Omaha daily bee., 1915-03-18
ASSOCIATED PRESS
GIVEN CLEAN BILL
Attorney General Gregory in Elk
tended Statement Says 0rgani-
cation is Legal.
ANTITRUST MOVE HAS NO MERIT

Tor the sun printing ana PUBLISHING
association OF New York. holds that
there is no ground for action by the
federal authorities against the Asso-
ciated Press under the antitrust
law. The attorney generals letter,
dated March ~ and made public to-
day. in part follows:
Il have given consideration TO tho com
plant against the Associated Press for
alleged violation OF the federal antitrust
ACT. presented by my predecessor by you
as counsel for the sun Printing and Pub
fishing association
AIIeEafioas In Complaint.
The principal grounds Of complaint
IL Thar the members Of the Asso-
oiated Press are prevented or at least
seriously hindered from obtaining news
by purchase or otherwise from any rival
agency
-. That the members OF the Asso-
ciated Press are prohibited from furnish
ing the news collected by them respect
lively to any newspaper which is not
member.
% That through the operation OF the
right Of protest above described a news
paper in given locality applying for
membership cannot be elected without
the consent OF the members IN that To-
caiity.
Assuming that the kind OF service in
which the Associated Press Is engaged Is
interstate commerce, Ia question not free
from doubt. am nevertheless OF the
opinion that It Is no violation Of the anti
trust act for group of newspapers to
form an association 10 collect and dis
tribute news for their common benefit
and 20 that end TO agree to furnish the
news collected by them only to each
other or 20 the association; provided. that
no attempt Is made 10 prevent members
from purchasing or otherwise obtaining
news from rival agencies. And n that IL
true the coroIIary must be true. namely.
that newspapers desiring to form and
maintain such an organization may de-
termine who shall be and who shall not
be their associates.
This, Of course. Il not to say that auch
an association might not develop into
an unlawful monopoly. The facts ad-
duced. however, In my opinion. do not
show that that has happened in the case
o. the Associated Press.
This disposes OF the second ana third
grounds OF complaint based on the re-
qulrenents that members Of the associa-
tloa shall not furnish the news collected
by them 70 any one outside tho assocIa.
tion, and on the restrictions as to men,
bership.
No Attempt at Monopoly.
'Asfresards the first ground OF COM
plant, assuming as I do that the col
lection and distribution Of news among
the several states IL interstate trade or
commerce. any bylaw or other resula-
ton adopted by the Associated Press
which would have the effect OF prevent
ing or seriously hindering tie members
from purchasing or otherwise obtaining
news from q rival agency would be. I
think. restraint upon interstate trade
OF commerce., and an attempt to monopo-
Ike. The contention that the Associated
Press has imposed such regulation upon
itt membership. or az least has the power
70 90 80, has Foundation In section OF
follows:
Importance having shown that a A
very difficult. IL not ImpoSslble' 10 avoid
or prevent violation Of the rules pre-
scriDed BY the last preceding section. or
70 20 aeseet or prove any such violation n
tne mefnoorB are permitted 70 purchase
news from other associations, ana thst
suSn porchase may be seriously pre-
judicial 70 the interest and welfare Of
sn,s COOPERATION and It's members, the
hoard hoard o. directors may Ia their dsscro-
ilQn. forbid tho members 70 purchase in
ton.
Of two-thirds OF all its monbern ahau a.
clue ana notify any member that the
purchase or receipt OF news from any
ciss,arp ', ~, hrm. eornoraeion or assoc
tlon. or Represented ~ this corporation
oy nemoer or any other action BY such
member establishes condition that will
porstion 70 be disclosed 10 unauthorized
persons. such members shall inimed lately
aiseontlnue purchasing or receiving such
The decision OF the board OF directors az
10 the establishment OF such condition
shall - mai and the fact shall not there
AFTER be open % question by a member.
fne president Of the Associated Press
states that the power reserved in this
bylaw has not been exercised. AZ I IN
derstand the complainant disputes that
assertion. IL u not necessary. however,
Tor me 10 determine that issue Of fact,
since my concluaion Is that this bylaw,
whether Il has been enforced or not
s"oe'o % aoFokateu. am advised by
the president OF the Associated Press
that that viii be done promptly.
Regulation a Reasonable.
The following resolution OF the board
OF directors OF the Associated Press is
also pointed to a. an obstacle in the way
81 the members OF the Associated Press
obtaining the news OF any rival agency;
Resolved. That the placing OF An oper.
ator 81 any other news eatheFfng or dts
trtbufing asHociatinn IN the office Of an
fHrocioted Press paper Ia a step which
Establishes = condition which viii Ia
liitoly 70 permit the news OF this CORPORA
ton % be disclosed 10 unauthorized per-
sons and 80 cnoangers the inviolab Ility
~ The news service OF the Associated
treae. that Il IL seriously pretudicial to
rne Interest and welfare Of thin corp0ra,-
non and It's members and the board OF
dlrectorn- by authority Of the bylaws
hereby forbid any member OF the Asso-
dated Press from ulacing OF an operator
~ any other news gathering or distribut-
pe assoctation IN his office OF building.
FEBRUARY 10 lPol)
81 am not prepared 70 say, however.
that THIS regulation has no reasonable
relation 10 legitimate end. namely, pre-
venting Representatives OF rival aFoncies
from coming into possession before pub
fcation OF news collected BY the AssO-
eiated Press
Nor am i convinced that the regula-