The Deal from Hell

by James O'Shea

  44 institution that dominated the California Republican party The Powers That Be, by David Halberstam (New York: Knopf, 1975). The author also relied on Halberstam’s book for history of the Chandlers, particularly the sections on the family’s political leanings and for his reporting on Kyle Palmer, the political reporter and operative at the LA Times.

  45 But Frank Merriam, the Republican candidate favored The Campaign of the Century Upton Sinclair’s E.P.I.C. Race for Governor of California and the Birth of Media Politics, by Greg Mitchell (New York: Random House, 1992).

  47 “What is happening to us,” the editorial asked “Peril to Conservatives,” signed editorial, Otis Chandler, Los Angeles Times, Sunday, March 12, 1961.

  47 “Otis is Zeus.” “The State of the American Newspaper: Down and Out in LA,” by William Prochnau, American Journalism Review, January/February 2000.

  48 The Los Angeles Times circulates in an area The author learned of details of the Los Angeles Times as editor of the newspaper from November 2006 to January 2008.

  49 “The way it was supposed to work,” recalls Pete King Author’s phone interview of Peter King, summer 2010. King also wrote an excellent in-depth newspaper article about the Los Angeles Times’ role in the civic affairs of Los Angeles for the newspaper’s 125th Anniversary.

  49 about “knocking the New York Times off its perch.” The motive that King contradicted reportedly came from Otis Chandler on becoming publisher of the LA Times.

  50 Nowhere was the ability of the Los Angeles Times How Far Can a Piano Fly? And Other Tales From Column One in the Los Angeles Times, An anthology of Column One stories with a forward by Patt Morrison (Los Angeles: Los Angeles Times Books, 2003). The anthology showcases some of the best writing in a newspaper by some of the Times’ most gifted writers.

  50 At the top of the front page on March 12, 1961 Los Angeles Times, March 21, 1961.

  Chapter 4: Twilight

  55 For the U.S. newspaper industry, “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.

  56 as if they’d been tossed into a blender Jack Fuller, who succeeded Squires as editor, first compared the newsroom under the Tennessee native to being thrown into a blender.

  57 Between 1970 and 1985, the number of women U.S. Bureau of Labor Statistics. The data on the composition of the workforce came from U.S. government reports by the U.S. Department of Labor.

  57 In 1971, America had 1,425 evening newspapers “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.

  58 For much of the 1960s and 1970s Post Broadcast Democracy, by Markus Prior (New York: Cambridge University Press, 2007). Prior’s book is an excellent source of material and analysis of the impact of cable TV on the nation’s political activity. The author relied on Prior’s analysis.

  59 Between 1960 and 1984, cable subscribers Cable Statistics, 2009 Edition, National Cable and Telecommunications Association.

  59 For one thing, growth in Sunday “Advancing Newspaper Media for the 21st Century,” Newspaper Association of America, 2009. The author relied upon 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.

  60 Nowhere was this more evident than with Prescott Low The Collapse of the Great American Newspaper, by Charles M. Madigan (Chicago: Ivan R. Dee, 2007). In his book, Madigan first reported on Low and unearthed a paper on the role of estate taxes on the decision to sell newspapers. The author also read the original paper and visited the Patriot Ledger offices in Quincy.

  61 Miller became the forerunner of what Confessions of an S.O.B., by Allen H. Neuharth (New York: Doubleday, 1989). The source for much of the material about Gannett, including the description of Neuharth by his second wife, came from Neuharth’s entertaining autobiography. The author also relied on Read All About It, by James D. Squires (New York: Times Books, 1993).

  61 Gannett embarked on a trail blazed by Taking Stock Journalism and the Publicly-Traded Newspaper Company, by Gilbert Cranberg, Randall Bezanson, and John Soloski (Ames: Iowa State University Press, 2001). This academic study is one of the few that ever looked at the implications of publicly held companies for journalism. Cranberg and his team interviewed many of Wall Street’s top newspaper stock analysts and the quote cited came from an anonymous source in Cranberg’s book.

  63 referring to their editorial departments as “Upstairs and Down,” by James Schermerhorn, Editor & Publisher, August 1909.

  63 To protect editorial departments from “Tearing Down the ‘Wall’ in American Journalism,” by Rodney D. Benson, International Journal of the Humanities, Paris, 2004. The author relied on the piece by Benson, a New York University professor, for background on the “wall.”

