Management aspects of establishing and operating a recently organized daily city newspaper in Los Angeles

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MANAGEMENT ASPECTS OF ESTABLISHING- AND OPERATING A RECENTLY ORGANIZED DAILY CITY NEWSPAPER IN LOS ANGELES

A T h esis P resen ted to t h e F a c u l t y o f t h e D e p a r tm en t o f Management The U n i v e r s i t y o f S o u t h e r n C a l i f o r n i a

In P a r t ia l F u lfillm e n t o f t h e R e q u ir e m e n t s f o r t h e D e g r e e M a s te r o f B u s i n e s s A d m i n i s t r a t i o n

by D o n a ld H. A d l e r J u n e 19 5 0

UMI Number: EP43235

All rights reserved INFORMATION TO ALL USERS The quality of this reproduction is dependent upon the quality of the copy submitted. In the unlikely event that the author did not send a complete manuscript and there are missing pages, these will be noted. Also, if material had to be removed, a note will indicate the deletion.

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Dissertation Publishing

UMI EP43235 Published by ProQuest LLC (2014). Copyright in the Dissertation held by the Author. Microform Edition © ProQuest LLC. All rights reserved. This work is protected against unauthorized copying under Title 17, United States Code

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ProQuest LLC. 789 East Eisenhower Parkway P.O. Box 1346 Ann Arbor, Ml 48106- 1346

,

This thesis written by ...£ Q ja a ia _ _ H ._ _ _ M l£ r .......................................................

under the guidance of Faculty Committee, and approved by all its members, has been presented to and accepted by the Council on Graduate Study and Research in partial fulfill­ ment of the requirements for the degree of M aster o f B u s in e s s A d m in is t r a t io n ...................................

D ate.............................................................

Faculty Committee

i B . .... Chairman

TABLE OF CONTENTS CHAPTER I.

PAG-E

THE PROBLEM AND DEFINITION OF TERMS USED

.

I

The p r o b l e m .............................................................................

1

Im p ortan ce o f

th e s t u d y

.

....................................

2

D e f i n i t i o n o f t e r m s u s e d .........................................

4

N ew sp a p er management J o u rn a lism

.........................................

4

........................................................................

5

E d i t o r i a l dep artm en t C ir c u la tio n

.........................................

5

........................................................................

5

A d d it io n a l term s

........................................................

O r g a n i z a t i o n o f r e m a in d e r o f t h e t h e s i s ^11.

.

6

...................................................

7

N ew sp a p er g r o w t h

........................................................

7

B u sin e ss a s p e c ts

.........................................................

15

THE NEWSPAPER INDUSTRY

M e t r o p o l i t a n d a h l i e s i n L os A n g e l e s 'ill.

IV .

MARKET ANALYSIS OF THE AREA

. . .

21

....................................

27

M ethod s o f a n a l y s i s .........................................................

27

The Los A n g e l e s M arket

29

.........................................

PRECEDENT PLANS AND INITIAL PROMOTION C A M P A IG N ..................................................................................

37

P recedent p la n s

37

..............................................................

I n i t i a l p r o m o t io n cam p aign V.

6

FINANCING- AND PLANT REQUIREMENTS

. . . . . . . . . . . .

44 4-7

iii CHAPTER

PAG-E F i n a n c i n g and o w n e r s h ip a s j j e c t s

V I.

.....................

A?

C a p ita l req u ire m en ts

....................................................

^9

P la n t r e q u ir e m e n ts

...................................................

5^

.....................................................

62

O p e r a t in g c o s t s ...................................................................

62

S o u r c e s o f in com e

70

OPERATIONAL ECONOMICS

........................................................

Budget and c r e d i t p r a c t i c e s V II.

...............................

91

YEAR)

. . . .

9L

P r o f i t o r l o s s ........................................... . . . . . *

9A

B reak -even p o in t

........................................................

97

...................................................................

102

EVALUATION OF OPERATION (FIRST

O th e r f a c t o r s V III.

ORGANIZATION OF THE NEWSPAPER T yp es o f o r g a n i z a t i o n s

.................................

...................................

.

106

O w n ersh ip and m a n a g e m e n t .........................................

108

D ep artm en tal f u n c t i o n s

115

.........................................

W orking f o r c e and p e r s o n n e l p o l i c i e s IX .

.

119

.......................

126

.....................

126

....................................

130

................................................

135

..................................................................................

135

THE PRODUCT (THE DAILY NEWSPAPER) J o u r n a l i s t i c and p h y s i c a l d e s i g n R e a c t i o n s a n d im p r o v e m e n ts

X.

SUMMARY AND CONCLUSIONS Summary

C o n clu sio n s BIBLIOGRAPHY APPENDIX

106

.

.

........................................................................

1^0

..................................................................................................

1^5

............................................................................................................

150

LIST OF TABLES TABLE I.

PAG-E Number o f D a i l y N e w sp a p e r s i n t h e U n i t e d S ta tes,

II.

1 7 8 0 - 1 9 4 6 ..............................................................

P o p u l a t i o n and D a l l y N ew sp ap er C i r c u l a t i o n i n U n i t e d S t a t e s , 1 7 9 0 - 1 9 ^ 6 ..................................

III.

15k

155

V a lu e o f P r o d u c t s a n d S o u r c e s o f R e v e n u e f o r N ew sp a p er I n d u s t r y i n U n i t e d S t a t e s , 1 9 0 9 - 1 9 N 9 .....................................................................................

IV .

Bank D e p o s i t s i n L e a d in g C o u n t i e s o f U n ite d S t a t e s ,

V.

156

19^*1 and 1 9^ 7

32

W eekly D i s p l a y A d v e r t i s i n g L i n e a g e Com­ p a r i s o n o f A f t e r n o o n N e w s p a p e r s i n L os A n g e l e s f o r F e b r u a r y , M arch, a n d A p r i l , 19^9

V I.

E a r n i n g s o f t h e T im e s - M ir r o r Company, 1 9 3 9 19^8

89

LIST OF CHARTS CHARTS I.

PAG-E

Number o f D a i l y N e w sp a p er s i n U n i t e d S t a t e s , 1 7 8 0 - 1 9 4 6 ..................................................................................

II#

P o p u l a t i o n and D a i l y N ew sp ap er C i r c u l a t i o n i n U n ite d S t a t e s ,

III.

1 939-19^ 8

32

o f L o s A n g e l e s C o u n ty , 1 9 2 0 - 1 9 ^ 8

• •

1 9 ^8 - 1 9 4 9

100

O r g a n i z a t i o n C h a rt o f t h e T im e s - M ir r o r C o m p a n y .......................................................................................

V II.

3^

S i m p l i f i e d B r e a k - E v e n C h art f o r L os A n g e l e s M ir ro r ,

V I.

13

P o p u l a t i o n a n d M e t r o p o l i t a n N ew sp ap er C i r c u ­ la tio n

V#

1 790-19^ 6

I n d e x o f B u s i n e s s A c t i v i t y i n S o u th e r n C a lifo r n ia ,

IV#

10

O r g a n i z a t i o n C h a rt o f The M ir r o r

...........................

10 9 110

LIST OF FIGURES FIGURE 1.

PAGE

P h o t o g r a p h , M ir r o r B u i l d i n g , Norman C h a n d le r a n d V i r g i l P i n k i e y ..............................................................

2.

P h o t o g r a p h , I n i t i a l P r o m o t io n Campaign B illb o a r d s

.............................................................

3*

F l o o r P la n o f t h e M i r r o r B u i l d i n g

4.

B a l a n c e S h e e t o f t h e T im e s - M ir r o r Company,

...........................

19^ 6-19^ 8 5*

^1

6l

71

P r o f i t a n d L o ss S t a t e m e n t o f t h e T im e s - M ir r o r Company, 1 9 ^ 8

7^

6.

Copy o f D i s p l a y A d v e r t i s i n g C o n t r a c t ......................

7*

F r o n t P age o f V o l .

1 , No. 1 o f The M ir r o r

.

.

8?

134*

CHAPTER I THE PROBLEM AND DEFINITION OF TERMS USED F o llo w in g th e l a s t

d e p r e ssio n ,

t h e p r o b le m s o f Amer­

i c a n n e w s p a p e r m anagem ent h a ve m u l t i p l i e d a t an a c c e l e r a t i n g ra te.

T h is h a s r e s u l t e d i n a g r e a t e r n e e d f o r s o u n d e r man­

a g em en t i n t h e i n d u s t r y t o d a y .

T h is n eed sh o u ld be r e a l i z e d

by e x i s t i n g n e w s p a p e r s a n d e s p e c i a l l y b y i n t e r e s t s c o n tem ­ p la t in g c r e a tio n o f new spapers.

The v a s t m a j o r i t y o f p e r ­

t in e n t l i t e r a t u r e c o n s u lte d in p r e p a r a tio n o f t h i s

stu d y

h a s d e a l t w i t h j o u r n a l i s m p r i m a r i l y i n an e d i t o r i a l W h ereas,

here th e e f f o r t

sense.

h a s b e e n made t o p r e s e n t a p i c t u r e

o f d a i l y n e w s p a p e r p u b l i s h i n g from t h e s t a n d p o i n t o f m anage­ m e n t. I.

THE PROBLEM

S t a t e m e n t o f t h e p r o b le m . stu d y ( 1 ) to i n v e s t i g a t e in th e i n i t i a l

I t w as t h e p u r p o s e o f t h i s

t h e m anagem ent p r o b le m s i n v o l v e d

o r g a n i z a t i o n and e s t a b l i s h m e n t o f t h e n a ­

t i o n ' s n e w e st m e t r o p o lit a n d a i l y n ew sp ap er, th e e v e n in g p a p e r , The M i r r o r , i n L o s A n g e l e s , w h i c h i s s u e d i t s e d i t i o n on O c t o b e r 1 1 , 1 9 ^ 8 ; and ( 2 )

fir st

t o a n a l y z e and a p p r a i s e

t h e o p e r a t i o n s o t h e r th a n e d i t o r i a l o f t h i s d a i l y p a p e r , w h ic h w i l l b e a p p a r e n t f o r o t h e r n e w s p a p e r s a s w e l l , and s m a l l ,

d a i l y and w e e k l y ,

la r g e

o l d o r new , i n v a r y i n g d e g r e e s .

2

Im p ortan ce o f th e th ere

stu d y *

su ch a d i v e r s i t y o f p e r s o n n e l.

lite r a r y

In i t s

e sse n tia ls,

fro m t h o s e o f i t s

but l i t t l e c ir c u la tio n

The e d i t o r i a l g r o u p ,

h a s I d e a l s and i d e a s f a r rem o ved

s i s t e r d i v i s i o n s w h ic h c o n s t i t u t e a s u b j e c t

fo r th is in v e stig a tio n .

In th e b u s in e s s d i v i s i o n th e r e i s

th o u g h t g iv e n t o th e a e s t h e t i c . in c r e a se ,

a d v e r tis in g lin e a g e ,

n e w sp r in t a re d e a l t w it h h e r e . tio n ,

I n no o t h e r i n d u s t r y i s

C o ld f i g u r e s , an d t h e c o s t o f

M a n u fa c tu r in g , t r a n s p o r t a ­

and p e r s o n n e l p r o b le m s h a r a s s t h i s d i v i s i o n .

The s i g n ­

i n g o f a l a r g e a d v e r t i s i n g c o n t r a c t b y a s a l e s m a n h a s more e x h i l a r a t i o n f o r him t h a n a m ajor s c o o p w o u ld h o l d f o r a cub rep orter.

The b u s i n e s s d i v i s i o n a p p r a i s e s a b i g s t o r y b y

t h e number o f e x t r a c o p i e s o f t h e e d i t i o n c h a n ic a l d iv is io n p resses,

so ld .

I n t h e me­

th e p r o d u ctio n w orkers in ch arge o f th e

th e c o m p o s i t o r s , mat m a k e r s , and s t e r e o t y p e r s a r e

a l l e q u a l l y n e w sp a p er m en .'1' An e d i t o r i a l d e p a r t m e n t i s no l o n g e r s u f f i c i e n t u n to its e lf,

n o r may an a d v e r t i s i n g d e p a r t m e n t be c o n d u c t e d w i t h 2 o u t r eg a r d f o r th e c i r c u l a t i o n or p r o d u ctio n d ep a rtm en ts. F o r new sp ap erm en and t h e p u b l i c a l i k e , a ll

it

is

im p o rta n t th a t

a s p e c t s o f n e w s p a p e r p u b l i s h i n g b e r e a l i z e d fro m a

^John J . F l o h e r t v , Y our D a i l y P a p e r (New Y ork: J. B. L i p p i n o o t t C o ., 1 9 3 3 ) , p p . 2 9 - 3 0 . 2 Jam es E . P o l l a r d , P r i n c i p l e s o f N ew sp a p er Managem ent (Hew Y ork: M cG-raw-Hlll B ook C o . , I n c . , 1 9 3 ? ) > p* v l i .

n e w s p a p e r 's I n c e p t io n to i t s

e s t a b lis h e d o p e r a tio n .

U n sou nd m anagem ent r e s u l t e d I n th e r e c e n t d e m is e o f a m a jo r d a i l y n e w s p a p e r v e n t u r e i n C h ic a g o .

The f a i l u r e

w as due t o u n s t a b l e p o l i c y , b a d g e n e r a l s h i p ,

in e x p e r ie n c e ,

and m i s f o r t u n e i n t h e f a c e o f e s t a b l i s h e d c o m p e t i t i o n .

T h is

w as M a r s h a l l F i e l d ' s C h ic a g o Sun, a l o s i n g p r o p o s i t i o n w h ic h he p o u r e d m i l l i o n s i n t o fro m i t s

e s t a b lis h m e n t a few days

b e f o r e P e a r l H arbor u n t i l i t s m e r g e r w i t h a g o i n g c o n c e r n p u r c h a s e d by F i e l d e a r l y i n 1 9 ^ 8 .

The g o i n g c o n c e r n was t h e

C h ic a g o T i m e s , and t h e n e w ly m erg ed c o r p o r a t i o n was c a l l e d ‘kk© C h ic a g o Sun and T im e s . d isso lu tio n

The "m erger" was I n r e a l i t y a 3 o f th e u n s u c c e s s f u l Sun.

New Y o r k ' s PM, w h i c h had b e e n " o p e r a t i n g i n t h e red" s i n c e i t s b e g i n n i n g i n 1 9 ^0 , e x c e p t i n 1 9 ^

a n d 1 9 ^5 , i s

M a r sh a ll F i e l d 1s o t h e r new spaper p r o p e r ty .

The m ain r e a s o n

it

had o p e r a t e d a t a d e f i c i t was b e c a u s e o f i t s

no a d v e r t i s i n g .

p o lic y o f

H ow ev er, a t F i e l d * s d i r e c t i o n t h i s p o l i c y

was a b a n d o n e d l a t e

i n 1 9 ^ 6 , and a d v e r t i s e r s h a v e h e l p e d t h e

p a p e r t o pay i t s w a y .

On June 2 3 , 1 9 ^ 8 , t h i s p a p e r ' s name

w as c h a n g e d t o The S t a r . A c o m p a r a t i v e l y r e c e n t e x a m p le w h er e a c o n d i t i o n o f u n so u n d m anagem ent h ad d e v e l o p e d I n an e s t a b l i s h e d n e w s p a p e r w as t h a t o f t h e New Y ork D a i l y N e w s*

-*The P r e s s , F e b r u a r y 9> 1 9 ^ 8 .

T h i s p a p e r a l m o s t x«jent

" E c l i p s e o f t h e S u n ," N e w sw ee k , 3 1 : 5 0 ,

k o u t o f b u s i n e s s in 19^8 b e c a u se o f c o n f l i c t i n g l i n e s o f a u t h o r i t y and p o l i c y m a k in g e m a n a t in g fr o m th e m anagem ent. H ow ever, f o r t u n a t e l y t h i s

s i t u a t i o n w as c l e a r e d up i n t i m e .

T h ese e x a m p le s s e r v e t o e m p h a s iz e th e n e c e s s i t y o f c l o s e a t t e n t i o n t o m anagem ent m a t t e r s b e s i d e s v ir tu e s.

e d ito r ia l

Among t h e s m a l l e r d a i l i e s and w e e k l i e s ,

a r e t o o num erous to g i v e .

e x a m p le s

The m o r t a l i t y r a t e f o r t h e s e

s m a l l e r p a p e r s was e x c e p t i o n a l l y h i g h d u r i n g t h e l a s t d e ­ p r e s s i o n p e r i o d and a t t h e t i m e o f t h i s i n v e s t i g a t i o n t h e e x p e c t e d f a i l u r e s a m o u n ted t o 50 p e r c e n t a f t e r t h e f i r s t two y e a r s o f o p e r a t i o n . II.

k

DEFINITION OF TERMS USED

N e w sp a p er m a n a g e m en t.

Management o f a n e w s p a p e r w as

t a k e n t o mean t h a t p h a s e o f t h e new spap er* s o p e r a t i o n w h ic h r e la te s to (c)

( a ) m aking p o l i c i e s ,

se ttin g

p h y sic a l, m e n t,

sta n d a rd s,

(b ) d e v e lo p in g program s,

( d ) a p p l y i n g progra m s t o f i n a n c i a l ,

a n d human r e s o u r c e s ,

( 3 ) m a in ta in in g p la n t ,

su p e rv iso r y , la b o r , e d i t o r i a l ,

maximum e f f i c i e n c y ;

e q u ip ­

and c l e r i c a l f o r c e s a t

a n d w h i c h b y t h e f o r e g o i n g m eans and

a l s o b y m eans o f c u r r e n t d i r e c t i o n ,

c o n f e r e n c e and i n s p e c ­

t i o n a im s t o a s s u r e t h e d e l i v e r y o f p a p e r s an d p e r fo r m a n c e of se r v ic e s

(a d v e r tisin g ,

e tc .)

a c c o r d in g to program , w it h in

U. S. D e p a r tm e n t o f Commerce e s t i m a t e ,

19^9*

5 a s c h e d u l e d t i m e and a t minimum c o s t w i t h t h e g o a l o f p r o ­ d u cin g a r e a s o n a b le p r o f i t . J o u r n a lism .

E sse n tia lly

b u s i n e s s o f m a n a g in g , e d i t i n g , a n d /o r jo u r n a ls* p u b lish in g ,

jo u r n a lis m c o n s i s t s o f th e or w r it in g f o r th e new spapers

P a r t o f t h e b u s i n e s s o f m a n a g in g i s

th e

o r p r i n t i n g and c i r c u l a t i n g o f t h e n e w s p a p e r s

a n d /o r j o u r n a ls . E f llt o r la l d ep artm en t.

S in c e t h i s d ep artm en t i s o n ly

o f c a su a l concern in t n i s stu d y , in t h i s c h a p te r .

It

it

w i l l be d e s c r i b e d b r i e f l y

i s t h e f u n c t i o n o f th e d ep artm en t t o

g a t h e r new s, w r it e i t ,

e d i t i t and comment on i t .

The e d i t o r

o r h i s a s s i g n e e a l s o h a s c h a r g e o f t h e makeup o f t h e p a p e r , i.e .,

t h e g e n e r a l arran gem en t o f what g o e s i n t o t h e p a p er.

The o r g a n i z a t i o n o f t h e d e p a r t m e n t i s

d iv id e d in to se v e r a l

g ro u p in g s su ch as l o c a l o r c i t y new s, o u t s id e or t e le g r a p h new s, t h e e d i t o r i a l p a g e , sp o rts, c ia l,

and v a r i o u s o t h e r f e a t u r e s s u c h a s

s o c i e t y , dram a, a u t o m o b i l e s ,

and m u s ic .

The c i r c u l a t i o n ,

y o u th , m ark ets, f in a n ­

p o lic ie s,

and p e r s o n n e l

o f t h e p a p e r d e t e r m i n e t h e a r r a n g e m e n t a n d number o f t h e s e fea tu res. C ir c u la tio n .

C i r c u l a t i o n i n n e w s p a p e r p a r l a n c e m eans ^

t h e a v e r a g e t o t a l number o f c o p i e s o f t h e n e w s p a p e r d i s t r i b ­ u ted per is s u e .

F o r a d a i l y p a p e r s u c h a s The M ir r o r t h i s

w o u ld b e t h e a v e r a g e t o t a l d a ilj r i s s u e *

C ir c u la tio n i s th e

6 l i f e b l o o d o f n e w s p a p e r and m a g a z in e p u b l i s h i n g .

The b i g g e s t

p r o b le m o f The M ir r o r h a s b e e n t h a t o f b u i l d i n g and m ain­ ta in in g c ir c u la tio n . is

T h is i s

th e c r u x o f an y n e w s p a p e r and

c o n t in u in g to be so f o r t h i s new spaper b e c a u s e o f th e

c o m p e titio n th a t i t

has fa c e d .

A d d itio n a l term s.

A d d it io n a l term s a r e d e f in e d i n a

g l o s s a r y o f t e r m s c o n t a i n e d i n t h e A p p e n d ix . III.

ORGANIZATION OF REMAINDER OF THE THESIS

The r e m a i n i n g c h a p t e r s o f t h e t h e s i s a r e c o n c e r n e d w i t h t h e n e w s p a p e r i n d u s t r y a s a w h o le ; n e w s p a p e r m a r k e t in g c o n s i d e r a t i o n s i n t h e L o s A n g e l e s a r e a ; p r i o r p l a n s and p r o ­ m o tio n ; f i n a n c i n g ;

o p e r a t i o n s d u rin g th e f i r s t y e a r ;

z a tio n o f th e paper;

o r g a n i­

t h e p h y s i c a l p l a n t ; a n a l y s i s o f th e

p r o d u c t ; m anagem ent p r o b le m s ; a n d a summary w i t h c o n c l u s i o n s . In a l l o f th e s e c h a p te r s ,

e x c e p t th e m arket a n a l y s i s

o f t h i s p a r t i c u l a r a r e a and th e p r i o r p la n s and p ro m o tio n , an a t t e m p t i s made t o r e l a t e th e e n t i r e

in d u str y .

th e s u b j e c t d a i l y new spaper to

F or I n s t a n c e i n C h a p te r V,

nO r g a n iz a ­

t i o n o f t h e P a p e r , 11 t h e p r e d o m in a n t t y p e s o f o r g a n i z a t i o n s fo u n d in d a i l y new spap ers a r e d e s c r ib e d b r i e f l y .

In tu rn ,

t h e t y p e o f o r g a n i z a t i o n o f The M ir r o r i s d e s c r i b e d w i t h a n o te a s to w h eth er i t sific a tio n

d o e s or does n o t f a l l under th e c l a s ­

o f one o f t h e s e p r o t o t y p e s .

CHAPTER I I THE NEWSPAPER INDUSTRY V o lu m e s upon v o l u m e s h a v e b e e n w r i t t e n and r e c o r d e d on t h e h i s t o r y o f n e w s p a p e r s and t h e i r p r o p o n e n t s * f o r tn e p u rp o se s h e r e , n u m er ica l s t a t i s t i c s

H ow ever,

o f new spapers

and s u b s c r ib e r s f o r th e U n ite d S t a t e s w i l l s u f f i c e f o r th e m o st p a r t .

S u c h s t a t i s t i c s p r e s e n t a com p act summary o f

th e h i s t o r y o f new spaper grow th .

C o n ju n c tiv e ly ,

t h i s chap­

t e r i s c o n c e r n e d w i t h t h e d a i l y new spaper a s i t e x i s t s a s a b u s i n e s s medium. N e w sp a p e r g r o w t h .

From B e n ja m in F r a n k l i n 1s t i m e ,

n e w s p a p e r m akin g i n A m e r ic a had p r o g r e s s e d r a t h e r u n p r o f i t a b l y from t h e u n til i t

th e e d i t o r - j o u r n a l i s t s

reach ed th e f i n a l sta g e a s th e b i l l i o n

d u stry as i t P u litz e r ,

jo u r n e y m en p r i n t e r s t o

e x is t s tod ay.

H ea rst,

p o ssib ilitie s

I n many r e s p e c t s i t

d o lla r in ­ r e m a in e d f o r

and S c r ip p s t o d em o n stra te t h e b u s i n e s s

o f n e w s p a p e r m anagem ent b e f o r e p u b l i s h e r s b e ­

g a n t o p u t n e w s p a p e r p r o p e r t i e s g e n e r a l l y upon a s o u n d e r b u sin e ss b a s is .

As C o l o n e l F rank Knox, p u b l i s h e r o f t h e

C h ic a g o D a i l y N e w s, e x p r e s s e d i t ,

th e new spaper has c e a s e d

t o b e l i t e r a r y a n d h a s becom e c o m m e r c i a l .^

1

Jam es E. P o l l a r d , P r i n c i p l e s o f (New York: M cG-raw-Hill Book C o . , I n c . ,

_ .

T h is i s

no s l i g h t

Management 1.

8 on t h e

e d i t o r ia l fu n c tio n , b ecause th e g r e a te r f in a n c ia l in ­

dependence a c h ie v e d has s tr e n g th e n e d th e new spaper e d i t o r i a l l y and a l l o w e d p r o d u c t i o n o f b e t t e r n e w s p a p e r s . We d i d n o t a l w a y s h a v e t h e m e t r o p o l i t a n p r e s s . p h y s i c a l e q u ip m e n t and s i z e

o f p e r so n n e l,

In

i t was an o u t ­

g r o w t h o f t h e s m a l l w e e k l y i n t h e m e t r o p o l i s o f an e a r l i e r day. The m ain c a u s e i n t h e s h i f t t o d a i l y p u b l i c a t i o n , n ew s i t s e l f ,

th e g r e a te s t

new s s t o r y t o d a y , sy n d ic a te ,

stim u la to r o f c ir c u la t io n .

th e

A m a jo r

s u c h a s t h e a c t i v i t i e s o f a n a t i o n a l c r im e

e le c tio n s ,

o r a H o tr e D a m e -U .S .C .

w i l l p r o d u c e b i g jumps i n p a p e r s a l e s . s t i m u l a t i n g new s e v e n t ,

f o o t b a l l game

A c o n tin u o u sly

s u c h a s a w ar o r a d e p r e s s i o n w i l l

have a s im ila r e f f e c t o v e r a lo n g e r p e r io d .

The s u c c e s s o f

th e R e v o lu tio n in t h i s cou n try and th e f o llo w in g

e v e n ts d id

much i n t h i s way t o

s t a b i l i z e w hat u n t i l t h a t p e r i o d w ere 2 sim p ly e x p e r im e n ts w it h d a i l y p u b l i c a t i o n . R e t r a c i n g d a i l y n e w s p a p e r p r o g r e s s , o v e r 135 y e a r s

a g o , n o t one d a i l y n e w s p a p e r In t h e U n i t e d S t a t e s had a t ­ ta in e d a c ir c u la t io n o f 1000.

A b out t h e t i m e o f t h e o u t b r e a k

o f t h e C i v i l War, t h e r e w e r e f e w e r t h a n ^00 d a i l y p a p e r s w i t h a c i r c u l a t i o n o f o n ly 1 , 5 0 0 , 0 0 0 f o r a n a t io n o f a p p r o x im a te ly

2 n a lism

R. W. W o l s e l e y a n d L. R. C a m p b e ll, E x p l o r i n g J o u r (Hew Y ork: P r e n t i c e - H a l l , I n c . , 1 9 ^ 9 )> P* 1 2 8 .

9 3 1 , 5 0 0 ,0 0 0 p e o p le .

3

In 19^7, 1 ,8 7 3 d a i l y p a p ers w ere p u b lis h e d i n th e U n ite d S t a t e s ; 5 1 ,6 7 3 ,2 7 6 .

t h e s e had an a g g r e g a t e c i r c u l a t i o n o f

I n t h e same y e a r , more t h a n 8 , 0 0 0

(a n d p o s s i b l y

a s h i g h a s 1 0 , 0 0 0 ) w e e k l i e s a n d s e r n i - w e e k l i e s w ere p u b l i s h e d w i t h an a p p r o x i m a t e a g g r e g a t e c i r c u l a t i o n o f 1 2 , 0 0 0 , 0 0 0 . T h o se d a i l y p a p e r s known a s m e t r o p o l i t a n d a i l i e s a c t u a l l y do n o t i n c l u d e

a ll d a llie s,

b u t o n ly th o s e p a p er s t h a t se rv e

c o m p le te ly th e m e tr o p o lita n c e n t e r s .

T h e se l a r g e d a i l i e s

u s u a l l y have a c i r c u l a t i o n i n e x c e s s o f 5 0 ,0 0 0 . I4, A m e rica n p a p e r s a r e i n t h a t g r o u p . O hart I ,

on t h e f o l l o w i n g p a g e ,

in d ic a te s

t a k e n t h r o u g h tim e b y t h e number o f d a l l i e s , e v e n in g ,

an d Sunday p a p e r s .

more o r l e s s

A b ou t 200

the c o u r s e s

o f m o r n in g ,

The l i n e s t h i s c h a r t h a s show

t h e a p p e a r a n c e o f c o m p a r a t i v e l y n orm a l g r o w t h

curves. R e f e r r in g to C hart I , th e f i r s t

I 7 S 3 m arked t h e b e g i n n i n g o f

d a i l y n e w s p a p e r , The P e n n s y l v a n i a P o s t , a n d D a l l y

A d v e r tis e r (fo rm e rly a t r i - w e e k l y ) , R e v o lu tio n . ra te.

U n til th e 1820*s,

an d t h e e n d i n g o f t h e

d a ilie s

in c r e a se d a t a stead y

S u b s c r i p t i o n p r i c e s r e m a in e d h i g h ;

lim ite d .

the f i e l d s se r v e d ,

I n e x p e n s i v e n e w s p a p e r s , made p o s s i b l e b y m a c h in e -

•%. S . D i l l , “G row th o f N e w s p a p e r s i n th e U n i t e d S t a t e s , ” U n i v e r s i t y o f K a n s a s , p p . 1 1 , 28 ( f r o m P o l l a r d , 0 0 . c i t . ), n .d . A ~ W o l s e l e y , o p . c i t . , pp . 1 2 1 - 2 2 *

) N MfcJOA M3 N 0 9 V 3 I H D ‘aQ 0 N 3 9 2 1 1 I O 1 N I 9 H 3

NUMBER DF' DAILY -5«& -te5SB~S?A ffSS

SEWSPkPEtHS -3SSSIJ3-

DAILY

EV6 NM4Gr

MORNIMQ

11

made p a p e r , e x p a n sio n ,

f a s t e r p r e s s e s , g r o w in g l i t e r a c y , came i n t o b e i n g i n t h e l a t e

and i n d u s t r i a l

1 8 2 0 ’ s and. t h e 1 8 3 0 ’ s .

From I 8 3 O t o I 8 7 0 , t h e number o f d a i l i e s r o s e fro m 65 t o 5 7 4 > a lth o u g h th e r a te o f in c r e a s e ten d e d t o d e c lin e in each d e c a d e .-’

Inrproved. m eans o f c o m m u n ic a t io n , p a r t i c u l a r l y t h e

in tr o d u c tio n o f th e

te le g r a p h ,

fu rth ered t h is

in c r e a se .

O th e r d e v e l o p m e n t s o f e q u a l i m p o r t a n c e w e r e im p r o v e d t r a n s ­ p o r t a t io n , g row th o f c i t i e s

i n number a s w e l l a s s i z e ,

an d

c o n tin u e d - i n v e n t i o n s t o im p rove t h e n e w s p a p e r m e c h a n i c a l l y . T hese d e v e lo p m e n ts o f th e n i n e t e e n t h c e n tu r y b e s i d e s a i d i n g t h e g r o w t h o f t h e n e w s p a p e r s a l s o im p o s e d g r e a t e r d e ­ mands on t h e i r s e r v i c e s . grea ter d if f ic u lt y

The p o p u l a t i o n g r o w t h p r o d u c e d

of d is tr ib u tio n ,

and t h e i n c r e a s e d l i t e r ­

a c y m eant more e x a c t i n g r e a d e r s w i t h v a r i e d i n t e r e s t s .

Com­

p e t i t i o n b eca m e k e e n e r among p a p e r s du e t o g r e a t e r a c c e s s i ­ b ility

t o t h e new s t h r o u g h im proved, c o m m u n i c a t i o n s .

in v e stm e n ts w ere r e q u ir e d t o u t i l i z e ta tio n f a c i l i t i e s a d d itio n ,

(G reater

t h e im p r o v e d t r a n s p o r ­

f o r f a s t e r and g r e a t e r c i r c u l a t i o n .

In

g r e a t e r c a p i t a l e x p e n d i t u r e s w ere r e q u i r e d f o r new

n e w s p a p e r p r i n t i n g m a c h i n e r y and m e th o d s t o p r o d u c e a p p e a l ­ i n g p a p e r s to m eet an d b e a t c o m p e t i t i o n . A g a in r e f e r r i n g t o C h a r t I , e v e n in g n ew sp a p er, w h ic h i s

th e r a p id r i s e

o f th e

th e l a r g e s t f a c t o r a t p r e se n t

A l f r e d M. L e e , The D a i l y N ew sp a p er i n A m e r ic a (New Y ork: The M a c m illa n Company^ 1 9 3 7 / V pp* 6 3 - 6 4 .

12

i n t h e i n d u s t r y , b r o u g h t e, new s u r g e o f n e w s p a p e r e s t a b l i s h ­ ment i n t h e t h r e e d e c a d e s f o l l o w i n g

t h e C i v i l War.

The i n ­

c r e a s e o f d a i l i e s b e tw e e n 1870 and 1 8 9 9 a lm o s t t r i p l e d th o s e e s t a b l i s h e d b y 1 8 7 0 , m ak in g th e t o t a l 2 , 2 2 6 i n 1 8 9 9 • 90 p e r c e n t o f t h e r i s e

N ea rly

d u r i n g t h e p e r i o d 1 8 8 0 t o 1 8 9 9 was

du e t o t h e e s t a b l i s h m e n t o f 1 0 9 8 e v e n i n g p a p e r s . The p e a k i n t o t a l d a i l y an d e v e n i n g n e w s p a p e r s was r e a c h e d i n 1909*

F o llo w in g th a t tim e ,

in s p i t e o f th e i n ­

c r e a s e s i n t h e number o f d a i l y n e w s p a p e r c i t i e s ,

c o n so lid a ­

t i o n s and t h e s p r e a d o f t h e l a r g e r u r b a n a r e a s o v e r f i e l d s w h ic h had s u p p o r t e d d a i l i e s tin u a l d e c lin e

i n number o f p a p e r s .

C o n s i d e r now C h a rt I I illu str a te s m o r n in g ,

in e a r l ie r d ecad es caused a con-

th e

6

on t h e f o l l o w i n g p a g e , w h ic h

tren d cu rv es fo r c ir c u la t io n

o f e v e n in g ,

t o t a l d a i l y a n d Sunday n e w s p a p e r s fr o m 1 8 5 0 t o 19^7*

T h is c h a r t g i v e s f u r t h e r d im e n sio n t o th e p i c t u r e p r e s e n t e d i n C h art I ,

a lth o u g h th e s t o r y f o r c i r c u l a t i o n d i f f e r s

g r e a tly . T o d a y , A m e r ic a n s p r o b a b l y r e a d more n e w s p a p e r s p e r c a p i t a th a n t h e p e o p le o f any o t h e r n a t i o n a l i t y . p e o p le ,

To m ost

new spaper r e a d in g I s b o th a n e c e s s i t y and a c u l t i ­

v a te d h a b it.

