The Birmingham age-herald., 1907-07-05
NEWSPAPER MEN WATCH MONON CASE Insists on Making Contracts
 With Advertisers "KATY" IS IN SAME BOAT Commerce Commission Suit Against the Monon Because of Advertising
 Contract Made With Mum
 seys Magazine.
KATY" IS IN SAME BOAT

Newspaper publishers and railroad off, cials of Alabama will watch with inter est the test case of the United States government against the Monon railway, which was filed June 21, for the purpose of deciding whether newspapers and rail- roads have the right to exchange trans portation for advertising. District At torney Sims, representing the interstate commerce commission, filed suit at Chi cago against the Chicago, Indianapolis and Louisville railway, the 'Monon Route,' seeking to enjoin the road from carrying out a contract for transporta- ton made with Frank A. Munsey, editor of Munsey's Magazine.
 According to the interpretation of the Hepburn rate law by the interstate com merce commission the government insists that giving advertising in exchange for transportation is illegal. The Munsey contract sets forth that the Monon is getting the advertising at regular rates and is giving transportation on a like basis The district attorney in addition to attacking the legality of the practice, alleges that the basis of exchange is in- equitable, the publisher receiving $14510 worth of transportation in exchange for $125 worth of advertising. The bill also alleges that the road has entered into contracts of a similar nature with over 150 other publications.
 As the Monon is the only railroad in the United States which has refused point blank to comply with the interstate commerce law upon the subject of adver- Using, this case is of supreme importance. The Missouri, Kansas and Texas railroad is practically doing the same thing as the Monon, but in a different manner. When the new railroad law went into effect last August the Katy road had a new ad- vertising contract drawn up which was pronounced by the attorneys of the road proof against attack by the interstate commerce law. The Katy" road has consequently, made contracts for adver- Using with newspapers this year on an exchange basis and is in the same boat with the Monon.
 Local railroad men are inclined to be- lieve that the result of this test case will be a victory for the Monon, as many of the best posted railway passenger men agree in the opinion that the law is inn properly interpreted on this point by the interstate commerce commission and is in direct conflict with the constitution of the United States when 1t is declared that corporations cannot exchange commodi- ties
 As many railroads have practically ceased advertising under the ruling of tho interstate commerce commission because all their advertising had been carried upon an exchange basis, it is a well known fact that both railroads and newspapers would welcome a different interpretation of this objectionable feature of the rail- road rate law. Expert railroad passen- ger men do not look upon transportation issued to newspapers in the light of free transportation or passes, and they be- lieve that properly regulated exchange advertising is a right which should not be denied the newspaper publisher.