Evening star., 1950-06-15
Civil Antitrust Suit
AssaiIs New Orleans
Papers' Practices
BY the Associated Press

NEW ORLEANS. June 15.-A
civil antitrust suit was on file
against the New Orleans Times
Picayune and States today. accus-
ing them of monopolistic practices
injurious to the competing New
Orleans Item.
The suit, filed yesterday by the
Justice Department in United
States District Court here. is the
first civil action ever brought by
the Government charging q news
paper with injury to a newspaper
competitor.
The Justice Departments anti
trust suit alleges that beginning
about 1888, the Times-Picayune
and States have been engaged in
combination and conspiracy to
monopolize trade and commerce in
newspapers. in dissemination of
news and advertising, in supplies
and in nationally advertised prod
ucts in violation Of section / the
Sherman Act"
Part Of Charges Called Incorrect.
The action was filed against the
Times-Picayune Publishing Co,
publishers of the Times-Picayune
and States, and four officers: L. K.
Nicholson, president of the COM
pany: John F. Tins, jr., vice
president and business manager,
Aubrey F. Murray. advertising di-
rector. and Donald w. Coleman,
circulation manager.
Mr.. Nicholson issued the follow
ing statement:
"A substantial part of the
charges made by the government
are incorrect.
Those which are true involve
practices followed by many news
papers of this country for years
and their legality has never here
tofore been questioned.
1--WE are prepared to meet the
issues on the trial of this case
and are confident that the court
will hold we have not violated
the Sherman Act"
The Item is published by David
Stern, III, formerly of Philadel-
phia, Pa, and Camden, N. ]. He
said he had no comment on the
suit.
Main Points of Suit.
Main points in the Govern
ment's suit against the Times
Picayune and States are:
Purchase of the States in 1888
under restrictive covenants to
prevent competition.
Entered into agreement about
1941 with competitor under
which the competitor agreed to
discontinue publishing a Sunday
paper"
Required classified and national
advertisers to purchase advertise
ments in its morning and evening
newspapers only as unit under a
combination rate, and induced
local retail advertisers to refrain
from advertising in the Item by
giving them arbitrarily low rates
for advertising in the New Orleans
States based upon the volume of
advertising carried by those ad-
vertisers in the Times-Picayune.
"Coerced or otherwise induced
newspaper vendors In New Orleans
to discontinue and refrain from
sale and distribution of the Item
by refusing to permit" its vendors
to sell the Item also.
Offsetting Of Losses Charged.
used the dominant advantage
In New Orleans Of the Times-Pica-
yune to injure and destroy the
competition" of the Item.
Used the income from the
Times-Picayune to Offset losses in
profit incurred by the States.
The Justice Department said
the suit seeks "such relief as the
court deems necessary to prevent
the defendants from continuing
to violate the Sherman (anti-
trust) Act, and to dissipate the
effects of their unlawful conduct"
In a statement concerning the
New Orleans suit, Attorney Cen
eral McGrath said:
Illegal and unfair practices
that destroy competition in the
newspaper field must be elimi-
mated If we are to continue to
depend upon our great free press
as a bulwark or political as well
as economic freedom"