It’s time to stop the global warming propaganda machine while we still have freedom of speech

A few years ago was when Freeman Dyson, one of the world’s leading physicists, began publicly stating his doubts about global warming and backing them up. Tip: The socialists have changed the term from global warming to “climate change.” Watch the tea parties around the counrty for political climate change.

Speaking at a summit on the future at Boston University, Dyson said that “all the fuss about global warming is grossly exaggerated.” Since then he has only heated up his misgivings, declaring in a 2007 interview with Salon.com that “the fact that the climate is getting warmer doesn’t scare me at all” and writing in an essay for The New York Review of Books, the left-leaning publication, that climate change has become an “obsession” — the primary article of faith for “a worldwide secular religion” known as environmentalism.
Among those he considers to have been drinking the KoolAid, Dyson has been particularly dismissive of Al Gore, whom Dyson calls climate change’s “chief propagandist,” and James Hansen, a government (tax-payer funded) employee of the NASA Goddard Institute for Space Studies in New York and an adviser to Gore’s film, “An Inconvenient Truth.”
Dyson accuses them of relying too heavily on computer-generated climate models that foresee a Grand Guignol of imminent world devastation as icecaps melt, oceans rise and storms and plagues sweep the earth, and he blames the pair’s “lousy science” for “distracting public attention” from “more serious and more immediate dangers to the planet.”
William Gray, hurricane expert and head of the Tropical Meteorology Project at Colorado State University, in a 2005 interview with Discover magazine:
“I’m not disputing that there has been global warming. There was a lot of global warming in the 1930s and ’40s, and then there was a slight global cooling from the middle ’40s to the early ’70s. And there has been warming since the middle ’70s, especially in the last 10 years. But this is natural, due to ocean circulation changes and other factors. It is not human induced.
“Nearly all of my colleagues who have been around 40 or 50 years are skeptical as hell about this whole global-warming thing. But no one asks us. If you don’t know anything about how the atmosphere functions, you will of course say, ‘Look, greenhouse gases are going up, the globe is warming, they must be related.’ Well, just because there are two associations, changing with the same sign, doesn’t mean that one is causing the other.”
Richard Lindzen, professor of meteorology at Massachusetts Institute of Technology, in an editorial last April for The Wall Street Journal:
“To understand the misconceptions perpetuated about climate science and the climate of intimidation, one needs to grasp some of the complex underlying scientific issues. First, let’s start where there is agreement. The public, press and policy makers have been repeatedly told that three claims have widespread scientific support: Global temperature has risen about a degree since the late 19th century; levels of CO2 [carbon dioxide] in the atmosphere have increased by about 30 percent over the same period; and CO2 should contribute to future warming.
“These claims are true. However, what the public fails to grasp is that the claims neither constitute support for alarm nor establish man’s responsibility for the small amount of warming that has occurred. In fact, those who make the most outlandish claims of alarm are actually demonstrating skepticism of the very science they say supports them. It isn’t just that the alarmists are trumpeting model results that we know must be wrong. It is that they are trumpeting catastrophes that couldn’t happen even if the models were right as justifying costly policies to try to prevent global warming.”

Major city newspapers will go nonprofit to keep influence

Major cities such as San Francisco, Washington D.C., LA, Chicago, New York, Houston and Philadelphia may convert the serviving newspapers into nonprofits to keep their political and philanthropic status. 

The San Francisco Chronicle will be the first to test the entity. 

San Francisco investment banker Warren Hellman and other prominent SF  lawyers and investors made an informal proposal  last week to Hearst, owners of the San Francisco Chronicle about helping the troubled daily paper become a nonprofit, San Francisco attorney Bill Coblentz told the SF Business Times.

Hellman and Coblentz discussed the idea, then Coblentz conveyed it to former San Francisco Examiner editor and publisher William R. Hearst III, who is a Hearst Corp. director and an affiliated partner with Kleiner Perkins Caufield & Byers. William is one of the working Hearsts who lives in the Bay Area and keeps touch with The Chronicle on a daily basis. It’s unofficially the Hearst flagship, though in money making ability, their Houston Chronicle is by far the financial headquarters. 

“What happened after that, I don’t know,” said Coblentz, who is out of town.

The proposal would be for a nonprofit corporation “to take over the Chronicle,” with Hearst Corp. continuing to provide some philanthropic support, Coblentz said. Details remain sketchy. It’s unclear if the proposal is being seriously considered.

 

Editorial-wise they are already PBS in print, aren’t they? 

 

Obama Creating the United Socialist States of Amerika — trillions spent on Big Government programs

Back in the USSA. We don’t know how lucky we are, eh! Back in the USSA! 

 


                  
    
WE GOT YOUR  MONEY 
   
GONNA SPEND YOUR  MONEY
  GONNA PRINT SOME MORE  MONEY 

 
  
 
 

 

 

Antonia Ferrier, a spokeswoman for House Minority Leader John Boehner (R-Ohio), said Gibbs was trying to create a distraction by responding to Limbaugh.

