21. Hunt Foods manufactures products in states other than
Illinois and ships the same across state lines to wholesale
grocers in Illinois and other states outside of the state of
manufacturing, including plaintiff wholesalers and other
wholesalers in Chicago and the Metropolitan Area thereof.
Products of Hunt Foods, Inc. are sold and distributed by it in
interstate commerce directly to A & P.
22. Certain of the products sold by A & P in the Chicago
Metropolitan Area including certain products of defendant
suppliers were shipped into the Chicago Unit warehouse of A & P
by the suppliers from points outside the State of Illinois and
thence distributed to A & P stores in said area.
23. All sales to the consumer by retailer plaintiffs and by A
& P stores referred to in the Appendix to the A & P Stipulation
were consummated in the stores of the respective retailer
plaintiffs and said A & P stores. All sales by the two wholesaler
plaintiffs were made to customers located in the Chicago
Metropolitan Area, including Michigan and Indiana.
24. Woman's Day is printed and bound by Woman's Day, Inc.
outside the State of Illinois, and distribution is made by
Woman's Day, Inc. to the various warehouses of A & P.
25. The magazine Woman's Day has been published monthly by
Woman's Day, Inc. in substantially its present form since
October, 1937, and has a monthly circulation of over 3,300,000
26. Woman's Day is of comparable content and quality with the
leading women's magazines such as Good Housekeeping, Ladies' Home
Journal, Woman's Home Companion and McCall's. It has for 14 years
been among the 10 top national magazines in circulation and among
the top 25 magazines in terms of advertising revenue, and has won
national awards for its accomplishments in editorial, art and
27. In reporting on the effectiveness of various magazines as
advertising media, Woman's Day has frequently been compared by
leading independent advertising agencies with the woman's service
magazines like Ladies' Home Journal and Woman's Home Companion
and other magazines such as Better Homes and Gardens, Saturday
Evening Post and Cosmopolitan.
28. Woman's Day is distributed monthly and is sold solely
through A & P retail stores, except in Colorado where the
magazine is sold on newsstands. The magazine is shipped by
Woman's Day, Inc. to A & P warehouses and from there is delivered
by A & P trucks to individual retail stores.
29. Woman's Day is usually displayed in A & P stores at the
30. A & P pays Woman's Day, Inc. five cents per copy for the
magazine, and it is sold in A & P stores for seven cents per
31. The Board of Directors of Woman's Day, Inc. has included
representatives of A & P. However, none of the operating staff or
employees of Woman's Day, Inc. is an officer, director or
employee of any A & P affiliated company.
32. The business of publishing Woman's Day is and has been
conducted by Woman's Day, Inc. as a legitimate publishing
business enterprise. Except for normal parent-subsidiary
relationships and the distribution and promotion of Woman's Day
by A & P, Woman's Day, Inc. has been kept separate from the
grocery retailing business of A & P.
33. The annual cost of producing Woman's Day exceeds nine
million dollars ($9,000,000.00). Less than one-fourth of this
cost is recovered through the sale of copies. The remainder is
received through the sale of advertising space. For example, in
the fiscal year 1956, the gross revenue of Woman's Day, Inc. was
$9,075,729.00 of which $2,170,850.00 or 24 per cent came from
sales of the magazine and $6,904,879.00 or 76 per cent from
advertising revenue. The advertising revenue is divided between
"supplier" and "non-supplier" advertising
"Supplier" advertisers are manufacturers or producers — such as
the defendant suppliers — whose products are sold in A
& P stores. "Non-supplier" advertisers are manufacturers or
producers whose products are not sold in and are not of a type
sold in A & P stores. In 1954, of the total gross advertising
revenue, 73.3 per cent came from supplier advertisers, while 26.7
per cent came from non-supplier advertisers. In 1955, of the
total gross advertising revenue, 65.5 per cent came from the
supplier advertisers while 34.5 per cent came from the
34. No purchasing agent or any other person employed by A & P
has ever discussed with A & P suppliers the latter's advertising
in Woman's Day or has ever intimated that such advertising would
be considered by A & P in determining the extent of its purchases
of their products or the prices it would pay for them.
35. Advertising in Woman's Day by manufacturers of food
products has no effect on the prices paid by A & P for products
purchased by A & P from such advertisers for sale in A & P retail
36. Whether food manufacturers do or do not advertise in
Woman's Day is not considered by A & P in deciding whether or to
what extent to purchase their products.
