The Great American Fraud by Samuel Hopkins Adams
Part 16
1976 words | Chapter 16
as at once the most forbidding preventive and
the swiftest and surest corrective of evil. For the haunting possibility
of newspaper exposure, men who know not at all the fear of God pause,
hesitate, and turn back from contemplated rascality. For fear "it might
get into the papers," more men are abstaining from crime and carouse
to-night than for fear of arrest. But these are trite things--only, what
if the newspapers fail us? Relying so wholly on the press to undo evil,
how shall we deal with that evil with which the press itself has been
seduced into captivity?_
In the Lower House of the Massachusetts Legislature one day last March
there was a debate which lasted one whole afternoon and engaged some
twenty speakers, on a bill providing that every bottle of patent
medicine sold in the state should bear a label stating the contents of
the bottle. More was told concerning patent medicines that afternoon
than often comes to light in a single day. The debate at times was
dramatic--a member from Salem told of a young woman of his acquaintance
now in an institution for inebriates as the end of an incident which
began with patent medicine dosing for a harmless ill. There was humor,
too, in the debate--Representative Walker held aloft a bottle of Peruna
bought by him in a drug store that very day and passed it around for
his fellow-members to taste and decide for themselves whether Dr.
Harrington, the Secretary of the State Board of Health, was right when
he told the Legislative Committee that it was merely a "cheap cocktail."
The Papers did not Print One Word.
In short, the debate was interesting and important--the two qualities
which invariably ensure to any event big headlines in the daily
newspapers. But that debate was not celebrated by big headlines, nor any
headlines at all. Yet Boston is a city, and Massachusetts is a state,
where the proceedings of the legislature figure very large in public
interest, and where the newspapers respond to that interest by reporting
the sessions with greater fullness and minuteness than in any
other state. Had that debate {073}been on prison reform, on Sabbath
observance, the early closing saloon law, on any other subject, there
would have been, in the next day's papers, overflowing accounts of
verbatim report, more columns of editorial comment, and the picturesque
features of it would have ensured the attention of the cartoonist.
Now why? Why was this one subject tabooed? Why were the daily accounts
of legislative proceedings in the next day's papers abridged to a
fraction of their usual ponderous length, and all reference to the
afternoon debate on patent medicines omitted? Why was it in vain for the
speakers in that patent-medicine debate to search for their speeches
in the next day's newspapers? Why did the legislative reporters fail to
find their work in print? Why were the staff cartoonists forbidden to
exercise their talents on that most fallow and tempting opportunity--the
members of the Great and General Court of Massachusetts gravely tippling
Peruna and passing the bottle around to their encircled neighbors, that
practical knowledge should be the basis of legislative action?
I take it if any man should assert that there is one subject on which
the newspapers of the United States, acting in concert and as a
unit, will deny full and free discussion, he would be smiled at as an
intemperate fanatic. The thing is too incredible. He would be regarded
as a man with a delusion. And yet I invite you to search the files of
the daily newspapers of Massachusetts for March 16, 1905, for an account
of the patent-medicine debate that occurred the afternoon of March 15 in
the Massachusetts Legislature. In strict accuracy it must be said that
there was one exception. Any one familiar with the newspapers of the
United States will already have named it--the Springfield _Republican_.
That paper, on two separate occasions, gave several columns to the
record of the proceedings of the legislature on the patent-medicine
bill. Why the otherwise universal silence?
The patent-medicine business in the United States is one of huge
financial proportions. The census of 1900 placed the value of the annual
product at $59,611,355. Allowing for the increase of half a decade of
rapid growth, it must be to-day not less than seventy-five millions.
That is the wholesale price. The retail price of all the patent
medicines sold in the United States in one year may be very
conservatively placed at one hundred million dollars. And of this one
hundred millions which the people of the United States pay for patent
medicines yearly, fully forty millions goes to the newspapers. Have
patience! I have more to say than merely to point out the large revenue
which newspapers receive from patent medicines, and let inference do the
rest. Inference has no place in this story. There are facts a-plenty.
But it is essential to point out the intimate financial relation between
the newspapers and the patent medicines. I was told by the man who for
many years handled the advertising of the Lydia E. Pinkham Company that
their expenditure was $100,000 a month, $1,200,000 a year. Dr. Pierce
and the Peruna Company both advertise more extensively than the Pinkham
Company. Certainly there are at least five patent-medicine concerns
in the United States who each pay out to the newspapers more than one
million dollars a year. When the Dr. Greene Nervura Company of Boston
went into bankruptcy, its debts to newspapers for advertising amounted
to $535,000. To the Boston _Herald_ alone it owed $5,000, and to so
small a paper, comparatively, as the Atlanta _Constitution_ it owed
$1,500. One obscure {074}quack doctor in New York, who did merely an
office business, was raided by the authorities, and among the papers
seized there were contracts showing that within a year he had paid to
one paper for advertising $5,856.80; to another $20,000. Dr. Humphreys,
one of the best known patent-medicine makers, has said to his
fellow-members of the Patent Medicine Association: "The twenty thousand
newspapers of the United States make more money from advertising
the proprietary medicines than do the proprietors of the medicines
themselves.... Of their receipts, one-third to one-half goes for
advertising." More than six years ago, Cheney, the president of the
National Association of Patent Medicine Men, estimated the yearly amount
paid to the newspapers by the larger patent-medicine concerns at twenty
million dollars--more than one thousand dollars to each daily, weekly
and monthly periodical in the United States.