I n e i g h t y y e a r s , b e t w e e n 1 8 5 0 and 1 9 3 0 ,

th e

number o f p e o p l e i n t h e U n i t e d S t a t e s f o r e a c h d a i l y p a p e r

^I b i d . , p .

65•

346A h 0 TfORK NEW CO. ,C H 1C AGO

CIRCULATION ( 1 0 0 ,0 0 0 s )

DIETZCEN

( 1 0 0 ,0 0 0 s )

ItfeENE

-pCPUEArTOTJ

Ik i s s u e d d r o p p e d fr o m 3 1 * 0 t o 2 * 9 *

I n t h e same p e r i o d ,

d a ily

n e w s p a p e r s u b s c r i b e r s s o a r e d from k * 6 t o 4 3 * 1 p e r c e n t o f 7 t h e p o p u l a t i o n o f t e n y e a r s o f a g e an d o l d e r . B e tw e e n 1 9 0 0 and 1 9 3 1 * t h e n e t c h a n g e i n t h e number o f d a i l y nex^rs-

p a p e r s p u b l i s h e d i n t h e U n i t e d S t a t e s w as l e s s t h a n 10 p e r 8 c e n t , b u t t o t a l new spaper c i r c u l a t i o n t r i p l e d . The i n c r e a s e i n c i r c u l a t i o n

shown was f a r o u t o f p r o ­

p o r t io n to t h e change in p o p u la t io n .

T h i s w as d u e t o c u l t i ­

v a t i o n o f t h e n e w s p a p e r h a b i t , w h i c h i n t u r n w as p a r t l y t h e th e r e s u l t o f th e g ro w th f a c t o r s m en tio n e d i n c o n n e c tio n w i t h C h a rt I ,

a n d p a r t l y du e t o p r o m o t i o n a l e f f o r t s .

T r a cin g th e t o t a l c i r c u l a t i o n f i r s t r e c e ssio n ,

th e

fro m 3 3 *0 2 8 , 6 3 0 i n 1 9 1 9 t o 3 2 , 3 ^ 1 , 6 7 8 i n

1921, la r g e ly a ttr ib u ta b le

tio n s,

c u r v e o f C h a rt I I ,

to a d e c lin e

in e v e n in g c i r c u l a ­

came w i t h d e p r e s s e d e c o n o m ic c o n d i t i o n s and t h e d i s ­

c o n t i n u a n c e o f t h e f e a t u r e d r u n n in g s t o r y o f W orld War I . The second, r e c e s s i o n ,

fr o m 4 2 , 9 ^ 7 , 8 2 ^ i n 1 9 2 9 t o 3 8 , ^ 2 ^ , 2 8 1

in 1 9 3 3 * c h i e f l y b orn e by th e e v e n in g n ew sp a p ers, r e f l e c t e d t h e e c o n o m ic d e p r e s s i o n o f t h a t p e r i o d . t i o n a g a in c o n tin u e d to r i s e

u n t i l 1937*

From 1933* c i r c u l a ­ D u r in g t h e s h o r t

p e r i o d b e t w e e n 1 9 3 7 and. 1 9 3 9 i t r e m a in e d a l m o s t c o n s t a n t w i t h a s lig h t r e c e ssio n .

7

L ee,

W ith t h e a c t i v e b e g i n n i n g o f World War

on* c i t . , p .

70*

® A lf r e d McClung L e e , 11F i f t y Y e a r s o f D a i l y N e w s p a p e r s , M E d i t o r & P u b l i s h e r , J u l y 2 1 , 193^* PP* 50 f f .

15 I I i n 1 9 3 9 > c i r c u l a t i o n a g a i n commenced t o r i s e r a p i d l y . C o n t in u e d p u b l i c i n t e r e s t

in p o st-w a r in t e r n a t io n a l p o l i t i c s

s e t t h e 19^7 t o t a l c i r c u l a t i o n f i g u r e a t 5 l > 6 ? 3 > 2 7 6 f o r d a i l y papers.

The p r e s e n t i n d i c a t i o n ,

p e o p le in th e in d u s tr y , reached a le v e lin g c lin e

is

a c c o r d in g to r e p r e s e n t a t iv e

th a t n a tio n a l c ir c u la tio n

has

o f f p l a c e and i s b e g in n in g a s l i g h t d e ­

i n t h e f a c e o f e c o n o m ic u n c e r t a i n t y . B u sin e ss a s p e c t s .

m a tte r what i t s fu n c tio n s: 1.

siz e ,

The o p e r a t i o n o f a n e w s p a p e r , no

b o i l s down t o t h e s e t h r e e e s s e n t i a l

9 E d ito r ia l*

T he a c t u a l g a t h e r i n g ,

w r i t i n g , and

e d i t i n g o f new s and o t h e r e d i t o r i a l m a t t e r , w h i c h i s made up i n t o an a t t r a c t i v e p a c k a g e f o r t h e r e a d e r . 2.

B u sin e ss.

The s a l e a n d p r o m o tio n o f a d v e r t i s i n g

s p a c e ; e x p a n s i o n and h a n d l i n g o f c i r c u l a t i o n ;

p lu s bookkeep­

i n g and o t h e r b u s i n e s s " h o u s e k e e p i n g ” d u t i e s . 2.

M e c h a n ic a l.

The t r a n s l a t i o n

in to

ty p e o f e d it o ­

r i a l and. a d v e r t i s i n g m a t t e r and t h e i m p r e s s i o n o f t h a t t y p e on p a p e r b y p r i n t i n g p r e s s e s . The m ak in g o f a n e w s p a p e r a s i t

i s c o n d u c t e d now i s

r e a l l y a c o m p l i c a t e d an d c o s t l y m a n u f a c t u r i n g p r o c e s s . b o d i l y raw m a t e r i a l s c o n s i s t o f n e w s p r i n t

(p a p er)

The

and in k ;

^ D ix o n D o n n e l l e y , E s t a b l i s h i n g a n d O perating: A W eek ly N ew sp a p er ( I n d u s t r i a l S e r i e s No. ^ 3 > U. S . D e p a r t m e n t o f Commerce, W a s h in g t o n , D . C . ) , n . d . , p . 3*

w h i l e t h e i n c o r p o r e a l raw m a t e r i a l s c o n s i s t o f n e w s , f e a ­ tu res,

and a d v e r t i s i n g .

The new s i s

by th e e d i t o r i a l d ep a rtm en t.

c o l l e c t e d and e d i t e d

C ir c u la tio n b u ild in g

a r e u s u a l l y p u r c h a s e d fr o m s y n d i c a t e s . f ie d a d v e r tisin g i s p artm en t.

fea tu res

D isp la y and c l a s s i ­

s o l d and s e r v i c e d b y t h e a d v e r t i s i n g d e ­

The m e c n a n i c a l d e p a r t m e n t c o m p l e t e s t h e a c t u a l

p r o d u c t i o n o f t n e f i n i s h e d p r o d u c t w h ic h i s

p r i n t e d n ew sp ap e

I n t u r n t h e c i r c u l a t i o n d e p a r t m e n t h a n d l e s t h e m a r k e t i n g and d is tr ib u tio n

o f th e new spaper.

L ik e a n y o t h e r b u s i n e s s , m o st p a p e r s o f t o d a y a r e p u b l i s h e d t o make a s u c c e s s a s a b u s i n e s s e n t e r p r i s e t o e a r n t h e i r ow n er o r o w n e r s a r e a s o n a b l e p r o f i t f o r a l i v i n g m ore. so c ia l,

A n o t h e r common aim i s

or

th e a c c o m p lish m en t o f p o l i t i c a l

o r e c o n o m ic p o w e r . The n e w s p a p e r I t s e l f

w h ite sp ace sp o n s ib ility

(a d v e r tisin g )

h a s o n l y two t h i n g s t o s e l l :

and c i r c u l a t i o n .

o f m anagem ent t o s e l l

It

i s th e r e ­

a d v e r t i s i n g and c i r c u l a ­

t i o n i n s u c h v o lu m e and a t s u c h p r i c e a s w i l l e n a b l e t h e p a p e r t o m eet i t s

e x p e n s e s and pay a f a i r p r o f i t .

The p r o ­

p o r t i o n o f in c o m e d e r i v e d fro m e a c h s o u r c e v a r i e s a c c o r d ­ in g to t h e s i z e

and l o c a t i o n o f th e p a p er.

An a r t i c l e

i n E d i t o r and P u b l i s h e r , b a s e d on an a n ­

a l y s i s o f r e p o r ts fo r 19^0 f o r d a i l i e s p r o v id e s t h i s b reak ­ down :

17 Per c e n t 25«2 lA .O 9*1 5 1 .7 100.0

C ir c u la tio n N a tio n a l a d v e r tis in g C la s s ifie d a d v e r tisin g L ocal a d v e r tis in g

The i n d u s t r y r e q u i r e s a h i g h d e g r e e o f t e c h n i c a l s k i l l a s itfe ll a s a l a r g e o u t l a y o f c a p i t a l .

News i t s e l f

is

o n e o f t h e m o st p e r i s h a b l e c o m m o d i t i e s i n t h e w o r l d .

I n fe w

o t h e r l i n e s o f a c t i v i t y d o e s t im e c o u n t f o r s o much.

The

new spaper b u s i n e s s i s

a lm o s t u n eq u a le d i n i t s

c o m p e titio n o r in i t s

d i r e c t n e s s o f d e p e n d e n c e on p u b l i c a c ­

cep ta n ce.

As a r e s u l t o f

such c o n d it io n s ,

in te n sity of

e s t a b l i s h i n g and

o p e r a tin g a new spaper i s a h azard ou s u n d e r ta k in g . q u e n tly ,

th e in d u s tr y i s

f a ir ly w e ll s ta b iliz e d ,

C o n se ­ w it h th e

tr e n d in th e d i r e c t i o n o f fe w e r and b e t t e r n ew sp a p ers in records of recen t years.

T h i s h a s b e e n e s p e c i a l l y marked i n

t h e c a s e o f m e r g e r s a n d t h e d e v e lo p m e n t o f c h a i n o r g r o u p new spap ers.

10

Y e a r ly ,

t h e U n i t e d S t a t e s p a y s two and a h a l f b i l l i o n

d o lla r s fo r p r in tin g , ly

ro to g ra v u re,

and p h o t o e n g r a v i n g .

i t u s e s 20 m i l l i o n o r more t o n s o f p a p e r .

Y ear­

T h is k eep s a

q u a r t e r o f a m i l l i o n p e o p l e b u s y i n more th a n t w e n t y t h o u ­ sand p l a n t s .

The tw o l e a d i n g c i t i e s

t r y a r e New Y ork a n d C h i c a g o . o f t h e t o t a l v o lu m e .

10P o lla r d ,

0£ .

They a c c o u n t f o r o n e - t h i r d

P r ih tin g i s

c it.,

in th e p r i n t i n g in d u s­

p. 2 .

th e la r g e s t

in d u s tr y in

18 San F r a n c i s c o , w h ere i t

is

n o t e d f o r s u c h c r a f t s m e n a s Edwin

G-rabhorn a n d Jo h n H enry N a s h . e x c e e d i n g t h e m o t io n p i c t u r e

It

l e a d s i n Los A n g e l e s ,

too,

in v a lu e o f sa le s .

As a b u s i n e s s medium r e p r e s e n t i n g a m a jo r p a r t o f t h e p r i n t i n g i n d u s t r y a s w e l l a s an a d v e r t i s i n g m e a n s, p a p e r h a s grow n and s u r v i v e d a l l c o m p e t i t i o n . b e t t e r th a n m a g a zin es i n r e l a t i o n in g l in e a g e ,

to

It

has fa r e d

c ir c u la tio n ,

a d v e r tis­

i n d e x e s o f w a g e s a n d e m p lo y m e n t, and t h e l i k e .

D u r in g t h e e c o n o m ic d e p r e s s i o n o f t h e e a r l y 3 0 * s , paper l o s t

t h e n e w s­

t h e nex^s-

some g r o u n d b u t n o t t o t h e e x t e n t o f o t h e r m e d ia .

A c c o r d i n g t o !J. S.

C ensus d a t a ,

new spaper b u y e r s d e c l i n e d

s l i g h t l y fr o m h k . 2 p e r c e n t o f t h e p o p u l a t i o n a g e and o l d e r )

(ten years of

i n 1 9 2 9 > t o ^-2 . 0 i n 1 9 3 1 > a nd 3 7 - 1 i n 1 9 3 3 >

w h ic h I n d i c a t e s t h e p u b l i c r e g a r d f o r n e w s p a p e r r e a d i n g . The i n d e x o f em p loym en t f o r n e w s p a p e r s and p e r i o d i c a l s d e c l i n e d from 1 1 1 . 0

i n 1 9 2 9 t o 9 3 * 3 i n 1 9 3 3 > a s co m p a re d w i t h

a d e c l i n e fro m 1 1 3 * 0 t o 7 9 * ^ f o r b o o k and. Job p r i n t i n g .

The

p a y r o l l I n d e x f o r n e w s p a p e r s an d p e r i o d i c a l s d e c l i n e d from 1 2 1 .8

i n 1 9 2 9 t o 8 0 .0 in 1 9 3 3 > com pared w i t h 1 1 8 . 7 t o 6 2 . 5

f o r b o o k a n d Job p r i n t i n g . try ,

F or t h e

e n t i r e p r i n t i n g in d u s­

th e a v e r a g e r a t e o f u n io n w ages p er hour t o o k o n ly a

c o m p a r a t i v e l y s m a l l d r o p from $ 1 . 2 ^ 7 i n 1 9 29 to $ 1 . 1^ 9 i n 1933.

^ * H fo lse le y , o p . c i t . , p.

^6 .

19 The n e w s p a p e r h a s a l s o h e l d i t s

ground a g a i n s t th e

r a d i o b o t h a s an a d v e r t i s i n g medium, a n d a s a n ew s d i s p e n s ­ in g agen cy.

O th e r m e d ia h a v e b e e n t h e s u f f e r e r s from t h e

g row th o f r a d io in n a t i o n a l a d v e r t i s i n g , and b i l l b o a r d s .

H o w e v er , t e l e v i s i o n

s u c h a s m a g a z in e s

i s o p e n i n g new o p p o r ­

t u n i t i e s f o r n e w s c o v e r a g e and a d v e r t i s i n g , b e s i d e s e n t e r ­ ta in m e n t,

and e l e c t r o n i c

n e w s p a p e r s may s u p e r s e d e some t h a t

are p r in te d tod ay.

A lth o u g h th e s e l a t t e r p o s s i b i l i t i e s a re 12 m e r e l y s p e c u l a t i o n s , t h e y may s o o n b ecom e r e a l i t i e s . In th e e i g h t i e s t o t a l a n n u a l new spaper r e v e n u e s w ere a b o u t #1 3 5 , 0 0 0 , 0 0 0 and d i v i d e d a lm o st e q u a lly b etw een c i r ­ c u l a t i o n and a d v e r t i s i n g .

In 1 9 2 9 ,

t o t a l new spaper r ev e n u es

w ere i n e x c e s s o f #1 , 0 0 0 , 0 0 0 , 0 0 0 a n n u a lly , t i s i n g a c c o u n t e d f o r o v e r 70 p e r c e n t . i n c l u d e d i n t h e A p p e n d ix ,

o f w h ic h ad ver­

T a b le I I I ,

w h ic h i s

sh o w s t h e v a l u e o f p r o d u c t s and

so u r c e s o f reven u e f o r new spapers f o r th e y e a r s 1 9 0 9 -1 9 3 9 in c lu s iv e . U. lis h in g

S.

C ensus d a ta l i s t s

n e w s p a p e r and p e r i o d i c a l pub­

in t h e U n ite d S t a t e s a s r a n k in g f i r s t

among l e a d i n g

i n d u s t r i e s i n v a l u e a d d e d t o p r o d u c t s b y m a n u f a c t u r i n g and fifth

i n t o t a l v a l u e o f p r o d u c t s i n 1933*

p u b lish in g i s

lis te d

Up t o 1 9 1 3 ,

W o lse le y ,

a s t h i r d an d f i f t h ,

In 1939,

such

r e sp e c tiv e ly .

a c c o r d i n g t o W i l l i a m A. Thomas, d i r e c t o r

lo c . c i t .,

et a l.

20

o f t h e b u r e a u o f a d v e r t i s i n g o f t h e A m e rica n N e w sp a p er Pub­ l i s h e r s 1 A s so c ia tio n , tisin g

th e t o t a l o u tla y fo r n a t io n a l adver­

( a s d i f f e r e n t i a t e d fr o m t o t a l a d v e r t i s i n g w h ic h i n ­

c l u d e s n a t i o n a l a d v e r t i s i n g and l o c a l a d v e r t i s i n g ) papers d id not exceed $5 0 , 0 0 0 ,0 0 0 1 9 2 9 » by c o n t r a s t ,

it

i n any one

had r i s e n t o

y ea r .

i n n e w s­ *^3

in

$ 2 6 0 , 0 0 0 , 0 0 0 and ev en in

t h e d e p r e s s i o n y e a r o f 1 9 3 ^> i t w as b a c k t o $ 1 6 3 , 0 0 0 , 0 0 0 a fter

slip p in g

t o $ 1 4 5 , 0 0 0 , 0 0 0 i n 1933*

The n a t i o n a l a d v e r t i s i n g p o s s i b i l i t i e s

o f new spapers

w e re n o t u n a p p r e c i a t e d , b u t many a d v e r t i s e r s i P*" 3>

(L o s A n g e l e s : a l.

23

o p e r a tio n s about th e M e a n w h ile , M arch 2 7 ,

1871,

I t w as a l i t t l e page.

i7 same time.*"

t h e E v e n in g E x p r e s s , w h i c h w as f o u n d e d on

had b e co m e t h e s t r o n g j o u r n a l o f t h e era* s h e e t o f f o u r p a g e s , w i t h s i x c o lu m n s t o t h e

Not lo n g a f t e r w a r d ,

The H e r a ld was s t a , r t e d i n 1 8 7 3 *

and had no c o n n e c t i o n w i t h t h e E x p r e s s *

I n l a t e r y e a r s W.

R. H e a r s t a c q u i r e d The H e r a l d , a n d t h e n he p u r c h a s e d t h e E v e n i n g E x p r e s s , w h ic h he c o m b in e d i n 1 9 3 1 w i t h h i s H e r a l d * The p r e s e n t p a p e r i s t h e L o s A n g e l e s E v e n in g H e r a ld a n d E x p r e s s , w h i c h had a t o t a l d a i l y c i r c u l a t i o n

o f 4 l6 ,0 6 7 18

(e v e n in g s e x c e p t S atu rd a ys)

d u rin g th e e a r l y p a r t o f 1 9 4 8 .

The f o r e f a t h e r o f t h e L os A n g e l e s T im es w as t h e Week­ l y M ir r o r , t h e f i r s t

issu e

o f w h ic h came o u t F e b r u a r y 1 ,

1873# a s a " g i v e - a w a y 11 o f a c o m m e r c ia l p r i n t i n g e s t a b l i s h m ent* *1 9 L os A n g e l e s w as o v e r w h e l m i n g l y D e m o c r a t ic i n t h o s e e a r ly y e a rs,

a n d i t w as i n t h i s s o r t o f p r e s u m a b ly h o s t i l e

town t h a t t h e L oe A n g e l e s T i m e s , a R e p u b l i c a n n e w s p a p e r , d e ­ f y in g th e

J i n x o f many d e f u n c t p r e d e c e s s o r s ,

p e a r a n c e D ecem b er 4 , of it s

1 881 *

made i t s

ap­

T h is p ap er d id n o t have a p la n t

own, b u t was p r i n t e d i n t h e o f f i c e

o f t h e s„fore-

1 7I b l d . , pp. 2 1 5 -1 8 . H i s t o r y o f t h e L o s A n e e l e s T im es (L o s A n g e l e s : ( T im e s - M ir r o r Go. B r o c h u r e , 1948)'"/ p* 5« ©t a l . ~^I b i d . , p p . 7 - 1 3 > 2 8 .

2k m en tio n ed e s t a b l i s h m e n t .

A fte r o n ly a few w e ek s,

t h e m anage­

m ent o f t h i s p a p e r w as assumed, b y t h e p r i n t i n g e s t a b l i s h m e n t 20 o w n er s f o r p ay m en t o f b i l l s by i t s f o u n d e r s . The p a p e r c o n t i n u e d f a l t e r i n g l y , G-ray O t i s

( l a t e r g e n e r a l)

in J u ly 1882,

to g iv e

it

was c a l l e d

u n t i l C o l.

H a r r iso n

in to th e fir m a s e d it o r

th e b e n e f it o f h is le a d e r sh ip .

He

had had c o n s i d e r a b l e m i l i t a r y , g o v e r n m e n t , a n d p u b l i s h i n g e x p e r ie n c e .

L a t e i n 188 3* C o l.

O t is and a f i n a n c i a l b a c k e r

t o g e t h e r b o u g h t o u t t h e o t h e r o w n e r s a n d f o r m e d t h e T im e s M ir r o r Company.

The M ir r o r was i n c l u d e d i n t h e t i t l e

th e o r ig i n a l l i t t l e

th r o w -a w a y a d v e r t i s i n g

because

s h e e t had b e e n

d i g n i f i e d w i t h t h e s t a t u s o f t h e T im es W eek ly E d i t i o n .

C o l.

O t i s t h e n b o u g h t o u t h i s p a r t n e r a n d a ssu m e d f u l l c o n t r o l . He s e t t h e o r i g i n a l p o l i c i e s o f t h e Tim es a s i t

i s known t o ­

day a n d r e m a i n e d a c t i v e

i n i t s m anagem ent a n d i n com m unity 21 p r o j e c t s u n t i l h i s d e a t h i n 1917* H arry C h a n d le r c o n t r o l l e d th e o r g a n iz a tio n u n t i l h i s su b seq u en t d e a th in 1 9 ^ * T im es had a t o t a l c i r c u l a t i o n o f 397> 6L 0 ( m o r n in g ) th e f i r s t

d u rin g

p a rt o f 19^8.

W. R. H e a r s t , a t

t h e i n s t a n c e o f I n t e r n a t i o n a l Typo­

g r a p h i c a l . U n io n o f f i c i a l s , i n D e ce m b e r,

20

The

s t a r t e d h i s L os A n g e l e s E xam in er

1 9 0 3 > a s a m o r n in g c o m p e t i t o r o f t h e T im e s ,

H is t o r y o f th e Los A n g e le s T im es, l o c » c l t .

^L oc.

c lt

.

25 b e c a u s e o f t h e o p en sh o p l a b o r p o l i c i e s o f t h e T i m e s *

H earst 22 made t h i s move s u p p o s e d l y a s a f r i e n d t o o r g a n i z e d l a b o r . The e a r l y 19^46 t o t a l d a i l y c i r c u l a t i o n ^ 0 9 ,8 9 5

(m o rn in g ). C o r n e liu s V a n d e r b ilt, J r . ,

to

o f t h e E x a m in e r was

sta rt

e n e r g i z e d b y an a m b i t i o n

“n o n s a la c io u s ” j o u r n a ls i n

th e U n ite d S t a t e s ,

t a b l o i d fo r m t h r o u g h o u t

b e g a n t h e L o s A n g e l e s I l l u s t r a t e d News i n

1 9 2 3 > w h ic h w en t ban krup t i n 1 9 2 6 .

The p a p e r w e n t i n t o r e ­

c e i v e r s h i p a n d was t a k e n o v e r b y a n e w ly fo r m e d S t o c k ­ h o l d e r s 1 P u b l i s h i n g Company i n w h i c h M a n c h e s t e r Boddy had an a c tiv e p a rt.

I n 1 9 3 5 > t h i s company b o u g h t o u t t h e L o s A n g e l e s

R e c o r d , w h i c h h a d b e e n e s t a b l i s h e d i n 1895*

T h is l a t t e r

p a p e r w as c h a n g e d t o t h e P o s t R e c o r d , and t h e n t o t h e E v en ­ i n g N ew s.

T h i s p a p e r w as o p e r a t e d a s a n e v e n i n g p a p e r ,

w h i l e t h e I l l u s t r a t e d D a l l y News c o n t i n u e d t o o p e r a t e a s a m o r n in g p a p e r .

In 19^0,

t h e two n e w s p a p e r p r o p e r t i e s w e r e

m er g ed i n t o t h e p r e s e n t D a i l y N e w s , w i t h M a n c h e s t e r Boddy a s p u b l i s h e r a n d p r e s i d e n t . 2 *'*

The t o t a l d a i l y c i r c u l a t i o n o f 2A t i l l s p a p e r a s o f e a r l y 1 9 ^ 8 , w as 2 9 5 > 198.

L ee, pp. c i t . ,

p. 1^6.

22 ^ I n f o r m a t i o n s u p p l i e d b y J . Thompson, m a n a g e r o f t h e nl i b r a r y ” o f t h e D a l l y N e w s, S e p te m b e r 2 0 , 19^9* pu N o t e . A l l 1 9^ 8 c i r c u l a t i o n f i g u r e s s u p p l i e d i n t h i s s e c t i o n f o r L os A n g e l e s n e w s p a p e r s w e r e o b t a i n e d from t h e S t a n d a r d R a t e and S e r v i c e D a t a , 11N ew sp a p er S e c t i o n , ” J u n e 1 , 19^8*

26 T h u s, p r e v i o u s t o t h e p u b l i c a t i o n o f The M ir r o r on O ctob er 1 1 ,

19^8,

t h e r e w ere f o u r e x i s t i n g m e t r o p o lit a n

d a i l y n e w s p a p e r s I n L os A n g e l e s .

The M ir r o r w as t h e f i r s t

m e t r o p o lit a n new spaper c r e a t e d s i n c e th e l a s t w ar.

CHAPTER I I I MARKET ANALYSIS OF THE AREA

M eth o d s o f a n a l y s i s *

I n t h e U. S. D e p a r t m e n t o f Com­

m er ce i n d u s t r i a l s e r i e s on n e w s p a p e r o p e r a t i o n s , ^ Mr* D ix o n D o n n e lle y s t a t e s

th a t th e f i r s t

a c o m m u n ity o f f e r s p o s s i b i l i t i e s is

to

s t e p in d e te r m in in g w h eth er of

su p p o r tin g a new spaper

stu d y l o c a l b u s in e s s c o n d it io n s .

w a s a boom tow n d u r i n g t h e l a s t w a r , prosp er?

it

c o n t in u in g to

a ssu r e d in fu tu r e years?

g e n e r a l a p p e a r a n c e o f t h e com m unity? o f p r o s p e r i t y and c i v i c What i s

D oes i t

What i s

th e

h a v e an a i r

p r id e ?

th e r ea so n f o r

What s u p p o r t s i t ?

Does th e

Do t h e r e t a i l e r s

c h a n d ise?

is

Have t h e e s t a b l i s h e d b u s i n e s s men p l a n n e d a h e a d so

t h a t em p lo y m en t i s

g r o w th ?

I f t h e com m u nity

t h e c o m m u n it y 's e x i s t e n c e ?

com m u nity h a v e p o s s i b i l i t i e s

c a r r y an u p - t o - d a t e

lin e

of

o f mer­

The m a t t e r o f p e r s o n a l a p p e a r a n c e can t e l l y ou

w h e t h e r t h e com m unity i s

" a liv e ."

I t d i s c l o s e s w h eth er r e ­

t a i l s t o r e s c o n s t i t u t e an im p o rta n t o u t l e t fo r a d v e r t i s e d m erch a n d ise o f good q u a l i t y . A com m u nity t h a t l a t e d by i n d u s t r i o u s ,

I s t h e c e n t e r o f a t r a d e a r e a popu­

p r o g r e s s i v e p e o p l e , who dem and t h e

^ D ix o n D o n n e l l e y , E s t a b l l s h i n g e and O p e r a t i n g A W eek ly N e w sp a p er ( I n d u s t r i a l S e r i e s No. ^ 3 , U. S. D e p a r tm e n t o f Commerce, W a s h in g t o n , D. C . , n . d . ) , pp . 1 ? , 2 2 .

28 b e s t i n t h e way o f c o m m o d i t i e s , h a v e m e r c h a n t s who b e l i e v e who a r e w i l l i n g

is

a com m unity t h a t w i l l

i n a d v e r t i s i n g t h e i r g o o d s and

to pay a r e a s o n a b le p r i c e f o r new spaper

sp ace. E x a m in a tio n o f d a i l y n ew sp a p ers a lr e a d y p u b lis h e d in t h e a r e a h e l p s one t o know t h e co m m u n ity . ers,

T a lk s w it h bank­

l e a d e r s i n t h e c o m m u n ity , a n d r e p r e s e n t a t i v e b u s i n e s s

men g i v e a p i c t u r e o f t h e l o c a l i t y a n d i t s f u t u r e . I n a co m m u n ity w i t h e x i s t i n g n e w s p a p e r s , made c e r t a i n t h a t t h e l o c a l i t y i s o th e r new spaper.

la r g e enough to su p p ort an­

The p r e s e n c e o f c o m p e t i t i o n a l o n e i s n o t a

d isc o u r a g in g f a c t o r .

In th e new spaper b u s in e s s p a r t i c u l a r l y ,

c o m p e titio n I s a h e a lth y

stim u la tin g in c e n tiv e to p resen t

t h e new s m ore t h o r o u g h l y , i n an e f f i c i e n t

i t m u st be

to ca re f o r

th e a d v e r t i s e r s '

needs

and b u s i n e s s l i k e m a n n er , a n d t o s e r v e t h e

c o m m u n ity . C o m p e titio n a l s o

I s an e f f e c t i v e

poor w r it in g and e d i t i n g ,

gu ara n tee a g a in s t

slo v e n ly h e a d lin e s,

ob serve a r e g u la r hour o f g o in g to p r e s s ,

fa ilu r e

slo p p y p ressw ork ,

d isr e g a r d of th e le g it im a t e i n t e r e s t s o f a d v e r tis e r s , g en era l in d iffe r e n c e

to

and

t o w a r d t h e r e q u i r e m e n t s and e x p e c t a ­

t io n s o f p a tro n s o f th e paper.

When a p u b l i s h e r f a l l s

in to

a r u t and a d o p ts a p o l i c y o f c a r e l e s s n e s s and la c k o f c o n ­ s id e r a tio n fo r h is p a tro n s, descen t i s

lik e ly

he i s

to b e r a p i d .

on t h e d o w n -g r a d e a n d h i s

29 The L os A n g e l e s m a r k e t .

Why a new e v e n i n g n e w s p a p e r

f o r L o s A n g e l e s and t h e g r e a t S o u t h e r n C a l i f o r n i a m ark et? The r e a s o n s a r e b r o u g h t o u t fro m m a t e r i a l fr o m an o r i g i n a l p r e s e n t a t io n p rep ared by J . th e a d v e r t is in g

W a l t e r Thompson C o . , w h i c h w as

a g e n c y o f t h e T im es»

T h i s p r e s e n t a t i o n w as

made f o r O 'H ara and O rm sb ee, I n c . , w h ic h was t o

be n a t i o n a l

n e w s p a p e r r e p r e s e n t a t i v e f o r The M i r r o r . p s o u r c e s o f in f o r m a t io n w ere u t i l i z e d .

a d d itio n a l

T h i s w as n o t an i n s p i r a t i o n c is io n

A lso ,

o f t h e mom ent.

The d e ­

t o l a u n c h t h i s new p u b l i c a t i o n was r e a c h e d o n l y a f t e r

s e v e r a l y e a r s o f s t u d y o f t h e L os A n g e l e s m a r k e t an d o f e x ­ istin g

n e w s p a p e r s — and o n l y a f t e r

th o rou gh c o n s id e r a t io n

o f w h eth er S o u th ern C a l i f o r n i a i n t e r e s t s p r o v id e d a r e a so n f o r a n o th e r new spaper. To t h e p r o m o t e r s o f The M i r r o r , t h e a n s w e r w as c l e a r c u t a n d w a s b a s e d on t h e s e f a c t s : R eason 1 .

R e f l e c t i n g t h e c o n t i n u i n g m a ss m i g r a t i o n

o f tn e U n ite d S t a t e s p o p u la tio n w estw ard , p o p u la tio n has p a r iso n ,

soared ^ 2 .2 per c e n t

C a lifo r n ia 's 3 sin c e 19^0. I n com­

New Y ork g a i n e d 5 * 0 p e r c e n t ,

6 .0 per c e n t,

I l l i n o i s g a in e d

and P e n n s y lv a n ia g a in e d 6 . 1 p e r c e n t .

S t a t i s t i c s a re g iv e n a s a p p ly in g to t h e p e r io d o f tim e j u s t p r i o r t o t h e e s t a b l i s h m e n t o f th e p a p e r . ■^Estim ated a s o f J u l y 1 , B ureau.

1 9^ 7 b y t h e U.

S.

C e n su s

30

R eason 2 .

The b u l k o f t h i s

enorm ou s g r o w t h o f p e r ­

m anent r e s i d e n t s h a s b e e n i n L os A n g e l e s 4 ,0 3 9 * 5 2 6 p o p u la t io n ,

C ounty

w ith

now m aking I t A m e r i c a 1s t h i r d l a r g e s t

m a r k e t , a c c o r d i n g t o t h e L os A n g e l e s Chamber o f Commerce. R e a s o n 2* in r e t a i l

T h ir d i n p o p u l a t i o n ,

sa le s.

L os A n g e l e s i s

I n r e t a i l g r o w t h , Los A n g e l e s i s

second

fir s t.'

I n p e r c e n t a g e i n c r e a s e 1 9 4 7 o v e r 1 9 3 9 > Los A n g e l e s C ounty i s 2 5 1 . b6 p e r c e n t , Wayne C o u n ty ( D e t r o i t ) M ilw a u k e e C ou n ty 2 1 4 * 0 5 p e r c e n t , per c e n t,

2 2 6 .2 9 p e r c e n t,

B a l t i m o r e C o u n ty 2 0 7 * 9 1

and C uyahoga C o u n ty ( C l e v e l a n d )

R e ta il s a le s

1 6 2 .3 5 p e r c e n t .

i n t h e L o s A n g e l e s a r e a a r e now a t t h e r a t e

o f f o u r an d a h a l f b i l l i o n d o l l a r s a y e a r . R eason 4 .

Los A n g e le s i s t h e o n ly c i t y

S t a t e s w l t n a s many a s n i n e

in th e U n ite d £ “p r e d o m in a n t I n d u s t r i e s . ”

T h ese i n d u s t r i e s in c lu d e :

(1) a i r c r a f t (2)

a u to m o b ile a sse m b ly

(3)

o i l w e l l e q u ip m e n t

( 4 ) m o tio n p i c t u r e s (5 )

p e tro le u m r e f i n i n g

S a l e s M anagement 1 9 4 8 . ^ S a l e s M anagement 1 9 4 8 , C e n s u s o f B u s i n e s s T r a d e ) 1956."

(R e ta il

C e n s u s B u r e a u ' s d e f i n i t i o n f o r i n d u s t r i e s w i t h an an n u al p r o d u c tio n e x c e e d in g $2 5 , 0 0 0 , 0 0 0 .

