The New York herald. [volume] (New York, N.Y.) 1920-1924, 1922-11-18
BECK FIGHTS CURTIS
CIRCULATION PLAN
Asks Supreme Court to Void
Publishers Con tracts With
Distributors.

WASHINGTON. Nov. 1.-THE validity
of the contract OF the Curtis Publish
ing Company of Philadelphia. with it's
wholesale distributing agents. was at
tackled in the Supreme Court to-day by
Solicitor General Beck. who asked that
the decision of the Third Circuit Court
OF Appeals, setting aside the order of the
Federal Trade Commission, prohibiting
such contracts, be reversed. The con-
tracts. he insisted, were in violation Of
the Clayton act and constituted unfair
methods of competition. tending TO Gre
ate monopoly.
Asserting that the Curtis Company
had no monopoly upon the youth Of
America" Mr. Beck insisted that the
court should not attach Importance to
the benehcence" Of the company in
training school boys in its circulation
department. The Circuit Court of APP
peals had. he said. seemingly based its
decision upon that feature OF the case.
II had, he asserted. In reaching its con-
illusions exceeded its authority under
the Clayton act. and had made findings
OF fact of It's own instead Of accepting
as conclusive the finding of fact made
by the Federal Trade Commission.
Dangers of monopoly In newspaper
and magazine circulation were illus
trated by the solicitor general, who
stated that the Journal Of Commerce
In Chicago had asserted in litigation its
inability to reach the public, due TO the
power of distributing agency in that
city and an understanding the agency
had with the publishers of certain other
Chicago newspapers. He expressed to
the court the hope that case involv-
ing the controversy would soon be be-
fore it,
~. Il sf -nxs-
eminent, the Solicitor General stated.
that the Curtis Company should be COM
PEELED to cancel it's contracts with all
its wholesale distributing agents who
numbered more than 1900. 1t did in
slst. he said, that the company should
not be permitted to enforce It's contract
with 447 of its wholesale agents who,
prior to signing it, had been wholesale
agents for other magazines and periodi-
calls which, under the terms of their
present contracts. they are now pro-
hibited from handling.
The circulation organization OF the
Curtis Company was described to the
court in detail by John G. Milburn, who
appeared as its counsel. Its present
wholesale distribution method, he In
sisted. was the outgrowth OF its de-
velopment of school boys in the street
sale and home delivery of It's publica
tons.
When the company found II desirable
to establish wholesale agents through
out the country to manage the school
boy distributions within their respective
districts, it selected in most Instances
he said. older school boys and set them
up In the business.
1t was not until after competitors had
attempted by a raid" to take away
from II some OF its wholesale distribut-
ing agents and demoralize its organiza-
ton. Mr.. Milburn asserted that the Cur
tbs Company decided to prohibit it's
wholesale agents from handling. with
out, it's consent, the publications of
rivals. The present force of Curtis
wholesale agents, he insisted were, with
practically no exception, not acting in
that capacity for any of its competitors
at the time of entering into the agree
ment.