  64 Hutchins Commission on the Freedom of the Press Committee on the Freedom of the Press, 1947. The Hutchins Commission was chaired by Robert Hutchins, then president of the University of Chicago. It was formed in the midst of World War II by Henry Luce, publisher of Time and Life magazines, to inquire into the proper functions of the press in modern democracies. After studying the issue for four years, the commission issued its report that became a pivotal assertion of the media’s role in a democratic society.

  64 Stan Cook, the chief executive officer Author’s interview with Stanton R. Cook. Kenilworth, IL, fall 2009. The author interviewed Cook in his home. Cook discussed the change in language policy during the interview, but the actual quote cited came from Kirkpatrick’s message to readers in the Chicago Tribune.

  66 with analysts and institutional investors who Taking Stock Journalism and the Publicly-Traded Newspaper Company, by Gilbert Cranberg, Randall Bezanson, and John Soloski (Ames: Iowa State University Press, 2001). This academic study is one of the few that ever looked at the implications of publicly held companies for journalism. The author interviewed many of Wall Street’s top newspaper stock analysts but the quote cited from the book was anonymous.

  Chapter 5: The New Order

  69 Charlie Brumback beamed with pride Author’s interview with José Moré, a Chicago Tribune photographer who attended the ceremony, Chicago, IL, winter 2010; and author’s telephone interview with Robert Blau, a Tribune editor who also witnessed the spectacle in the newsroom, fall 2008. The cost of the project was confirmed by Al Gramzinski, a former Tribune Company building manager who supervised the construction of the stairway.

  70 In Florida, he had earned a reputation for Author’s interviews of Charles T. Brumback and Oral History of Brumback, by Robert Wiedrich, McCormick Foundation, 2000 and 2001. The author interviewed Brumback on several occasions, both by telephone from Chicago in 2008–2010 and at his home in Sarasota, FL, in May 2010. Much of the background and history of Brumback came from those sessions.

  70 Although he had graduated from Oral History of Brumback by Robert Wiedrich, McCormick Foundation, 2000 and 2001.

  71 Brumback had received a powerful lesson Oral History of Brumback by Robert Wiedrich, McCormick Foundation, 2000 and 2001.

  75 Squires understood how to play the game Read All About It, by James D. Squires (New York: Times Books, 1993). Squires book contains a detailed account of his years with Brumback. The author also interviewed Squires by telephone, winter 2010.

  75 During the four years Brumback and Squires Read All About It, by James D. Squires (New York: Times Books, 1993); and Oral History of Brumback, by Robert Wiedrich, McCormick Foundation, 2000 and 2001.

  76 When, in 1981, he named Brumback CEO Author’s interview with Stanton R. Cook, Kenilworth, IL, fall 2009.

  78 “He
thought big,” remembered Lisa Anderson Author’s telephone interview with Lisa Anderson, winter 2011.

  79 “I [became] a smoke and mirrors magician,” Read All About It, by James D. Squires (New York: Times Books, 1993). In his book, Squires is quite candid about his bargain with Brumback and the implications for the newsroom he led.

  82 Squires didn’t help himself with his Author’s telephone interview with James D. Squires, winter 2010. Squires also provided the author with a copy of the “Project Prosperity” report. His comments regarding his relationship with Madigan and his reaction to Brumback’s comment came from this interview.

  Chapter 6: The Cereal Killer

  85 Leo Wolinsky stepped out Author’s interview with Leo Wolinsky, Los Angeles, CA, fall 2010; and by telephone, 2008–2010.

  86 the Chandler family had brought Author’s interview with Mark Willes, Salt Lake City, UT, 2010.

  87 They were, in Otis’ words, a “pain in the ass.” Privileged Son: Otis Chandler and the Rise and Fall of the L.A. Times Dynasty, by Dennis McDougal (Cambridge: Perseus Publishing, 2001).

  89 Under Coffey’s tenure, the Times Author’s interview with Leo Wolinsky, Los Angeles, CA, fall 2010; and by telephone, 2008–2010.

  89 Coffey, for a redesign that unfairly After Henry, by Joan Didion (New York: Vintage, 1993). The book by Didion, a California native, contains a chapter on Los Angeles and the Times that discusses Coffey’s tenure as editor as well as the newspaper’s place in the civic, political, and cultural affairs of Los Angeles.

