Newspapers: Setback in Los Angeles

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In a ruling that could well put an end to the acquisition of newspapers in outlying towns by metropolitan dailies, the U.S. Supreme Court last week upheld a lower-court decision that the Times-Mirror Co. of Los Angeles must divest itself of two papers it bought in 1964, the San Bernardino Sun and the Telegram. The company contended that there had been little competition for readers or advertising between its Los Angeles Times and the San Bernardino papers, published 60 miles east of Los Angeles. But in a novel application of the Clayton Antitrust Act, the judge ruled that the purchase discouraged future competition, and would effectively prevent any other newspaper from getting established in the area.

The Times has 25 days in which to petition for a rehearing. If it is turned down, the company then has a year in which to sell its increasingly profitable acquisitions.