“What we are seeing is a desperate attempt by Democrats to distract attention away from a multi-trillion dollar spending spree taking place in Washington,” Ferrier said. “Creating a boogeyman to change the subject does nothing to alter the fact that there are 9,000 earmarks in the omnibus spending bill, that the economic stimulus bill contained no Republican input or that their budget would increase taxes on all Americans.”

Mick Gregory

The EU is on the verge of crumbling as Obama and Gordy Brown use the banking crisis to nationalize and build more power for central government.

Historians will look back and say this was no ordinary time but a defining moment: an unprecedented period of global change, and a time when one chapter ended and another began.

The scale and the speed of the global banking crisis has at times been almost overwhelming, and I know that in countries everywhere people who rely on their banks for savings have been feeling powerless and afraid. But it is when times become harder and challenges greater that across the world countries must show vision, leadership and courage – and, while we can do a great deal nationally, we can do even more working together internationally. — Gordy Brown, UK Prime Minister

Anyone who took Economics 101 remembers the root cause of inflation — the central government prints massive amounts of currency. Change is coming. Inflation is coming my friends. From near zero under Bush (the evil one) to what may rival Zimbabwa in about a year or two. 

What will happen to the Democrat/Socialist Party’s plan to tax “only the rich?” We will all be the rich. Any two income household making over $210,000 will be taxed at the super high rates of Jimmy Carter, LBJ and FDR. 

That is coming. Bet on it. We will be wards of the state with more than 50 percent of our wealth taxed by the Democrats. The home mortgage deduction has been taken away from those like Joe the Plumber. Welcome to the USSA. We don’t know how lucky we are, eh! 

 

 

 

Back on Uncle Sam’s plantation 
Star Parker – Syndicated Columnist – 2/9/2009 8:00:00 AM

cid:6DC2CCCC-45E7-4311-BE61-E0A517E9F275@local

 

Six years ago I wrote a book called Uncle Sam’s Plantation. I wrote the book to tell my own story of what I saw living inside thewelfare state and my own transformation out of it.

I said in that book that indeed there are two Americas — a poor America on socialism and a wealthy America on 
capitalism. 
 
I talked about government programs like Temporary Assistance for Needy Families (TANF), Job Opportunities and Basic Skills Training (JOBS), Emergency Assistance to Needy Families with Children (EANF), Section 8 Housing, and Food Stamps.

A vast sea of perhaps well-intentioned government programs, all initially set into motion in the 1960s, that were going to lift the nation’s poor out of poverty.

A benevolent Uncle Sam welcomed mostly poor black Americans onto the government plantation. Those who accepted the invitation switched mindsets from “How do I take care of myself?” to “What do I have to do to stay on the plantation?”

Instead of solving economic problems, government welfare socialism created monstrous moral and spiritual problems — the kind of problems that are inevitable when individuals turn responsibility for their lives over to others.

The legacy of American socialism is our blighted inner cities, dysfunctional inner city schools, and broke n black families.

Through God’s grace, I found my way out. It was then that I understood what freedom meant and how great this country is.

I had the privilege of working on welfare reform in 1996, passed by a Republican Congress and signed 50 percent.

I thought we were on the road to moving socialism out of our poor black communities and replacing it with wealth-producingAmerican capitalism.

But, incredibly, we are going in the opposite direction.

Instead of poor America on socialism becoming more like rich American on capitalism, rich America on capitalism is becoming like poor America on socialism.

Uncle Sam has welcomed our banks onto the plantation and they have said, “Thank you, Suh.”

Now, instead of thinking about what creative things need to be done to serve customers, they are thinking about what they have to tell Massah in order to get their cash.

There is some kind of irony that this is all happening under our first black president on the 200th anniversary of the birthday ofAbraham Lincoln.

Worse, socialism seems to be the element of our new young president. And maybe even more troubling, our corporate executives seem happy to move onto the plantation.

In an op-ed on the opinion page of the Washington Post, Mr. Obama is clear that the goal of his trillion dollar spending plan is much more than short term economic stimulus.

“This plan is more than a prescription for short-term spending — it’s a strategy for America ‘s long-term growth and opportunity in areas such as renewable energy, healthcare, and education.”

Perhaps more incredibly, Obama seems to think that government taking over an economy is a new idea. Or that massive growth in government can take place “with unprecedented transparency and accountability.”

Yes, sir, we heard it from Jimmy Carter when he created the Department of Energy, the Synfuels Corporation, and the Department of Education.

Or how about the Economic Opportunity Act of 1964 — The War on Poverty — which President Johnson said “…does not merely expand old programs or improve what is already being done. It charts a new course. It strikes at the causes, not just the consequences of poverty.”

