History
  • No items yet
midpage
The Newspaper Guild v. Edward H. Levi, Attorney General
539 F.2d 755
D.C. Cir.
1976
Check Treatment

*1 McGOWAN, Circuit Judge: narrow, presents case albeit impor-

tant, statutory issue of construction: Does Act of 1970 make it unlawful to enter a joint newspaper operating agreement with- prior approval out the of the Attorney Gen- eral, require prior it rather or does only parties seeking exemp- agreement? tion for such an The District (1968) (separate passing opin- 404 F.2d in a conscientious manner dark, ion). U.S.App.D.C. Davis v. the merits.” *2 756 regu- broadly Supreme more than had the Department Court enjoined a Justice

Court interpreta- Publishing.1 in Citizen the latter implementing lation below, we set forth the reasons tion. For provided: Section reverse. (a) It shall any not unlawful under any person antitrust law to propose, I into, enforce, renew, perform, enter or Act of Newspaper The any joint newspaper operating amend congres- 1801-04 was §§ U.S.C. if, rangement at the time at such a successful anti- against reaction sional into, arrangement is or was first entered of brought by trust suit not more newspaper pub- than one of the Tucson a combination of against Justice performance involved in the lications of since 1940. See newspapers in existence such arrangement publication was a .other States, v. United Publishing Citizen Co. than a failing newspaper. 22 L.Ed.2d 148 S.Ct. (b) Nothing in contained this Act shall be promptly introduced Bills were exempt any construed to from antitrust protect of the 90th houses any predatory pricing, any law predatory twenty-one other publications Tucson practice, any or other conduct in the oth- then-existing joint newspaper operating operations joint erwise lawful of a news- prosecution and agreements from antitrust paper arrangement which liability. H.R. 19123 was referred private would be any unlawful under antitrust Subcommittee, Antitrust engaged law if in by single entity. days hearings; five which held Except Act, provided in this no however, reported not out of commit- was newspaper operating arrangement any Bill, A was tee. similar Senate party exempt thereto shall be any by the favorably reported Senate Subcom- law. Monopoly mittee on Antitrust after At the start of hearings the Senate on S. hearings, extensive but the Com- prof- Senators Dirksen and Brooke act on it before mittee did not have time to fered a number of amendments for consid- the end of that session. eration. Dirksen’s amendment beginning At the of the first session of include, alia, changed section inter Ninety-first Congress, again bills were eventually became the sec- introduced in both the House and tion at issue in this suit: sanction the Tucson combination and to in- (b) It shall be any person unlawful for existing joint operating agree- sulate other into, propose, perform, enter or enforce a prosecution. ments from antitrust Both S. joint operating arrangement, already not pro- 1520 and H.R. contained the same effect, with except prior written by prior congressional visions considered consent of the General of the reviewing committees S. 1312 and H.R. Prior granting United States. such Among objectives, pro- other approval, posed General shall de- public pre- bills declared a interest in termine that not more than one serving publication newspaper publications involved in the where economic distress has caused the cre- performance arrangement ation of such an was operating arrangements. publication failing than a proposals failing newspaper also defined' a other Supreme applied failing compa- “failing newspaper” 1. The Court The term means a ny required possible which, newspaper publication regardless test which that no other except buyer failing company affiliations, existed for the probable ownership or is in its the one with which the was com- danger of financial failure. pleted, prospects reorganization and that 1802(5) (1970). 15 U.S.C. § Bankruptcy Act dim or non- were existent. U.S. at provides: Act contrast Id., later, 48.1. A few weeks however, publish- Depart- Provided, any per; into, gave ment of Justice time, enter notice of an addition propose, may, er proposed purpose section: agreement or enforce perform, not agreement person if such Preservation Act does to the effective law that all require newspaper oper- prohibited ating arrangements Act. obtain the of this writ- date *3 ten consent of the General. Before Subcomm. Hearings on S. 1520 regulations provide The Act and these Monopoly of Senate Antitrust on method for to obtain the ben- 4 Comm., Cong., 1st Sess. Judiciary of efit a limited from the anti- January Hearings”]. On (1969) [“Senate they trust laws if desire to do so. Joint 1520 includ- 30, 1970, passed the Senate newspaper operating arrangements amendment, Cong.Ree. 116 the Dirksen ing put are into without the effect writ- (1970). 2018 ten consent of the Attorney General re- Com- Subsequently, the subject fully main to the antitrust 279, reported H.R. as favorably mittee 23630, proposed Id. at 48.1. The regula- 91-1193, 91st H.R.Rep. No. amended. tion, including addition, was promulgat- (1970). reported The bill Cong., 2d Sess. regulation 2, ed as an interim January substantially language contained Fed.Reg. (1974). 1974. 39 7 4,2 except to section amendment Dirksen Newspaper Guild filed suit shortly comment the final omitted without alleging regulation thereafter that the con- amend- 4(b). H.R. as 4(b) travened section of the Act. On mo- House in lieu of S. ed, accepted by the summary judgment, tions for dismissal and (1970), and Cong.Ree. 23180 116 challenged the District Court declared the without adopted by promptly regulation enjoined invalid and its imple- conference, at 24435. id. Saxbe, mentation. v. Guild 381 passage after year More than one (D.D.C.1974).3 F.Supp. Depart- 53 gave notice Act, Department of Justice appeals of Justice from that final concerning the rulemaking proposed of a order. (1971). with Fed.Reg. Along 20435 Act. 36 filing procedures definitions II arrangements and those the terms of new A literal rigidly reading of section existing amendments to of renewals or undeniably provides support for the District rulemaking in- rangements, proposed conclusion Court’s that “all specified in purpose cluded a section operating arrangements not in effect on part: relevant 24, 1970, July must obtain the regulations proce- set forth the These they may put General’s consent before be may be made application dure But, into F.Supp. effect.” 381 at 53. General for his the Supreme frequently Court has remind-? operating arrange- us, joint newspaper ed “it fundamental that a section of [is] July entered into after a statute should not read in ments isolation Act,

