Evening star., 1952-05-28
New Orleans Papers
To Appeal Ruling Of
Antitrust Violation
BY the Associated Press

BY the Associated Press
NEW ORLEANS. May 28.-The
Times-Picayune Publishing Co.
planned today to appeal to the
United States Supreme Court from
a decision that it had violated the
Sherman Anti-Tru Act.
United States District Judge
Herbert Christenberry. in his de-
cision yesterday. held that the
violation came through the COM
pany'S requirement that adver-
tisers buy space in both the morn
ing Times-Picayune and the after
noon New Orleans States.
Application Of the forced rates,
Judge Christenberry ruled. injured
the New Orleans item, an after
noon newspaper. The forced COM
bination rates are used by more
than ITO morning and afternoon
newspapers under joint ownership
in the United States.
First Such Newspaper Case.
The Government filed the suit
in June, 1850. the first in civil anti
trust history where one daily
newspaper organization was &C
cused of hurting another compet-
ing daily paper.
The weekday Times-Picayune
gave its circulation as 176.148. The
New Orleans States has 94,246
and the combined Sunday edition
has q circulation Of 278,297. The
Item has q circulation Of 103 1855
on Monday through Friday. It's
Sunday-dated edition circulated
on Saturday has a circulation of
103,541.
The Judge said that beyond
question" the Times Picayune
Publishing Co. put out two sepa-
rate papers. The company had
contended that its morning, after
noon and Sunday editions were
those Of q single newspaper and
thus the company could not con-
spire with itself in violation of
antitrust laws.
Cited Dominant Position.
1.-THE corporation is able to en-
force the unit rate only because
Of the dominant position which
the Times-Picayune occupies
in New Orleans and in the New
Orleans trading area" the deci-
sion said.
"The Times-Picayune, because
Of its monopoly position, has been
able to force buyers Of advertising
space to buy what they do not
want, space in the States, in order
to obtain what they require. space
IN the Times-Picayune.
"The very fact that the defend
ant corporation was able success
fully to impose the unit rate on
general and classified advertising
tends to prove the monopoly po-
sition which the Times-Picayune
enjoys"
Judge Christenberry said it was
doubtless true as defendants con-
tended that one reason for the
establishment Of the unit rate was
to increase the revenue of the de-
fendant corporation.
Sees Blow at Competitor.
However" the decision con-
tinued, "it is apparent from the
record that it was also the inten-
ton Of the defendants to re-
strain general and classified ad-
vertisers from making untram-
melled choice between the after
noon newspapers In purchasing
advertising space, and also to SUBJ
stantially diminish the competi-
tive vigor Of the item, the States
only competitor in the afternooni
field"
The Judge rejected Government
contentious that the Times Plea
yune bought the States in 1888 to
restrict competition and that the
afternoon paper operated at al
loss since 194S. He also rejected
a contention that there had been
interference with distribution Of
the Item.
II am satisfied that the evi-
dence with respect to the exaction
Of the unit rate for classified ad-
vertising and general advertising,
and the effects thereof. estab-
fishes violation" Of the Sherman
Act, the Judge said.
David Stern III, publisher Of
the Item, said in an affidavit sup
porting the Governments COM
plant that the forced rates were
responsible for his paper losing
nearly $400, 900 during II months
Of 1850. The Item was not a prin-
cipal In the suit.