An Early Hostile Corporate Takeover:
The Split of the Scripps Newspaper Empire 1920-1922
In July 1996, the Scripps League consummated a deal with the Pulitzer Company
to sell its sixteen daily and thirty non-daily newspapers for $216 million. The
sale came almost seventy-five years after Jim Scripps left his father, E.W.
Scripps and the Scripps McRae chain, and took seven west coast newspapers in
August of 1921 to start his own chain. This breakaway company would eventually
become the Scripps League. Scripps McRae would reorganize in 1922 after the
break and become Scripps Howard.
The separate organizations stemmed from an early corporate split in the Scripps
newspaper empire between 1920 and 1922, during a time of consolidation of the
Scripps interests. Prior to 1920 the Scripps Empire consisted of three groups,
which became two because of the simultaneous consolidation and split.
The consolidation and split changed the power held by founder E.W. Scripps. The
separated company held by his son left him with a minority interest and little
voice in the operation of the new company. The split involved seven newspapers
that consisted of one-fourth of the Scripps interests.
A number of studies have addressed the issue of media ownership and the
organizations established, but most have simply chronicled the establishment and
maintenance of chains.[1]
Research on newspaper owners and managers has been primarily in the form of
individual biographies. There are numerous biographies of William Randolph
Hearst, Joseph Pulitzer, William Allen White, and E.W. Scripps. These books
provide valuable insight into the decisions made by newspaper management, but
rarely review details of the papers and chains they managed.[2]
Books on E.W. Scripps contain few details on the corporate split, only that it
occurred.[3] Trimble's recent biography on E.W. Scripps, Astonishing Mr.
Scripps: The Turbulent Life of America's Penny Press Lord, includes some
information about the chain, but it deals with information only from the
perspective of E.W. Scripps through his correspondence. Trimble discusses the
corporate split, but he views it as an issue of a family squabble and reflects
the undeviating decision-making between the key members of family. The
participation of the management in the different parts of the chain is not
considered.[4] Another recent book by Casserly, Scripps, The Divided Dynasty: A
History of the First Family of American Journalism, reviews little of the
circumstances surrounding the split other than it occurred. The book then
develops a story around the Scripps League newspapers.[5]
Although trends in corporate media splits and consolidation continue to
develop, little information is known about early historical events and
developments in this area. Media economic history contains few details on the
business of chain journalism. There is little mention of corporate consolidation
or splits in media history textbooks. There are only brief mentions on chain
ownership and media concentration.[6]
The purpose of this historical study is to examine an early corporate split and
consolidation within the Scripps newspaper empire. It also will examine reasons
for the split and the effects upon employees, management, stockholders, and the
corporate structure. It further provides an illustration of E.W. Scripps
disintegrating power and his attempts to retain power.
This paper will look at the Scripps West Coast Newspapers, Harper Group of
Scripps, and the Scripps McRae League and the consolidation of the twenty-one
newspapers in these groups into Scripps McRae. The consolidation was a
preparatory step for reorganization into what would become Scripps Howard.
However, the consolidation was hampered by the split of seven newspapers into
the ownership of son Jim Scripps.
The Scripps Corporate Structure
E.W. Scripps began his newspaper career with an investment of $600 and one
share of stock in the Detroit News, a newspaper owned by his brother James. In a
move for independence E.W. started the Cleveland Press in 1878 with some
financial backing from his brothers James and George. In 1880 Scripps moved on
to St. Louis and purchased the Chronicle. After a brief set back in Buffalo, New
York and the loss of a paper in that city, Scripps turned his attention to
Cincinnati in 1883 and took over a struggling penny paper which became the Post.
These were the formative years of the Scripps newspaper empire. In 1887 Scripps
made Milton McRae managing director in St. Louis.[7] Scripps managed the Post
and the chain in Cincinnati. While there he launched another venture in the
Kentucky Post, across the Ohio River in Covington. This paper would be a
derivative paper of the Cincinnati Post.
In 1889 at age 36 Scripps was ready for retirement. He had become a wealthy man
for his age. Scripps was confident of McRae's sense as a business manager and
made him a partner. This new organization took the name Scripps-McRae League of
Newspapers. Scripps retired to California in 1890, leaving the management of the
newspaper group to McRae. Scripps retirement on the west coast did not last
long. He formed another group known in the correspondence as Scripps-Blades,
which was publicly known as Scripps West Coast Group. This new chain of
newspapers started or acquired papers in San Diego, Los Angeles, San Francisco
and many other West Coast cities that were not part of the Scripps McRae League.
