The San Francisco Call. Newspaper, October 24, 1898, Page 1

Call l Lhis pg to be t the [ Per not | aken f"‘()m rary. +s 44 VOLUME LXXXIV.—NO. 146. SAN FRANCISCO, MONDAY, OCTOBER 24, 1898. HEARST VALUED HIS SILENCE A Futile Effort to Time- Lock His Malignant Tongue. A Great Corporation’s Pleading at the Feet of Blackmailer. The Call has reproduced and com- | mented on the sec contract between | the Examiner and the Southern Pa- cific Company, in wh rst through | his representative agreed not to be gnant nor to misrepre- | of that corporation Hearst, con- | able evidence for a certaln time nal attack on Mr. W. H. | e to the latter gentle- | 1 acquits him of any con- | 1 with the exposure of this black- | g scheme of the Examiner. No | nected with The Call consulted Mr. Mills about the matter, nor did he | in any way contribute to the astonish- | ing exposure which has stung Mr. Hearst into a red-mouthed challenge | to Mr. Mills to sue him for libel and to | do a lot of other things which Mr. Mills kas no interest In doing, as he has had | no eonnection with anything that has| appeared in The Call | As well might the Examiner make mmouths at the King of the Belgians and | challenge him to sue it, in a matter with which he has had no connection | nor relation. The facts we have pub- | lished are these, and before we finish | we will point out to Mr. Hearst a very | easy and simple way in which he can | a Deliberate derstanding and Crocker and Towne in writing declared that it was theirs. After the company by those repre- | sentatives had refused to recede and | excise the part in brackets, on June 29, 1892, the open contract was made, by | which the Southern Pacific Company | agreed to pay the Examiner $30,000 in thirty monthly installments for adver- tising in its Columbian Fair edition, | clause: *And all in accordance with an agree- | ment entered into between the Ex-!| aminer management and C. F. Crocker, | A. N. Towne and William H. Mills, on If of the Southern Pacific Com- | clause obviously did not mean the contract in which it appeared, for | A. N. Towne was not a party thereto, but a prior and perfected agreement to | which Towne was a party and which { was precedent to the contract and a condition upon which the contract was made. The Examiner’s Columbian Fair edi- tion was not issued until June 4, 1893, but the payments on the blackmail agreement began September 1, 1892, nine months before the advertising ap- | peared, and $3000 had been paid by April 25, 1893, and on June 8, $2000 more | was paid, making practically a pay- | PRICE FIVE CENTS. AT THIRTY THOUSAND DOLLARS LONG GREEN SEEKS TO SAVE HEARST FIRST---MAGUIRE AND PHELAN MUST NOW SWIM FOR THEMSELVES, ally hypothecated that contract with disprove them, without waiting for a| ment of $10,000 before the advertising | the clause which made the secret agree- suit by Mr. Mills or anybody else for an | opportu to prove that he is not a| blackmailing scou In June, 1892, greement was | made and entered into b nd between | the Examiner and t hern Pa- cific Corr nt, which was t ontract for advertising, contains these stipulations: The company (s to e immunity of the Ex- from hostility in the colum Bl vicim of not proceed or malignity, s may be found in the con- ag t t from any mo and that such criticism necessary to keep and m fidence of the public, to extent that any public sentiment may have been created from other sources is to be avoid- ed as much as possible. June 15, 1892, the representative of the Examiner agreed to all of the above except the part inclosed in brackets. To learn whether that part was not in- cluded in the agreement, the directors were asked by Mr. Mills if it accorded with their understanding, Mr. Miils saying in writing that it was his un- foFoYoroIO) foyoOXCRoXOYOXOYORORORONORCYOXOYOXON ONCHC @@ COLONEL CROCKER: The I above is my understand- ing. How does it conform to your understanding? W. H. MILLS. {OXCRONORCROYOOXOXOJOROXOXOYOKO} had circulation. On July 24, 1893, W. R. Hearst| First National Bank of San Francisco, affixing his own signature to the as- signment, but first obtaining the in- dorsement of Colonel C. F. Crocker on the back of the contract that the same was valid and would be “paid when due, according to the terms thereof.” Now, when Hearst assigned this con- | tract to the bank putting his assign- | ment and signature on its back along- side of Crocker’s certificate to it, what | were the legal facts? Crocker certifled that the contract was valid and would | be paid when due “according to the terms thereof.” If there was no agree- ment behind the contract Hearst had performed his part, for the Examiner had completed "nd delivered the adver- tising called for, and had thereby com- pleted his undertaking openly written in the contract. But