37. A & P employees engaged in purchasing and selling grocery
products have no contact with Woman's Day advertising space
38. The extent to which A & P promotes or merchandises the
products of its suppliers is not affected by the fact that such
suppliers do or do not advertise in Woman's Day or the extent of
any such advertising.
39. At no time has any merchandising help been given to Morton
by A & P by virtue of the fact that Morton advertises in Woman's
Day or for any other reason, despite repeated efforts by
personnel of Morton's advertising agency to obtain such
40. General Foods and Hunt Foods knew at all times that they
could not get any merchandising support from A & P by reason of
their advertising in Woman's Day.
41. In selling advertising, Woman's Day, Inc. has consistently
stated to the advertiser that the purchase of advertising space
in Woman's Day is completely independent of the buying or selling
activities of any A & P affiliated company.
42. Each advertising rate card issued by Woman's Day, Inc.
since the inception of the magazine has contained substantially
the following sentence:
"It is distinctly understood that the purchase of
advertising space in Woman's Day has no relation,
direct or indirect, to the buying and/or selling
activities of any affiliated company."
43. Woman's Day has always sold its advertising space,
including that sold to defendant suppliers, solely on its merits
as advertising and on no other consideration.
44. Woman's Day, Inc. has consistently refused requests from
grocery product advertisers that Woman's Day, Inc. supply them
with promotional material or assist them in procuring store
promotion and merchandising of their products.
45. Woman's Day, Inc. has extended no merchandising aid to
46. Woman's Day space salesmen have not approached anyone in
the General Foods, Hunt Foods or Morton organizations outside of
the personnel in the advertising department. The presentation of
such representatives of Woman's Day is identical with that made
in the course of their calls upon advertising agencies and does
not include any suggestion or intimation that advertising in
Woman's Day would in any way aid or abet the advertiser with
respect to merchandising his products in A & P stores.
47. Morton at its own expense prepared so-called
"shelf-talkers" to be used in connection with Morton's product
displays in stores. These shelf-talkers stated that the product
is "as advertised in _____ magazine." Woman's Day, Inc., however,
refused permission to Morton thus to report its advertising in
Woman's Day and use such shelf-talkers in A & P stores. However,
permission to use such shelf-talkers was granted by Life, Good
Housekeeping, and the other grocery store magazines.
48. "Woman's Day" is of comparable content and quality with the
leading women's magazines such as "Good Housekeeping," "Ladies'
Home Journal," "Woman's Home Companion" and "McCall's."
49. Woman's Day, Inc. is operated as a legitimate business
enterprise. Its business is that of publishing a magazine to be
sold on its own merits as a magazine.
50. "Woman's Day" is not a device for giving merchandising aid
to A & P suppliers, nor has Woman's Day, Inc. or A & P given any
merchandising aid to defendant suppliers by virtue of their
advertising in "Woman's Day."
51. A & P's purchasing power is not utilized to obtain
advertising for "Woman's Day" from A & P suppliers.
52. The grocery retailing business of A & P and the magazine
publishing business of Woman's Day, Inc. are conducted as
separate business enterprises.
53. All advertising in Woman's Day, including the advertising
of the products of defendant suppliers and of A & P, its
subsidiaries and divisions, is placed through independent
advertising agencies pursuant to contracts between Woman's Day,
Inc. and the advertising agency handling the account of the
54. The advertising agencies that have been used by defendant
suppliers are as follows:
General Foods Young & Rubicam, Inc.
Benton & Bowles, Inc.
Foote, Cone & Belding.
Hunt Foods Young & Rubicam, Inc.
Batten, Barton, Durstine & Os-
Morton Salt Needham, Louis & Brorby, Inc.
J. Walter Thompson Co.
Kenyon & Eckart
Hill Blackett & Co.
55. The advertising by defendant suppliers in Woman's Day is
only a small portion of the carefully planned national
advertising programs for their various products which in general
include other magazines, newspapers, billboards, radio,
television and other media.
56. Advertising programs for the products of defendant
suppliers are periodically prepared by their advertising agencies
based upon studies undertaken by the latter, are considered by
the appropriate company executives and, if approved by them, are
executed by the agencies.
57. Defendant suppliers have placed their advertising in
Woman's Day upon the recommendations of advertising agencies
representing them, which recommendations are often arrived at
after careful consultation between the advertising agency and the
advertiser. These recommendations were based by the agencies
solely upon their evaluation of Woman's Day as an effective
advertising medium for the sale of the products of their
respective clients to the consumer public.
