The Lake Charles echo., 1893-09-29
A NEWSPAPER TRUST.
A PROJECTED COMBINATION FOR
=. NEW ENGLAND JOURNALS.

A Proposed Combine with Capital Of
@1O, 900, 600 About to ne Formed TO Con-
troll the Businsss IntsrSSts Of the Lead
ing Papers of New England. .#-,
The Providence News ia informed by
an authority that has always been con-
sidered, reliable that another big Rnan-
cial project is under serious considers
ton by number Of capitalists OF New
York, Philadelphia and Chicago to &c.
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 viii prove even more
remunerative and influential by tho 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 1t has been recognized that
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 tho personal property Of sim
gle owners, have been managed by stock
companies. ...-..l ..a.
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
soripps league ia widely known as a big
syndicate, managing.a a dozen valuable
newspaper plants.
1t was one of the dreams Of the elder
Bennett which q 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 syndicate, with the elder
Bennett at its head, but disagTeements
arose, and the negotiations came to
naught. - 's'".
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
fatigabIe efforts extending over q series
of years. 1t is popularity reported that
the income of James Gordon Bennett Of
the New York Herald from his paper ia
$3.50, 900 per annum, The World closely
follows this with over 100000, while
The Sun probably makes half that
amount. The Boston Herald Is supposed
to divide $500, 600 year between the
owners, while The Globe pays at least IL
per cent net on g., 100000
The proposed combine, however, deals
with New England newspapers, and even
this is O deal Of immense magnitude,
The capitalists alluded to propose tC
purchase the leading daily papers in
New England, managing them OF course
as individual papers and preserving theil
separate autonOmies, yet controlling
them by o directorate, TO whom thu
agent or manager in charge OF eaci
paper shall report directly II is esti
mated that &1O, 900, 600 in capital will b.
required. - '.'
The plan ia to purchase these proper
ties by issuing bonds for 5000, 900, pre-
ferred stock of 81, 5,OO0, 900 and common
stock of $1,000, 900, the bonds and tn
common stock to be sold for the puF
chase money, the bonds to carry an
peT cent guarantee, the preferred stool
| 10 be a I per cent and the common
to declare whatever dividend might b
left over after an allowance for sink
ing fund. At the present cost Of operat
ing the common stock could declare 1
per cent dividend and carry 8 per cen
: to the sinking fund, ... ...
The cost OF operating would be great
} ly reduced. Take for example the Boz
) ton dailies or the two big Sunday issues
) The Herald and Globe each run train
I out over the roads leading from Bosto
Sunday morning, seven trains each. On
? of them could be cut of and Joint trai
! run, saving at least $30, 900 per year, p
!, purchasing paper in such immense quaE
7 titles the very lowest possible price c0ul
Z BIO obtained, and very small fraction
3 per cent saved would In the aggTegat
9 amount to an enormous figure, and 3
' with paper 80 with type, presses, ink an
all other materials In the matter
distribution Of papers In Boston alone a
enormous saving would be made,
= BY the control Of all the newspapi
q properties in New England by one col
y ceFn new era In the collection Of new
p would at once follow, A system
. leased lines, with operators IN the en
n ploy Of the combine, would be ineyitabl
, The New England Assoeiated Pre-
/ would either be merged in II or go 70 Il
It wall, but this system Of leased wiz
a would bring q saving Of such propo
y tions as to DO absolutely startling al
d which ia at present impossible by az
one paper, 1t Is expected that expens
Of operation would DO reduced fully
per cent, M iey sar. a-ts
3 The plan u not political one and b
y no political Significance The combil
Z is said TO be evenly divided between ho
Z the great political partiesi otherwise II
y absorption of such papers would give
le political influence that would be 80 powe
q ful that IL could not DO tolerated, Agen
~ of the syndicate are now In New En-
land making inquiries aud investigation
The successful management Of the Stan
4 ard oil company, of the big street 9
z combines and other trusts seems like
y y 70 be followed BY . newspaper trust,
~