The herald., 1893-09-30
A NEWSPAPER TRUST.
A PROJECTED COMBINATION FOR
NEW ENGLAND JOURNALS.

A Proposed Combine with Capital Of
$4,000. 600 About TO Be Formed to Con-
troll tho business Interests of tho Lead
ing Papers of Now England.
The Providence News is informed by
M authority that has always been con-
sidered reliable that another big fnan-
cial project is under serious considera-
tion by number of capitalists of New
York, Philadelphia and Chicago to Sc
cure control and to manage number of
properties in the New England states
that are very valuable and profitable,
but which under such consideration as
the one proposed will prove even more
remunerative and influential by the re-
duction of the expense in operating, and
by the purchase of supplies in quantities
30 large as to demand great reductions
In the price of material used.
For years it has been recognized that
q good paying newspaper is one of the
most solid and stable investments that
money can be put into, and the majority
of the newspapers of the country, too
large to be the personal property of sim
gle owners, have been managed by stock
companies.
This consolidation of newspapers un-
der one management is not particular
ly new idea. 1t has been very successful
on smaller scale in the west, where the
Scripps league is widely known as q big
syndicate, managing dozen valuable
newspaper plants.
1t was one of the dreams of the elder
Bennett which number of years ago
came near to realization. The New York
Herald and The Times, the Chicago Times,
St. Louis Post-Dispatch and the Boston
Herald at one time came very near being
controlled by a syndicate, with the elder
Bennett at its head, but disagreements
arose, and the negotiations came to
naught.
The enormous earnings of big papers
like the New York Herald, Sun and
World, the Boston Herald and Globe are
the natural results of serious and indie
fatigable efforts extending over series
of years. 1t is popularity reported that
the income of James Gordon Bennett of
the New York Herald from his paper is
$3.50, 900 per annum. The World closely
follows this with over $500,000, while
The Sun probably makes half that
amount. The Boston Herald is supposed
to divide 100000 year between the
owners, while The Globe pays at least 10
per cent net on 50 100000.
The proposed combine, however, deals
with New England newspapers, and even
this is deal Of immense magnitude.
The capitalists alluded to propose to
purchase tho leading daily papers in
New England, managing them of course
as individual papers and preserving their
separate autonomies, yet controlling
them by directorate, to whom the
agent OF manager in charge of each
paper shall report directly. 1t is esti-
mated that $4,000, 900 in capital will be
required.
The plan is to purchase these proper
ties by issuing bonds for $5,000,000, pre-
ferred stock of S5,00O,000 and common
stock of $4,000 900, the bonds and the
common stock to be sold for the pur-
chase money, the bonds to carry an s
per cent guarantee, tho preferred stock
to be per cent stock, and the common
to declare whatever dividend might be
left over after an allowance for q sink
ing fund. At the present cost of operat-
ing the common stock could declare 10
per cent dividend and carry per cent
to the sinking fund.
The cost Of operating would be great
ly reduced. Take for example the Bos-
ton dailies or the two big Sunday issues.
The Herald and Globe each run trains
out over the roads leading from Boston
Sunday morning, seven trains each. One
of them could be cut off and q joint train
run, saving at least $50, 900 per year. By
purchasing paper in such immense guam
tities the very lowest possible price could
be obtained, and very small fraction Of
a per cent saved would in the aggregate
amount to an enormous figure, and as
with paper sowith type, presses, ink and
all other materials. In the matter of
distribution of papers in Boston alone an
enormous saving would be made.
By the control of all the newspaper
properties in New England by one con-
cern a new era in the collection of news
would at once follow A system Of
leased lines, with operators in the en-
ploy of the combine, would be inevitable.
The New England Associated Press
would either be merged in it or go to the
wall, but this system of leased wires
would bring saving of such proper
tions as to be absolutely startling and
which is at present impossible by any
one paper. 1t is expected that expenses
of operation would be reduced fully 25
per cent.
The plan is not political one and has
no political significance. The combine
is said to be evenly divided between both
the great political parties; otherwise this
absorption Of such papers would give a
political influence that would be SO power
full that it could not be tolerated. Agents
of the syndicate are now in New Eng
land making inquiries and investigations.
The successful management of the Stand
ard Oil company, of the big street car
combines and other trusts seems likely
to be followed by newspaper trust
Journalist.
Banks In the United States.