The morning news. [volume] (Savannah, Ga.) 1887-1900, 1893-03-25
PRESS ASSOCIATIONS OUT
THB NEW YORK SUES TIE WEST.
ERIN FOR 100000.


Exchange of Their News-Each to
Cover Certain Sections of the Coun-
try-The Falling Ous.
NEW York, March 24.-The members Of
the New York Associated Press have sued
the Western Associated Press for about
$4,000 with interest, due on unsettled
accounts for collecting and distributing
news reports in the far west under an
agreement that expired on Jan. 1. The
agreement was made in 1882 for five years
and was renewed in 1887 for the same
period. The suit is the result of an exami-
nation of some of the books or both associa-
tions aud the preparation Of a statement
of the relations that existed between the as
sociatious, with an estimate Of the amounts
that we're withheld by the Western As
ISOLATED Press during the existence OF the
agreement The suit Is to be tried in the
supreme court Of this district, summons
having been served on Victor F. Lawson Of
the Chicago NelUs, as chairman of the
executive committee of the Western As
ISOLATED Press, when he was in New York
last month attending the meetings Of the
publishers association. Complaint has
been served on the attorneys for the defend
ant by Townsend, Dyett and Einstein, but
DATES BACK ELEVEN YEARS.
The controversy Of the New York asso-
citation with the western association ex-
tends back to July, 1882, when the exeou-
tive committee of the latter association
sent 10 President David NJ. Stone a notifi-
cation of the termination OF the CONTRACT
under which the association had collected
and distributed news reports for fifteen
years. A month later the New York asso-
citation appointed a special committee TO
confer with the western association and
drew up contract for the regulation Of
future business. In September, 1882,
the conference committees recommended the
organization of a joint board of
control that should have. for period to be
determined, entire charge Of the business
Of collecting, transmitting and distributing
news reports for the two associations, and
makes contracts that would be binding on
both.
A SUBSTITUTE OFFERED.
A substitute offered by Charles A. Dana
at meeting of the New York association,
proposed pooling arrangement between
the two associations and the appointment
of an executive committee of two members
from each association, with a chairman
chosen by the New York association to have
joint charge of the business of the
pool. No changes in rates Of charges or in
lAo sSA AAhCl Dol NOu ny hbo AcbH6CbAN6 hssO-
Citations we're to be made by the joint execu-
tive committee without the assent of both
associations. At meeting in November,
1882, the plan OF substitute was accepted
and the New York members of the Joint
executive committee were elected. The
western association approved the plan and
elected two members of the committee.
HARMONIOUS RELATIONS RENEWED.
Harmonious relations were renewed i'm
mediately and the joint executive committee
took charge of all affairs. Mr.. Dana was
chairman of the committee until the Sun
withdrew from the New York Associated
Press in January, 1892. Then james Cor
don Bennett was elected chairman. In this
suit, however, the Sun, as a member Of the
New York Associated Press during nine
years Of the period of agreement, appears
as one of the plaintiffs. The agreement
provided that the New York association
should furnish to the western asso-
citation news reports gathered from
Europe, Canada and the eastern, middle
and southern states, and that the western
association should distribute the reports, as
subscribed for, to the newspapers in the far
west that had been served formerly by the
New York association. 1t was Understood
also, that the western association should
collect news reports in the west and far
west, and furnish them to the New York
association.
FIGHT PATCHED UP.
The western association had sought ia
enter the so-called territory of the New
York association in the far west, but the
latter had objected. IL agreed, however, &c
allow the western association to assume
control Of the service during the existence
of the agreement It was not expected
that the New York association would lose
any pecuniary advantage by the agreement
hAN
take only part of the net revenue from the
clients in the far west. The boundary Of
each association had been defined.
When the agreement was made William
Henry Smith was in New York as general
manager of the Western Associated Press
but when Erastus Brooks, the general agent
OF the New York Associated Press. went &c
the legislature in January, 1888, Mr.. Smith
carried out the Instructions OF the joint ex-
eoutive committee in regard to the New
York association. Mr. Brooks resigned O
month later and Mr.. Smith remained @;
general manager Of both associations. The
books Of both associations were kept at the
headquarters in New York, and It was the
duty OK the general manager to transfer tc
the New York association the amounts thai
might be due from the western association
according to the agreement
ALLEGATIONS OF THE COMPLAINT.
1t Is alleged in the complaint that the
western association paid to New York as
ISOLATION only $53, 914 on news service and
franchise accounts in the far west. 1t ia
alleged, also, that the New York association
paid for services that should have been
paid for by the western association. Fol-
the good of the service both associations
leased a telegraph wire between various
points, and in one instance the western
association agreed to pay part of the rental.
For few years it paid its share, but in
February, 1888, the general manager
stopped paying anything on that account
to the New Y Ork association, and bills for
the amounts that were withheld is part of
the claim covered by the complaint.
CHARGE AGAINST SMITH.
The general managers Partially toward
the western association was so pronounced
that an examination Of Mr.. Smiths admin
istration was begun by the New York asso-
citation, and in September last he was asked
to explain certain transactions. His ex-
PLANTATION was not satisfactory and in No
vember he was removed by the executive
committee. The complaint alleges that the
members of the New York Associated Press
have no means Of knowing except by esti-
mating what the revenues aud expenditures
OF the Western Associated Press in the far
west have been during the past ten years.
Therefore they ask for an accounting.
After the consolidation of the New ork
Associated Press with the United Press in
December last, the latter continued the
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