from the context of the whole and that 3. The bill also limited the Government asked the District Court to 2. The House Committee that, existing joint operat- pointed 4(a) exemption reconsider its decision and out section contrary by requiring opinion, ing arrangements terms of a re- in the trial court all amendment to be filed with the De- were not newal or entered language, along newspapers. page- partment competing into of Justice. clarifying U.S.App.D.C., of 176 page additional floor amendment of 539 F.2d 759 infra. amendments not add addi- The court denied this motion and reaf- joint operation, ap- plain language firmed its reliance on tional legislative history adopted. pears F.Supp. in Act as section at 53-54. approval. eral for his interpret really in This is not responsibility our fulfilling situation, guided by Depart- not be an unusual since the ‘we must ing legislation, sentence, ment of Justice now member of a receives notice single sentence' or provisions many impending mergers by par- look to but [should] ” ties, law, object policy.’ seeking its who themselves are ‘release’ and to whole States, 1, 11, procedures letters. I envision the v. U.S. Richards United 585, 592, (1962), quoting to be akin 7 L.Ed.2d to the ‘release’ S.Ct. NLRB, Corp. technique employed by letter now Mastro Plastics U.S. 270, 285, (1956) Department. 100 L.Ed. 309 authorizing Before such ar- S.Ct. omitted); future, g., rangements see e. Harrison v. (footnotes Depart- Co., 476, 479, ment could hear from Northern Trust other interested unions, re- parties competing papers, 87 L.Ed. 407 After etc.— — viewing spirit, investigation, the Act in that we cannot as well as make its own *4 interpreta- agree arrange- that the District Court’s order to be certain that the new 4(b) compelled is either ment justified. tion of section is essential and is underly- of the statute or its the Further, 4(b) will Section act as a history. ing legislative brake other might otherwise prematurely turn to appropriate It is to start with the views joint operating arrangements, without Dirksen, the sponsor of of Senator testing other means of maintaining full eventually amendment that became section competition. commercial and editorial proposed his 4(b). explained He amend- ment as follows: Hearings (emphasis added). Senate at 9 We think it plainly apparent from this expressed