31 (6 )

food p r o c e ssin g

(7)

rubber goods

(8 ) a p p a r e l c r e a t io n ( 9 ) f u r n i t u r e a n d w o o d w o r k in g R eason C a lifo r n ia ,

A c c o r d i n g t o t h e A l l - Y e a r C lu b o f S o u t h e r n

th e t o u r i s t t r a d e a n n u a lly i s

b u s i n e s s i n L os A n g e l e s .

a $ 5 0 0 ,000,000

A n other f a c t in c lu d e d h e r e i s t h a t

c a s h fa rm in c o m e o f L o s A n g e l e s C ou n ty i s $ 2 2 . 9 , 2 4 6 , 4 6 1 a 7 year. T h is l a t t e r f i g u r e i s t h e l a r g e s t o f any co u n ty i n th e U n ite d S t a t e s . R eason 6 .

B e t w e e n 19^0 a n d 1 9 4 7 , o v e r 8 0 0 m i l l i o n

d o l l a r s w ere i n v e s t e d in

in d u s t r ia l p la n t f a c i l i t i e s

a lo n e .

And U. S . D e p a r tm e n t o f Commerce f i g u r e s sh ow t h a t L os An­ g e l e s l e a d s t h e U n i t e d S t a t e s i n new home c o n s t r u c t i o n . F u rth erm ore,

L o s A n g e l e s C ou nty b a n k d e p o s i t s t o t a l t h e

t h i r d l a r g e s t in th e U n ite d S t a t e s . A co m p a riso n o f bank d e p o s i t s in

th e l e a d in g c o u n t r ie s

o f th e U n ite d S t a t e s and a c h a r t o f in d e x o f b u s i n e s s a c ­ tiv ity

i n S o u t h e r n C a l i f o r n i a a r e g i v e n on t h e n e x t p a g e . From t h e p r e c e d i n g s i x r e a s o n s ,

id e a o f th e su r g in g a c t i v i t y ,

t h e r e e m e r g e s an

th e s t a b ilit y ,

and t h e r i s i n g

n e e d f o r n e a r l y e v e r y k i n d o f g o o d s and s e r v i c e s

in th e

^ E s t i m a t e d f o r 1 9 4 7 b y t h e L os A n g e l e s C o u n ty A g r i ­ c u l t u r e C o m m issio n .

TABLE IV

III LEADING GGUNTIES OF

UNITED STATES

(thousands)

c hange

New York C i t y (5 Cook ( C h ic a g o ) Los A n g e le s P h ilad elp h ia S u f f o l k (BosLun) San F r a n c i s c o Nayne ( D e t r o i t ) CHART

INDEX

BUS II

SOUTHERN Ca l i f o r n i a

The above b u siness a s follow d eb its, 7 iphon e it i o n S;

our c e

cu rity

i ght.ejd..,i : M h a ^ d - L j h i l j j s i e i a , s one T hese s e r i e s , w i t h t h e i r u e r e e h t a g i g e l e s bankj d e b i t s , 20; r e s i d e n t i a l t u r a l c i t y b a n kj d e b i Ita 1 ^ ;‘:h a i I v oa. u s e , 7; d e p a r t m e n t s t o r e s a l e s , 15 new I n d u s t r i a l e m p lo y in e n t, 15; I n d u s t r ; and] r e a l e s t a t e a c t i v i t y , 3 Bank

Den art.t

urne

33 g r e a t l y e x p a n d in g Los A n g e le s m a rk et. p e o p le in

th e a r e a ,

R e a so n £ .

In reg a rd to

th e

" R e a so n ? H i s g i v e n .

W ith 83 p e r c e n t n a t i v e b o r n ( U . S . ) w h i t e s ,

t h e p o p u l a t i o n c h a r a c t e r i s t i c s o f L os A n g e l e s c o u n t y make t h i s m arket d i f f e r e n t from any o t h e r in th e c o u n t r y . l y a r r i v e d fro m o t h e r s e c t i o n s o f t h e c o u n t r y ,

Large­

th e c i t i z e n s

a r e "new." T h at i s w hy, A n g e le s m ark et,

i n a n a l y z i n g t h e p e o p l e i n t h e L os

r e p r e se n ta tiv e s o f J.

a le a d in g a d v e r tis in g agency, — The c i t y

is

"young"

W a l t e r Thompson C o .,

p o in t out —

in p o p u la tio n .

— T h o u sa n d s o f v i g o r o u s y o u n g p e o p l e h a v e come h e r e i n th e p a s t few y e a r s . -— E ven t h e " old " f a m i l i e s a r e new — t h e r e a r e f e w seco n d o r t h i r d g e n e r a t io n A n g ele n o s. — The p e o p l e a r e "young" i n t o t r y s o m e t h i n g new .

s p i r i t — r e a d y and w i l l i n g

— The s p i r i t o f "chan ge" i s s t r o n g — t h e p e o p l e want p r o g r e s s — a r e e a g e r t o t r y new t h i n g s — t a k e r e a d i l y t o new i d e a s . R eason 8 .

S e r v i n g ^ ,0 3 9 > 5 2 6 p e o p l e i n L o s A n g e l e s

C o u n t y ,^ w h ic h i s more t h a n t h e 3 > 9 0 3 * 0 0 0 i n S t . L o u i s and 9 t h e w h o le s t a t e o f M i s s o u r i , th e r e w ere fo u r m e t r o p o lit a n n e w s p a p e r s w h o se c o m b in e d c i r c u l a t i o n had f a i l e d pace w ith th e r i s e

in p o p u la tio n .

to keep

A chart of th is r e la tio n ­

s h i p i s g i v e n a t th e t o p o f th e n e x t p a g e .

8

L o s A n g e l e s C ou n ty R e g i o n a l P l a n n i n g C o m m issio n .

^ B u rea u o f t h e C e n s u s — J u l y 1 , 1 9 ^ 7 e s t i m a t e .

CHART IV

3A

i t I I { 1T j 1| "i | ; I i 1 'I I ?T' 11 H I "l '■j 1L

j ! j f * {'• r {' H~•

M' I [ Tt I i j I t"H r t t— " i'T I I ' i I

POPULATION & USTROPOLITAN NEWSPAPER CIRCULATION OF L.A. COUNTY

p o p u la tio n

ion

w ith b e tw e e n c i r c u l a t i o n

hows popu

■igtrbpglifcarj :• g b m b ih e d

■N ew spa pers

••I • :i • I'

C i r c u l a t io n

• '; I

779572 911

m m

t t a n Boroiigh)

Bureau 6 f C i r c u l a t w i t h i n the

l a t e s t Auc[It

stab li ^ tate

U I 1H

from

lim its Newspane

h3:5 :3 2:3 142 .

June

35 I n a tte m p tin g

to c l o s e

th e gap b etw een c i r c u l a t i o n

and p o p u l a t i o n L os A n g e l e s n e w s p a p e r s h a v e t r i e d t o b e a l l t h i n g s t o a l l p e o p l e w i t h t h i s r e s u l t i n t h e o p i n i o n o f The M ir r o r p r o m o t e r s .

E ith e r ,

in th e e f f o r t to c o v e r a l l th e

S o u th la n d 's v a r ie d i n t e r e s t s , b een too g e n e r a l; derou s in

or,

c o v e r a g e o f l o c a l new s h a s

n e w s p a p e r s h e r e h a v e b ecom e so p o n ­

h a n d lin g th e news t h a t t h e y l a c k i n t e r e s t f o r t h e

average rea d er. T h is a n a l y s i s p o rten d ed n o t o n ly th e n eed f o r a n o th er L os A n g e l e s n e w s p a p e r ,

b u t t h a t t h e need, was d e f i n i t e l y i n

th e e v e n in g f i e l d . (L o s A n g e l e s ABO C i t y Zone)

8 0 8 , 811 *

F a m ilie s E v e n in g c i r c u l a t i o n H e r a l d - E xp re s s

3 1 5 ,4 9 9

ews (E v e n in g E d it i o n s )

1 9 1 ,1 4 8 5 0 6 ,5 9 7 * *

F a m i l i e s n o t r e a d i n g a Los A n g e l e s e v e n i n g n e w s p a p e r .....................................

3 0 2 ,2 1 4

P l u s an u n d e t e r m i n e d number of fa m ilie s d is s a t is f ie d w it h th e p r e s e n t e v e n in g n ew spapers.

^ R e g i o n a l P l a n n i n g C o m m iss io n , J a n u a r y , P u b l i s h e r ' s S t a t e m e n t , M arch 3 1 , 1 9 4 8 .

1948.

36 R eason

F u r t h e r p r o o f t h a t a new e v e n i n g n e w s p a p e r

w as a n a t u r a l f o r L o s A n g e l e s l a y i n t h e t i m e d i f f e r e n t i a l b e t w e e n E a s t a n d W e s t.

T h i s a f f o r d s an u n r i v a l l e d o p p o r ­

t u n i t y t o p r i n t c o m p l e t e n ew s f o r e v e n i n g

c o n su m p tio n .

EXAMPLE A

JJ • U U

noon Los A n g ele s

Jr * r i *

New Y ork

When t h e New Y ork S t o c k M ark et c l o s e s it

a t 3 : 0 0 P.M. >

i s n oon i n L o s A n g e l e s . EXAMPLE B

8 ; 0 0 P.M. ^London

1 1 : 0 0 P.M. Moscow

Time d i f f e r e n t i a l s b e t w e e n E u r o p e a n c a p i t a l s

(a s w e ll

a s t h e E a s t C o a s t ) a n d Los A n g e l e s p e r m i t f u l l c o v e r a g e o f t h e o u t s t a n d i n g new s o f t h e w o r l d t o r e a c h e v e n i n g

readers

on t h e same d a y . O th e r m o t i v e s f o r e s t a b l i s h i n g m en tio n e d i n t h e n e x t c h a p t e r .

th e p u b l i c a t i o n a re

CHAPTER IV

PRECEDENT PLANS AND INITIAL PROMOTION CAMPAIGN Precedent p la n s♦

The m anagem ent o f t h e T i m e s - M i r r o r

Company, p a r e n t c o r p o r a t i o n o f The M i r r o r , h ad b e e n s e r i o u s ­ l y c o n sid e r in g

th e p o s s i b i l i t y o f sp o n so rin g a n o th e r paper

in th e e v e n in g f i e l d

i n L o s A n g e l e s a s f a r b a c k a s 1 9 3 5> a n d

p ro b a b ly e v e n e a r l i e r .

T h is was e v i d e n c e d b y a dummy o f The

M ir r o r b e a r i n g a d a t e i n 1 9 3 5 > w h i c h w as e x a m in e d b y t h i s in v e stig a to r . To i n d i c a t e t h e g e n e r a l p o l i c y o f t h e m anagem ent o f t h e T i m e s - M i r r o r Company i n i t s

p la n s f o r su ch ex p a n sio n ,

an e x c e r p t fro m a s p e e c h g i v e n t o t h e e m p l o y e e s o f t h e com­ p a n y on D ecem b er 2 k , 1 i s q u oted h ere:

1 9 ^ 8 , b y Norman C h a n d le r , p r e s i d e n t ,

11. . .O u r company h a s n o t y e t c o m p l e t e d i t s e x p a n s i o n p ro g ra m a n d I h o p e i t n e v e r w i l l . . . . Your company c o u ld n ot sta n d s t i l l . I t c o u ld n o t be s a t i s f i e d w it h w h at i t had sm u g ly i n i t s g r a s p . Had m anagem ent r e ­ m a in e d p a s s i v e a n d c o n t e n t , a g g r e s s i v e c o m p e t i t o r s w o u ld have e n t e r e d t h e f i e l d a n d o u r seem in g s e c u r i t y b een c h a l l e n g e d and o u r p r o f i t s r e d u c e d . V i s i o n f o r expan­ s i o n i n t o new p r o j e c t s s u c h a s t e l e v i s i o n , t h e n e w s­ p r i n t m i l l and an a f t e r n o o n n e w s p a p e r w as t h e o n l y way t o c o n t i n u i n g s u c c e s s and e v e n t u a l l y f o r b i g g e r i n ­ com e. . . . 11

Taken fr o m a r e p r i n t o f a C h r i s t m a s g r e e t i n g s s p e e c h d e l i v e r e d b y Norman C h a n d l e r , p r e s i d e n t o f t h e T im e s - M i r r o r Company. The s p e e c h w a s d e l i v e r e d t o company e m p l o y e e s a s ­ s e m b le d i n t h e T im es B u i l d i n g a u d i t o r i u m , D ecem b er 2 k , 19k8»

38 P r i o r t o t h e e s t a b l i s h m e n t o f The M i r r o r , ru m o rs had been r i f e

c o n c er n in g

th e

en tran ce o f p u b lis h e r s su ch as

H enry Luce ( T i m e - L i f e m a g a z i n e s ) , M a r s h a l l F i e l d Sun- T i m e s , e t c . ) *

C o w le s B r o s .

(D e s M o in e s R e g i s t e r T r i b u n e ,

a n d Look m a g a z i n e ) , Jo h n K n ig h t an d o t h e r s i n t o g e l e s m arket t o

( C h ic a g o

s t a r t an a f t e r n o o n p a p e r .

t h e L o s An­

D u rin g a tim e b e ­

t w e e n 1 9 3 9 &rd 1 9 ^ 0 , i t w as t h o u g h t t h a t L u ce i n t e n d e d t o make t h e I n d e p e n d e n t , w h i c h s e r v e s o u t l y i n g c o m m u n i t i e s s u c h Long B e a c h a n d P a s a d e n a ,

i n t o a Los A n g e le s a f t e r n o o n p a p er.

H ow ever, w i t h t h e w ar on t h i s

i d e a w as t e m p o r a r i l y s h e l v e d .

When Korman C h a n d le r w a s i n E n g la n d i n 19^1* w h ere th e r e a r e s e v e r a l s u c c e s s f u l t a b l o i d new spapers p u b lis h e d , h e d e t e r m i n e d t h e n t h a t t h e T i m e s - M i r r o r Company s h o u l d pub­ l i s h an a d d i t i o n a l a f t e r n o o n p a p e r i n L os A n g e l e s when w ar­ r a n te d and t h a t i t

sh o u ld be a t a b l o i d .

P r i o r t o The M i r r o r ,

t h e r e w e r e no t a b l o i d p a p e r s i n L os A n g e l e s .

The D a l l y

News i s b i g g e r t h a n a t a b l o i d t o g e t i n an e x t r a l i n e v e r tisin g .

It

o f ad­

i s m ore o r l e s s b e t w e e n " s t a n d a r d " a n d t a b l o i d

siz e . T h er e f o l l o w e d f i v e

y e a r s o f a n a l y s i s and p la n n in g in

w h ic h su ch f a c t s a s b r o u g h t out i n c o n sid e r e d .

I t w as f e l t

room f o r a n o t h e r p a p e r , sta n d p o in t.

th e p r e v io u s c h a p te r w ere

t h a t b e s id e s th e r e b e in g p h y s ic a l t h e r e w as a l s o room fr o m an e d i t o r i a l

I t w as t h e o p i n i o n o f R o b e r t H a l l ,

c a lle d in as

e x p e d i t e r t o The M ir r o r managem ent i n 19^8* t h a t t h e Hews

39 w as s l a n t e d t o w a r d s l a b o r and " W a l l a c e i t e s , 11 a n d t h e H e r a ld r e v e le d In s e n s a t io n a lis m

and b a w d in e s s .

The T i m e s - M i r r o r

Co. was c o n v i n c e d t h a t L o s A n g e l e s n e e d e d a new k i n d o f a f ­ tern o o n new spaper. As f o r "what k in d "

t h e p a p e r w as d e s i g n e d w i t h t h e

h e l p o f e x t e n s i v e s u r v e y s made by D r . G-eorge G a l l u p t o e l i m ­ in a te

" w a ste"

in

e d it o r ia l sp ace.

to be w e ll-b a la n c e d w ith i t s of in te r e st

The M ir r o r w as d e s i g n e d

c o lu m n s f i l l e d w i t h m a t e r i a l

t o men, women, a n d c h i l d r e n .

g i l P in k le y ,

A c co r d in g to V ir ­

t h e e d i t o r a n d p u b l i s h e r o f th e p a p e r ,

i t w as

d e s i g n e d p r i m a r i l y f o r an a g e g r o u p b e t w e e n 1 5 a n d 4 5 y e a r s o ld ,

a n d f o r an in c o m e g r o u p o f b e t w e e n 5 0 a n d 1 5 0 d o l l a r s

p e r w eek.

T h e s e a r e t h e m o st p r e d o m in a n t r e a d e r s i n t h e

a ftern o o n f i e l d . T h r o u g h t h e s u r v e y s made,

it

w as f o u n d t h a t m o st o f

t h e r e a d e r s i n t h i s c o m m u n ity l i k e p i c t u r e s w i t h p u n c h , p lic ity

s im ­

o f w r it in g and f e a t u r e s t h a t are b r ig h t and o r i g i n a l .

F o r t h e s e r e a s o n s The M i r r o r w as t o b e a l e r t , an d p r o g r e s s i v e ;

a g g r e ssiv e ,

and d e s i g n e d , fr o m t h e g r o u n d u p ,

A n g ele s and C a lif o r n ia .

I t w as d e t e r m i n e d a l s o

f o r L os

t h a t th e

p e o p l e o f t h e com m unity w o u l d s u p p o r t a f i g h t i n g n e w s p a p e r , o n e t h a t w as y o u n g , w an ted s p e e d ,

d y n a m ic and c o u r a g e o u s .

a c t i o n and i d e a s .

The p u b l i c

To c o n fo r m t o

t h e s e d e m a n d s,

t h e p o l i c i e s a n d c o n t e n t o f t h e p a p e r w ere to b e s h a p e d

a c c o r d in g ly . It

sh o u ld be m en tio n e d a t t h i s p o i n t ,

t h a t when th e

s u r v e y w a s c a r r i e d on i n L o s A n g e l e s a n d S o u t h e r n C a l i f o r n i a on "what k i n d o f a n e w s p a p e r do t h e p e o p l e w a n t ? ” t h e r e w as no m e n t io n o f The M ir r o r made. In Sep tem b er,

1946,

c o n s t r u c t i o n w as b e g u n on a

h e i g h t - l i m i t b u i l d i n g a t S e c o n d an d Spring; S t r e e t s , i n g t h e T im es B u i l d i n g .

a d jo in ­

F o r many m o n th s Los A n g e l e s and

T im es e m p l o y e e s s p e c u l a t e d on t h e r e a s o n f o r t h i s new d e ­ v e lo p m e n t.

M anagement l e t

in g a t e l e v i s i o n

t h e rum or o u t t h a t i t wa.s s t a r t ­

o p e r a tio n , and even w ent to

s e t t i n g up a ph on y p l a n .

th e e x t e n t o f

T h i s p o s e was s o g o o d t h a t i t

even

f o o l e d t h e b u i l d i n g c o n t r a c t o r s a n d t h e t e l e p h o n e com pany. T h i s s e c r e t xvas k e p t i n o r d e r t o k e e p o t h e r p a p e r s fro m t a k i n g o p t i o n s on s y n d i c a t e d m a t e r i a l s a n d a l s o t o p r e s e r v e th e e le m e n t o f s u r p r is e f o r th e p u b l i c . In th e

s p r i n g o f 1947*

comrjosed o f e i g h t p e o p l e and p u b l i s h e r , e r a l m anager,

a b u i l d i n g c o m m i t t e e w as fo r m e d

i n c l u d i n g Norman C h a n d le r , p r e s i d e n t

and P h i l i p C h a n d le r , v i c e p r e s i d e n t a n d g e n ­ o f t h e T im e s - M ir r o r Company.

A se r ie s of

m e e t i n g s w e r e h e l d b y t h e c o m m it t e e t o c o n s i d e r e q u ip m e n t , p e r so n n e l,

2

o ffic e

la y o u t,

and o th e r o r g a n i z a t i o n a l p ro b lem s.

Taken f r o m s t a t e m e n t s by Norman C h a n d le r and. V i r g i l P i n k l e y i n a b r o c h u r e o f The M i r r o r , n . d .

P h o t o OF MFHER i RL from o r ig in a l p r e SENTHTIOM FOR HDV.

RGENCY-ByT>omRBvER (b\ PERMlSSlOw)

.

T lx M ir rors nen borne. over 5 years of planning

ty ive are creating

A NEW EVENING NEWSPAPER for LOS ANGELES --- Los

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OUR BPSIC T H IN K IN G H R S BEEN S P R R K P lUGGEP b y THE WORD RCTION J "

R ngeues,

HmEFOCR'S T H IR D LRRGEST MARKET,

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E D \T O R RND PUBLISHER, TH E M IR R O R

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ttP tlS I N T I D ST O 'M A IA * OSMSBCC. INC. • NIW TO«K • CMtCAOO • OETIOIT • SAN HAMCISCO

A2 In th e f a l l

o f 19^7* J o h n A ndre s o n , r i g h t hand man

t o P h i l i p C h a n d le r , w as a s h e d b y t h e t h e a g e n d a f o r t h e new n e w s p a p e r . F errar,

c o m m it t e e t o p r e p a r e

I n c o o p e r a t i o n w i t h G-il

a n a t i o n a l l y fa m e d c o n s u l t i n g t y p o g r a p h e r l i s t e d

i n Who1s Who, Mr. A n d r e s o n d e c i d e d on t h e fo rm a t f o r th e p a p er.

tio n e r y ,

t h e number o f p a g e s ,

e tc ,.

o f ty p e and

Among o t h e r t h i n g s c o n s i d e r e d b y t h e

co m m ittee a t t h i s tim e w ere t h e s e t t i n g c o p y r ig h t,

sty le

o f th e p r i c e ,

t h e m a s th e a d d e s i g n ,

th e sta ­

C o n f e r e n c e s w e r e h e l d w i t h t h e m a n a g in g e d i t o r

and a d v e r t i s i n g

d i r e c t o r o f th e T im es, and th e c o m p t r o lle r

o f t h e T i m e s - M i r r o r Co.

to e s t a b l i s h d ep a rtm en ts,

r a tes,

and b u d g e t it e m s . I n N ovem ber o f 1 9 ^ 7 > V i r g i l P i n k l e y , who w as i n Eng­ l a n d a t t h e t i m e a n d known b y t h e C h a n d l e r s ,

w as s e l e c t e d

b y t h e T i m e s - M i r r o r Co. t o b ecom e e d i t o r a n d p u b l i s h e r o f The M i r r o r . and p r io r

Mr. P i n k l e y w a s o r i g i n a l l y fr o m L o s A n g e l e s

t o The M ir r o r a s s i g n m e n t w as v i c e - p r e s i d e n t and

E u ro p ea n c h i e f o f t h e U n i t e d P r e s s . l i c i t e d b y C o w le s B r o s ,

He h ad a l s o b e e n s o ­

and o th e r s w it h a s im ila r o f f e r .

When he a r r i v e d i n L o s A n g e l e s i n J u n e , 1 9 ^ 8 ,

to a s ­

sume t h i s p o s i t i o n he w a s g i v e n f u l l a u t h o r i t y o v e r a l l d e ­ p a r t m e n t s o f The M ir r o r e x c e p t p r o d u c t i o n . w h ic h a l s o

T ills d e p a r tm en t,

s e r v e s t h e T i m e s , w as p l a c e d u n d e r a d o u b l e l i a i ­

s o n a r r a n g e m e n t w i t h Mr. M ir r o r w as t o

P i n k l e y and P h i l i p C h a n d le r .

The

be a c o m p l e t e l y s e p a r a t e n e w s p a p e r fro m t h e

T im es, h o u sed i n i t s

own p l a n t — t h e new h e i g h t - l i m i t

b u i i a .I n g — a n d w i t h i t s

own s t a f f

and o r g a n i z a t i o n .

T h is

w as w i t h t h e e x c e p t i o n o f t h e p r o d u c t i o n d e p a r t m e n t a n d c e r ­ t a i n o t h e r s t a f f f u n c t i o n s w h ic h w i l l be d i s c u s s e d in a l a t e r ch a p ter. W ith t h e a d v e n t o f Mr. P i n k l e y , th e p ap er w ere w orked o u t .

R obert 0 .

in p u b lis h in g n ew sp ap ers in P h o e n ix ,

th e f i n a l d e t a i l s

of

K a li, fo r m e rly a c t iv e A r i z o n a and F o r t Wayne,

I n d i a n s , , w as c a l l e d i n a s g e n e r a l a s s i s t a n t and e x p e d i t e r t o Mr. P i n k l e y .

Mr.

H a l l w as t o

a s s i s t in g e t t i n g th e paper

p u b lis h e d and h a n d le d su c h d u t i e s a s h i r i n g , tisin g p e r io d ,

co n tra cts,

c i r c u l a t i o n and p r o m o t i o n .

se c u r in g adver­ D u r in g t h i s

t h e num ber o f e d i t i o n s and e d i t o r i a l d e a d l i n e had

t o be s e t . At t h a t tim e , w it h th e i n i t i a l p u b lis h in g d a te j u s t a fex-vr m o n th s o f f ,

t h e m o s t i m p o r t a n t m a t t e r a t h a n d w as t o

make s u r e t h a t t h e p a p e r w o u ld s e l l .

C o n se q u e n tly , an ad­

v e r t i s i n g a g e n c y had t o b e s e l e c t e d .

In t h i s

c e r t a i n q u a l i f i c a t i o n s had t o be m et.

s e le c tio n ,

The a g e n c y had t o b e

a b l e t o h a n d l e an a d v e r t i s i n g p r o m o t i o n c a m p a ig n e f f e c t i v e ­ ly ;

a n d t h e a g e n c y h ad t o b e one t h a t c o u l d b e t r u s t e d , b e ­

cause of th e s e c r e c y in v o lv e d . The f i n a l d e c i s i o n w as t o agency a t

th a t tim e,

J.

s e l e c t t h e T i m e s * own

W a l t e r Thompson Company.

I n i t i a l p r o m o tio n c a m p a ig n *

I n t h e p r o m o t i o n cam­

p a i g n to l a u n c h t h i s new e v e n i n g n e w s p a p e r , w as made o f a s e r i e s

s p e c ta c u la r use

o f fl t e a s e r ” b i l l b o a r d a d v e r t i s e m e n t s

com m encing f o u r w e e k s p r i o r t o p u b l i c a t i o n .

T hese b i l l b o a r d

a d v e r t i s e m e n t s b e ca m e p r o g r e s s i v e l y r e v e a l i n g th e p u b lic a tio n

d a t e w as a p p r o a c h i n g .

e a c h w e ek a s

E x a m p le s o f t h e s e

a d s a r e shown on t h e n e x t p a g e . In a d d itio n to th e s e p r e -p u b lic a tio n b illb o a r d ads, ra d io

s p o t an n ou n cem en ts a n d a n im a te d t e l e v i s i o n

m en ts, b o t h o f th e

11t e a s e r ” t y p e ,

w e re r u n .

announce­

A lso ,

t h e r e w ere

o th er ty p es o f c o lo r f u l s p e c ia l e v e n ts p r io r to p u b lic a tio n a r r a n g e d t o make a l l L o s A n g e l e s M i r r o r - c o n s c i o u s . w e re a l l d e s i g n e d t o th is

set

T h ese

t h e s t a g e f o r w id e a c c e p t a n c e o f

new k i n d o f n e w s jja p e r . A t t h e sem e t i m e ,

s a l e s l u n c h e o n s and I n f o r m a l d i n ­

n e r s w e r e p r o v i d e d b y t h e m anagem ent f o r p r o s p e c t i v e a d ­ v e r tise r s. When t h e f i r s t e d i t i o n o f t h e p a p e r h i t t h e s t r e e t on Monday, O c t o b e r 1 1 , e r y w as p u t I n t o g e a r .

19^3,

a d d i t i o n a l p r o m o t i o n a l m a c h in ­

T w e n ty -fiv e g i r l s

on a b a t t e r y o f

t e l e p h o n e s com m enced c a l l i n g p e o p l e a t random and o f f e r i n g a w e e k 1s f r e e

s u b s c r ip tio n

t o The M i r r o r .

F ifte e n to

t h o u s a n d p e o p l e w ere c a l l e d and 8 , 0 0 0 w e re g i v e n T h o u sa n d s o f o t h e r p e o p l e w e r e l e f t e r s d u rin g th e f i r s t few d a y s a l s o .

tw en ty

th e p ap er.

f r e e c o p i e s by d e l i v e r ­

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you SEE?

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4 lh

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3 rd w e e k p r io r to p u b lic a tio n

FROM T d P T Q B D T T D M OF PHOTD FIRE 5HDWN EXFIMPLEE DF *TEREER"BILLBCIPRD RD5 RUN 4 t h , 3 r d , 2 n d . FIND 1s t WEEK PRIOR TO PUBLICRTION, RESPECTIVELY. G -,„„ ...... )

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galore! I I dynamic v »

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THE MIRROR 2n«l u eel* p r io r to p u h ilitJ lu

THE

7 2 n d w e e k p r i o r t o p u b l i c a t i«

ind of newspaper

l* t w e e k p r io r to p u b li,

l i t w ee k p rio r to p u b lic a tio n

R a d io s p o t a n n o u n c e m e n t s a n d a n i m a t e d t e l e v i s i o n an' n ou n cem en ts w ere c o n t in u e d a f t e r p u b l i c a t i o n tr a ile r s

t o l d The M ir r o r s t o r y ,

a n d m o v ie

in t h e Los A n g e le s m ark et.

A m a jo r p r o m o t i o n a l f e a t u r e

to a t t r a c t a d v e r t is e r s

w as t h e e x c e p t i o n a l l y r e a s o n a b l e r a t e g u a r a n t e e o f f e r e d t o a d v e r t i s e r s d u r in g th e f i r s t

s i x m o n th s o f p u b l i c a t i o n .

T h i s w i l l b e d e s c r i b e d m ore c o m p l e t e l y i n a s u c c e e d i n g ch a p ter. L a ter p r o m o tio n a l a c t i v i t y w i l l be l e f t

fo r d isc u s­

s i o n i n c o n n e c t i o n w i t h t h e p r o m o t io n d e p a r t m e n t o f The M ir r o r ,

its e lf.

CHAPTER V

FINANCING AND PLANT REQUIREMENTS As a n o t e o f e x p l a n a t i o n b e f o r e b e g in n in g t h i s chap­ t e r and th e n e x t c h a p te r , to th e c o m p e t it iv e f i e l d

it

s h o u l d b e p o i n t e d o u t t h a t due

of th is

e n te r p r ise ,

th e T im es-

M i r r o r Company m anagem ent d e c l i n e d i n m o st i n s t a n c e s t o r e ­ v e a l any f i n a n c i a l f i g u r e s p e r t a i n i n g M ir r o r d i v i s i o n

a lo n e *

H ow ever,

s p e c ific a lly

t o The

t h e m anagem ent w a s e x t r e m e ­

l y c o o p e r a t i v e i n a l l o t h e r r e s p e c t s and s u p p l i e d a c c o u n t in g s t a t e m e n t s f o r t h e com pany a s a w h o l e . C o n se q u e n tly ,

th e

ta sk o f o b ta in in g

such d e s ir e d in ­

f o r m a t i o n b e f e l l t h e i n v e s t i g a t o r who r e s o r t e d t o v a r i o u s m eans t o p r o c u r e i t .

The i n f o r m a t i o n t h u s o b t a i n e d c a n n o t

be r e p r e s e n t e d a s b e in g e n t i r e l y a c c u r a t e or c o m p le te , is

s u ita b le fo r i ll u s t r a t i v e pu rp oses. F i n a n c i n g an d o w n e r s h i p a s p e c t s .

any e n t e r p r i s e , is

but

o n e o f t h e f i r s t d e c i s i o n s t h a t m ust b e made

t h e m e th o d o f r a i s i n g

th e f i r s t

th e n e c e s s a r y fu n d s t o t i d e

few y e a r s o f o p e r a tio n .

by th e s a l e

o f common s t o c k ,

o r by r e s o r t i n g

over

T h i s may b e s - c c o m p li s h e d

p referred sto c k ,

s h o r t - t e r m o r lo n g - t e r m b o r r o w in g ; m eth od s,

At t h e i n c e p t i o n o f

b o n d s ; by

a c o m b in a tio n o f t h e s e

t o o t h e r known m eans o f f i n a n c i n g .

I n a n e w ly o r g a n i z e d e n t e r p r i s e

sound f i n a n c i a l p la n n in g

sta n d s a s a key to s u c c e s s f u l b u s in e s s o p e r a tio n s .

^8 I n t e r m s o f an a c c o u n t i n g b a l a n c e s h e e t ,

on one

s id e are th e a s s e t s and oh th e o th e r s id e are th e e q u i t i e s c o m p o se d o f t h e l i a b i l i t i e s

and o w n e r sh ip c a p i t a l .

su prem e t a s k a n d o b j e c t i v e o f m anagem ent i s b a la n c e s y m b o lic a lly and in r e a l i t y . an im p a i r m e n t o f c a p i t a l ,

and,

if

The

to keep th ese

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Any i n e q u a l i t y m eans

th e c o n d itio n p e r s i s t s ,

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s h o r t - t e r m d e b t may b e t h e c a u s e o f s e r i o u s t h e am ount and l i q u i d i t y

n o t s u f f i c i e n t t o m eet t h e o b l i g a t i o n s . m en ts f o r

th e liq u id a t io n

b u rd en so m e i n t h e l i g h t

E x a c tin g r e q u ir e ­

o f l o n g - t e r m d e b t may p r o v e t o b e

o f l a t e r u n fo r e s e e n d e v e lo p m e n ts.

The fo r m o f p r o p r i e t o r s h i p c a p i t a l i s 2 i n m a t t e r s o f m anagem ent p o l i c y . The M i r r o r ,

o f th e a s s e t s a re

as a d i v i s i o n

o fte n a r u lin g fo r c e

o f t h e T i m e s - M i r r o r Com­

p a n y , w as f i n a n c e d o u t o f t h e g e n e r a l c o r p o r a t e f u n d s p l u s sh o r t-te r m bank n o t e s .

A f t e r th e p a p er b e g a n o p e r a t in g ,

lo n g -te r m bank n o t e s w ere s u b s t i t u t e d f o r th e

sh o rt-term

bank n o t e s o u t s t a n d in g and a d d i t i o n a l lo n g -te r m bank lo a n s w ere a r r a n g e d t o f i n a n c e

i n i t i a l o p e r a t in g e x p e n s e s and

c o s t s . **

W. H. H usband a n d J . C. D o c k e r a y , Modern C o r p o r a t i o n F in a n c e (C h ic a g o : R i c h a r d D. I r w i n , I n c . , 1 9 ^ 8 ) , p . l6 $ h ^ I b i d ., p.

12^.

-^See e x p l a n a t o r y n o t e n o . n ext ch a p ter.

9 o f b a la n c e

s h e e t in th e

^9 The p a r e n t com pany I s e s s e n t i a l l y a f a m i l y - h e l d c o r ­ p o r a t io n and a s su ch f o s t e r s a c l o s e - h o l d i n g , o w n in g p o l i c y *

H ence,

p ro p erty -

The M ir r o r w a s n o t i n c o r p o r a t e d s e p ­

a r a t e l y and f i n a n c e d by s e c u r i t i e s o f f e r e d to

th e p u b lic*

R a th e r , t h e f i n a n c i n g was a r r a n g e d p a r t l y by su c h bank lo a n s d e s c r i b e d made t o t h e T i m e s - M i r r o r Company, b a s e d on i t s r e p u t a t i o n a s a s u c c e s s f u l b u s i n e s s o r g a n i z a t i o n a n d on t h e v a lu e o f i t s

e x is tin g a s s e ts .

