I have read with a great deal of interest, to-day, an article in
Colliers illustrating therein the contract between your paper and
ourselves, [see p. 18--Editor.] {018}Mr. S. Hopkins Adams endeavored very
hard (as I understand) to find me, but I am sorry to say that I was not
at home. I really believe that I could have explained that clause of
the contract to his entire satisfaction, and thereby saved him the
humiliation of making an erratic statement.
This is the first intimation that I ever have had that that clause was
put into the contract to control the Press in any way, or the editorial
columns of the Press. I believe that if Mr. Adams was making contracts
now, and making three-year contracts, the same as we are, taking into
consideration the conditions of the different legislatures, he would be
desirous of this same paragraph as a safety guard to protect himself, in
case any State did pass a law prohibiting the sale of our goods.
His argument surely falls flat when he takes into consideration the
conduct of the North Dakota Legislature, because every newspaper in that
State that we advertise in hid contracts containing that clause. Why
we should be compelled to pay for from one to two years' advertising or
more, in a State where we could not sell our goods, is more than I can
understand. As before stated, it is merely a precautionary paragraph to
meet conditions such as now {084}exist in North Dakota. We were
compelled to withdraw from that State because we would not publish our
formula, and, therefore, under this contract, we are not compelled to
continue our advertising.
Extract from a speech delivered before the Proprietary Association of
America.
By Frank J. Cheney.
"We have had a good deal of difficulty in the last few years with the
different legislatures of the different states.... I believe I have a
plan whereby we will have no difficulty whatever with these people. I
have used it in my business for two years, and I know it is a practical
thing.... I, inside of the last two years, have made contracts with
between fifteen and sixteen thousand newspapers, and never had but one
man refuse to sign the contract, and by saying to him that I could not
sign a contract without this clause in it he readily signed it. My point
is merely to shift the responsibility. We to-day have the responsibility
of the whole matter upon our shoulders....
"There? has been constant fear that something would come up, so I had
this clause in my contract added. This is what I have in every contract
I make: 'It is hereby agreed that should your State, or the United
States government, pass any law that would interfere with or restrict
the sale of proprietary medicines, his contract shall become void.'...
In the State of Illinois a few years ago they wanted to assess me three
hundred dollars. I thought I had a better plan than this, so I wrote to
about forty papers, and merely said: 'Please look at your contract with
me and take note that if this law passes you and I must stop doing
business, and my contracts cease.' The next week every one of them had
an article.... I have carried this through and know it is a success. I
know the papers will accept it. Here is a thing that costs us nothing.
We are guaranteed against the $75,000 loss for nothing. It throws the
responsibility on the newspapers.... I have my contracts printed and I
have this printed in red type, right square across the contract, so
there can be absolutely no mistake, and the newspaper man can not say to
me, 'I did not see it.' He did see it and knows what he is doing. It
seems to me it is a point worth every man's attention.... I think this
is pretty near a sure thing."
To illustrate: There are 739 publications in your State--619 of these
are dailies and weeklies. Out of this number we are advertising in over
500, at an annual expenditure of $8,000 per year (estimated). We make a
three-year contract with all of them, and, therefore, our liabilities in
your State are $24,000, providing, of course, all these contracts were
made at the same date. Should these contracts all be made this fall
and your State should pass a law this winter (three months later)
prohibiting the sale of our goods, there would be virtually a loss to us
of $24,000. Therefore, for a business precaution to guard against just
such conditions, we add the red paragraph referred to in Collier's.
I make this statement to you, as I am credited with being the originator
of the paragraph, and I believe that I am justified in adding this
paragraph to our contract, not for the purpose of controlling the Press,
but, as before stated, as a business precaution which any man should
take who expects to pay his bills.
Will you kindly give me your version of the situation? Awaiting an early
reply, I am,
Sincerely yours,