The Oskaloosa herald., 1911-06-29
SEEK TO DISSOLVE
MAGAZINE TRUST
Government Sues Under Sher-
man Law at New York.
SAYS COMBINE FIXES PRICES
Publishers of the Large Periodicals
Are Accused Of Plot in Forming
CIerains House to Prevent
Price Cutting.

New York, June 2S.-A civil suit
was filed in the United States circuit
court for the dissolution of the Period
ical Clearing House and about score
Of other magazines defendants. The
petition, filed by District Attorney
Wise, alleges unlawful combination
and conspiracy to restrain Interstate
trade and foreign commerce in maya
zine and other periodical publications.
The petition charges that the de-
PENDANTS since July, 1909, have been
engaged in an illegal combination, a
dissolution Of which Is sought. The
proceeding in equity Is against the
Periodical Clearing House Double
day. Page & Co.; Crowell Publishing
ing company, S. S. Mcclure company,
Phillips Publishing company, Harper
& Bros, Leslie-1udge company, Re-
view of Reviews company, lnterna-
tional Magazine company, New Publ
cation company, Butterick Publishing
company, Standard Fashion company,
New Idea Publishing company, Ridge
way company, American Home Maya
zine company, Short Stories company,
Ltd; Frank N. Doubleday, Herbert S.
Houston, Frederick L. Collins, Charles
d. Lanier and George Won Utassy.
Describes the Clearing House.
The periodical clearing house is de-
scribed in the petition as a corpora
ton organized under the laws Of the
state of New York, carrying on bust.
ness throughout the United States and
foreign nations, with its offices and
principal place of business in this city.
Its authorized capital stock is of the
par value of $4,000, consisting of 20
shares of the par value Of 500 each,
of which IA are issued and outstand.
ing
Says Contract Was Forced.
The petition recites that prior to
July, 1909, there were upward of 90,
900 corporations, copartnerships and
individuals engaged in producing, pub
fishing and selling periodicals in open
competition; that following the organ
iZation of the Periodical Clearing
House in July, 1909, notices were sent
to the principal subscription agencies
and agents in the country notifying
them that they would have to sign
the contract with the periodical house
II such agencies intended to do fur
Their business with the members Of
said Periodical Clearing House" The
petition then recites that the clearing
house prepared so-ca)Ied official
price list" of magazines and periodi-
calls containing rules governing sales
of subscriptions and the publishers
wholesale price list"
Object to Prevent Price Cuts.
Continuing, the petition says:
THE contracts force upon the
agents and require them to sell all
periodicals not listed in the aforesaid
lists at the regular publication price,
without any reduction whatsoever.
The publishers of many of the periodi-
calls listed in said lists have been and
are willing that the agencies shall sell
their periodicals to the public at
prices lower than those fixed by the
defendants in said price lists, but said
agencies have been and are prevented
by the aforesaid contracts from sell
ing such subscriptions at less than the
prices fixed by the defendants and set
forth in said lists"