Advertisers from another shopping center commented: "The whole shopping center is getting free trial ads in all the three Days (Arlington Day, Prospect Day and Market Day)."

A large discount house that had been placing its advertising with us were offered and reported to us that it received its advertising free in the Day papers and free color besides.

One may argue that this is all a part of "fair competition". If you want the business, you have to make deals. These are deals we cannot afford to make.

I would like to call your attention to two newspapers in our area that had been published for three years until last November. One was the Arlington News and the other was the Mount Prospect News, both owned by the same publisher.

When I called him the other day and asked why he discontinued, he said he threw in the sponge because, "What is the use of trying to buck Field Enterprises?"

We feel that as long as we can keep the confidence and bring the results to our advertisers as we have in the past, we are going to compete in the market place of the northwest suburbs.

We have a unique situation in Chicago unlike any other anywhere in the country. We are competing against local daily newspapers, published and subsidized by a large metropolitan newspaper organization. We are in a position to know what happens when such a situation exists. We know what a suburban newspaper has to do when it comes to grips with a competitor of such magnitude and resources. We are perfectly willing to do it, whether it costs us our business or not, because this is the only business we know. We have accepted the challenge and we are very proud to say that we have done a far better job editorially than they are doing. They have not exhibited the knowledge or understanding of suburban journalism and in my book they don't seem to care. They spend most of their time selling advertising and reaching out for circulation.

With their ability and their gimmicks I am sure that circulation may some day become a serious problem with us. But, we are not afraid to face the problem. But, if S. 1312 were to remove the restraints to unfair competition, then the small, independent publishers, like Paddock Publications, will in time merit only a mention by the local historical society.

In conclusion I would make an urgent plea for the preservation of the competitive forces in the open market place. S. 1312 eliminates all protection as it now exists for smaller, independent publishers such as Paddock Publications. It leaves us at the mercy of big newspapers no longer restrained by antitrust laws prohibiting pricing agreements, below-cost operations, and other predatory practices and combinations designed to kill or thwart competition.

In my judgment and in the judgment of other publishers around Chicago, there is no doubt in our minds that Day Publications is operated at a considerable loss. If S. 1312 is defeated, then the future of our newspapers, and that of thousands of other independent newspapers, will be decided, as it should be, by those who read our output, and their decision will be based on the quality of our product and the integrity of our public service.

No one yet knows the configuration of the newspaper of tomorrow. It is certain to be a new and different kind of news medium, one which we may not recognize in terms of our newspapers today. The changing patterns in marketing and retailing, technology, new printing methods, changing concepts of content and service, different techniques of distribution, will combine to create an all-new kind of newspaper adapted to new habits, new needs, and new demands.

We are excited by the prospects ahead. We are eager to tackle the new opportunities for extending the stature of our service and the scope of our news coverage. Already we are formulating plans for new development and change which will be implemented in the months and years ahead.

But if the competitive forces of the open market place are permitted to mold the shape of our newspaper for tomorrow, I know it will be a handsome, virile one. Regardless of new approaches in content, design, format or frequency of publication, however, one fundamental principle will remain the same as it has for nearly a century: our basic editorial concept. This was perhaps best expressed by my father, now editor emeritus:

"Too often, we think of causes and crusades and campaigns in terms of shortlived efforts when actually our concern should be over the long-haul. Solid, routine reporting is not very dramatic and it may not win a lot of prizes. But it will establish a reputation for the newspaper in its community so that when the time

comes to marshall public support behind a worthy cause, the newspaper's opinion will mean something to the readers who have come to place their trust and judgment in that newspaper. The greatest community service a newspaper can perform is this grass roots job of comprehensive reporting. And keeping the public informed, alerted, and up-to-date is the worthiest cause of all."

I am submitting for comparison copies of the Arlington Day and our Arlington Heights Herald of last Friday's date, February 23. The Day contains 12 pages; our paper contains 52 pages. The Day ran 70 pages for the week, Monday through Friday, while the Arlington Heights Herald ran a total of 132.

We both have about the same number of employees in the office departments: display advertising, classified advertising, circulation and editorial. Sixty percent of this group are in our editorial department. Our emphasis has always been in the news coverage of our communities. Day Publications, on the other hand, employs only one-third of this group in their editorial department; two-thirds are employed in the sales categories of display, classified and circulation.

In spite of the differences in direction of effort expended, statistics compiled for the past representative week reveal that we ran more than fifty percent more display advertisements and twice as many classified advertisements. This comparison covers the number of advertisements appearing in the Arlington Day and Market Day versus our Arlington Heights Herald and Suburbanite. The Suburbanite is our shopper comparable to their Market Day.

Mr. DONOHUE. We will now hear from one of our revered and respected colleagues from the State of Illinois, the city of Chicago, Representative Barratt O'Hara.