C a p ita l r eq u ire m en ts. amount o f money f o r t h e

I t t a k e s an o v e r w h e lm in g

i n i t i a l o u t la y f o r ev en a sm a ll

d a i l y n e w s p a p e r , and t h e b e g i n n e r serv e fu n d .

W hether a p a p e r i s

or purchased a s a g o in g con cern , c ie n t siz e sa te

s t a r t e d from t h e g r o u n d up i n i t i a l p a y m e n ts o f s u f f i ­

to p r o t e c t th e c r e d it o r s are r e q u ir e d to

them i f

l a t e r p aym en ts c a n n o t b e m et, o r i f

n e s s r u n s down* b u sin e ss,

sh o u ld have a la r g e r e ­

com pen­

th e b u s i­

T h is

g u a ra n tee i s r e q u ir e d in a l l l i n e s k and n e w s p a p e r s a r e no e x c e p t i o n .

of

The m a j o r p a r t o f t h e i n i t i a l I n v e s t m e n t r e q u i r e d I s fo r tn e b u ild in g ,

if

c o n s t r u c t in g o r b u y in g .

c o n s t it u t e s th e next s iz a b le tio n

in v e stm e n t.

E q u ip m e n t

E q u ip m en t i n s t a l l a ­

Is e x p e n siv e a ls o b e c a u se heavy p r e s s e s r e q u ir e s o l i d

fo u n d a tlo n s.

I f n e ith e r c o n s tr u c tin g nor b u y in g ,

th ere i s

D ix o n D o n n e l l e y , E s t a b l i s h i n g and O p e r a t i n g a W eek ly N e w sp a p e r ( I n d u s t r i a l S e r i e s No. , U. S . D e p a r tm e n t o f Commerce, W a s h i n g t o n , D . C . , n * d * ) , p* 6 .

50

t h e m a t t e r o f " b u ild in g r e n t a l c o s t *

B e fo r e b e g in n in g op era­

t i o n s t h e r e m u st b e on h a n d a s t o c k o f p a p e r ,

In k,

m e t a l , a n d o t h e r raw m a t e r i a l s *

n ew s s e r v i c e

t e l e t y p e m a ch in es tio n s b e g in .

(ren ted ),

e tc .,

In a d d itio n ,

typ e

m u st b e i n b e f o r e o p e r a ­

P r o v is io n s to o b ta in a l l

th ese

made i n a d v a n c e w i t h t h e c o s t s b u d g e t e d i n t o

i t e m s m u st be th e i n i t i a l

in ­

v estm en t r eq u ire m en ts. The c o s t o f t h e M i r r o r B u i l d i n g a l o n e a m o u n te d t o § 5 * 8 3 0 ,0 0 $ a c c o r d in g Company b a l a n c e

t o a D ecem ber 31*

sh eet l i s t e d

C oast S e c u r i t i e s , 19^8. c o n sid e r a tio n th a t t h i s th e lo w e r f i v e fiv e

T im es-M irr o r

i n W alker* s M anual o f P a c i f i c

Of c o u r s e , is

19^7>

it

m ust b e t a k e n i n t o

a te n -s to r y b u ild in g ,

f l o o r s a r e o c c u p i e d b y The M i r r o r .

have b e en r e n t e d f o r o f f i c e s o f

b u t o n ly The u p p e r

the S t a t e o f C a l i f o r ­

n i a and a r e a d m i n i s t e r e d b y t h e I n v e s t m e n t D i v i s i o n o f t h e T i m e s - M i r r o r Company, w i t h t h e d e r i v e d r e v e n u e g o i n g t o t h e com pany.

The p r o p e r t y on w h i c h t h e b u i l d i n g w as c o n s t r u c t e d

was p r e v i o u s l y p a r t o f t h e r e a l e s t a t e

h o l d i n g s o f t h e com­

pany . The i n v e s t m e n t i n r e se n ts a siz a b le

sum.

e q u ip m e n t f o r The M i r r o r a l s o r e p ­ As s t a t e d p r e v io u s ly ,

a n d t h e L os A n g e l e s T im es b o t h u t i l i z e D epartm en t w h ic h i s b u ild in g s.

H o w e v er ,

The M ir r o r

t h e same M e c h a n i c a l

l o c a t e d b e tw e en and a d j a c e n t to b o th t h e i n v e s t m e n t i n m e c h a n i c a l e q u ip m e n t

T or The M i r r o r c a n b e r e p r e s e n t e d b y I t s a p p r o x i m a t e

51 p e r c e n ta g e o f u t i l i z a t i o n by t h i s p a p er, w here t h e e q u ip ­ m ent s e r v e s b o t h p a p e r s .

A lis t

o f t h e m a j o r p i e c e s o f m e c h a n i c a l e q u ip m e n t

in sta lle d fo r, co sts

o r u s e d b y The M ir r o r a n d t h e i r a p p r o x i m a t e

are l i s t e d

th e eq u ip m en t,

fo r in sp e c tio n .

H o w ev er, b e f o r e l i s t i n g

some comment i s r e q u i r e d r e l a t i n g

N e w sp a p er P r i n t i n g P r e s s ,

8-p a g e U n it .

to a R ota ry

P r e s s e s su ch a s th e

L os A n g e l e s T im e s u s e s a r e made u p o f P r i n t i n g U n i t s , c a r r y 16 p r i n t i n g p l a t e s r u n on w h a t i s p r in tin g p la te s

to each U n it.

When t h e s e u n i t s a r e

known a s a 11s t r a i g h t r u n , ” t h e r e a r e two to e a ch p a g e .

w i t h two p r i n t i n g p l a t e s

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to each page,

b e p r o d u c e d fr o m o n e P r i n t i n g U n i t . known a s a “ c o l l e c t r u n ," p lie d

th at

to th e 1 6 -p a g e U n it ,

When r u n n i n g w h a t i s

th e r e a re 16 d i f f e r e n t

p a g e s ap­

an d t h e p r o d u c t fr o m t h e U n i t

w i l l b e tw o 8 - p a g e p r i n t e d s e c t i o n s , p r o d u cin g a t h a l f sp eed .

an 8 - p a g e p a p e r c a n

and th e p r e s s w i l l b e

6

^ A p p r o x im a te p r i c e s new q u o t e d b y v a r i o u s p r i n t i n g p r e s s c o m p a n i e s and t y p e f o u n d e r s i n L o s A n g e l e s , J u n e , 1 9 ^ 9 ; by a t e l e p h o n e c o n v e r s a t i o n on O c t o b e r 13> 19^9> w i t h Mr. R i c h a r d s o n , G e n e r a l P l a n t S u p e r i n t e n d e n t o f t h e L o s A n g e l e s E v e n in g H e r a ld a n d E x o r e s s : a n d fr o m a l e t t e r fr o m The G o ss P r i n t i n g P r e s s Comoany, San F r a n c i s c o O f f i c e , O cto b er 1 8 , 19^9d e s c r i p t i o n b y W a l l a c e H. G r a n g e r o f t h e G o ss P r i n t ­ i n g P r e s s Company i n a l e t t e r t o t h i s i n v e s t i g a t o r , O c t o b e r 1 8 , 1 9 ^9 *

52 S u c h l a r g e n e w s p a p e r p r e s s e s a r e n o t s o l d i n m ul­ t i p l e s o f o n e P r i n t i n g U n i t t o one F o l d e r .

It

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added to th e p r o d u c tio n f a c i l i t i e s

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53 E q u ip m e n t

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th e p a p ers.

A l s o t h i s new p a p e r i s c o m p l e t e l y e q u i p p e d w i t h u l t r a ­ modern p h o t o g r a p h i c d a r k r o o m s a n d s t u d i o s w h i c h am ount t o a m ea su r a b le ite m

o f in v e stm e n t.

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e q u ip m en t,

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t h e o r i g i n a l i n v e s t m e n t I n The M ir r o r

a p p r o x im a te ly e i g h t m i l l i o n d o l l a r s (§ 8 ,0 0 0 ,0 0 0 ).

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th e b a la n c e

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54 11B u i l d i n g ,

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o f w h ic h $ 2 , 3 3 6 , 5 1 5 a l r e a d y had b e e n e x p e n d e d t o w a r d s c o n ­ s t r u c t i o n o f th e M ir r o r B u ild in g * w as shottfn a t $ 1 4 , 6 0 1 , 0 9 ^

(n et).

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ta k in g in ­

to c o n s id e r a t io n th e 19^7 c o n s t r u c t io n e x p e n d itu r e ,

a m o u n ts

t o $ 8 , 0 2 5 , 8 0 5 w h ic h c o u l d f a i r l y r e p r e s e n t t h e a d d i t i o n o f The M ir r o r d i v i s i o n t io n s to

t o t h e com pany.

t h e company o f t h e m a j o r i t y

The o t h e r r e c e n t a d d i ­ sto c k h e ld d i v i s i o n s ,

t h e P u b l i s h e r s ’ P a p e r Company a n d T im es-C B S T e l e v i s i o n S t a ­ t i o n KKTV, a r e r e p r e s e n t e d on t h e b a l a n c e m en ts i n and a d v a n ce s t o

sheet as in v e st­

s u b s id ia r y and a f f i l i a t e d

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c o m p a n ie s.

shown i n

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P la n t r e q u ir e m e n ts.

Many o f t h e f a c t s

c o n sid e r e d in

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c o n s t r u c t e d and th e

v a r i o u s p i e c e s o f e q u ip m e n t p u r c h a s e d , th er a tte n tio n

from t h e

s h o u ld be g i v e n f u r ­

s t a n d p o i n t o f trie a c t u a l p h y s i c a l

p la n t r e q u ir e d to o p e r a te a new spap er. A f t e r h a v i n g d e c i d e d upon a g e n e r a l l o c a t i o n , tio n

o f t h e a c t u a l p r o p e r ty and b u i l d i n g c o n s t i t u t e

p r im e c o n s i d e r a t i o n

se le c ­ th e

i n s e t t i n g up t h e p h y s i c a l p l a n t .

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to

o f th e

th e c i t y

55 s t r e e t s w i t h a minimum l o s s p o l i t a n new spaper a ls o

o f tim e in t r a n s i t .

A m etro­

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v e n ie n t t r a n s a c t io n o f b u s in e s s w it h l o c a l a d v e r t i s e r s and r e p r e se n ta tiv e s of n a tio n a l con cern s. f o r c h o o s i n g a "dow ntow n11 l o c a t i o n

is

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t o b e v i s u a l l y p r o m in e n t

t o t h e co m m u n ity a s a r e p r e s e n t a t i v e p a p e r o f t h e c o m m u n ity . Of c o u r s e t h e m a t t e r o f c o s t i s

a lso

o f r u lin g

im p o r ta n c e in

b u y in g or l e a s i n g p r o p e r ty . The s e l e c t i o n

o f p r o p e r t y f o r The M i r r o r r e p r e s e n t s

a s p e c i a l c a s e w h e r e t h e p a r e n t c o r p o r a t i o n ow ned an i d e a l l o c a t i o n a d ja c e n t to

its

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new spaper.

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p r o p e r t y w as u s e d i n t e n s i v e l y b y e r e c t i n g a m u l t i - s t o r y h e ig h t-lim it

s t r u c t u r e t o make maximum u s e o f

the

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way t h e r e w as a n a l l o w a n c e f o r f u t u r e e x p a n s i o n a n d r e n t a l in c o m e c o u l d b e r e a l i s e d b u ild in g .

on t h e u n u s e d u p p e r f l o o r s o f t h e

In a d d i t io n , b o t h new spaper p r o p e r t i e s c o u ld be

co n n ected f o r

jo in t u t iliz a t io n

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its

own b u i l d i n g u n t i l i t

own p r o ­

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i n t h e c o m m u n ity i n o r d e r t o p r e s e r v e a s much o f i t s c a p i t a l as i t

can. The M ir r o r B u i l d i n g w as e r e c t e d on t h e n o r t h w e s t

c o r n e r l o t o f S e c o n d and S p r i n g S t r e e t s , w as c o n s t r u c t e d

L os A n g e l e s ,

o f c o n c r e t e and s t e e l t h r o u g h o u t .

and

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a g o t h i s l o t h a d a n o t h e r h e i g h t l i m i t b u i l d i n g on i t , p r io r to c o n str u c tio n le v e le d , in g i s

o f t h e M ir r o r B u i l d i n g t h i s had b e e n

and th e la n d u s e d as a p a r k in g lo t*

ten

s t o r i e s h ig h ,

b u ilt

l e v e l s underground.

fron tage fa c in g

th e sid ew a lk *

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e a s t on S p r i n g S t r e e t ,

r u n n in g w e s t w it h l e f t

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Second S t r e e t .

It is

c o m p le te ly a i r - c o n d i t i o n e d and f i x t u r e d w ith f l u o r e s c e n t lig h tin g . T h i s new b u i l d i n g w as c o n s t r u c t e d t o j o i n w it h a lo w e r t h r e e s t o r y

stru ctu re p r o je c tin g

c o in c id e n tly

s o u t h a lo n g

S p r i n g S t r e e t fr o m t h e m a in T im es B u i l d i n g , w h i c h i s

lo c a te d

on t h e s o u t h w e s t c o r n e r o f F i r s t a n d S p r i n g S t r e e t s .

In th e

fr o n t or e a ste r n

s i d e o f t h i s lo w t h r e e s t o r y b u i l d i n g , w h ic h

i s a l s o a b o u t 165 f e e t i n d e p th , c o n c o u r s e on t h e f i r s t

th e j o i n t l y

u sed sh ip p in g

f l o o r w it h lo a d in g d o ck s o p e n in g a t

s t r e e t l e v e l on S p r i n g S t r e e t * is

is

D i r e c t l y above th e co n cou rse

t h e m a i l i n g room f o r t h e T im es on t h e s e c o n d f l o o r .

t h e back o r w e s t e r n h a l f o f t h i s lo w s t r u c t u r e l y u s e d p r e ssr o o m w h ic h o c c u p ie s th e e n t i r e h e i g h t o f w h a t w o u ld b e t h e t h i s pressroom e x te n d s a t

is

In

th e j o in t ­

s p a c e up t o t h e

second s to r y c e i l i n g .

F u rth er,

secon d s to r y l e v e l b o th in t o th e

new M ir r o r B u i l d i n g a n d i n t o

t h e m ain T im es B u i l d i n g .

T h is

e x t e n s i o n m akes t h e p r e s s r o o m n e a r l y a f u l l b l o c k i n l e n g t h

5? b etw een F i r s t

and Second S t r e e t s .

o f t i l l s same t h r e e

sto ry b u ild in g

i n g room and o t h e r T im es B u i l d i n g

On t h e e n t i r e t o p f l o o r is

th e j o i n t l y

u s e d c o m p o s­

f a c il i t i e s .^

R e t u r n i n g now t o a d e s c r i p t i o n o f f a c i l i t i e s M ir r o r B u i l d i n g ,

its e lf,

th e f r o n t a l p o r tio n o f th e f i r s t

f l o o r h o u ses th e lo b b y c e n t r a l l y , d e p a r t m e n t on t h e l e f t ,

th e c la s s i f i e d

r ig h t.

and seco n d f l o o r s

th ir d flo o r ; tisin g

E d ito r ia l

c ir c u la tio n

is

o f th e

The f r o n t a l p o r t i o n o f

t h e s e c o n d f l o o r c o n t a i n s t h e m a i l i n g room .

o f th e b i g p r e s s r o o m .

a d v e r tisin g

a n d p a r t o f The M i r r o r s i d e

s h i p p i n g c o n c o u r s e on t h e

t io n o f th e f i r s t

o f th e

is

The r e a r p o r ­

th e s i t e

o f one e n d

d ep artm en ts occu py t h e

on t h e f o u r t h f l o o r ;

and ad ver­

a n d b u s i n e s s o f f i c e s a r e l o c a t e d on t h e f i f t h

S t a t e g o v e r n m e n t a l, a g e n c i e s u t i l i z e e. f i v e y e a r l e a s e b a s i s . th e lo w e st l e v e l i s

th e

th e to p f i v e

flo o r .

f l o o r s on

As f o r t h e t h r e e u n d e r g r o u n d l e v e l s , site

fo r th e h e a tin g , v e n t i la t i n g ,

an d a i r - c o n d i t i o n i n g m a c h i n e r y o f t h e b u i l d i n g a n d some sto ra g e a rea . p a in t sh ops, flo o r le v e l

The m i d d l e l e v e l c o n t a i n s t h e e tc .,

is

and ad d ed s t o r a g e a r e a .

c a r p e n te r and The t o p o r s u b ­

p a r t o f a g i g a n t i c b a sem en t w h ic h r u n s under

t h e e n t i r e c o n c o u r s e a n d p r e s s r o o m a r e a a n d m o re .

T h is b a s e ­

m ent a l s o e x t e n d s u n d e r t h e T i m e s - M i r r o r P r e s s B u i l d i n g ,

^ I n f o r m a t i o n s u p p l i e d b y A . D. S t e w a r t , M ir r o r B u ild in g S u p e r in te n d e n t.

58 w h ic h I s a l a r g e co m m e rc ia l p r i n t i n g

e s ta b lis h m e n t o f th e

p a r e n t c o r p o r a t i o n l o c a t e d on B roadw ay b e t w e e n F i r s t a n d Second S t r e e t s . T h is trem en d ou s b asem en t i s

a w arehouse f o r th e r o l l s

o f n e w s p r i n t u s e d b y b o t h n e w s p a p e r s , and i t a l s o

h o u ses th e

r e e l room w h e r e t h e r o o l s o f p a p e r a r e p o s i t i o n e d i n p r e ­ p a r a tio n f o r

f e e d i n g th e m i n t o

W it h a p i c t u r e o f now t h e e q u i p m e n t .

t h e b a r e p l a n t i n m in d ,

A fa ir ly

r e q u i r e m e n t s w as g i v e n i n ch ap ter,

so th e r e i s

th e p r e s s e s .

co m p lete l i s t

th e p r e v io u s s e c t io n o f t h i s

t h e r e b e an a t t e m p t made t o

N e ith e r w i l l

d e t a i l t h e c o m p le te m ec h a n ics

and o p e r a t i o n s o f e a c h p i e c e o f eq u ip m en t,

th e sis.

o f t h e e q u ip m e n t

no n e e d t o r e p e a t t h i s .

r e q u i r e many p a g e s a n d i s

c o n sid e r

sin c e

t h i s w o u ld

not a d ir e c t su b ject o f t h is

A f a c t t h a t s h o u l d be d e t a i l e d i s

th a t in c o in ­

c i d e n c e w i t h e s t a b l i s h m e n t o f The M i r r o r , new Hoe p r e s s e s w e r e a d d e d t h a t h a v e a c o m b in e d c a p a c i t y o f p r i n t i n g up t o 7 0 ,000

p a c ity ,

6 4 -p a g e new spapers p er hour.

W ith t h i s a d d e d c a ­

t n e g i a n t p r e s s r o o m now h a s

two r o w s o f p r e s s e s ,

f e e t l o n g , w h ic h can p r in t

238

175*000 t o 2 0 0 ,0 0 0 co m p lete 6 4 -

p a g e p a p e r s i n an h o u r . T r a c in g th e f lo w o f paper i n t o th e r o l l s

t h i s new spaper p la n t ,

o f n e w sp r in t a r e b ro u g h t by tr u c k to th e

concourse fa c in g

S p rin g S t r e e t .

H ere,

sh ip p in g

th e y a r e u n lo a d e d

fr o m t h e t r u c k s upon an a u t o m a t i c e s c a l a t o r w h i c h t r a n s p o r t s

59 them down i n t o

th e basem ent fo r s to r a g e .

From s t o r a g e t h e

r o l l s a r e b r o u g h t i n t o t h e r e e l room t o b e m o u n te d so t h e y w i l l be a u t o m a t ic a lly f e d i n t o

th e p r e s s e s a s o t h e r r o l l s

are d e p le te d . In b r i e f ,

p r io r to p r in tin g ,

c o p y i s p r e p a r e d by t h e

a d v e r t i s i n g an d e d i t o r i a l d e p a r t m e n t s .

Type s l u g s o f ap ­

p r o v e d c o p y a r e p r o d u c e d on t h e t y p e c © .s tin g m a c h i n e s a n d a s s e m b l e d i n “ g a l l e y s 11 f o r p r i n t i n g p r o o fin g ,

th e ty p e i s

set

on p r o o f p r e s s e s .

A fter

i n t o p a g e fo r m a l o n g w i t h e n g r a v e d

p l a t e s made o f p h o t o g r a p h s a n d d r a w i n g s .

Im p ressed p a p ie r -

m ache m a t r i c e s a r e made o f t h e s e p a g e f o r m s u n d e r p r e s s u r e i n mat r o l l e r s .

T h e se m a t r i c e s a r e

th en p la c e d in a u to m a tic

c u r v e c a s t i n g b o x e s w h ic h p rod u ce c u r v e d m e t a l p r i n t i n g p l a t e im p r e s s io n s from t h e m a t r i c e s . p r in tin g p la t e s are tra n sp o rte d to lo c k e d on to fille d

t h e p r e s s r o o m t o be

th e c y li n d r i c a l p r e s s e s .

or r e p le n ish e d ,

and. f o l d e r s ,

T hese s e m i - c y l i n d r i c a l

Ink r e s e r v o i r s a re r e ­

p a p er i s l e d th ro u g h t h e p r e s s u n it s

an d t h e p r e s s e s a r e r e a d y t o r o l l .

As t h e p r i n t e d n e w s p a p e r s come o f f t h e p r e s s e s

th ey

a r e s e n t a u t o m a t i c a l l y b y c o n v e y o r s t o t h e m a i l i n g room on th e second f l o o r . sh ip p in g .

H ere t h e y a r e b u n d l e d i n

lo ts

B u n d le s o f p a p e r s a r e t i e d t i g h t l y

w ir e a u t o m a t i c a l l y b y m a ch in e .

w ith b a ilin g

B u n d le s th e n t r a v e l by

c h u t e s fr o m t h e m a l l room t o t h e c o n c o u r s e a t t o be lo a d e d i n t o w a it in g

o f 50 f o r

tru ck s f o r d e liv e r y .

str ee t le v e l P a p e rs t o be

60 m a ile d a r c w rapped and a d d r e s s e d in

t h e m a i l i n g room i n

tim e t o c a t c h t r a i n s . The f l o o r p l a n o f

t h e v a r i o u s d e p a r t m e n t s o f The M ir ­

r o r a p p e a r s on t h e n e x t p a g e .

61

M IR R O R

SOIL-DINO

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d v e r t i s i n g

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AMD B U S I N E S S C IB G U L A T IO N

c o m p o sin g

SHIPPING

CLASSIFIED

PAPER!

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2 N D LEVEL 6 A 5 E M F N T

3RD LEVEL B A S E M E N T

F

l o o r

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CHAPTER VI

OPERATIONAL ECONOMICS O p eratin g? c o s t s . p la n t in c lu d e s n e w s p r in t,

The raw m a t e r i a l u s e d b y a n e w s p a p e r in k , m e ta l,

th e s e r e p r e s e n t a c o n s ta n t expense* sh o rta g e

and o t h e r s u p p l i e s ; P u b lis h e r s fa c e d a paper

e a r l y i n World. War I I , w h i c h l a t e r n e c e s s i t a t e d

r a tio n in g .

And d u r i n g 1 9 ^ 8 and m o s t o f 1 9 ^ 9 , w i t h r a t i o n i n g

d isc o n tin u e d ,

t h e s c a r c i t y a n d dem an d f o r n e w s p r i n t h ad

push ed paper c o s t s A lso ,

t o a new h i g h .

p u r c h a s e s o f n ew s s e r v i c e s ,

sy n d ic a te d f e a t u r e s ,

p h o to g r a p h s , and a r t w ork c o n s t i t u t e a c o n t i n u a l req u irem en t* A t t h e sam e t i m e t h e r e i s and p o w er b i l l s ,

th e m a tter o f la b o r c o s t s ,

In su ran ce c o s t s ,

ph one

and. i n t e r e s t c h a r g e s .

In th e b e g in n in g and e a r ly o p e r a tio n o f a new spap er, i t would, se em t h a t a l l t h e money i s c o m in g i n . c a p ita l i s p e r io d .

C o n se q u e n tly ,

a s u b s t a n t i a l am ount o f w o r k in g

r e q u ir e d to t i d e

I t w as r e p o r t e d t o

se n ta tiv e

g o in g ou t w it h n o th in g

th e o r g a n iz a tio n th is

over t h is e a r ly

i n v e s t i g a t o r by a r e p r e ­

o f t h e L o s A n g e l e s E x a m in e r t h a t t h e T i m e s - M i r r o r

Company a l l o t t e d § 3 , 0 0 0 , 0 0 0

fo r t h i s pu rp ose.

I n 1 9 ^ 7 an E d i t o r a n d P u b l i s h e r s u r v e y sh o w e d t h a t th e y e a r ly c o s t to o p e r a te a t y p i c a l d a i l y pap er w it h 5 0 ,0 0 0 c i r c u l a t i o n w as a p p r o x i m a t e l y §3., 1 8 1 , 5 0 0 w i t h s u c h an o u t ­ l a y m a k in g a p r o f i t o f § 3 2 6 , 6 ^ 9 b e f o r e

ta x es

(or a n et p r o f it

o f § 1 9 6 ,6 4 9 )*

T h ese o p e r a t in g e x p e n s e s r e p r e s e n t e d an i n ­

c r e a s e o f 27*8 per c e n t o v e r th e p r e c e d in g y e a r .

It

sh o u ld

a l s o b e c o n s i d e r e d t h a t t h i s w as f o r a p e r i o d w h en n e w s p r i n t w as r a t i o n e d . E x p ressed p e r c e n ta g e w is e

th e se c o s ts fo llo w :

O p e ra tin g E xpense

P er C ent o f T o ta l

C om p osing room P a p e r and i n k E d i t o r i a l d ep artm en t A d v e r t is in g d ep artm en t C ir c u la t io n d ep artm en t A d m in is tr a tio n and g e n e r a l o p e r a tin g expense O p e r a tin g o f b u i l d i n g and p l a n t B u sin e ss o f f i c e P r e s s room S te r e o ty p in g d ep artm en t P h o to e n g r a v in g d ep a rtm en t B u sin e ss ta x e s D e p r e c ia tio n P r o v isio n fo r d o u b tfu l acco u n ts

20 19 17 10 10

%

7 5 2 .5 2 .4 2 .2 1 .5 1 .4 1*3 0 .1 100 . 0%

B ecause o f th e r e a s o n s p r e v io u s ly s p e c i f i e d not p o ssib le

to o b ta in e x a c t o p e r a tin g c o s t s

s p e c ific a lly

f o r The M i r r o r : h o w e v e r , f r o m t h e f a c t s a v a i l a b l e t h e m a jo r raw m a t e r i a l c o s t s

I t w as

some o f

can b e d e t e r m i n e d .

The f i g u r e s l i s t e d b e l o w w e r e u s e d i n r e s o l v i n g t h e paper c o s t s o f

t h i s Los A n g e le s t a b l o i d .

1 4 0 ,0 0 0 c i r c u l a t i o n * T h is f i g u r e i s t h e a v e r a g e d a ily n e t p a id c i r c u l a t i o n , in c lu d in g a l l S a tu rd a y s, f o r th e f i s c a l y e a r O ctob er 1 1 , 1948 t o O cto b er 1 1 , 1949. T h i s f i g u r e i s b a s e d on c i r c u l a t i o n r e p o r t s p r i n t e d In t h e p a p er d u r in g t h e y e a r and a l s o i s b a s e d upon P u b l i s h e r 1s I n t e r i m S t a t e m e n t s I s s u e d s u b j e c t t o a u d i t a n d a p p r o v a l o f t h e A u d i t B u re a u o f C i r c u l a t i o n s .

64 $100 p e r t o n * D o m e stic p r i c e f o r n e w s p r in t in r o l l s on a c o n t r a c t b a s i s a s q u o t e d b y t n e Z e l l e r b a c h P a p e r Company f o r t h e f i s c a l y e a r O c t o b e r 1 1 , 1 9 4 8 , t o O c t o ­ ber 11, 1 9 4 9 . H o w e v e r , up t o t h e e n d o f t h i s p e r i o d n e w s p r i n t w as s t i l l s c a r c e s o t h a t i t b e c a m e n e c e s s a r y f o r t h e T i m e s - M i r r o r Company t o bu y i n f o r e i g n m a r k e t s a l s o , o c c a s i o n a l l y p a y i n g a s h i g h a s § 2 5 0 p e r ton * A c­ c o r d i n g t o t h e A u d i t i n g D e p a r t m e n t o f t h e T ir a e s - M ir r o r Company, t h i s h a d t h e e f f e c t o f a d d i n g an a v e r a g e prem ium f o r t h e y e a r o f 2 5 p e r c e n t t o t h e d o m e s t i c co st. T h i s made t h e a v e r a g e c o s t § 1 2 5 p e r t o n f o r t h e f is c a l year. ( A l t h o u g h , no prem ium w as p a i d a s o f S e p ­ tem b er, 1 9 4 9 .) 5 k •pages p e r e d i t i o n . T h is f i g u r e i s ta k e n a s th e a v e r a g e number o f p a g e s p e r e v e n i n g e d i t i o n . D u r in g t h e f i r s t tw o m o n t h s , i t r a n 60 and 6 k p a g e s ; t h e n e x t s e v e r a l m o n th s 4 0 , 4 4 , an d 4 8 ; a n d i n t h e l a t t e r m o n th s o f t h e f i s c a l y e a r , 60 and 6 k a g a i n . 5k pages i s equal t o 2 7 s i n g l e s h e e t s p r i n t e d on b o t h s i d e s . 56 p o u n d s p e r 1 0 0 0 s i n g l e s h e e t s o f 23 i n c h b y 32 in c h n e w sp r in t. T h i s f i g u r e w as q u o t e d b y Z e l l e r b a c h an d o t h e r p a p e r c o m p a n i e s i n L o s A n g e l e s . The s i z e o f a s i n g l e s h e e t o f The M ir r o r i s o n l y 1 1 - 1 / 2 i n c h e s b y 16 i n c h e s , o r o n e f o u r t h o f t h e 23 i n c h b y 3 2 i n c h sh eets. 4 p e r c e n t f o r a v e r a g e w a s ta g e and r e t u r n s . T h is f i g u r e i s b a s e d on an e s t i m a t e o f t h e P r o d u c t i o n D e p a r t ­ ment o f Tne M i r r o r . B r o k e n dow n, t h e w a s t a g e i s a t ­ t r i b u t e d to 1 / 2 - 1 p er c e n t “ t r a n s i t dam age, 1 /2 -1 per c e n t " p r i n t e d w a s t e , " 1 / 2 p e r c e n t o r l e s s f o r "wrap­ p e r s , " a n d 1 / 2 p e r c e n t o r m ore f o r " s c r a p w a s t e . " " R e t u r n s ," o r u n s o l d p a p e r s am oun t t o a b o u t 1 p e r c e n t . 313 e d i t i o n d a y s The p a p e r i s p r i n t e d e v e n i n g s e x ­ c e p t S u n d a y s and t h i s f i g u r e r e p r e s e n t s t h e number o f d a y s t h e p a p e r w as p r i n t e d d u r i n g t h e f i s c a l y e a r Oc­ t o b e r 1 1 , 1 9 4 8 t o O c t o b e r 1 1 , 1949* W ith t h e s e f i g u r e s t h e c o s t o f n e w s p r in t u s e d d u r in g th e f i r s t

yea r o f o p e r a tio n

(n o t c o u n tin g

s t o c k on hand) w as

e s tim a te d to be § 9 4 6 ,7 0 0 . A n o t h e r c o s t w h i c h w as e s t i m a t a b l e w as t h a t o f new s in k .

B a s e d on some o f t h e a p p l i c a b l e

fig u r e s

o u tlin e d fo r

d e te r m in in g th e c o s t o f n e w s p r in t p lu s o th e r f a c t s , p o ssib le

to a r r iv e a t a r e a so n a b le answ er.

P urch ased in la r g e

q u a n titie s,

th e c o s t

to a new spaper

i n L os A n g e l e s f o r an o r d i n a r y b l a c k new s i n k i s pound.

i t w as

The c o s t f o r c o l o r i n k s ,

5 c e n ts per

w h ic h a r e u s e d ab o u t 0 . 2

p e r c e n t a s much a s t h e b l a c k f o r The M i r r o r , a v e r a g e s 25 c e n t s p e r pound. cent

so lid

p r in t;

and,

A pound o f in k i s

c o v er a g e o f a 2 0 0 ,0 0 0

r e q u ir e d f o r 100 per

s q u a r e i n c h a r e a o f n e w s­

th e c o v e r a g e o f a p r in t e d new spaper page a v e r a g e s

a p p r o x i m a t e l y 2 0 p e r c e n t ' W ith t h e s e f a c t s in k fo r th e f i r s t y e a r ’ s o p e r a tio n

th e c o s t o f

o f The M ir r o r w as c a l c u ­

l a t e d to be # 2 1 ,8 0 0 . R e f e r b a c k t o p a g e 63 now, w h e r e t h e o p e r a t i n g c o s t s e x p r e s s e d in p e r c e n ta g e s w ere g iv e n f o r a t y p i c a l d a i l y paj^er i n 1 9 ^ 7 w i t h 5 0 , 0 0 0 c i r c u l a t i o n .

The p a p e r a n d i n k

c o s t s f o r su ch a paper w ere r e p r e s e n te d a s b e in g o f th e t o t a l o p e r a tin g c o s t .

19 p e r c e n t

The A u d i t i n g D e p a r t m e n t o f

t h e T i m e s - M i r r o r Company w a s q u e s t i o n e d a s t o

w h eth er t h i s

p e r c e n t a g e w o u ld b e r e p r e s e n t a t i v e f o r The M i r r o r d u r i n g i t s fir st

year o f o p e r a tio n . I t w as t h e e s t i m a t e o f t h e A u d i t i n g D e p a r t m e n t t h a t

19 p e r c e n t o f t h e t o t a l o p e r a t i n g c o s t s f o r p a p e r a n d i n k

^ C a lifo r n ia In k C o ., I n c . , Los A n g e le s. (Same p r i c e s q u o t e d a g a i n i n O c t o b e r , 1 9 % • )

A p r il,

19^9*

o

J o s h L u cy I n k Company, L o s A n g e l e s .

A p r il,

19% *

66 a c t u a l l y x^ould b e r e p r e s e n t a t i v e f o r t h e T im e s o r The M ir r o r u n d e r n o rm a l c i r c u m s t a n c e s .

H o w e v er , f o r t h e p e r i o d o f

o p e r a tio n under c o n s id e r a t io n ,

n e w s p r i n t w as s c a r c e a n d

c o stly

to o b t a i n f o r t h e

ly ,

w as s u g g e s t e d t h a t 2 5 p e r c e n t o f t h e t o t a l o p e r a t i n g

it

T i m e s - M i r r o r Company.

C on seq u en t­

c o s t f o r p a p e r an d i n k w o u ld b e more a p p l i c a b l e .

