Evening star., 1936-09-13
NEWSPAPER CITED
BY FEDERAL TRADE.
Rules Those Carrying Ma
tionaI Advertising Subject
to Interstate Laws.

Publications carrying national ad-
vertising are subject to Federal laws
based on the interstate commerce
clause of the Constitution, the Federal
Trade Commission has ruled.
The agency made the decision in the
cease and desist order it issued against
the Blackwell, Okla, Journal, which
Friday became the first daily news
paper ever to feel the effect of the
Trace Commission act, passed in 1914
as part of President Wilson's program
Of business reform.
The Journal was told to end within
80 days these three unfair competitive
practices violating section of the act
on the ground that the practices were
injuring its competitor, the Blackwell
Tribune Publishing Co., publisher of
the Blackwell Morning Tribune:
l. Circulation of false, disparaging
statements concerning the financial
condition and responsibility of its
competitor.
2. Offering to newspaper subscribers
Of its competitor subscriptions to its
n>newspaper without cost.
8. Quoting or charging advertising
rates which are below the cost to the
publisher of the advertisements as set
up and published.
Established Claim.
Before the commission could act, it
had to establish that the Journal
yponuod IN irofarcfotn T1oic
it did on the ground that 10 per cent
of its circulation is outside the State,
that 1t accepts advertising of nation
ally-sold products and because much
of the material used in producing the
paper is bought in interstate COM
merce.
The publishers of the paper con-
tended at the beginnings of hearings
on the complaint, entered by an un-
revealed party, that the commission
had no jurisdiction because the acts
alleged in the complaint as unfair
practices do not constitute commerce
as contemplated by said act"
In order to prove intent to injure
Its competitor, the commission made
public story of the financing of the
journal, which has total losses of
$94, 500, which was launched June IL,
1888, by three political enemies of
the Tribune. The findings state:
"One OF these men was lawyer
residing at Blackwell, another an oil
operator residing at Ponca City, Okla,
and the third an oil operator residing
at Blackwell.
Loans Advanced.
"E. M. Mcintyre was, and is, the
sole stockholder in respondent cor
poration. Soon after the establish
ment of its newspaper, the above
named men advanced to Mcintyre, in
the form of loan for use in connec-
ton with the running of the news
paper, the sum of $4,000, each one
of the three contributing one third
Of the amount.
"This loan was made without in
quiry as to McIntyre's financial re-
sponsibility, and no security was given
by him except the pledge of his stock
in the respondent corporation. Nc
Intyre paid no money or other thing
3oA 32Ao oIOIhy o1iA db Az tlIlC SOlI-
tributed money to the corporation or
Tor the conduct of the newspaper.
Thereafter and up to June 30,
1885, the last two of the three men
referred to above, advanced to Nc
Intyre in the form of loans addi-
tional amounts in monthly INSTALL
ments of from $4,000 to $4,000, until
on May rs, 1885, the aggregate
amount, including the first $4,000,
was s117,4o0. No security other than
the pledge of McIntyre'S stock was
given for the additional $77,4O0. One
of the two personally handed Nc
Intyre some part of this sum each
month throughout period.
Fight Over Gas Plant.
"For a number of years prior to
the establishment of respondents
newspaper, the editor of the Tribune,
who owned 80 per cent of its stock,
and one of these two men had been
on opposite sides of the question
whether the city of Blackwell should
sell its municipality owned gas plant.
During this time there was a bitter
controversy between them,- recurring
at each city election. Editorials in
the Tribune had bitterly attacked the
other and he, through circulars, had
replied in the same vein.
Tn the last four or five years the
il-fee4ing between them had been
augmented by the Tribune champion
ing the citys rights in the matter of
the pollution of its water supply by
q number of oil operators, among
them this creditor of respondent, and
the Tribune had printed a number
of editorials directed against him and
his partner.
Personal relations between the ed
itor of the Tribune and the other of
the two men were even more antagon-
tstic. They were on opposite sides
of number of State political ques-
tions, the editor had been active in
an attempt to oust him from a State
Office, had testified against him in
State investigation of his conduct of
this Office, and during this time he
had made the threat that he would
get even with the Tribunes editor.
This controversy brought forth num-
Der of editorials in the Tribune at
tacking him."
SHOOTING ADMITTED