He later invested money into papers his attorney J.C. Harper bought, thus
forming the Harper group of Scripps. He had a fourth venture which he held a
minority interest. With a former employee he formed Scripps-Kellogg, which would
later be known as Clover Leaf Newspapers.[8]
Over the next thirty years the Scripps empire would grow to twenty-one
newspapers and would increase twenty times in revenues. The move in 1920 toward
consolidation was an attempt to unite all of the Scripps interests for greater
profitability.
Analyzing the simultaneous split and consolidation of the company is difficult.
The tone of correspondence in the E.W. Scripps Papers at Ohio University, and
the Roy Howard papers at the Library of Congress suggests that the issues were
complicated involving developments in the Scripps chain between 1920 and 1922.
The letters are not consistent on issues of the change.
The analysis is further complicated by the management organization established
by E.W. Scripps. By 1906, the newspapers were under three different shell
organizations -- the Scripps West Coast Newspapers, Harper Group of Scripps, and
the Scripps McRae League, and remained that way until 1920 (see Table 1).
Table 1
Scripps Newspaper Empire - 1920
Scripps McRae Scripps West Coast Harper Group
Cleveland Press San Diego Sun Evansville Press
Cincinnati Post Los Angeles Record Terre Haute Post
Akron Press San Francisco News Denver Express
Toledo News-Bee Sacramento Star Dallas Dispatch
Columbus Citizen Spokane Press Memphis Press
Des Moines News Tacoma Times Houston Press
Oklahoma News Portland News
Seattle Star
The papers in these organizations represented a mixture of ownership. E.W. owned
different percentages of each newspaper. The balance of the stock was held by
family, managers, or editors of the respective newspapers. In the instance of
the Harper Group, E.W. sometimes held no stock, instead he held large notes for
money he had lent, thus he received interest payments rather than dividends.
The proposed change in the corporate organization was intended to realign the
papers under an umbrella company to make management of the different interests
easier. However, the separation of several newspapers by son Jim at the time of
proposed consolidation, created a far different arrangement that E.W. had
envisioned (see Table 2).
Table 2
Scripps Newspaper Empire - 1921
Scripps McRae League Jim Scripps
Cleveland Press San Diego Sun Portland News
Cincinnati Post Evansville Press Los Angeles Record
Terre Haute Post Akron Press Denver Express Toledo News-Bee Columbus
Citizen Dallas Dispatch
Sacramento Star Memphis Press Spokane Press
Des Moines News Houston Press Tacoma Times
Oklahoma News Seattle Star
San Francisco News
The split in the company involved different issues to different people. The
split did not happen overnight. It involved a two-year process of vacillating
decisions and counter-decisions. To Jim Scripps it was an issue of authority. He
had run the empire for twelve years, from 1906 to 1918, with little
interference. In 1918 the promotion of younger brother Bob to editor-in-chief
over other qualified men by his father E.W. appeared as usurping authority from
Jim. Later it became an issue of power as E.W. transferred his durable power of
attorney, granting vast authority in the business, from Jim to Bob. Lastly,
Jim's concern was independence from his father in operating newspapers. After
Jim's death in 1921, his wife Josephine was concerned with making the correct
investment decision. This involved honoring her deceased husband's desires,
while securing her own welfare and the future of her children. Motivating her
decision-making was a lack of understanding of the complicated issues involving
varying percentages of stockholdings in the different newspapers and a general
distrust of her father-in-law, E.W.
The issue to E.W. was at first power. E.W. had started and built the
organization and he wanted his wishes to be abided by, even if it meant
restructuring. Later, his concern became uniting the split organization to
protect the shareholders. Finally, the issue became one of mending family
relationships even at a substantial cost to himself. Bob Scripps's motive was
primarily to abide by his father's wishes. In this respect the issues
surrounding Bob were similar to his father's. Roy Howard's issue was different
than the others. At first he wanted to appease Jim and Josephine to reunite the
companies. When that did not appear to be likely, Howard desired to destroy the
break-off or "belligerent" papers as he referred to them. Because this involved
family, pressures were exerted from other family members who were also major
shareholders in the Scripps empire. The changing issues, organizations, and
management created complicated situations that were not easily resolved.
