Evening star., 1943-04-14
Three New York Firms
Fined in Ad Boycott,
Deny Wrongdoing
Stores Do Not Admit
Any Illegal Act in Row
With Newspaper
4y the Associated P-ess.

By the Associated Press
NEW YORK, April 14.-Three de-
partment store companies of the Il
fined $4,000 each on a Federal
charge, which they did not contest
of conspiring to boycott the New
York Times advertising columns
said in a statement last night that
''the stores and their arrangements
are wholly free of any consciousness
Of wrongdoing."
Fines totaling $4,000 were levied
against Is of the largest depart
ment stores of the city and the
Retail Dry Goods Association OF
New York by Federal Judge John
W. Clancy after Special Assistant
Attorney General Samuel Isseks had
filed an information against the
stores and association. Pleas of nolo
contendere were entered by the de-
PENDANTS, who were given 48 hours
to pay the fines.
The Government charged the
stores and association agreed be-
tween March and 10 to withdraw
their advertising from the Times
unless the newspaper Cancelled its
scheduled rate increase, which was
to be effective May 7.
Text of Statement.
The statement issued By Macy's
Cimbel Bros. and SakS & Co. read
In part:
Except for the purposes Of this
proceeding. the stores in so plead
ing do not admit any illegal act.
The proceedings arose out of a
controversy with the New York
Times involving proposed in
crease in advertising rates, an
nounced to be effective on May 7
at a time when all retailing is bound
by price ceilings under Government
regulations and when the stores are
making every effort to effect econo-
mics and keep down prices to ulti-
mate consumers. 1t was believed
that the stores were operating in
the interests of the public as we'll as
of the war effort in opposing any
increases in advertising rates at
this time.
United States Regulations Hit.
THE Department of Justice has
claimed that the action taken by
the stores constituted a technical
violation of the Sherman Act.
90. The stores believe that
the proceeding was an extension OF
the Interpretation of the Sherman
Act to fields heretofore not deemed
to be within its purview.
see Shortage of manpoWer
and numerous Government regula-
tons have rendered the conduct
of the retail business much more
difficult and rather than contest
the proceedings with all that this
would require in expenditure of time
and effort in protracted litigation,
it was deemed advisable for these
corporations to offer the plea of
nolo contendere rather than to
contest the proceedings"
Attorney Isseks, who conducted
the investigation and prosecution
for the Justice Department, said
that the Times did not initiate the
investigation nor file a complaint
with the Antitrust Division OF the
department.
La Guardia Enters Controversy.
The case became the subject OF
an exchange of statements today
between Mayor La Guardia, who
has been engaged in controversy
with retail groups on his proposal
10 increase the city sales tax, and
Walter Hoving. president of Lord d
TAYLOR and chairman of The Com
mittee to Balance the Budget
Through Sensible Economies
The Federal Court action, the
Mayor said, proves absolutely what
have been telling the people of this
city for the past three months: That
The department stores were ganging
Up, were groggy with profits and had
gotten the notion into their heads
Shat they could control the press of
this city and run the city govern
.nent. Fortunately for the people
of this city they can do neither"
Hoving in a reply statement said:
THE press cannot be controlled
and it is not controlled by any busi-
ness interests or by any other in
serests and thank God 1t is not con-
trolled by the Mayor.
IT think that everyone of the
1000 900 people of this city would
equally resent the Mayors accusa-
lions, insinuations and allegations
that any paper in New York City
can be Influenced, bribed or bought
BY anybody and thus abrogate its
freedom to express itself in this
great democracy
Sales Tax Is Opposed.
Department store owners were
among the opponents of La Guar
dias proposed sales tax increase
which he urged as means to meet
an anticipated s49,000,0O budget
deficit and which was defeated by
the State Legislature.
Hoving said that his committee
mad A civic organizations affiliated
with it. of which the Retail Dry
Goods Association, to which depart
ment stores belong. was only one
'The Mayor is simply twisting
the truth by trying to make it ap-
pear that the department stores
are the only business organizations
who are fighting him. Hoving said