Evening star., 1942-08-29

the Sherman Antitrust Act" The,
have continuously during said pc
riod monopolized a part of such
trade and commerce: have con-
tinuously attempted to monopolize
part of such trade and commerce
and have been continuously engaged
in a combination and conspiracy te
monopolize the same, all in viola
ton of section 2 of the said Sher-
man Antitrust Act. They have
violated section 7 of the Clayton
Act. Defendants threaten to con-
tinue said offenses and will do SC
unless the relief hereinafter prayed
for in this complaint is granted,
Conspiracy to Restrain
Competitors Is Charged.
78. BY contracting to observe, and
by observing, the bylaws of the
Associated Press, as amended from
time to time, and by performing the
acts and engaging in the conduct
hereinbefore and hereinafter alleged,
defendants and their participants
have, during the AZ years of the
existence of the Associated Press,
continuously planned and acted to-
gether (A) to restrain the COM
petitors of members of the Asso-
ciated Press from obtaining access
to A. P's services, (B) to restrain
competitors of the Associated Press
and non members of the Associated
Press from obtaining access to the To-
cal news gathered by A. P. members,
tC) to monopolize for the Associated
Press and its members the trade and
commerce in the news gathered by
the Associated Press through its own
activities and in the local news
gathered by each of its members,
and ID to foster and contribute to
the formation by members of A. P.
of monopolies of the business of
disseminating news by newspapers
in the various localities where they
engage in business. In carrying out
said offenses, defendants and their
participants, in addition to the
acts and conduct hereinbefore
have performed the acts and
engaged in the conduct hereinafter
set forth. While the purposes and
effects of their offenses have re-
manned the same throughout the
period, certain changes have oc-
Cured in the means employed to
effectuate them.
ACTION TAKEN TO CARRY
OUT THE OFFENSES DURING
THE YEARS 1900 TO 1928:
49, The offenses had their origin
in the Illinois corporation which
was the predecessor of the defend
ant the Associated Press. Only pro-
orietors of newspapers could be
members of the Illinois corporation,
out its members were divided into
jwo classes, "a" members and "B"
members. The bylaws conferred
upon each "A" member the right to
veto the admission of any new mem
Der in the city in which such men,
oer's newspaper was published and
IN such additional territory contig-
lous thereto as might be specified in
It's membership contract.
30. In 1900 the Supreme Court of
illinois rendered a decision which,
n the words of the Board of Direc-
tors of the Illinois corporation In a
report to stockholders, held that
.he business of the Associated Press
nas become so impressed with a
public interest that it becomes our
1uty to admit to membership any
newspaper applying, and that the
'ule enforced for many years -.
providing for an alliance, offensive
md defensive, between member and
issociation, was void as in restraint
II trade" To evade the effect of
his decision, the Board of Directors
arranged for the reincorporation of
heir exclusive association as the
Associated Press under the member
'hip corporation law of the State
u New York, for transfer to it of all
he assets of the Illinois corporation.
and for continuation by it of the
existing news service without hiatus.
Digest of Protest" Granted
TO Members in New Setup.
81. The purpose and effect of or
the New York membership
corporation was to continue, upon
substantially the same basis but in
different guise, the offensive and
defensive alliance between member
and association which the Supreme
Court OF Illinois had condemned as
an illegal restraint of trade. The
president of the Illinois corporation
reported that the New York cor
poration had undertaken to admit
all members of the Illinois CORPORA
ton with rights and privileges as
nearly as practicable exactly the
same as those they now enjoy"
81. BY virtue of the foregoing re-
the veto power held
by certain members of the Illinois
was converted into a
right of protest" The members of
the defendant Associated Press at
their first meeting conferred upon
all those previously ENJOYING veto
powers protest rights" exactly cor
responding thereto. The bylaws of
the Associated Press as set forth in
exhibit c provided that no appli-
cant for membership representing
paper subject to any members
protest right could be elected by
the directors unless all applicable
protest rights" had first been
waived. Where protest rights" had
not been waived, the only posi-
bility of election lay in obtaining
the affirmative vote of four-fifths
OF all the members of the Associated
Press at the annual membership
meeting or at special meeting
called for that purpose, The bars
thus set up against giving competi-
tors oil members access to A. P.
service, represented, in the opinion
OF counsel for the incorporate
the extreme limit to which an en-
bodlment Of the old veto power
could be safely attempted"
Directors May Elect Members
Ii There Is No Protest Right"
83. Under the A. P. bylaws the di-
rectors were free to elect any new
/ - u.