Matthews v. Associated Press of State York

• Decision Date: 17 January 1893
• Parties: MATTHEWS et al. v. ASSOCIATED PRESS OF STATE OF NEW YORK et al. BLEISTEIN v. Same.
• Court: New York Court of Appeals Court of Appeals

136 N.Y. 333

32 N.E. 981

MATTHEWS et al.

v.ASSOCIATED PRESS OF STATE OF NEW YORK et al.

BLEISTEIN

v.Same.

Court of Appeals of New York.

Jan. 17, 1893.

Appeal from supreme court, general term, fifth department.

Actions by George E. Matthews and others, and by George Bleistein, as president of the Courier Company, respectively, against the Associated Press of the state of New York and others, for an injunction. From an order of the general term (15 N.Y.Supp. 887) reversing an order of the special term granting the injunction, plaintiffs appeal. Affirmed.

Allen, Movius & Wilcox, (Ansley Wilcox and Charles B. Wheeler, of counsel,) for appellants.

Payne & O'Brien, (S.E. Payne, of counsel,) for respondents.

PECKHAM, J.

The plaintiffs (appellants herein) procured at special term an injunction against the defendant the Associated press, etc., restraining it from suspending the plaintiffs from any of the rights or privileges of or in the Associated Press, and from withholding from the plaintiffs (who are printers and publishers of newspapers at Buffalo, in this state) the regular telegraphic news and reports procured and furnished by the Associated Press to its members, for or on account of any alleged violation by the plaintiffs of the provisions of the twenty-fifth by-law of the association. The plaintiffs are members of the association. Upon appeal from the order granting the injunction the general term reversed the same upon the ground that the action to obtain a permanent injunction could not be maintained upon the facts set forth in the complaint and affidavits. The plaintiffs appealed from the order of reversal to this court.

The record shows that the defendant the Associated Press of the State of New York was incorporated by virtue of an act of the legislature of this state, passed April 24, 1867, (chapter 754 of the Laws of that year,) and entitled “An act to incorporate the Associated Press of the State of New York.” In the act the objects of the association are stated “to be the mutual protection of members of the press, procuring and supplying its members with telegraphic news, upholding and elevating the character and standing and the promotion and maintenance of the general interest of the profession and its members.” Some time subsequent to its formation the defendant adopted a by-law known as “No. 25,” a part of which is as follows: “(25) No member of this association shall receive or publish the regular news dispatches of any other news association covering a like territory, and organized for a like purpose, with this association.” The by-law then proceeds to provide a penalty for the violation of this provision in the form of a suspension of all the rights and privileges of the association, after an opportunity has been given the accused party to be heard. It also appears from the complaint that there is a United Press Association, which is organized and engaged in procuring and supplying its members with telegraphic news from various parts of the world, and the plaintiffs are members thereof, and by means of its reports and dispatches furnished to them the plaintiffs receive and publish in their newspapers other and different telegraphic news from different parts of the world than that procured and furnished by the defendant corporation, and the plaintiffs are thus enabled to increase the reading matter published in their newspapers; and to give fuller and more complete telegraphic news of matters of general and public interest than plaintiffs would otherwise be enabled to do by publishing only the regular news and dispatches of the corporation defendant. The plaintiffs allege that the United Press Association is not one which covers a like territory, and that it is not organized for a like purpose with the defendant corporation, within the meaning of the by-law in question, but that it covers a far wider territory, and is organized for a more extended purpose. It is alleged that the defendant corporation only has agents for the collection of news within the state of New York, and that the news which it procures from other portions of the world is collected by other news or press agencies, and delivered to the defendant corporation under contracts made by it; whereas the United Press Association has agencies for the direct collection of news for it from various parts of the world, outside as well as inside the state of New York. It is alleged that the defendant corporation is about to enforce the above-mentioned twenty-fifth by-law as against the plaintiffs on account of the receipt and publication by the plaintiffs of the news and telegraphic dispatches collected and sent to them by the United Press Association. The membership in the United Press Association, and also in the defendant corporation, is a valuable property right.

The plaintiffs, upon the argument of the appeal, here have raised two questions: (1) Whether the by-law in fact prohibits the receipt and publication by them of the dispatches of the United Press Association; (2) if it does, whether it is legal and enforceable.

As to the first question, I think the by-law does in fact prohibit such receipt and publication, because the United Press Association covers a like territory, and is organized for a like purpose, with the defendant corporation. There is no limit in the charter or act of incorporation of the defendant by which it is confined to any particular territory in the procuring and supplying of its members with telegraphic news. The act leaves it entire freedom to obtain such supply from the whole world. There is no by-law which has been called to our attention that imposes any limit. As there is neither charter nor by-law which limits the territory that the defendant corporation may cover in the execution of its object and purpose, so the record discloses no limitation in that territory arising from the practice of the corporation. It in truth obtains, serves, and supplies its members with news from all over the world. It accomplishes this object in different ways; sometimes directly by means of agents, strictly so called, and at other times by means of contracts through or with other news agencies, which themselves directly employ agents for the collection of news. In this way the defendant corporation secures news from all over the world, and supplies it to its members. The fact that the defendant appoints and engages ‘'agents” in the, strict sense of the term, only within and for the state of New York, is not conclusive proof that its territory for collecting news is limited to that state. The record shows that it performs the purpose of its incorporation, not alone by obtaining news from these so-called “agents,” but that by virtue of contracts entered into by it with other associations it contracts to and does receive from them the news which they collect from the principal portions of the civilized world, and in thus contracting for the supply of and the...