The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1911-06-26
= I 3 esll E
GRAND GOING
AFTER MAGAZINES
Conspiracy to Restrain Trade by
Enforcing Rates on Agents
Alleged.
CIVIL PROCEEDINGS BEGUN
Officers Of Periodical Publishers
Association to Be
Examined.
!. PROCEEDINGS BEGUN

NeW York, June 2b.-CiVtl and GRIM
inal proceedings are pending against
the Periodical Publishers Association
OF which all the leading magazine
publishers are members, on the ground
that the members are in conspiracy
to control the prices of magazine sub
scriptions.
The criminal Investigation has been
conducted before q Federal grand jury
for several weeks ami is In charge
Of a special prosecutor named by the
Department of Justice. Complaints
against the association were made not
only by subscription agents, who al
lege that their business has been in
terfered with but In behalf of num-
Der of public libraries, some OF them
In the West. 1t is alleged that through
the concerted action OF the publishers
the libraries are forced to pay higher
prices than formerly for magazines.
Among the witnesses already examined
are employees OF the American News
Company and certain subscription
agents. rs
The civil suit has been Instituted By
John Thomas Wood, who does u GEN
eraI SUBSCRIPTION business under tho
name OF the Publishers' Subscription
Exchange at ] Madison Avenue. Wood
Is suing the Periodical Clearing House.
which Is conducted BY the members OF
as on incorporated concern Wood
also names as defendants Doubleday.
page q Co. the Butterick Publishing
company the Crowen Publishing Com
pany. Harper & Bros. the international
magazine Company and about Afteen
other defendant publishing firms which
are members OF the Periodical Publish-
srs association. He asks for 500 900
DAMAGES on the ground that the de-
tlendants have conspired TO ruin his
business.
Wood has merely served summons
game before Supreme Court Justice
GSieEerich Saturday on an application
by Wood to examine certain officers
o. The defendants for the purpose OF
frame his complaint properly. The
court signed an order permitting MIN
70 examine Charles D. Lanier secretary
and treasurer of the Review of Re.
views Company. who he alleges is act.
ing mead of the Periodical Clearing
HGuse and is responsible for the action
ssaKen by the clearing house against
harpers The court also directed that
al the books and papers OF the Pc
floolGai Clearing House be submitted
LOT WOODS Inspection.
The plaintiff said in his petition y,
the court that for many years ne has
been In the business of soliciting SUBJ
ssSSa a and general advertising and
e n ts sso y yea Isoe-lo his business
%ronEful acts OF the defendants they
nave destroyed, wrecked" his business
ano prevented him from carrying out
existing contracts. f IL
Wood said that the Periodical clear
ing House is capitalized at $4,000. d..
vlded Into twenty shares of 800 each
NED nela by the members. The incorpors,
the Offices of ma gazine publishers IIs
purpose is not as set forth in tia
feertincate OF incorporation Wood al
fefSes; out the regulation and control
mat no cash has ever been paid for
shares OF stock. and that the onIy
purpose Sc 80 OF the members is to dom
scription price of all magazines and
periodicals" Wood says that the deA
tsne M corporation has notified him
ana ana f ne VIII ,hIs be forced out Of business
policy. 9uoiie
The plaintiff submitted a contract he
i5labH last October with, the Phillips
american and Cosmopolitan masazjnas
and Good Housekeep ping, by which trs
e s,hnaty was to give him rebates FOR
sau nsct obtained and furnish the
ih = ln Magazine and Good House,
KKeepinG for 80 cents a year. and -tSa
cosmopolitan for 10 cents. There is n
n nuhiFaes with Harpers by which the
ty
Harper,s Weekly for s32O 4 contract
with the Butterick Publishing cor.
pa ny { offered Wood 20 cents for zach
Wood f' ssi1 10 I'm under this contract
LOT the DeIlneator and 6,S8S for Every
1ooSS between October last and luna
! Inc plaintiff also submitted a ..o1,s
aut win doubleday. Page s. Co.
Wood says that the Periodical clear.
ing House has passed a resoiution
providing that no subscription asent
u may :,,h take more than cents proht for
tbst uofs scr Tor any periodical. and
. the rate arranged by the clcarfoar
tuscuse. or OF rebates by the publisher
m rne agent ~ilI be fined s25 for each
cred by the s25 fine resolution.
Because of the contracts which he
hh 81, ti Clearing House has fined
MIN ian excessive sum- and notified
MN that the amount of the fine viii
Pc be taken out Of the sums to be paid
there is sl0.060 now due him froa,9
Inc members of the clearing house To-.
sn ne sur SUBSCRIPTIONS he has obtained. He
ties prescribed the defendant concnrn
not only controls the subscription
rates OF magazines published by its
c members but Of all magazines. be-
CURED to submit every three months
a statement of all his business ana
or the rates obtained. 'i'u
wood asked for the order 20 ~
a am nea Mr. r., Lanier and Colonel Harvey
was fined, and what publishers ~ yn ne
represented at the meeting when NJ.
.ion was taken. He says he has been
n nes1, that unless the allega FL en-
cesslVe fine Is paid the defendants
VIII not do business with him mar
permit him to do business. iio'
J E. +.