Power struggles for control
In 1920, Jim Scripps was general manager of the largest newspaper chain in
America - The Scripps Concern, which consisted of twenty-one papers. The
financial records reveal that Jim accomplished what his father and previous
general manager Milton McRae could not - consolidate the corporate growth and
build an organization. Prior to Jim's arrival as general manager in 1908, the
chain started or acquired twenty-five papers in thirty years of existence. Four
papers were sold or died. The chain also had full use of its own services in the
syndicated Newspaper Enterprise Association (NEA) and United Press (UP). As
general manager, Jim began to sell or eliminate unprofitable papers and added
only two in the next twelve years. Receipts from the papers more than quadrupled
from $3,472,000 in 1908 to $17,000,000 in 1920.[9] Jim promoted growth
differently than his predecessors. It appears that prior to his arrival as
general manager that corporate growth was measured in number of papers, not
revenue. Jim successfully reduced the number of papers while producing
substantial increases in revenue. The growth may have occurred anyway regardless
of the policies Jim implemented.
Alfred McClung Lee's book of the newspaper industry in the first quarter of the
twentieth century, explored industry trends on newspaper advertising. In 1908
total newspaper advertising revenue was $148 million, by 1920 the amount was
$521 million.[10] These figures suggest that the newspaper industry as a whole
increased more than three times. Jim could have potentially done little in terms
of management and administration and the Scripps newspapers may have still
thrived.
The year 1920, yielded large revenues for the Scripps newspapers, but it also
represented the last full year of Jim's management with the chain. Two years
previous in 1918, his father, E.W. Scripps worked and lobbied to keep his two
sons - Jim and Bob out of the Great War in Europe. World War I was fully under
way and E.W., being sixty-two years old, wanted his sons around to manage his
empire. They were the last two sons alive. Ted, his second son had died in 1899,
weeks before his eighth birthday. John Paul, his third son had died in 1914 at
age thirty-six. Jim, the oldest, had ten years experience as general manager of
the Scripps newspapers. Bob was twenty-three and had spent time under his
father's tutelage, primarily at the family ranch in Miramar, California. His
only experience in the newspaper business was as a reporter for the Humboldt
Times in Eureka, California, which provided early experiences in newswriting
with Bret Harte and Mark Twain.[11] Keeping Jim out of the war would not be
particularly difficult since he was general manager of the Scripps newspapers;
Bob's case proved to be more difficult because he was draft age and had a lack
of practical newspaper management experience. To accomplish his desires, E.W.
needed to give a position to Bob that could show the draft review board of his
necessity to the company. E.W. tried to let Jim make most of the decisions, but
to keep Bob out of the war he appointed him editor-in-chief. As chief
shareholder E.W. could make this move, but to the chagrin of Jim, who felt many
more men were qualified for the position. E.W. was able to keep his sons out of
the Great War only at the cost of precipitating a family war.[12] To E.W. the
move was necessary to preserve the chain for future generations and for him to
maintain control.
Jim was outraged. He felt his younger brother was not ready either to manage
men or produce editorial copy. Jim immediately set forth to undermine his
father's decision. He could do it, too. He was general manager, and held a
sizable block of stock. He also held a broad durable power-of-attorney granted
to him by his father. Politically, he held much power among the cadre that
surrounded him within the Scripps chain. Much of E.W.'s power elite had become
his personal advisors and were no longer involved in the management of the
chain. Early editors and confidants to E.W. were able to live on stock dividends
and had retired to advising positions or directors' chairs. Over the intervening
years, Jim built a new power group supporting his methods.[13] Jim made sure
that Bob as editor-in-chief could exercise no real authority.[14] Jim
corresponded with Seattle attorney John Perry to see how much power he had.
Perry handled much of the legal affairs for the west coast papers and was
minority shareholder in several of them. Jim did not consult the corporate
attorneys, J.C. Harper or Thomas Sidlo, because he knew word would get back to
his father.
Jim then exercised his control and made changes of his own. He elevated Jay
Curts, a former Scripps McRae corporate attorney, Jim's personal attorney, and a
man E.W. thoroughly disliked, to be regional manager to the west coast group of
papers. Jim promoted Byron Canfield from head of the NEA to his own staff as
assistant chairman of the concern. He did not invite E.W. to attend the annual
editorial conference. E.W. did not always attend, but he had always received the
invitation. E.W. was deeply disappointed with his son's actions.[15]
E.W. did not like the power struggle. For years he had stayed out of the
affairs of the chain, but occasionally he had to come back to exert his power.
