The Mathews journal. (Mathews C.H. [Court House]) 1903-1937, 1911-07-06
MAGAZINE TRUST
HELD UNLAWFUL
Petition of Government Says This
Was Primary Purpose of
Combination, and Asks
U. s. Court to Order
Dissolution.


NEW YORK Special.-Sweeping
charges of unlawful combination to re-
strain trade and commerce in the
United States and with foreign nations
i'm magazines and other periodical pub
LEGATIONS are made by the Government
in a dissolution suit filed today against
the Periodical Clearing House and
other defendants, known as the maya
zine trust, in the Circuit Court OF the
United States for the Southern District
of New York.
The Government asks that the de-
PENDANTS, their officers. directors,
stockholders and servants be perpet-
ually enjoined and restrained from
continuing the monopoly; that the Pc
riodical Clearing House be adjudged
an unlawful combination in restraint
of trade. and that il be dissolved un-
til il shall have withdrawn from and
ceased to operate under two contracts
presented to the court with the petit
ton as evidence.
This suit is another step in the ad-
ministratiOn's war on unreasonable
trusts. That criminal action may be
ants is shown by the request that they
be required to answer the Government
complaint. but not under OATH"
The suit was filed by District Attor-
ney Henry A. Wise, acting under the
personal direction of Attorney Gene
raj Wickersham.
Many Magazines Involved.
The investigation which resulted in
the suit being filed today has been
going on for several weeks by direc-
ton of Mr.. Wickersham.
Those assisting Mr.. Wise in the &C
tive work were Assistant Attorney
General Fowler, Special Assistant
United States Attorney Shelby, Assist
ant United States Attorney Grim and
Assistant United States Attorney
Frankfurter.
The defendants are. in addition to
the Periodical Clearing House. the fol-
lowing: Doubleday, Page & Co.,
Crowell Publishing Company. s. S.
Mcclure Company, Current Literature
Publishing Company, Phillips Pub
fishing Company, International Maya
zine Company, New Publishing Com
pany. Butterick Publishing Company,
Standard Fashion Company, New Idea
Publishing Company, Ridgeway Com
pany, American Home Magazine Com
pany. Short Stories Company, Limit
l. Collins. Charles d. Lanier, George
Won Ulassey, Harper & Brothers,
Leslie's. Judge Company and Review
Of Reviews Company.
The defendant, Periodical Clearing
House, is a corporation, organized un-
der the laws of New York State, to
carry on business through the United
States and with foreign countries.
The petition recited the publications
Of each company and then charges
that the wrongful acts on the part OF
the defendants have extended over a
long period, saying in this connection:
Meant TO Control Magazine Prices.
Such unlawful combination and
conspiracy is the result of a series
Of wrongful acts extending over a Pc
rOid of about two years, participated
in by the defendants respectively in
the manner and TO the extent here
matter more fully set forth. In par
ticipating in the various acts. agree
ments and combinations hereinafter
described, all the defendants have
been actuated by wrongful intent to
restrain interstate and foreign trade
and commerce against other periodi-
calls"
In spite Of its contentious, the Gov
eminent has filed with it's bill OF COM
plant an agreement form used by the
Clearing House to bind its subscribers
which is designated Exhibit A"
This agreement shows the great
power Of the Clearing House in the
publishing world. being delegated
regulate the affairs of its members.
The Clearing House was organized
in 1909, the object being, according to
the Government Ito destroy the COM
petition in prices of subscriptions of
all magazines and periodical publica-
tons in the United States, which had
heretofore existed between the pub
fishers thereof and between 'subscrip-
ton agencies and agents through
out the United States and unduly TO
restrain interstate and foreign trade. d"
number of other exhibits are at
tached, among them price list such
as was sent to selling agencies.