Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1908-02-10
DICTM ENTS.
CONTINUED from Page One.)

| purely advertising literature from the
benefits of the low rate Of one cent
a pound. The statute provides that
Il periodical to come within this clasp
fication must be issued periodically at
stated dates. to be sold and not given
away and to contain a certain amount
| OF reading matter The decision Of
whether a paper comes under this
| statute or is q purely advertising sheet
lies with the third assistant postmaster
general
This order came as a surprise to the
officials yesterday afternoon though
they expected it very soon. Tic grand
| jury had reported its Indictment
against Terry and Henry w. Bosnian
but an hour before.
Terry and Bosnian are indicted joint
ly on two counts, the first count al
| leging that the reports Of the circula-
| ton were falsifed with intent to de
! fraud the government anu the sec
ond count alleged that Terry and Bos
han conspircd to cheat the govern
ment by falsely reporting the weight
| of second-class mail matter.
Bosnian was one Of the witnesses
summoned to appear before the grand
jury He Was present Friday and
questioned but it is understood that
he refused to answer any questions on
the ground that he had reason to be-
lieVe that an attempt would be made
to indict him. He went before the
grand jury Saturday morning but
whether he testified could not be
learned. With his wife, who has been
with him since he came to Portland
he sat in the corridor Of the federal
court all day yesterday and when the
jury reported the Indictment against
him. he was Immediately arrested BY
United States Officer Deputy Burton
Smith. Bosnian, in anticipation Of an
Indictment, had retained Hon. George
Z. Bird and had telegraph"d and tele-
phoned for securities. He was de-
tanned in the federal building until
1.30 p. VI. when Charles H. Robinson
Of this city, q wholesale paper dealer, |
went on his bond for $1,000 and he was !
released The bail is for his appear
ance in the court Wednesday morn |
ing the day assigned for the trial of !
him ami Terry.
The case viii probably excite q great |
deal Of interest all over the country on |
account of the numerous attempts of /
Congress 10 make a more marked dis I
tinctiOn between real newspapers and |
periodicals whose chief business is al
vertiSing. 1t is also exciting interest |
on account of the business and social |
standing Of Mr. Terry who is reputed |
to be very wealthy man. Other than
his interest in the Sawyer Publishing
Go. he is a large owner in wooden mills
and other enterprises and has a mag
nificent home in Waterville
Mr.. Terry was once before indicted
by federal grand jury. IN May, 1899.
he was convicted on an Indictment OF
using the mails to defraud and was
fined $500 ard sentenced to one day
in Jail. The case was the famous
Fairfield Floral case.
The Sawyer Publishing Co, Of when
Mr.. Terry is the principal owner, is
sues three publications. Sawyer's
Monthly. the Home Queen and the
American Home. Their combined cir
culation until recently was 100000.
The large circulation of Sawyers
and the class Of subscribers
made it an attractive advertising me-
dunn and the rates for advertisements
We're correspondingly high. Until r.
Gently 81 a line was charged, which
to about $50 an inch. Since
the investigation began the circulation
was cut down, SO Mr.. Terry told one
Of the inspectors, to the actual paid
list. approximately 4oo.-
600. This necessitated a reduction in
the advertising rates to $3.50.
From their investigation the post
Gee officials claim that in the past year
the government has been defrauded of
about $4,000 by false classification
and false weighing of the mail. The
allows the publisher 20
send the paid circulation and 100 per
cent. of this circulation for sample
copies at the second class rate of one
cent a pound. Excess has to be paid
for at the rate Of one cent for four ,
ounces.
1t is alleged that the Sawyer Pub
fishing Co. sent many thousand copies
IF their publications under the second I
class rate when they should have paid !
1t the rate for excess.
Inspectors who talked with Mr.. Terry
llleGe that he told them that his paid
circulation was more than GO,O0O which ,
would entitle them to send the entire cir ,
'uiation Of q million and Il quarter al
- 49, = i'''" i''N'' ''t tiic inspectors {
ay that an examination of his circlla- ,
ion sards shows that his paid circula- :
ion WIS much less than this and even +
vent SO low as 100000. At the latter fig =
Ire the company would be entitled to +,
nail at the low rate Se0.Q10 copies, while
is claimed that million and a quarter !
opics have been mailed. If these figures i;
re correct. then 100000 papers have been q
ent out at q rate of one cert a pound !
When they should rave paid four cents u I.
ound. This is one of the allegations il, +
he Indictment
The other count alleges conspiracy to
alsify the weight of the mail matter +
With intent to defraud the government /
nd on this count Clerk Bosnian is Joint \
indicted. Mr.. Bosnian did the weigh.