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Lorain Journal Company v. United States

342 U.S. 143 (1951)

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Lorain Journal Company v. United States

United States Supreme Court

342 U.S. 143 (1951)

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Facts

Lorain Journal Co. (Journal) (defendant) published newspapers in Lorain, Ohio. In 1932, the Journal bought the Times-Herald, which was the only other newspaper operating in Lorain. Thus, the Journal was the only daily newspaper in Lorain. By 1933, the Journal’s circulation reached 99 percent of Lorain households. In 1948, a radio station called WEOL began operating in Lorain and the surrounding area. The Journal adopted a policy of denying advertising space to any business that advertised with WEOL. The United States (plaintiff) sued the Journal, alleging that the Journal’s policy of denying advertising space to local businesses was an attempt to destroy WEOL and monopolize the market for local advertising. The district court agreed. The district court found that the Journal knew its advertisers wanted to advertise on WEOL. The Journal also knew that advertising in the Journal was necessary for local businesses. The district court entered an injunction prohibiting the Journal from denying advertising space to WEOL’s advertisers. The Journal appealed.

Rule of Law

Issue

Holding and Reasoning (Burton, J.)

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