The Providence news. (Providence [R.I.]) 1891-1906, 1894-01-02

ii. III.
copy Of statement sent out by General
Manager Melville Il. Stone OF The As
sociated Press
The original news gathering association
in this country was the New York Asso-
cieted Press. This consisted OF seven daily
Journals of the metropolis which pooled
their special kilograms and sold them TO
the outside papers. AS the country grew,
the papers west of the Allegheny noun
tains established the Western Asso-
ciated Press, and contracted, as cor
poration, with the New York Associated
Press. The New England Associated
Press followed and, later, the New York
State, the Philadelphia and the Baltimore
papers had associations of their own.
All OF these had contracts with the
New York Associated Press, by the
terms of which they exchanged news with
the New York Associated Press and paid
that organization an annual bonus. Thus
the New York Associated Press became
a great clearing house for the news OF the
world 1t was fundamental condition
OF all these associations that their al
lance should be offensive and defensive.
Exclusive franchises were given or sold,
and interchange of any kind of news with
papers not in the fold was prohibited un-
der heavy Notwithstanding
the tremendous power of the organiza-
tion, with the cheapening of telegraph
tolls, il became possible TO maintain
meagre service of news outside ofThe
Associated Press, and now and again
paper. started by some very energetic
man, succeeded in establishing itself
without The Associated Press dispatches.
The attitude OF The Associated Press
papers aided this. 1t frequently hap
pened that there was real demand for
new paper, and that The Associated Press
member refused TO yield his right OF con-
troll. Finally, enough of these papers
were established to enable them to or
ganize rival news gathering concern.
First. it was The National Associated
Press, then The American Associated
Press and finally The United Pre- .. These
CONCERNS were fossered by rival telegraph
comoanics. ALI of these rivals were
modelled upon The Associated Press.
Two Or three attempts were made TO es-
tatlish private agency, but these failed
bcoadse the newspapers OF the country
Wtre lhrmly welded to the cooperative
Hus white The Associated Press was
Str +. Z and commanding.
thc rve'a were weak and struggling. One
day tho people managing the United Press
hound that thas organization was nos self
shsslming. Then one or two wealthy
men. Ehc were members OF il, offered To
lvaJ4c the needed means il they could
be secured by stock in the corporation.
fhis Was sssented 10, and very soon tho
l.ssrbi OF the company passed practically
80 the hands OF two or three mon.
= n
:syhnd i.I dependon. associations quar-
r. Cd The West demanded voice in the
l1ih.nagemont OF the news gathering in
the East and in London. In 1852 The New
orkiAssociated Press was forced TO yield
TO this demand, and il entered into pnrt-
ncrship or pooling arrangement with The
Western Associated Press, based on re-
ccipts and d'expenses, under the control OF
q Joint executive committee consisting
Of:
Charles A. Dana Of the New York Sun,
Whitelaw Reid OF the New York Tribune
James Gordon Bennett OF the New York
Herald, representing the New York Asso-
ciated Press, and Richard Smith OF the
Cincinnati Commercial Gazette, w. n.
Haldeman OF the Louisville Couricr-Jour-
nal, representing the Western Associated
Press, and William Henry Smith became
general manager OF the combined organi-
xafjon.
Now and then il was noted that an
Associated Press paper bought the United
Press report, and gave the rival concern
news in violation of the fundamental
principle OF the Associated Press. Weak
efforts were made 10 dicipline these
offending members, but the practice
grew. In 1888 Charles A. Dana, Whitelaw
Reid, Richard Smith and w. n. Halde-
man OF the Joint executive committee
bought $4,000 each OF the stock OF the
United Press, paying 1880 each, and
contracting in the name of the Associated
Press TO exchange news with the rival.
OF course this gave tine rival standing
at once, and soon almost every Associated
Press paper found IL necessary 20 buy the
United Press report.
This transaction was disclosed in 1891,
creating great sensation. Mr.. Charles
A. Dana was forced to leave the New
York Associated Press. He was taken
into the fold OF The United Press and
made the president OF that company, and
his business manager, Laffan, was made
ifs vice president. MIR. Whitelaw Reid,
who was represented by an attorney in
his absence and who seems 10 have been
really deceived respecting the business,
retired from the joint executive commit
tee. and Richard Smith and w. n. Hslde-
man were removed from all official posi-
tions on the Associated Press. Mr.. Ben
nett had no part in this business and knew
nothing OF II until IL was exposed. The
Western Associated Press found that one
result OF this treachery was that the
United Press was pretty well intrenched
in the Western territory and was really
Living Prem iievenus Txtor ell
from the Associated Press papers for a re-
port which In all essential respects was n
duplicate OF The Associated Press. They
@rf about an effort TO buy out this United
Press business and retire the rival from
the field. The majority OF tho stock Of The
United Press was now I'm the hands OF
1>oan Of the New York Sun, Walsh Of