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EXHIBIT 55.

55a. Dry Goods Economist (September 29, 1906).

55b. Vehicle Dealer (February, 1906).

These publications are fairly representative of a class devoted to a special industry-in these particular cases the "dry goods" and the carriage and wagon " business.

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VI. "And having a legitimate list of subscribers; provided, however, that nothing herein contained shall be so construed as to admit to the second-class rate regular publications designed primarily . . . for free circulation, or for circulation at nominal rates." (Exhibit 56 to 66, inclusive.)

EXHIBIT 56.

56a. The South St. Paul Daily Reporter (Dec. 13, 1905). 56a-1. Blank "send" order.

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Description.-This publication is one of a large number of similar publications practically all of the subscriptions for which are not paid for by the individuals to whom the publication is sent, but by commission merchants, stockyard people, etc., who are interested in the circulation of the publication. Attention is invited to the blank "send" order (56a-1) for a paper from Rogers & Rogers, addressed to the publisher, requesting him to supply the paper to a person whom the publisher will claim as a subscriber, and also to a blank stop order (56a-2) from Fitch & Co., addressed to the publisher, directing him to discontinue the paper he had therefore been sending to a person he claims as a subscriber. The publication is free to the reader. 56b. The Logan Democrat (Oct. 20, 1906).

Description.—This publication represents a class for which application for entry as second-class matter is frequently made, practically all of the subscriptions for which are paid for by a person or persons running for a political office, the subscribers themselves paying nothing for the paper, but getting it free. 56c-1. Appeal to Reason (Nov. 3, 1906).

56c-2. Clipping from Appeal to Reason.

Description. The following notice appeared in this publication:

"Every socialist who reads these lines is asked to contribute $2.25 in three monthly installments of 75 cents to the Agitation League fund for the purpose of sending the Appeal during the school year, commencing December 1, to 30,000 publie school-teachers in towns where the Appeal now has no subscribers. Use the blank at the bottom of this page and let me record your name with those who think this work ought to be done."

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With this issue the Appeal Agitation League closes the Colorado campaign inaugurated some months ago. A total of $4,860.04 has been contributed, which has been expended as follows.

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This leaves a balance on hand of $326.86 to start the fund to send the Appeal to 30,000 public school teachers in towns where the Appeal has no subscribers and where no Socialist votes have been cast.

The following contributions have been made since last report. If you don't find your name there see that it appears in the next report.

For 30,000 school-teachers and 5,000,000 pupils.

APPEAL TO REASON, Girard, Kans.:

I agree to pay 75 cents per month for three months--a total of $2.25-for the purpose of sending the Appeal to 30,000 public school-teachers, commencing December and running during the school year-7 months.

I inclose

as my first remittance.

(Signed)

56d. The Homestead (November 2, 1905), Des Moines, Iowa.

Description. This is one of a numerous class of publications whose subscription lists are composed in part of so-called “paid for by others" subscriptions. It was ascertained that a large proportion (over 15,000) of the claimed subscribers were those who paid nothing for the publication themselves, but to whom subscriptions were presented by some banker or merchant doing business in the locality in which they resided. These subscriptions were paid for by the banker usually at a reduction of 50 per cent from the regular advertised subscription price-that is, 25 cents a year instead of 50 cents. The purpose of the merchants in paying for these subscriptions appeared to be to induce trade at their establishments on account of the friendly feeling the recipients of the favor would have for the donor.

It will be noticed that in all the above cases (56a to 56d, inclusive) the question of the alleged subscriber paying nothing for the publication is involved. If there be no restriction upon the number of subscriptions which may be paid for by one party for another as alleged gifts but for business reasons, then a publisher may comply with the law by getting one person to subscribe for any number of others, thereby supplying the required "legitimate list of subscribers."

EXHIBIT 57.

57a. The Michigan Issue.

Description. This case is representative of a large class of publications engaged in the advocacy of reform movements, philanthropic enterprises, etc. Donations are asked, and in connection with the terms of the pledge (see Exhibit 57a) of money is a clause which provides that a certain portion of each donation will be set aside or is to pay for the donor's subscription to the publication. The alleged “legitimate list of subscribers" to publications of this kind is usually made up entirely of subscriptions of the kind above described. The matter in the publication itself is intended to create the subscriber's interest in the work. In fact, it is not to be doubted that the publication plays no small part in the success of the movement. It induces the giving of alms, a portion of which the publisher is pleased to term a subscription.

57b. Chicago Central (June 9, 1905).

