The Deal from Hell

by James O'Shea

  In many respects, the Tribune’s plight is unique and far more complex than the dire situation that faces other newspapers and media organizations around the country and world. But in many ways, it also represents the stark reality of the battle facing those interested in the future of the news. Instead of pumping their energy and resources into building a new business model and creating a path to a successful future, newspapers remain institutions distracted by their fight to survive, shackled by declines in revenues, legal problems, new competitors, and, in the case of Tribune Company, diversion of resources into things that have nothing to do with providing the public with news. The company’s professional fees in its bankruptcy case total $240 million and probably will top out at $300 million or more before it emerges from court, enough to run the combined Los Angles Times and Chicago Tribune newsrooms for more than a year.

  When I speak to citizens in Chicago and elsewhere, people ask me: Will we still have newspapers? Of course, we will have newspapers. Newspapers today continue to create great journalism, too. But the great journalism that newspapers and broadcasters still produce often is episodic rather than the systematic examination of significant issues. Let’s not kid ourselves, either. Newspapers and broadcast outlets will find it progressively harder to finance the delivery of high-quality news. We are moving into a world where someone wealthy enough to pay $2 a day and $6 on Sunday for the New York Times or $18,000 to $20,000 per year for a machine from Bloomberg News will get high-quality news, as good as or perhaps better than ever. Gone will be the days when everyone can get the same quality of news delivered to their doorsteps every day for a fraction of what it actually costs. And that is a fundamental change in our society, the implications of which we’ve not yet absorbed. The current practice of delivering news to readers far below its cost and relying on an advertising base that will continue to shrink is simply unsustainable. Someone has to find a new model based on new economics. Until then, newspapers will continue to shrink, become more expensive, have fewer subscribers, and be delivered less frequently, perhaps once or twice a week instead of every day.

  Yet the need for quality journalism has never been greater. The Internet is flooding the world with raw information, demonstrating its awesome power to unleash democratic revolutions that topple dictators and despots. But raw information also incubates rumor, disinformation, and propaganda, which in turn breed chaos and ignorance that divide our world. We don’t know yet what kind of governments will replace the autocratic regimes toppled by the information revolution spreading across the Middle East. The one thing we do know is that, for us to know what will happen, we need to get our information from good, solid reporting, the kind that sifts through rumor, innuendo, and distortion to create fact, context, and reason.

  The real question we face is not whether we will still have newspapers; the real question is, will we still have journalism—not aggregated content gathered to foster ad sales—but hard-hitting, time-consuming investigative and analytical reporting about the major issues of the day?

  I remain here at the CNC because I believe we must have that kind of journalism. So does Ann Marie Lipinski; she is one of the founding members of the CNC board. Good, solid journalism remains vital to Chicago, the nation, and the world. Throughout my career, I have seen a world without dogged reporting. Time and again, I’ve seen the press seized and silenced by soldiers marching in the clouds of dust stirred by the despot’s boot. We cannot allow apathy and indifference to become the soldiers of silence in America. The answer is out there, perhaps in a fledgling operation like the CNC or one of dozens like it springing up across the land, or perhaps in the head of some entrepreneur. An audience for serious news is out there. It is smaller, more discerning, and willing to pay if the information is good and the reporting is solid. It is out there and when someone finds it, it will be one hell of a story. I know. After all, I’m still a reporter, I can feel that story—in my gut.

