New-York tribune., 1918-12-14
Counsel for Publisher, in
Court Argument, Admits
the Charges of Vendors
Redress Right Is Denied
Judge Told Newsdealers
Must Purchase Papers
Designated by Association

r. Hearst's legal department, told
Justice Russell Benedict in the Supreme
Court, in Brooklyn, yesterday that
Hearst and his allies in the Publishers,
Association have the. right to blacklist
any newsdealer who may incur Hearst's
i'll will, and that the victim. whose
business may be injured or DESTROYED
by such blacklist, has no remedy ..
law or equity
Mr.. DeFord made this declaration IN
the course Of a two-hour argument for
the dismissal Of Joseph A. Su.taa's
suit for a permanent injunction re-
straining Hearst and his allies from
cutting off his supply Of papers other
than "Thc American" and The jour
raj" because, in Difference to the
wishes OF his patriotic customers. he
had refused to handle the Hearst pab-
locations. Failure OF the court to dis.
miss, Mr. DeFord 4rgued, would ra-
suit in food Of similar suits 5y
members OF the class represented bv
Sultan" Deepite this argument. JUS
tice Benedict continued the injunction
pending a decision on the facts ss
submitted and on briefs. which must
be filed by Tuesday.
Admits Dealers Complain
Mr. DeFord in his argument, ad-
mitted that the newsdealers IS q class
are eager to escape from the Hearst
meshes. They are, he said. unable to
DO this Of their own strength, and
therefore, he charged. sought 10 make
use of the courts as buttress for
their case.
Lemuel z. Quigg. counsel for Sultan,
in the argument for The continuance
of the injunction pending . trial Of
the case on its merits. charged Hearst
and his allies in the Publishers Asso-
citation and the American News Com
pany and its subsidiaries with partic.
pating in a conspiracy to accomplish
unlawful objects by unlawful means.
This he set up as in violation of the
Donnely antitrust law end the bus-
ness law of the state
Hearst and his allies, he said we're
banded together by an agreement to
prevent competition in the price of
papers and to restrain the freedom of
Sultan as newsdealer,. to obtain and
maintain a monopoly in violation of
law and to force Sultan, under penalty
of being put out of business. to buy
papers in such quantities as they may
agree upon irrespective of his needs
or the wishes of his customers and
irrespective of his ability to sell them
and remain in business.
The affidavits filed in aswer to
those of Sultan. he said, admitted all
that was charged and merely sought to
justify the action taken by the allied
publishers and news companies.
Protest by Public
after the strike of the newsdeal-
ers," he said, there was a great pub
lie protest against the sale of The
American and The Journal
These two papers" said Mr. Quigg,
"are published by the Star Company,
another name for William Randolph
Hearst. This prejudice arose on ac-
count of the seditious and disloyal
articles he had printed after war was
declared and following a course of pro-
German propaganda conducted ever
since the European war began Sultan
found this feeling against the Hearst
papers so intense he made up his mind
not to sell them, as he would do
better business without them
Then Sultans papers We're cut off,
Mr.. Qulgg said, taking up the eXplana
tion of Hearst's allies that they had no
desire to back him UP in anything
wrong, but were protecting themselves
against action they feared newsdeal
ers might take against "The Times
or "The World" if they were allowed
to refuse to handle Hearst papers.
Says Dealers Profit
mo man." he added, replying 10 this
explanation, can do an unlawful thing
O nd t.a
theory that he is anticipating some
unlawful action another person may
take"
G. B. Plante. of the Morris, Plante &
SAKE. counsel for the Sun Printing
and Publishing Company and the Pub
lshers' Association, in his argument
asserted that since the price OF papers
had been marked up to two cents the
dealers had made more money than
under the one cent rate. though they
had insisted that the rate Of $40
hundred, which they are compelled u
pay by all the papers except The
Tribune, cut down their earnings
He quoted Frank b. Flaherty. OF
"The Herald" as saying that Sultan
was a member of newsdealers' COM
mittee which had threatened to fight
the papers IN turn unless they agreed
to allow the dealers more profit
Acting on that information.' said he,
land believing the purpose of the deal
ers was to attack one paper after an
other. forcing each in turn to reduce
its wholesale rates. the publishers
agreed to refuse to sell to any dealer
who might refuse to sell any paper.
Lawyer Defends Hearst
He admitted that the association had
ordered the American News Company
not to deliver papers to dealers who
refused to buy Hearst papers, but
this. he asserted. was not in restraint
of trade. He further asserted that
Sultan, as an individual, was not en-
t!tled to relief under the laws pro-
hibiting combinations to restrain
trade, quoting various decisions to sus
tain this contention.
Mr.. De Ford, in following Mr.. Plantc.
reclted the story of the newsdealers
strike to get papers for 81 30 a hun
dred, and said that about this time The
Tribune injected itself into the case
because 1t saw an opportunity to cali
attention to its "propaganda aganst
Mr.. Hearst" Sultan. he said, was an
employe of The Tribune, and had been
inspired by it to bring suit.
THE New York American" or The
New York Journal" said he, never
printed disloyal or seditious linc'
The best proof of that is that no
public officer has ever made COM
paint Of either sedition or disloyalty
against either"
J r. Donnellv foi. the "StaatS-Zel-