Description.--Most all of the Young Men's Christian Associations of the country publish a little bulletin containing principally, like the one exhibited, information regarding that particular association, its meetings, etc. There is placed in the pledge made in connection with the application for membership in the

association a clause providing that a certain portion of the member's annual dues is to be set aside in payment of the subscription to the publication. All memberships include the subscription to the publication, and there would be no reduction in the annual dues provided a member did not desire the paper. In other words, it costs as much to be a member and not receive the paper as to receive it; the paper is virtually thrown in with a membership. Is a list of subscribers so made up a "legitimate list of subscribers," or is the publication circulated free and therefore within the clause of the statute prohibiting the admission of publications "designed primarily for free circulation?"

EXHIBIT 58.-New England Woodmen (October, 1905).

Description.--There are a large number of publications the subscriptions to which are based upon a resolution or executive order of a committee of a society empowered to act for the society. For instance, a man will start a paper and he will submit as a list of subscribers the names of the members, the payments to be made out of the funds of the society. The individual members themselves do not subscribe for the publication.

EXHIBIT 59.—The Weekly Middle West (May 24, 1906), Grand Rapids, Mich.

Description. The matter in this publication consists almost entirely of advertising, the small amount of text being matter that had previously appeared in a Grand Rapids daily newspaper. It is a weekly. The publisher offers to send the paper for a year and place therein the subscriber's advertisement for a stated period. Under the existing law persons to whom copies of a publication are sent to prove insertion of their advertisements are regarded as subscribers. Nearly all of the subscribers claimed in this case were persons who received copies on account of being advertisers in the publication. The question for determination is, are the requirements of the law met in such a case, or does a publication of this character and this method of obtaining subscribers come within the clause of the statute prohibiting the admission of publications “designed primarily for advertising purposes, or for free circulation, or for circulation at nominal rates?'

60a. Law Notes (August, 1902). 60a-1. Copy of contract.

EXHIBIT 60.

Description. This publication is sent to persons who subscribe to the second edition American and English Encyclopædia of Law (in 32 volumes), published by the Edward Thompson Company, publishers of Law Notes. The contract (see 60a-1) entered into between the purchaser of the law books and the Edward Thompson Company provides that the price paid for the law books includes a subscription to Law Notes. There would be, however, no reduction in the price of the law books in case the purchaser thereof did not care to also receive Law Notes. In other words, the publication is in effect furnished free in connection with the sale of the law books as a sort of premium. The publishers, in view of the terms of the contract, claimed the persons to whom they sent Law Notes to be subscribers thereto.

EXHIBIT 61.

61a. Our Boys and Girls Journal (November, 1904).

Description. The publisher of this publication seemed to be conducting a publication (see the exhibit) as a means of advertising puzzle contests. Prizes were given to the winners. These prizes were usually of a value in excess of the subscription price (25 cents) of the publication. Advertisers in the publication also offered prizes for the solution of puzzles. In order to compete for prizes one had to be a subscriber to the publication. Did the alleged subscribers subscribe for the publication as such or for the chances of winning a prize in a puzzle contest? Considering the value of the prizes offered and the low price of the publication (25 cents a year), has it a legitimate list of subscribers' or would it come within the clause of the statute prohibiting the admission of publications "designed primarily for circulation at nominal rates?"

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62a. 'Melike's Bi-Monthly

EXHIBIT 62.

(Dec. 15, 1905).

Description. This publication (142 pages, 7 by 10 inches) consisted mostly of write-ups, advertising and price-list matter of the McPike Drug Company, of Kansas City, Kans. The subscription price is 10 cents a year. Five thousand copies of the publication were printed. About 2.000 were sent to claimed subscribers. About 300 of the 2,000 claimed subscribers were persons whose subscriptions were paid for by others. Two thousand copies were sent as samples.

EXHIBIT 63.

6. National Hardware Bulletin (October, 1905). 63b. National Hardware Bulletin (May, 1906).

Description.—It will be noticed from the October issue that the subscription price is $1 a year. Complaint was made that while the advertised subscription price of the publication was $1 a year- practically all subscriptions were made at the rate of 25 cents a year. Upon investigation this was found to be the fact. A citation to show cause issued, and the publisher, to overcome the rule of the Department that subscriptions made at a reduction of more than 50 per cent from the regular advertised subscription price of the publication could not be regarded as actual, met the situation by reducing the price of the publication to 50 cents a year (see the May, 1906, issue), thereby technically meeting the requirements under the law.

EXHIBIT 64.

64a. The American Stock Farm and the Advance Farmer (February, 1903), Winona, Minn.