TESTIMONY OF HON. BARRATT O'HARA, A REPRESENTATIVE IN CONGRESS FROM THE STATE OF ILLINOIS

Mr. O'HARA. Mr. Chairman, Mr. Murphy and Mr. Kluczynski and I are here with Bruce Sagan. Bruce Sagan is the publisher of newspapers in Chicago that cover Mr. Murphy's district, Mr. Kluczynski's district, and my district.

We are very proud of Bruce Sagan, and we would remain to listen to his testimony, but we have our own committee meetings to attend, and we don't wish our absence misconstrued. Our heart will be here, with Bruce Sagan, but we have to leave.

Thank you.

Mr. DONOHUE. Thank you very much, Congressman.

We will now hear from another one of our able colleagues, Representative Roman Pucinski.

TESTIMONY OF HON. ROMAN C. PUCINSKI, A REPRESENTATIVE IN CONGRESS FROM THE STATE OF ILLINOIS

Mr. PUCINSKI. Mr. Chairman, I would like to introduce Mr. Louis Lerner. I believe he is the next witness. Is that correct?

Mr. DONOHUE. Yes.

Mr. PUCINSKI. Mr. Chairman, I have the privilege this morning of introducing Mr. Louis A. Lerner, the executive vice president and general manager of the Lerner-Home Newspapers, which is the largest weekly group of newspapers in America.

Mr. Lerner comes here today as one who has inherited the responsibility of publishing this very important chain of newspapers from one of the giants of American journalism, Leo A. Lerner, who died a few years ago, and who founded this chain, and I am pleased to tell you that Mr. Lerner and his brother and his family have maintained

the highest traditions laid down for American journalism by Leo Lerner.

He brings to you a very important message, and I hope the committee is going to head the very sober caution that he raises as to how this legislation would affect these community newspapers.

There isn't any question in my mind, and I am sure there isn't any question in your mind, that these weekly newspapers do serve a most significant and important purpose in this country.

I hope that the statement made by Mr. Lerner is going to be able to show you the tremendous difficulties that these weekly newspapers would encounter with the increased competition so it does give me great pleasure to introduce to you Mr. Louis A. Lerner, who speaks here today for the chain representing some 41 papers.

Mr. McCLORY. Mr. Chairman, may I just interrupt

Mr. DONOHUE. Mr. McClory.

Mr. McCLORY. To say I appreciate this introduction, and also to add that we are proud that Mr. Lerner and his chain are now publishing newspapers in the 12th District of Illinois, a recent innovation. I want to join in welcoming him at this point before the committee.

TESTIMONY OF LOUIS A. LERNER, EXECUTIVE VICE PRESIDENT, LERNER-HOME NEWSPAPERS, CHICAGO, ILL.

Mr. LERNER. Mr. Chairman, I believe there is another Congressman, Congressman McCloskey, who would like to get back to work, by introducing Mr. Cook, who is also a member of this committee.

I have printed testimony, but I think I will pass a good part of it. Mr. DONOHUE. Have you distributed it among the committee members?

Mr. LERNER. Yes, sir.

Mr. Chairman and Mr. McClory, I have this printed testimony which I think I will just put aside and go over just a few basic points. Mr. DONOHUE. Might I interrupt you for a moment?

The Chair has before it a letter from one of our distinguished colleagues, Congressman Daniel Rostenkowski, and if there is no objection it will be made part of the record.

(The letter referred to follows:)

Hon. EMANUEL CELLER,

Chairman, House Judiciary Committee,
Washington, D.C.

HOUSE OF REPRESENTATIVES, Washington, D.C., September 24, 1968.

DEAR MR. CHAIRMAN: Because of a speaking engagement it is necessary for me to return to Chicago, however, I am returning to Washington Thursday morning, September 26th, for the purpose of appearing before your Subcommittee on Anti-Trust Matters to introduce Messrs. Leo Lerner and Bruce Sagan of Lerner publications in Chicago, who will testify on H.R. 19123, the Newspaper Preservation Bill.

In the event that air traffic congestion delays my arrival in Washington, it would be greatly appreciated if you would so indicate to the committee, before Mr. Lerner and Mr. Sagan testify. Your cooperation in this matter will be most helpful.

Sincerely,

DAN ROSTENKOWSKI,
Member of Congress.

Mr. DONOHUE. Proceed, Mr. Lerner.

Mr. COHEN. Mr. Chairman, Congressman McCloskey would like to introduce Mr. Nowels from California. He does have other business, if he could be recognized for a moment.

Mr. DONOHUE. The Congressman is recognized.

TESTIMONY OF HON. PAUL MCCLOSKEY, A REPRESENTATIVE IN CONGRESS FROM THE STATE OF CALIFORNIA

Mr. MCCLOSKEY. If I may have that privilege, Mr. Chairman, I have duties on the floor at noon today, assisting the minority leader. Mr. DONOHUE. Would you use the microphone, please?

