Evening star., 1915-03-17
GREGORY UPH0[DS
ASSOCIATED PRESS
Attorney General Declares 1t
Is Not an Unlawful News
Monopoly.
NO GROUNDS FOR ACTION
UNDER ANTITRUST LAW
Newspapers Legally May Combine to
Collect Dispatches and Guard
Against Their Unauthorized Use.

Against Their Unauthorized Use.
Attorney General Gregory has writ
ten a letter addressed to James NJ
Beck. counsel for the New York Sun
Printing and Publishing Associa tion. dis
posing of the complaint against the
Associated Press for alleged violation
of the federal antitrust act made by
the Sun association.
The Attorney Generals letter. dated
March IL, makes known that there is
no ground for action by the federal au-
thorities against the Associated Press
under the antitrust act
The Attorney Generals letter is the
result of a petition filed February 5,
1914, by the Sun Printing and Publish
ing Association. asking the Attorney
General to make an investigation, and
then to institute proceedings against
the Associated Press.
Chief Point of Interest.
The chief point of interest in the At
torney Generals letter is his statement
as to the right of group of newspa-
pers to form an associa tion under
Assuming that the kind of service in
which the Associated Press is engaged
is interstate commerce Ga question not
free from doubt), / am nevertheless OF
the opinion that it is no violation of
the antitrust act for group of news
papers to form an association to collect
and distribute news for their common
benefit, and to that end to agree to fur
niSh the news collected by them only to
each other or to the association: pro-
vided that no attempt is made to pre-
vent the members from purchasing or
otherwise obtaining news from rival
agencies. If that is true the corollary
must be true, namely, that newspapers
desiring to form and maintain such an
organiza ton may determine who shall
be and who shall not be their associ-
ates.
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"
Text of Opinion.
The text of the Attorney Generals
letter is as follows:
"I have given consideration to the
complaint against the Associated Press
for alleged violations of the federal
antitrust act presented to my prede-
cessor by you as counsel for the Sun
Printing and Publishing Association
THE Associated Press was organized
under the membership corporations
law of the state of New York. Accord
ing to its certificate of incorporation
it is
IAN association of certain persons,
who, owning or representing certain
newspapers, unite in a mutual and CO.
operative organization for the collec-
tion and Interchange, with greater
g.
and intelligence for publication in the
newspapers owned or represented by
them.
Objects Of Association.
'.The objects of the association as
stated in the certificate are:
Ito gather, obtain and procure by
its own instrumentalities. by exchange
with its members and by any other ap-
propriate means any and all kinds of
information and intelligence, tele-
graphic and otherwise, for the use and
benefit of it's members, and to furnish
and and supply the same to its members
owned or represented by them, under
and subject to such regulations, con-
ditions and limitations as may be pre-
scribed by the bylaws, and the mutual
cooperation, benefit and protection of
its members.
THE certificate further provides that ::
The corporation is not to make a profit
nor to make or declare dividends and is
not to engage in the business of selling
intelligence, nor traffic in the same
Those Eligible.
.Those eligible for membership are
thus described in the bylaws, Article II,
section ]
The sole or the part owner of a news
pf
poration, limited liability company or
joint stock or other association which is
the owner of A newspaper shall be eligible
as a member of this corporation in the
way and upon and subject to the condi-
tionS and limitations hereinafter specified
provided that not more than one person
at a time shall be eligible by reason of
connection with any one newspaper No
other person shall be eligible.
Members may be elected by the af-
frmative vote of not less than four-fifths
of all the members of the corporation INV
laws. Art. Ill, sec. u.
" Members may also be elected by the
board OF directors when no meeting of the
members of the corporation is in session
but no applicant for membership can be
elected by the directors over the opnosi
ton of any member entitled to the right
to protest Cart III, sec. % The right nf
protest is the right to object to the ad-
mission of new members from a given
tciiAloi idi ulSllICt tArl. LII, ~
can only be conferred by the affirmative
vote of seven-eighths of all the members
Cart. III, Sec g..
Right to Protest.
The right of protest has no appIica
tion to the election of applicants by a
four-fifths vote of the members them
selves.
Each member is entitled TO one vote
by virtue of his membership (Art. VII,
| sec j. and also a vote for each s25
| of the bonds Of the association regis
| tered in his name up to $1,000. pro-
| vided he waive interest on the bonds
| Cart. XII, sec. 81.
! THE affairs of the corporation are
| managed by fifteen directors, who are
| elected by the members of the corpora tion
and must themselves he members (Art
| V. secs. /, =. ~.
! The cost Of maintaining the news
service of the corporation and all other
! expenses of the corporation are an
portioned among the members bv the
| board of directors in such manner AS i,
+ may deem equitable Cart TX, sec ~
Broadly stated. the news distributed
by the Associated Press comes to it in
two ways - first. from the reports
made to il by the various members of hap
penings in their respective localities
and. second, from correspondents, re-
nd