Grand Rapids herald. [volume] (Grand Rapids, Mich.) 1892-1959, 1893-03-25

FOR TEN YEARS SERVICE


abent <sO.0o. with interest. die on
unsettled aecounts fpr collecting and
distributing news reports m the Tar west
under an agreement that expired on
January l. The agreement MAS made
IN lse1 for i've years. aud MAS removed
Ia 1851 for the sams period. Tho suit -
the result 81 an examination OF some OF
the books u both associations and the
preparation Of a statement q relations
that existed between the associations,
with an estimate of the amounts that
| were withheld by the Western Aseo-
! csafed Press during the existence of the
I agreement The suit u 10 be tried in
| the supreme court II this district,
/ summons having been served on Victor
| r. Lawson IL the Chicago News. as
I chairman II the executive committee 81
( the Western Associated Press. when he
was in Ne9 York last month attending
/ the meetings II the Publishers assocla-
tion. The complaint has been served on
/ the attorneys Tor the defendant by
] Townsend, Dyett 4 Enstein, but issue
has not been joined yet
History or the Controversy.
The controversy AZ the New York as
ISOLATION with the Western association
extends back 20 July, isS2. when the ex
! scutive committee IL the latter associa-
ton sent Ia President David VI. Stone a
notification If the termination az the
contract under which the association
had collected and distributed news re-
o.ts fpr fifteen years. A month later
| the New York association appointed a
special committee 10 confer with the
Western association. and drew up a con-
/ tract for the regulation az future bust
ness. I'm September. leS2, the confer
ence comukttee recommended the organ
ization 81 joint board Of control that
should have for period Ia be determined.
entire chargeof the business Of collecting.
transmitting and distributing news re-
ports for the two associations and make
contracts that would be binding on both.
/ A substitute offered by Charles A Dana
/ Al meeting IL tho New York associa-
/ ton. proposed pooling arrangement
between the two associations and the ap
/ pointment IL an executive committee OF
two members from each association.
with a chairman chosen by the New
York association. To have joint charge
II the business Of the pool. No changes
I i'm rates IL charges or IN territory served
! by the respective associations were To be
| made by the Joint executive committee
I without the assent IL both associa-
tions. At meeting in November.
ls-.. the plan Il the substitute
was reached. and the New York mem
bers 81 the joint executive committee
were elected. The Western association
approved the plan and elected two mem
bers II the committee. Harmonious re
/ laflons were renewed Immediately, and
1 the Joint executive committee took
charge II all affairs. Mr.. Dana was
j, chairman az the committee until The
| sun Withdrew from the New York Asso-
| GATED Press in January, lsS2. Then
James Gordon Bennett was elected
chairman. In this suit. however. The
Sun as a member ~ the New York Assoc
GATED Press during nine years period Ut
the agreement, figures as one Of the
plaintiffs.
Terms OF the Agreement.
The agreemen, provided that the New
I York Associated Press should furnish TO
the Western association news reports
gathered from Europe. Canada. the east
ern. middle and southern states. and
that the Western association should dis
tribute the reports. as subscribed for.
Ia newspapers in the far west that have
been served formerly by the New York
association. II was understood. also.
/ that the Western association should col
/ lert news reports IN the west and Tar
west and furnish them Ia the Ne- York
association. The Western association
| had sought 10 enter the So called terri
tory ~ the New York association in the
Tar west. bat the latter had objected.
II agreed. however. 10 allow
| the Western association % as
sumo control 81 the service
/ during the existence - the agreement.
1t Vas not expected that the New York
association would lose any pecuniary adj
vantage hv the agreement. because the
Western association agreed 20 take only
/ part n the net revenue from the
clients In the far west The boundary
| Il each ASSOCIATION had been defined
When the agreement was made VIII.
lam Henry Smith was in New York as
the general manager ~ the Western as
ISOLATION. but when Erasfus Brooks. the
general agent - the New York aseo-
ciared press. went 70 the legislature in
January. lsS3. Mr.. Smith carried out
the instructions ~ the Joint executive
committee in regard T. the New York
association Mr. Brooks resigned a
month later and Mr. Smith remained "a
Eenerai manager n both associations
The books - both associations were
kept AZ the headquarters IN New York,
and Il was the dslfy - the general man.
arcr O. transfer % the New York asset.
atson auouats that might - due from
I the Western association. according to
fhe agreement IL - alleged In the
complaint that the Western ASSOCIATION
Paid - the <e~ York association only
Ss3fIt on news service and franchise
scrount- IN the Ear west Ii 10 alleged.
also. that the Nee York association paid
/ for service that should have been PAID
- tie Western association.
Zach fes~esi Wires
For The z'xld Il the service both as~o.
ciasinus Iessei telegraph Wire between
various ppints and IN one instance tae
western association sgrrcsi - PAY part
= the rental Fer fe~ years IL PAD
ltH Share. bat IN FEBRUARY. iS~6. the
xeaersi msneger stepped psying any
hing On that zcropnt - the New York