On t h e

b a s i s o f t h i s 2 5 p e r c e n t r e p r e s e n t i n g t h e p a p e r and In k c o s t s o f $ 9 6 8 ,5 0 0 , is

t h e t o t a l o p e r a t i n g c o s t f o r The M ir r o r

equal p r o p o r tio n a te ly

to

Y e a r ly d e p r e c ia t io n a c c o r d in g to

$ 3 # - - 7 4 ,0 0 0 . co sts

on e q u ip m e n t a r e a l l o c a t e d

t h e am ount o f n e w s p r i n t g o i n g t h r o u g h t h e p l a n t .

On t h i s b a s i s t h e T i m e s - M i r r o r Company f i g u r e s a p p r o x i m a t e l y 6 - 1 / 2 p e r c e n t on p r e s s e s , ty p e m a ch in e s,

10 p e r c e n t on l i n o t y p e a n d s t e r e o ­

a n d 10 p e r c e n t on o f f i c e

f u r n i t u r e and e q u i p ­

m e n t. A n o th er s m a lle r raw m a t e r i a l e x p e n se it e m m e ta l, typ e,

in c lu d in g th e

a n d m o n o ty p e c a s t i n g m a c h i n e s .

w h ic h i s

ten t.

a n tim o n y

5 per c e n t),

(ex a m p le:

15 p e r c e n t ) ,

typ e

lin o ty p e ,

The c o s t o f

c o m p o se d o f v a r i o u s a m o u n ts o f l e a d

per c e n t), a m p le :

d i f f e r e n t k in d s f o r th e

is

stereo ­

su ch ty p e

(exam ple*. and t i n

(ex­

v a r i e s m a in ly a c c o r d in g to th e t i n

When p u r c h a s e d i n q u a n t i t i e s

o f t o n s o r m o re ,

c o s t a v e r a g e s $ 0 . 2 3 p e r pound n o t c o n s i d e r i n g 3 d isc o u n ts.

80

con­

th e

c o n fid e n tia l

^ I n fo r m a tio n s u p p l ie d by th e F e d e r a te d M e ta ls D i v i ­ s i o n o f t h e A m e r ic a n S m e l t i n g an d R e f i n i n g Company, L os A n g e le s, O ctob er, 19^9.

For a t a b lo id o f th e here, used.

s i z e and c i r c u l a t i o n

c o n sid e r e d

a p p r o x i m a t e l y 5 > 0 0 0 p o u n d s p e r m onth a r e o r d e r e d a n d A fte r th e ty p e has been used i t

is

r e tu r n e d to

th e

t y p e m e t a l s u p p l y com pany f o r a r e f u n d a v e r a g i n g 3 5 p e r c e n t L o f th e pu rch ase p r ic e . W it h t h e s e f i g u r e s i n m ind t h e a n ­ n u al c o s t o f ty p e m eta l i s f ig u r e d o e s n o t ta k e f o r a c o m p le te

in to

p la c e d r o u g h ly a t

$9>000.

T h is

accou n t th e o r ig i n a l in v e stm en t

s t o c k on h a n d b e f o r e o p e r a t i o n s b e g a n .

The c o s t o f “m a t11 p a p e r s , w h i c h run b e t w e e n § 0 . 1 7 and § 0 -35 a p ie c e ,

a v e r a g e d o u t a b ou t e q u a l to

th e c o s t

o f th e

ty p e f o r th e y e a r . A lth o u g h pap er c o s t s in d o m e stic m a rk ets,

h ave d e c l i n e d due t o a v a i l a b i l i t y

a s c o m p a re d w i t h t h e

sc a r c ity

d u rin g th e f i r s t y e a r o f t h i s t a b l o i d ’ s o p e r a t io n , c o s t s are c o n t in u in g up.

th e f i r s t

and a r e a s o n a b l e e s t i m a t e i s

y e a r ’ s l a b o r c o s t s f o r The M i r r o r .

On m o s t n e w s p a p e r s , fa v o r a b le w ages,

la b o r

Labor c o s t s a r e c o m p a r a t i v e l y h i g h ­

e r th an p a p e r and in k c o s t s , made h e r e f o r

e x is tin g

th an k s to

t h e m e c h a n i c a l f o r c e h a s t h e m o st th e in f lu e n c e

o f t h e u n io n .

t h o u g h t h e T i m e s - M i r r o r Company h a s no u n i o n ,

it

A l­

m a in ta in s

a p o lic y

o f p a y i n g a s much a s o r m ore t h a n a n y c o m p a r a b le

com p any,

p o s i t i o n by p o s i t i o n .

Pay s c a l e s i n

th e b u s i n e s s

L oc. c l t . The 5 0 0 0 p o u n d s p e r m o n th u s a g e i s an e s t i m a t e b a s e d on t h e c o m p a r a t i v e u s a g e o f 1 0 , 0 0 0 p o u n d s p e r m on th o f l i n o t y p e a n d s t e r e o t y p e a l o n e b y t h e L o s A n g e l e s T im e s .

68 d ep artm en ts are n e x t in rank,

sin c e

th e y are u s u a lly h ig h e r

th a n th e e d i t o r i a l d e p a r tm e n t. On M arch 1 ,

1949,

t h e r e x*;ere a p p r o x i m a t e l y 5 5 0 r e g u ­

l a r e m p l o y e e s on t h i s L o s A n g e l e s t a b l o i d ’ s p a y r o l l r e p r e ­ s e n t i n g 16 p e r c e n t o f In a d d it io n to

t h e T i m e s - M i r r o r Company e m p l o y e e s .

t h is base

c o m p o s in g room w o r k e r s ) ,

o f 35 0 e m p l o y e e s

( i n c l u d i n g 60

a c e r t a i n l a b o r c h a r g e m u st be made

t o The M ir r o r f o r u s e o f v a r i o u s d e p a r t m e n t s o f t h e p a r e n t 5 com p an y. J T h e s e c h a r g e s a r e made i n t e r m s o f p e r c e n t a g e s o f w o rk d o n e f o r The M ir r o r a n d r e l a t e d i n t e r m s o f a c o m p a r a b le number o f e m p l o y e e s i n e a c h o f t h e s e d e p a r t m e n t s .

The e x a c t

b r e a k d o w n w i l l b e shown i n t h e c h a p t e r on o r g a n i z a t i o n ,

but

f o r t h e p u r p o s e s h e r e t h e a d d i t i o n a l number o f e m p l o y e e s t o t a l s 74-, w h i c h m akes a t o t a l l a b o r f o r c e o f 4 2 4 . a v e ra g e w e e k ly e a r n in g r a t e bor c o st fo r th e f i r s t To c o n c l u d e t h i s

o f 76*04 d o lla r s ,

At an

th e t o t a l l a ­

y e a r w as t a k e n t o b e a b o u t $ 1 , 6 8 3 , 0 0 0 . s e c t i o n on o p e r a t i n g c o s t s ,

several

f i n a n c i a l a n a l y s i s s h e e t s a v a i l a b l e f o r th e T im es-M irr o r

I n f o r m a t i o n s u p p l i e d by t h e P e r s o n n e l D e p a r tm e n t o f t h e T i m e s - M i r r o r Co. D u rin g th e i n t e r i m o f t h e f i r s t y e a r ’ s o p e r a t i o n , a fe w e x c e s s c l e r i c a l w o r k e rs w ere l a i d o f f ; how ever, c o m p e n s a t i n g number o f p r o d u c t i o n w o r k e r s w e re t a k e n o n . 6 U n i t e d S t a t e s D e p a r t m e n t o f L a b o r , “N e w s p a p e r H ours and E a r n i n g s , ” M o n th ly L a b o r R e v i e w , 6 8 : 2 , F e b r u a r y , 1949*

a

Company a s a w h o le a r e g i v e n f o r

in sp e c tio n

and c o m p a r is o n .

I n c l u d e d among t h e s e a r e t h e B a l a n c e S h e e t a n d t h e P r o f i t and L o s s S t a t e m e n t m e n t i o n e d i n t h e p r e v i o u s

s e c t i o n o f th e

ch a p ter. THE TIMES-MIRROR COMPANY INFORMATION FOR INCOME DOLLAR PIE CHART 11 M o n th s E n d ed N ovem ber 3 0 ; and 12 P e r i o d s E n ded N ovem ber 3 0

In co m e D o l l a r D i v i s i o n

11 m o n th s 12 p e r i o d s 1947

W ages and s a l a r i e s ( P r o f it sh a rin g ) E x e c u tiv e s a l a r i e s O ther em p lo y ee b e n e f i t s (grou p i n s . , p e n s io n s , w e lfa r e ) T axes R o l l - p r i n t u s e d and o t h e r s u p p lie s in c lu d in g pur­ chased fe a t u r e s D e p r e c ia tio n , w ater, l i g h t a n d pow er A l l o t h e r e x p e n s e s (n e w s s e r v i c e s , bad a c c o u n t s , e tc .) U n a llo c a te d (in c lu d in g sh a r e h o ld e r s' i n t e r e s t )

11 m o n th s 12 p e r i o d s 1946

1 1 m o n th s 12 p e r i o d s 1945

*325 .0 1 6 .0 0 7

*3 19 .0 2 .0 0 7

*327 .0 2 3 .0 0 5

.0 2 1 .0 7 1

.0 2 3 *081

.0 1 9 .1 4 0

.3 1 9

.2 7 0

.2 5 0

.0 2 8

.0 2 8

.0 2 7

.1 1 5

.1 3 9

.1 3 5

.0 9 8

.1 1 3

.0 7 2

TIMES NEWSPAPER INCOME DOLLAR DIVISION 11 M on th s E nded N ovem ber 3 0 ; a n d 12 P e r i o d s Ended D e ce m b e r 1 , 1 9 4 6 Incom e A d v e r t is in g and s a l e s O t h e r in c o m e T o t a l in c o m e

in c o m e

.9 8 4 .0 1 6 1 .0 0 0

E xp en ses Wages a n d s a l a r i e s E x e c u tiv e s a l a r i e s E m p lo y e e w e l f a r e a n d g r o u p i n s . Taxes N e w s p r in t, in k . p u rc h . f e a t u r e s D e p r e c i a t i o n , l i g h t , pow er and w a te r A ll o th er expenses S h a r e h o ld e r s’ in te r e s t. T o ta l expense

OH .0 0 7 . 0 28 .0 1 6 .3 0 6 .0 2 2 .1 6 7 .i* n 1 .0 0 0

The p r e v i o u s tw o in c o m e d o l l a r d i v i s i o n s w e r e f u r ­ n i s h e d b y t h e R e s e a r c h D e p a r tm e n t o f t h e T i m e s - M i r r o r ComThe l a t t e r b r e a k - d o w n f o r

t h e T im es N e w s p a p e r w as f o

1 9 ^ 6 when t h a t p a p e r ’ s c i r c u l a t i o n

7 ^ 5 , 0 0 0 on S u n d a y s .

w a s A oo,80Q d a i l y and

T h i s w as d u r i n g a t i m e when n e w s p r i n t

w as r a t i o n e d . The f i n a n c i a l s t a t e m e n t s a p p e a r on t h e n e x t f o u r p ages. S o u rc e s o f in co m e♦

B a s i c a l l y a new spaper has th e

s i m p l e eco n o m y o f h a v i n g o n l y tw o t i l i n g s t o t h e ”w h i t e

s p a c e 11 o r a d v e r t i s i n g l i n e a g e w i t h i n

o f th e p a p er w h ic n i t m e n t.

s e ll.

Two, i s

s e lls

th ro u g h i t s

th e new spap er i t s e l f

0ne> i s

th e p a g es

a d v e r tis in g depart

w h ic h i s

s o ld th rou gh

th e c i r c u l a t i o n d ep artm en t.

I n a d d i t i o n many n e w s p a p e r s ,

m o s t l y s m a l l a n d some l a r g e ,

a l s o o p e r a t e a ’’p r i n t s h o p ”

S e e p . 9 1 f o r an e x p l a n a t i o n o f t h e a c c o u n t i n g p e r io d s used f o r th e s e a n a ly s is s h e e t s .

71 BALANCE SHEET THE TIMES-MIRROR COMPANY December 31 1948

1947

1946

ASSETS C u rren t A s s e t s : Cash A ccou nts r e c e i v a b l e , N e t In v e n to r ie s o f N e w s p r in t,e tc . T o t a l C urrent A s s e t s

9 6 7 , 7 1 5 .5 5 2 ,1 1 5 ,7 6 0 .0 4 2 ,2 0 9 ,2 5 8 .6 3 5 ,2 9 2 ,7 3 4 .2 2

1 In v e s tm e n ts i n and ad van ces to s u b s i d i a r y and a f f i l i a t e d com panies C a p it a l s t o c k s - a t c o s t Advances

3 ,1 0 2 ,1 0 2 .9 3 5 5 6 ,1 8 3 .3 5

2 I n v e s tm e n ts & o t h e r a s s e t s U .S . Government S e c u r i t i e s 3 M u n icip al & c o r p o r a te s e c . rJ'Trust d eed s & m ortgage n o t e s ^•Unsecured n o t e s & a c c o u n ts 5 In v estm en t p r o p e r t i e s , n e t M is c e lla n e o u s a s s e t s P l a n t , p r o p e r ty and e q u ip m e n t-a t co st: Land ^ B u i l d i n g s , m a ch in ery , & e q u ip m e n t,n e t 7 A c c e s s o r y p r o p e r t i e s used i n c o n n e c t i o n w it h newspaper p u b lish in g b u s in e s s ,n e t

D e fe r r e d c h a r g e s : S u p p l i e s , p r e p a i d in s u r a n c e , p u b lic a t. c o s t s ,e t c . T otal A sse ts

8 5 3 ,5 8 0 1 ,4 2 5 ,0 1 1 1 ,2 3 0 ,4 3 6

3 , 509,026

1 ,0 1 8 ,8 1 5 1 ,1 9 7 ,4 4 5 4 5 9 , 5 99 2 ,6 7 5 ,§ 6 o

1 8 9 ,0 0 8 .5 9 1 6 8 , 7 1 0 .2 1 2 7 9 , 2 0 6 .5 7 4 o ,3 2 1 .1 1 1 ,7 7 9 ,2 8 3 .3 1 8 2 8 , 6 8 7 .2 9

1 ,1 1 8 , 9 0 9 4 ,1 2 1 ,8 0 4 9 8 3 ,3 9 8

9 2 9 ,9 0 0 4 ,8 7 2 ,2 4 0 1 ,1 4 8 ,4 0 3

2 ,9 9 3 .6 3 2 1 ,1 1 0 ,9 5 0

3 ,2 1 1 , 4 1 4

1 ,3 3 4 ,9 6 6 .8 3

7 4 0 ,5 1 1

7 4 0 ,5 1 1

1 4 ,6 0 1 ,0 9 3 .8 1

9 ,5 0 7 ,1 3 2

5 , 4 8 4 ,2 1 3

2 9 2 ,8 9 0 $ 2 4 ,3 7 8 ,2 5 1

2 0 8 .2 8 4-r $ 2 0 .3 0 3 ,9 1 1

1 , 033,086

9 4 7 ,9 9 8 .8 9

i ' A . 8 8 9 >71 ■~S22!l96.%

LIABILITIES, CAPITAL STOCK & SURPLUS (S e e n e x t page)

BALANCE SHEET ( c o n ' t . ) THE TIMES-MIRROR COMPANY December 31 19*+8 C u rren t L i a b i l i t i e s : N o tes p a y a b le to b an k s, u n secu red A ccou nts p a y a b le & accru ed expenses C o n t r i b u t io n s to p r o f i t s h a r in g p la n 8 T a x e s - o t h e r th an on income E stim a te d f e d e r a l income t a x e s , l e s s tax n o tes T o t a l C urrent L ia b . L ong-term d e b t: 9 N o te s p aya b le to b an k su n secu red R e se r v e f o r c o n t i n g e n c i e s D e fe r r e d i n c o m e - s u b s c r i p t i o n s , r e n ta ls ,e tc . C a p ita l sto c k & su rp lu s: C a p it a l s t o c k - p a r v a lu e # 1 0 0 0 /sh r: A u th o r iz ed & i s s u e d 1 1 ,5 2 0 shares S u rp lu s: C a p it a l s u r p lu s Earned s u r p lu s T o ta l L i a b i l i t i e s

19^6

I2kz

LIABILITIES,CAPITAL STOCK & SURPLUS

j

jUvU

$ 2 , 6 9 2 , 9 1 9 .2 7

1 , 6 1 7 ,6 7 2

$ 1 ,3 8 9 , 0 5 7

2 6 5 ,6 1 9 .0 6 1 9 7 , 2 6 0 .8 0

2 3 8 ,5 5 3

2 6 5 ,8 5 7

t 9 3 8 ,5 3 0 .5 7 ^ ,0 9 3 ,3 2 9 .7 0

5 5 5 ,8 6 6 5 , 6 1 1 ,0 8 1

7 0 9 ,1 1 9 2 ,3 6 5 ,0 1 3

5 ,7 6 0 ,0 0 0 .0 0 2 5 ,7 8 7 .5 0

3 , 2 0 0 ,0 0 0 2 3 ,5 3 2

2 0 ,6 9 9

6 1 ,0 8 8 .2 5

3 8 ,9 3 6

2 1 ,1 5 8

1 1 , 520, 0 0 0 .0 0

1 1 , 5 2 0 ,0 0 0

1 1 , 5 2 0 ,0 0 0

2 2 ,1 1 6 .6 6 8 ,0 3 9 ,8 7 5 .7 1 };29, 5 2 2 .1 9 6 .8 2

2 2 ,1 1 7 ^ 7 ,1 6 2 , 6 8 3 S 2 5 .3 7 8 .2 5 1

2 2 ,1 1 7 6 ,3 5 5 ,9 3 5 3 2 0 ,3 0 3 ,'-.

E x p la n a to r y N otes As Per I n d ic a t e d On B a la n c e S h e e t : 1.

I n v e s tm e n ts i n s u b s i d i a r y and a f f i l i a t e d c o f s . a g g r e g a te d $ 2 , ^ 2 2 ,5 0 0 .0 0 and $ 6 7 9 > 60 2.9 3 r e s p e c t i v e l y f o r 19*+8. The Company! s e q u i t y i n th e u n d e r ly in g n e t a s s e t s o f th e s u b s i d i a r i e s as shown by t h e i r u n a u d ited s t a t e m e n t s a g g r e g a te d $ 2 , 7 2 3 * 1 7 8 .1 8 a t December 3 1 519*+8.

2.

The amounts shown f o r in v e s t m e n t s and o t h e r a s s e t s r e p r e ­ s e n t c o s t t h e r e o f minus d e p r e c i a t i o n and d e p l e t i o n where a p p lic a b le .

3*

I n c lu d e s m ark etab le s e c u r i t i e s a t a c o s t o f $11*+ , 9 6 6 .95* 19*+8, $3jM +6,396, 19*+7« and $>+,220,1*+!, 19*+6: w hich had a

market v a lu e o f $153,*+ 6 8 . 8 8 , 19*+8, $ 3 , 9 9 1 , 9 8 1 , 19*+7, and $*f, 900,16*+, 19*+6. In v e s tm e n t n o t e s and a c c o u n t s r e c e i v a b l e are due from: e m p lo y ee s $ 7 , 1 1 3 . 9 9 , o f f i c e r s $ 6 5 2 .3 5 ; o t h e r s $ 3 1 1 ,7 6 1 .3 * * . 5.

A f t e r r e s e r v e f o r d e p r e c i a t i o n o f $362 , 523 .**8, 19*+8, $369,**82, 19**7, and $*+02,1M+, 19*+6.

6.

A fte r r e s e r v e f o r d e p r e c i a t i o n o f $3,31**, 5 1 8 .2 8 , 19*+8, $ 3 ,l 6 7 ,0 * f 0 , 19*+7, and $ 2 , 9 3 1 , 8 * 6 , 19**6. In 19**7, th e Company had expended $ 2 , 3 3 6 , 5 1 5 toward c o n s t r u c t i o n o f th e M irror B u i l d i n g . ( $ 5 , 8 3 0 , 0 0 0 )

7.

A f t e r r e s e r v e f o r d e p r e c i a t i o n o f $ 5 3 , 0 2 9 . 5 7 , 19*+8.

8.

I n c lu d e d i n a c c o u n ts p a y a b le and accr u e d e x p e n s e s f o r 19*-*7 and 19*+6.

9.

At December 3 1 , 19*+8, th e i n d e b t e d n e s s to banks was e v id e n c e d by s h o r t - t e r m p r o m isso r y n o t e s . On January 2 6 , 19*+9, a lo a n agreem ent was e n t e r e d i n t o w ith th e l e n d i n g banks p r o v id in g f o r l o a n commitments o f $ 8 , 0 0 0 , 0 0 0 . The f i r s t b o rro w in g s th e r e u n d e r were a p p l ie d i n payment o f p r e v i o u s l y e x i s t i n g i n d e b t e d n e s s . The new l o a n s a r e e v id e n c e d by p r o m isso r y n o t e s p a y a b le i n t w e lv e e q u a l s u c c e s s i v e s e m i-a n n u a l i n s t a l l m e n t s from J u ly 1 , 1951 t o Janu ary 1 , 1957* Among o t h e r t h i n g s , t h e Company has a g reed to m a in ta in w orking c a p i t a l o f a t l e a s t $ 1 ,5 0 0 ,0 0 0 to December 3 1 , 1 9 5 1 , w h ich amount i s to be i n c r e a s e d t h e r e a f t e r , and a n e t w orth o f a t l e a s t $ 1 5 , 0 0 0 , 0 0 0 u n t i l b o rro w in g s under th e agreem ent have b e e n r e p a i d .

Sou rce o f B a la n c e S h e e t F i g u r e s : 19**6,19**7

W alk er’ s Manual o f P a c i f i c C oast S e c u r i t i e s , v m ~.

1 9 1 * 8 -------------- Annual R eport o f th e T im es-M irror Company, Year Ending December 3 1 , 19**8.

PROFIT AND LOSS STATEMENT THE TIMES-MIRROR COMPANY Year Ended December 31? 19*+8 A d v e r tisin g , c ir c u la t io n & oth er newspaper r e v e n u e s Net s a l e s o f job p r i n t i n g , b i n d i n g .

75 w h ic h o f t e n

is

an i m p o r t a n t s o u r c e o f i n c o m e .

T n is i s

t r u e i n t h e c a s e o f t h e T i m e s - M i r r o r Gompany

w h ic h o p e r a t e s th e T im e s -M ir r o r P r e s s new spaper p r o p e r t i e s .

has a se p a r a te

te le p h o n e books f o r P a c if ic

Company.

H o w e v er ,

to i t s

T h i s d i v i s i o n o f t h e com pany e n g a g e s

i n co m m ercia l p r i n t i n g and a l s o p r in tin g

in a d d it io n

o p e r a tio n fo r

T e le p h o n e a n d T e l e g r a p h

The M i r r o r o p e r a t i o n d e r i v e s

its

in c o m e

fro m c i r c u l a t i o n a n d a d v e r t i s i n g w i t h o u t a n y c o m m e r c i a l p r in tin g . C ir c u la tio n In

and a d v e r t i s in g a re h ig h ly

in te r d e p e n d e n t.

th e o r d in a r y n ew sp ap er one c a n n o t e x i s t w it h o u t th e o t h e r .

Im p ortan t a s i t e x te n siv e ,

is

is,

a n e w s p a p e r 's c i r c u l a t i o n ,

in s u ffic ie n t,

a lo n e ,

to

no m a t t e r how

support i t

fin a n c ia lly .

An e x a m p le o f t h i s r e a s o n i n g w as f u r n i s h e d b y New Y o r k ' s PM w h i c h w as d i s c u s s e d i n t h e f i r s t

ch a p ter.

C o n v e r se ly ,

new spaper c a n n o t g e t a d v e r t i s in g g and s u b s t a n t i a l c i r c u l a t i o n .

u n le ss i t

c a n show a s o l i d

The n e w s p a p e r b u s i n e s s i s w ith r e sp e c t

to b o th c i r c u l a t i o n

an e x t r e m e d e g r e e .

some e x t e n t

and a d v e r t i s i n g b u t n o t to

Of c i r c u l a t i o n

d a ily new spapers d e r iv e c u la tio n ,

se a so n a l to

a

a n d a d v e r t i s i n g m o st

o n e - t h i r d , o f t h e i r in c o m e fr o m c i r ­

a lth o u g h s e v e r a l d e r iv e

a s much a s o n e - h a l f fro m

J a m e s E . P o l l a r d , P r i n c i p l e s o f N e w s p a p e r M anagem ent (New Y ork : M cG -raw -H ill B o o k Company, I n c . , 1 9 3 7 ) p.

76 t h i s sou rce-

C o r r e sp o n d in g ly ,

a d v e r t i s in g p r o v id e s about

t w o - t h i r d s o f t h e in c o m e o f m ost d a i l i e s . fo r m a tio n ,

B e sid e s t h is in ­

t h e T i m e s - M i r r o r Company a u d i t i n g

d ep a rtm en t

p r o v i d e d an e s t i m a t e o f in c o m e o f 4o p e r c e n t f r o m c i r c u l a ­ t i o n and 60 p e r c e n t f o r the f i r s t

a d v e r tis in g

f o r The M ir r o r d u r i n g

year.

The q u a n t i t y a n d q u a l i t y o f a p a p e r * s c i r c u l a t i o n

is

t h e s o l e b a s i s on w h i c h p r o s p e c t i v e a d v e r t i s e r s c a n b e a t ­ tra cted ,

and a s s u c h ,

m isq u o ted f i g u r e s .

th e v a l u e s h o u ld n o t be im p a ir e d by

P u b l i s h e r s h a v e come to r e a l i z e

t h e x^orth

o f h a v i n g t h e i r c i r c u l a t i o n f i g u r e s a c c u r a t e l y a u d i t e d an d a v a ila b le fo r

in s p e c tio n .

P ress a s s o c ia tio n s a lso

encourage b e t t e r c ir c u la t io n th at i f

str o n g ly

p r a c t i c e s b e c a u se t h e y h o ld

a p u b l i s h e r m a n a g e s h i s c i r c u l a t i o n on a s o u n d b a s i s ,

h i s in c o m e w i l l b e i n s u r e d a s w i l l b e t h e r e s p e c t o f h i s p a tro n s. In order to a ssu r e accu ra te a u d its , are c a ll e d in

t o p erfo rm t h i s

The l e a d i n g a u d i t a g e n c y i s

o u ts id e a g e n c ie s

se r v ic e p e r io d ic a lly fo r a f e e .

th e A u d it Bureau o f C i r c u l a t i o n .

An e x c e r p t f r o m a fo r m a p p r o v e d b y t h e A u d i t B u r e a u o f C i r c u l a t i o n s a p p e a r s on t h e n e x t p a g e .

77 PUBLISHER’ S INTERIM STATEMENT — NEWSPAPER FORM PERIOD ENDING- JUNE 3 0 , 19^9 T h is form i s

a pp roved by th e 1.

THE MIRROR

2.

LOS ANG-ELES,

5-

P u b lish ed

AUDIT BUREAU OF CIRCULATION 1 6 5 W est Wacker D r i v e C hicago 1 , I l l i n o i s 8.

CALIFORNIA Evening

A v e r a t e N et P a id C i r c u l a t i o n f o r 3 months e n d in g June 3 0 , 19^9:

EVENING

C it y zone

R e ta il trad in g zone

A ll other

T otal

115,690

3 1 ,3 9 7

7 ,7 2 0

154,807

As a n a c t u a l r e q u i r e m e n t , n u a lly fice

p u b l i s h e r s must

file

an­

a sworn s t a t e m e n t o f c i r c u l a t i o n w i t h t h e p o s t o f ­

in order to ob tain M ailin g

s e c o n d - c la s s m a ilin g p r i v i l e g e s .

s e r v e s a s o n e means o f d i s t r i b u t i o n f o r n e w s ­

papers;

however,

stands,

corn er newsboys,

d eliv ery

t h e g r e a t b u lk a r e d i s t r i b u t e d th r o u g h news­

c a rriers.

drug s t o r e s ,

c ig a r stands,

A ll o f th ese vendors receiv e

a n d home

a c o m m is­

s i o n i n t h e form o f from o n e - f o u r t h t o o n e - h a l f o f t h e sa .le s p r ic e of th e paper. The 7 c e n t p a p e r s i n L o s A n g e l e s a r e s o l d t o l e t s a s drug s t o r e s and c i g a r sta n d s a t at 4-1 /2

cen ts;

to d e a l e r s ,

a t about A c e n ts ; purposes of

and,

in

is

5 c e n t s ; t o newsboys

h a n d l i n g home d e l i v e r y c a r r i e r s ,

some i n s t a n c e s f o r e v e n l e s s f o r

secu rin g c ir c u la t io n .

a 5 cen t newspaper,

such o u t ­

R esp ectiv ely ,

so ld at 3 -1 /2

cen ts,

The M i r r o r ,

3 cen ts,

2 -1/2

78 c e n t s an d l e s s *

These f i g u r e s were g l e a n e d from v e n d o r s .

To c a l c u l a t e t h e g r o s s i n c o m e f r o m c i r c u l a t i o n f o r the f i r s t ta b lo id ;

f i s c a l year of op eration fo r an a v e r a g e

«

^

of 2 .5

t h i s Los A n g e l e s

c e n ts revenue per paper i s

Q

used."

C on tin u in g to u se th e f i g u r e o f 1^ 0,000 a s t h e a v era g e t o t a l even in g c i r c u l a t i o n f o r th e year,

t o t a l incom e fro m c i r c u l a ­

t i o n w as d e t e r m i n e d t o a m o u n t t o a b o u t $ 1 , 0 9 5 > 5 0 0 .

If th is

amount c o r r e c t l y r e p r e s e n t s 4 0 p e r c e n t o f t h e g r o s s e a r n ­ i n g s from c i r c u l a t i o n a n d a d v e r t i s i n g , the g r o ss eq u al to

the p r o p o r tio n a lly

e a r n in g s from b o t h c i r c u l a t i o n

and a d v e r t i s i n g a r e

§ 2 ,7 3 8 ,8 0 0 .

T u r n i n g now t o t h e a d v e r t i s i n g co m e , t h e g r o s s

s id e o f newspaper i n ­

e a r n i n g s from t h e f i r s t

The M i r r o r f r o m a d v e r t i s i n g a m o u n t e d t o

year of op eration fo r $1,6^ 3> 300,

if

the

f i g u r e s i n t h e p r e c e d in g paragraph were c o r r e c t . The amoun t a paper r a r e ly c o v e r s newspaper.

p u b l i s h e r g e t s f o r e a c h c o p y o f a nei'/sthe

c o s t o f p r i n t i n g and p u b l i s h i n g th e

C o n s e q u e n t l y h e must h a v e a n o t h e r s o u r c e o f i n ­

come w h i c h i s

d e r iv e d from s e l l i n g

fo r a d v ertisin g .

sp a c e in t h e newspaper

The a m o u n t o f s p a c e a v a i l a b l e i s w o r k e d

o u t on a p r e d e t e r m i n e d b a s i s o f a r a t i o news.

F o r The M i r r o r t h i s r a t i o

v ertisin g

of a d v e r tis in g to

r u n s a b o u t 35 p e r c e n t a d ­

t o 65 p e r c e n t n e w s .

Q ^The f i g u r e f o r a v e r a g e r e v e n u e was c o n c e d e d t o b e r e p r e s e n t a t i v e b y s e v e r a l unnamed s o u r c e s a t The M i r r o r .

79 A sid e from th e c l a s s i f i e d

colum ns in a new spaper,

a ll

o t h e r a d v e r t i s i n g i s known a s d i s p l a y a d v e r t i s i n g , w h i c h i s t h e more i m p o r t a n t s o u r c e o f r e v e n u e . c ircu la tio n

is

a r e made t o

its

th is b asis i s la tio n ,

t h e m o s t common b a s i s upon w h i c h r a t e c h a r g e s a d v ertisers.

a m illin e,

eq u ivalen t

in g i n one m i l l i o n behind t h i s

A m e t r o p o l i t a n p a p e r 1s

w hich i s

a u n it of

to one a g a t e l i n e ,

s p a c e and c i r c u ­

a c o lu m n w i d e ,

cop ies of a p u b lica tio n .

b a sis is

an a d v e r t i s e m e n t ,

A measurement u sed t h a t d e n o t e s

that

appear­

The r e a s o n i n g

a m e t r o p o l i t a n paj^er t h a t c o n v e y s

f o r exam ple,

to

a hundred and f i f t y

thousand

r e a d e r s i s w o r t h t w i c e a s much a s a p a p e r t h a t c o n v e y s t h e id e n tic a l p u b lic n o tic e

to only s e v e n t y - f iv e

thousand o f the

same r e a d e r s . D isp lay a d v e r tisin g r a te s

f o r a newspaper a l s o v ary

according to the typ e o f a d v e r t i s i n g . for general a d v ertisin g , v ertisin g ,

A fla t

is

charged

w i t h h i g h e r r a t e s f o r am u sem e n t a d ­

l e g a l and p o l i t i c a l a d v e r t i s in g .

w i l l d i f f e r accord in g to

rate

the p o s i t i o n

of the a d vertisem en ts

in t h e p ap er r e q u i r e d by th e a d v e r t i s e r s . a r e c h a r g e d f o r i:>ref e r r e d p o s i t i o n s .

These r a t e s a l s o

A d d ition al r a te s

R edu ctions

in r a te s

a r e a l l o w e d t o l a r g e a d v e r t i s e r s who c o n t r a c t f o r l a r g e amounts o f s p a c e

j u s t a s q u a n t i t y d i s c o u n t s a r e made i n

o th e r form s o f b u s i n e s s . D isp lay is

a d v ertisin g

i s d i v i d e d i n t o two t y p e s .

One

n a t i o n a l d i s p l a y w h ich in c lu d e s newspaper space bu yers

80 r e p r e s e n t e d by su ch n a t i o n a l c o n c e r n s a s a u t o m o b ile m anufac­ turers,

n a tio n a l liq u o r d i s t i l l e r s ,

tobacco p ro d u cts,

etc.

household a p p lia n c e s ,

N a t i o n a l ads a r e an im p o r ta n t

source

o f i n c o m e a n d a r e w e l c o m e d b o t h b y n e w s p a p e r s a n d l o c a l mer­ ch ants ca rry in g

the p r o d u c ts prom oted.

The o t h e r t y p e o f d i s p l a y a d v e r t i s i n g p lay.

The d e p a r t m e n t s t o r e s , f u r n i t u r e

s t o r e s a r e among t h e

is

stores,

lo ca l

d is­

and jew elry

lo c a l concerns p la cin g th e la r g e s t

am oun t o f l o c a l d i s p l a y a d v e r t i s e m e n t s w i t h n e w s p a p e r s . M irror p e r s o n n e l r e f e r to n a t i o n a l d i s p l a y a d v e r t i s i n g sim ply a s n a t io n a l a d v e r t i s in g .

