Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-03-20
COAST BILLBOARD
MONOPOLY IS HIT
Government Contends Con-
Germ Controls 80 Per Cent
of Advertising.

One Of the severest indictments Of
business practices in the outdoor adver-
Using industry was returned by the De-
partment of Justice in a statement IS
sued in connection with the final decree
lust signed in a suit instituted by the
Government against the Foster 81 Klei-
ser Co., its officers and a subsidiary
company, holding that an Illegal monop-
DIV in violation of the Sherman anti
trust act had been established in the
outdoor advertising business on the Pa
ctflc Coast.
The decree was signed by the United
States District Court for the Southern
District of California, and had been &C
cepted without contest on behalf OF the
defendants two weeks before the oate
set for the trial.
Controls Business.
The petition, the Department OF JUS
4ice said, alleged that the company con-
trolled 80 per cent OF all the ouVoGoI
advertising structures located on the
pacific Coast and transacted 80 per cent
of the total outdoor advertising business
in the West The decree enjoinS each
of the defendants from further engag-
ing in any of the Il illegal trade prac-
tices which were alleged in the petition
to have been the means employed 70
obtain the monopoly.
ACCEPTANCE of the decree by the COM
pany affords the public ana the moe
nendent advertisers, the statement SAID,
all of the relief sought in the petition
without the delays and expense incident
to prolonged litigation.
Statement by U. S.
with regard to the alleged illegal
practices involved in the suit, the De-
partment of justice statement said:
"Among the IA Illegal trade practices,
by virtue of which the defendants were
alleged to have prevented their competl-
tors from lawfully transacting tner
businesses and which were specthcally
{enioined by the decree are the follow
ing: Making fictitious offers to purchase
or lease outdoor advertising sites at
amounts in excess Of their true worth
and value; causing the cancellation OF
Leases to which competitors are a party
by false representations that the SITES
are desired for other than advertising
purposes; leasing outdoor advertising
sites without using the same for any
purposes reasonably necessary or Incl
dental to the proper conduct OF the out
door advertising business; continuously,
by illegal and improper means soliciting
and reporting detailed information re-
garding outdoor advertising sites leased
by competitors; physically obstructing,
covering, celebrating, destroying or 9TH
erwise impairing the visibility OF out
door advertising structures owned, OPP
Grated or controlled by competitors; in
Siulging in unfair and discriminatory
terms and conditions of sale; knowingly
inducing customers of competitors to
breach their contracts with competitors
by reduction of prices; knowingly max
ing false and unfair statements regard
ing the business credit and integrity OF
competitors; granting preferences, pri-
critics and rebates relative to prices and
terms of outdoor advertising contracts;
giving free display of outdoor advertis-
ing to certain favored customers, ana
compelling owners of outdoor advertis-
ing structures to sell out to Foster d
Kleiser Co. on terms dictated by threats
OF elimination from the trade.
The decree further provides Tor re-
tention by the court of jurisdiction for
the purpose of enforcing or modifying
the decree, thereby assuring independent
advertisers on the Pacific Coast Of inn
mediate relief by way of contempt pro-
ceedings against any and all future vio-
lations of the decree"