Mr. MCCLOSKEY. It is my privilege, Mr. Chairman, to introduce the publisher of four newspapers in my home district, Mr. Richard Nowels, who was born into the newspaper business. His father had been the publisher of a paper in Colorado Springs for some 30 years.

Mr. Nowels publishes four papers in San Mateo County, the San Francisco Peninsula, and prints some 20 additional small newspapers. In our area, we have recently had the merger of the San Francisco Chronicle and Examiner. Mr. Nowels will discuss the resulting effects of that merger on the smaller newspapers in the area served by those two metropolitan newspapers. It is my privilege to introduce him. I thank you.

Mr. DONOHUE. Thank you, Congressman McCloskey.

Now, Mr. Lerner, if you will proceed.

Mr. LERNER. Very good, Mr. Chairman. Thank you.

I would like to take my entire printed statement, please, and have it put in the record at this point.

Mr. DONOHUE. Without objection, that will be done.

(Mr. Lerner's prepared statement appears at p. 309.)

Mr. LERNER. I am the executive vice president and general manager of 41 community and suburban papers in the Chicago area. These newspapers are, according to a new book by a Southern Illinois University professor, the largest single group of urban and community newspapers in the United States.

Our papers cover an area population of more than a million. The total circulation of our group is 325,000, which is a lot of newspapers. We try to serve the interests of the local community in which the newspaper is published. We think that we have to try to lead the community, and we try to do this through the confidence of the neighborhood and through our rather complicated and interrelated system of different papers for different communities.

For example, we have one community which is ethnically Greek and German. We have another community which is also within the city of Chicago which is a mixture of Jewish and Irish. We have another community which is middle-class Polish, for example, and we come out with different newspapers for different communities and, of course, the type of news on the whole that goes in them is substantially different, because people's interests are not the same.

However, our editorial direction, and what we believe in, we believe in in all of our 41 papers. We don't have such as some of the large daily chains, one editorial policy in the North and another editorial policy in the South.

One of the main points that I want to make is that those who are cosponsoring this bill think that there is only one medium in any city worth talking about, worth bothering about, only one medium that has to be saved-the daily newspaper.

Now, I just don't necessarily think that is true. It is just utter nonsense that the daily newspaper is the only medium that matters. There are many different media, I think, with tremendous importance.

For example, you have radio; you have television; you have the weekly newspaper; the suburban paper; the shopping guide, and every one of these has something specific to offer in terms of communication. I don't think it can be said that the daily paper is the only one that needs special legislation.

The daily newspaper, as an institution, itself-and many critics, of course, have said this-is hidebound in tradition, and I think it is moribund in its thinking. As a mater of fact, even the spokesman for the American Newspaper Publishers Association has warned that there may not be a daily newspaper as we know it 30 years from now. But whose fault is this? I don't think at all that this industry needs separate legislation to protect itself from itself, and I think the circulation figures would be in order here, and these are all good news

papers.

For example, in 1961 the Chicago Daily News had a circulation of 515,000. According to the Editor and Publisher Yearbook, in 1967 they had a circulation of 462,000. That is a drop of 50,000 papers. In 1961 the Chicago Tribune had a circulation of 854,000. In 1967 it had a circulation of 805,000.

many,

The Milwaukee Journal, for example, had a circulation in 1961 of 372,000, and last year they were just about even, 368,000 papers. Now they have stayed even, or they have dropped. This is true in many urban areas, even though the overall metropolitan area has increased tremendously, and I don't think that they should be saved from these problems by the enactment of this bill. I think that it is a much deeper problem.

Mr. McCLORY. Mr. Chairman, may I interrupt just a moment?

The Assistant Attorney General, Edwin M. Zimmerman, yesterday gave testimony before the committee with regard to daily newspaper circulation. He said that the circulation had increased between 1946 and at the present time from 51 million to 61 million, a 10-million increase. He was indicating that actually, the daily newspapers were not in bad shape, because they had more circulation now than ever.

Mr. LERNER. Well, I think it all depends on the area. If you are talking about the urban areas, I think another point here is whether we are talking about the urban areas, and our particular interest is in the urban area and the suburban areas.

Mr. McCLORY. This is just daily newspapers.

Mr. LERNER. Yes; but remember, of course, that is nationwide, and in that, you have not only the people who are growing tremendously, as in Florida and California, but also people who are dropping.

Mr. McCLORY. I see; so that he would be including dailies, for example, from Wichita, the Wichita Sentinel, in my district, and you are not referring to dailies in communities of that size.

Mr. LERNER. No; in this area, I am referring to the daily papers, but the point I am making is different. The gentleman from the De