A f la t general rate i s

charged n a t io n a l a d v e r t is e r s by t h i s

Los A n g e l e s t a b l o i d w i t h

a d d i t i o n a l c h a r g e s made f o r c o l o r o r p o s i t i o n r e q u i r e m e n t s . H igher f l a t p ictu re

r a t e c h a r g e s a r e made f o r am usem ent a n d m o t i o n

a d v e r tise m e n ts and p o l i t i c a l a d v e r tise m e n ts p la c ed

by n a t i o n a l a d v e r t i s e r s . fo llo w in g

F urther, play a d v e r tis in g

card*

em ployees o f t h i s

a d v ertisin g

resp ectiv ely ,

ta b lo id refer to lo c a l d is ­

sim ply a s d is p la y a d v e r t i s i n g . rates

f i e d as r e t a i l r a te s ,

f o r The M i r r o r a r e

serv ice ra te s,

in

se llin g

D isp lay turn c l a s s i ­

and a m u s em e n t r a t e s ,

in order o f ascen d in g r a te ch arge.

r a t e s a p p ly t o m erchants cept fo r

on a

p a g e b y a c o p y o f i n f o r m a t i o n c o n v e y e d f r o m an

a c tu a l n a tio n a l rate

(lo ca l)

These r a t e s are i l l u s t r a t e d

R eta il

goods over the counter ex­

sucn e sta b lish m e n ts as r e sta u r a n ts.

S erv ice r a te s

81 app ly to a d v e r tis e m e n ts p la c e d by p r o f e s s i o n a l p e o p le as m ed ical or d e n t a l, beauty shops,

and s e r v i c e

pest con trol,

estab lish m en ts

r e s t a u r a n t s and t h e

such

such as lik e.

Amuse­

ment r a t e s p e r t a i n t o a n n o u n c e m e n t s o f a n y e v e n t s o r o f f e r i n g s where a d m i s s i o n s a r e c h a r g e d ,

or f o r

a d v e r tis e m e n ts w h ich r e ­

q u i r e p l a c e m e n t on t h e am usem ent p a g e s by t h e a d v e r t i s e r s . Each o f th e a fo r e m e n tio n e d c l a s s e s o f

lo c a l d isp lay

r a t e a r e d i f f e r e n t i a t e d f r o m a Mt r a n s i e n t r a t e 11 w h i c h a p p l i e s t o o c c a s i o n a l and s m a l l tra n sien t ra te,

space a d v e r t i s e r s .

B esid es the b a sic

The M i r r o r l o c a l d i s p l a y a d v e r t i s i n g c o n t r a c t s

p r o v i d e f o r two o t h e r t y p e s o f r a t e s w i t h i n tio n .

One i s

“freq u en cy

space r a t e s ” w h ich p r o v id e f o r pro­

g r e s s iv e ly reduced r a te s accord in g to m o n th t o b e u s e d f o r a o n e m onth , p erio d .

The o t h e r i s

ra tes for q u a n titie s

each c l a s s i f i c a ­

in ch es o f

th r e e m onths,

space per o r s i x months

“open sp ace r a t e s ” w h ic h a l l o w r ed u c ed o f sp a ce in hundreds o f in c h e s con­

t r a c te d to be used w ith in

s i x m onths.

C o n s i d e r now c l a s s i f i e d a d v e r t i s i n g w h i c h r a n g e s f r o m strictly

p e r so n a l to r e a l e s t a t e and used c a r s .

S u c h w an t

ads p la c e d by s m a lle r a d v e r t i s e r s p r o v id e a p r o f i t a b l e o f incom e w h ic h i s

too o fte n overlook ed .

p le te ly n eg lected t h is f i e l d 1 9 AS,

and th e n p r o c e d e d t o

The M i r r o r com­

u n til the f i r s t

lead i t s

p a r t o f March,

aftern oon com p etitors

b o t h i n number o f a d s c a r r i e d and i n t o t a l l i n e a g e th a t tim e.

source

sin ce

82 As i n d i s p l a y a d v e r t i s i n g ,

there

are a l s o r ed u c tio n s

i n r a t e s made f o r m u l t i p l e i n s e r t i o n s o f c l a s s i f i e d tisem en ts. is

F or e x a m p l e ,

made f o r a f i v e

lin e

a sm aller charge per l in e

adver­ p er day

ad r u n n i n g one week t h a n f o r

the

same a d r u n n i n g one d a y . R eading n o t i c e s c o n s t i t u t i n g d isp la y a d v ertisin g ,

a n o t h e r s m a l l e r form o f

are p a id l o c a l a d v e r tis e m e n ts d i s t r i b u t e d

among n e w s c o l u m n s d i s g u i s e d a s n e w s i t e m s a n d l a b e l e d a s a d ­ v ertisem en ts

in sm all p r in t .

As n e w s p a p e r s i n c r e a s e

in t h e i r c i r c u l a t i o n

d e g r e e t h e y g e n e r a l l y make an i n c r e a s e rates.

However,

in t h e i r

ad v ertisin g

t h e b i r t h o f The M i r r o r was a c c o m p a n i e d b y

an u n p r e c e d e n t e d g u a r a n t e e t o a d v e r t i s e r s . made o f a minimum c i r c u l a t i o n

A p r o m i s e was

o f 100,000 du rin g th e f i r s t

s i x months o f c i r c u l a t i o n .w ith a g u a r a n t e e d r a t e in g th is p erio d .

t o any

F urther,

a ll

circu la tio n

in

ch arge dur­

e x c e s s o f the

minimum w o u l d c o m p r i s e a b o n u s f o r t h e a d v e r t i s e r s d u r i n g th is

first

six m o n th s.^

d isp lay a d v e r tisin g

T h is a p p l i e d to n a t i o n a l and l o c a l

on ly s in c e c l a s s i f i e d

n o t i c e s were n o t a c c e p t e d a t th e

ads and r e a d i n g

tim e.

A f t e r one month o f p u b l i c a t i o n w i t h t h i s in d u c e m e n t, The M i r r o r a l r e a d y i n c l u d e d among i t s

^ P r o g r e s s R eport Ho. 1,

contract a d v ertisers

f r o m The M i r r o r .

83 th ese accounts:

11

Local

(Los A n g e l e s

N ation al

82 p e r

c e n t m ajor downtown r eta ile rs c e n t m ajor g r o c e r y r e t a il o u tlets c e n t m ajor drug c h a in s

75 p e r

75 p e r 67 p er

60 p e r 80 p er

c e n t m ajor a u to m o b ile accounts c e n t major c i g a r e t t e accounts c e n t major a p p lia n c e accounts

Hate i n c r e a s e s w ere announced a t th e to g i v e

s i x t y day n o t ic e

end o f f o u r months

to a d v e r t i s e r s and a g e n c ie s b e f o r e

i n c r e a s e d r a t e s became e f f e c t i v e .

As a n a d d e d i n c e n t i v e t o

r e t a i n t h e i n i t i a l n a t i o n a l a d v e r t i s e r s and to tio n a l c lie n te le , en tire f i r s t creases

a ttr a c t ad d i­

no i n c r e a s e i n r a t e s was made d u r i n g t h e

year fo r n a tio n a l a d v e r tise r s.

i n r a t e s w e r e made

accordance w ith in c r e a s e s

fo r lo c a l d isp la y

However,

in ­

a d v ertisin g

in

in c i r c u l a t i o n and o th e r f a c t o r s .

In form ation a s c o n ta in ed in th e f i r s t

n a tio n a l d isp la y

a d v e r t i s i n g r a t e c a r d d i s t r i b u t e d b y The M i r r o r w a s a s fo llo w s: H a t e C a r d Humber l- T H E MIRROR-Evening E x c e p t Su nd ay GENERAL INFORMATION 1000-L in e (5-colum n) page. Column d e p t h , 1 4 - 1 / 2 i n c h e s . Or 2 0 0 l i n e s , 5 c o l u m n s t o p a g e . Column w i d t h , 1 2 eras p ic a or 2 Inches. Any a d v e r t i s e m e n t e x c e e d i n g 1 6 5 l i n e s i n d e p t h m u st r u n f u l l c o lu m n and w i l l b e s o c h a r g e d . COMMISSION A c o m m i s s i o n o f 1 5% i s

Loc.

c lt.

granted to r ec o g n ize d a g e n c ie s

8A i f b i l l s p a i d b y 1 5 t h o f f o l l o w i n g m onth. No c a s h d i s c o u n t . CIRCULATION G uaranteed average c i r c u l a t i o n 1 0 0 ,0 0 0 f i r s t m onths.

six

RATE GUARANTEE (As d i s c u s s e d p r e v i o u s l y ) RATES

GENERAL ADVERTISING

POLITICAL ( C a s h w i t h o r d e r )

S p a c e m ust be u s e d w i t h i n o ne y e a r . F la t , per lin e

A p p lie s to b o th propaganda and p e r s o n a l c a n d id a t e s . .2 5 F la t,

per l i n e

.50

Run o f P a p e r C o l o r C o lo r r a t e s ( b l a c k and one c o lo r only) On R e q u e s t C olor m ec h a n ica l r eq u ire m en t On R e q u e s t AMUSEMENT And M o t i o n P i c t u r e A d v ertisin g

Minimum s p a c e r e q u i r e m e n t s f o r p o l i t i c a l r a d io ads i s 70 l i n e s READING NOTICES-Not a c c e p t e d CLASSIFIED ADVERTISING-Not accepted POSITION REQUIREMENTS

M otion P i c t u r e A d v e r t i s i n g w ith or w ith o u t e x h i b i t o r ' s name F la t , per l i n e *35 A m use m ents F la t, per l i n e

F u ll p o sitio n Next to read in g S p e c i a l page

*50

L o c a l d i s p l a y r a t e s p e r colum n i n c h f o r t h i s du rin g th e f i r s t

50/o e x t r a 25% e x t r a 2 5% e x t r a

y e a r o f p u b l i c a t i o n xirere:

ta b lo id

85 -F ir st

S i x M onths-

G ls -ss o f ■p a t e

T ran sien t Rate

F req u en cy Space R a t e Range

R eta il

$ 3 •0 0 /in .

$2 .5 0 - 1 .7 5 /in .

$2.4 0

-

1 . 90/ i n .

S erv ice

3 -30/ in .

3-15 - 2 . 29/ i n .

3 .0 0

-

2 .4 5 /in .

Amusement

6 .0 0 /in .

4 .8 0 - 3 - 8 2 /in .

4 .6 0

- 4 .3 5 /in .

-

Open S p a c e R a t e Range

- S e c o n d S ix M onthsR eta il

3 -7 8 /in .

3-71 - 2 . 73/ i n .

3 .4 3

S erv ice

4 .1 3 /in .

3-99 - 3 -0 1 /in .

3-71 - 2 .9 4 /in .

2 .6 6 /in .

Amusement As i n t h e c a s e o f t h e n a t i o n a l r a t e s , above are a l s o

the l o c a l r a te s

su b je ct to a d d it io n a l charge f o r p o s it io n

re­

q u i r e m e n t s o f 50 p e r c e n t e x t r a f o r f u l l p o s i t i o n a n d 25 p e r cen t extra next paper’ s f i r s t

to r e a d in g m a tter .

year o f op eration th e se l a t t e r

w e r e n o t made i n o r d e r t o tisers.

The r i g h t

paper f o r i t s

H o w ever,

during the p o sitio n

charges

s e r v e a s an in d u cem en t to a d v e r ­

t o make t h i s c h a r g e w a s r e s e r v e d b y t h e

own p r o t e c t i o n

in th e e v e n t t h a t an a d v e r t i s e r

d em anded a p a r t i c u l a r p o s i t i o n . Want a d r a t e s Card N o . 1 ,

as l i s t e d

i n The M i r r o r Want Ad R a t e

E f f e c t i v e M arch 3> 1 9 4 9 ,

were a s I n d i c a t e d b e ­

low : GENERAL RATES

1 3 4 6 30

Time T im es T im e s T im es T im es

35/ 24/ 22/ 21/ 18/

per per per per per

lin e lin e lin e lin e lin e

86 EXCEPTION RATE NO. 1 L o s t & Found; Rooms; Room & B o a r d ; C h ild ren t o Board; Swaps

1 3 4 6

Time T im es Tim es T im e s

30^ 214 204 194

per per per per

lin e lin e lin e lin e

EXCEPTION RATE NO. 2 S t r i c t l y P erson al; S i t u a t i o n s Wanted (Cash i n Advance)

1 3 4 6

Time Tim es T im es T im es

15 4 124 ii 4 1 04

per per per per

lin e lin e lin e lin e

T h e r e a r e no p o s i t i o n As i n d i s p l a y a d v e r t i s i n g , lin es.

s p e c i f i c a t i o n s f o r want a d s .

th e ch arges per l i n e

Want a d s p r i n t e d i n t y p e

type are charged a c c o r d in g ly .

sizes

larger

For e x a m p le ,

are fo r agate

than a g a te

a c h a r g e f o r two

l i n e s w ould be

made f o r a o n e l i n e w a n t a d p r i n t e d

tw ice the s i z e

in h eig h t o f agate ty p e.

To g i v e

a co m p letely r e p r e s e n ta tiv e p ic t u r e

in type

o f incom e

d e r i v e d f r o m a d v e r t i s i n g b y The M i r r o r I n i t s

i n i t i a l opera­

tio n ,

lin ea g e carried

it

is

n e c e s s a r y t o know t h e a d v e r t i s i n g

in the paper during the p e r io d under c o n s id e r a t io n b e s i d e s k n o w i n g t h e r a t e s and t h e ra tio it

of a d v ertisin g

circu la tio n .

An e s t i m a t e

t o n e w s was g i v e n p r e v i o u s l y ;

i s d e s i r a b l e t o h a v e s o m e t h i n g m ore s p e c i f i c To s a t i s f y

and A p r i l ,

a n a ly sis

than t h a t.

1949*

t h e months o f F e b r u a r y ,

These f i g u r e s w ere determ ined, by

o f e a c h a f t e r n o o n paper i s s u e d

month p e r i o d .

however,

t h i s req u irem en t, w eek ly a d v e r t i s in g l i n e ­

age f i g u r e s were d e ter m in e d during March,

o f the

during the th r e e

I n a d d i t i o n t o The M i r r o r , c o m p a r a t i v e f i g u r e s

were d eterm in ed f o r th e

o t h e r two L o s A n g e l e s a f t e r n o o n

THE MIRROR

ORIGINAL

1 4 5 SO . SPRING ST.

-

MAdison 2311 ' .

The Mirror Enterprises Company.

. -

194_

Los A ngeles, Calif.

-

W$> a n d /o r I hereby authorize and promise to pay for the insertign of advertising for a period of______________ .months, beginning _____

194__ for__________ :

column inches for_____ _. days per week or

-

______

column inches open space gs per rates and conditions shown on the face and back hereof. “

.

' Firm

' - '_____ !

By---------------Address

RETAIL r a t e s

PER INCH

r-

4 inches 7 inches 14 inches 28 inches 42 inches 56 inches 7114 inches

2 Days W eek

2.50 in. 2.45 2.40 2.35 2.30 2.25 2.20

2.44-in. 2.39 •2.34 2.29 2.24 2.19 2.14

TRANSIENT - $3.00 per inch

*

1

SIX MONTHS >

, ■"

1 Day" W eek

2 Days W eek

4 Days W eek

2.38 in. 2.25 in. .* ^'2.40 in. ; 2.34 in.,;. '2-28 in. • • *2.25 - . 2^29— ^ 2 .2 3 2.33. . 2.21 ■ V 2 . 2 ^ ~ A 2.18 2,16 2.28 2.12 2.23 . 2.25 2.19 2.14 2.07 • 2.18 - 3 .2 Q -,. 2.14 2.09 2.14 2.03 2.15 .2.10 2.04 2.09 1.98 2.10 - 2.05 1,99

%

OPEN 100 250 500 1000

_ ----- :------------- :---------------------------- ,-------

THREE MONTHS

4 Days * 6 Days W eek W eek

_____________

Accepted for The Mirror by . .... .

• '

ONE MONTH 1 Day W eek




snowed t h e w e e k l y a v e r a g e o f t o t a l d i s p l a y a d v e r t i s i n g to run b e tw e e n 1 1 0 , 0 0 0 and 1 1 5 * 0 0 0 l i n e s . a v a ila b le fig u r e s ,

a w eek ly average f i g u r e o f 9 0 ,0 0 0 l i n e s

was e s t a b l i s h e d f o r th e amounts t o

On t h e b a s i s o f

first

f i s c a l year of op eration .

T h is

a t o t a l o f A ,A 20,000 l i n e s o f d i s p l a y a d v e r t i s i n g

fo r the year. The M i r r o r 1s d i s p l a y l i n e a g e r a n a b o u t 75 p e r c e n t l o c a l a d v e r t i s i n g and

25

per cent n a tio n a l.

w i t h t h e D a l l y Hews w h i l e 70 p e r c e n t

T h i s c o m p a re d

th e H erald and E x p re ss ran about

l o c a l a n d 30 p e r c e n t n a t i o n a l .

Space f o r amuse­

m e n t s and m o t i o n p i c t u r e s r a n a t a p p r o x i m a t e l y 1 5 p e r c e n t o f t h e t o t a l f o r The M i r r o r . average o f 67*500 l i n e s 2 2 ,5 0 0 l i n e s

of total

T h is amounts t o

s. w e e k l y

o f t o t a l l o c a l d is p la y lin e a g e and

n a t i o n a l d i s p l a y during the f i r s t y ea r

o f o p e r a t i o n f o r The M i r r o r . The p a p e r d i d n o t b e g i n i t s u n t i l March 3 , increased

to

19^9-

c la s s if ie d a d v ertisin g

Xt: b e g a n w i t h s i x p a g e s d a l l y a n d t h e n

e ig h t pages w ith a fu r th e r in c re a se a f t e r i t s

89 TABLE V WEEKLY DISPLAY ADVERTISING LINEAGE COMPARISON OF AFTERNOON NEWSPAPERS IN LOS ANGELES FOR FEBRUARY,MARCH,& A P R IL ,1 9 ^ 9 THE MIRROR W eek

2/7 -2 /1 2 2/1U- 2 /1 9 2/ 21- 2 / 2 6 2 /2 8 -3 / 5 3/7 -3 / 1 2

3/1>+- 3/19 3 / 21 - 3 / 2 6

3/ 28 - l*/2 k / k - V /9

b/11- k / 16 Vl8- V 2 3 V25- V 3 0

N a tio n a l 11*250 16080 171*10 13880 12070 22960 191*70 21690

26590 23 520

25630 26850

% of T o ta l

L ocal

23 21+ 23-5 21

1*7350 50160

18 28

51+660

26 23 25 25 25 25

56800 53i*10 58170 57390 70760 82760 721*90

75920 80860

% of T o ta l

77 76 76.5 79 82 72 71* 77 75 75 75 75

T o ta l

W e e k ly A v g . o f b W eeks

61600 6621*0

7^210 67290

6731*0

66730

81130 76860 92V 50

79290

109350

96010 101550 107710

103^60

DAILY NEWS 2 / 7 -2 / 1 2 2 /11+-2 / 1 9

2/21-2/26 2/28-3/5 3/7 -3/12 3/11+-3/19 3/21-3/26 3/28-1+/2 1+A -i*/9 1+/11-1+/16 1+/18A/23 V25-V30

511*90 71850 1+2890 1*0530 33960 5H50 1+1+380 1*731*0 55550 1*81*60 52020

1*3060

29 33-5 25 22 19 26

25 25 25 25 27 20

126200 11*0050 131130 11*071*0 11*8280 11*7500 130130 11+1110 159250 11+2290 137690 16571*0

71 66 75 78

81 71* 75 75 75 75 73 80

177690 211900 171*020 181270

186220

18221+0

198650 17^510 1 8 8 ** 50

18 5960

211+800

190750 189710 208800

201020

HERALD-EXPRESS

-2 / 1 2 2/11+-2/19 2 /2 1 -2 / 2 6 2/28-3/5 3/7 -3/12 3/A-3/19 3/21-3/26 3/28-1+/2 b / h -1+/9 1+/II-I+ /1 6 V 1 8 - V 23 1+/25-1+/30 2 /7

650i*0 73390 83920

27.5 29 33

67080

28.5

780i*0 90i*50 77160 80600 82700

79510 91*900

73620

30 35 31* 30.5 28

169900 180760

170090 166680

181120 168890 1501*80

180270 209020

22

166660

38

15301+0 I8 3 0 1 0

28

72.5 71 67 71-5 70 65 66 69.5 72

68 62 no t *-

231* 9^0

25V150 251+010 233760 2 59160 2593^0 22761*0

260870 291720

2M+220

251750

21+6170 21*791+0

2 56630

260620

90

first

f i s c a l year of op eration .

D u r in g t h e l a t t e r 32 w eek s

o f the f i r s t

y e a r o f o p e r a tio n o f the paper,

37*615 l i n e s

p e r w e e k o f c l a s s i f i e d a d v e r t i s i n g was e s t i m a t e d

t o have b een ru n ,

or a t o t a l o f 1 ,5 7 6 * 8 8 0 a g a te l i n e s during

t h e p e r i o d f r o m M arch 3# T h is f i g u r e a ttem p ts to vertisin g

an a v e r a g e o f

appearing

1 9 4 9 > through O ctober 11,

19^9*

d is c o u n t a l l m a tte r o t h e r than ad­

i n t h e c l a s s i f i e d jjages s u c h a s s e c t i o n

h ead in gs. U sin g a w e ig h te d av era g e r a t e f i g u r e

o f $3*64 per

c o lu m n i n c h o r a p p r o x i m a t e l y $ 0 , 2 6 4 p e r l i n e , come f o r l o c a l d i s p l a y a d v e r t i s i n g a m o u n t e d t o ing th e f i r s t

year o f op eration .

The a v e r a g e

the gross in ­ $ 9 2 6 ,6 4 0 dur­ rate fig u re

u s e d was b a s e d on a w e i g h t e d c o m b i n a t i o n o f t h e l o c a l r e t a i l , serv ice,

and am u sem e n t r a t e s .

A c co u n t was ta k e n f o r d e ­

c r e a s e d r a t e s f o r m onthly c o n t r a c t s p l u s an o v e r a l l i n c r e a s e m onths o f p u b l i c a t i o n .

and open s p a c e c o n t r a c t s

in lo c a l r a te s a f t e r I f anyth ing,

the f i r s t

six

th e e s t i m a t e might be

too h igh . For n a t io n a l r a t e s a w e ig h ted average f i g u r e o f $ 0 .3 0 per l i n e

w as u s e d t o c o m p e n s a t e f o r g e n e r a l r a t e s f o r t h e

m a j o r i t y o f t h e a d v e r t i s i n g p l u s a m usem ent a n d p o l i t i c a l rates.

At t i l l s r a t e ,

a m o u n te d t o

th e g r o s s incom e from n a t i o n a l d i s p l a y

$3 5 0 , 0 0 0 d u r i n g t h e

first

year of op eration .

In d e t e r m i n i n g t h e g r o s s incom e f o r c l a s s i f i e d v ertisin g ,

ad­

a w e i g h t e d a v e r a g e want ad r a t e o f $ 0 . 2 0 p e r l i n e

91 w as u s e d w h i c h t a k e s i n t o cep tion ra te no. m u ltip le

1,

co n sid era tio n g en eral r a te s ,

e x c e p tio n r a le no.

in sertio n s th ereof.

in th e f i r s t

2,

and d e c r e a s e s f o r

G-ross c l a s s i f i e d

y e a r o f o p e r a t i o n from

ex­

income w i t h ­

w eek s r u n n in g amounted

t o $2 h0 , 7 0 0 T o t a l g r o s s incom e from a l l

a d v e r t i s i n g b a s e d on

t h e s e e s t i m a t e s im m e d ia t e ly p r e c e d i n g amounted t o § 1 ,5 1 7 > 3 8 0 f o r The M ir r o r * s f i r s t lo w e r than th e sen tin g

T h is f i g u r e

runs

$ 1 , 6 ^3 * 3 0 0 a s p r e v i o u s l y e s t i m a t e d a s r e p r e ­

60 p e r c e n t

of the t o t a l g r o ss

t i o n and a d v e r t i s i n g . incom e,

year of fu n ctio n .

income from c i r c u l a ­

W i t h t h i s new f i g u r e f o r a d v e r t i s i n g

t h e new t o t a l i n c o m e f r o m b o t h c i r c u l a t i o n a n d ad ­

v ertisin g

am ounts t o $ 2 , 6 1 2 , 8 8 0 .

However* t h e r e a d e r m ust

be r e m i n d e d t h a t a l l f i g u r e s r e l a t i n g and o p e r a t i n g

expense a r e m erely e s t i m a t e s .

Budget and c r e d i t the m atter o f bu d getin g,

p ra ctices.

In c o n s id e r in g f i r s t

the I n i t i a l

p r o g r a m f o r The M i r r o r

w a s s e t up o r i g i n a l l y b y t h e Company.

t o o p e r a t i n g income

c o m p t r o lle r o f th e T im es-M irror

The b u d g e t p o l i c y w a s e s t a b l i s h e d b y t o p m ana ge­

m ent d u r i n g t h e the plan n in g

series

stages

o f m ee tin g s th a t took p la c e during

o f the paper.

i n s t e a d o f u s i n g m onthly i n t e r v a l s , as a c lo s in g p erio d .

For new spap er o p e r a t i o n s , every fo u r weeks i s

used

T h is i s b e c a u s e f r a c t i o n s o f a week

c o n s t i t u t e a m e a s u r a b le d i f f e r e n c e w i t h a p r o d u c t t h a t must be turned out

s i x days a week,

i n t h e i n s t a n c e o f The M i r r o r .

92 On t h i s b a s i s

there

are t h ir t e e n

year in s te a d of tw elv e,

accou n tin g p e r io d s per

and a n n u a l r e p o r t s a r e i s s u e d c o v e r ­

ing o p e r a tio n s f o r the e n t ir e

year.

However, w i t h i n

the

T i m e s - M i r r o r Company o p e r a t i n g c o m p a r i s o n s a r e o f t e n made on t h e b a s i s o f 12 f o u r w e e k p e r i o d s i n s t e a d o f 13* r e p o r t s may r e a d :

Su ch

11E l e v e n M onths E n d e d N ovem ber 3 0 and T w e l v e

P e r i o d s Ended December 1 ,

1 9 ^ 6 . 11

A lth ou gh ev ery f o u r weeks i s

a c lo s in g p erio d ,

top

m a nag e m en t a n d d e p a r t m e n t m a n a g e r s o f The M i r r o r h o l d w e e k l y b u d g e t l u n c h e o n s d u r in g w h ic h t i m e d e p a r t m e n t m anagers sub­ m it w e e k ly b u d g e t r e p o r t s and e x p l a i n any "u nd erages" 11o v e r a g e s M t h a t o c c u r .

or

Records o f such r e p o r ts are kept i n ­

d i v i d u a l l y by d ep a rtm en t managers and c o l l e c t i v e l y by th e a c c o u n tin g departm ent o f th e paper.

Thus a p r o p e r a l l o c a ­

t i o n o f e x p e n s e s c a n b e made t o d i f f e r e n t The i m p o r t a n c e o f

s u c h recom m end ed r e c o r d k e e p i n g a s

c a r r i e d o u t b y The M i r r o r , i s r e c e n t U.

departm ents.

illu stra te d

s t a r t l l n g l y by

S . D e p a r t m e n t o f Commerce f i g u r e s w h i c h s h o w t h a t

i n a d e q u a t e r e c o r d s a r e r e s p o n s i b l e f o r a s much a s 50 p e r cen t o f f a i lu r e s in a l l

lin es

of b u sin ess.

O u t s t a n d i n g among t h e p r o b l e m s o f n e w s p a p e r s i s t h e m atter o f c o st a n a ly s is .

F u n d am en tally,

th e a ssig n m en t o f e x p e n se s t o o b j e c t s ,

cost a n a ly sis

and incom e t o

sources.

S in ce a paper has r e l a t i v e l y f i x e d fundam ental o u t l a y s , a n a ly sis

is

cost

sn o w s w h i c h i n c r e a s e s o f o u t l a y a r e p r o d u c t i v e o f

prop ortion ate

in crea ses

in

incom e.

T u r n i n g now t o c r e d i t p r a c t i c e s , on t h e p o l i c y m en d e d . count,

o f th e paper as to what r u le

However,

in a l l

su b scrip tio n s

v ertisin g

a g r e a t d e a l depends sh o u ld be recom­

c a s e s where doubt e x i s t s

i n an a c ­

s h o u l d be c o l l e c t e d i n a d v a n c e a n d a d ­

a cco u n ts p a id p r io r to p u b lic a t io n .

The M i r r o r f o l l o w s a p r a c t i c e

fo r a d v e r tis in g accounts

o f a l l o w i n g a 3 0 d a y maximum o f t i m e f o r p a ym e n t o f b i l l s . New a c c o u n t s a r e b i l l e d proved by the

w eek ly.

I f an a c c o u n t . i s n o t ap­

c r e d i t departm ent o f

a c a s h payment i s r e q u i r e d .

t h e T i m e s - M i r r o r Company,

Ca sh p a y m e n t s a r e a l s o dem anded

fo r a l l p o l i t i c a l ad vertisem en ts. In th e

sade o f t h e n e w sp a p er s,

w i t h d e a l e r s whom i t

th is

ta b lo id contracts

r e q u i r e s t o be bonded.

of a d v e r tisin g accounts,

As i n t h e l i k e

th e se newspaper d e a l e r a c co u n ts are

a l s o a l l o w e d a maximum p e r i o d o f 3 0 d a y s f o r p a y m e n t o f b ills

f o r t h e i r c o n t r a c t e d amount o f p a p e r s . Trie T i m e s - M i r r o r b u s i n e s s o f f i c e s u t i l i z e

a m echanized

a c c o u n t i n g s y s t e m i n s t a l l e d b y I n t e r n a t i o n a l B u s i n e s s Ma­ ch in es,

Inc.

CHAPTER V I I

EVALUATION OF OPERATION (FIRST YEAR) P r o fit or l o s s * to p r o f i t

or l o s s ,

be $ 3 ,8 7 ^ ,0 0 0 w h ile

J u d g i n g The M i r r o r f i r s t

th e t o t a l o p e r a tin g c o s t was e s tim a te d to t h e g r o s s i n c o m e was g a u g e d t o b e a p ­

p r o x im a tely $ 2 ,6 1 2 ,8 8 0 during era tio n .

accord in g

the f i r s t

fisca l

y e a r o f op­

On t h i s b a s i s t h e r e w a s a n a p p a r e n t l o s s

$ 1 , 2 6 1 , 1 2 0 o r o v e r one and a q u a r t e r m i l l i o n

of

d o lla rs,

w ith ­

o u t a llo w in g any a m o r t i z a t i o n o f in v e s tm e n t. The o p e r a t i n g r a t i o total

eq u als

o p e r a t in g e x p e n s e = $ 3 ,8 7 ^ ,0 0 0 = 1^8^ t o t a l revenue $ 2 ,6 1 2 ,8 8 0

The m a r g i n o f l o s s

equals:

o p e r a t i n g l o s s = $ 1 , 2 6 1 , 1 2 0 = ^8 . 3 ^ t o t a l revenue $ 2 ,6 1 2 ,8 8 0 T h is amounts t o a s u b s t a n t i a l l o s s ; not e n tire ly

i t w as

u n e x p e c t e d a l t h o u g h t h e t o p m a nag e m en t had an ­

tic ip a te d that of recent

however,

t h e p a p e r w o u l d do much b e t t e r .

com parison,

As a m a t t e r

th e new ly merged new spaper c o r p o r a t i o n ,

t h e C h i c a g o Sun a n d T i m e s , l o s t a p p r o x i m a t e l y $ 6 , 0 0 0 , 0 0 0 d u rin g 19^8 and $ 2 ,0 0 0 ,0 0 0 V ir g il P in k ley , year of p u b lica tio n

i n 19^9*

on t h e a n n i v e r s a r y d a t e o f

o f The M i r r o r , O c t o b e r 1 1 ,

h is p erso n n el to g e th e r f o r a m eeting. s t a t e d th a t according to

the f i r s t

19^9,

ca lled

D u r i n g t h e m e e t i n g he

an a n a l y s i s b y t h e N a t i o n a l

95 A s s o c i a t i o n o f Newspaper P u b l i s h e r s ,

a new m e t r o p o l i t a n n e w s ­

p a p e r was n o t e s t i m a t e d t o b e a b l e t o b r e a k e v e n a n d s t a r t showing a p r o f i t f o r however,

or

seven years*

He s t a t e d f u r t h e r ,

t h a t t h e C h and lers e x p e c t e d t h i s pap er to s t a r t

showing a p r o f i t a t P ln k ley ,

six

the e n d o f f i v e

h im self, b e lie v e d i t

years of op eration .

Mr.

co u ld be a ccom p lish ed w ith in

a t o t a l o f three years o f op eration ,

o r two y e a r s more-

As d i s c u s s e d e a r l i e r i n C h a p t e r V I , from a n o t h e r l o c a l n e w s p a p e r s o u r c e ,

it

was r e p o r t e d

t h a t an e s t i m a t e d

i i , 0 0 0 , 0 0 0 h a d b e e n a l l o t t e d b y t h e T i m e s - M i r r o r Company managem en t t o a b s o r b t h i s

l o s s d u rin g

op eration

On t h e w h o l e ,

o f The M i r r o r .

w eathered i t s or hoped,

first

the e a r l y y e a r s o f th is

new t a b l o i d

year b e t t e r than i t s c o m p e tito r s e x p e cted

but n o t a s w e l l as i t s

p u b lis h e r s hoped.

The man­

agem ent had e x p e c t e d t o g a i n a n d h o l d an a v e r a g e d a i l y c i r ­ cu la tio n

o f o v e r 2 00,000 by the end o f the f i r s t

e x p e c t e d t o do e x c e e d i n g l y b e t t e r i n b u i l d i n g n ation al d isp la y a d v e r tisin g situ a tio n

lin ea g e.

reached a near stalem ate w h ich r e s u l t e d in th e

a d v ertisin g

d e p a r tm en t head and h i s in January,

m a g a z i n e came o u t w i t h a n a r t i c l e "**The P r e s s ,

In f a c t ,

the lin e a g e

rem oval o f the d is p l a y su bord in ate

in charge o f

1950.

In r e g a r d to c i r c u l a t i o n ,

19 A8.

up l o c a l a n d

a t th e end o f the f i r s t

f is c a l year,

lo c a l d isp la y

y e a r and

o n D e ce m b e r 2 0 , in w h ich i t

1 9 ^ 8 > Time

was stated:**"

11C l o u d e d M i r r o r , 11 T i m e , 5 2 : 7 8 ,

Dec.

