Document: 342 U.S. 143 72 S.Ct. 181 96 L.Ed. 162 LORAIN JOURNAL CO. et al.v.UNITED STATES. No. 26. Argued Oct. 17, 1951. Decided Dec. 11, Mr. William E. Leahy, Washington, D.C., for appellants. Philip B. Perlman, Sol. Gen., appellee. Justice BURTON delivered the opinion of Court. 1 The principal question here is whether a newspaper publisher's conduct constituted an attempt to monopolize interstate commerce, justifying injunction issued against it under §§ 2 and 4 Sherman. Antitrust Act.1 For reasons hereafter stated, we hold that was justified. This civil action, instituted by United States in District Court Northern Ohio, Lorain Journal Company, Ohio corporation, publishing, daily except Sunday, City Lorain, called Journal. complaint alleged together with four its officials, engaging combination conspiracy restraint commerce violation § Sherman Act, 15 U.S.C.A. 1, such as well attempting 2.2 declined issue temporary but, after trial, found parties were charged. Confining itself issue, court enjoined them from continuing attempt. 92 F.Supp. 794. They appealed this Expediting Act 1903, 32 Stat. 823, amended, 62 989, U.S.C. (Supp. IV) 29, issues before us are those arising finding terms injunction. 3 appellant publisher, has published since 1932. In year it, others, purchased Times-Herald which only competing paper city. Later, without success, sought license establish operate radio broadcasting station Lorain. 794, 796, see Co. v. Federal Communications Comm., 86 U.S.App.D.C. 102, 180 F.2d 28. below describes position Journal, 1933, 'a commanding overpowering one. It circulation over 13,000 copies reaches ninety-nine per cent families city.' at 796. industrial city on Lake Erie population about 52,000 occupying 11,325 dwelling units. Sunday News, appearing Sundays, other there3 5 While but 165 out Journal's 20,000 sent publishes not news substantial quantities state, national international news. pays sums feature material shipped various parts rest world. carries quantity advertising throughout States. Shipments payments incidental above matters, purchases ink, involve many transactions or foreign commerce. 6 From 1933 1948 publisher enjoyed monopoly mass dissemination advertising, both local character. However, Elyria-Lorain Broadcasting corporation independent licensed Commission Elyria, eight miles south whose call letters, WEOL, stand Oberlin Lorain.4 Since then operated studio Elyria branch twice far largest community station's immediate area. much smaller than it. 7 affiliated network disseminates intrastate advertising. About 65% program consists music broadcast electrical transcriptions. These leased out-of-state suppliers. Most copyrighted royalties holders copyrights. 10 12% news, world-wide coverage, gathered Press Associations. received outside relayed through Columbus Cleveland. April, 1949, March, 1950, 100 sponsored sports events originating states. 8 Substantially all income derived broadcasts advertisements goods services. 16% comes contracts advertisers Ohio. produces continuous flow copy, materials moving across state lines.5 9 appellants knew number wished use facilities well. some essential promotion their sales County. times WEOL commenced broadcasting, had executed plan conceived eliminate threat competition station. Under refused accept any County advertiser who advertised believed be advertise WEOL. expressly purpose intent procedure destroy company. characterized 'bold, relentless, predatory commercial behavior.' To carry appellants' plan, monitored programs determine identity advertisers. Those using terminated able renew ceasing effective. Numerous merchants testified that, result policy, they either ceased abandoned plans 11 'Having desire injure station, no more effective direct device impede operations restrain could cut off bloodstream existence—the revenues control life demise. 12 '* * very existence imperiled attack upon one sources business income.' Id., pages 798, 799. 13 provisions set forth report case printed Appendix, infra, 188, 189. Sections IV V B decree, relating notices, stayed pending final disposition appeal. 14 1. complained consisted practice refusing Because complete practically indispensable coverage 99% families, forced numerous refrain That reduced customers available field strengthened field, significantly tended altogether. Attainment sought-for elimination would automatically restore national, local. deprive merely surrounding communities nearby There suggestion distribution coupled considerable engaged purchase operating supplies, provided, event, sufficient basis classifying entire operation pointed also publication so inseparably integrated coercion used securing inevitably strengthen operation, including 16 necessary, however, rely suggestions. findings go further. unequivocally aimed larger target—the destruction 1948, transmitted dissemination, products sale offered these fields fact end invasion newspaper's commerce.6 17 can little doubt today nation world agencies specially organized part Associated States, 326 14, 65 1416, 1421, 89 2013; National Labor Relations Board, 301 103, 57 650, 81 953. same true offering scale. requires transmission payments, say nothing involved delivery sold. decision Blumenstock Bros. Curtis Pub. Co., 252 436, 40 385, 64 649, related making rather preparation Moreover, view there insertion periodicals nationwide did amount rested line cases holding 'that policies insurance articles mere incident intercourse.' 443, page 387. See Paul State Virginia, Wall. 168, 19 357, New York Life Ins. Deer Lodge County, 231 495, 34 167, 58 332. longer stands way. South-Eastern Underwriters Ass'n, 322 533, 1162, 88 1440. also, North American Securities & Exchange 327 686, 66 785, 90 945; Indiana Farmer's Guide V. Prairie Farmer 293 268, 55 182, 79 356. 18 within sole profitable reproduction reading public inseparable involved. Binderup Pathe Exchange, 263 291, 309, 44 96, 99, 68 308; Stafford Wallace, 258 516, 42 397, 735; Illinois Central R. De Fuentes, 236 157, 163, 35 275, 276, 59 517; Swift 196 375, 398, 25 280, 49 518. Unless protected law, consuming mercy restraints monopolizations whatever points occur. Without protection outlets earlier stages worth. 