Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1916-08-15

! newspapers and for the past twent!
years has dealt in newspaper proper
ties having bought and sold newspa
i pers until he has become the foremos
! Judge of newspaper values in America
There is an Arabian proverb which
always heartens me when | am asked
to speak on an occasion like this.
says that .One profits more by the
sight Of an idiot than by the voice
of the learned" So that if l do MOI
meet your expectations today by thu
wisdom of my remarks YOU may still
learn something to avoid by the posi-
| tiveness of my assertions and the GER
tainty with which l voice my conclu'
| sions, right or wrong as they may
prove to be. They are at any rate the
result of many years experience anG
| observation and you must take them
| for what they prove TO be worth &c
you.
! You asked me to say something
! about the value of newspaper proper
| ties and how to increase their value
| AS to the present value of any given
| newspaper the skilled appraiser has nc
| more difficult problem submitted to
| him. And but few men have had the
| varied experience with different prop
| critics TO qualify them TO act as a
vaiuer in such a case. When called
upon TO do so one will find, however
great his experience, that the property
| before him differs in some respects,
! more or less important. from any other
! that he has ever examined. These diff
| ferences of location, possible field. ex-
.s-i and history
must he carefully considered as affect
| ing the good will value Of the property.
And the item of good will is usually
found by far the chief asset of the in
stitution. Equipment can be valued
pretty closely by taking the price at
which similar machines and tools in
used condition can be had in the mar
ket and adding the cost OF installation
to those figures so that this minor part
of the property's value presents little
difficulty.
The tendency to base the total value
of a newspaper upon its net earnings
is naturally strong, but newspapers
which have shown losses and not pro-
fits. some which have never shown a
profit have been sold for large sums,
so it is evident that this factor alone
can not be used in fixing the total
value. A large sum may have been
spent in establishing a paper as yet
Improbable in getting circulation and
an advertising clientele. II may have
all been wisely spent and It may we'll
represent value greater than the
total cost. No line Of steady. nom
huctuating business has gained more
rapidly in annual turnover than ours;
so that while there is a present loss,
a future profit can be certainly pre-
dicted in many cases. No business is
more marked by hopeful optimism.
Most newspapers that change hands
are purchased by men who confidently
expect TO vastly improve conditions as
they exist at the time, of the sale And
in most cases. certainly in those OF
papers that have the right field and
character. this expectation has been
realized. Frequently paper gets into
a rut, its conductors grow old and lose
that keen interest and enthusiasm
which are so necessary for growth, and
profits decline instead Of increasing.
In such a case a change Of manage
ment is desirable, and without it the
property usually goes on the rocks
L Slidil really mention Some OF the
things which. in my experience and
from my observation. have helped to
build up good solid newspaper proper
ties, such, am sure, as are those you
own and conduct. I have said those
that you own. but venture TO say that
the more successful they are the less
you OWL them. You do the work, it is
true, collect the money, pay '-the bills
and pocket the profits. But in the
larger sense your readers make them
and they own them, allowing Won to
run them for the public benefit. The
really successful newspaper is becom-
ing or mas become a public institution.
the more nearly il has approached
this point the more successful and val
liable it is.
The Chinese have a proverb which
says, With patience the mulberry leaf
becomes a silk gown Another pro-
verb Of the same wise people counsels
perseverance in these words: The
tallest temple rises by but one brick at
a time"
1t sounds hackneyed to say it-like
Y. NJ {. A. lecture perhaps-but it is
nevertheless true that valuable
newspaper property is the product
principally Of these qualities exercised
by It's builders. No business has 80
much Of good will value and good will
is always slowly acquired No BUSH
ness SO much depends upon the friend
snip OF the entire community as does
yours. Every individual in the COM
munity is possible customer for what
you have to seli-circulation and ad-
sells anything else will not build I'D a
valuable property.
In looking over the list Of your mem
oers see that in several of the towns
you represent you have too many
newspapers. This is true of all sec
tons OF the country also and here as
wen as elsewhere the number must be
decreased as time goes on. AS the
strong thrive the weak must wither
Up in the Adirondacks where live
the state is planting large areas for
merly burned and barren with Young
pine and spruce trees that will in time
become large and a source Of revenue
10 the commonwealth. In the paintings
OF ten or dozen years ago the weak
lings have already been crowded ont
There are not half as MANY as were
originally planted and as time goes
on the number will be still further re-
duced, but the survivors will be strong
plants and worth the space they oc-
cupy. The same process OF the elimi-
nation OF the weaklings is going on III
our business. We can not stop it and
should not try to do so but should
help 1T along. 1t takes quite a large
town TO AFFORD business enough 70
make two newspapers profitable. Look