Evening star., 1908-01-26
MAY BE TAKEN TO COURT
Loss in the Publication Part of the
Paper.
cAUsE0F DECREASED EARNINGS
Company Owning the Mechanical
Equipment Still Controlled by
the Walter Family.
BY WILLIAM f.. CURTIS.

over the transfer of the London Times
TO Mr.. c. Arthur Pearson and other lead
ers of the protective tariff movement in
England who have been trying to pur-
chase it. Some of the free trade stock
holders are objecting to the sale and
threaten to take the matter into court.
The details of the controversy have not
been disclosed. but if the obiectors sue
coed in taking the matter into court
some interesting disclosures are likely to
be made concerning the management and
the ownership of the greatest of all news
papers.
The London Times is composed of two
cntities-two distinct corporations: a
wheel within wheel. as is the case with
many OF our railroads and other great
enterprises in this country. When a
railway is about to be built the promo
ters often form distinct company for
construction purposes being both owned
and controlled by the same men, who,
acting for the railway company, make
contracts with themselves as managers
of the construction company to do the
work and make the profit. 1t is Gus
tomary. also. for directors and stockhold-
ers of railway companies to organize sub
sidiary companies to handle freight and
they make contracts with the parent COM
pany represented by themselves to give
special and profitable privileges to them
selves as the representatives of a distinct
corporation owning a certain number of
freight cars. But / do not believe the
two corpora tions owning the Times were
formed with any such purpose In mind,
although L never heard the reasons ex-
planned. The present arrangement, which
has existed for more than a half century,
is. however. unique.
One company owns the Times building
in Printing House Square, and all real
estate and other tangible property. in
Guiding the presses. the linotype machines
and everything belonging to the mechan-
zeal department of the paper. The other
company owns the goodwill. the sub
scription list and the advertising con-
tracts 1t employs, controls and pays
the editors. reporters. correspondents, ad-
vertising clerks. circulating agents and
all persons connected with the EDITORIAL,
circulation and advertising departments.
This company has contract, extending
over term of years, which has been re-
newed several times. with the mechanical
company for the printing of the paper
and the delivery of so many copies per
day at q certain hour In the morning TO
the agents Of the circulating department.
For. this service certain price unknown
TO the public Is paid. At the termination
of such contract the editorial department
Of the Times would be at liberty to make
a similar ARRANGEMENT with any other
printing establishment: on the other hand
the uaechanical department could make a
similar contract with any other news
paper publisher, And it may come to
that before the litigation is over.
The stock of the mechanical company
is all owned by the descendants of Mr.
Walter the founder of the paper, and
they may be considered preferred stock
holders or preferred creditors of the
other company, because the printing bills
must be paid first, and whatever is lett
~ 4t,o "a
used to meet the pay roll and the residue
to be distributed as dividends among the
stockholders Of the publication company.
Loss in Publication.
It is generally understood in London
that the Walter family has lost control
of that company; that Mr.. Arthur wal
ter. a grandson of the founder. and the
present head of the family, has been
compelled from time to time to borrow
money upon its stock and to sell shares
to raise funds TO meet the annual deficits
i'm the earnings AS was stated In let
ter several days ago. the circulation and
the advertising patronage of the Times
have fallen off very seriously during the
last fifteen or twenty years Tor various
reasons; first, because of its high price,
which is cents copy, while Its rivals
are selling for ] and cents, second.
because public confidence In she infalli-
bility of the paper has been shaken;
third because of changes in its political
policy which have offended large por-
ton of the nobility. the aristocracy and
the upper classes upon which 1t has de-
pended for patronage, and, fourth. be-
cause of recent enterprises in which the
publishers Of the Times have been In
Solved in such d manner as to antagonize
many of its most important supporters.
The reduction of its circulation. which
is asserted to be less than $1,000, has,
OF course naturally, impaired Its value
as an advertising medium, and the no
biiity, aristocracy and Weather classes
of the population, who alone are willing
TO pay q cents for a newspaper, are not
reached by advertising except In certain
lines, such as books, financial matters,
legal notices, real estate investments,
musical and theatrical announcements,
etc The middle and lower classes. AS
they are defined in England, have no use
for the Times, either as an advertising
medium or for it's news. Although 1t
has the best staff of correspondents of
any newspaper in the world. who are
stationed at every important news center,
and contains accurate accounts of every
important event OF public interest, II
never deals with sensations or gossip or
the personalities which are so much
craved by the general reading public
The greater part of its columns is nlled
with verbatim reports OF public meetings
and the proceedings OF both houses OF
parliament
Verbatim Report of Debates.
II is a sacred tradition that every worG
that has been uttered in either house oi
parliament since 1906 has been published
in tile columns Of the London Times, and
that has been an enormous drain upon the
resources of the paper without correspond
ing returns. II is compelled to employ 4
large staff OF stenographers and copyists
10 make the reports, while several pages
arc daily filled with fine type, which re-
quires the employment of a large number
of compositors and naturally increases the
paper bills at least 80 per cent during this
sessions OF parliament. No other news
paper in the world would undertake such
costly enterprise without subsidy from
the government. Not more than three
Thousand copies at the most liberal esti
mate sold or subscribed for because o1
these verbatim reports. The income from
that source Is commonly estimated a,
about : per cent of the outgo. and as
business proposition IL is fatal to the
prosperity of the paper.
SPEECHES made on the floor of the hous.
of commons and in the house of lords ar,
printed regularly at the expense OF tht
government under contract In a daily ga
;-tte called the Parliamentary De
hates. That paper contains everythin,
tatt anybody cares TO know about thi
Proceedings. and the routine is omitted al
without public interest. But the Time.
ltrints every word its reporters can hear
IL an honorable member yawns, or say
Ain the sound Is faithfully reported II
tn. columns OF the Thunderer.
Last winter a committee was appointed
10 Investigate this matter and Sir Court
ney Ilbert clerk of the house of commons
who has been spending several weeks re
Gently in Washington, has gone home Wit