There has been some concern statement that Senator Dirksen did not in- regarding possibility of new op- tend the result reached by the District erating arrangements being established Court, for declaring it unlawful proceed to under the terms of as introduced. Department without Justice consent does are still some 36 or 37 cities where There not resemble in the slightest the release competing are papers two or more com- letter technique employed by the Depart- And, mercially editorially. as well as ment of Justice.4 genuine expressed there has been a fear unions, papers, newspaper suburban Even if purposes Senator Dirksen’s were segments public and some [sic] visible, not already enlightenment further dangers inherent if some of these is to be obtained from a proviso which he improperly were to enter papers other originally proposed part 4(b): joint operating arrangements into “Provided, however, that any publisher —re- sulting might stronger be a com- in what time, may, any into, at propose, per- enter force, and, jobs, the loss of petitive form, agreement or enforce an eventually independent a maybe, loss person agreement if such prohibit- was not viewpoints. ed law to the effective date of this proposing This is what I had in mind in Act.” explained Senator Dirksen the thrust oper- proviso: Before new of that “The Section at the end of' ating arrangements just could come into be- section is to make sure that we papers involved would be re- ing, inadvertently illegal, have made in fact come before the or quired implication, arrangements to Gen- which are bring procedure, proceeding free to Under that release codified at 28 whatever action or it Justice, subsequently required by 50.6 comes to § C.F.R. believe is public request parties, present can state its interest. As a to stated present respect bring action, intention with enforcement intention not however, an enforcement proposed merger acquisition. resulting the Division has never exercised its only right bring review letter “states the enforce- business criminal action where there has intention of the Division as of the date of been full and true disclosure at the time of the letter, completely request.” the Division remains D.C., (em- at 765 of 539 F.2d. Hearings Judge at 9 Tamm Senate lawful.” now reaches that conclusion based on a review added). phasis of the floor discussion in the Senate con- con- directly position Dirksen’s amendments, cerning noting the House that of the District interpretation trary to proponents opponents of the bill the latter’s view certain Court, since granted version recognized that lawful under the that were a more than had the limited violate nevertheless laws would agree bill. We floor discus- Senate example, 4(b). For suggests sion of the House amendments “approve” be unable would General awareness that the House version Senate’s two agreement between “tighten[ed] respect the standards” with newspapers since non-competitive healthy, “failing” whether a grant approval by statute required he is eligible for the antitrust exemp- therefore than one of that no more he finds only if nothing But there is tion. indicates is “other than involved thought Senate 15 U.S.C. failing newspaper.” illegal made what had amendments been 1802(5) (definition fail- (1970); see id. § lawful under the version. Surely Senate if under the Consequently, ing newspaper). concluded that amended is unlaw- interpretation, District Court’s accomplished House version such a major otherwise lawful ar- enter into an ful to change, the issue would have been discussed simply because the rangement directly rather than couched in terms of not— indeed could did not —and General *5 “tightening” availability the standards for consent. give prior written exemption. itself sheds proviso the history The The various reports point committee 4(b). The purpose of section light on the the same direction as did Dirksen. proviso, the version contained initial Senate setting think it worth out in full the above, We which, was inserted to as we noted Report’s “analysis” 4(b): had been lawful making illegal what avoid Act. Newspaper Preservation prior 4(b) applies joint newspaper to Section dropped when the House was proviso operating arrangements that come into the Commit- reported bill was being after enactment of the bill. Such report in the tee, is no indication but there joint newspaper operating arrangements, was deleted. why exemption as to to have benefit of an from page-of U.S.App.D.C., p. laws, 756 of 539 prior the antitrust must have the urged by was supra. The Sen- F.2d Senate Attorney written consent of the General Hruska, manager of the ator granting of the United Prior to States. floor go version rather than the House adopt approval, re- General is conference, that specifically and he noted quired to determine that not more than “modified the two amendments newspaper publications one of the in- amendments and effected other somewhat was a publication volved other than a go substance of 'the bill.” which did not “failing newspaper” as defined in the (1970) (emphasis add- Cong.Ree. 24434 Act. The General also is re- alone, fail- ed). that evidence Based on quired approval to find that of the ar- sup- proviso provides some ure to enact the rangement policy would effectuate the slight, position for the that port, however purposes of the Act. Section make ille- not intended to contemplates General prior to the Act. had been lawful gal promulgate regulations what will as are such appropriate discharge for the of these concludes that dissent nevertheless responsibilities. quo proviso points of the status “deletion 91-1193, Cong., H.R.Rep. No. 91st 2d Sess. requirement of reasonably to a broad more Cong. & Admin.News arrange- U.S.Code for all future prior approval added). We (emphasis U.S.App. pp. at-of ments.” Dissent one inter- Other Report only suggest factors give the House the District can interpretation to have the benefit of an Court’s namely, does not reflect pretation, Congress. written consent intent of exemption, thing, antitrust For one Con- simply put oper- gress provided required; but neither civil nor criminal effect, penalties arrangement into consent is to enforce the new ating substantive required, though purports absent standard it to find in the statute. fully subject to the The dissent argues remains that this “does not rebut the clear directive that must obtain written consent implementing before Report There is Senate joint operating arrangement,” Dissent at supports interpretation 10; if, think, as we that “directive” is far Court, but when read in the context District “clear,” the absence of an enforce- Report interpreta- entire Senate ment scheme cuts the other way. discussing appears tion strained. Re- legislation Senate purposes Furthermore, earlier, as we noted many that the was intended “to port indicates bill anticompetitive without im- grant exemptions past limited antitrust pact qualify do not for Attorney General . and to make this agreements approval given the statutory standard, and insuring newspaper stability method of that as a result the District Court’s inter- danger of finan- available pretation makes unlawful certain op- collapse passage cial after of the bill.” erating agreements to the News- 91-535, Cong., 1st S.Rep. No. Sess. paper Preservation Act were lawful within (1969) added). it (emphasis Surely is some- meaning of the antitrust laws. See what odd to claim that has made page-of of 539 p. U.S.App.D.C., by declaring “available” supra. F.2d We find such a result anoma- proceed “exemp- without unlawful lous in an Act clearly designed to create an Report, tion.” The like the House exemption to the antitrust- laws. Report, imposition nowhere mentions the brings us to the core of our disagree- liability. a new standard of substantive ment with the District Court’s interpreta- *6 debates, respect to the floor we interpretation

