to xel
news, and since he lJohnston had ceased d.
rector they had run several thousand dollars debt
WHAT THE TREASURER
The treasurer OF the association, NJ A. Schwojler.
OF thiscy, stated that tho oi the were
equal 10 the liabilities and that he thought care
the concern would be able 10 pay up ts agents ant
all having clans He intended 10 remain with the old
company and settle up its affairs. Had Mr. Johnston
consented 10 the increase VI tho capital stock he
said no trouble would have accrued and this strategy
would not have besn resorted TO. All the
papers-about eighty-throukhout the United States
had agreed 70 take news from tho new company,
and he anticipated an Improvement in the BUSINESS
The telegraph companies had also agreed TO shin their
contracts to the new concern, thus leaving the old
ASSOCIATION completely stranded. As Mr. Wood and
Mr. Goodsel and the publishers Of the outoI-,own
papers are all stockholders tho organza
they will not lose anything, stock 10 the oi
their claim being issued BY The new company
Sir. Johnston says he shall institute legal proceed.
nrs against the General Manager and stockholders
and endeavor to obtain injunction 10 prevent tho
new concern using the machinery OF the old. 'lIs
PLAIN case OF robbery by conspiracy, he says and no
thinks the Court will sustain him, but for tho present
"The American Press Association Is dead" I"
HISTORY OF THE ORGANIZATION
The American Press organization incorporated
In $780, under the laws OF tho State OF Pennsyivana
and was built up on ho business OF Mr. John Hasson
teegraphic correspondent oi out-oi-town paperS
Mr. Hasson gave over his business TO the corporation
on the understanding that he to DO The general
agent For Two years II dragged out very feeble ex
istencc, its only support IN this c'ty beng the S,
which, being Ia a Gourshng condition At that
time, kept the American Press Associatos
alive. Later Il supplied the Evening NasL
the Daily Nelrs Al times the Vunsss, whiN
every new paper that Wa started IN this city
took its The majority OF It's papers. however,
weak and did pay. Tho losses from iailurcs
were heavy. and the concern In do6t 10 the tec-
graph companies TO the exlcnt Of $4,000. In The
latter par Z. 1878 there great Improvement