The Houston daily post. [volume] (Houston, Tex.) 1886-1903, 1898-05-29
WHY IT IS NOT A TRUST.
A.soc,ated Press Not a Combination
to Regulate Prices.
FREDERICK LERMANN'S STRONG TALK
:. response to the Toast, dis the As
ISOLATED Press IA Trunt"
Sound Reasoning.

one Of the toasts at the annual banquet
~ the Associated Press in Chicago, ON
,hs night Of the 18th instant, was lis the
associated Press a Trust?" 1t was re-
.ronaed to by Mr. Frederick Lehman of
AZ. Louis, who said:
"Mr. Toastmaster and Gentlemen of the
Associated Press--l am very glad to meet
~ith my client, gathered as he is from tn
Mkes and the guif, from the Western and
tho Eastern frontiers of the country, In
this central city OF American civilizat on,
and am glad to know that he is not only
associated but 'socable' as well.
"When | received the invitation from
Mr.. Stone to be here | recognized in il all
Illustration of his habitual foresight and
sagaedy. An English solicitor. having oc-
rasion TO dine with his client, after the
case had been tried, had such recollections
Of the event that he entered 1t as the larg
est item in his bill OF costs, To dining
With you, after verdict OF the jury against
us pounds. Mr.. Stone has taken the
precaution to have us dine together before
the case is tried, SO that there will be no
possibility OF an adverse fortune inter
fering with the good cheer of the occasion.
SIS the Associated Press trust?
Voices. No, no) 1t was suggested today
that 1t had some OF the characteristics OF
that institution, and that the represent
atiyes Of American newspapers when they
met together, laughed in each others faces,
as did the old Roman augurs in their sacrl-
does II after four hundred years of the
use of the printers art there is no higher
sincerity and candor in its chief ministers
than in the pagan priesthood, it were bet
ter that the art had never been discovered
what is trust?-not in the technical
sense, but in the broad and popular sense
OF the word? 1t is an association, com
bination, arrangement or understanding
between the producers or the dealers In
commodity for the purpose of enhancing
Its price to the public. The pretext in every
instance has been some Improvement OF
Internal economy which shall reduce the
cost of production, and that being true 1t
follows that the trust is beneficial at once
to its promoters and to the public And il
that were true the public has intelligence
enough to perceive 1t and they would be-
heye it. But they do not believe it, and
for the simple reason that it is not true.
'The trust finds itself relieved from the
necessity of improving it's internal econo-
mics, because it has power over the mar
ket; It has control of prices, and thus Sc
cures its profits and does not have occasion
to work for the improvements that tend
TO reduction of cost. And while in many
instances reductions in prices have fol
lowed the formation Of trust. they have
always been in spite of 1t and never be.
cause of it. (Applause) There never
would be any objection on the part of the
public to competitors in any line of bust
ness engaging with each other in respect
OF anything in which, though competitors,
they have yet common interest Suppose
the manufacturers OF Buffalo united to
utilize the water power of Niagara falls.
Nobody would characterize that as a trust.
Suppose the merchants of Chicago COM
ftor t.na nj fat1f non
tiles for the city. Nobody would charac-
terize that as a trust. And this Is the
test whether an association between people
IN the same business is a trust or whether
It is a combination for purposes OF in
terna ecoromy--does the association deal
exclusively with matter of common inter-
nal interest to them or does it deal with
their relations to the public?
Now apply that test TO the Associated
Press. The business of the Associated
4 fTess relates exclusively to a matter OF
internal economy. 1t relates to the gather
Ing of news, and 1t does not relate to the
vending of newspapers. There is nothing
IN the articles OF the Associated Press
tnere is nothing in it's tacit understand
,ngs, there is nothing consistent with the
purposes OF its organization which can re-
suit In combination between the news
papers themselves having for its purpose
the regulation of the prices at which papers
are sold. And the sole object Of the as
soclation is TO regulate Its internal economy
IN Its own interest and equally in the in
terest OF the public. And every newspaper
man can honestly and conscientiously de
iend his scheme Of cooperation with his
brethren in the news gathering business
lApplause.) And in this position / an
slad to say that I am confirmed by those
VINO are opposing lis in the litigation be-
lore the court. In Missouri one gentleman
ttetc
purglarze the institution. to break into It
and while he INDUCES in some epithet'
ne undertakes distinctly to disprove tina
'he Associated Press Il a combination of tn
newspapers; and undertakes to character
in 1t as a distinct institution seeking T.
supserve its own purposes OF pecunlar!
proht without regard to the immediate
interests of the individual newspapers tina
make up its membership. And the depend
ence in that case for compelling the Asso
elated Press to serve him with its reports
whether 1t will or no, is rather upon tn
view that the press Is engaged in service
OF public nature.
There are services which the law IRON
Time immemorial has recognized as pubic
fas regulated and has compelled to be
lne disposal of whosoeVer sought theh
The most familiar instance is that OF IN
common carrier, and the elaborate pro
visions Of the interstate commerce aY
Of the United States, and the equally ella
porate provisions of the different stat
regulations OF railroads declare no prlh
elple which was not an essential part o
the law of the kings highway 500 year
ago and which did not apply between IN
lowns of Great Britain then, as 1t apple
70 the commerce carried on by the ran
ways OF this country today. tApp'anse'
Inc nature of the function Is not az
Nrmined by the dimensions of the instru
mentality by which 1t is carried on. IN
httle skiff that carried passengers acros
sstream not fordable is rs much yenl.l
VI commerce, Is as much common carrie
as the great Atlantic liner, and Is SUBJ &c
70 the same law, and is so subject to
because the function that it performs Is e;
sentially the same.
4, we are the victims Of mistaken term
.noiogy. We speak of news as commoiit
~ me same sense in which we characterlz
eoai as commodity. But moments re
neulon will show that 1t is of an essential
y uinerent character. What Is the repo'
~ The Associated Press--that is all ina
" mas to offer to its members that IL a