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</A> -Cui Bono?-

http://www.nzherald.co.nz/storydisplay.cfm?storyID=126175&thesection=news&thesubsection=world
20/03/00 - <i>LA Times</i> succumbs to whims of owners <br>

LOS ANGELES - If you have seen the movie Chinatown then you know at least a
little about the Chandler family, which last week stunned their hometown -
not to mention the head of their flagship company - by selling the Los
Angeles Times for $US8.4 billion ($17.2 billion).

The news came so suddenly that reeling reporters even felt a fleeting twinge
of sympathy for the newspaper chain's detested chairman Mark Willse, who was
sobbing as he announced the paper's purchase by the Chicago Tribune's media
empire.

Like the flabbergasted newsroom, and LA as a whole, Willse had no idea his
masters were bailing out. He was just one more dupe in what history will
regard as the final act of devious treachery by the family that have
controlled the paper since its birth 115 years ago.

The Chandlers' ink-stained thumbprint is all over modern Los Angeles.

After the First World War, their paper was a prime inspiration for a frenzy
of xenophobic paranoia that launched the federal agency soon to be known as
the FBI on a national rampage against radicals, Communists, Wobblies and
suspicious foreigners.

It was a campaign that served as a precedent for the McCarthy witch-hunts of
30 years later, which the paper also endorsed and defended long after
Tailgunner Joe's other allies had lapsed into an embarrassed silence.

In the 1930s, in the incident that inspired Chinatown, the Chandlers bought,
bribed, browbeat and blackmailed their way to take control of all the water
flowing through the agricultural Owens Valley, 400km from the parched City
of Angels. One day the small farmers could irrigate their fields; the next,
their water was gone, their crops dying and their families ruined.

Meanwhile, the liquid gold was diverted to the parched San Fernando Valley,
all of which the Chandlers owned. In the 1950s, the Chandlers put their
paper at the disposal of up-and-coming redbaiter Richard Nixon. And in the
sixties, they launched Ronald Reagan's political career by energetically
endorsing his bid to become Governor of California.

Five years ago, in a move that reflected how the most recent generation of
Chandlers had lost their appetite for hands-on management, the family trust
that controls the paper hired Willes to boost profits any way he chose.

Formerly the chairman of a breakfast-food company, his first move was to
sack 7000 employees and shut a money-losing paper in New York - corporate
carnage that saw him dubbed The Cereal Killer.

His next move was to populate the business side of the operation with
executives who not only knew nothing about journalism but also held its
ethical traditions in open disdain.

The timing of the whiz kids' arrival was truly ironic since, without the
Chandlers' active meddling, a succession of editors had transformed the
paper from a right-wing joke into one of America's greatest and most
reputable news organs.

Willse, who began his tenure on an alarming note by urging editors not to
run stories critical of advertisers, did not seem to care a jot about the
paper's hard-won integrity. Profits were booming and the stock price
quadrupled. This approach reached its nadir late last year when Willse's
handpicked corporate heir, publisher Kathryn Downing, cut a secret deal with
LA's new Staples Centre sports stadium, agreeing to split the profits from a
glossy magazine in the top-selling Sunday edition that commemorated the
arena's opening.

When the editorial staff found out about the secret pact, their resulting
protests over the breach of the "Chinese Wall" separating advertising and
editorial sparked a rancorous internal investigation that remains an open
sore with editors and reporters alike.

"There wouldn't be an LA Times if the Chandlers hadn't created it," said
author and former reporter John Gregory Dunne, who also pointed out that the
upcoming Academy Awards will be presented in the Dorothy Chandler Pavilion.

"But for them to cut and run like this, it's like being gut-shot. I still
can't believe they're cutting the cord."

Other staffers, particularly those who have worked for papers controlled by
the Chicago Tribune, saw their wonder at the Chandlers' sudden departure
tinged with no small degree of fear. Where the Chandlers have been merely
mercenary in their approach to the news business, the boys from Chicago have
made bloody ruthlessness a corporate motif.

With the LA Times' chain of media outlets in its pocket, the Tribune's
braintrust will soon control 11 daily papers, four radio stations, 22
television stations and the Chicago Cubs baseball team.

A sparkling roster of properties in itself, the Tribune sees the melded
empire as a springboard to a huge Internet presence that will tap the
traditional media outlets for content to fill a wide range of Websites and
e-commerce ventures.
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