Trillions of dollars later, black poverty is the same. But black families are not, with triple the incidence of single-parent homes and out-of-wedlock births.

It’s not complicated. Americans can accept Barack Obama‘s invitation to move onto the plantation. Or they can choose personal responsibility and freedom.

Does anyone really need to think about what the choice should be?

 

Rocky Mountain News publishes final edition Friday

Poynteronline.org holds a podcast/blog later today on “Is it time to exit newspaper journalism?” What do you think they will say? 
Here is the final edition. It has a sad, final edition look to it. http://eatthedarkness.wordpress.com/2009/02/27/rip-rocky/

 

Executives from E.W. Scripps Co., announce their decision on the future of the Rocky Mountain News in the 150-year-old newspaper's newsroom on 2/26/09 in Denver. In December 2008, the Rocky's parent company put the paper up for sale, citing multi-million dollar annual losses.   

Executives from  Scripps, announce their decision on the future of the Rocky Mountain News in the 150-year-old newspaper’s newsroom on 2/26/09 in Denver. In December 2008, the Rocky’s parent company put the paper up for sale, citing multi-million dollar annual losses. No offers were made. Nobody was that slow on the uptake on the future of newspapers.

Rich Boehne, CEO of E.W. Scripps Co., announce their decision to close the Rocky Mountain News in the 150-year-old newspaper's newsroom on 2/26/09 in Denver. In December 2008, the Rocky's parent company put the paper up for sale, citing multi-million dollar annual losses.   

 

 

A man stops to read the ticker on the outside of the Denver Newspaper  Agency building announcing that the Rocky Mountain News is closing and that it will publish its last edition on Friday. Photograph taken in Denver Thurs. Feb 26, 2009.   

Photo by Darin McGregor © The Rocky

A man stops to read the ticker on the outside of the Denver Newspaper Agency building announcing that the Rocky Mountain News is closing and that it will publish its last edition on Friday. Photograph taken in Denver Thurs. Feb 26, 2009.

 Executives from E.W. Scripps Co., announce their decision on the future of the Rocky Mountain News in the 150-year-old newspaper's newsroom on 2/26/09 in Denver. In December 2008, the Rocky's parent company put the paper up for sale, citing multi-million dollar annual losses.   

Photo by Joe Mahoney © The Rocky

 

Executives from E.W. Scripps Co., announce their decision on the future of the Rocky Mountain News in the 150-year-old newspaper's newsroom on 2/26/09 in Denver. In December 2008, the Rocky's parent company put the paper up for sale, citing multi-million dollar annual losses.   

Photo by Joe Mahoney © The Rocky

Executives from E.W. Scripps Co., announce their decision on the future of the Rocky Mountain News in the 150-year-old newspaper’s newsroom on 2/26/09 in Denver. In December 2008, the Rocky’s parent company put the paper up for sale, citing multi-million dollar annual losses.

Share Your Thoughts

What do you think about Scripps’ decision to close the Rocky? We want to hear your thoughts. You can talk live with Mark Wolf by clicking here, or send a letter to the editor at letters@rockymountainnews.com

The Rocky Mountain News publishes its last paper today (Friday).

Rich Boehne, chief executive officer of Rocky-owner Scripps, broke the news to the staff at noon today, ending nearly three months of speculation over the paper’s future.

“People are in grief,” Editor John Temple said a noon news conference.

But he was intent on making sure the Rocky’s final edition, which would include a 52-page wraparound section, was as special as the paper itself.

“This is our last shot at this,” Temple said at a second afternoon gathering at the newsroom. “This morning (someone) said it’s like playing music at your own funeral. It’s an opportunity to make really sweet sounds or blow it. I’d like to go out really proud.”

Boehne told staffers that the Rocky was the victim of a terrible economy and an upheaval in the newspaper industry.

“Denver can’t support two newspapers any longer,” Boehne told staffers, some of whom cried at the news. “It’s certainly not good news for you, and it’s certainly not good news for Denver.”

Tensions were higher at the second staff meeting, held to update additional employees who couldn¹t attend the hastily called noon press conference.

Several employees wanted to know about severance packages, or even if they could buy at discount their computers.

Others were critical of Scripps for not seeking wage concessions first or going online only.

But Mark Contreras, vice president of newspapers for Scripps, said the math simply didn’t work.

“If you cut both newsrooms in half, fired half the people in each newsroom, you’d be down to where other market newsrooms are today. And they’re struggling,” he said.

As for online revenues, he said if they were to grow 40 percent a year for the next five years, they still would be equal to the cost of one newsroom today.

“We’re sick that we’re here,” Contreras said. “We want you to know it’s not your fault. There’s no paper in Scripps that we hold dearer.”

But Boehne said Scripps intended to keep its other media, both print and in broadcast, running.

