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VOLUME LXXXIT.— NO. 146.
HEARST VALUED HIS SILENCE
AT THIRTY THOUSAND DOLLARS
A Futile Effort to Time-
Lock His Malignant
A Great Corporation's Pleading at
the Feet of a Deliberate
The Call has reproduced and com
mented on the secret contract between
the Examiner and the Southern Pa
cific Company, in which Hearst through
his representative agreed not to be
malicious, malignant nor to misrepre
sent the interests of that corporation
for a certain time. Mr. Hearst, con
fronted with the indisputable evidence
of his turpitude, shrieks "forgery" and
makes a personal attack on Mr. W. H.
Mills. In justice to the latter gentle
man The Call acquits him of any con
nection with the exposure of this black
mailing scheme of the Examiner. No
one connected 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
fcf»B no .'ntereat In doing, as he has had
no connection with anything that has
appeared in The Call.
As well might the Examiner make
mouths 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
disprove them, without waiting for a
suit by Mr. Mills or anybody else for an
opportunity to prove that he is not a
In June, 1892, a secret agreement was
made and entered into by and between
the Examiner and the Southern Pa
cific Company. This agreement, which
waß the basis of the open contract for
advertising, contains these stipulations:
The company (is to enjoy immunity
from hostility in the columns of the Ex
aminer and) is not to be the victim of
malirious attack of criticism or of mis-
representation; that the Examiner will
rot 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 maligni'y,
and that such criticism as may be found
necessary to keep and maintain the con-
fidence of the public, to the 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. Mills
Baying in writing that it was his un-
HEARST'S SECRET AGREEMENT WITH THE
SOUTHERN PACIFIC COMPANY
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
wiH 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.
COLONEL CROCKER: The
above is my understand
ing. How does it conform
to your understanding?
W. H. MILLS.
The San Francisco Call
derstandlng 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,
1592, 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,
and that open contract contained this
"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
behalf of the Southern Pacific Com
That 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
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 $8000 had been paid by
April 25, 1893, and on June 8, $2000 more
was paid, making practically a pay
ment of $10,000 before the advertising
On July 24, 1893, W. R. Hearst
hypothecated this open contract to the
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 certified
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'sVun
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-
This agrees with my
understanding quite fully.
Certainly nothing less
would b,e satisfactory.
CHARLES F. CROCKER.
SAN FRANCISCO, MONDAY, OCTOBER 24, 1898.
LONG GREEN SEEKS TO SAVE HEARST FIRST — MAGUIRE AND PHELAN MUST
NOW SWIM FOR THEMSELVES.
ally hypothecated that contract with
the clause which made the secret agree
ment a part of It. and with Crocker's
indorsement of its validity if perform
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 rajlfoad. On
September 24 Colonel Crocker wrote
"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-
As I understand the
talk the above covers the
A. N. TOWNE.
THE BOODLE AND
These Are the Amounts
and Dates When Paid to
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
MONARCH OF THE DAILIES.
July 21, 1892.
W. H. Mills, Southern Pacific
To Examiner, Dr.
June 4, 1893, for ad
Fair edition $80,000
Sept. 1, 1892, by cash.. 1,000
October 1, by cash 1,000
November 23 »■ 1,000
February 16 " 1,600
April 26 " 3,500
June 8 " 2,000
July 10 " 1,000
Balance - $19,000
Aug. 10, paid on acet.. $1,000
Sep. 11 M " ... 1,000
Oct. 10 •• " ... 1,000
Nov. 10 " " ... 1,000
Dec. 10 " " ... 1,000
Jan. 10 " " ... 1,000
Feb. 14 " " ... 1,000
March 12 " " .... 1,000
April 11 " " .... 1,000
May 10 " M .... 1,000
June 11 " " .... 1,000
aminer would accord to the railroad
company fair treatment In its columns.
Mr. Herrln 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
WILLIAM R. HEARST'S CONTRACT,
ITS APPROVAL AND ASSIGNMENT
OF THE ILL-GOTTEN GAINS.
This Is the Contract Entered Into Between W. R. Hearst and the Southern
Pacific Company in Accordance With the Secret Agreement.
C. M. Palmer Esq., Business Manager of the Examiner, San Francisco, Cal. —
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
or one hundred and forty columns, for which the Southern Pacific Company agrees to pay
thirty thousand dollars, ($30,000), gold coin of the United States, payable at the rate of one
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 ($1000)
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
management and C. F. Crocker, A. N. Towneand William H. Mills, on behalf
of the Southern Pacific Company; it being understood that the < said edition shall
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
of the Columbian Exposition.
And it is further agreed that the said matter shall be subject of enlargement, alter
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. .
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 o»*
order when due according to the terms thereof.
CHARLES F. CROCKER, Vice-President.
San Francisco, July 21, 1893.
Hearst's Assignment of Boodle in Accordance With the Secret Agreement.
July 24, 1893.
For value received I hereby assign the within claim against the Southern Pacific
Company, balance due theYeon at this date being $19,000, to the First National Bank of
San Francisco. The Examiner.
Witness: I. C. STUMP, . _ * W. R. HEARST \
Proprietor of the Exam*
iner Stung by the
He Was Paid to Be Decent and
Then Refused to Remain
Examiner had fairly treated the rail
road company, and that if you thought
it had not done so you would not ex
pect the company to make any further
payments on the above-mentioned con
tract. • • • It was certainly a part
of the contract between the Examiner
and the railroad company that the Ex
aminer should and would accord fair
treatment to the railroad. In view of
this contract I do not assume for a
moment that you would insist upon the
railroad's paying the Examiner the full
sum of $30,000 if the Examiner had not,
on its part, fully performed the stipu
lations made on its behalf."
Why did Hearst say to Herrin that,
if he thought the Examiner had not
treated the railroad fairly he would
not expect further payment on a con
tract which in its own text said noth
ing about fair treatment a 8 one of its
conditions, if there were no other and
precedent agreement made a part of the
contract in the clause: "aTid all in ac
cordance with an agreement entered
into between the Examiner manage
ment and C. F. Crocker, A. N. Towne
and William H. Mills, on behalf of the
Southern Pacific Company," of which
he betrayed guilty knowledge when he
admitted to Herrin that unfairness
would void the contract and he would
SAN FRANCISCO, June 29, 1892.
PRICE FIVE CENTS.
not expect the balance to be paid. Now
there is a consecutive statement of the
steps In this extortion of blackmail
from its inception, in the spring of 1892,
to Hearst's violation of his blackmail
treaty in 1894, and his admission to
Herrin that if he had not stayed bought
he would not expect the payment of the
balance of his price. We reproduce a
copy of that secret agreement, the orig
inal is in existence and we will repro
duce a fac-simile of it.
This blackmailing blackguard Hearst
is entitled to full and free publication
of the exact form in which he sold and
conveyed himself to the Southern Pa
cific Company and he shall have it. His
blackguard attack on Mr. Mills is in
tended to divert public attention from
the real issue. The public will not be
affected unfavorably toward Mr. Mills
by that attack, for every decent man
will Understand that he has not chosen
to purchase "immunity" from Hearst's
lying and blackguardism.
In the beginning of this plain state
ment we said there was a simple way
to the Judicial finding of the facts in
this matter. If there were no secret
blackmail agreement, referred to In the
advertising contract of June 29, 1892,
Continued on Sixth Page.