  ACKNOWLEDGMENTS

  SO MANY PEOPLE helped with this book that it’s hard to express my gratitude without inadvertently missing someone. So I apologize in advance if I failed to recognize anyone, and, if I did, it was an error of omission and not an intended slight. Several authors have written excellent books on the companies I covered in this book and the newspaper industry, including Richard Norton Smith, the late David Halberstam, Dennis McDougal, Charles M. Madigan, and the late A.J. Liebling. I borrowed material and insights from them and tried hard to appropriately recognize their fine work in the text and in notes. I am deeply indebted to Alex Jones and the Joan Shorenstein Center on the Press, Politics and Public Policy at Harvard University. Jones and the incredible staff at the Shorenstein Center threw me a lifeline when I needed one and provided the resources and encouragement to get this book off the ground. Special thanks should also go to my daughter, Bridget O’Shea, a dogged and determined researcher. This book never would have been completed without the help of Sharene Shariatzadeh of the Chicago News Cooperative, where I work. She calls herself my “handler” but in reality she was a crutch I leaned on time and again during a long journey. I owe everyone at the coop a debt of gratitude for the understanding they displayed when I was distracted by this project. The folks at PublicAffairs embraced my book and me with enthusiasm, particularly Peter Osnos, Susan Weinberg, and Morgen Van Vorst, an excellent editor with a sharp eye for a narrative. There are many people with whom I worked in the newspaper business who took the time to talk to me about their role in the saga, but I owe a special debt to my colleagues Ann Marie Lipinski, Bill Parker, and Leo Wolinsky. Because so much had been written about the Times before the Tribune acquired the paper, I decided to write the early chapters largely through the eyes of people who worked there, particularly Wolinsky, who shared with me the story of his incredible career at the paper. My agent, Larry Weissman, was a voice of enthusiasm and confidence. He helped me frame the story in its incarnation. Thanks, also, to Howard Bragman, who originally encouraged me to write the book. And, of course, my wife, Nancy, as always displayed incredible patience with me, the mess I made in the spare room and the hours I kept. And thanks so much to all of the journalists who made the Des Moines Register, the Chicago Tribune, and the Los Angeles Times such special places to work and grow.

  NOTES

  Introduction: The Merger

  1 In April 1999, John Madigan Author’s interview with John Madigan, Chicago, IL, winter 2008. The author interviewed Madigan after he had left the Tribune Company.

  1 hadn’t flown to San Diego merely “Aggressive plans unveiled as NAA publishers meet,” by David Noack and Joe Nicholson, Editor & Publisher, May 1, 1999. The author got details of the meeting from this story and interviews with John Madigan, Chicago, IL, 2008; and Mark Willes, Salt Lake City, UT, 2010. In addition, he looked up weather reports to get details for the time of the meeting.

  2 He drove earnings into the stratosphere 2003 Annual Report, Tribune Company, February 2004. The earnings data and computation of the stock value came from data in the company’s annual report announcing Madigan’s retirement.

  2 he had challenged David Hiller Author’s interviews with John Madigan, Chicago, IL, 2008; and David Hiller, Chicago, IL, winter 2008, and winter 2010.

  3 Sitting upstairs in his room Author’s interview with Mark Willes, Salt Lake City, UT, 2010. Willes’ interview with the author was the first time that he discussed his experience as the chairman of Times Mirror since he left the job in 2000.

  3 At thirty-five, he’d been named “Mark Willes, Ahead of the Times,” by Edward L. Carter, Marriott Alumni Magazine, Brigham Young University, Summer 2001. Willes taught at Brigham Young, and the alumni magazine did a feature story on him.

  3 In 1998, advertisers had pumped “Aggressive plans unveiled as NAA publishers meet,” by David Noack and Joe Nicholson, Editor & Publisher, May 1, 1999. The discussion of ad revenues and the quotes from the NAA meeting came from this report.

  4 in the New Century Network “New Centu
ry Network Announced,” Press Release, April 1995. The author discussed the New Century Network with David Hiller during interviews in Chicago, IL, winter 2008, and winter 2010; and Charles Brumback during interviews in Sarasota, FL, May 2010, and by telephone, 2008–2010.

  5 Craig Newmark, an ex-computer Numerous news reports document that Newmark started craigslist as a site for his friends, and that after it became popular, he decided to organize it into a business.

