from:alt.politics.org.cia
As, always, Caveat Lector
Om
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Click Here: <A HREF="aol://5863:126/alt.politics.org.cia:50877">The CIA's
Richard Mellon Scaife</A>
-----
Subject: The CIA's Richard Mellon Scaife
From: Alex Constantine <A HREF="mailto:[EMAIL PROTECTED]">alexx12@mediaone.
net</A>
Date: Sun, May 14, 2000 2:20 PM
Message-id: <[EMAIL PROTECTED]>

CJR
July/August 1981

Citizen Scaife, part2
     The small-bore publisher It was newspapers, however, not the world
of finance, that eventually captured Richard Scaife's interest. In 1969,
he made a successful offer of almost $5 million for the Greensburg,
Pennsylvania, Tribune-Review (daily circulation: 41,500), which was part
of an estate being handled by the Mellon Bank. Greensburg, a town of
20,000 people about thirty miles east of Pittsburgh, is the county seat
of Westmoreland County, which is a curious mix of, on the one hand,
working-class, mob-infiltrated towns, and, on the other, rolling hills
where Mellons ride to hounds. Scaife apparently has not scrimped on
costs at the paper, including salaries. He has lured at least two people
from the Pittsburgh dailies, and his Harrisburg bureau chief, J. R.
Freeman, says that it is his understanding that he can "go anywhere in
the world and stay as long as I want." The paper, housed in an
attractive, modern building on a Greensburg side street, routinely
features staff reports on Pittsburgh politics as well as local affairs,
depending on the wires for most national coverage.
Despite his vast resources, Scaife has not moved into the big leagues of
publishing. During the Nixon years, he was urged by at least one high
official in the White House to bid for The Washington Star, but he never
did. Pittsburgh acquaintances say that several years ago Scaife talked
about buying The Philadelphia Inquirer; however, Sam McKeel, president
of Philadelphia Newspapers, Inc., the Knight- Ridder group that owns the
Inquirer, says Scaife never made any overtures. Last year, Scaife
entered into negotiations to buy Harper's magazine, but nothing came of
those talks. Instead Scaife has settled for a modest collection of
holdings which include, in addition to the Tribune-Review the Lebanon
(Pennsylvania) Daily News and Sunday Pennsylvanian: two Pennsylvania
weeklies, The (Blairsville) Dispatch and the Elizabethtown Chronicle;
until recently a city magazine, Pittsburgher, which folded early this
year; and a new monthly business Sunday supplement called Pennsylvania
Economy, which began publishing last October. Elsewhere, he owns half of
two weeklies in California and half of The Sacramento Union, his largest
(circulation: 106,000) and only nationally known acquisition. Scaife
bought the half interest in late 1977 from John McGoff, a Michigan
publisher who is under investigation by federal authorities in
connection with alleged secret payments by the South African government
to permit him to buy news properties. (See "The McGoff Grab," CJR,
November/December 1979.) Various explanations are offered for Scaife's
failure to acquire a major national publication. Some acquaintances
speak of his dislike of publicity; others of his unwillingness, despite
his wealth, to spend the sums required. Pat Minarcin, the former
Pittsburgher editor, suggests another aspect of Scaife's personality
that may be relevant. "Here is a man who is as rich or richer than any
other man in the country, who has a hunger to be accepted as a
journalist and a responsible member of society," says Minarcin. "Yet he
has this fatal flaw - he keeps shooting himself in the foot." In the
case of the Tribune-Review, the "shot" was Scaife's firing of a young
reporter, Jude Dippold, in October 1973, two days after Dippold had
remarked to the newsroom upon reading of Spiro Agnew's resignation as
vice-president, "One down and one to go." Within hours of Dippold's
firing, ten of the paper's twenty-four-person editorial staff resigned.
They charged in a statement that Scaife (a $1-million contributor to
Nixon's re-election campaign and a $47,500 contributor - according to
Justice Department records to the illegal Watergate campaign fund known
as the Townhouse Operation) had ''continually, in the opinion of the
professional staff, interjected his political and personal bias into the
handling of news stories." (See "Mutiny in Greensburg,'' CJR,
January/February 1974.) Six years later, another chapter was added to
the "Citizen Scaife" saga. This time it involved the firing of a young
editorial cartoonist, Paul Duginski, at The Sacramento Union. According
to Duginski, on December 3, 1979, he was called in by editor Don
Hoenshell who has since died, and shown a letter from Scaife complaining
about several unflattering cartoon Duginski had drawn of California's
conservative lieutenant governor, Mike Curb. According to Duginski, the
letter instructed Hoenshell to restrict Duginski to doing cartoons on
local issues. Duginski accepted the restriction but told his story to
feed/back, the San Francisco State journalism review. Shortly after
feed/back published an article on the matter last spring, Duginski was
told that he was being laid off for economic reasons. As in the case of
Jude Dippold, Duginski's colleagues rallied to his defense. In addition
to presenting him with a T-shirt that announced ''I've been Scaifed,"
twenty-seven of them signed a petition offering to donate part of their
salaries so that Duginski could continue to be employed. Management
declined the offer. Duginski still has not found another full-time
cartooning job. Scaife's one foray into international publishing
represents perhaps the most curious of his publishing enterprises. In
1973, he became the owner of Kern House Enterprises, a U.S.-registered
company. Kern House ran Forum World Features, a London-based news agency
that supplied feature material to a large number of papers around the
world, including at one time about thirty in the U.S. Scaife abruptly
closed down Forum in 1975, shortly before Time Out, a British weekly,
published a purported 1968 CIA memorandum, addressed to then-director
Richard Helms, which described Forum as a CIA-sponsored operation
providing "a significant means to counter Communist propaganda." The
Forum-CIA tie, which lasted into the seventies, has been confirmed by
various British and American publications over the years, and it was
confirmed independently by a source in connection with this article.
Helms is a member of the same country club near Pittsburgh as Scaife.
"Unfortunately," Helms says, ''I really don't know him.'' On the manner
of Forum and a possible CIA link, he adds, "I don't know anything about
it. And, if it were true, I wouldn't confirm it." Scaife's involvement
with Forum began at a time when he seems to have begun to recognize that
newspapering might not represent the most effective way to make his mark
on the world. Perhaps it was frustration at his lack of clout as a
publisher that led Scaife to cast around for other areas in which to
play a public role. This search coincided with the birth of a powerful
new movement, one that was to culminate in the election of Ronald Reagan
- the New Right. next: Overlooked Maecenas to the New Right part 2: The
small bore publisher part 3: Overlooked Maecenas to the New Right part
4: Drawing up the agenda part 5: A bead on the media part 6: Sidebars
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