The Hearst Corp. and rival Chronicle Publishing Co. quietly discusse d several plans to avoid economically competing against each other, including one in which Hearst would shut its San Francisco Examiner in exchange for a share of the San Francisco Chronicle's profits "in perpetuity," a Chronicle executive has testified.
John B. Sias, president and chief executive officer of Chronicle Publishing, also testified Tuesday that consultants had said The Examiner could compete independently against the Chronicle. But Sias said he doubted the studies.
Sias was cross-examined during the second day of trial on developer and former mayoral candidate Clint Reilly's antitrust suit to block Hearst's $660 million purchase of the Chronicle.
Joseph M. Alioto, Reilly's attorney, said Tuesday he would seek an emergency restraining order barring Hearst from taking adverse action against any employee for testifying in the case.
Alioto cited Hearst's decision Tuesday to place Examiner publisher Timothy O. White on indefinite leave after White's testimony Monday that he had offered Mayor Willie Brown favorable editorials in return for Brown's support of Hearst's purchase of the Chroni
cle.
Alioto contended Hearst executives had known the substance of White's testimony for months, because White gave similar sworn statements to the U.S. Department of Justice, which was reviewing the proposed purchase.
"It's absurd that Hearst took this kind of action against White for saying something true that they knew about," Alioto said. "That puts a chilling effect on anyone else we might call to testify from Hearst or the Chronicle."
Asked earlier Tuesday whether White's comments on the stand were a surprise to Hearst Corp. official ...