  5 Using banks of computers, Sergey Brin and Larry Page Googled, by Ken Auletta (New York: Penguin Press, 2009). Auletta’s book is an excellent source of information on Google. The author also examined several articles about the early days of the start-up.

  5 Matt Drudge rooted through “Hot links served up daily,” by Joel Sappell, Los Angeles Times, August 4, 2007.

  6 boasting a combined daily circulation “New Century Network Announced,” Press Release, April 1995. The author discussed the New Century Network with David Hiller during interviews in Chicago, IL, winter 2008, and winter 2010; and Charles Brumback during interviews in Sarasota, FL, May 2010, and by telephone, 2008–2010. The author also interviewed James Cutie, a New York Times executive who was involved in the effort, by phone in February 2011 and Harry Chandler, a member of the Chandler family who was a member of the NCN board.

  6 For the design of the famous Tribune Tower, Tribune Company Proxy Statement /Prospectus, May 5, 2000. The terms of the deal were announced in the document required of all public companies engaged in a merger by the Securities and Exchange Commission.

  7 The paper had won two Pulitzer Prizes The Pulitzer Prizes, www.pulitzer.org. References to Pulitzer Prizes appear on the Pulitzer website.

  7 America Online, which injected $1.2 billion Author’s interviews with Charles Brumback, Sarasota, FL, May 2010; and Scott C. Smith, Chicago, IL, December 2010. Scott Smith brought the AOL investment proposition to the Chicago Tribune. Smith told the author he originally proposed that the Tribune invest $5 million in AOL. He thought about recommending that they double the initial investment to $10 million but backed off at the end.

  7 the Los Angeles Times had become widely respected, Privileged Son: Otis Chandler and the Rise and Fall of the L.A. Times Dynasty, by Dennis McDougal (Cambridge: Perseus Publishing, 2001). The author relied heavily on MacDougal’s book for the history of the Los Angeles Times and the Chandler family. MacDougal’s book is an excellent, authoritative study of the family behind the Times. The narrative of Privileged Son ends as Tribune acquired Times Mirror.

  8 In its day, the Times’ blatantly Republican The Powers That Be, by David Halberstam (New York: Knopf, 1975).

  8 Though he didn’t spell it out to Willes Author’s interview with John Madigan, Chicago, IL, winter 2008; and author’s interview with Mark Willes, Salt Lake City, UT, 2010. In their respective interviews, both Madigan and Willes confirmed the details of their initial meeting and subsequent developments. As the author notes in the text, they disagreed on some details.

  10 When editors at other American papers Author’s telephone interview with Eugene Roberts, former editor of the Philadelphia Inquirer and managing editor of the New York Times, summer 2009. The author also personally heard complaints about the industry’s use of the Chicago Tribune as a financial yardstick during his career at the paper.

  Chapter 1: Beginnings: Des Moines

  15 Gene Raffensperger swung around Author’s telephone interview with Gene Raffensperger, March 2009. The author relied on his memory of the encounter but had details corroborated by Raffensperger.

  18 A statewide paper, the Register Covering Iowa: The History of the Des Moines Register and Tribune Company, 1849–1985, by William B. Friedricks (Ames: Iowa State University Press, 2000). The sign with the Register’s promotion was present when the author joined the staff in 1971.

  19 By far, the most memorable character Author relied on his memory for some details on Jimmy Larson as well as “Longtime Register news editor dies,” by Ken Fuson, Des Moines Register, October 20, 2006.

  19 nearly 80 percent of Americans reported that “Advancing Newspaper Media for the 21st Century,” Newspaper Association of America, 2009. The author relied on data prepared by the NAA business analysis and research department, W.R. Simmons and Associates Research, Inc., and the A.C. Nielsen Company, for newspaper readership data.

  21 The Register was one of the last papers “Cowles Family Publishing Legacy,” by Herb Strentz. The papers, letters, and photos of the Cowles family are available for viewing at Drake University Cowles Library. The author relied on these papers for much of the history of the family in Iowa.

