Omaha daily bee., 1911-06-28
MAGAZINE TRUST ATTACKED
Periodical Clearing House Charged
with Conspiring to Restrain Trade.
EQUITY BILL FILED IN NEW YORK
Charges Fourteen Firms FIX Prices
for All Magazines by Threats
to Boycott Agents and
80 Dealers.

NEW YORK, June 3B--A civil suit was
filed In the tinted States court today for
the dissolution of the Periodical Clearing
House and about score of other maya
zine defendants. The petition, filed by Dis
trict Attorney Wise. alleges unlawful com
bination and conspiracy TO restrain inter-
state trade and foreign commerce In maya
zine and other periodical publications.
The petition charges that the defendants
since July, 1909. have been engaged in an
illegal combination, a dissolution OF which
is asked for.
The proceeding in equity is against the
periodical clearing house. Doubleday. Page
& Co., Crowell Publishing company, s. s.
Mcclure company. Current Literature
Publishing company. Phillips Publishing
company. Harper & Bros. Leslie-Judge
company. Review of Reviews company,
| International Magazine company, New
| Publication company Butterick Publishing
company. Standard Fashion company, New
! Idea Publishing company RidEeway COM
pany, American Home Magazine company.
Short Stories company. limited (herein-
after referred to as defendant publishers);
Frank N. Doubleday. Herbert S. Houston,
Frederick l.. Collins. Charles d. Lanier
and George Won Utassy.
| Periodical Clearing House.
The periodical clearing house, in the petit
ton, is described as a corporation orga-
nized under the laws of the state of New
York, carrying on business throughout the
United States and foreign nations with it's
officers and principal place of business
In this city. Its authorized capital stock
is OF the par value OF 5000. consisting of
/ twenty shares Of the par value of 500 each,
| of which fourteen are issued and outstand-
! ing.
The Suburban Press, New York cor
poration; Good Housekeeping. a Masschu-
sets corporation, and Hampton's Magazine
New York corporation. together with the
defendants are the stockholders of record
Of the defendant periodical clearing house
Doubleday, Collins, Houston LAnier and
Won Utassy constitute its board OF direo-
tors, and Houston. Won Utassy and IAnier
ere respectively It's president. vice presi-
dent and secretary and treasurer. These
officers OF the periodical clearing house are
officials also OF one or other of the de-
PENDANT corporations engaged in the publ
cation of magazines.
Fixes Prices for Agents.
The petition recites that prior to July.
lions and individuals publishing and sell
ing periodicals In free competition, but fol
lowing the organization OF the periodical
clearing house in July, 1903, notices were
sent to subscription agencies and agents
notifying them that they would have &C
sign the contract with the periodical clear.
ing house, II such agencies intended e
conduct further business With the mem.
bers' Of said periodical clearing house"
The petition then recltes that the period
cal clearing house prepared q, so-calleC
official price list of magazines and peri
odicals containing rules governing sales Of
subscriptions and the publishers whole
sale price list"
The petition conunuesi
THE contracts force upon the agents
and require them to sell all periodicals.
not listed in the aforesaid lists at tn,
regular publication price without any re
duction whatsoever. The publishers o.
many OF the periodicals listed In said list
have been and are willing that the agen
cies shall sell their periodicals TO the pub
, lie, at prices less thsn those fixed by tn,
} defendants in said price lists. but sal,
} agencies have been and are prevented b.
the aforesaid contracts from selling sucl
! subscriptions at less than the prices fixe,
r by the defendants and set for in sal,
: lists"
1t Is alleged that the clearing hous
had . system Of fines for offending agents