  90 Initially, Erburu found it relatively easy to “Controlling stockholders and the disciplinary role of corporate payout policy: a study of the Times Mirror Company,” by Harry DeAngelo, Linda DeAngelo, Journal of Financial Economics, 2000. The details of the dividend payout policy of Times Mirror Company and the Chandlers came from this academic study by professors at the Marshall School of Business, University of Southern California, Los Angeles.

  92 In Minneapolis at General Mills Author’s interview with Mark Willes, Salt Lake City, UT, 2010.

  93 as “Family Home Evening”—a time “Mark Willes, Ahead of the Times,” by Edward L. Carter, Marriott Alumni Magazine, summer 2001.

  94 When Willes arrived on the scene, Tim Rutten “The State of the American Newspaper: Down and Out in LA,” by William Prochnau, American Journalism Review, January/February 2000.

  96 The Chandlers who had brought Willes to the paper Author’s interview with Harry B. Chandler, Los Angeles, fall 2010. The author interviewed Chandler, who is Otis Chandler’s son, and one of the few members of the family who will talk publicly about its affairs.

  97 Willes launched the first brand advertising Author’s interview with Leo Wolinsky, Los Angeles, CA, fall 2010; and by telephone, 2008–2010; and “Retreat Presentation,” a detailed study of the Los Angeles Times readership and circulation. The study was done when Dean Baquet was editor of the paper in 2005 and 2006.

  98 He sold off Harry N. Abrams Privileged Son: Otis Chandler and the Rise and Fall of the L.A. Times Dynasty, by Dennis McDougal (Cambridge: Perseus Publishing, 2001).

  99 revived the dividends the Chandlers had sought “Controlling stockholders and the disciplinary role of corporate payout policy: a study of the Times Mirror Company,” by Harry DeAngelo, Linda DeAngelo, Journal of Financial Economics, 2000. Details of the financial arrangements also came from the author’s interview with Efrem (Skip) Zimbalist III, a former Times Mirror CFO, Los Angeles, CA, fall 2010, and by telephone, winter 2009.

  101 he infuriated the Chandlers by tapping Author’s interviews with Efrem (Skip) Zimbalist, III, Los Angeles, CA, fall 2010; and by telephone, winter 2009; and Thomas Unterman, a Chandler family lawyer who manages the Chandler’s money, Los Angeles, CA, fall 2010.

  101 Harry Chandler, Otis’ son, had come to the Author’s interview with Harry B. Chandler, Los Angeles, CA, fall 2010.

  Chapter 7: His Seat on the Dais

  105 The white tour bus carrying Author’s interview with Tribune Company official who had accompanied Madigan on his trip. Participant spoke to the author in confidence.

  105 Almost fifty years earlier to the day, Jules Dubois “Jules Dubois Dies in Bogata Hotel,” Sarasota Herald Tribune, August 1966; and “The Press: Freedom Fighter,” Time, April 1957. The details of Dubois’ life came from these two articles and several others regarding his career with the Tribune.

  106 To anyone schooled in reading the tea leaves Author’s interview with Newton N. Minow, a former Tribune Company director, Chicago, IL, winter 2010.

  106 he concluded that the Tribune Company Oral History of Brumback, by Robert Wiedrich, McCormick Foundation, 2000 and 2001.

  107 At one point, Brumback’s mandate STRIKE, The Daily News War and the Future of American Labor, by Richard Vigilante (New York: Simon and Schuster, 1994). Vigilante’s book on the strike at the Daily News provided excellent details on the labor dispute.

  108 Meanwhile, Brumback openly expressed doubts Author’s telephone interview with Tim Jones, a former Chicago Tribune media reporter, fall 2009.

  109 His buttoned-down countenance obscured a Author’s interview with Donald Haider, a Northwestern University professor, Chicago, IL, 2009.

  110 After graduating from the University of Michigan Author’s interview with John Madigan, Chicago, IL, winter 2008.

  110 “The problem with being a private company, . . .” Author’s interview with Stanton R. Cook, Kenilworth, IL, fall 2009.

  111 Cook and Madigan shelved Kirkpatrick’s journalistic Author’s interview with Anton (Tony) Majeri, Jr., Chicago, IL, 2009.

