Extract from a speech delivered before the Proprietary Association of

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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,

FRANK J. CHENEY.

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