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Antitrust Keyed to Morgan, 7th Ed.
Albrecht v. Herald Co.
Citation:
390 U.S. 145 (1968)Facts
The Herald Company published the Globe-Democrat, a morning newspaper distributed in the St. Louis metropolitan area by 172 independent carriers who purchased papers at wholesale and sold them at retail. Each carrier had an exclusive territory subject to termination if prices exceeded the suggested maximum advertised by Herald. Albrecht, who had Route 99, initially adhered to the advertised price but in 1961 raised his price by 10 cents per month. After objecting to this practice, Herald informed Albrecht’s customers by letter that it would deliver papers directly at the lower price. Herald hired Milne Circulation Sales to solicit Albrecht’s customers, resulting in about 300 of his 1,200 customers switching to direct delivery. Herald then transferred these customers to another carrier, George Kroner, who understood he might have to return them if Albrecht lowered his price. Herald eventually told Albrecht he could have his customers back if he charged the suggested price. After Albrecht filed his lawsuit, Herald terminated his appointment and gave him 60 days to sell his route. Albrecht sold for $12,000, which was $1,000 more than he paid but less than he could have received with all 1,200 customers.
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