The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1931-08-07
UTILITIES HEAD
BUYS INTEREST
IN NEWSPAPER
Kansas City Post Stock Is
Sold to Henry Doherty in
Gas Rate War.
PRICE IS NOT DISCLOSED
Cities Service Chief to Be
Contributing Editor
Attacks Star.

NEW YORK, Aug. Purchase
Of one-half interest in the Kansas
City CMo) Journal-PoSt was an
nounced by Henry L. Doherty to-
day. A statement he gave out said
this was TO meet the Kansas CITY
Star on an equal footing in the
campaign against him and the in
terestS OF Cities Service"
The statement added that an
nouncement of the Doherty pur-
chase would be made in the after
noon editions of the JournaI-Post
today.
Entrance of Henry ?. Doherty
head of the billion dollar Cities
Service Corporation, into the Kan
sas and Missouri newspaper field
heightenS the battle between his
companies and the Kansas City
Star, which has been opposing the
utility bitterly.
Filed Libel Suits
Doherty, after winning court ac-
tons IN which the state of Kansas
sought to bar his securities from
the Kansas market, recently filed
libel suits against the Kansas City
Star, demanding $12,000,OOO in COM
penSatory and punitive damages.
These suits are yet to be tried.
The Star, one of the most infiu-
entail newspapers in the middle
west, has sought to force the Cities
Service subsidiary operating in Kan
Sas to lower rates for natural gas,
on the plea that opening of new
fields made costs of production
lower.
Doherty's announcement today
emphasized that he has not pur-
chased control of the Journal-PoSt.
Under his contract, he may vote 10
per cent of the so per cent of stock
he has purchased, which leaves the
actual control of the newspaper in
the hands of w. Laurence Dickey
and Marion B. Sharp, who have
managed the property since the
death Of the late Walter S. Dickey.
Contributing Editor"
Doherty will be a special con-
tributing editor" with the right to
have published whatever matter he
thinks proper under his signature,
and with the right to buy advertis-
ing space at any time he sees fit,
for the publication of any further
statements he may see fit to print
in addition to his editorials"
Under this arrangement, Doherty
will take full responsibility both
for his editorials and paid state
ments," with the stipulation that his
articles shall not be edited on CEN
Sored.
1t also is stipulated that neither
Of the other managers shall be
bound by any statement made by
Doherty in the Journal-Post, and
that they reserve the right to use
editorial columns next to Doherty's,
if they see fit, to express contrary
opinions.
Doherty's announcement today
was couched in the usual vigorous
language with which he phrases his
attacks.
Charges Sale Illegal
Charging that the sale Of the
Kansas City Star to it's present
ownership was illegal" Doherty
cited its present activities as law
less and reckless" and declared
that although he does not desire
to injure their property, he feels it
a public duty and a necessity in his
own defense to expose their meth
DDS"
In a letter to the trustees Of the
Kansas City Star, Doherty offered
to withdraw from the fight land
make any reasonable concession" If ;
the trustees will endeavor to re-
move the men now holding control
Of the paper. He further offers to
place 40 per cent of his stock in
the paper in escrow with a group
of men enjoying general public con-
f1dence, if this is desired by the
public"
Amount Not Disclosed
Financial consideration involved
in the contract was not disclosed
here.
The motive Of Henry L. Doherty
in acquiring an interest in the
Journal-Post will be understood by
everyone, and there is no need to
discuss that" George B. Longan,
president of the Kansas City Star
Company, said.
I'VE still are interested in the
price Of natural gas in Kansas"
Longan added, "the one thing
which Doherty has not yet dis
cuSsed."
BODY ON BEACH MAY BE