With tion. That necessarily im- only reemphasize point plies need the made that Congress sought to limit respect reports above with to the committee arrangements in newspaper the industry by and Dirksen’s statements. There adding the prior approval obstacle of to the are statements effect that new those that would prohibit- otherwise not be come agreements Attorney must before the ed by the antitrust a view Such approval. General for But such statements suggests Congress perceived special a are consistent with the in, Government’s inter- reason to fear special combinations or a 4(b); indeed, pretation legislators difficulty applying in to, laws the normally expected constantly would not newspaper industry. But we have found no magic or, to reiterate the words “in order to evidence in the matter, for that record — exemption” obtain an antitrust while dis- in any public indicating that such debate — cussing very purpose. to that Rather, a bill directed concerns existed. the record re- have been unable to locate statements purpose We veals that just of the Act was indicating proceed it is unlawful opposite permit in combinations —to Attorney without the General’s written con- industry that would otherwise contrary, sent. To the be prohibited by Government’s the antitrust laws. H.R. Rep. 91-1193, brief collects numerous citations to the floor No. Cong., 2d Sess. 3 indicating (1970), debates the purpose Cong. 1970, of the & Admin.News U.S..Code availability p. bill was well understood —the of (purpose 3547 of the provide Act is a “[t]o an antitrust appropriate in cir- limited exemption from the antitrust laws cumstances voluntary application newspaper operating arrange- therefor. ments entered into in the future with the

761 might of the Gen- have been wiser prior written consent to select this method optional of approval, statute eral and my reading history convince is, terms, Congress’s in This statute own this me that is not choice Congress laws exempt from the antitrust “An Act to made. actually combinations certain failing majority survival of news necessary opinion for the concludes that 466; indeed, very regulation sec papers,” 84 promulgated by Stat. Justice De- captioned partment at issue here accurately tion of the Act is interprets See, Lan Jen exemption.” g., Although great e. “Antitrust is due deference an inter- Commissioner, (1st 696, pretation 486 F.2d 700 Chu v. agency statute 1973) caption department charged used in stat- (language enforcement, Cir. with its of in- provides Co., ute least some evidence Red Broadcasting FCC, Lion Inc. v. 395 367, 381, scheme); 1794, White v. congressional tended U.S. 89 23 L.Ed.2d 371 R., Burlington 417 Chicago, Quincy yield & R. deference patent must 941, 1969) (title act can (8th disregard plain F.2d Cir. and unambiguous construing act). The Act of a e.g., be considered statute. Campbell Brown, self-proclaimed response 662, (5th v. speedy was F.2d 1957); Cir. and, Co., Publishing supra, Gardner, Santiago to Citizen v. F.Supp. 156, such, help failing newspa- designed (D.P.R. 1968). additional