[IMAGE ==>] {074}
Silence is the Fixed Quantity.
Does this throw any light on the silence of the Massachusetts papers?
{075}
Naturally such large sums paid by the patent-medicine men to the
newspapers suggest the thought of favor. But silence is too important a
part of the patent-medicine man's business to be left to the capricious
chance of favor. Silence is the most important thing in his business.
The ingredients of his medicine--that is nothing. Does the price of
goldenseal go up? Substitute whisky. Does the price of whisky go up? Buy
the refuse wines of the California vineyards. Does the price of opium go
too high, or the public fear of it make it an inexpedient thing to use?
Take it out of the formula and substitute any worthless barnyard
weed. But silence is the fixed quantity--silence as to the frauds he
practices; silence as to the abominable stewings and brewings that enter
into his nostrum; silence as to the deaths and sicknesses he causes;
silence as to the drug fiends he makes, the inebriate asylums he fills.
Silence he must have. So he makes silence a part of the contract.
Read the significant silence of the Massachusetts newspapers in the
light of the following contracts for advertising. They are the regular
printed form used by Hood, Ayer and Munyon in making their advertising
contracts with thousands of newspapers throughout the United States.
On page 80 [IMAGE ==>] {080} is shown the contract made by the J. C.
Ayer Company, makers of Ayer's Sarsaparilla. At the top is the name of
the firm, "The J. C. Ayer Company, Lowell,, Mass.," and the date. Then
follows a blank for the number of dollars, and then the formal contract:
"We hereby agree, for the sum of............ Dollars per year,........to
insert in the............. published at............... the advertisement
of the J. C. Ayer Company." Then follow the conditions as to space to be
used each issue, the page the advertisement is to be on and the position
it is to occupy. Then these two remarkable conditions of the contract:
"First--It is agreed in case any law or laws are enacted, either state
or national, harmful to the interests of the T. C. Ayer Company, that
this contract may be canceled by them from date of such enactment, and
the insertions made paid for pro-rata with the contract price."
This clause is remarkable enough. But of it more later. For the present
examine the second clause: "Second--It is agreed that the J. C. Ayer Co.
may cancel this contract, pro-rata, in case advertisements are published
in this paper in which their products are offered, with a view to
substitution or other harmful motive; also in case any matter otherwise
detrimental to the J. C. Ayer Company's interest is permitted to appear
in the reading columns or elsewhere in the paper."
This agreement is signed in duplicate, one by the J. C. Ayer Company and
the other one by the newspaper.
All Muzzle-Clauses Alike.
That is the contract of silence. (Notice the next one, in identically
the same language, bearing the name of the C. I. Hood Company, the
other great manufacturer of sarsaparilla; and then the third--again in
identically the same words--for Dr. Munyon.) That is the clause which
with forty million dollars, muzzles the press of the country. I wonder
if the Standard Oil Company could, for forty million dollars, bind
the newspapers of the United States in a contract that "no matter
detrimental to the Standard Oil Company's interests be permitted to
appear in the reading columns or elsewhere in this paper."
Is it a mere coincidence that in each of these contracts the silence
{076}clause is framed in the same words? Is the inference fair that
there is an agreement among the patent-medicine men and quack doctors
each to impose this contract on all the newspapers with which it deals,
one reaching the newspapers which the other does not, and all combined
reaching all the papers in the United States, and effecting a universal
agreement among newspapers to print nothing detrimental to patent
medicines? You need not take it as an inference. I shall show it later
as a fact.
[IMAGE ==>] {076}
"In the reading columns or elsewhere in this paper." The paper must not
print itself, nor must it allow any outside party, who might wish to
do so, to pay the regular advertising rates and print the truth about
patent medicines in the advertising columns. More than a year ago, just
after Mr. Bok had printed his first article exposing patent medicines,
a business man in St. Louis, a man of great wealth, conceived that it
would {077}help his business greatly if he could have Mr. Bok's article
printed as an advertisement in every newspaper in the United States.
He gave the order to a firm of advertising agents and the firm began in
Texas, intending to cover the country to Maine. But that advertisement
never got beyond a few obscure country papers in Texas. The contract of
silence was effective; and a few weeks later, at their annual meeting,
the patent-medicine association "Resolved"--I quote the minutes--"That
this Association commend the action of the great majority of the
publishers of the United States who have consistently refused said false
and malic
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