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Description. This is an agricultural paper. The terms of subscription were as follows: Subscription price, 50 cent a year if not paid in advance. If paid in advance, 25 cents a year, or 75 cents for five years." Does the reduction in the subscription price of the publication effect "a nominal rate" and bring the publication within the prohibition of the statute?

EXHIBIT 65.

65a. The Scientific Farmer (May, 1906).

Description. The publisher of the above publication offered to other publishers 30 subscriptions each, provided they would run his (The Scientific Farmer's) advertisement in their papers. Would a list of subscribers made up in whole or in part of subscriptions of the above character be a "legitimate list of subscribers?"

EXHIBIT 66.

66b. The Daily Railway Age, Saratoga Springs, N. Y. (June 28, 1904). Description. This publication is published by the publishers of The Railway Age, entered as second-class matter at Chicago, Ill. The Daily Railway Age is published daily during the convention period of the annual conventions of the Master Carbuilders and American Railway Master Mechanics' Associations, which are held in different cities each year. Copies of this publication are sent as to subscribers to persons who have subscribed for The Railway Age, of Chicago, but who have not subscribed for The Daily Railway Age as such. The publishers of The Daily Railway Age claim these persons as subscribers by reason of their having subscribed for The Railway Age.

Schemes of publishers to increase circulation are infinite. Many other exhibits on this question can be furnished if desired. It may safely be said that the lists of subscribers of most periodicals entered as second-class matter in the United States are largely involved on account of subscriptions being taken under terms not dissimilar in some respects to those described above.

The question arising in connection with the following exhibits

(67-79, inclusive) is, whether the publications are within the following prohibition of the statute:

VII. "Provided, however, That nothing herein contained shall be so construed as to admit to the second-class rate regular publications designed primarily for advertising purposes.”—(Exhibits 67 and 79, inclusive.)

Exhibits 67 to 71 show in varying degree the practice of publishers of advertising other businesses in which they are interested. When a merchant sends his advertising matter in the mails it cost him 1 cent for each 2 ounces or fraction thereof, but if he becomes a publisher and includes such advertising matter in his publication he can distribute the same at the rate of 1 cent a pound. character are sometimes called “house organs.”

EXHIBIT 67.

67a. The Master Grocer (June, 1905). 67b. The Educator (October, 1965).

67c. The Myer Brothers' Druggist (January, 1905). 67d. Beauty and Health (June, 1905).

Publications of this

Description.—The above publications show the practice of publishers of placing in their publications display advertising or other businesses in which they are interested and in the promotion of which the publication is apparently conducted.

The Master Grocer (67a) is published by Goldberg, Bowen & Co., a San Francisco wholesale grocery firm. All of the text in it is taken from other publications. There are 104 pages of text and 574 of advertising. Of the advertising pages 504 consist of advertisements of the publishers' other businesswholesale grocery.

The Educator (67b): Most of the text in this publication consists of matter either taken (reprinted) from other publications or so-called "ready-print matter. Out of 9 pages of advertising 7 consist of advertisements of the publishers' other businesses-the sale of school books, appliances, etc.

The Myer Brothers' Druggist (67c) is made up as follows: Seven pages are devoted to an index to the previous year's issues; 31 pages is text in which there is considerable matter of the "write-up" character (textual advertising); there are 54 pages of advertising, 26 of which consist of advertisements of the publishers' other business-wholesale drugs. Twenty-four out of the 26 pages of the publishers' advertising matter consist of a price list of the drugs sold by that firm.

Beauty and Health (674): This publication is made up as follows: Twentyeight pages of text along the line of health culture and physical exercise, in which business the publisher is interested; there are 24 pages of advertising, 17 pages of which are of the other businesses of the publisher-physical culture, physical culture books, exercising appliances, etc.

EXHIBIT 68.

68a. The Byrnes Business Educator (January 26, 1906).

68b. Parks Floral Magazine (February, 1904).

68c. The Homeseeker (April, 1906).

68d. The Craftsman (October, 1902).

68e. The Alkaloidal Clinic (June, 1904).

68f. 1 to 12, inclusive, The Delineator (October, 1905, to September, 1906, inclusive).

68g. The Designer (January, 1906).

68h. New Idea (October, 1906).

Description. The above publications show in varying degree the practice of publishers placing in their publications not only display advertising, but textual advertising as well relating to their other businesses.

The Byrnes Business Educator (68a), as may be plainly seen by an examination, is published to promote the business of the Tyler Commercial College, conducted by Byrnes Brothers. Most all of the matter, except that taken (reprinted) from other publications, is in advocacy of the Byrnes system of spelling, stenography, etc.

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