20,

96

The T i m e s ( n e w s p a p e r ) w as s c a r e d ; i t had a s i c k c h i l d on i t s h a n d s . F or t h e f i r s t f e w d a y s o f i t s l i f e , the h i g h l y b a l l y h o o e d M i r r o r ha d r u n o f f 5 0 0 , 0 0 0 c o p i e s a day. B u t a s i t s c u r i o s i t y a p p e a l wore o f f , c i r c u l a t i o n had plum meted b e lo w t h e 1 0 0 ,0 0 0 g u a r a n t e e d to a d v e r t i s ­ ers. L a s t week t n e M ir ro r even r e f u s e d t o t e l l t h e ad­ men how much c i r c u l a t i o n t h e y w e r e b u y i n g . E stim ates w e r e som ewhere b e t w e e n 7 5 * 0 0 0 a n d 3 5 * 0 0 0 . In r e p ly to

th is

a ccu sa tio n ,

V i r g i l P i n k l e y comm ented

i n r e s p o n s e t o an E d i t o r and P u b l i s h e r r e q u e s t f o r a f u l l statem ent

o f M irror p r o g r e s s ,

The c o n t e n t o f

c h a n g e s and “ s e t t l i n g

dow n.”

the a c c o u n t p r i n t e d by E d i t o r and P u b l i s h e r

was a s f o l l o w s : ^ The L o s A n g e l e s M i r r o r a v e r a g e d i n " e x c e s s o f 1 0 0 , 0 0 0 " d a i l y n e t p a id c i r c u l a t i o n d u rin g i t s n in e weeks o f e x ­ i s t e n c e t h r o u g h D e c . 1 1 , a c c o r d i n g t o an a u d i t made b y t h e a c c o u n t i n g f i r m o f E r n s t a nd E r n s t . The M i r r o r c a lle d fo r a c e r tif ie d , p u b lic account o f i t s c ir c u la tio n a f t e r Time m a g a z i n e p u b l i s h e d t n a t c i r c u l a t i o n "had p l u m m e t e d beloxv t h e 1 0 0 , 0 0 0 g u a r a n t e e d t o a d v e r t i s e r s . " S p e c u l a t i o n on M i r r o r c i r c u l a t i o n i t s e l f , Time a l s o s a .i d s a i d " e s t i m a t e s w e r e s o m e w h er e b e t w e e n 7 5 * 0 0 0 a n d 3 5*000." V i r g i l P i n k l e y , e d i t o r and p u b l i s h e r o f t h e M i r r o r c o r r e c t e d , t h e Time r e p o r t a s s o o n a s i t a p p e a r e d , c h a r ­ a c t e r i z e d t h e Time f i g u r e s a s " s i l l y and f a r c i a l " a n d p r o m i s e d t h e o f f i c i a l a u d i t r e p o r t a s s o o n a s i t co u ld , b e made. (The r e p o r t r e n d e r e d , b y E r n s t a n d E r n s t g a v e o f f i c i a l v e r i f i c a t i o n o f over 10 0 ,0 0 0 c i r c u l a t i o n as s t a t e d i n t h e p r e v i o u s paragraxoh.) . . . ( h e ) e x p l a i n e d t h a t he p r e f e r s t o l e t ABC, t h e a c c e p t e d c i r c u l a t i o n g u i d e , " t e l l M irror a d v e r t i s e r s how much c i r c u l a t i o n t h e y h a v e b o u g h t i n t h e M i r r o r 1s g u a r a n t e e o f 1 0 0 , 0 0 0 d a i l y a v e r a g e n e t p a id , c i r c u l a t i o n . " . . . ."One p i e c e o f g o o d n e w s a d v e r t i s e r s h a v e a r i g h t 2

"L. A. M i r r o r A u d i t : In E x c e s s o f 1 0 0 ,0 0 0 ," E d it o r a n d P u b l l s l i e r , 13* D e c e m b e r 25* 1 9 ^ 3 . (A c o p y o f t h i s a r t i c l e was s e n t t o M irro r a d v e r t i s e r s . )

97

t o know i n a d v a n c e , 11 P i n k l e y s a i d , Hi s t h a t a v e r y c o n ­ s i d e r a b l e p r o p o r t i o n o f t o t a l c i r c u l a t i o n i s homed eliv ered . In f a c t , a s u r p r i s i n g l y h ig h p e r c e n ta g e — much h i g h e r t h a n e v e n we e x p e c t e d — o f o u r c i r c u l a t i o n i s h o m e - d e l i v e r e d . 11 At t h e e n d o f

the f i r s t

s i x months,

averaged w e ll over 1 0 0 ,0 0 0 c i r c u la t i o n v ertisers. cu la tio n

h ig h a s hoped f o r , end o f th e y e a r ,

c ir ­

y ea r o f o p e r a tio n averaged app roxi­

m a te ly 1 ^ 0 ,0 0 0 d a i l y n e t paid*

p erio d ,

as prom ised to ad­

And, a s e s t i m a t e d i n t h e p r e v i o u s c h a p t e r ,

for the f i r s t

of 175,000

t h e p a p e r had

Even th o u g h t h i s

a n o te o f optim ism e x i s t s

is

not as

in th at at the

a d v e r t i s e r s were g u a r a n t e e d a c i r c u l a t i o n

a v e r a g e n e t p a i d d u r i n g t h e n e x t s i x m onth

O ctober 11,

19^9 t o A p r i l ,

Break- even p o i n t . qu ired f a c t s ,

1950.

Not h a v in g a c c e s s t o a l l

the r e ­

i t w a s i m p o s s i b l e t o w o r k o u t an a c c u r a t e b r e a k ­

e v e n p o i n t c h a r t f o r t h e o p e r a t i o n o f the p a p e r a s was d e ­ sired .

N ev erth eless,

an h y p o t h e t i c a l c h a r t w i l l b e g r a p h e d .

The c o m p o n e n t on t h e i n c o m e s i d e d e p e n d s b o t h up o n c i r c u l a ­ tio n

and a d v e r t i s i n g w h i c h s h o u l d be more o r l e s s

pendent.

However,

as a paper in c r e a s e s i t s

in terd e­

c ircu la tio n ,

a d v e r tis in g lin e a g e does not a u to m a tic a lly in c r e a s e . a d v e r t i s i n g d e p a r t m e n t m u s t make t h e in m aintaining

and h o l d i n g

rate

a r e made;

and i n p r o m o tin g and s e l l i n g

age.

On t h e

expense

sid e,

its

b e s t u se of

c lie n te le

circu la tio n

is

its

as in c r e a s e s

its

A good efforts in

a d d itio n a l l in e ­

the b a s i c d e te r m in ­

i n g f a c t o r f o r p e r h a p s 3 0 -A0 p e r c e n t o f t h e e x p e n s e a c c o u n t s .

98

As c i r c u l a t i o n

in crea ses,

oth er prod u ction c o s t s

paper,

in k ,

t y p e , e q u ip m e n t, and

in crease.

B ecause o f the h i g h l y m echanized n a tu re o f p r i n t i n g a newspaper,

t h e r e a r e r e l a t i v e l y f e w e r v a r i a b l e c o s t s a s com­

pared w it h f i x e d e x p e n s e s and r e g u l a t e d e x p e n s e s w h ich con­ stitu te

constant c o s ts . D e lin e a tin g a b reak-even ch art in r e l a t io n

m e tr o p o lita n newspaper o p e r a tio n ,

to a

there are th ree c la s s e s

expense w h ich d i f f e r

acco rd in g to t h e i r r e l a t i o n s h ip 3 a d v e r t i s i n g and p a i d c i r c u l a t i o n incom e: 1. cu la tio n

to g r o s s

V a r ia b le e x p e n s e s , w h ich v a r y d i r e c t l y w i t h c i r ­ or c o p ie s o f newspapers so ld ;

and o t h e r

su p p lies;

r e c t lab or

news s e r v i c e s ,

expenses a lso

bad a c c o u n t s ,

in clu d e a part o f a d v e r tis in g

Insurance,

d i­

etc.);

and

V ariable

se llin g

costs

sold .

F i x e d e x p e n s e s , w h i c h do n o t v a r y u n l e s s

b u sin ess i s

ink

e tc .;

c o s t s and p l a n t o v erh ea d .

w h ich vary d i r e c t l y w i t h a d v e r t i s i n g 2.

In clu de paper,

(pressm en to run a d d i t i o n a l p r e s s e s ,

a part of d is tr ib u tio n

3.

of

c l o s e d down t e m p o r a r i l y — t a x e s ,

the

d ep recia tio n ,

In terest. R e g u l a t e d e x p e n s e s , w h i c h do n o t v a r y d i r e c t l y

w i t h a d v e r t i s i n g and c i r c u l a t i o n v o lu m e , b u t w h ic h ch a n g e from tim e to

tim e as a r e s u l t o f d e c i s i o n s u s u a l l y f o l l o w i n g

^ W a l t e r R a u t e n s t r a u c h and Raymond V i l l e r s , E v e n C h a r t , 11 Modern I n d u s t r y , ^ 0 - ^ 3 > D e c e m b e r 15*

11The B r e a k 19^8.

99 a s u b s t a n t i a l change ecu tiv e

sa la r ie s,

in

sa le s

volum e.

p rom otion al e x p e n se s,

B oth f i x e d and r e g u la t e d con stan t poses

at

These

a giv en

tim e

in

of a break-even c h a r t,

research,

expenses

rela tio n

in clu d e

ex­

etc*

(2 a n d 3 a b o v e )

to s a le s ,

are

and f o r p u r ­

a r e lum ped t o g e t h e r

as the

t o t a l c o n s ta n t exj)ense. In p r a c tic e

m ost d a i l y

A n geles T im es, d e r iv e tisin g

new spapers,

tw o -th ird s

of

th eir

and o n e - t h i r d from c i r c u l a t i o n .

in clu d in g

th e Los

incom e from a d v e r ­

In

its

fir st

year

I t w as e s t i m a t e d t h a t The M ir r o r d e r i v e d a p p r o x i m a t e l y 5 8 p e r c e n t from a d v e r t i s i n g is

and 42 p e r c e n t from c i r c u l a t i o n .

assum ed t h a t a s p a id c i r c u l a t i o n

sa me p r i c e

per copy o f 5 c e n ts )

m a in ta in t h i s

p resen ted

in

A fin a l

can be a t t a i n e d

the

top range o f the

the p a p e r 's o n ly part

ax is

In

the

o f an e x p e n s e

is

v a ria b le,

the

chart.

the

area.

p o ten tia l

w h ich r e p r e s e n ts

b r e a k down o f

co n sid ered v a r ia b le

the

of

of a break-even ch art fo r

op era tio n .

expense w i l l be illu stra te

v e rtica l

|7 > 0 0 0 ,0 0 0 ,

a maximum

ev en tu a lly as

th e m arket a n a l y s i s

f o r The M i r r o r i s

the

assu m ption i s

F o u n d e d on t h e a s s u m p t i o n s p r e c e d i n g , s a l e s volum e

(at

Los A n g e le s p o p u l a t i o n ,

to ta l circu la tio n

b a s e d on f a c t s

Increased

a n e f f o r t w i l l b e made t o

2 t o 1 incom e r a t i o .

made t h a t w i t h t h e p r e s e n t o f ' 30 0 , 0 0 0

is

It

e x p e n s e s where

50 p e r c e n t o f t h a t h y p o th etica lly

to

s

T 3 -t 3 3 a

1

a

m No. 290-F.

TH E H . COLE CO., CO LUM BUS, OHIO.

101 THE MIRROR

BREAK-EVEN CHART BREAKDOWN (HYPOTHETICAL) F i s c a l y e a r O cto b er 1 1 , 19^8 t o O cto b er 1 1 , 19^9 (m illio n s of d o lla rs T o ta l a d v e r t i s i n g and s a l e s ( e s t im a t e d ) - c o m p o s e d o f $8% a d v e r t i s i n g and h2 p e r c e n t c i r c u l a t i o n T otal expense

(estim a ted )

P a p e r , i n k and r e l a t e d s u p p l i e s News s e r v i c e s , ba d a c c o u n t s , e t c D ir e c t la b o r (pressm en, e t c . ) 50% s e l l i n g c o s t ( a d v e r t i s i n g ) 5 ON d i s t r i b u t i o n c o s t ( c i r c u l a t i o n ) 50.^ p l a n t o v e r h e a d T otal v a r ia b le T otal constant

expense expense

$2.61

13*87

3*87

$ .9 7 .08 .15 .1 0 .03 . 05 $1.38

^ 1 . 3 8 _________ $ 2.49

Loss (e s tim a te d )

# 1.26

T o ta l a d v e r t i s i n g and s a l e s ( t h e o r e t i c a l ) - i f Hw a n t ads" h a d r u n 5 2 x^eeks i n s t e a d o f 32

$2 . 7 6

T o ta l expense Loss

(estim a ted )

(th eo retica l)

T o t a l a d v e r t i s i n g and s a l e s ( t h e o r e t i c a l ) -com posed of t w o - t h ir d s a d v e r t is in g and o n e - t h i r d c i r c . T otal expense Loss

C estim ated)

(th eo retica l)

3*87 $ 1 .11

$3*29 3*87 $ .58

102 The t h e o r i z e d c la ssifie d total

effect

a d v ertisin g

expense

of a fu ll

in stea d of

(and c i r c u l a t i o n )

52 w eek s o f

the a c t u a l

32 w ith the

rem ain in g th e

same i s

il­

r e p r e se n ts a 6 per cent

in ­

lu stra ted

above*

crease

in

tota.1 in com e,

a 10 p er c e n t

v ertisin g

in com e a l o n e ,

and a r e s u lt a n t

in lo s s .

T his

p o in t to

T h is e f f e c t

run o f

in crea se

in t o t a l ad­

13 p e r c e n t

decrease

w ould c a u s e t h e h y p o t h e t i c a l b r e a k - e v e n

drop from a c u r r e n t

to $^>9 0 0 ,0 0 0 a s

$5*200,000

may b e o b s e r v e d on t h e b r e a k - e v e n c h a r t . T h eo rizin g quences

if

th ird s of year of

th is its

f u r t h e r , w hat w o u ld have b een

ta b lo id

total

op era tio n ?

la tio n ),

it

had b een a b l e to

sam e t o t a l

w ou ld have meant t h a t t h e

incom e w o u ld h ave had to

be

T h is

in

in

a 26 p e r c e n t

and c i r c u l a t i o n lo ss.

in crease

to

gross

a n d a 5^ p e r c e n t

The e f f e c t

have been

in

on t h e

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fir st

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tu r n w ould have

resu lted

incom e fro m a d v e r t i s i n g decrease

in

the e stim a te d

h y p o th e tic a l break-even

from th e

tw o-

t o ta l a d v ertisin g

in crea sed

w a s trie e s t i m a t e d g r o s s .

conse­

d eriv e a f u l l

in com e from a d v e r t i s i n g W ith th e

the

current

§ 5 * 2 0 0 ,0 0 0

p o in t w ould to

§ ^ ,270, 000. Thus, v ertisin g cu la tio n

th e p r o p o rtio n a tely g r e a te r

sig n ific a n c e

o f ad­

in com e a s com p ared w i t h in com e d e r i v e d from c i r ­ is

again w e l l d em on strated .

O ther f a c t o r s *

In

ev a lu a tin g

a new spaper or any

103 o th e r type o f b u s in e s s , sid ered b e s id e s and c e n t s . tisin g

those

other

fu n d a m e n ta ls m ust be c o n ­

rela ted d ir e c tly

The v o l u m e o f b u s i n e s s ,

rates

have been

and i n s t i n c t

of

tic u la r

these

case

management i s

the

c ircu la tio n ,

co n sid ered ,

p eop le

in term s o f d o ll a r s

b u t what a b o u t

running th e paper?

factors

and ad ver­

m eet t h e t e s t

w e l l q u a l i f i e d by v i r t u e

the a b i l i t y

In t h is

in th a t

the

par­

top-

o f r e c o r d and e x ­

p e r i e n c e w i t h o t h e r n e w s p a p e r and r e l a t e d b u s i n e s s e s . ever,

there

lev els the

of

may h a v e b e e n

management a s

a d v ertisin g

ture

is

g iv en N ext,

m arket f o r readers,

departm ent.

fu rth er

th is

in

su ffic ie n t

ta b lo id as to

clo se

c o n sid era tio n

m atter

in

advance

c ircu la tio n

low er

chapter. survey o f the area,

readers.

types

of

T h is f a c t o r

in an e a r l i e r c h a p t e r and

o f The M i r r o r .

i s g iv en

the

o rg a n iza tio n a l str u c ­

th e next

the

in

shake-up evoked in

The e n t i r e

a n a ly sis

was t h e r e

m erited o p e r a tio n th is

exam p led b y th e

and manner o f r e a c h i n g

was g i v e n

to

som ething la c k in g

How­

A d d itio n a l

C hapter IX ,

c o n sid era tio n

HThe P r o d u c t . H

The q u a l i t y a n d c a p a c i t y o f p l a n t a n d e q u i p m e n t c o n ­ stitu te cess

an im p o r t a n t

factor

for ev a lu a tio n .

o f The M ir r o r w e r e d e p e n d e n t

so lely

t h e r e w o u ld b e a b s o l u t e l y no q u e s t i o n because

of

its

tine c a p a c i t y p etito rs

of

fin e b u ild in g

of th is

the p r e s e n t ta b lo id

are

If

the

upon t h i s

of its

suc­ faotor,

p ro sp e rity ,

a n d e q u i p m e n t w i t h many t i m e s output.

The a f t e r n o o n

com­

n e a r t h e i r maximum o u t p u t

10^ w i t h t h e i r p r e s e n t eq u ip m en t and a r e a t t h e p o i n t o f d i ­ m in ish in g r e tu r n s f o r a d d it io n a l o u tp u t. The f a c t o r o f a p r o p e r b u s i n e s s o f f i c e ready been d is c u s s e d in co n n ectio n w ith t h i s w as f o u n d t o b e v e r y

a subject

to be d i s c u s s e d l a t e r in

c o n n e c tio n w i t h the prom otion d ep artm en t, The M i r r o r i s

It

is

a lso

needed b e fo r e a c h ie v e ­

m u st b e p o i n t e d o u t t h a t

d e a l o f c a r e must be e x e r c i s e d i n u s e d s o t h a t t h e y do n o t

extrem ely

e n g a g e d i n a c o n t i n u a l program o f

prom otion f o r w h ich f u r t h e r tim e i s m e n t can be J u d g e d .

newspaper and

s a t i s f a c t o r y a n d n e e d s no a d d e d com m ent.

S a le s prom otion,

im p ortan t.

sy stem has a l ­

a great

th e prom otional d e v ic e s

cheapen th e paper in th e

eyes of

th e rea d er and a d v e r t i s e r . These v a r io u s f a c t o r s not pretend to

t h a t h a v e b e e n p r e s e n t e d do

c o m p r is e e v e r y means o f

ev a lu a tin g

a news­

p a p er, b u t th e y s h o u ld a lw a y s be c o n s i d e r e d . In c lo s in g

th is

chapter,

a b i g advantage in fa v o r o f

o p e r a t i o n o f The M i r r o r s h o u l d b e e m p h a s i z e d . is

co n so lid a tio n .

is

because o f the p rod u ction f a c i l i t i e s ,

staff

A b ig

reason fo r e s t a b lis h in g

t h a t were a lr e a d y a v a i l a b l e .

o f p rodu ction f a c i l i t i e s m orning p a p e r , has r e s u l t e d

The a d v a n t a g e

and c e r t a in

th is

management,

greater u tiliz a tio n

and

I t m ea n t a c o n s o l i d a t i o n Jobs f o r th e Tim es, a

and t h e M i r r o r , an a f t e r n o o n p a p e r .

in l e s s

ta b lo id

T h is

i d l e n e s s o f p r o d u c tio n equipm ent; o f the c a p a c i t i e s o f

such J o i n t l y used

105 d ep artm en ts a s c r e d i t ,

p u r c h a sin g ,

v a n ta g e o f a c c e s s to th e

and p e r s o n n e l;

t a l e n t s o f t h e to p -m a n a g em en t o f

an a l r e a d y s u c c e s s f u l n e w s p a p e r ; tio n o f such b u sin e ss o f f i c e

and th e g r e a t e r u t i l i z a ­

fa c ilitie s

a s IBM e q u i p m e n t ,

m u l t i g r a p h a nd m im e o g r a p h , a n d s t o c k - r o o m .

i

th e ad­

CHAPTER V I I I ORGANIZATION OF THE NEWSPAPER

A n e w s p a p e r may a p p e a r t o h a v e b u t l i t t l e

i n common

w i t h t h e u s u a l c o n c e p t o f an i n d u s t r i a l m a n u f a c t u r i n g com pany o r a m e r c a n t i l e t y p e o f com p an y. ever,

r e so lv e

in to p o lic y ,

tie s,

and m eth o d s.

1

The p r o b l e m s o f a l l ,

o r g a n iz a tio n ,

p e r so n n e l,

_

L ik e any o t h e r e n t e r p r i s e ,

how­

fa c ili-

th e new spaper

m ust be o r g a n i z e d to f u n c t i o n e f f i c i e n t l y and u s e f u l l y i n s u s t a i n i n g p o l i c y and i n u t i l i z i n g

p e r so n n e l,

fa c ilitie s ,

and m eth o d s. Types o f o r g a n i z a t i o n s . k in d s o f o r g a n iz a t io n s r e l a t i n g

D i f f e r e n c e s among v a r i o u s t o n e w s p a p e r m anagem ent i n

o r d e r o f c o m p l e x i t y a n d o u t - r e a c h may b e c l a s s i f i e d

as

fo llo w s:^ 1. 2.

3.

W e e k lie s and s e m iw e e k lie s In dep en d en t d a i l i e s in a. Towns o r s m a l l c i t i e s b. C i t i e s o f medium s i z e c. Large c i t i e s C h a in o r g r o u p n e w s p a p e r s a. H earst b. S c r lp p s-H o w a r d c. P au l B lo c k d. B ru sh -M oore

A* C* A n d e r s o n , M. J . M a n d e v i l l e , a n d J . M. A n d e r s o n , I n d u s t r i a l M anagem ent (Hew Y ork : R o n a ld P r e s s Company, 1 9 ^ 2 ) , p* 7 3 ^ J am es E . P o l l a r d , P r i n c i p l e s o f N e w s p a p e r M anagem ent (New Y o rk : M c G r a w -H ill B o ok Company, I n c . , 1 9 3 7 ) > P* 19*

e. O th er C o o p e r a tiv e o r g a n iz a t io n s a. G eneral 1. N a tio n a l 2. S t a t e and r e g i o n a l b. S p e c ia l 1. A d v e r tisin g 2. C ircu la tio n 3* P ro m o tio n P r o d u c tio n

4.

The M i r r o r f a l l s sin c e

it

is

o n e o f tw o n e w s p a p e r s ow ned and. c o n t r o l l e d b y t h e

T i m e s - M i r r o r Company* m u ltip le

i n t o t h e c a t e g o r y o f a g r o u p nex^spaper

The M ir r o r m ig h t a l s o b e c a l l e d a

ty p e o f new spaper,

p y r a m id e d upon a n o t h e r o r i s est. is

T h is i s

w here one n ew sp a p er p r o p e r t y i s appended t o

th e

fir st

or stro n g ­

a c o m p a r a t iv e ly r a r e fo rm o f o r g a .n lz a t i o n and

u s u a lly lim it e d to th e g r e a t c h a in s or to

s e v e r a l o f th e

l a r g e r and f i n a n c i a l l y m ost p o w erfu l in d iv id u a l new spapers in th e n a tio n . W ith in any n ew sp a p er th e o r g a n i z a t i o n a l s t r u c t u r e d e ­ p e n d s t o a g r e a t d e g r e e u p on i t s tiv e ly

sim p le o p e r a tin g

siz e .

stru ctu re

in

ever,

t h e m ore c o m p l e x i s

th e b u s in e s s s id e . of

i t s b u sin e ss

th ere i s

o f l a b o r h a v in g

The l a r g e r t h e p a p e r ,

th e o r g a n iz a tio n ,

As a p a p er i n c r e a s e s in

how­

p a r t i c u l a r l y on siz e ,

t h e amount

a n d m e c h a n i c a l e m p l o y e e s o u tn u m b e r t h e e d i t ­

o r i a l e m p lo y e e s by f a r . siz e

a c o m p ara­

th e s m a lle r new spapers,

w e ek ly or d a i l y , w it h a n a t u r a l d i v i s i o n some o v e r l a p p i n g o f f u n c t i o n s .

T nere i s

F u rth er,

as th e paper in c r e a s e s

a g r e a t e r t r e n d tow ard s s p e c i a l i s a t i o n

w o r k e r t e n d s t o b ecom e a n e x p e r t o r s p e c i a l i s t

in

and e v e r y

i n some l i n e .

108 W h ile o r g a n i z a t i o n s o f a l l n e w s p a p e r s r e d u c e m ajor f u n c t i o n a l d i v i s i o n s c h a n ic a l

c la s sific a tio n s,

o f e d ito r ia l, b u sin e ss, n e w sp a p er s con form l e s s

to th r e e a n d me­

to fix e d

r u l e s o f o r g a n i z a t i o n th a n any o t h e r b u s i n e s s o f s i m i l a r and im p o r ta n c e.

siz e

A c o m p a r i s o n o f a l m o s t any tw o n e w s p a p e r s

w i t h d i f f e r e n t o w n e r sh ip s w i l l d e m o n stra te t h a t e x e c u t i v e s o r e m p lo y ees h o ld in g

sam e o r s i m i l a r

ly d iffe r e n t r e s p o n s ib ilit ie s .

T h us,

title s it

is

o ften

have w id e­

apparent th at

th ere i s

still

tio n a lly

a r o u n d p e r s o n a l i t i e s more t h a n a r o u n d j o b s .

ever,

a ten d en cy f o r new spapers to o r g a n iz e fu n c ­

i n more r e c e n t y e a r s

e c o n o m ic n e c e s s i t y

How­

h a s f o c u s e d m ore

a t t e n t i o n u p o n a n e w s p a p e r 1s b u s i n e s s a n d p r o d u c t i o n d e p a r t ­ m en ts w h ic h h as l e d t o and e f f i c i e n t

lin e s

t h e i r e s t a b l i s h m e n t a l o n g m ore u n i f o r m

o f o p e r a tio n

The o r g a n i z a t i o n tw o p a g e s

in

o f The M i r r o r i s r e l a t e d on t h e n e x t

c h a r t fo r m a s p r e p a r e d b y t h e i n v e s t i g a t o r

th rou gh th e a s s is t a n c e

o f Mr. J o h n A ndre s o n ,

t h e G e n e r a l M anager o f t h e M ir r o r .

th an in th e p a s t .

In a d d i t io n ,

T i m e s - M i r r o r Company a n d o f The

an a b b r e v i a t e d o r g a n i z a t i o n

t h e T i m e s - M i r r o r Company i s be seen in i t s

A s s i s t a n t to

p r e s e n t e d so t h a t

chart of

The M ir r o r may

r e l a t i o n s h i p a s a m ajor d i v i s i o n

of

t h e com­

pany . O w n e r s h ip a n d m a n a g e m e n t.

The o r g a n i z a t i o n a l s t r u c ­

t u r e o f a n ew sp ap er o r any o t h e r c o n c e r n i s a c co r d in g

to th e d ic t a t e s

of it s

o w n e r sh ip .

e sta b lish e d H ow ever,

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D){fl

I ll

e ffe c tiv e

o p e r a t i o n o f a c o n c e r n m ust be a t t a i n e d t h r o u g h

who m a n a g e s r e g a r d l e s s o f who ow ns t h e c o n c e r n * o f t e n fo u n d in sm a lle r p a p ers,

t h e l a r g e r p a p e r s , w h i c h i s common t o is

th a t

th e

same i n d i v i d u a l s

T h is w as t h e

f o u n d f o r b o t h T i m e s - M i r r o r Company p a p e r s .

Large p a p er s f a l l sh ip :

th e

r e p r e sen t b oth

th e m a j o r it y o w n e r sh ip an d th e to p -m a n a g em e n t. situ a tio n

A situ a tio n

in to

two p r i n c i p a l f o r m s o f o w n e r ­

i n d iv i d u a l and c o r p o r a t e .

M ost e a r l y d a i l i e s

used

o n e - p e r s o n o w n e r sh ip fo rm s w h ic h c o n t i n u e d th r o u g h th e p e r i o d o f p e r so n a l jo u r n a lism . b u s in e s s and in d u s tr y ,

Today,

lik e

o th e r form s o f b i g

m ost m e t r o p o lit a n n e w sp a p er s have

tak en ad van tage o f th e b e n e f i t s o f in c o r p o r a t io n : life ,

la r g e r c a p it a l,

lo n g e r

lim ite d person al fin a n c ia l l i a b i l i t y ,

and g r e a t e r f l e x i b i l i t y . * ^ The T i m e s - M i r r o r Company w a s i n c o r p o r a t e d i n n ia in O cto b er, th e

1 8 8 A .^

six d iv is io n s

shown on i t s

o f o w n in g and p u b l i s h i n g M ir r o r .

I t s b u sin e ss,

In a d d itio n

C a lifo r ­

a s can b e o b s e r v e d b y

o r g a n iz a tio n c h a r t,

c o n sists

t h e L os A n g e l e s T im e s a n d now The

t o t h e s e tw o d i v i s i o n s i t

m e r c ia l p r in tin g d i v i s i o n ,

ow ns a com­

th e T im es-M irr o r P r e s s ,

and an

I b i d . , p . 1 7 ; e t . R. W. W o l s e l e y and L. R. C a m p b e ll, E x p l o r i n g J o u r n a l i s m (New Y o r k : P r e n t i c e - H a l l , I n c . , 1 9 ^ 9 ) > h M o o d y 1s M anual o f I n v e s t m e n t s , A m e r ic a n a n d F o r e i g n I n d u s t r i a l S e c u r i t i e s , 19^9* ~

112 In v estm en t d i v i s i o n .

A lso ,

t h e com pany h a s r e c e n t l y

h o l d i n g s i n an O regon p a p e r m i l l ,

P u b lish e r s*

and i n a l o c a l t e l e v i s i o n

sta tio n ,

t h e Columbia. B r o a d c a s t i n g

S ystem .

Tne o f th e sin c e

P a p e r Company,

KTTV, i n c o n j u n c t i o n w i t h

f a m i l y o f H a rr y C h a n d le r h a s h e l d 6 8 . 9 p e r c e n t

o u tsta n d in g v o tin g S eptem ber 1 2 ,

s h a r e s o f s t o c k i n t h e com pany

1938.

The f a m i l y c o n c e r n e d i n t h e man­

a g e m e n t o f t h e com pany c o n s i s t s o f M a ria n 0 . o f H arry C h a n d l e r , Norman

a c q u ir e d

C h a n d le r ,

C h a n d l e r , w id o w

a n d C h airm an o f t h e B o a r d o f D i r e c t o r s . th e o ld e s t

son,

is

P r e s i d e n t o f t h e T im e s-

M i r r o r Company a n d p u b l i s h e r o f t h e L o s A n g e l e s T i m e s . b ro th er,

P h ilip

M anager o f t h e in

C h a n d le r ,

i s V ic e -P r e sid e n t in o ffic e r s

P in k le y ,

A n oth er b r o t h e r ,

charge

a l s o G -en eral

H a r r i s o n C h a n d le r ,

o f th e T im es-M irr o r P r e s s .

O ther

may b e o b s e r v e d fr o m t h e c h a r t .

m anagem ent o f

o r g a n iz e d c o n s is t e d

An i m p o r t a n t f a c t o r

t h a t P h i l i p C h a n d le r i s

M anager o f The M i r r o r .

The

V i c e - P r e s i d e n t a n d G -en eral

T i m e s - M i r r o r Company.

th is a n a ly s is i s

n o n -fa m ily

is

H is

t h e M ir r o r D i v i s i o n a s o r i g i n a l l y

o f th e E d ito r and P u b lis h e r ,

V ir g il

p lu s th e d e p a r tm e n ta l m anagers o f th e E d i t o r i a l ,

D isp la y A d v e r tis in g ,

and C i r c u l a t i o n D e p a r t m e n t s .

man C h a n d le r h a d p r e v i o u s l y and p u b lis h e r and a ls o P in k le y s e l e c t e d tn e

Mr. N o r ­

s e l e c t e d Mr. P i n k l e y a s e d i t o r

h ir e d th e a d v e r tis in g

c ir c u la tio n

e d i t o r and m ost o f t h e e n t i r e

m anager,

news s t a f f .

m anager.

t h e m a n a g in g

Mr.

113 Trie M i r r o r d i d n o t a t f i r s t tio n

d ep artm en t n o r a c l a s s i f i e d

The f u n c t i o n s o f p r o d u c t i o n ,

h a v e a n o r g a n i z e d promo­

a d v e r tis in g

p u rc h a sin g ,

d ep artm en t.

p e r so n n e l,

s e a r c h w ere and a re p erfo rm ed b y t h e o p e r a tin g

and r e ­

s t a f f d ep a rt­

m e n t s o f t h e T i m e s - M i r r o r Company w h i c h s e r v e o n e o r move d iv isio n s a lso is

o f t h e com pany b e s i d e s

The M i r r o r *

The M ir r o r h a s

had an A c c o u n t i n g D e p a r t m e n t ; h o w e v e r , t h i s d e p a r t m e n t

r e sp o n sib le

t o t h e T r e a s u r e r o f t h e T i m e s - M i r r o r Company.

A f t e r a f e w w e e k s o f o p e r a t i o n when c i r c u l a t i o n

had

t a k e n a l a r g e d r o p f r o m t h e o r i g i n a l r u n s , P h i l i p C h a n d le r w as c a l l e d

i n a s G -en eral M anager o f The M i r r o r a l o n g w i t h

h is a s s is ta n t, p o sitio n ,

J o h n A ndre s o n .

Mr. P i n k l e y m a i n t a i n e d h i s

w h i c h w as h e a d o f t h e d i v i s i o n , w i t h t h e g e n e r a l

m a n a g er d i r e c t l y b e l o w h im a n d o v e r t h e d e p a r t m e n t s i n l i n e o f a u th o r ity . A c tu a lly , a g o o d m ove t o

fr o m t h e

e sta b lish

s t a n d p o i n t o f o r g a n i z a t i o n i t w as th e p o s itio n

o f g e n e r a l m anager.

In m e t r o p o lit a n new spaper o r g a n iz a t io n s i t

I s a r e c o g n iz e d

p la n to h a v e a b u s i n e s s m anager r e s p o n s i b l e f o r d in a tio n

of

th e a d v e r t i s i n g ,

d e p a r t m e n t s .- * whom he i s

c ir c u la tio n ,

th e co o r­

and m ec h a n ica l

T h is a llo v js th e e d i t o r and p u b l i s h e r ,

su b o r d in a te ,

e d ito r ia l p o lic ie s

to

h a v e more t i m e t o d i r e c t

o f th e paper and to

to th e

d eal w ith a l l b u sin e ss

W o l s e l e y a n d C a m p b e ll , l o c . c i t .

114 d e p a r t m e n t s t h r o u g h o n e man. H ow ever, is

a c co r d in g

t o v a r i o u s m an agem en t s t u d i e s ,

it

d e b a t a b l e w h e t h e r an I n d i v i d u a l s h o u l d b e t h e g e n e r a l

m anager o f a d i v i s i o n

of

a company w h i l e a t t h e

i s g e n e r a l m anager o f t h e th a t t h is b ility

e n tir e

com p an y.

same t i m e he

I t w o u ld a p p e a r

in d iv id u a l c o u ld be o v e r -lo a d e d w ith th e r e s p o n s i­

of th ese

a ss is te d .

two a c t i v e

I t w o u ld a l s o

p o sitio n s

u n le s s he w ere w e l l

a p p e a r awkward t h a t t h e

sh o u ld be o v e r th e head o f a d i v i s i o n

In o n e p o s i t i o n w h i l e

su b o r d in a te to th e head o f t n i s d i v i s i o n T h is l a t t e r

in a n o th er p o s it io n .

s i t u a t i o n w a s amended, b y s e t t i n g

raent a r r a n g e m e n t w r ie r e , f o r a l l

in d iv id u a l

u p a d .u a l manage*

o r d in a r y p u rp o se s th e e d i t o r

an d t h e g e n e r a l m a n a g e r s h a r e t h e r e s p o n s i b i l i t y

fo r opera­

t io n o f th e p ap er.

