Evening star. [volume] (Washington, D.C.) 1854-1972, 1953-03-11
Justice Seeks Ban
On All Newspaper
Combination Ads
By Robert K. Welsh

The Justice Department hoped
today to win a legal war instead
of merely a single case battle at
the start of argument in the
Supreme Court on a combination
advertising rate policy of some
newspapers.
The Government won the first
skirmish last year in an anti
trust suit against the New
Orleans Times-Picayune Publish
ing Co. The Supreme Court to-
day began hearing the company's
appeal from a lower court deci-
sion that it violated the Sher-
man Antitrust Act by requiring
classified and national adver-
tisers to buy space in both its
morning and evening news
papers.
The Government, through the
Justice Department. also is ap-
pealing. Assistant Solicitor Cen
eral Robert L. Stern, scheduled
to open three hours of argument,
said the lower court should have
gone further
Government Goes Further.
The Government, he ex-
planned, wants the Supreme
Court to ban not only forced"
combination rates but also OPP
tional combinations and certain
kinds of discounts to advertisers
under conditions similar to the
New Orleans situation.
The New Orleans company,
which publishes the Times
Picayune in the morning and
the New Orleans States in the
afternoon. reported that more
than $50 other newspapers have
similar unit combination adver-
Using rates for morning and
afternoon publications.
Arguments Listed.
It's brief argued:
1--WE cannot believe that the
Supreme Court will radically ex-
tend the Interpretation and ap-
plication of the Sherman law
by affirming the decision of the
lower court which establishes a
new and novel principle and
definition of monopoly.
IF the decree of the lower
court is affirmed, it will mean
that every newspaper and every
business of any kind in any city,
locality, or geographic area which
has a temporary and transient
so-called dominant position in a
competitive field, is to be treated
as if it were a monopoly within
the meaning of the Sherman law,
and subjected to future and con-
tinuous regulation of it's rates
and activities by the Federal
courts.
IF such a radical and novel
principle is adopted, the Federal
courts will have to perform func-
tions similar to the Interstate
Commerce Commission and other
administrative tribunals"
The Times-Picayune Publish
ing Co.'S combination rate re-
quirement amounted to restraint
of trade against the New Or
leans Item, another afternoon
paper, the Government con-
tends.
Trade Restraint Charged.
The Item is not a direct party
to the pending suit. But the
Supreme Court today allotted
time for attorneys for the BoS-
ton Post to argue in behalf of
the Governments stand.
The Post, in a friend of the
court" brief, said it was the only
Boston morning paper with no
affiliated evening paper. 1t de-
clared that it's three competitors
use "tying-in" advertising con-
tracts similar to those of the
Times-Picayune. It complained
that this deprived it of advertis-
ing and circulation.
Consequences Seen.
Both sides agree that a ST.
preme Court ruling either way
would have far-reaching conse-
quenceS. The New Orleans COM
pany, in its brief, said the lower
court judgment would "have
grave economic impact upon a
major segment of the newspaper
industry and the advertising
public"
It has used the system in con-
nection with classified advertis-
ing since 1885 and the practice
in general has been used for
more than 40 years by some
newspapers.
The Justice Department, in its
brief, declared: THE basic issue
is whether the Government has
won a lawsuit or lost a cause.
In view of the economics of
the newspaper business, the
tying-in contracts are pregnant
not only with the limitation of
competition but also with its
complete elimination"