“Scripps has been around for 130 years. We intend to be around another 130 years,” Boehne said. “If you can’t make hard decisions, you won’t make it.”

After Friday, the Denver Post will be the only newspaper in town.

Asked if pubilsher Dean Singleton now walks away with the whole pie, Boehne was blunt.

“He walks away with an unprofitable paper, $130 million in debt and revenues that are down 15-20 percent every year,” Boehne said.

Asked if Singleton would have to pay for the presses now, Boehne added, “We had to kill a newspaper. He can pay for the presses.”

Reaction came from across the nation and around the block.

“The Rocky Mountain News has chronicled the storied, and at times tumultuous, history of Colorado for nearly 150 years. I am deeply saddened by this news, and my heart goes out to all the talented men and women at the Rocky,” U.S. Sen. Michael Bennet said in a statement. “I am grateful for their hard work and dedication to not only their profession, but the people of Colorado as well.”

At the Statehouse, Rep. Joe Rice (D-Littleton), said the paper would be missed.

“The Rocky Mountain News has been a valued institution in Denver,” he said.

“It’s a sad, sad day.”

Long-time Denver real estate agent Edie Marks called the Rocky a voice of reason, moderation and common sense.

“I think that it was the fairest newspaper, the most diverse, and am important part of my daily life,” she said. “I’m going to miss it tremendously.”

On Dec. 4, Boehne announced that Scripps was looking for a buyer for the Rocky and its 50 percent interest in the Denver Newspaper Agency, the company that handles business matters for the papers. The move came because of financial losses in Denver, including $16 million in 2008.

“This moment is nothing like any experience any of us have had,” Boehne said. “The industry is in serious, serious trouble.”

Didn’t Obama sign the trillion dollar stimulous bill in Denver? What did that do for the Rocky? 

Chronicle’s chronic losses lead to major cuts at the Bay Area’s largest newspaper — papers coast-to-coast cutting staff

The San Francisco Chronicle ready for some major “right sizing.”

After some more streamlining in addition to a new printing process off site, the largest newspaper in Northern California should begin to be profitable again.  

In a posted statement, Hearst said if the savings cannot be accomplished “quickly” the company will seek a buyer, and if none comes forward, it will close the Chronicle. The Chronicle lost more than $50 million in 2008 and is on a pace to lose more than that this year, Hearst said.

Frank J. Vega, chairman and publisher of the Chronicle, said, “It’s just a fact of life that we need to live within our means as a newspaper – and we have not for years.”

Vega said plans remain on track for the June 29 transition to new presses owned and operated by Canadian-based Transcontinental Inc., which will give the Chronicle industry-leading color reproduction. That move will save a few million annually due to the reduction of highly paid pressmen.

If the reductions can be accomplished, Vega said, “We are optimistic that we can emerge from this tough cycle with a healthy and vibrant Chronicle.”

The company did not specify the size of the staff reductions or the nature of the other cost-savings measures it has in mind. The company said it will immediately seek discussions with the Northern California Media Workers Guild, Local 39521, and the International Brotherhood of Teamsters, Local 853, which represent the majority of workers at the Chronicle.

“Because of the sea change newspapers everywhere are undergoing and these dire economic times, it is essential that our management and the local union leadership work together to implement the changes necessary to bring the cost of producing the Chronicle into line with available revenue,” Frank A. Bennack, Jr., Hearst vice chairman and chief executive, and Steven R. Swartz, president of Hearst Newspapers, said in a joint statement.

From the Newsosaur:

SF Chron cost-cut target equals 47% of staff

If the San Francisco Chronicle had to slash enough payroll to offset the more than $50 million operating loss threatening its future, nearly half of its 1,500 employees would be dismissed.

That’s the magnitude of the challenge facing the managers and union representatives who were tasked today by Hearst Corp. to find a way to cut the paper’s mushrooming deficit – or else.

After losing more than $1 billion without seeing a dime of profit since purchasing the paper in 2000, the Hearst Corp. today threatened to sell or close the Chronicle if sufficient savings were not identified to staunch operating losses surpassing $1 million a week. Without significant cost reductions, the losses would accelerate this year as a result of the ailing economy, said Michael Keith, a spokesman for the paper.

To wipe out a $50 million loss, let alone make a profit, the paper would have to eliminate 47% of its entire staff

Meanwhile, on the East Coast:

The latest Hartford Courant (former Times-Mirror newspaper) layoffs were announced last night – political reporter Mark Pazniokas is among those cut from the newspaper. We’ve been told these names as well – please correct us if we have anything wrong: Jesse Hamilton of the Washington bureau,  Religion Reporter Elizabeth Hamilton, Business Reporter Robin Stansbury, Environment Reporter David Funkhouser, reporters  Steve Grant and Anna Marie Somma, sportswriter Matt Eagan,  itowns editor Loretta Waldman, itowns reporter Nancy Lastrina, administrative assistant Judy Prato, Marge Ruschau, Features copy editors Adele Angle and David Wakefield, and library staffer & researcher Owen Walker.

