The daily Nebraskan. ([Lincoln, Neb.) 1901-current, February 08, 1983, Page 3, Image 3
Tuesday, February 8, 1983 Daily Nebraskan OflTmalha pap Li u By Kevin Hankcn Oral arguments in the anti-trust lawsuit filed by the Sun Newspapers Inc. of Omaha will begin Feb. 15 before U.S. District Judge Warren Urbom in Lincoln. Defense attorneys for the Omaha World-Herald were given one week to submit a written brief detailing the evidence to Judge Ui bom. following Thursday morning's hearing. The hearing began Jan. 31 . The Sun Newspapers are seeking an injunction against the World-Herald and its subsidiaries to try to limit their operations in Douglas and Sarpy Counties. The lawsuit, filed Nov. 30, charges the World -Herald with illegally monopolizing the Omaha newspaper's ad vertising market to try to drive the Sun Newspapers out of business. Sun owner Bruce Sagan of Chicago testified earlier this week that Sun Newspapers is losing $30,000 to S40.000 a month, and unless the court decides in the sun's favor, the newspaper will be forced out of busi ness within weeks. The Sun contends that World-Herald business practi ces violate the Sherman-Clayton anti-trust laws. A Chicago marketing research firm employed by the Sun papers estimated that in 1981, the World-Herald and its subsid iaries received 82 percent of all revenue from Omaha area print advertising. The Sun's share was only 7 per cent . In 1980, the World-Herald purchased the Papillion weekly newspapers, which included the Papillion Times, LaVista News, Ralston Recorder, Springfield Monitor and the Gretna Breeze. In the spring of 1981, the World-Herald purchased Rapid Printing, which at that time was printing the Step Saver, a free publication of Sun Newspapers featuring mostly advertising. Sagan said he purchased both Sun Newspapers and Step Saver in February of 1981 . WSOOD n John Brown, Rapid Priming's president, testified Wed nesday that before the World -Herald's purchase, he and Sagan had discussed the possibility of Rapid Printing printing for Sun Newspapers and a few of its subsidiaries. Brown testified that although he told the World-Herald of those discussions, he gave them no information about the Sun's advertising customers. Under the World -Herald's ownership, Rapid Printing began offering "marriage-mail" advertising circulars. Marriage-mail advertising - mailing advertising circulars separately or inserted in newspapers - is allowed by new postal regulations and reduces advertising mailing costs. Rapid Printing gave advertisers low prices and the opportunity to have inserts sent to selected parts of Douglas and Sarpy Counties. The World-Herald began offering marriage-mail ad vertising to its customers with the option of placing their ads in the newspaper and also sending those ads to non subscribers using marriage-mail circulars. Sun General Manager Dixie Cavener testified that she had been told by an advertiser that the World-Herald had purposely reduced prices to get advertising business. The World-Herald has denied such allegations and said that competition between the two publications "has Wen open and above-board." John Gottschalk, a World-Herald vice president, testi fied Wednesday that in the spring of 1981, the paper felt it needed to expand its advertising to the entire Omaha area, and that the idea of marriage-mailing ad vertising was an initiative of their advertising personnel. He denied that Brown participated in any of their dis cussions. Sagan testified that because of Rapid Printing's advertising practices, the Sun lost 13 advertising custo mers who accounted for $352,443 in annual revenue. Brown said he was certain that another company would begin mailing advertising packets if Rapid Print- if aGMUJTCOWS ing were ordered to stop mailing the circulars. The Sun would be among those companies consider ing marriage-mailing, Sagan said. A similar lawsuit has been filed by the Anti-Trust Division of the U.S. Department of Justice against the Orlando Sentinel-Star in Orlando, Fla., to force the Chicago Tribune to sell its five weekly publications in Orlando. In the May 27, 1982 edition of The New York Times, the Orlando suit was described as possibly having "wide repercussions in the newspaper industry." The Times said the suit was the first challenge to daily newspapers acquiring or purchasing weeklies or shoppers in the United States. That suit is still pending. 1 UiVMI IDViWV" !A,yi ttiiiirififlit -itiii & "Hi X i o STOCK CONSOLIDATE!) FKOM THEE! STORES! O ALL 171BJTEE FASHIONS MUST GO! O EAOLYBHE2D PEICES OBJ ALL THE T-JEVJ SPBHMG FASHIONS! r 0f O LAYAtnJAYS WELCOME! Li 13th mon. -Saturday 10-6 thursday 10-9 I 1 1 1 10 special smiucty-micms x-u j n ci iv V V I BANK CARDS WELCOME 144 No Idtik S3. -t i