2. regain forcing boycott violated trial describe Government relies. circumstances important. most illuminating families. factors made medium concerns. Accordingly, refusals print like often amounted prohibition purpose. supplement afford discontinue order radio. 20 WEOL's greatest potential source Loss major existence. and, time, pre-1948 21 charged, necessary show success rewarded monopolize. injunctive relief forestall success. succeed insofar deprived income, yet been eliminated. may save '(W)hen (to monopolize) consequent dangerous probability exist, statute (the Act), common law cases, directs completed result.' 396, 279, Tobacco 328 781, 1125, 1575; Aluminum Cir., 148 416, 431. 22 '(T)he 2d section (of Act) seeks, if possible, make prohibitions act perfect embracing attempts reach prohibited 1st section, is, trade, monopolize, monopolization thereof, even although acts results attempted brought embraced general enumeration section.' Standard Oil Jersey 221 61, 31 502, 619.7 23 Assuming character involved, seems clear newspapers city, eliminating conspired anyone violate Act. Cf. Fashion Originators' Guild Trade 312 457, 465, 61 703, 706, 85 949; Comm. Beech-Nut Packing 257 441, 150, 307; Loewe Lawlor, 208 274, 28 301, 52 488; Goldman Theatres Loew's, Inc., 150 738. consistent single newspaper, already enjoying area, violates 'attempt monopolize' clause when uses threatened competition.8 24 claims right private concern select refuse advertisement whomever pleases. We do dispute right. 'But word 'right' deceptive pitfalls; easy slip qualified meaning premise unqualified conclusion. rights qualified.' Bank Trust Reserve Bank, 256 350, 358, 41 499, 500, 983. claimed neither absolute nor exempt regulation. Its exercise purposeful means monopolizing operator equally entitled 'In absence create maintain monopoly, does restrict long recognized trader manufacturer entirely business, freely his own discretion whom he will deal'. (Emphasis supplied.) Colgate 250 300, 307, 39 468, 63 992. 15, 1422, Bausch Lomb 321 707, 721—723, 805, 812, 813, 1024. 3. guaranteed freedom press. suggests amounts prior what publish. find restriction applies others. deny trade among several *.' 2; supra, 6—7, 20, 1418, 1424, Oklahoma Walling, 186, 192, 494, 497, 614; Mabee White Plains 178, 184, 511, 514, 607; Injunctive appropriate enforcing 26 4. decree reasonably requirements remains below.9 have considered objections form substance obvious error. suggested, example, covers broader scope activities required evidence unnecessary supervision future notice must least once week weeks five years records subject judgment keep accessible governmental inspection. 27 should anticipate probabilities future, important impose restrictions prescribed supervision, giving notice, keeping inspections unduly burdensome. instant record contains testimony exhibits below. omits mentioned during having denying Government's motion content court's retention jurisdiction cause modification require light proceedings subsequent events. 22—23, 1425, 1426, 727—729, 815, 816, 29 accordingly affirmed. 30 Affirmed. CLARK MINTON took consideration case. APPENDIX. 33 'FINAL JUDGMENT— 'III 'Defendant Company restrained from: 36 'A. Refusing publish discriminating price, space, arrangement, location, commencement period conditions where reason refusal discrimination whole part, express implied, person, firm submitting advertised, advertises, proposed proposes medium. 37 'B. Accepting publishing adhering contract accompanied condition, agreement understanding, implied: 38 '1. shall defendant Company; '2. 'C. Cancelling, terminating, manner impairing contract, involving advertisements, between defendants, them, reason, advertises corporate defendant. 'IV 'Commencing fifteen (15) days entry twenty-five thereafter insert fairly fully apprise readers thereof substantive placed conspicuous location. 43 'V individual defendants ordered directed to: 45 Maintain (5) date judgment, books records, include correspondence, memoranda, reports writings, matter judgment; 46 Advise writing ten (10) officers, agents, employees, persons acting for, each every person judgment. readily copy inform availability. 47 'VII 48 'Jurisdiction retained enabling apply time further orders directions relation construction of, carrying amendment enforcement compliance therewith punishment violations thereof.' 'Sec. Every combine conspire persons, nations, deemed guilty misdemeanor *. district courts hereby invested prevent act; duty attorneys respective districts, direction Attorney General, institute equity violations. *' 209, 1167, 4, 2, named Samuel A. Horvitz, vice president, secretary director corporation; Isadore treasurer director; D. P. Self, manager; Frank Maloy, editor. Each participated constitute Maloy died News weekly 3,000 copies, largely Chronicle-Telegram daily, away Elyria. 9,000 none Cleveland Plain Dealer, metropolitan Cleveland, east combined 6,000. Dealer 11,000. papers No reference argument WEOL—FM two stations treated operates frequency 930 kilocycles 107.6 megacycles. outlines primary listening market area half millivolt daytime pattern nighttime pattern. day containing counties estimated 2,250,000. night nine 450,000. includes Oberlin, 120,000 people, live Other services behalf suppliers sometimes shipments. Orders filled lines. heard regularity people southern Michigan. application led conjunction another license, Michigan possible conflicts 'any States' relates geographical appreciable 'The sections distributive significance distinguished classes things forming commerce.' 185, Griffith, 334 100, 106, 941, 945, 1236; Yellow Cab 332 218, 225, 67 1560, 1564, 91 2010; Montague Lowry, 193 38, 608. 'Section restricted conspiracies combinations makes crime indeed 'unreasonable, se, foreclose competitors market.' anti-trust laws prevention destruction. follows fortiori power, however lawfully acquired, competition, gain competitive advantage, competitor, unlawful.' 106—107, 1236. Appellants justify ground competition. out-of-town might compete classified competitor asked employ principle thus because chosen market. Nor permitted dictate prospective facilities. A

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