pers, place burdens Similarly, a change interpretation healthy ones. the department, while entitled to some def draftsmanship un- Careful would have erence, granted weight is less than long lan- provision whose doubtedly produced standing policy dating passage the in- guage ambiguously indicates less United Healey, statute. States v. 160 U.S. tended result. But the fact that 16 S.Ct. L.Ed. (1895); with less than desired swiftly acted Tallman, 1, 16, cf. Udall 380 U.S. 85 S.Ct. argue rigid does not degree precision 616, rehearing denied, 13 L.Ed.2d reliance literal text of the statute. upon the 85 S.Ct. L.Ed.2d 283 the court need for It rather alerts challenged While regulation delving deeply congressional into the more promulgated by the first Gen- purpose. Legislative history is a contextual response eral in Preserva- textual of con- purely rather than a tool Act, the interpretation appears tion to con- interpreta- that the struction. We conclude flict with the initial determination of As- Court is at with the tion of the District odds sistant General Richard W. “object Congress. policy” See McLaren, Division, repre- Antitrust who States, supra, 369 U.S. Richards v. United sented of Justice in the *7 585. The decision of the 82 S.Ct. hearings before the Senate. therefore reversed. District Court is expressed disapproval Having Justice’s proposed he noted the Depart- also It is so ordered. ment’s dissatisfaction with Dirksen TAMM, Judge (dissenting): Circuit amendments: bill, as I Senator Dirksen’s read it section The issue in this case is whether give would immunity agree- antitrust Act of effect, but already ments would make rule law re- a substantive creates unlawful, prospective agreements unless newspaper agreements en- quiring all approved by Attorney first General approv- 1970 to obtain tered into after finding failing newspaper on a that a majority al of the General. The involved. requires opinion the Act holds instead oppose this the same rea- those We bill for only for ex- that we and for the advantage oppose of an antitrust sons S. wish to take that, as a matter agree I reason emption. additional While regulatory years governmental without oppose vesting disapproval we principle, and, by General. authority deterring arrangements, new would compel failing papers of the future to sell conduct vio- particular or not Whether think, competitors, to their law, depriving should be decided thus we metro- lates the by prosecutor. a politan and not areas of the benefits of competing the courts policies. editorial staffs and The concept of Before the Hearings on Subcomm. a limited newspaper exemption from anti- Monopoly of the Senate on Antitrust and clearly pervades trust law the Act and the Comm., Cong., 1st Sess. history of its enactment. Hearings”) (emphasis add- (1969)(“Senate ed). again stressed this aver- Mr. McLaren itself, Within the statute this antitrust for Justice in regulatory a function sion to milieu is evident. “Antitrust law” is one of hearings. Hearings on H.R. 279 major defined, 1802(1) terms 15 U.S.C. § Before the Antitrust and Related Bills Sub- legislative and the annulment Comm, on the Judici- comm. of the House holding Publishing of Citizen and similar (1969)(“House Cong., 1st ary, 91st Sess. cases pending on the Act’s effective date testimony this Hearings”). Although may refers to alleging actions antitrust law vio- appear equivocal specific as it relates lations, 1804(a),(b). id. at Even the lan- Department issue of whether the Justice guage (section Act) 4 of the arrangements, approve had to all new emphasizes this relationship. Under sub- interpretation given in pall casts a over the (a), existing section certain particularly true regulation. are declared not “unlawful under any anti- original proposed regulation since did law,” (c) trust while subsection assures that filing requirements not limit the the Act will not “exempt any anti- pers seeking immunity. antitrust any trust law predatory pricing, any preda- Fed.Reg. supra. Regard- discussed tory practice, other conduct . challenged regulation less of whether the which be unlawful under anti- change depart- of heart represents trust engaged law if single entity.” reluctantly exercising its unwanted interpretation issue before us arises responsibility or a belated concern with a because this “unlawful under antitrust law” problem interpretation directly faced language before, appear (b). does not in subsection it does not come to us armed with Instead, provision contemporaneous interpreta- simply the force of a states department. tion of the enforcement Fur- shall be unlawful” to enter into new “[i]t thermore, particularly I am hesitant to ac- arrangements without cept interpretation since it conflicts consent of the General. Custom- language my of the Act and ary rules of statutory construction alone reading legislative history. lend credence to the conclusion that use of the term “unlawful under antitrust laws” in out, majority opinion points