Crocker’s indorse- ment implied legally that Hearst's\un- dertaking was not completed; that “ac- cording to the terms thereof” he had | something to do besides the advertis- ing which had been completed and de- | livered. He may have been watching | crocodiles on the Nile, or listening to | the bulbul in Cashmere when his agents were selling him to bondage to the Southern Pacific but when he person-' MADE IN 1892. The company is to enjoy immunity from hostility in the col- umns of the Examiner, and is not to be the victim of malicious attack- or criticism or of misrepresentation; that the Examiner will not seek to create hostile sentiment in the minds of this ® community against the Southern Pacific Company or any of the © interests it represents, and that while not stipulating as against @ all criticism, it agrees that criticism shall not proceed from any motive of malice or malignity, and that such criticism as may be found necessary to keep and maintain the confidence of the pub- lic, to the extent that any public sentiment may have been created from other sources, is to be avoided as much as possible. This agrees with my understanding quite fully. Certainly nothing less would he satisfactory. CHARLES F. CROCKER. June 18. SiCieiCicicieiofelofolofofoYoyoYoroYofcXoYofoloYoFoYofoYofoofofolooJofooYofo oo X oY YoRcYoxcXo) ment a part of it, and with Crocker’s indorsement of its validity if perform- | hypothecated this open contract to the | ed “according ‘to the terms thereof” Hearst could not be ignorant of the conditions of his sale to the corpora- tion, nor of the time lock it had upon his lying and blackguardism for the space of thirty months. . At the date of this hypothecation | there was due on the contract $19,000, and the Southern Pacific Company con- tinued payment to the Bank until June 11, 1894. The next payment due July 11, 1894, was defaulted by the company on the ground that the “terms thereof” had been violated by the Examiner. The default went into controversy be- tween Hearst and the rajifoad. On September 24 Colonel Crocker wrote Hearst: “Some time in August last W. F. Herrin met yourself and your manager, Mr. Henderson, relating to the install- ments unpaid on the contract between your paper and the Southern Pacific Company, dated June 29, 1892. I under- stand from Mr. Herrin that in your in- terview with him you agreed that at the time this contract was made, pro- viding for the payment of $30,000 to the Examiner, it was stated by your agents as an inducement to the railroad for making this contract that the Ex- [oXoJoXoJoXoJoJoXoXoXoXoRoJoXoJoJoJoJoXoJoJoJoJoJoRoRoRoJoNoXoXoXoXoXoXoXo¥oYoXoYoRoXoXoXoXo) HEARST'S SECRET AGREEMENT WITH THE SOUTHERN PACIFIC COMPANY As [ understand the talk the above covers the understanding fully. A. N. TOWNE. [CXOROXORRNOXCROJOROROROROROXOJOROXOXONONOROJOXOROOJOYOOXOXOJOROXOYOXOJOXORORORD [oXoJoXooXoJoJoZoJoJoJoloJoJoRoJoXol THE BOODLE AND ITS PAYMENT These Are the Amounts and Dates When Paid to o W. R. Hearst by the South- & ern Pacific Company to Enable It to Enjoy Immu- nity From Hostility in the Columns of the Examiner ‘Until Hearst Violated the Secret Agreement. [OJOXOJOJOXOJOXOJOJO] [OXO] MONARCH OF THE DAILIES. San Franeisco, July 21, 1892. W. H. Mills, Southern Paecific Land Agent, To Examiner, Dr. [CXCJOJOJOXOXOJOXOJOROJOJOJOROROYOOROXO] Y 1893, é-'j June 4, 1893, for ad- ©® vertising World’s ® Fair edition.. $30,000 @ sept. 1, 1892, by cash. 1,000 October 1, by eash 1,000 ® November 28 ‘¢ .... 1,000 ® 1893. © February 16 1,600 © April 25 - 8,500 ® June 8 £ 2,000 ® July 10 s 1,000 2 $11,000 ® Balance $19,000 © . 1893. g Aug. 10, paid on acet. $1,000 @© Sep. 11 & “ .. 1,000 ® Oct. 10 £ - 1,000 ® Nov. 10 “... 1,000 © Dec. 10 ¢ “ ... 1,000 ©® 1894, S Jan. 10 « 1,000 Feb. 14 1,000 March 12 1,000 @® April 11 ¢ 1,000 © May10 « 1,000 ® June 11 ¢ 1,000 @ o @@@@@@@@@@@@@@@@@8 aminer would accord to the ‘railroad company fair treatment In its columns. Mr. Herrin then Informed you that it was my opinion as well as that of the other directors of the Southern Pa- cific Company, that the Examiner had not, especially during the strike, given the company fair treatment. To this you replied that you believed that the ORI C OO ORONOXO O o RO oY OJOXOXOFOTOFOROXOROROXOFoXOIoNoX OO OO Yo YOXOXOR OXOXOJ OO ROXOOX O OX YO XOYOROXOXOJOYOYOXCXOYOROXO) treatment to the railroad. Southern Paciflc Company,” he betrayed guilty knowledge when he admitted to Herrin would void the contract and he would unfairness WILL - 5-B-§-N-E-E-5- 5885 8-8-0-E-EE o088 — B0 (4] (] 000C0020000000000000C0C000000V0000QC0C00000000000D IAM R. HEARST'S CONTRACT, ITS APPROVAL AND ASSIGNMENT OF THE ILL-GOTTEN GAINS. This Is the Contract Entered Info Between W. R. Hearst and the Southern Pacific Company in Accordance