Monday, Sep. 19, 1938

Manufacture of Opinion

Atlanta, Ga.--Revolt in the AFL against Pres. William Green's endorsement of tory Sen. George for renomination in the Georgia Democratic primary came this week from Dewey L. Johnson, head of the Atlanta Federation of Trades. . . .

Chicago--Indications that the publishers of Ken are beginning to learn at first hand the power of CIO unions came this week as they reached an agreement with the local 24 of the United Office & Professional Workers. . . .

Columbus--Having successfully completed the task of restoring harmony and unity to the Federation of Flat Glass Workers, President Paul W. Fuller submitted his resignation August 31. . . .

The C. I. 0. News, in which such frankly biased stories appear, is an eight-page weekly, founded last December as the official organ of the C. I. O. Price: 3-c- per copy, $1 per year, reductions for block subscriptions and bundle orders. Last week the circulation of the C. I. 0. News skyrocketed from 125,000 to 700,000 when John L. Lewis' United Mine Workers of America entered subscriptions for all its members. Editorialized the C. I. 0. News: "Powerful chains of daily papers show that the business world has learned the lesson of combination. But labor has here tofore failed to apply its slogan, 'in union there is strength,' to its press. . . . A most promising start has now been made. . . . The possibilities are unlimited for building a national press to offset the great trustified propaganda machine which the employing interests have established for the manufacture of public opinion."

Oxygen

In 1936, nearly three years after J. David Stern went to New York and bought the Post, clever little Publisher Roy Howard of "the World-Telegram remarked: "I wonder what's going to happen to the Post when Dave takes it out from under the oxygen tent?"

In Philadelphia, Mr. Stern had cannily hitched his publishing wagon to the rising Democratic star as early as 1930. His success as the publisher of the Philadelphia Record,. "FIGHTING ALONE" for Franklin D. Roosevelt in a traditionally Republican town, encouraged him to try his luck as the one fanatically New Deal voice in Democratic New York City. But in spite of "oxygen" for Post circulation (266,151 for the six months ending March 31, 1938) provided by guessing contests, cheap sets of Dickens and reproductions of Modern Masters, the Post has not done too well. With 3,251,223 lines of paid advertising in the six months ending last June, the Post is well behind all its after noon competitors, which rank in order: Sun, World-Telegram, Journal & American. Last week, Dave Stern applied a new kind of oxygen.

More than a month ago, Publisher Stern arranged to get new money not only for the Post but for his Record--$1,000,000 for the latter, principally from Philadelphia's Federal Reserve Bank, of which Dave Stern is a onetime advisory director, and nearly $2,000,000 for the former from "outside sources." In addition, on the Post, a $5,000-a-week budget cut was begun. Of its 142 editorial employes, twelve were fired--as were 23 of 180 Record editorial employes. The financial pages of both papers were dropped. And Dave Stern, whose papers woo the workingman, cast about for ways to institute a pay cut on the Post, without colliding with A.F. of L. unions in its mechanical departments, or the American Newspaper Guild, whose contract with the Post was the first to be signed in Manhattan. By persuading the A.F. of L. unions to let their men treat the matter as individuals rather than as unionists, Publisher Stern got a "10% "kickback" out of 97% of the Post's mechanical employes.* They agreed to lend the Post 10% of their pay checks indefinitely, the loans to be repaid at 2% interest when, to the satisfaction of an employe committee, the paper makes money.

By no means willing to consider 10% loans an individual rather than a union matter, Guild leaders stood up to Publisher Stern even when, last fortnight, he threatened to close down the Post in 48 hours. Then Mr. Stern did some telephoning. That he telephoned President Roosevelt, told him he was tired of running a New Deal organ at a loss and needed help, has been denied. But Publisher Stern did telephone John L. Lewis, to whose C.I.O. the Guild belongs. In subsequent telephone conversations with Guild officials in Manhattan, Mr. Lewis muttered something about "the White House." He advised the Guild to accept the proposition "the way Stern wants it." The Guild did so. Said Publisher Stern: "You would lend money to your grandmother. Why not to your boss?"

* To get working capital last July, the old and often shaky Boston Transcript (circulation 29,423) asked its employes for 10% non-interest-bearing salary loans. The loans, however, were not enough to keep it afloat. Last week an attachment of its accounts by a $29,500 creditor forced the Transcript to go into U. S. District Court, petition for 77B reorganization--its second shake-up in two years.

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