As the there (b) all except subsections evidences Con- question is no that the Newspaper Preser- gressional distinguish intent to passed type vation Act was in an new atmosphere of of violation. The late-blooming history, concern that prose- more- over, cution of Justice convinces me that would the broad unfairly penalize existing joint operating employed in exactly means arrangements which had functioned for says:1 what it all new operating ar- *8 end, language rejected plain meaning aids, 1. This circuit has rule and external each accorded authority which forbids consideration of histo- circumstances, deserved in the ry language when the of the statute is clear and weighed must be judicial the balance of unambiguous. e.g., March v. United judgment.” Frankfurter, Some Reñections on States, U.S.App.D.C. 506 F.2d Reading Statutes, 47 Colum.L.Rev. (1974). Murphy, 1313-15 also Old Maxims (1947). See also Train v. Colorado Public “Plain-Meaning Never Die: The Rule” and - Interest Group, Research -, Statutory Interpretation in the “Modern” Fed- (1976). L.Ed.2d 434 Courts, (1975). eral 75 Colum.L.Rev. 1299 As stated, Frankfurter once “In the Justice Felix There has been rangements prior ap- which do not receive some concern expressed regarding the illegal, regardless possibility joint are of whether of new proval op- erating arrangements being otherwise violate antitrust they would established under the terms of S. as introduced. history compro- of the bill reveals a There are still some 36 or 37 cities where protecting mise measure aimed at labor and two papers or more competing are com- financially competing papers pre- as well as mercially as well editorially. And, as serving competition. editorial Senator there has genuine been a fear expressed Dirksen, proposed his explaining amend- papers, newspaper unions, suburban Act, to section 4 of the stated: segments public some and [sic ] pro- a new which is Sec. dangers inherent if some <5fthese joint any vides that future ar- papers other were improperly enter rangements must have Justice De- joint into operating arrangements —re- partment way, consent. In this the inter- sulting in what might be a stronger com- papers est of the suburban and the unions petitive force, jobs, and, loss of Depart- the Justice will be considered maybe, eventually a loss of independent arrangements new are ment before viewpoints. authorized. This is what I had in mind in proposing 4(a) (b) These two new subsections Section Before new oper- compromise for all provide a reasonable ating arrangements could come into be- parties equities involved. The ing, papers involved would be re- present joint oper- situation in the 22 quired to come before the Gen- maintained; cities will be ating sub- eral for his approval. . Before newspapers pro- and unions will be authorizing urban such in the fu- ture, future; Department excep- and a broad could hear tected other interested parties competing laws has pa- tion to been avoid- — unions, pers, etc.—as well as make its ed. investigation, own in order to be certain Hearings (emphasis added). at 5 He the new is essential expanded upon compromise later justified. and is theme: Further, Section will act as a new designed to offer brake other newspapers which protection a means of to the small subur- might prematurely otherwise turn to weekly newspapers, ban and and to news- joint operating arrangements, without unions, employees paper and their while testing maintaining other means of full preserving separate editorial voices commercial and competition. editorial flourishing now in the 22 cities with at (emphasis added). Id. 8-9 See also Re- It operating arrangements. offers a Hruska, marks of Cong.Rec. which should compromise solution meet 2005-06 the immediate needs of all involved: sponsor As of the amendment and a papers joint operating now in those strong supporter Senator Dirk- rangements, some sen was well aware competing inter- day operations have to turn to ests that proposed would be affected survival; only chance for suburban their legislation. Both the of Jus- compete with the met- tice and the Federal Trade Commission revenue; papers advertising ropolitan strongly opposed fragmen- were to further employed by who are workers tation of the antitrust laws. See Senate significantly, pers; public and most 294-312; Hearings Hearings at interest. 357-403,475-96. addition, the American adopted Bar Association echo- a resolution *9 the 23143 19123 Related Bills Before Anti- Cong.Rec. opposition. ing this Comm, Subcomm. the on unions associated trust of House the a few local (1970). While arrangements Judiciary, Cong., Sess., ser. 90th 2d at existing joint operating with 357-64, Newspaper (1968); Hearings 367-422 on American the supported Ty- 1312 Before the on AFL-CIO, International Subcomm. Antitrust and Guild, Comm, Monopoly Press of Union, England New on the Judi- Senate pographical Sess., 105-72; newspaper ciary, Cong., pt. 1, in the 90th at and others Association 1022-34; 2545-68, 2615-23, at strong disapproval. pt. pt. at registered industry 42-43, 2625-52, Hearings at 56- 2673-97. The Dirksen House amendment Compare 427-28; 404-13, Hearings response with Senate to section was a clear to these 238-49, also House Hear- concerns. at 287-90. See 427; 414-20, Cong.Rec. 23175 ings at majority opinion heavily relies on the publishing Both proviso to the Dirksen amendment which allowing fu- expressed fear that employees maintained the legal status of activi- anti- arrangements unduly ture would be illegal ties not existing under antitrust laws jobs. cause competitive and would loss of provision at that time. if this Even would England Press Association The New against require- have militated absolute legislation “designed was claimed that approval suggested change from central prevent to this natural 4(b),2 rejected remainder of was section strong newspapers” to suburban city dailies and, upon reconsideration, by damage great “do to individual and would Senate. The House Commit- Hearings at owners.” House favorably reported tee the bill in the form Loeb, publisher of the Man- 427. William which section now appears. No indi- Leader, cautioned the com- chester Union cation in the report explains why Dirk- mittee that sen amendment only partially was accepted. [tjhere weekly papers are thousands Hruska, Senator floor manager for the bill States, United throughout whole its House, return from the urged newspapers, small adopting [Commit- of the House version without hav- heard, are tee have not who go ing members] conference. As for violently opposed legislation. Un- to this changes, he only: stated fortunately neither the means they have just week, The other body, last modified bring effectively nor association to so the two amendments somewhat and ef- larger their views as have the to bear fected other amendments which did not impor- this is the newspapers, BUT—and go the substance of the bill. thing to read- tant remember —their total Cong.Rec. (1970) (emphasis add- very large indeed. ership is ed). While the statement intimates that Hearings at 510. The House minor, the House amendments were jobs loss while the Interna- Guild claimed supporters opponents of the bill recog- hor- Typographical tional Union recounted major changes nized the substantive creat- problems ror stories labor encoun- ed House. One minimally alteration existing arrangements. acknowledged tered by Senator Hruska was the problems 289-90. These Hearings fact the House bill created far more greater articulated in detail in the exemption been limited than had had the Senate ver- hearings newspaper pres- on sion.3 Since change 1967-68 this substantial Hearings H.R. e.g. Hruska, brushed off lightly bills. re- ervation ing arrangements might requiring have that this terms of a It is conceivable re- expand Gener- newal or to be amendment filed with the intended De- been arrangements partment approve language, along not con- power Justice. with al’s principles general clarifying rather additional flicting floor amendment types amendments not add addi- to limit than joint operation, tional ap- approval. obtain must pears adopted. in the Act as bill also limited the Committee operat- existing joint 4(a)

