Evening star., 1915-03-17

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-
gagged is Interstate commerce "a ques-
| tion not free from doubt), 1 am never
theless of the opinion that 1t is no v1o-
lation of the antitrust act for a group
of newspapers to form an association
to collect and distribute news for their
common benefit and to that end to
agree to furnish the news collected oS
them only to each other or to the as
sociation; provided that no attempt IS
made to prevent members from pur-
chasing or otherwise obtaining news
from rival agencies. Ana II tnat Is
true the corollary must be true. name
ly. that newspapers desiring to torn
and maintain such an orSan1zatlon
may determine who shall be and who
shall not be their associates.
Not an Unlawful Monopoly.
This, of course. is not to say that
such anaassociation 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
qurement that members of the asso-
citation shall not furnish the news col
lected by them to any one outside the
association and on the restrictions as
to membership.
LAS regards the first grounds of COM
plaint, assuming as l do that the collec-
tion and distribution of news among the
several states is interstate trade OF
commerce, any bylaw or other regu-
lation adopted by the Associated Press
q effect
venting or seriously hindering its
members from purchasing or other
wise obtaining news from rlvai
agency would be, ! think, restraint
an attempt to monopolize. The con-
tention that the Associated Press mas
imposed such regulation upon its
membership. or at least has the power
to do so, has a foundation in section Z
of Article VIII of the bylaws. which
reads as follows:
Protecting News.
Experience having shown that it is
very difficult, if not impossible, TO
avoid or prevent violation of the rules
prescribed by the last preceding sec
ton. or to detect or prove any such
violation. if the members are permitted
to purchase news from other associ-
ations. and that such purchase may be
seriously prejudcial to the interest and
welfare of this corporation and rts
members, the board of directors may,
in their discretion. forbid the members
to purchase intelligence from any other
such association.
when the board of directors by a
vote of two-thirdS of all it's members
shall decide and notify any member
that the purchase receipt OF news
from any other person, firm, corpora
ton or association. not a member of
corporation by a member or any other
action by such member. establishes a
condition that will be likely to permit
the news of the corporation to be dis
closed to unauthorized persons. such
members shall Immediately discontinue
purchasing or receiving such news. or
such other Objectionable action. The
decision of the board of directors as
to the establishment of such condition
shall be final, and the fact shall not
thereafter be open to question by a
member.
1.-The president of the Associated Press
law has not been exercised. AS ] under
stand the complainant disputes that as
sertion. 1t is not necessary, however.
for me to determine that issue Of fact,
since my conclusion is that this bylaw,
whether it has been enforced or not, should
be abrogated. ! am advised by the preS
dent of the Associated Press that that
will be done promptly.
Resolution Quoted.
The following resolution of the board
Of directors Of the. Associated Press is