The Waterbury Democrat., 1931-02-27

1 World respected not only in New York but throughout the nation in every quarter where liberality of thought. independence and freedom from entangling alliances are appre- ciated as journalistic virtues.' Tt Is obvious" he said. that th,, need for independent editorial utter ance and effort was never greater in the days of E. w. Scripps and Jo- seph Pulitzer, ST."
 The Pulitzers announced in the final edition of the world that they had sold their papers after making every possible effort to avoid it.
 But" they said. economic con- ditions have proved inexora ble."
 They pointed out that had the World been only a commercial en- terprise they could have undertaken profitable sale years before it be- came compulsory. "The trutees cannot pretend that it is anything but a painful duty to pass the World newspapers into other hands, their statement said
 But there is a fortunate mitigation m the spirit of the new ownership which is thoroughly hospitable to the World tradition. May it carry on that tradition with the fullest measure of public service and suc- cess" . Surrogate Foley's decision involved three major principles, as follows: That a sale of the World papers is just and proper
 2.-The trustees, as matter of equity. must exercise due diligence to preserve the remaining assets of the papers which admittedly have suffered economic losses.
 3.-That the court could not be converted into an auctioneer's room for reception of various bids for the World assets.
 presentation of facts. arguments. and precedents, through which ran q the interests of the estate which Jo- seph Pulitzer, Sr. had built up by his untiring energy and fearless journalism.
 After brief summariZation of the petition filed by the Pulitzer inter- ests for permission to sell their newspapers. Foley held four ques- tions had to be determined by him. These questions he outlined as fol- lows:
 1.-Despite prohibitions or limita- tions in the Pulitzer will have the trustees in the present exigency power and authority to sell the com pany's assets?
 Eff prohibition is contained in the will has the surrogate's court as matter of equity the power to modify terms of a newspaper trust and authorize sale of such assets?
 3.-Do the proofs submitted justi- fy exercise of that power?
 4.-Has the court the legal power to approve the contract of sale be- tween the Pulitzer trustees and the Scripps- Howard interests?
 Replying to the first three ques- tions. Foley held that t he trustees "have the power and general au- thority to participate as corporate officers and holders of the estate stock in the sale of the property of the company. and that the equitable powers of the surrogate's court should be invoked generally to au- thorize them to make such sale. He ruled further. in this section that the will contained an implied power of sale which might be eXer- cised in the present crisis. Moreover. he deemed it a duty for the trustees to "act for the protection of the beneficiaries of the trust in view of proofs of the worlds increasing financial losses"
 the judge ruled that he entirely lack ed power to approve the specific terms of the contract whereby the World papers were transferred to