Evening star., 1943-07-09
Court Studies 4. P.'s
Plea for Open Trial
In Antitrust Suit
gy The Associst<d Press

nHJUT QuCctiOiio OA AdCt db loSlCs 1lds
asked for an open trial of the Gov
ernment's civil antitrust suit against
it in order that testimony can be
presented.
This action by the cooperative
news service came yesterday during
more than five hours of argument
before special three Judge bench
in Federal Court on the Govern
ment's motion for a summary iudg-
ment. which would require the rem
dering of verdict without trial
and on documents alone. The court
reserved decision.
During the argument, the Asso-
ciated Press contended that opening
of it's membership "to any news
paper wishing its service would de
stroy the foundation upon which
the cooperative enterprise has been
created"
Practice Called Monopolistic.
The Government charged that the
membership structure Of the AsSo-
ciated Press denied access to its
news report to all newspapers and
claimed that this was monopolistic.
The Justice Department attorneys,
arguing in support OF the Govern
ment's motion for summary iudg-
ment, contended there were no un-
controverted facts in the case. The
A. p. denied this.
In its brief, filed in answer to the
request for a summary judgement,
the Associated Press said:
THE Government has submitted
no evidence that A. P. has monopo-
lized the gathering and dissemina-
ton of news" 1t added:
Others can freely undertake the
gathering of news and the pubhca-
ton of newspapers without the
benefit of A. P.'s organization or
facilities. and many have done
The brief also declared that "if
news gathering were subjected to
regulation at the hands of the Gov
ernment, newspapers would neces-
sarily be regulated Also
Rugg Opens Argument.
In opening the arguments for the
Government, Charles B. Rugg, q Spe-
ciaI assistant to the Attorney Gen.
eraI, said that in the Associated
Press case the Government SIS not
seeking to control or regulate the
operation of the press of the coun-
try" nor abridge freedom of the
press.
Declaring that during the history
of the Associated Press, lU5 sppn-
cations for membership had been
turned down, Mr.. Rugg related the
steps he said paper took in seek
ing Associated Press membership
and said:
THESE are barriers inviting
mechanics for a selectiVe boycott.
There is no standard for ad-
mission to it other than the uncon-
trolled wfim, fancy and caprice of
members"
John Henry Levin. another special
assistant to the Attorney General,
who concluded the arguments for
the Government, declared tnat the
Associated Press's operations repre-
sent "a primary boycott of the type
which has been uniformly banned
under provisions" of the antitrust
law
1880 Elected Since 1900.
Timothy Pfeiffer, counsel for the
cooperative, said there were 603
members OF the Associated Press IN
1900 and added that there had been
800 elected since. He continued:
The purpose has not been to bar
members but to take IN papers Wh1cn
would provide additional coverage
for the Associated Press as a wnoIe.
II all applicants had been admitted
there would have been a repression
of competition. The Associated Press
has not attempted IN any way 10
exercise influence over non-mem-
bers. All that the Associated Press
has done has been to say that the
news report would be for the use OIL
Associated Press exclusively. There
is no element OF boycott IN this case.
The Governments case 1alled on
that ground"
Judge Learned Hand MADE this
observation from the bench during
Mr.. Pfeiffer's discussion of A. P.
assessments for service:
TT looks prima facie ss if news
papers in field would have TO be
paid for their loss of competition
when new member enters the field
and is put on basis of fair competi-
tion thereby"
EXCLUSIVELY Argued.
Weymouth kirkland, representing
the Chicago Tribune, told the court
that "A, P. news would be OF no
value if no restraint on its use ex-
isted." He added that removal OF
EXCLUSIVELY would cause an up
heaval of the newspaper business or
profession.
He declared that the Chicago
Tribune for more than 80 years had
published only A. P. news reports
and asserted, IF there is reader ac-
ceptance in Chicago of the Asso-
ciated Press, it has been built up by
the ITlDune.
Mr.. Rugg said that the Chicago
Sun. to support its application for
A. P. membership, sought proxies
from Associated Press members, but
obtained none.
Mr.. Pfeiffer said that at the time
Marshall Field, publisher OF the
Chicago Sun, made application for
Chicago Sun membership, he Flelo)
sent a letter to the A. P. under
his attorneys name stating that the
A. P. was functioning in violation
of the Sherman antitrust law.
Despite the fact the Chicago Sun
has no A. P. membership, Mr..
pfeiffer told the court that the pa
per claimed that in less than one
year it achieved the eleventh larg-
est morning circulation in the
United States"
Committee Attorney Gives Views.
Robert T. Neill of San Angelo,
Tex, attorney for the special COM
mittee of 1893 Associated Press mem
bers in smaller communities, said:
They (the committee) don't re-
LI