The Great American Fraud by Samuel Hopkins Adams
Part 17
1982 words | Chapter 17
ious attacks in the shape of advertisements which in whole or
in part libel proprietary medicines."
I have said that the identity of the language of the silence clause
in several patent-medicine advertising contracts suggests mutual
understanding among the nostrum makers, a preconceived plan; and I
have several times mentioned the patent-medicine association. It seems
incongruous, almost humorous, to speak of a national organization of
quack doctors and patent-medicine makers; but there is one, brought
together for mutual support, for co-operation, for--but just what
this organization is for, I hope to show. No other organization ever
demonstrated so clearly the truth that "in union there is strength." Its
official name is an innocent-seeming one--"The Proprietary Association
of America." There are annual meetings, annual reports, a constitution,
by-laws. And I would call special attention to Article II of those
by-laws.
"The objects of this association," says this article, "are: to protect
the rights of its members to the respective trade-marks that they may
own or control; to establish such mutual co-operation as may be required
in the various branches of the trade; to reduce all burdens that may
be oppressive; to facilitate and foster equitable principles in the
purchase and sale of merchandise; to acquire and preserve for the use
of its members such business information as may be of value to them; to
adjust controversies and promote harmony among its members."
That is as innocuous a statement as ever was penned of the objects of
any organization. It might serve for an organization of honest cobblers.
Change a few words, without altering the spirit in the least, and a body
of ministers might adopt it. In this laboriously complete statement
of objects, there is no such word as "lobby" or "lobbying." Indeed, so
harmless a word as "legislation" is absent--strenuously absent.
Where the Money Goes.
But I prefer to discover the true object of the organization of the
"Proprietary Association of America" in another document than Article
II of the by-laws. Consider the annual report of the treasurer, say
for 1904. The total of money paid out during the year was $8,516.26.
Of this, one thousand dollars was for the secretary's salary, leaving
$7,516.26 to be accounted for. Then there is an item of postage, one
of stationery, one of printing--the little routine expenses of every
organization; and finally there is this remarkable item:
Legislative Committee, total expenses, $6,606.95.
Truly, the Proprietary Association of America seems to have several
{078}objects, as stated in its by-laws, which cost it very little, and
one object--not stated in its by-laws at all--which costs it all its
annual revenue aside from the routine expenses of stationery, postage
and secretary. If just a few more words of comment may be permitted on
this point, does it not seem odd that so large an item as $6,606.95,
out of a total budget of only $8,516.26, should be put in as a lump sum,
"Legislative Committee, total expenses"? And would not the annual report
of the treasurer of the Proprietary Association of America be a more
entertaining document if these "total expenses" of the Legislative
Committee were carefully itemized?
[IMAGE ==>] {078}
Not that I mean to charge the direct corruption of legislatures. The
Proprietary Association of America used to do that. They used to spend,
according to the statement of the present president of the organization,
Mr. F. J. Cheney, as much as seventy-five thousand dollars a year. But
that was before Mr. Cheney himself discovered a better way. The fighting
of public health legislation is the primary object and chief activity,
the very raison d'etre, of the Proprietary Association. The motive back
of bringing the quack doctors and patent-medicine manufacturers of the
United States into a mutual organization was this: Here are some
scores of men, each paying a large sum annually to the newspapers. The
aggregate of these sums is forty million dollars. By organization, the
full effect of this money can be got and used as a unit in preventing
the passage of laws which would compel them to tell the contents of
their nostrums, and in suppressing the newspaper publicity which would
drive them {079}into oblivion. So it was no mean intellect which devised
the scheme whereby every newspaper in America is made an active lobbyist
for the patent-medicine association. The man who did it is the present
president of the organization, its executive head in the work of
suppressing public knowledge, stifling public opinion and warding off
public health legislation, the Mr. Cheney already mentioned. He makes
a catarrh cure which, according to the Massachusetts State Board of
Health, contains fourteen and three-fourths per cent, of alcohol. As
to his scheme for making the newspapers of America not only maintain
silence, but actually lobby in behalf of the patent medicines, I am glad
that I am not under the necessity of describing it in my own words.