We’re told that editor/reporter Kate Farrish resigned earlier this week as did editor John Ferraro.

Denis Horgan is calling it the Mardi Gras Massacre.

Paul Bass has more in the New Haven Independent.

Now, back to Texas:

Memo from San Antonio Express-News’ editor

From: Rivard, Robert
Sent: Wednesday, February 25, 2009 10:44 AM
To: SAEN Editorial
Subject: We are canceling this morning’s news meeting for obvious reasons.

Colleagues:

By now you have read Tom Stephenson’s message to all employees. Every division of the Express-News will be affected, including every department in the newsroom. Incremental staff and budget cuts, we are sorry to say, have proven inadequate amid changing social and market forces now compounded by this deepening recession.

It is not lost on us as journalists in this difficult moment that we have built an audience of readers, in print and online, that is larger and more diverse than at any time in our century and half of publishing. We have done that at the Express-News through a commitment to excellence and public service. Now we must find ways to maintain these high levels of journalistic distinction even as valued colleagues depart. It is an unfortunate but undeniable fact that declining advertising revenues are insufficient to support our operations at current levels. At the same time, more and more people have become accustomed to reading us at no cost on the Internet. As a result, we are reducing the newsroom staff by some 75 positions, counting layoffs and open positions we are eliminating.

As a first step to securing our future and continuing to serve the community, we are undergoing a fundamental and painful restructuring of the newsroom staff. We will have fewer departments and fewer managers, and yes, fewer of every class of journalist. After we reorganize and consolidate additional operations with the Houston Chronicle, we will then turn to finding new ways to create and present the journalism we know is vital to the city and the region. There is every indication the community we serve recognizes our importance and wants the Express-News to succeed.

The newsroom leadership team will begin now to meet with individuals whose jobs are being eliminated. Brett Thacker and I are working with these editors to carry out such notifications as swiftly and humanely as possible. No one is being asked to leave the Express-News today unless you so choose. March 20 will be the final day for those whose jobs are being cut, at which time they will then receive involuntary separation packages that include two weeks’ pay for each year of service up to one year’s pay, along with other benefits. Some production journalists involved in the consolidation project with the Houston Chronicle will be asked to stay on until that project is completed in the coming months. Those who do stay until the completion will receive their separation packages at that time.

We have worked to preserve the size and depth of our newsroom in every imaginable way these past months and years, but events beyond our control have overwhelmed those efforts. Newsrooms become like families, but companies in every industry reach a point where they face fundamental, sometimes harsh change in order to preserve their viability. We are at that point. Most of you read yesterday’s news regarding the San Francisco Chronicle and recently became aware of pending staff cuts at the Houston Chronicle. Our intention is to get through these difficult days and work to remain an indispensible source of news and information through the recession and beyond.

Hearst purchased the Chronicle in 2000, but soon afterward felt the impact of an economic downturn in the dot.com sector as well as the loss of classified advertising to Craigslist and other online sites. The problems have been exacerbated by the current recession.

In the news release, the privately-held, New York-based company said that the Chronicle has had “major losses” since 2001.

Back on the West Coast, there is no safe haven.

Sacramento Guild bracing for job cuts

Woe is us, McClatchy warns

Media Workers Guild – 12 Feb 2009

Sacramento Bee employees should expect a serious wave of layoffs in early March, as well as other cost-cutting measures now being considered, including wage cuts and mandatory furloughs as McClatchy Newspapers’ financial crisis worsens, company representatives told the Guild’s bargaining committee in a 90-minute session Thursday.

Mercury Bargaining Bulletin 9

 

Mercury News wants $1.5 million cut from wages and benefits

 

California Media Workers Guild – 10 Feb 2009

Mercury News negotiators said Tuesday they need to find $1.5 million by cutting wages and benefits paid to Guild members annually in the face of the economic woes facing the company. The company’s announcement came at a bargaining session Tuesday that kicked off an effort by management and the Guild to expedite the process of reaching a new contract to replace the one that expired October 31.

“Given the losses the Chronicle continues to sustain, the time to implement these changes cannot be long. These changes are designed to give the Chronicle the best possible chance to survive this economic downturn and continue to serve the people of the Bay Area with distinction, as it has since 1865,” Bennack and Swartz said in their statement.

“Survival is the outcome we all want to achieve,” they added. “But without specific changes we are seeking across the entire Chronicle organization, we will have no choice but to quickly seek a buyer for the Chronicle, and, should a buyer not be found, to shut down the newspaper.”

The Hearst statement further said that cost reductions are part of a broader effort to restore the Chronicle to financial health. At the beginning of the year, the Chronicle raised its prices for home delivery and single-copy purchases.