58. The criteria used by the advertising agencies and
executives of defendant suppliers in determining whether or not
Woman's Day is to be included in a media schedule are the same
ones that apply to the selection of any other magazine or medium.
59. In arriving at their advertising media decisions, the
advertisers and the agencies take into consideration studies and
surveys made by themselves and by others. Various factors are
considered, such as circulation, number of readers, type and
location of readers, cost, characteristics of the magazine and
its readers, and comparisons with other advertising media.
60. G.W. Carrington, Advertising Manager of Morton, testified
"The sole factors considered by Morton in
determining the media in which to advertise are as
follows, but not necessarily in the order of
importance: (1) total circulation, (2) cost per
thousand circulation, (3) gross cost, (4)
characteristics of the readers (i.e., sex, age,
education, social status, shopping functions, etc.),
(5) geographical circulation and circulation in terms
of population density (metropolitan areas vs. rural
areas), both as compared with (a) Morton sales, and
(b) total grocery stores sales, and (6) quality of
"Morton considers all store distributed magazines,
including Woman's Day, only in the light of the above
factors. Viewed in this light, Morton has considered
this type of advertising to be very effective
because, in terms of factor (4) above, it reaches (1)
women only, for the most part, and (2) women who do
the grocery shopping for their families.
Consequently, Morton's conclusion has been that there
is virtually no advertising waste in store magazines,
such as probably occurs in the use of general
"Morton has always considered the use of all the
store magazines simply as an integral part of its
entire advertising program."
61. During the period from January 1, 1954, to March 31, 1956,
Hunt Foods advertised Hunt's Tomato Sauce in each monthly issue
of Woman's Day commencing with the October, 1954 issue through
March, 1956 excepting therefrom the December, 1955 issue. It
advertised Hunt's Tomato Catsup in the issues of September,
October, November and December, 1955. It advertised Hunt's Tomato
Paste in Woman's Day in the November and December, 1955 and
January and February issues of 1956. It had no other
advertisements in Woman's Day from January, 1953 to March 31,
1956, inclusive. It did not advertise any of its other products
whether Hunt brand, Snider's brand or other brand in Woman's Day
at any time between January 1, 1953 and March 31, 1956. None of
Hunt Foods' advertisements in Woman's Day mention its Snider's
brand or Pride of the Farm brand or any brand other than Hunt's.
62. The advertisements of General Foods products in Woman's Day
since January 1, 1954 are as follows:
General Foods Products Whether, and Issue When,
Baker's Coconut Products No
Baker's Chocolate, Cocoa
Gaines Dog Foods No
Log Cabin Syrups, Syrup Mixes Mar. 1954
Satina Laundry Products No
Go Laundry Products No
La France Laundry Products No
Birds Eye Meat Pies Feb. 1956
Birds Eye Fish Sticks Mar. 1956
Birds Eye Frozen Foods, Jan., Feb. 1954; Nov.
Vegetables, Fruits 1955; Jan., Feb. 1956.
Birds Eye Juices No
Jack & Jill Cat Food No
Minute-Man Instant Frosting No
D-Zerta Gelatin No
Jell-O Gelatin July, Aug., Sept., Oct.,
Nov. 1955; Feb. and
Jell-O Pudding and Pie Filling Sept., Oct., Nov., Dec.,
Jell-O Instant Pudding No
Jell-O Tapioca Pudding No
Minute Rice Aug., 1955
Minute Mashed Potatoes No
Minute Tapioca No
Swans Down Cake Flour Sept., Oct., Dec., 1955;
Swans Down Cake Mixes Feb., Apr., 1954; May,
Calumet Baking Powder No
Certo Pectins No
Sure-Jell Pectins No
Yuban Coffee No
Kaffee Hag Coffee No
Maxwell House Regular Coffee No
Maxwell House Instant Coffee Jan., Feb., March, 1954
Sanka Coffee No
Sanka Instant Coffee No
Kool-Aid Soft Drink Powder No
Kool Shake Mix No
Good Seasons Dressing Mix No
Post Cornfetti No
Post Toasties Corn Flakes No
Post Bran Flakes No
Post Raisin Bran No
Post Wheat Meal No
Post Grape-Nuts No
Post Grape-Nuts Flakes July, Aug., Oct., Nov.
Post Sugar Crisp June, Sept., 1954
Post Sugar Krinkles No
Post Tens May, Sept., 1954
Postum Jan., Feb., Mar., 1955
Instant Postum Oct., Nov., 1954
63. Morton did not advertise any of its products in Woman's Day
from 1937 through 1940 or from 1943 through 1950.