  112 By the time Cook stepped down as chairman of the company in 1993 Tribune Company, Proxy Statement, April 1994. Details of Cook and Madigan’s stock holdings came from this document on file with the U.S. Securities and Exchange Commission.

  115 “All he ever cared about was his seat . . .” Author’s telephone interview with James D. Squires, winter 2010.

  117 Madigan expressed his frustration to Author’s telephone interview with Nicholas Horrock, winter 2010.

  118 “Charlie had a good idea but it wasn’t the . . .” Author’s telephone interview with James Cutie, winter 2011.

  118 Within three years, NCN folded “New Media Meltdown at New Century,” by Jeanne Dugan, Business Week, March 23, 1998.

  119 “He came before the board and told us that . . .” Author’s interview with Newton N. Minow, Chicago, IL, winter 2010.

  120 Madigan and Fuller also sharply increased Tribune Company, 2003 Annual Report, February 2004. The details on the American Online transaction were confirmed in the author’s interview with Scott C. Smith, Chicago, IL, December 2010.

  Chapter 8: Inside the Merger

  123 Once a year, the paper’s editors Author’s interview with Leo Wolinsky, Los Angeles, CA, fall 2010, and by telephone, 2008–2010.

  125 He’d reported Madigan’s approach to his board Author’s interview with Mark Willes, Salt Lake City, UT, 2010.

  125 Skip Zimbalist, who had just become the Times Mirror CFO Author’s interview with Efrem (Skip) Zimbalist III, Los Angeles, CA, fall 2010, and by telephone, winter 2009.

  126 “A fundamental premise of journalism” “ Trouble with the LA Times,”News Hour with Jim Lehrer, December 1999. The quote came from a transcript of Weinstein’s interview with Terence Smith regarding the Staples incident and other problems at the Times.

  127 “Mark Willes is just a symbol—and perhaps even a victim . . .” “The Way We Live Now: 01-09-00: Word & Image; The Wall, Vindicated,” by Max Frankel, New York Times, January 2000.

  127 Even Otis Chandler broke his silence Privileged Son: Otis Chandler and the Rise and Fall of the L.A. Times Dynasty, by Dennis McDougal (Cambridge: Perseus Publishing, 2001).

  128 A native of Evanston, Illinois, Tom Unterman Author’s interviews with Thomas Unterman, Los Angeles, CA, fall 2010; and Jack Fuller, Chicago, IL, fall 2008 and winter 2009.

  128 “I told Tom we are not going to .
. .” Author’s interview with Jack Fuller, Chicago, IL, fall 2008, and winter 2009; and with Efrem (Skip) Zimbalist, III, Los Angeles, CA, fall 2010; and by telephone, winter 2009.

  129 “We went there first and then they [the Chandlers] ...” Author’s interview with John Madigan, Chicago, IL, winter 2008.

  129 His mentor, Ira Harris, considered him a strong Author’s telephone interview with Ira Harris, fall 2010.

  130 By March 2000, Madigan and the Chandlers Tribune Company, Proxy Statement, May 2000. The details of the deal and the due diligence were outlined in the proxy report filed with the U.S. Securities and Exchange Commission.

  132 “Tom and everybody else were talking about . . .” Author’s interview with Mark Willes, Salt Lake City, UT, 2010.

  132 a severance package worth $64.5 million The size of Willes’ severance was originally computed by James Bates and Michael Hiltzek based on pubic records and figures that Willes provided to the two Los Angeles Times reporters. Several other reports said the figure could be higher, but Willes deferred some of his compensation and now is a substantial creditor in the Tribune Company bankruptcy.

  133 Tribune had acquired Times Mirror for $95 a share in cash and stock Tribune Company, Proxy Statement, May 2000.

  134 The combined company’s Internet audience “The chicagotribune.com: Creating a Newspaper for The New Economy,” by Professor Nina Ziv, Institute for Technology and Enterprise, Polytechnic University, New York, October 2000.

  134 On March 13, Hiller stood before Author’s interviews with David Hiller, Chicago, IL, winter 2008, and winter 2010.

  Chapter 9: Making News

  135 an extraordinary series called “Trial and Error” “Prosecution on Trial in DuPage,” by Maurice Possley and Ken Armstrong, Chicago Tribune, January 1999.

  135 But his sources in the legal community Author’s telephone interview with Ken Armstrong, former Chicago Tribune reporter, fall 2010.