765 price fixing the Dirksen to come into on his statement existence. liance Any “somewhat” agreements approved had been modified new must be amendment agree rather with the I would in risky. advance General. seems the district court evaluation thoughtful quo of the status deletion

that deliberate that, I compro- Id. believe in this reasonably to a broad points more setting, pro- mise the House deletion of the all approval for future requirement protect viso reflects a desire to even more particularly seems arrangements. completely groups labor and suburban since, arguments spite in of vociferous true sparked whose interests had the Tucson case settlement final Senator Dirksen’s amendment. law allowed that current antitrust proved majority argues The also that if all, most, joint operating of the if not liability had intended new standard for failing papers, pro- rangements needed for all future operating arrangements upon insisted of the bill still ponents provided would have penal- civil or criminal See, in section 4. e. provided exemptions ties, whereas the (1970). 1802-03 In order Cong.Rec. 116 g., penalty Act has no section. Although I believe, I exemptions, these to maintain readily agree that this omission may indi- accepted further limitations in proponents thorough cate a lack of planning by Con- 4(a) strengthened prior ap- gress, it does not rebut the clear directive assuage the fears proval must obtain written con- Excerpts opposed those who the bill. implementing sent before quid illustrate the debate arrangement. Act, applying The as it does pro quo nature of section law, to federal may have created a addition, ... Mr. McCulloch. specific new subject antitrust violation prospective application excep- of this penalty provisions enforcement carefully circumscribed tion now Act, the Federal Trade Commission requiring the consent of Act, Clayton Sherman Anti-Trust and the joint newspaper General for future See, e.g., 3-4, Act. 15 U.S.C. §§ 15-15a, arrangements. 21, 25, (1970); 1-2,45, 50, as amended §§ (1970). Cong.Rec. 23148 (Supp. 1974). IV violation form Recognizing Mr. Railsback. . . the basis for implying right for the Attor- part of the inactivity the historic injunctive ney General seek relief. Per- agencies and the reliance enforcement remedies, haps civil as suggested by appel- inactivity by such various lee, 18, Appellee’s Br. at are appropriate. existing pers effecting currently noted, As the trial court properly this suit joint newspaper operating arrangements, challenging regulation the interim does not provides relatively more liberal the bill what, present any, the issue of if remedy is determining for whether the an- standard applied. F.Supp. at 52-53. If exemption applies to such ar- titrust arises, and when question the court Nevertheless, rangements. prospective will apply guidelines be able to the recent availability of the has been Supreme implied as to Court reme sharply by requiring restricted the con- Ash, e.g., 66, dies. Cort General sent 2080, (1975); S.Ct. 45 L.Ed.2d 26 National joint arrangement. future Passenger Corp. Railroad v. National Asso opponent at 23154. also remarks Id. Passengers (“Amtrak”), ciation of Railroad Mr. Edwards of California: 414 U.S. 38 L.Ed.2d denied, rehearing did 415 U.S. 94 S.Ct. Committee [House] 1478, 39 (1974); L.Ed.2d 568 J. I. Case Co. v. Senate-passed version

