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One day in 1936 the Free Press came out as a full-fledged commercial daily, competing with the News in the afternoon, the Times on Sunday. Immediately T.E.P. took most of its advertising out of the News, gave it to the Free Press. A Congressional committee, investigating TVA, later asserted that: 1) T.E.P. lawyer took a $10,000 "fee" from the power company, invested it in the Free Press; 2) T.E.P. paid higher rates for advertising in the Free Press than it had paid the News; 3) the power company granted discounts to the Free Press and the McDonald stores, even after the bills were long overdue.
The Free Press flourished. Publisher McDonald used grocery trucks to distribute his papers. Last year the Free Press, only three years old as a daily, with a circulation of 27,833, had almost overtaken Milton's News.
Meanwhile. Publisher Milton was again in trouble. The News had lost $12,185 in 1937, $44,162 in 1938, rolled up a loss of $39,869 in 1939. By last December, in spite of another reorganization and sale of another $24,000 in stock, the News was $15,000 behind in its payments to Mrs. Milton, its bonds had been in default for nearly six months, entitling the bondholders to take control. Mrs. Milton's attorney, Sam J. McAllester, was secretary of Roy McDonald's grocery chain. One bleak day last December, Lawyer McAllester told Milton that a sale had been arranged for the News and accepted by the bondholders' committee. Purchaser: Roy McDonald.
Publisher Milton, appalled, scurried about town, raised $15,000 (mostly from employes) to meet the defaulted interest. But it was too late. On Dec. 16 Milton ran off his last edition.
"Intrepid Spirit." For the News plant and equipment, its Associated Press franchise and other assets, Grocer McDonald paid $150,000, assumed the burden of its $325,000 bonded debt. Last week George Fort Milton started again from scratch. He had 675 backers, most of them in Chattanooga, a bare $25,000 capital.
Among the Tribune's, stockholders were such New Deal bigwigs as Senator Norris, who put up $100; President George Berry of the Pressmen's Union, who put up $1,000; Francis Biddle, Solicitor General of the U. S.
Publisher Milton got his composing-room machinery from the International Typographical Union, shipped it from an abandoned plant in New York. He bought a secondhand press that once belonged to a paper in Worcester. Mass. For news service he relied on the Chicago Daily News syndicate and Transradio Press.
First issue of the Tribune, subtitled "The People's Paper," ran to 32 pages. Next day it settled down to 16 pages, one afternoon appeared with a scant ten. Inside were plenty of robust comics (Superman, Charlie Chan. Tarzan), such columnists as Eleanor Roosevelt. Raymond Clapper, Hugh Johnson.
On page 1 of his first issue Publisher Milton proudly slapped a. four-column enlargement of a letter: ''I congratulate you upon your determination to continue publication of a newspaper in Chattanooga. This resolution on your part exemplifies . . . courage of the highest order in the face of obstacles which could have crushed a less intrepid spirit. . . . Franklin D. Roosevelt."
* For other news of the Chattanooga Times, see p. 58,