Hearst owns 15 other newspapers including the Houston Chronicle, San Antonio News-Express and the Albany Times-Union in New York . Hearst announced Jan. 9 that in March that if a buyer is not found it will close Seattle Post-Intelligencer, which has lost money since 2000.

Vega said readers and advertisers will see no difference in the Chronicle during the discussions with the unions.

“Even with the reduction in workforce, our goal will be to retain our essential and well-read content,” Vega said. “We will continue to produce the very best newspaper for our readers and preserve one of San Francisco ‘s oldest and most important institutions.”

The Chronicle, the Bay Area’s largest and oldest newspaper, is read by more than 1.6 million people weekly. It also operates SFGate, among the nation’s 10 largest news Web sites. SFGate depends on the Chronicle’s print news staff for much its content.

The San Francisco Bay Area is home to 21 daily newspapers covering an 11-county area.

The Chronicle’s news staff of about 275, even after a series of reductions in recent years, is the largest of any newspaper in the Bay Area.

“While the reductions are an unfortunate sign of the times, the news staff has always been resilient in San Francisco ,” said Ward Bushee, editor and executive vice president. “We remain fully dedicated toward serving our readers with an outstanding newspaper. We are playing to win.”

The area’s other leading newspapers – the Bay Area Media News Group that includes the San Jose Mercury News, Contra Costa Times and Oakland Tribune – also have seen revenues decline sharply and cut staff.

These problems are a reflection of those faced by newspapers across America as they experience fundamental changes in their business model brought on by rapid growth in readership on free internet sites, a decline in paid circulation, the erosion of advertising and rising costs.

Advertising traditionally has offset the cost of producing and delivering a newspaper, which allowed publishers to charge readers substantially less than the actual cost of doing business. The loss of advertising has undermined that pricing model.

In the case of the Chronicle, Vega said the expense of producing and delivering the newspaper to a seven-day subscriber is more than double the $7.75 weekly cost to subscribe.

At the beginning of the year, in an effort to evolve its business model and offset its substantial losses, the Chronicle raised its subscription and newsstand prices, taking a cue from European papers that charge far more than their American counterparts.

“We know that people in this community care deeply about the Chronicle,” Vega said. “In today’s world, the Chronicle is still very inexpensive. This is a critical time and we deeply hope our readers will stick with us.”

The challenge the Chronicle faces, Vega said, is to bring its revenues from advertising and circulation into balance with its expenses so that the newspaper can at least break even financially.

“We are asking our unions to work with us as partners in making these difficult cost-cutting decisions and reduction in force to ensure the newspaper survives,” Vega said.

Michael Savage will have some candid comments on the layoffs. What about the content of the Chronicle’s “news?”

The union reps “negotiate” their fate:

Cost-Cutting Talks Begin – 

Guild leaders met with representatives from The Chronicle and Hearst Corp. this morning to discuss the company’s cost-cutting proposal.

We opened the meeting by underscoring our commitment to our membership and the community to do all we can to reach an agreement that will keep The Chronicle open and return it to profitability.

The company seeks a combination of wide-ranging contractual concessions in addition to layoffs, the exact number of which the company said it did not yet have. For Guild-covered positions, the company did say the job cuts would at least number 50. Other proposals include removal of some advertising sales people from Guild coverage and protection, the right to outsource — specifically mentioning Ad Production — voluntary buyouts, layoffs and wage freezes. 

We plan to closely analyze this proposal over the next few days and explore every possible alternative. Meetings will be held to discuss details with members of the bargaining unit. An informational membership meeting will be held from 5-7 p.m.tonight (Tuesday Feb. 25) at the Guild office, 3rd floor conference room.

Management reiterated its commitment to keeping The Chronicle open and to working with the Guild to secure a viable future. Despite the difficult economic environment, we are confident that by working together we can find solutions to any problems that confront us.

If you have any questions or suggestions, contact your shop steward or e-mail Unit Chair Michelle Devera, Local President Mike Cabanatuan or Unit Secretary Alissa Van Cleave.

In solidarity,

Michelle Devera, Chronicle Unit chair, michelleatsfchronunit@gmail.com
Michael Cabanatuan, Local President, ctuan@aol.com
Alissa Van Cleave, Chronicle Unit secretary, vancelave44@hotmail.com
Wally Greenwell, Chronicle Unit vice chair
Gloria La Riva, president, Typographical Sector
Carl Hall, Local Representative

Philly Newspapers Rolled – Inquirer and Daily News in free fall

Bankruptcy documents filed Sunday by Philadelphia Newspapers LLC, The Inquirer and Daily News and seven affiliated suburban publications report the newspaper group bought  from McClatchy (the troubled chain that Knight-Ridder unloaded in 2005) is asking the court for bankruptcy protection. The Philly group paid McClatchy  $562 million for the papers. The value of the assets is far lower than that just a few years later.