improve Borak, for new 377 U.S. 84 S.Ct. making it more difficult Comment, sharing agreements providing profit L.Ed.2d See also Pri- Amtrak and more than one newspaper publica- Action Under Rights of vate *11 Implication, for tions Implications arrangement pub- involved in the is a Ash: Some Comment, (1975); failing lication other than a newspaper, 123 U.Pa.L.Rev. and Private Ac- Implied approval arrangement of such The Phenomenon would Judicial In- effectuate policy purpose Federal Statutes: tions Under of this Oversight Legislation chapter.” 1803(b) (1970). or 15 U.S.C. sight, Legislative § Department argues 43 Fordham L.Rev. Justice that since Judiciary?, many Congress when (1974). only non-anticompetitive arrangements I observe could test, illegal approved conduct not be Congress declared under this past has in the remedy, possibly the courts could not have intended this prescribing result. without capable fashion- have shown themselves The compromise measure selected carry to out the ing procedures enforcement legislature acknowledged is an deviation See, e.g., v. legislative scheme. Sullivan principles. from basic antitrust It is not 229, 238, Park, Inc., Hunting 396 U.S. Little that, just Congress exempt- unthinkable (1969); 400, 24 Jones v. L.Ed.2d ed newspaper profit certain pooling and Co., 414 n. Mayer Alfred H. 392 U.S. price fixing arrangements from the anti- (1968) 20 L.Ed.2d 88 S.Ct. laws, subjected trust it industry also remedy from 42 (implying equitable U.S.C. more stringent requirements for any coop- (1970) guarantees to all citi- erative pointed ventures. As out frequent- right “enjoyed by zens the white citizens” ly during discussion of the Congress There is no dispose property).4 to own or already had special carved out antitrust judiciary would reason believe banks, rules agricultural cooperatives, for carry- this same skill in apply be unable to professional sports. e.g., 116 ing policies out the dual Cong.Rec. 1789 Preservation Act. course, equally possible Of it is majority opinion points also out that subjecting arrangements all approval, joint definition of a very the Act’s broad protecting thus unions and other operating agreement5 many covers ar- results, pers from adverse Congress simply rangements which would not have been ille- which, protect failed to another interest if laws, gal e.g., using antitrust considered pressing under less time stric- fixing joint production tures, facilities without ad- it might decide to foster. Our func- vertising or circulation rates. The standard statute, however, tion in interpreting the is gauge which the General must guess not to second what would submitted for his today problem decide if this of the industry stringent: presented he must “determine that not were resolution. many We note also the instances where or other entered into two or private courts have fashioned remedies publication more owners for the regulatory legislation only govern- prescribing newspaper publications, pur- of two or more See, e.g., mental J. I. v. enforcement. Case Co. production suant or common Borak, 377 U.S. 84 S.Ct. 12 L.Ed.2d operated facilities are established or (1964) (private right of action under sec- agreed or unified action is taken or to be 14(a) Exchange tion of the Securities Act of respect taken with one or more of the 1934); Fitzgerald v. Pan American World Air- time, method, following: printing; and field Inc., ways, (2d 1956) (private 229 F.2d 499 Cir. publication; production allocation of facil- remedy passenger racially discriminated ities; distribution; solicitation; advertising against in violation of section solicitation; department; circulation business Act). Civil Aeronautics These cases would be rates; advertising establishment of establish- particularly relevant if a later court should de- ment of circulation rates and revenue distri- special termine that section creates a Provided, merger, bution: That there is no general antitrust violation under the combination, amalgamation of editorial or staffs, reportorial policies and that editorial (2) “joint newspaper operating The term independently determined. contract, rangement” agreement, means 1802(2) (1970). 15 U.S.C. § (whether incorporated), venture or not way: put “We do not

Cardozo whether pause consider a statute dif- AMERICAN TELEPHONE AND TELE- ferently conceived and framed would COMPANY, Appellant, GRAPH results more consonant with fair- yield take this ness and reason. We statute as we find it.” . . An omission at the FEDERAL COMMUNICATIONS enactment, time of whether careless or COMMISSION, calculated, judicially supplied cannot be

however much later wisdom recom- Corporation MCI Telecommunications *12 mend the inclusion. Systems, United States Transmission Frankfurter, Inc., supra note at 534. The Intervenors. interpret according court must the Act No. 74-1953. history, relying its terms and its on Con- gress legislation to remedy is overin- United States Appeals, Court of clusive under-reflective. District of Columbia Circuit. passing Argued Sept. Act, Congress attempted to balance the perceived of what it competing interests Decided July industry against threatened dangers anticompetitive practices. highly opposed by controversial organizations unions and national of subur- newspapers,

ban was amended numerous allay the fears of its opponents times few newspapers that a would be benefited expense industry. at the of the entire prior approval concept, presented first amendment,

the Dirksen introduced an ele- governmental supervision ment of to limit arrangements. use of future not have considered all the ramifica- imposing requirement tions of on every agreement regardless compli- future of its laws, legisla- ance with other antitrust eager prevent private litigation tors against existing arrangements may have provide adequately

failed to for enforce- compromise ment of the measure. These however, possibilities, unfortunate do not change Congress appears the fact that agree- have selected a wherein all scheme subject prior approval. ments would I must conclude with the district court that expansive language 4(b), calculated,”

“whether careless or is clear supported history. For respectfully these reasons I dissent.

Case Details

Case Name: The Newspaper Guild v. Edward H. Levi, Attorney General
Court Name: Court of Appeals for the D.C. Circuit
Date Published: Aug 19, 1976
Citation: 539 F.2d 755
Docket Number: 75-1014
Court Abbreviation: D.C. Cir.
AI-generated responses must be verified and are not legal advice.