  23 They were people like Nick Kotz, whose exposé of Details on Kotz, Mollenhoff, and others came from author’s discussions over many years with numerous Des Moines Register reporters, including George Anthan.

  24 Jon Van, an Iowa native, who routinely Author’s interview with Jon Van, Chicago, IL, spring 2009. Van came into the newsroom every Saturday morning for years, took the phone, and followed up on leads provided by the state editor of the Register.

  25 Kruidenier beefed up the business operations “Cowles Family Publishing Legacy,” Drake University Cowles Library. David Kruidenier,Jr., was a grandson of Gardner Cowles, Sr.

  Chapter 2: Across the Street

  28 When, in 1931, Roy Howard of the Scripps Howard chain The Press, by A. J. Liebling (New York: Ballantine Books, 1964). Liebling was the New Yorker’s press critic in the 1960s and wrote extensively on the Tribune and The Colonel.

  29 and publisher Stan Cook and editor Clayton Kirkpatrick Author’s interview with Stanton R. Cook, Kenilworth, IL, fall 2009. Also, Oral History, by Robert Wiedrich, McCormick Foundation, December 1996. In the interview, Cook also disclosed, for the first time, details of the Chicago Tribune’s infamous decision to publish an editorial calling for the resignation of Richard M. Nixon.

  30 Jimmy Breslin, the iconic, hard-drinking “A ‘Tabloid Guy’ Calls It a Night After 41 Years with Murdoch,” by Tim Arango, New York Times, September 29, 2008.

  31 George de Lama, one of the paper’s first Author’s telephone interview with George de Lama, summer 2009. In fact, the metro editor was not taken to the 18th District Police Station, or arrested. Toolen was taken to Northwestern Memorial Hospital.

  35 Douglas Frantz recalled the ubiquitous Conversation with Douglas Frantz. The author worked with Frantz at the Chicago Tribune and the Los Angeles Times. Frantz described the incident to the author when discussing the nature of Chicago.

  36 what Joseph Medill, the paper’s patriarch, The Colonel, The Life and Legend of Robert R. McCormick, by Richard Norton Smith (New York: Houghton Mifflin Company, 1997). The author relied on Smith’s excellent biography for much of the Medill and McCormick history in the book. Some of the material on the Colonel came from the personal recollections of Kirkpatrick and others.

  37 In his will, he stipulated that Comments of R. Bruce Dold, the current editorial page editor of the Chicago Tribune. Dold has repeated the story of Medill’s will and the endorsement process in numerous places.

  39 The Midwest was America The author relied on several passages in both Liebling’s and Smith’s books for the headlines and characterizations of the Colonel’s political and cultural views and his linguistic preferences.

  40 Every Saturday evening at 9 p.m. The Press, by A. J. Liebling (New York: Ballentine Books, 1964). The Colonel provided great material for Liebling’s tongue-in-cheek humor.

  Chapter 3: Otis Chandler’s Legacy

  43 Bleakwood Avenue runs through, Author’s interview with Leo Wolinsky, Los Angeles, CA, fall 2010; and by telephone, 2008–2010. The author interviewed Wolinsky several times over the course of researching and writing this book. In embarking on his research, the author knew that much had been written about the history of the LA Times but not much from someone who had actually worked at the paper for many years. The author decided to rely heavily on Wolinsky’s history to provide a picture of the paper through the eyes
of a credible, loyal employee.

  44 In the 1950s, S.J. Perelman Privileged Son: Otis Chandler and the Rise and Fall of the L.A. Times Dynasty, by Dennis McDougal (Cambridge: Perseus Publishing, 2001). The author relied on McDougal’s impressive book on the Chandler family and the LA Times for much of the history in this chapter. Some of the material was supplemented by personal recollections from his time as editor of the newspaper. The author also relied on “The Chandler Mystery,” by David Margolick, Vanity Fair, September 1996, for some details of Otis Chandler’s life and career.