Evening star., 1943-07-08
i. 5. Denies SEEKING
Control Of Press al
Hearing on A. P. Suit
CONTINUED From First Page.)

(COnJlnueQ F1ISl y
the gathering of world news" Mr.
Rugg asserted.
Mr.. Rugg also told the court the
contract of the Associated Pres.
with the Canadian Press and the
contract by which the AP acquired
Wide World Photos, Inc, represent
"a combination and conspiracy ir
violation OF the Sherman antitrust
law.
Mr.. Rugg told the court that In
effectively denying to some compet-
ing newspapers the right to obtain
the news and news pictures fur
nished by the A. P. to its members
the cooperative operated as mo-
nopoly.
Exclusive News Issue.
The Government attorney said one
of the questions involved was wheth-
er the bylaws of the Associated
Press required each of its more
than 1900 members to furnish local
spontaneous news to the A. P. ex-
clusively" and declared that forbid
ding the furnishing by members or
their employees of such news to
non-members was in violation of the
. antitrust law.
Mr.. Rugg said:
"World news that is fresh Is an
essential commodity to the opera
ton of newspaper and can be
gathered only through collective col
lection Of news, thus spreading the
COST he continued:
I'm the case of the Associated
Press, the cost OF operation Is de-
fraved by assessment of its men,
bers equitably and fairly distrib-
uted."
BY collecting local spontaneous
news from its members under its by
laws. Mr.. Rugg added. the Associat-
ed Press had an advantage over
competitors.
Other news associations Mr..
Rugg said. must maintain large
number of correspondents In the
United States and Canada" and for
them to make an extensive per-
centage coverage, he asserted the
cost Is prohlbltlve."
Biggest News Agency.
Mr.. Rugg said the Government
contends that the Associated Press
occupies an outstanding place in
news gathering. 1t is the biggest,
fastest and most comprehensive
news agency"
He told the court that the A. P.
news reports averaged 1,000, 900
words daily; that it had staff of
more than 100000 sending news
over 1000 miles of leased wire
and that it operated on an annual
budget of 10000
Mr.. Rugg said that in survey of
various papers. the following repre-
sentative figures were disclosed:
During one week the New York
Times printed Ill columns of AS
sociated Press news, as compared
with 43 columns of United Press
news.
The Chicago Daily News in one
week printed so columns of A. P.
news, as compared with 20 columns
OF U. P. news.
The New York Herald-Tribune in
one week printed 106 columns of
AP news compared with 20 for UP.
Sought Press Association Service.
Mr.. Rugg said that when Marshall
Field. publisher of the Chicago Sun,
failed to obtain Associated Press
membership he sought the service
of Press Association, an AP sub
sidiary supplying AP news to radio
stations. Mr.. Rugg added that Mr..
Field was told Press Association
service was available only to radio
stations.
Mr.. Field then sought, Mr.. Rugg
continued, TO obtain the AP Picture
Service, but was told it was avail
able only to members of the Asso-
ciated Press. Mr.. Field, he said,
then took United Press service and
was unable to obtain International
News Service because of a special
contract which that service held
with another Chicago newspaper.
Mr.. Rugg said Mr.. Fields attempt
TO buy Acme Picture Service was
unavailing because Robert r. Nc
Cormick, publisher of the Chicago
Tribune. held exclusive rights to
Acme in Chicago.
The attorney said the Chicago
Sun sought proxies from Associated
Press members to support his ap-
plication for AP membership, but
obtained none.
Rugg said that II employees of the
Chicago Tribune interviewed more
than 500 members of the Associated
Press when Mr.. Field sought men,
bership and, that as a result OF in
terviews the Suns application was
denied.
105 Applications Rejected.
During the history of AP, Mr..
Rugg asserted, los applications for
membership had been turned down
He told the court the steps paper
took in seeking AP membership and
said:
These are barriers inviting me-
chanics for selective boycott"
Mr.. Rugg said no paper could get
up AP news or pictures unless the
applicant did business in a locality
where there was no competing AP
paper in either the same morning
or afternoon field.
Tracing the history of the AP Mr.
Rugg declared:
There is no standard for admis-
sion to it other than the uncon-
trolled whim, fancy and caprice of
members"
Mr.. Rugg said that press associa-
ton had been very active in So
liciting business" and that it had
refused service to only one station.
Mr.. Levin, who concluded the
Governments argument, said the
Associated Press operations repre-
sented "a primary boycott of the
type which has been uniformly
banned under the provisions of the
Sherman antitrust law"
Pooling of Results"
Members of the AP he said. have
achieved a pre-eminence over COM
peting newspapers excluded from
membership" through collective
action which gives them power