Evening star., 1942-08-28
Continued From First Page,

1
public reputation and esteem
That "a newspaper which is
barred from A. P. news operates un-
der competitive disadvantage
with A. P. members.
The two other news services re-
ferred 10 are the United Press and
the International News Service.
Case Under Arnold's Direction.
The case was handled in the JUS
tice Department by John Henry
Levin and Charles E. Weston, spe-
cial assistants to the Attorney Cen
eral, under the direction of Assist
ant Attorney General Thurman Ar
mold The petition was filed by Mr..
Weston after an early morning trip
from Washington.
I'm the mind of the general pub
lic," the Government said, "the
name Associated Press has long
been regarded as synonymous with
the highest standards of accurate,
partisan and comprehensive
news reporting"
Amplifying its contention that the
A. P. stands in the van of news serv-
ices, the Government said:
"One reason for this is that the
A. P. exceeds it's competitors in
expenditures for collection and
transmitting news, in the length
of news reports it furnishes, in
physical facilities, in size of staff,
in number and geographical dis
tribution of news bureaus. in
number and geographical distribu-
tion of newspapers supplying it with
news of their localities and in the
unique requirement hereinafter set
forth that these newspapers must
serve the A. P. exclusively.
"A second reason is that the
character of the organization of the
Associated Press "a membership
corporation composed of persons
representing every shade of eco
nomic, political and religious opin-
ion and every section of the country
is an invaluable guarantee that
the promise and claim made by
each news agency-that it presents
the news without any political or
sectional bias-will in fact be full
filled"
Contending that freedom of the
press would be served by making A. P.
service available to all newspapers
willing and able to share the cost of
such service, the Government said:
Restraints imposed by denial of
A. P. membership and services are
particularly brdensome because in
that event the newspaper must rely
on the services of the u. P. Omitted
Press alone or as supplemented by
In. S. international News Service
Furthermore, 1t is forced to accept
whatever terms are demanded by
these agencies"
Board Amended Bylaws.
Much of the Governments argu-
ment revolved about bylaw pro-
visions governing membership ad-
missions in cases where q member
already occupies the field in which
an applicant publishes or proposes
to publish. BY field" is meant the
time of publication; that is, morn
ing or afternoon.
Until this year, an applicant re-
quired the Affirmative vote of 80
per cent of the membership to gain
admission if a member in the same
city and field refused to waive his
right of protest.
Early this year the Justice De-
partment notified the Associated
Press Board of Directors that it re-
garded the exclusion of applicants,
based upon no standard other than
the competitive effect upon indi-
viduai members, to be in violation
of the ANTITRUST laws.
In view Of that. the complaint
stated, the A. P. membership "materi-
ally amended" the bylaws at it's
annual meeting in April, 1942. The
Government contended, however,
that the amended rules only elimi-
mated the right Of protest" in form.
while achieving "the same result
by means even more Objectionable.
Majority Vote Now Elects.
Whereas the old regulations pro-
vlded for election by the affirma-
tive vote Of not less than four -fifths
of those voting at a general meet
ing. the present rules require a
mere majority.
The amended bylaws also pro-
vide that an applicant publishing
in the same field as an existing
member shall pay to the associa-
ton for distribution to the member
or members affected, sum equal to
10 per cent OF the total amount of
| regular assessments received by the
A. P. from the members in that field
and city since October /, 1900
date of the last reorganization of
the A. P. This amount shall be not
less than three times the current
annual regular assessments.
The complaint described the new
majority-vote requirement as still
"pronibitive condition." and said
that the payment-which an exist
ing member may waive-is sec
ond barrier against admission"
AS to the amounts which appli-
cants for membership might be re-
quired to pay, the complaint list
ed, among others, $1,432,l42 for a
morning newspaper in New York
and $l.095 ,Oo3 for an afternoon
newspaper there. 1t said the cor
responding figures for Chicago
would be $4l6,631 and $595,772 for
Philadelphia, $391,l73 and s427,918.
Third Barrier Charged.
A third barrier" against obtain
ing A. P. service, the Government
said, is the provision that new
member may be required to re-
linquish any exclusive news or pic
ture service outside OF the A. P. or
prevail upon such service to supply
it upon equal terms to the A. p
members in the same city or field.
Three instances of rejection oc-
Cured at the April meeting at
which the bylaws were revised, the
complaint recounted. saying that
In the one involving the Chicago
Sun, the Chicago Tribune and the
Chicago Herald-American had re-
fused to waive objections, the ap-