It would be easy to err in the direction that makes for incredulity.
Fortunately, I need take no responsibility. I have Mr. Cheney's own
words, in which he explained his scheme to his fellow-members of the
Proprietary Association of America. The quotation marks alone (and the
comment within the parentheses) are mine. The remainder is the language
of Mr. Cheney himself:
Mr. Cheney's Plan.
"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 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 my 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
on our shoulders. As you all know, there is hardly a year but we have
had a lobbyist in the different state legislatures--one year in New
York, one year in New Jersey, and so on." (Read that frank confession
twice--note the bland matter-of-factness of it.) "There has been a
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, this 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,
and Mr. Man had to go....
I read this to Dr. Pierce some days ago and he was very much taken up
with it. 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.
[IMAGE ==>] {080}
THIS IS THE FORM OF CONTRACT--SEE (A) (B) (C)--THAT MUZZLES THE PRESS OF
THE UNITED STATES.
The gist of the contract lies in the clause which is marked with
brackets, to the effect that the agreement is voidable, In case any
matter detrimental to the advertiser's interests "Is permitted to appear
in the reading columns, or elsewhere, in this paper." This clause,
in the same words, appears in all three of these patent-medicine
advertising contracts. The documents reproduced here were gathered
from three different newspapers in widely separated parts of the United
States. The name of the paper in each case has been suppressed in order
to shield the publisher from the displeasure of the patent-medicine
combination. How much publishers are compelled to fear this displeasure
is exemplified by the experience of the Cleveland _Press,_ from whose
columns $18,000 worth of advertising was withdrawn within forty-eight
hours. {081}
I should like to ask the newspaper owners and editors of America what
they think of that scheme. I believe that the newspapers, when they
signed each individual contract, were not aware that they were being
dragooned into an elaborately thought-out scheme to make every newspaper
in the United States, from the greatest metropolitan daily to the
remotest country weekly, an active, energetic, self-interested lobbyist
for the patent-medicine association. If the newspapers knew how they
were being used as cat's-paws, I believe they would resent it. Certainly
the patent-medicine association itself feared this, and has kept this
plan of Mr. Cheney's a careful secret. In this same meeting of the
Proprietary Association of America, just after Mr. Cheney had made the
speech quoted above, and while it was being resolved that every other
patent-medicine man should put the same clause in his contract, the
venerable Dr. Humphreys, oldest and wisest of the guild, arose and said:
"Will it {082}not be now just as well to act on this, each and every one
for himself, instead of putting this on record?... I think the idea is
a good one, But really don't think it had better go in our proceedings."
And another fellow nostrum-maker, seeing instantly the necessity
of secrecy said: "I am heartily in accord with Dr. Humphreys. The
suggestion is a good one, but when we come to put in our public
proceedings, and state that we have adopted such a resolution, I want to
say that the legislators are just as sharp as the newspaper men.... As
a consequence, this will decrease the weight of the press comments.
Some of the papers, also, who would not come in, would publish something
about it in the way of getting square....."
[IMAGE ==>] {082}
This contract is the backbone of the scheme. The further details, the
organization of the bureau to carry it into effect--that, too, has been
kept carefully concealed from the generally unthinking newspapers,
who are all unconsciously mere individual cogs in the patent-medicine
lobbying machine. At one of the meetings of the association, Dr. R. V.
Pierce of Buffalo arose and said (I quote him verbatim):... "I would
move you that the report of the Committee on Legislation be made a
special order to be taken up immediately... that it be considered
in executive session, and that every person not a member of the
organization be asked to retire, so that it may be read and considered
in executive session. There are matters and suggestions in reference to
our future action, and measures to be taken which are advised therein,
that we would not wish to have published broadcast over the country for
very good reasons."
Now what were the "matters and suggestions" which Dr. Pierce "would
not wish to have published broadcast over the country for very good
reasons?" {083}
Can Mr. Cheney Reconcile These Statements?
Letter addressed to Mr. William Allen White, Editor of the Gazette,
Emporia, Kan.
By Frank J. Cheney.
Dear Sir--
I have read with a great deal of interest, to-day, an article in
Colliers illustrating therein the contract between your p
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