With the Secret Agreement. SAN FRANCISCO, June 29, 1892, & C. M. Palmer Esq., Business Manager of the Examiner, San Francisco, Dear Sir: We hereby agree to engage space in the Grand Special World’s Fair edition of @ the San Francisco Examiner, matter to be furnished by us, including cuts, of twenty pages g or one hundred and forty columns, for which the Southern Pacific Company agrees to pay o thirty thousand dollars. ($30,000), gold coin of the United States, payable at the rate of one gl thousand dollars ($1000) per month, the first monthly installment to become due and pay- °+ able August 31, 1892, and running thence at the rate of one thousand dollars per month, or in larger installments, at the option of the Southern Pacific Company; and all in accordance with an agreement entered into between the Examiner o management and C. F. Crocker, A. N. Towne and William H. Milis, on behalf om of the Southern Pacific Companys; it being understood that the said edition shall g. have a minimum issue of five hundred thousand copies, and the same shall be published ¢ simultaneously in San Francisco and Chicago, on or about the date of the official opening OT of the Columbian Exposition. And it is further agreed that the said matter shall be subject of enlargement, alter- o= ation and revision at the option of the Southern Pacific Company at any time prior to © February 1, 1893. Yours truly, W. H. MILLS, for the Southern Pacific Company. - o CHARLES F. CROCKER, Vice-President. San Francisco, July 21, 1893. Colonel Crocker Approves the Contract in Accordance With the Secret Agreement. The above contract was duly entered into by the Southern Pacific Company, and the money will be paid by the treasurer of the company to the San Francisco Examiner or order when due according to the terms thereof. CHARLES F. CROCKER, Vice-President. San Francisco, July 21, 1893. Hearst's Assignment of Boodle in Accordanc: With the Secret Agreement. For value received I hereby assign the within claim against the Southern Pacific om Company, balance due théreon at this date being $19,000, to the First National Bank of | San Francisco. Witness:. I. C. STUMP. i 0Q00000C00000000000000000000000000000000000000000000 —E—-a-a -8R -n-E-T- H—_—fl—l—.—l—l—.—l-.—. Proprictor of the Exam- iner Stung by the Expose. He Was Paid to Be Decent and Then Refused to Remain Bought. Examiner had fairly treated the rail- | not expect the balance to be paid. Now road company, and that if you thought | there is a consecutive statement of the it had not done so you would not ex- | steps in this extortion of blackmail pect the company to make any further | from its inception, in the spring of 1892, payments on the above-mentioned con- | to ‘Hearst’s violation of his blackmall tract. * * * It was certainly a part|treaty in 1894, and his admission to of the contract between the Examiner | Herrin that if he had not stayed bought and the railroad company that the Ex- | he would not expect the payment of the aminer should and would accord fair | balance of his price. We reproduce a In view of | copy of that secret agreement, the orig- this contract I do not assume for a|inal is in existence and we will repro- moment that you would insist upon the | duce a fac-simile of it. railroad’s paying the Examiner the full | sum of $30,000 if the Examiner had not, | is entitled to full and free publication on its part, fully performed the stipu- | of the exact form in which he sold and lations made on its behalf.” Why did Hearst say to Herrin that, | cific Company and he shall have it. His if he thought the Examiner had not | blackguard attack on Mr. Mills s in- treated the railroad fairly he would |tended to divert public attention from not expect further payment on a con- | the real issue. The public will not be tract which in its own text said noth- |affeeted unfavorably toward Mr. Mills ing about falr treatment as one of its | by that attack, for every decent man conditions, if there were no other and | will understand that he has not chosen precedent agreement made a part of the | to purchase “Immunity” from Hearst's contract in the clause: “and all in ac- | lying and blackguardism. cordance with an agreement entered into betwéen the Examiner manage- | ment we said there was a simple way ment and C. F. Crocker, A. N. Towne | to the judicial finding of the facts in and Willilam H. Mills, on behalf of the | this matter. If there were.no secret of which | Plackmail agreement, referred to in the This blackmailing blackguard Hearst conveyed himself to the Southern Pa- In the beginning of this plain state- advertising contract of June 29, 1892, Continued on Sixth Page. B-H-E—-E—-E-N ol [-] -n- 00000000000 000000 -a-E-u-E-E-FN Cal.— ($1000) © — July 24, 1893. [+ The Examiner, °= 4 W. R. HEARST 1e - om - T