You have to admire the business knowledge of the Knight-Ridder family share holders who knew when to fold them and chuck them off before the business trends became obvious.

This report in Forbes Magazine is by Wm. P Barret, former Dallas Times Herald and Philly Inquirer reporter and editor. He has good sources. 

The Inquirer and Daily News join a growing list of newspapers forced into bankruptcy after sharp declines in advertising destroyed their ability to service big debts taken on when they changed hands. A day earlier, Journal Register Co. (nyse: JRC – news – people ), parent of Connecticut’s New Haven Register and 178 other weekly and daily newspapers, sought bankruptcy-court protection. The same fate befell the Minneapolis Star Tribune last month. In December, Tribune Co., whose holdings include the Chicago Tribune, Los Angeles Times and Newsday, filed for Chapter 11 bankruptcy protection. All newspapers have suffered sharp ad revenue declines due to Internet competition and the recession, but those that recently changed hands in leveraged deals are the most vulnerable.

The bankruptcy threatens to wipe out the $150 million equity investment made by Tierney’s Philly group, which included local labor unions and business interests. It also raises the prospect of big losses by the lenders that provided the balance of more than $400 million in debt financing. The list of largest unsecured creditors was topped by Royal Bank of Scotland (nyse: RBS – news – people ), which is owed $22 million. As of Jan. 31, the company said it still owed $395 million to lenders.

 

“The debtors’ assets and going concern value are worth less today than they were worth in 2006,” Thayer wrote. He added that Philadelphia Newspapers had 2008 free cash flow–before interest, taxes, depreciation or amortization–of $36 million. That is expected to drop 31% to $25 million this year, Thayer wrote. It is from cash flow that debt-servicing payments are made.

Thayer’s statement hints at hard-ball tactics on all sides as Tierney’s team fought to restructure its finances outside of court. A Tierney request in November for $20 million in equity investment from lenders was rejected. Then this month, Thayer wrote, lenders countered with a proposal that the money be a loan and demanded an answer to their proposal within 48 hours–and without providing a copy of the paperwork describing fees for their loans.

In a memo to employees, Tierney said the company has asked the hometown bankruptcy court to allow payments of benefits and pensions. A bankruptcy filing usually halts such payments, at least initially. In recent years, many employees of the Inquirer and Daily News have taken buyouts or have been laid off.

Thayer’s affidavit says Tierney’s management has “dramatically improved the operations.” But one thing not specified was print circulation numbers of the Inquirer and Daily News, both Pulitzer Prize-winning newspapers. Latest audited figures put their combined daily circulation at 398,000, on the order of half what it was when the papers’ main competition, The Philadelphia Bulletin, went out of business in 1982.

McClatchy about to be kicked off the New York Stock Exchange as stock falls below $1 dollar.

The elegant McClatchy stock certificates for Class A stock are worth more than the stock itself. *

 

This report is directly from a McClatchy press release. The McClatchy Company today (Feb. 5) reported a net loss from continuing operations in the fourth quarter of 2008 of $20.4 million, or 25 cents per share.

McClatchy also announced that it was notified by the New York Stock Exchange  that it is not in compliance with the NYSE’s continued listing standards. The NYSE’s notice dated February 4, 2009 indicated that on February 2, 2009, the company’s average share price over the previous 30 trading days was $0.98, which is below the NYSE’s quantitative listing standards.

The NYSE listed companies must maintain an average closing price of any listed security above $1 per share for any consecutive thirty trading-day period. McClatchy plans to notify the NYSE of its intent to cure this deficiency and has six months from the date of the NYSE notice to cure the non-compliance. The company’s Class A common stock will continue to be listed on the NYSE during this interim period, subject to compliance with other NYSE listing requirements and the NYSE’s right to reevaluate continued listing standards. In reality, the stock is now considered a “penny stock” and things had better shape up in the next six months. 

There was no report on what McClatchy was doing about its carbon footprint and efforts to slow climate change. 

Revenues in the fourth quarter of 2008 were $470.9 million, down 17.9% from revenues from continuing operations of $573.4 million in the fourth quarter of 2007. Advertising revenues were $388.3 million, down 20.7% from 2007, and circulation revenues were $67.0 million, up 1.4%. Online advertising revenues grew 10.3% in the fourth quarter of 2008 and were 10.9% of total advertising revenues compared to 7.8% of total advertising revenues in the fourth quarter of 2007.

Using cash from operations and proceeds from asset sales, the company repaid $30 million of debt in the quarter and $433 million for all of 2008. Debt at the end of the fiscal year was $2.038 billion, down from $2.471 billion at the end of 2007.

Restructuring plan to calm banks and other investors

McClatchy noted in a press release that the duration and depth of the economic recession have taken a severe toll on its advertising revenues. Given the unprecedented deterioration in revenues and with no visibility of an improving economy, the company is continuing to reduce expenses. McClatchy announced that it is developing a plan to reduce costs by an additional $100 million to $110 million, or approximately seven percent of 2008 cash expenses, over the next 12 months beginning later in the first quarter of 2009.

