New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1915-03-18
ASSOCIATED PRESS
WINS DECISION
Attorney General Gregory
Holds Regulations Not
Against the Law.

Washington, March II. - Attorney
General Gregory in letter addressed
to James VI. Beck, counsel for the Sun
Printing and Publishing Association Of
New York, holds that there is no ground
for action by the federal authorities
against The Associated Press under the
antitrust law The complaints an
swered by the Attorney Generals de-
cision are as follows:
al. That the members of The Asso-
ciated Press are prevented, or at least
seriously hindered, from obtaining
news by purchase or otherwise from
any rival agency.
"2. That the members of The Asso-
ciated Press are prohibited from fur
nishing the news collected by them re-
spectively to any newspaper which Is
not a member.
as. That through the operation Of
the right of protest above described a
newspaper in a given locality applying
for membership cannot be elected with
out the consent of the members in that
locality.
Assuming that the kind of service
in which The Associated Press is en-
gaged is interstate commerce "a ques-
ton not free from doubt, | am never
theless of the opinion that 1t is no vio-
lation of the antitrust act for a group
of newspapers to form an association
&c collect and distribute news for thei:
common benefit, and 10 that end TO
agree to furnish the news collected by
them only TO each other or to the asso-
citation; provided. that no attempt IS
made to prevent members from purchas-
ing or otherwise obtaining news from
rival agencies. And if that is true the
corollary must be true-namely. that
newspapers desiring to form and main
tain such an organization may de-
termine who shall be and who shall not
be their associates.
This. of course, is not TO say that
such an association might not develop
into an unlawful monopoly. The facts
adduced. however, in my opinion. do
not show that that has happened in
the case of The Associated Press.
This disposes of the second and
third grounds of complaint, based on
the requirement that members OF the
association shall not furnish the news
collected by them TO any one outside
the association, and on the RESTRICTION
as TO membership.
"As regards the first ground of COM
plant. assuming as | do that the col
lection and distribution of news among
the several states is interstate trade or
commerce. any bylaw or other regula-
ton adopted by The Associated Press
which '-ould have the effect OF pre-
venting or seriously hlnderlng IT'S
members from purchasing or otherwise
obtaining news from rival agency
would be, think, a restraint upon IN
terstate trade or commerce, and an at
tempt TO monOpolize.'
The contention that The Associated
Press had imposed such a restraint
Mr.. Gregory said, might be borne out
in one of the associations bylaws
which says that the board OF directors
"mav, in their discretion. forbid the
members to purchase intelligence from
any other such association But that
provision, the Attor.,y General mad
been assured by the president OF Inc
Associated Press, would be abrogated
at once. -.
In view Of the fact that members Of
The Associated Press did purchase
news from outside agencies. Mr. Greg
ory said he could not accept the view
that the ASSOCIATION was bar to com
merce. although certain Of the charter
provisions lent color to the argument.
at is perhaps unnecessary for me to
point out concludes the ATTORNEY
Generals letter. that if the sun
Printing and Publishing Association
is not satisfied with the conclusions |
have reached it may itself bring SUIT
against The Associated Press. either
for an injunction or for damages. and
thereby obtain judicial determination
as 20 The merits Of its complaint.
"Rcgretting that the pressure Of
other business entitled 10 priority as
to time of consideration has prevented
an earlier disposition of this complaint
I am. sincerely yours.
$500 1T. W. GREGORY.
Attorney General"