A few years ago the editor of the “News” of Santa Cruz, California, applied for the Associated Press franchise for his paper. The San Francisco manager of the Associated Press refused it, and gave this explanation, according to a statement by the editor of the “News”:
The San Francisco daily papers owned all the Associated Press franchises for that city, and they also controlled a vast outlying territory, including Santa Cruz, eighty miles away, and would refuse to permit Associated Press dispatches to be printed by me or anyone else in Santa Cruz.
There is only one way to get by this barrier, and that is to pay the price. Joseph A. Scranton, proprietor of the “Scranton Republican,” forced a man who wished to start another newspaper in Scranton to pay him ten thousand dollars before he could have the Associated Press franchise for that small city. When the “San Francisco Globe” wanted the Associated Press franchise, it had to buy the “San Francisco Post” at the price of a hundred and ten thousand dollars. Admittedly the “Post” had no value, it was not a competitor in any sense; the price paid was for the franchise alone—and it was stated by the “San Francisco Star” that the greater part of the value consisted in a lower telegraph rate, a special privilege granted by the Western Union telegraph company to the Associated Press.
Also the Associated Press, being a membership corporation or club, possesses the legal right to expel and to discipline its members. This right it has specifically asserted in its charter; it may expel a member “for any conduct on his part, or on the part of anyone in his employ or connected with his newspaper, which in its absolute discretion it shall deem of such a character as to be prejudicial to the welfare and interest of the corporation and its members, or to justify such expulsion. The action of the members of the corporation in such regard shall be final, and there shall be no right of appeal or review of such action.”
This, you perceive, is power to destroy any newspaper overnight. Not merely may a franchise worth two hundred thousand dollars be wiped out at the whim of the little controlling oligarchy; the entire value of the newspaper may be destroyed; for of course a big morning newspaper cannot exist without its franchise. The masters of the “A. P.” hold this whip over the head of every member; and Will Irwin tells what use they make of it:
Two or three liberal publishers have expressed to me, after mutual pledges of confidence, their opinion of the “A P. cinch.” And they have finished by saying something like this:
“But for heaven’s sake don’t quote me in print, and don’t tell anyone I’ve said this. The fine for such an offense runs from fifty thousand dollars up!”
In my story of the Colorado coal-strike, I showed you the “A. P.” suppressing news, and the newspapers of the country, without one single exception, keeping silence about it. I showed you one bold managing editor promising to tell the truth, and then suddenly stricken dumb, and not carrying out his promise. Now I have shown you the meaning of the phenomenon.
And yet, in spite of everything, members of the Associated Press do “kick”; they “kick” repeatedly, and word of their “kicks” gets out. Fremont Older complained repeatedly, and so did Van Valkenburg, of the “Philadelphia North American.” Herman Ridder complained—as Mr. Stone himself admitted when a Senate committee pinned him down. I quote a significant colloquy from a Senate “lobby” investigation:
Senator LaFollette: Mr. Stone, has there ever been any complaint made by members of your association of unfairness on the part of the manager or the management of the Association regarding news?