Evening star., 1942-08-29

of defendant the Associated Press,
278 were given protest rights" when
the corporation was organized. The
protest rights" could be invoked
against applicants representing both
morning and afternoon papers in
all the Is largest cities in the coun-
try except Newark, N. J. The pro
test rights" had a wide territorial
sweep. They usually embraced not
only the city of publication of the
protest holder but territory adja-
cent thereto. In over 100 instances
the protest right" covered territory
within a radius of so miles of the
city of publication and in one in
stance a radius of $50 miles.
Six Memberships Granted
BY Four-Fifths Vote.
Sc. The purpose of the provisions
relating to protest rights" to bar
competitors of members from access
to A. P. service-has been effectively
achieved. Both the members of
the Associated Press and it's direc-
tors have continuously manifested
the disposition to exclude, and by
concerted action have in fact ex-
cluded, from A. P. service competi-
tors of individual members. During
| the years 1900-1928, inclusive, more
than 100 applications for member
ship subject to outstanding protest
| rights" were submitted to the vote
of the members. In only six instan-
ces was there the requisite affirma-
tive four-flfth vote. Moreover, in
| each of these six instances the
| favorable vote was due to special cir
cumstances. No existing A. P men,
Der holding a protest right" pub
lished newspaper in any of the
cities in which the applicants news
papers were published, which cities
were comparatively small. In each
case the directors had concluded
that admission to membership would
result in mo substantial injury" to
the protesting member or members
and had therefore, as individuals,
recommended election.
ACTION TAKEN TO CARRY OUT
THE OFFENSES DURING THE
YEARS 1928 TO 1912.
81. In 1923 the A. P. bylaws were
changed so as to provide that, in
addition to the rights of protest"
originally conferred in 1900, every
member should, after membership
for five years, have right of pro-
test against election of a member
representing paper published in
the same city and in the same
field" /. e., morning or afternoon.
The provisions of the bylaws thus
extending the right of protest" to
all members of five years standing
appear in exhibit D.
88. After the principle of excluding
competitors of members had thus
been made as broad as the member
ship itself, the hopelessness of Sc
curing admission, as against right
of protest." became so patent a de-
terrent that during the 13year pc
riod, 1929 -1941 inclusive, only four
applications involving protest
rights" were submitted to a vote of
the members. Each of these four
applicants failed of election.
80. The policy of excluding COM
petitors of members from A. P. serv-
ice has been followed by the direc-
tors in passing upon applications
for membership even where no pro
test right" was involved. The direc-
tors have always in such cases given
careful consideration to the question
whether the individual interests of
any existing member would be ad-
versely affected by election of COM
petitor and they have always denied
election If they concluded that it
would result in any real injury to
any present member.
Greater Membership Seen
Providing Better Service.
80. The economic self-interest of
the Associated Press and of its
members as whole, as distin-
guished from the interests of its in
dividual members to protect them
selves against competition in their
various territories, is in favor of ex-
panding A. P. membership freely The
greater the number of members, the
more complete the news sources on
which the A. P draws and the better
the service it can provide. The
greater the number of members, the
smaller the pro rata cost to each
Nevertheless, the Associated Press
has subordinated its own advantage
to the advantage of its individual
members. 1t has abdicated to other
members of the combination it's own
corporate powers. It's practice of
permitting any person to become
member of the Associated Press by
simply buying up an existing men,
bership permits no increase in the
total number of members 1t has
restricted its growth to territories
not already pre-empted by existing
members. These policies have tend
ed to create static A. P membership
and to limit the number of news
papers in the United States.
81. The purpose and effect of the
policy which the members and di-
rectors have enforced have been to
| PAooSSe Vic n. dRdlIlSG
competition, by denying to their
competitors access to the A. P. news
service and by denying to them
access to the news gathered by any
of its 1,200odd members and par
ticipation in the interchange of
news carried on among A. P. men,
bers through it as a medium.
RECENT ACTION TAKEN TO
! CARRY OUT THE OFFENSES.
90. Early in the year 1942. the
Government notified the Associated
Press in writing that it regarded
the exclusion of applicants from
A. P. service, based upon no other
standards except the competitive
effect upon the business of individ-
ual A. P. members, to be violative of
the antitrust laws. At the 1912
annual membership meeting, the
members of the Associated Press.
al III