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