Evening star., 1944-12-06
A. P. Suit
Continued From First Page.

agencies are competing and are now
very healthy, and two or three more
are coming up to the top. This
decision would limit their growth
and not make for full illumination. -
Mr.. Ellis said the lower court did
not determine how far down the
line of news agencies its decree
should go.
News Called Personal Product
Suppose it applies only to the
AP because it is a cooperative he
stated That puts the AP In a
detrimental bargaining and COM
petitive position. UP and ms may
grant EXCLUSIVELY and other fea-
lures"
Justice Murphy asked Mr.. Ellis If
he contended there was any dis
tinctiveness about product which
in the case of news report
Is IAN intellectual product"
Yes Mr.. Ellis replied, emphat-
ncally Territorial restrictions
should have greater effect there
than in the case of fungible goods
such as leather, rubber and other
products. A news report is more
closely personal product"
Justice Murphy interjected this
comment: 1T has to do with dis
semination of ideas. and the author
may choose to whom to disclose 1t. ~
Mr.. Ellis replied that was exactly
his idea.
Justice Frankfurter asked If the
"counterconsideration' was the full
est dissemination of news. Again
Mr.. Ellis replied affirmatively.
Territorial Contracts Ruled Out.
He said, however, that the lower
court had ruled out the effect of
territorial EXCLUSIVELY contracts on
trade.
The Associated Press renewed its
fight by telling the court the anti
trust suit threatens to saddle A. P.
with Government controls from
now on"
In fact, John T. Cahill, A, P
counsel, told the court yesterday at
the opening of argument on the
case, these controls already are in
effect
AS an example, ne cited the use
of FrBI agents. Mr. Cahill said the
Justice Department "loosed" 26 of
them to interview A. P members
who were considering aL application
by the Chicago Sun for membership.
The A. P. members, Mr.. Cahill de-
clared, resented" this use of FBI
re fal to rainot tho Gums
application. Then, ne said, the JUS
tice Department promptly filed the
antitrust suit with the aim CT COM
pelling admission of the Sun to
A. P. membership.
Appealed From New York Ruling.
The A. P. appealed from decision
of a Federal District Court of New
York that it must amend its mem
bership bylaws so the competitive
effect of an applicant for member
ship would not be taken into con-
sideration Mr.. Cahill argued that
the lower courts decision made the
A. P. subject to Government control.
Justice Jackson disqualified him
self from consideration of the case,
but gave no reason. He was At
torney General at the time the
complaint against the A. P. was
prepared in the Justice Department.
Justice Jackson's withdrawal from
the bench left eight justices con-
sidering the case. This would make
possible 4-to-4 vote on the court S
decision. In such case, the decision
of the lower court would be upheld.
The New York court based its de-
cision on finding that news is sub
ject to public policy not applicable
to other commodities and requires
the greatest possible dissemination
for full illumination" of the pub
lie.
Sees "NoveI Theory"
Mr.. Cahill said, however, the Gov
ernment now has dropped that
theory. Instead, he said it has intro
duced novel theory" that 1t is a
violation of the antitrust laws for
members of a cooperative organiza-
ton to keep to themselves an ad-
vantage gained from the associa-
tion.
He said he did not mean that the
press should be exempt from gen.
eral laws, but that it should be as
free from Government controls as
other business activity"
Mr.. Cahill said the Supreme Court
repeatedly had laid down the prin-
ciple that Government controls and
pressure on the freedom of the press
will not be tolerated unless justi-
fed by some clear and present dan
GER"
There is no clear and present
danger" in this case, Mr.. Cahill said,
of coercion, monopoly, dominance,
inadequacy of competition, indis-
pensahility or lack OF publication
Whatever danger there Is to the
freedom of the preSs. he declared