The Birmingham age-herald., 1918-12-24

oOSldGC J uSClC0 ltuSy, uPlOlu right in news and the complai fusing to interfere with injuncl International News Service fro
 Bribing employees of newspapers to fur nish Associated Press news before pub lication for transmission to the defend ants clients;
 Inducing Associated PresS members to violate it's bylaws by permitting the defendant to obtain news before publica- tion; and by
 Copying news from bulletin boards and from early editions of Associated Press newspapers and selling it either bodily or after rewriting.
 TWO MINORITY OPINIONS
 Two minority opinions were delivered. Associate Justice Brandes dissented entirely, declaring that while the injus- tice of the use of unearned news matter by competitor was obvious, the de- fendant had acted without misrepre sentation and he regarded the majority opinion as laying down dangerous opinion which might result in the denial to great number of people of news that only the Associated Press secures He suggested that there should be legisla-
 
 Associate Justice Holmes delivered a brief opinion in which he announced that Associate Justice McKenna joined, holding that fraud on the part of the defendant in palming off the com plainants news as it's own constituted the only grounds of action and that with out legislation the only remedy to be ap- piled was to grant an injunction requir- ing the International News Service to credit to the Associated Press all printed news used within certain number of hours after publication by Associated Press papers.
 TEXT OF OPINION
 The full text of the majority opin- ion follows:
 The parties are competitors in the gathering and distributor of news and it's publication for profit in newspa- pers throughout the United States. The Associated Press, which was com plainant in the district court, Is a cooperative organization, incorpora- ted under the membership corporations law of the state of New York, its mem bers being individuals who are either proprietors or representatives of about $50 daily newspapers published in all parts of the United States. That cor poration may be organized under that act for the purpose of gathering news for the use and benefit of it's mem bers for publication in newspapers owned or represented by them. is rec ognzed by an amendment enacted in 1901 Claws New York, 1901, chapter 436). Complainant gathers in all parts of the world, by means of various in- strumentalities of it's own, by ex- change with it's members. and by other appropriate means, news and intelli- gence of current and recent events of interest to newspaper readers and dis tributes 1t daily to its members for publication in their newspapers The cost of the service, amounting approxi- mately to $3,500,000 per annum, is as- sessed upon the members and becomes part of their cost of operation, to be recouped, presumably with profit. the publication of their several news papers Under compliments bylaws, each member agrees upon assuming membership that news received through comp1ainant's service is re- ceived exclusively for publication in particular newspaper, language and place specified in the certificate of membership. that no other use of it shall be permitted and that no member shall furnish or permit anyone in his employ or connected with his news paper to furnish any of complainant's news in advance of publication to any person not member. And each mem be- is required to gather the local news of his district and supply 1t to the Associated Press and to no ono else.
 SERVES 400 PAPERS
 Defendant is a corporation organized under the laws of the state of New York. whose business is the gather ing and selling of news to it's cus- toners and clients. consisting of news papers published throughout the Uni- ted States, under contracts by which n,.tu tn fc of cfofo Il times for defendants service. It has widespread news gathering agencies; the cost of it's operation amounts, it is said. to more than $2,000.000 per an- mum; and it serves about 400 newspa- pers in the various cities of the Uni- ted States and abroad, a few of which are represented, also, in the member ship of the Associated Press.
 'The parties are in the keenest compe- tition between themselves in the distribu- ton of news throughout the United States; and so, as rule, are the news papers that they serve, in their several districts.
 Complainant in the bill. defendant in its answer. have set forth in almost identical terms the rather obvious cir cumstances and conditions under which their business is conducted. The value of the service. and of the news furnished. depends upon the promptness of trans
 
 and impartiality of the news; it being essential that the news be transmitted to members or subscribers as early or earlier than similar information can be furnished to competing newspapers by other news services, and that the news furnished by each agency shall not be furnished to newspapers which do not contribute to the expense of gathering it. And further, to quote from the answer: Prompt knowledge and publication of worldwide news is essential to the con duct of a modern newspaper, and by reasons of the enormous expense incident to the gathering and distribution of such news, the only practical way in which a proprietor of newspaper can obtain the same is. either through cooperation with a considerable number of other newspaper proprietors in the work of collecting and distributing such news, and the equitable division with them of the expenses thereof, or by the purchase of such news from some existing agency engaged in that business.
 ASK RESTRAINT OF PIRACY
 ..The bill was filed to restrain the prat- ing of complainant'ss news by defendant in three ways First. by bribing em- ployes of newspapers published by com plainant's members to furnish Associated Press news to defendant before publica- tion for transmission by telegraph and telephone to defendants clients for pub lication by them; second. by inducing Associated Press members to violate it's <y-laws and permit defendant to ob-
 GCestinued on Page Two.)