Evening star. [volume] (Washington, D.C.) 1854-1972, 1900-06-16
THE ASSOCIATED PRESS
FACTS LEADING UP TO THE TEN
PORARY INJUNCTION.
Newspapers Are Trying to Comply
With the Law, Not to
Evade 1t.
From the New York Times.

The allegations upon which temporary
injunction has been obtained In Illinois to
restrain the incorporators Of the Assocfa-
ted Press recently organized under the laws
of New York from doing business might fill
the public mind with wrong Impressions If
the actual facts were not set forth. The
ex parte statements upon which the tenn
porary writ was secured are calculated to
create the belief that the newspapers of
the country are engaged in an attempt to
evade the law. A consideration of the steps
that have recently been taken will show
that they were prompted by desire to
comply with the law by putting the busi-
ness of the Associated Press upon a diff
ferent basis and conducting it in manner
not obnoxious to the laws Of any state in
the Union.
The Associated Press of Illinois has for
some years served almost the entire press
Of the country with news. In decision
rendered by the Illinois supreme court 1t
was recently declared to be. both by the
avowed purpose of its creation and the
manner in which it had conducted its bust
ness, Il corporation charged with a public
interest, and subject to the limitations and
the obligs tons imposed by the law of com
mon carrier 1t was further declared to be
carrying on its business in an Illegal man
ner; this gave rise to very grave doubts
whether it could carry on its business at
all under its existing organization and the
law as interpreted by the supreme court of
Illinois. 1t being imperatively necessary
that the business should be continued, a
new corporation was formed under the laws
Of New York, called the Associated Press
Its incorporatorS are now charged in the
Chicago injunction suit with the following
offenses:
Conspiring and confederating together to
destroy the business of the Associated
Press of Illinois; that in pursuance of such
laws which are in line with and substan-
tally similar to those previously adopted
by the Associated Press Of Illinois, the
operation OF which was declared illegal by
the supreme court of Illinois; that said by
laws of the Associated Press of Illinois
were so adopted for the purpose of carry
ing out and calculating an illegal object,
which was sought to be accomplished by
the Associated Press of Illinois under its
former bylaws.
The objects for which the Associated
Press of Illinois were created were stated
in its charter TO be:
To buy, gather and accumulate informa-
ton and news; to vend, supply, distribute
and publish the same; to purchase erect,
operate and sell telegraph and telephone
lines and other means OF transmitting
news: to publish periodicals: to make and
deal in periodicals and other goods, wares
and merchandise.
The corporation had never actually en-
gagged in the business of operating tele-
RrCDn or telephone lines, nor n1Q II per-
formed any Of the functions of a common
carrier. 1t had even amended its charter,
surrendering these powers. 1t was never
theless declared to be q corporation af-
fected with a public interest and bound to
sell it's news 10 all corners, just rail-
road must sell its tickets to all who wish
to buy.
The Associated Press incorporated in New
York has these declared purposes:
The incorporators of this association are
certain persons who. owning or represent
ing newspapers, unite in mutual and CO.
OF erative organization for the collection
and interchange. with greater economy and
efficiency, Of intelligence for publication
in the newspapers owned or represented
by them. The objects and purposes
for which the corporation is formed are to
gather, obtain and procure by Its own in
strumentalities by exchange with its own
members. and by any other appropriate
means, any and all kinds Of information
and intelligence, Geographic and otherwise.
for the use and benefit of its members, and
to furnish and supply the same for publlca-
ton in the newspapers owned or repre-
scented by them under and subject to such
regulations, conditions and limitations as
may be prescribed by the bylaws: and the
ton of it's members The corpora
ton is not to make profit, nor to make
or declare dividends, and is not to engage
In the business of selling intelligence nor
traffic in the same.
1t must be plain to any candid mind that
the newspapers have here sought to divest
themselves of the valuable powers that
gave to their Illinois association the char
acter of public corporation. They ask
no such liberal grant of authority as that
corporation originally possessed. So far
from seeking to effectuate an illegal object
they have voluntarily restricted the OBJ
jectS of their Incorporation to the bare eS-
sentials of the news collecting and distrib-
uting service. They have cut off all sur
plusage in order that they might be en-
ahled to do business in legal manner, re-
speeding in all ways the decision of the
Illinois court and striving to conform in
every particular with its Interpretation of
the laws.
Every newspaper in the country under
stands that it is the wish and purpose of
the new corporation to transfer to itself
by friendly substitution the business and
all the membership and clientage Of the
out in the cold. Nobody, not even the COM
plainant in this action, Is to suffer any
diminution of right or privilege. Every
newspaper taking the service of the old
corporation will receive the same service
from the new. There are advantages even
in the new membership. The Illinois cor
poration required newspapers taking its
service to make contracts for ninety-nine
years. Membership in the new Associated
Press Is terminable on six months notice
from the member. There are no contracts.
Any newspaper in the country may be
elected a member by the affirmative vote
of four-fifths of all the members
There is evidently nothing in the nature of
an attempt to evade the law or to do any
unlawful thing In the forming of this new
corporation. This view is sustained by the
opinions of counsel. Writing of the pur-
poses of the Associated Press Mr.. F. b.
Jennings of the firm of Stetson, Jennings
& Russell says:
These purposes. it seems to be conceded,
can no longer be accomplished through the
Illinois association.
I think they can best be accomplished in
the form of a cooperative association, and
I have accordingly advised the association
of the Associated Press. the present corpo-
ration under the membership corporation
law of New York. The highest court Of
that state has already approved as legal
and valid a corporation having substan-
TALLY the same purposes, and the member
ship law of the state provides, better than
any other Of which am aware, for the
ACCOMPLISHMENT of the desired results.
Mr.. John G. johnson Of the Philadelphia
bar says:
/ think that the Associated Press, as or
ganized under the laws of Illinois, could
not possibly accomplish its purposes after
the decisions which had been rendered.
In my judgment the laws Of New York
permit the Associated Press to be organ
ised a. Q membership corporation. Such