Details of the plan have not yet been finalized. In addition, the company will freeze its pension plans and temporarily suspend the company match to its 401(k) plans, effective March 31, 2009. The company will extend a salary freeze for senior executives in 2009 that was implemented in 2007. The company previously announced that it had implemented a company-wide salary freeze from September 2008 through September 2009. Gary Pruitt, McClatchy’s chairman and chief executive officer, also has declined any bonus for 2008 and 2009. In addition, other senior executives will not receive bonuses for 2008.

 

The loss from continuing operations for the entire year of 2007 was $2.73 billion, or $33.26 per share, including the effect of the non-cash impairment charges taken in 2007. Adjusted earnings from continuing operations(1) were $110.9 million, or $1.35 per share, in fiscal 2007 after considering the non-cash impairment charges and adjustments for certain discrete tax items. The company’s total net loss, including the results of discontinued operations, was $2.74 billion, or $33.37 per share.

 

Management’s Comments

Commenting on McClatchy’s results, Pruitt said, “2008 was a difficult and disappointing year. We faced troubled economic times and structural changes in our business.

 

“But the economy remains mired in recession and our industry is still in a period of transition. The advertising environment continues to be weak and we expect print advertising revenues to continue to be down. While we do not have final advertising revenue results for January, we know that the month was slower than the fourth quarter. We don’t have any better sense than other market observers as to how long the current recession will last and we do not yet have visibility of revenue trends.

“We must respond with both continued rigor in driving our revenue results as well as permanently reducing our cost structure. At McClatchy we are quickly becoming a hybrid print and online news and information company.

“Evidence of our cost reduction efforts can be found in our results. Excluding severance and other benefit charges related to our previously announced restructuring plans, cash expenses were down 14.4% in the fourth quarter and were down 11.5% in all of 2008.

“This necessary transition to a more efficient company is especially painful in a horrible economy and we have had to make some very difficult decisions to keep the company safe,” Pruitt said. “Even so, we are determined to treat our employees well and secure their retirement as best we can. So while we have announced that we are freezing our pension plans and will temporarily suspend 401(k) matching contributions as of March 31, we will continue to offer competitive benefits for our employees. We expect to offer a new 401(k) plan later this year that will include both a matching contribution (once reinstated), plus a supplemental contribution that is tied to cash flow performance. I recognize the sacrifices our employees are making to help us get though this difficult time and I appreciate their loyalty to McClatchy. I am confident that the McClatchy team is up to this challenge and we will see brighter days when the economy finally turns.”

Pat Talamantes, McClatchy’s chief financial officer, said, “Our new cost initiatives, combined with our 2008 efforts, are designed to save approximately $300 million annually before severance costs. Approximately $60 million of savings has been realized in 2008, and $44.7 million of severance costs associated with these programs has been expensed in 2008 and largely paid.”

“Despite the downturn in advertising revenues, we still continue to generate significant cash and are using it to repay debt,” Talamantes said. “Our debt at year end is $2.038 billion, down $433 million from the end of 2007. Based on our trailing 12 months of cash flow, our leverage ratio is currently 5.1 times cash flow and our interest coverage ratio is 2.8 times cash flow as defined by our bank agreement — well within the allowable covenant thresholds. We have $159 million in availability under our bank credit lines, and have no significant debt maturities until June 2011. We believe that we can work through this difficult environment, and we expect to make further progress in paying down debt in 2009.”

Other Matters

McClatchy also announced that it was notified by the New York Stock Exchange (the “NYSE”) that it is not in compliance with the NYSE’s continued listing standards. The NYSE’s notice dated February 4, 2009 indicated that on February 2, 2009, the company’s average share price over the previous 30 trading days was $0.98, which is below the NYSE’s quantitative listing standards. Such standards require NYSE listed companies to maintain an average closing price of any listed security above $1.00 per share for any consecutive thirty trading-day period. McClatchy plans to notify the NYSE of its intent to cure this deficiency and has six months from the date of the NYSE notice to cure the non-compliance. The company’s Class A common stock will continue to be listed on the NYSE during this interim period, subject to compliance with other NYSE listing requirements and the NYSE’s right to reevaluate continued listing standards.

Consistent with the growing industry practice, McClatchy will discontinue issuing monthly revenue and statistical reports after this release. McClatchy is among the last newspaper companies to report advertising results monthly, and without comparable industry information, management does not believe monthly revenues are as useful to investors. The company will continue to provide revenue trends and other statistical information on a quarterly basis with its earnings releases.

*Class B stock is the stock held by the family, so that has voting rights and much more value when the assets are finally sold. It’s the same model used by the New York Times.