Evening star., 1942-10-29

DcISAlp dppuCdClOllS WHICH 90 HOL
affect the competitive interest Of
an existing member and those
which do.
The majority vote required for
election of new members in cer-
tain circumstances-four- -f1fths vote
previously was required-is not a
prohibitive condition on admission
to membership, the answer said,
adding:
"A majority vote is the usual GUS
tomary and lawful requirement for
election to mutual cooperative or
CARNATIONS in this country; in fact,
many such associations rightfully
require a unanimous vote for ad-
mission Of such members"
Fair Standard" for Admission.
The requirement that an appli-
cant make money payment to
the A. P. members competitive with
him was designed, the answer said,
"as recompense to an existing
member for the decrease in value
OF his membership resulting from
the taking away or dilution of the
existing members exclusive right to
A. p. news service and to require
the new member to pay, in part at
least, for his participation in the
fixed assets of the A. p. So
The A. p. news which members
currently receive does not consti-
tute full and commensurate re-
turns for their contributions
assessments or return of local news:
A substantial portion of such as
sessments is and always has been
expended for the future better
ment of A. P. service, patent i'm
provements, employees funds and
other fixed assets"
The, provision requiring an ap-
plicant to give up to an existing
member in the field any exclusive
right to news or news picture serv-
Ice was described by the answer as
fair standard for admission and
not barrier against admission.
The defendants expressed belief
that 1t was passed "for the pur-
pose OF requiring new applicant
to relinquish his exclusive rights
to news and news photo services in
consideration of the relinuuish-
ment by the existing member of his
exclusive rights to A. P. service or of
the dllution of the rights of several
members, should there be several in
the field"
Threat of Prosecution CHARGED.
Reviewing the genesis of the suit
the answer said that the Govern
ment, in discussing with the A, P its
objections to its rules covering ap-
plications of new members earIv in
1912, refused at all times to con-
slder the permissibility of all stand
ards other than (a) the applicant
must be the sole owner of a news
paper; CD must file proof thereof
and OF the field and Co assent in
writing to Its legal bylaws.
The Government representatives -
the answer continued, arbitrarily
refused to discuss other standards
OF admission which A. p, even had
1t been a public utility, might law
fully have exacted:
Il. Contribution to capital assets
OF A. P. to which the applicant had
not contributed but in which he
would share.
z. The permanency OF the news
paper applicant.
The character of applicant
and Of his, newspaper. .,.'
Under threat. of Government
prosecution, the members adopted
the 1912 amendments in the vain
nope that the Government would
De satisfied with less than the com
plete Transformation of A. P, from
private mutual cooperative en-
terprise into one subservient to GOV.
ernmental domination as to mem
oershlp, and therefore as to rates
services and the like"
A general denial of the Govern
ments suit was filed in the southern
olstrlct United States Court here
Monday on behalf of the Associat ed
Press and other defendants Col
mccormick, director of the A p
since 1927 and the Tribune Co were
named defendants and it was solely
IN their behalf that today's answe,
was filed. '"o oA