Archive for the ‘Tariff’ Category

Service of Newspapers—When The Good Guys Win

Thursday, August 30th, 2018

Photo: philly.com

On one side of this post is a man who did extremely well, lived simply and used his fortune to help the newspaper industry, and many others. On the other is a private equity firm that pushed for a tariff against Canada to allegedly help some US businesses while threatening the survival of others. Amazingly, our system worked and the good guys won. Read on.

Gerry and Marguerite Lenfest. Photo: mercersburg.edu

“I can’t think of any cause that we support that’s more important than the support of the newspapers,” Mr. Lenfest said in 2014. That’s H.F. Lenfest, known as Gerry, who died early in August. James R. Hagerty wrote Lenfest’s obituary in The Wall Street Journal.

These weren’t just words for Lenfest and his wife Marguerite. They paid $88 million for the Philadelphia Inquirer, Philadelphia Daily News and Philly.com four years ago and in 2016, “donated that company to a nonprofit, now known as the Lenfest Institute for Journalism, charged with preserving quality journalism in Philadelphia and testing ideas that might sustain fact-based news reporting elsewhere,” wrote Hagerty.

In all, the Lenfests have given away $1.2 billion. In spite of Lenfest’s financial success in the cable TV industry, the family lived modestly—keeping the house they moved into in 1966, for example. Their son Brook said his father “rode city buses and flew coach” because people in coach were “more open to conversation.” [The Lenfests gave $14 million to Teach America after Gerry Lenfest chatted with the founder he met on the train to NYC.]

Photo: ehshumfinancial.com

At the same time as this stalwart attempt at saving an industry takes place the Department of Commerce was supporting a tariff on Canadian newsprint that would raise the price as much as 30 percent ringing the death knell for many papers and causing severe cutbacks in staff and production in others. The tariff was to save jobs here. It appeared to back wealthy cronies at a private equity firm who pushed for the tariff because they own a US newsprint business. Some wondered if there wasn’t another agenda: to cut off yet more arteries of information that feed [legitimate] news to communities across the country.

A few days before the International Trade Commission’s decision–made yesterday–William Mauldin told the story in: “Bad News for U.S. Papers, but Tariffs Are Paying Off for One Rock Capital –Private-equity firm headed by a Washington and Wall Street veteran pushed for the tariffs on behalf of its North Pacific Paper and hope they are affirmed in a coming trade-commission vote.”

Photo: en.wikipedia.org

He reported that after salaries, newsprint is usually a newspaper’s second biggest cost. The increased cost “threatens the viability of small-town papers across the country, forcing reduced publication days, layoffs and other cut backs. Canadian mills have historically supplied a large portion of U.S. newsprint.”

He continued: “Some industry observers say a Trump administration, led by a president antagonistic to the media, is unlikely to be sympathetic to newspapers.” A White House spokeswoman said such a claim is “absurd.”

So what happened yesterday? Tom Kludt and Jill Disis at CNN.com wrote: “In what amounts to a blow to the Department of Commerce, which upheld the tariffs earlier this month, the International Trade Commission found that the imports of Canadian paper do not hurt American producers. The commission’s vote was unanimous.” Commissioner David S. Johnson, a Texas Republican, serves as chairman.

Do you predict the success of the Lenfest Institute’s research may save the newspaper industry? Are philanthropists like the Lenfests who gain little more than personal pleasure from their generous gifts, few and far between? Were you surprised by the International Trade Commission’s unanimous decision regarding what Thehill.com called the “Trump tariffs?” Did you also see the proposed tariffs as the administration’s attempt to punish and diminish the fourth estate? Dare we extrapolate this decision, with David and Goliath overtones, as a turning point where responsible commissioners based their decisions on facts and not due to pressure from a bully–with more to come?

Photo: thedailystar.net

Get This Blog Emailed to You:
Enter your Email


Preview | Powered by FeedBlitz

Clicky Web Analytics