T n is arran gem en t i s

show n on t h e o r g a n i ­

z a tio n c h a r t and i s

so m e w h a t s i m i l a r t o

tn e

m ost o f th e

sy stem u sed in

S c r ip p s-H o w a r d n e w sp a p e r s.

At l a t e r d a t e s d u r in g th e f i r s t

year o f o p e r a tio n o f

th e p a p er t h e P ro m o tio n D ep a rtm en t and th e C l a s s i f i e d A d ver­ t i s i n g D e p a r t m e n t w e r e add_ed to tio n

th e p o s it io n

In a d d i-

o f A s s i s t a n t t o t h e P u b l i s h e r w as e s t a b ­

l i s h e d and. f i l l e d . fo r a d m in iste r in g

th e o r g a n iz a t io n .

The M i r r o r S y n d i c a t e ,

Inc.

w as f o r m e d

s y n d i c a t e d e d i t o r i a l m a t e r i a l s and a n o th e r

a r r a n g e m e n t w a s made f o r

a c o o p e r a tiv e tie u p w ith th e in ­

d e p e n d en t Los A n g e le s r a d io an d n ew s b r o a d c a s t s .

sta tio n ,

KMPC, f o r n e w s - c o v e r a g e

115 D ep a rtm en tal f u n c t i o n s *

R e g a r d le s s o f o w n e r sh ip , a

m e tr o p o lita n paper has a g e n e r a lly r e c o g n iz e d o r g a n iz a tio n ­ al

stru ctu re:

a t h r e e - p a r t p l a n , b a s e d upon t h e m a jo r o p e r a ­

t i o n a l f u n c t io n s o f th e b u s in e s s d e p a r tm en ts, p artm en t,

e d ito r ia l de­

and m e c h a n ic a l d ep a rtm en t w it h c e r t a i n

ste m m in g f r o m e a c h .

s u b d iv is io n s

M anagem ent o f t h e s e d e p a r t m e n t s r e s t s

u s u a l l y w i t h t h e d e p a r t m e n t h e a d s who a r e r e s p o n s i b l e t o a p u b l i s h e r o r g e n e r a l m a n a g e r a s i n t h e c a s e o f The M i r r o r * C h a in n e w s p a p e r s o f t e n h a v e r e g i o n a l o r d i s t r i c t who e x e r c i s e

c o n tr o l over

T r a d itio n a lly and c i r c u l a t i o n

th e b u s in e s s d ep a rtm en ts o f a d v e r t i s in g

The a d v e r t i s i n g d e p a r t m e n t s e l l s a d v e r ­

s p a c e w h ic h b r i n g s

in c o m e o f sib ility

s e v e r a l p a p e r s a t once*

have b een c o n s id e r e d th e d i r e c t r ev en u e p r o ­

d u cin g d e p a r tm e n ts. tisin g

th e p a p e r .

in 6 0 -7 0 per c e n t o f th e g r o s s

T h is d ep artm en t h as a g r e a t e r r e s p o n ­

th a n m er ely ” s e l l i n g

ads*n

c a l l s on p r o s p e c t i v e a d v e r t i s e r s , copy to a p p e a l t o a d v e r t i s e r s ,

The s e l l i n g

ty p e,

o r to c a rr y o u t t h e i r r e q u ir e ­

se n d in g o u t p r o o f c o p ie s ,

in g a c c o u n ts in

job r e q u i r e s

p la n n in g and p r e p a r in g

m en ts, f o l lo w in g th r o u g h a d v e r tis e m e n ts t h a t in to

m anagers

have been s e t

an d s e r v i c i n g a d v e r t i s ­

o t h e r xvays.

The a d v e r t i s i n g d e p a r t m e n t s o f The M i r r o r a l s o c a r r y on a d v e r t i s i n g

p r o m o tio n th r o u g h d i r e c t m a il ca m p a ig n s,

a d v e r t i s e m e n t s p l a c e d i n The M ir r o r and t h e T i m e s , a d v e r t i s e ­ m en ts p l a c e d i n m a g a z in e s ,

and by m ea n s o f p e r s o n a l

116

p r e s e n t a t i o n s b y sa lesm en * T h i s n e w s p a p e r 1s d i s p l a y a d v e r t i s i n g d e p a r t m e n t i s d iv id e d in to v e r tisin g

t h e tw o s u b - d i v i s i o n s o f n a t i o n a l d i s p l a y a d ­

and l o c a l d i s p l a y a d v e r t i s i n g to f a c i l i t a t e

i n g t h e s e tw o t y p e s o f a c c o u n t s .

In a d d itio n

h a n d l­

t h is d ep a rt­

m en t h a s an a d s e r v i c e d i v i s i o n w h i c h d e s i g n s c o p y f o r a d ­ v e r tise r s

a n d a m a k e -u p d i v i s i o n w h i c h a s s e m b l e s t h e v a r i o u s

a d s a c c o r d i n g t o t h e way t h e y a r e t o b e p o s i t i o n e d an d p r in te d in th e paper. made r e s p o n s i b l e

to

The home e c o n o m i c s d i v i s i o n w as a l s o

th e d is p la y a d v e r tis in g

0 n ^he M ir r o r a n e n t i r e l y

d ep artm en t.

s e p a r a t e d e p a r t m e n t was

e s t a b l i s h e d t o m anage c l a s s i f i e d

a d v e r t i s i n g w h i c h w as n o t

b e g u n u n t i l s e v e r a l m o n th s a f t e r t h e p a p e r s t a r t e d . s e p a r a te d ep artm en t i s

u sed b eca u se o f th e g r e a t d iffe r e n c e

b etw een d is p la y and c l a s s i f i e d a d v e r t i s i n g .

Want a d s a r e

u s e d m a in ly by sm a ll s p a c e I n d iv id u a l a d v e r t i s e r s in b u y in g ,

se llin g ,

r e n tin g

o f g en era l p u b lic i n t e r e s t , As i n t h e

case

d ep artm en t i s

b y m ea n s o f l o w c o s t a d v e r t i s i n g .

o f The M i r r o r , t h e c l a s s i f i e d m o st o f t e n

situ a te d

a d v e r tis in g

on t h e f i r s t

f lo o r o f th e m ore r e a d i l y .

An e q u a l l y I m p o r t a n t b u s i n e s s d e p a r t m e n t i s

effo rts

in te r e ste d

o r e x c h a n g in g so m e th in g d e v o id

n e w s p a p e r b u i l d i n g t o a c c o m m o d a te f o o t t r a f f i c

c u la tio n

A

th e c i r ­

d e p a r t m e n t , w h i c h m u st f u n c t i o n e f f e c t i v e l y o f th e a d v e r t is in g ,

e d ito r ia l,

m en ts a r e t o r e a c h t h e p u b l i c .

if

th e

and m e c h a n ic a l d e p a r t­

The moment t h e

paper le a v e s

11? th e p r e s s ,

i t becom es j u s t

r e a c h e s th e r e a d e r .

so much m e r c h a n d i s e u n t i l i t

N ew spapers a r e s o l d

m en t t h r o u g h c h a n n e l s t h a t a r e s i m i l a r

th rou gh t h i s

d ep a rt­

to th o s e th rou gh

w h ic h o t h e r m er ch a n d ise t r a v e l s

to

so ld d ir e c tly

o th e rs to th e w h o le sa le r s ,

or d e a le r s,

to

th e r e t a i l e r s ;

th e consum er.

and th en t o t h e r e t a i l e r s ;

th e r e t a i l e r s

Borne a r e

and f i n a l l y

th rou gh

to th e cu sto m ers.

C i r c u l a t i o n on a w e l l - m a n a g e d m e t r o p o l i t a n b r i n g s f r o m 3 0 - ^ 0 p e r c e n t o f th e b e a c h i e v e d t h r o u g h an e f f i c i e n t

d ir e c t revenue.

d a ily , T h i s m u st

s y s t e m f o r o b t a i n i n g su b ­

s c r i b e r s and d e a l e r s a n d s e r v i c i n g th em s a t i s f a c t o r i l y t h e y a r e on t h e l i s t s .

M a in ta in in g

su ch a sy stem in v o lv e s

a d eq u ate r e c o r d k e e p in g ,

c ir c u la tio n -p r o m o tio n

and r a p id d i s t r i b u t i o n .

P a p e r s m u st b e w r a p p e d ,

s o r t e d p r o m p tly a f t e r p u b l i c a t i o n , m ea n s o f t r a n s p o r t a t i o n

once

a c tiv itie s , la b e le d ,

d is p a t c h e d by v a r io u s

to rea d ers,

and c o l l e c t e d f o r a t

in te r v a ls. At th e tim e o f t h i s

in v e stig a tio n ,

th e

c ir c u la tio n

d e p a r t m e n t o f The M i r r o r w a s r e s p o n s i b l e f o r

d is tr ib u tio n

of

Sundays, t o th e

s ix d if f e r e n t e d itio n s per day,

p u b lic b etw een fiv e

o 'c lo c k

d is tr ib u tio n down i n t o v isio n s.

th e h o u rs o f n in e o * c l o c k i n t h e

in th e e v e n in g . o f pap ers,

c ity ,

e x c lu d in g

To f a c i l i t a t e

m o r n in g t o

t h e s o r t i n g and

th e d ep artm en t i s f u r t h e r broken

c o u n ty and su bu rb an,

a n d home d e l i v e r y

d i­

118 A p r o m o t i o n d e p a r t m e n t w a s e s t a b l i s h e d f o r The M ir r o r w h i c h h a n d l e s a l l p r o m o t i o n and a d v e r t i s i n g its e lf

or th ro u g h n a t io n a l a d v e r t is in g

o f th e paper by

a g e n c ie s.

T h is d e ­

p a r t m e n t c a r r i e s on c i r c u l a t i o n p r o m o t i o n t h r o u g h p r i z e tests,

d i r e c t m a il c a m p a ig n s,

an d p r e p a r a t i o n o f p o i n t o f

con­

car card s, b illb o a r d s, b lo t t e r s ,

sa le

lite r a tu r e .

The d e p a r t m e n t

su p p le m e n ts t h e a d v e r t i s i n g p r o m o tio n o f th e a d v e r t i s i n g d ep artm en ts. P erson al s o lic it a t io n p ro m o tio n , tio n .

w h ic h i s

i s one o f th e b e s t m eth ods o f

a u g m e n te d b y t h e o t h e r f o r m s o f s o l i c i t a ­

U s e o f t h e p a p e r 1 s own c o lu m n s f o r

s a l e s m essages i s

a n o t h e r g o o d m e th o d f o r p r o m o t i n g c i r c u l a t i o n

and a d v e r t i s ­

in g . The M i r r o r 1s a c c o u n t i n g

d e p a r tm en t, w h ic h i s

a sta ff

d e p a r tm en t c o n t r o l l e d b y t h e T r e a s u r e r o f t h e T im es-M irr o r Company,

is

r e sp o n s ib le

fo r a ll c r e d it,

t i o n s o f th e paper e x c e p t f o r

b il3 .± n g s and c o l l e c ­

th e c o l l e c t i o n s

made b y t h e

c i r c u l a t i o n d ep a rtm en t. T h is new spaper d o e s n o t have t i o n d ep artm en t s i n c e t h i s o p e r a tin g d ep artm en t o f

e n g r a v in g ,

own c o m p l e t e p r o d u c ­

i s fu r n is h e d by th e

t h e T i m e s - M i r r o r Company s e r v i n g b o t h

t h e T im es a n d The M i r r o r . co m p o sin g ,

fu n c tio n

its

T h is d ep a rtm en t i s

ste r e o ty p in g ,

made up o f t h e

a n d p r e s s r o o m s w h o se

f u n c t i o n s have been p r e v io u s l y e x p la in e d .

The M i r r o r d o e s

h a v e a s e p a r a t e c o m p o s i n g room f r o m t h e T i m e s , h o w e v e r .

119 N o r d o e s The M i r r o r h a v e i t s so n n e l,

research,

o p e r a tin g d ep artm en ts o f

D u r in g t h i s i n v e s t i g a t i o n ,

c o n sid e r e d a r e s e a r c h fu n c tio n w ith in tisin g

d ep artm en t.

p u b lic b u s in e s s

its

th e T im es-

The M i r r o r h a d

own d i s p l a y a d v e r ­

The p a p e r a l s o m a i n t a i n s i t s

exchange

W o rk in g f o r c e in

per­

o r b u i l d i n g d e p a r t m e n t s , w hose f u n c t i o n s

are fu r n ish e d by th e M i r r o r Company.

own p u r c h a s i n g ,

(te le p h o n e )

own s e p a r a t e

system .

and -p erso n n el n o l l e i e s .

As d i s c u s s e d

t h e c h a p t e r on o p e r a t i o n a l e c o n o m i c s , t h e r e w e r e 3 5 0

r e g u l a r e m p l o y e e s w o r k i n g d _ i r e c t l y f o r The M i r r o r on M arch 1,

19^9» w h i c h r e p r e s e n t e d 16 p e r c e n t o f t h e T i m e s - M i r r o r

Company e m p l o y e e s . e m p lo y e d b y t h e p lo y e d in

O v er k2 p e r c e n t o f t h e s e

e d i t o r i a l d e p a r t m e n t , 1 7 p e r c e n t w e r e em­

t h e c o m p o s i n g room , a n d t h e r e m a i n i n g e m p l o y e e s

w e r e d i s p e r s e d t h r o u g h o u t th e As an a d j u n c t , and e f f o r t s

of

o th e r d ep a rtm en ts.

The M i r r o r u t i l i z e s

th e w o r k e r s o f t h e

t h e T i m e s - M i r r o r Company. u tiliz in g

e m p lo y ees w ere

th e c a p a c i t i e s

part of

th e tim e

o p e r a tin g d ep artm en ts o f

On M arch 1 ,

19^9,

The M ir r o r w a s

o f 1 2 p e r c e n t o f 2 2 6 p r e s s room

w orkers;

20 p e r c e n t o f 8 0 o t h e r p r o d u c t i o n d e p a r t m e n t

w orkers;

15 p e r c e n t

o f 131 g e n e r a l a c c o u n tin g w o rk ers;

p e r c e n t o f 38 p u r c h a s in g d ep artm en t w o rk ers; o f Id p e r so n n e l d ep artm en t w o rk ers. fr o m m onth t o m o n th a n d t e n d t o

15

a n d 20 p e r c e n t

T hese p e r c e n t a g e s v a r y

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120 In th e b e g in n in g excess of

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o f th is

new spaper’ s o p e r a tio n ,

a s s i s t a n c e w as h i r e d t o a c co m m o d a te t h e

e x t r a d e t a i l u s u a l l y e n c o u n t e r e d w h en a c o n c e r n i s g a n iz in g *

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an

o ff,

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y e a r o f o p e r a t i o n a num ber o f p lu s o th e r s in ord er to

reduce

some o f t h e e d i t o r i a l w o r k e r s

w ere d is c h a r g e d a s an econom y m ea su re.

S u c h m o v e s vie r e p a r t

o f an o v e r a l l p la n t o r e d u c e th e e n t i r e b u d g e t o f t h e p a p e r , in v ie w o f l e s s

r e v e n u e t h a n had b e e n e x p e c t e d .

In r e g a r d to th e p e r so n n e l p o l i c i e s

o f The M i r r o r ,

a.s a p a r t o f t h e T i m e s - M i r r o r Company, m o st p e o p l e h a v e h e a r d o r r e a d a b o u t t h e b o m b in g o f 1910.

th e T im es B u i l d i n g i n

The T im e s b r o c h u r e d e s c r i b e s

t h i s b om b ing a s c l i m a x ­

i n g a c r u c i a l y e a r f o r t h e T im e s d u r i n g a c o u n t r y - w i d e cam­ p a i g n by u n i o n s d i r e c t e d a g a i n s t n o n - u n i o n w o r k e r s a n d p r o ­ jects

c a r r i e d o u t w i t h n o n -u n io n la b o r *

men j o i n e d i n p r o t e s t i n g n ig h t o f th e c o n fe s s io n streets

a g a in st t h is

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o f t h e p e r p e t r a t o r s t h e dow ntow n

o f Los A n g e le s w ere l i t t e r e d w i t h th o u s a n d s o f c a s t ­

o f f u n i o n c a m p a ig n b u t t o n s . F o r o v e r tw o d e c a d e s p r i o r t o A n g e l e s T im e s h a d f o u g h t ca m p a ig n s and b o y c o t t s A m e r ic a n F e d e r a t i o n a c tio n a l l

to

th a t tim e ,

t h e L os

m a i n t a i n an o p en s h o p t h r o u g h

im p o se d by t h e l o c a l an d n a t i o n a l

o f Labor t y p o g r a p h ic a l u n io n s .

stem m ed b a c k o r i g i n a l l y t o

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1 8 8 7 w h en L o s A n g e l e s

121 fou n d i t s e l f

in

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e c o n o m ic c o l l a p s e -

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tine T im es a l o n g w i t h t h e t h r e e o t h e r L o s A n g e l e s n e w s p a p e r s ask ed th e

L os A n g e l e s T y p o g r a p h i c a l U n io n t o

m o d e r a t e w age r e d u c t i o n , str ik e .

b u t th e u n io n r e f u s e d and c a l l e d a

The T im es c a l l e d

l y w eath ered t h i s

approve a

str ik e

in in d ep en d en t p r i n t e r s and f i n a l ­ and th e a c t io n t h a t

W ith o u t g o in g i n t o any f u r t h e r d e t a i l ,

fo llo w e d . t h e T im es-

M i r r o r Company, a s a r e s u l t o f t h e s e e x p e r i e n c e s , str o n g ly fo r

11t r u e i n d u s t r i a l f r e e d o m 11 a n d a s

such a d vocates

t h e open s h o p a n d g i v e s n o o f f i c i a l r e c o g n i t i o n i n any o f i t s

d i v i s i o n s o r d ep a rtm en ts-

to any u n io n s

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c r i m i n a t i o n a g a i n s t a n y e m p lo y e e b e c a u s e o f r a c e , c o lo r ,

or o r g a n isa tio n a l a f f i l i a t i o n .

a p p lie s to

The M ir r o r a s a d i v i s i o n

The r e l a t i o n s h i p b e t w e e n t h e its

no d i s ­ creed,

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o f th e com pany. company m anagem en t an d

e m p lo y ees has a lw a y s b e e n u n u s u a lly f r i e n d l y .

p lo y e e s, th ey

has been

fr o m t o p t o b o t t o m , a r e

a r e a p a r t o f one b i g

com p an y,

g iv e n to u n d ersta n d th a t

11f a m i l y . 11

t h e T im e s b e c a m e o n e o f t h e

W ith t h e g r o w t h o f t h e

f i r s t new spapers to e s ­

t a b l i s h a f u l l - f l e d g e d P e r s o n n e l D ep artm en t a n d to f o r t h and d i s t r i b u t e p o lic ie s d iv isio n s

its

T h i s d e p a r t m e n t now s e r v e s a l l

o f t h e com pany i n c l u d i n g

s u r v e y s a r e u s e d by t h e

set

p e r s o n n e l a n d e m p lo y e e r e l a t i o n s

in p r i n t e d form .

Job e v a lu a t io n ,

A l l em­

m er it r a tin g

The M i r r o r * and s a l a r y a n d w age

com pany a s t h e m e a s u r e s f o r

122 d e te r m in in g f a i r and e q u i t a b l e pay s ta n d a r d s . tr ie s

to

eq u a l or b e t t e r

The com pany

u n i o n r a t e s p a i d t o c o m p a r a b le

p r o d u c t i o n w o r k e r s who a r e m embers o f

th e N a t i o n a l Typo­

g r a p h i c a l U n io n o r e d i t o r i a l w o r k e r s who a r e mem bers o f t h e A m e r ic a n N e w s p a p e r G u i l d . pany has c o n s i s t e n t l y

I n r e g a r d t o a d v a n c e m e n t , t h e com­

o p e r a t e d on a p o l i c y

o f “p r o m o t i o n

fr o m w i t h i n . 11 Th.e T im e s w as o n e o f t h e f i r s t th e 5-d a y ,

4 -0 -h o u r w e e k ,

new spap ers to adopt

and i s b e l i e v e d to be th e f i r s t

p r o v i d e tw o w e e k s v a c a t i o n itfith p a y f o r b o t h h o u rly -r a te

to

s a l a r i e d and

em p lo y ee s.

Among s e v e r a l e m p l o y e e b e n e f i t s p i o n e e r e d i n t h e n e w s ­ paper f i e l d ,

t h e T im e s m ore t h a n 20 y e a r s a g o e s t a b l i s h e d a

group in s u r a n c e p la n p r o v id in g l i f e , in su r a n c e f o r

its

by th e com pany.

e m p lo y ee s p a id in

sic k n e ss

f u l l or sh ared in

cost

H o s p ita l and s u r g ic a l in su r a n c e coverage

h a s s i n c e b een added w it h o u t c o s t t o is

e m p lo y ee s.

nurse

se r v ic e

ill.

The company a l s o h a s a r e t i r e m e n t p l a n

sh a rin g p la n .

and a c c id e n t

p r o v i d e d w i t h o u t c o s t f o r e m p l o y e e s who a r e

F u rth er, a la r g e

ro o m , a l i b r a r y ,

V isitin g

c a fe te r ia ,

a p h y s ic ia n and n u rse

and a p r o f i t -

a r e c r e a tio n

s t a f f e d d isp e n sa r y ,

a n d an e x c e l l e n t m o n t h ly e m p l o y e e n e w s p a p e r a r e p r o v i d e d . For th e a d d it io n a l b e n e f i t

o f e m p lo y ee s,

a w e l f a r e c o m m ittee

i s m a in ta in e d . An e m p l o y e e s s a f e t y c o m m i t t e e m akes r e g u l a r i n s p e c -

123 t i o n s o f th e

p la n t f a c i l i t i e s

in c o n n e c t io n w i t h a s a f e t y

i n s p e c t o r a n d a m an ag em en t s a f e t y

c o m m it t e e *

a i d men p r o v i d e a d d i t i o n a l p r o t e c t i o n i n t h e com pany d o c t o r a n d l o c a l t h a t t h e c o m p a n y 's s a f e t y

h o sp ita ls,

record i s

F ou rteen f i r s t

c o o p e r a tio n w ith d e s p ite th e fa c t

o n e o f t h e b e s t among

A m e r ic a n ne^^rspapers. Thus t h e r e i s g i v e s g e n u in e

good e v id e n c e th a t th e o r g a n iz a tio n

c o n s id e r a tio n fo r th e w e lfa r e o f i t s w orkers.

A l t h o u g h The M i r r o r h a s h ad v e r y a m i c a b l e r e l a t i o n s n ip s w ith i t s it

own e m p l o y e e s d u r i n g i t s

in itia l

o p e r a tio n ,

h a s e x p e r i e n c e d d i f f i c u l t y w i t h some 2 0 0 d a y s h i f t down­

to w n n e w s v e n d o r s , who c l a i m e d u n f a i r t r e a t m e n t . o f 19^9*

th is d iffic u lty

th e se vendors r e fu sin g t h e o u tc o m e o f t n i s

to

At th e end

f l a r e d I n t o a s t r i k e w i t h m o st o f s e l l The M i r r o r .

At t h i s w r i t i n g ,

d i f f i c u l t y w a s n o t known.

T hese n ew sven d ors a r e in d e p e n d e n t c o n t r a c t o r s ; a r e not e m p lo y ee s.

B o t h t h e N a t i o n a l L ab o r R e l a t i o n s B o a r d

a n d t h e c o u r t s h a v e so r u l e d . nor any o f th e

th ey

T h e r e f o r e , n e i t h e r The M ir r o r

o th e r m e tr o p o lita n Los A n g ele s new spapers

r e c o g n iz e t h e n ew sv en d o r a s e m p lo y ee s o p e r a t in g a s a u n io n . I n s t e a d th e y a re d e a l t w i t h as in d ep en d en t c o n t r a c t o r s . P r io r to

th e

e s t a b l i s h m e n t o f The M i r r o r ,

s h i f t v e n d o r s c o n t r a c t e d w i t h tw o n e w s p a p e r s , a n d t h e K e r a l a and E x p r e s s . g u a ra n tee t o th e v e n d o r s.

t h e s e d ay

t h e D a i l y News

Each g a v e o n e - h a l f o f a $ A l.5 0 When The M ir r o r cam e o u t ,

th ere

124

w ere t h r e e p a p e r s t o d i s t r i b u t e .

The o t h e r tx^ro n e w s p a p e r s

t h e n e a c h d e c i d e d t o a ss u m e o n l y o n e - t h i r d I n s t e a d o f o n e h a l f o f a $ 4 1 .5 0 g u a r a n t e e from s a l e s . new spaper, f e l t t h e number o f

th a t

sa le s

it

The M i r r o r , a s a new

c o u ld n o t e c o n o m ic a lly g u a ra n tee

on a n y s t r e e t

com er,

e v en th o u g h i t

s t a t e d t h a t I t w as i n t e r e s t e d i n t n e w e l f a r e o f i t s C o n se q u e n tly , to $2 7 .6 6

th e vendors*

fr o m t h e o t h e r

vendors.

g u a r a n t e e w as r e d u c e d fr o m $ 4 1 . 5 0

txvo p a p e r s .

The v e n d o r s '

argum ent

w as The M i r r o r s h o u l d g u a r a n t e e a c e r t a i n num ber o f s a l e s , or,

in e f f e c t ,

a c e r ta in

w age t o make up t h e o n e - t h i r d

b a la n c e . R e g a r d l e s s o f w h a t s h o u l d be d o n e , a n o b j e c t i v e v i e w o f th e

s it u a t io n g iv e s th e appearance th a t

n e w s p a p e r s e n g a g e d I n som e b u s i n e s s

t h e o t h e r tw o

s t r a t e g y w h i c h may o r

may n o t h a v e b e e n i n f l u e n c e d b y e c o n o m i c n e c e s s i t y . r e d u c tio n th is

o f t h e ir gu a ran tee

p a r tic u la r

T h e ir

to th e new svendors provoked

s i t u a t i o n b e t w e e n The M ir r o r a n d t h e v e n d o r s ,

w h ich , c a u s e d some r e d u c t i o n i n M i r r o r s a l e s . The M ir ro r * s d e f e n s e a r g u m e n t w as b a s e d on t h e s e fa cts.

The p a p e r s e l l s

fo r fiv e

cen ts,

and f o r

t h e n e w s v e n d o r m akes two a n d o n e - h a l f c e n t s , per c en t cen ts fo r is

c o m m issio n .

The v e n d o r a l s o g e t s

every sa le

w h ic h i s

two a n d o n e - h a l f

e a c h s e v e n c e n t a f t e r n o o n p a p e r he s e l l s ,

o n ly 35*7 p e r c e n t c o m m issio n .

vendor g e ts

$50 f o r

se llin g

50

Or i n ' d o l l a r s ,

w h ic h

t h e nex^s-

$100 w o r th o f M ir r o r s a n d o n ly

125 $35*70 f o r s e l li n g

$ 1 0 0 w o r t h o f e i t h e r o f t h e o t h e r tw o

m e tr o p o lita n a fte r n o o n n ew sp a p ers. W ith a c o m p a r a t i v e l y s m a l l e r am ount o f c i r c u l a t i o n t h a n e i t h e r o f t h e o t h e r tw o a f t e r n o o n n e w s p a p e r s , M ir r o r d i d n o t f e e l i t s a le s .

The

c o u l d g u a r a n t e e a n y e q u a l am oun t o f

CHAPTER IX

THE PRODUCT (THE DAILY NEWSPAPER) A k n o w led g e o f t h e p r o d u c t o f an y m a n u fa c tu r in g con­ cern, is

in t h i s

c a se a p r in t in g and p u b lis h in g

e sta b lish m e n t,

n e c e s s a r y f o r a c o m p l e t e d m anagem en t s t u d y .

A concern

may h a v e a n e f f i c i e n t o r g a n i z a t i o n o f e x c e l l e n t p l a n t a n d e q u ip m e n t w i t h p r o f i c i e n t m anagem en t a n d l a b o r ; b u t i n o r d e r to s ta y in b u s in e s s a s a la b le product i s fa c to r g iv e s

r e q u ir e d .

T h is

c a u se f o r an e x a m in a tio n o f th e f i n i s h e d p ro ­

d u c t i n t h e fo rm o f th e p r i n t e d M ir r o r n e w sp a p er . d e ta ils e n ta ile d

(T he

in th e p r e p a r a tio n o f th e p r in t e d new spaper

have a lr e a d y b e e n g i v e n . )

A l t h o u g h s u c h an e x a m i n a t i o n

in v o lv e s a degree o f u n q u a lifie d e d it o r ia l a n a ly s is ,

th is

is

n o t t h e m a in i n t e n t . T h is c h a p te r w i l l d e s c r ib e b r i e f l y t h e a fte r n o o n M ir r o r n ew sp a p er i n

its

f i n i s h e d form a s i n i t i a l l y

p u b lish e d ,

p l u s th e c h a n g e s and im p ro v em en ts t h a t w ere i n s t i t u t e d w i t h ­ in t h i s p e r io d o f stu d y . J o u r n a l i s t i c and p h y s ic a l d e s i g n .

The M ir r o r h a s b e e n

d e s c r i b e d a s an a f t e r n o o n t a b l o i d ty p e o f m e t r o p o lit a n new s­ paper.

A c tu a lly ,

i n L o s A n g e l e s t h e t e r m “m o r n in g p a p e r ” and

“a f t e r n o o n p a p e r ” a r e m is n o m e r s i n th a n new spapers a re

s o - c a l l e d m o r n in g

on s a l e t h e n i g h t b e f o r e , w h i l e t h e

so -c a lle d

127 a fte r n o o n new spapers a r e p u b lis h e d b e g in n in g a t n in e o ' c l o c k i n t h e m o rn in g . If th is

th e r e a d e r has p r e c o n c e iv e d p e r s o n a l o p in io n o f

new spaper,

it

is

p e r t i n e n t t o r e c a l l fr o m t h e m a r k e t

a n a l y s i s t h a t The M ir r o r w as n o t d e s i g n e d t o jo u r n a listic

sa tisfy

r e q u i r e m e n t s o r d em an d s o f t h e e n t i r e m e t r o ­

p o lit a n new spaper r e a d in g p o p u la tio n . p r o p e r ly s e r v e t h i s e n t i r e

Ho o n e p a p e r c o u l d

r e a d in g m ark et.

T h is p a p e r was

d e sig n e d a s a tru e t a b lo id w ith e y e -c a tc h in g p r e s e n ta tio n and th e e x c it e d J o u r n a lism r e q u i r e s .

sta te

c a m p a ig n s,

news c o v e r a g e , read ers. a lism ,

te c h n iq u e s o f

o f m ind t h a t

ta b lo id

E x p e r ie n c e h a s p ro v en t h a t w r i t t e n and

p h o t o g r a p h ic e m p h a sis o f it e m s i n v o l v i n g c o r r e c tiv e

th e

c rim e and s e x ,

has g r e a t a p p e a l to

c h ild r e n ,

in a d d it io n to

a n im a ls, general

a la r g e p r o p o r tio n o f

T h is ty p e o f tr e a tm e n t h a s b een c a l l e d s e n s a t io n ­

an d d o e s n o t a p p e a l t o a l l k i n d s o f r e a d e r s .

A great

many p e o p l e p r e f e r a c o m p a r a t i v e l y c o n s e r v a t i v e m e th o d o f news t r e a tm e n t a s o f f e r e d by t h e Los A n g e le s T im es, f o r ex a m p le.

H ot o n l y i s

p r e se n ta tio n , but a lso ever,

th ere a d iffe r e n c e

i n m e t h o d s o f n ew s

in th e k in d o f f e a t u r e s o f f e r e d .

t h e T i m e s - M i r r o r C o m p a n y 's s t u d i e s o f t h e

How­

in te r e sts of

p e o p le i n t h e L os A n g e le s M e tr o p o lita n A rea i n d i c a t e d t h a t th e l a r g e s t open f i e l d

o f a p p e a l was f o r a t a b l o i d

ty p e o f

new spaper. S u m m a r iz in g fr o m t h e e d i t o r i a l p a g e o f

th e f i r s t

128 e d itio n fir st tru th ,

o f The M i r r o r , t h i s

d u ty i s

to p r e s e n t

new n e w s p a p e r f e e l s t h a t i t s 1 th e tru th * To g i v e r e a d e r s t h e

th e paper o b lig a te d

1. fa st.

its e lf

R e p o r t news a c c u r a t e l y ,

2. T e ll b oth s id e s and la b o r new s, g iv in g ju d g e.

to : c o m p le te ly ,

fa ir ly ,

and

i n c o v e r i n g p o l i t i c a l , e c o n o m ic a l l t h e f a c t s from w h ic h t o

3* Open t h e c o lu m n s t o g i v e m i n o r i t y g r o u p s a f a i r h e a r in g , r e g a r d le s s o f r e l ig i o n or ra ce o r c r e e d . A. K eep t h e n e w s c o lu m n s f r e e o f e d i t o r i a l o r XDersonal o p i n i o n . News i s f a c t s , a n d m u st b e d e p e n d ­ a b le . E d i t o r i a l s a r e o n l y o p i n i o n , w h i c h may b e a c ­ cep ted or r e j e c t e d . The M i r r o r i s k e y e d t o th e m odern way o f l i v i n g . It i s g e a r e d t o t h e q u i c k e r tem po o f l i f e i n S o u t h e r n C a lifo r n ia . We l i v e m o r e , e n j o y more o u t h e r e . Our b e t t e r l i f e p u l l s t h o u s a n d s h e r e e v e r y m o n th t o make t h e i r hom es. I t n e e d e d a new k i n d o f n e w s p a p e r t o k e e p up w i t h t h e d r a m a t i c new l i f e we l i v e . R e a d i n g t r e n d s t h r o u g h o u t t h e w o r l d sh o w t h a t p e o p l e w an t n e w s p a p e r s more c o m p a c t , e a s y t o r e a d and e a s y t o h a n d le . So we s e l e c t e d f o r The M ir r o r a f o r m a t s i z e t y p i c a l o f t h e d y n a m ic a c t i o n o f C a l i f o r n i a a n d t h e W e s t. We w a n t t o s t r e s s c a r e f u l s e l e c t i o n o f t h e m o st I m p o r t a n t n e w s and p i c t u r e s e v e r y d a y , p r e s e n t e d f o r e a s y r e a d i n g and e a s y u n d e r s t a n d i n g . We w i l l p u t s p e e d an d v e r v e i n t y p e a n d p i c t u r e s on n e w s p r i n t . We w a n t t h i s t o be a human n e w s p a p e r , w i t h a f r i e n d l y p l a c e i n t h i s c o m m u n ity . We w a n t t o g e t down t o e a r t h e v e r y d a y . We w a n t t o do a g o o d j o b f o r y o u , a n d h a v e f u n d o i n g i t . Mr. R o b e r t C. P in k le y d u r in g

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some o f trie p h y s i c a l f e a t u r e s o f The M i r r o r .

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a v a ila b le .

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