This previously occurred in 1908 when he felt McRae had become to "cocksure" and
was exerting power and influence far outside his domain. His answer that time
was to replace McRae with his son Jim. McRae somewhat resolutely accepted the
change realizing that he was tired of the business.[16] Now E.W. had the same
dilemma with Jim and he took the same steps. He elevated Jim to chairman at a
salary of $36,000 a year but curtailed all his powers. Jim would be a figurehead
conducting business and collecting dividends. Bob now held the power-of-attorney
and title of general manager. Bob would manage control of the chain, family
trusts, and dividends. Jim had the title and Bob the power.[17]
Trimble suggests that this move was made because of the stubbornness and
bitterness of the father and son. That explanation is too simplistic. To make
this move E.W. would have required more than bitterness to remove Jim from
authority. With the rise in revenues and twelve years as general manager of the
chain, E.W. would not remove Jim from authority based on bitterness alone. E.W.
was losing control of the chain because Jim was challenging him. If E.W. did
nothing, then Jim would have demonstrated his ability to undermine E.W.'s
decisions. E.W. stepped forward to take steps to curtail Jim's power and show to
the family, the chain, and the industry who was in charge. In earlier years,
E.W. had replaced himself and retired, and then later replaced McRae when the
timing was right. These previous experiences had shown him that no one was
indispensable. To E.W., if Jim simply followed in the footsteps of himself and
McRae there would be no further problems. Jim's sizable salary and dividends,
amounting annually to between $45,000 and $80,000 would give him a comfortable
living. E.W. knew that the newspaper industry was riding a wave of popularity
with subscribers and advertisers and that Jim's future would be secure.[18]
Reorganization
The stress of the situation caused E.W. to consider consolidating all the
papers into a trust and the management of all papers under Scripps McRae. The
papers had been divided between the West Coast Group, Scripps McRae, and the
Harper Group of Scripps. E.W. did not want to lose control and he was desirous
of management consistency. He considered this move fifteen years earlier because
he felt the organization had grown too difficult to manage in its current
form.[19]
In the early months of 1920 E.W.'s attorneys devised a plan where a living
trust and holding company would be established. The money involved would be
sizable. The receipts in 1919 were almost thirteen million dollars.[20] Jim was
an integral part of the reorganization. In correspondence with McRae, E.W.
recorded that Jim balked and said, "that he would never let any of his stock go
into a holding company....that he would take his own properties and run them
separately if he had to." Jim often referred to the west coast papers as his
because his early days in the newspaper business were spent at these papers.[21]
E.W. tried to pacify his son by suggesting he take a year off from the pressures
of work.[22] June of 1920 became a decisive month. Jim threatened to smash his
father's control and take away everything. With Jim causing trouble, E.W.
realized Bob needed help and elevated Roy Howard, former United Press director,
to general manager of the concern.[23]
Shortly thereafter, Jim's west coast manager, John Perry, notified E.W. that he
no longer had authority over several of the west coast papers. The papers were
the Los Angeles Record, Seattle Star, Spokane Press, Tacoma Times, San Francisco
News, and the Portland News-Telegram. Perry's pronouncement was reinforced when
Bob gave an order for all papers to follow and the west coast group of papers
ignored it. E.W. inquired of Jim what it all meant. According to E.W.'s account,
Jim told E.W., "that you do not have legal control over these papers, and I do
not recognize your right to control."[24] This move by Jim seemed more motivated
by a desire for autonomy than an issue of money.[25]
At first there was some question whether Jim did have control of the papers.
But with some minority shareholders and editors' holdings Jim indeed had
control. Jim's plan constituted a hostile takeover of the papers. E.W. wanted
the papers to reorganize into the holding company. Not only was the move
hostile, but so was Jim's attitude. A review of the stock mixed showed that both
Jim and E.W. held only minority interests of several of the west coast
newspapers. The rest of the stock was held by the individual editors and
business managers. Jim needed to persuade these men to join him and as a voting
bloc the control would be under Jim, with E.W. holding a minority interest.
Jim also claimed he held title to the San Diego Sun, Denver Express, and the
Dallas Dispatch. E.W. had difficulty debating his ownership in Dallas and Denver
because he gave Jim these properties years before, but Jim only worked for the
Sun and that did not constitute ownership.[26]
Regardless of the move, E.W. directed Bob to pay Jim his chairman's salary. The
corporate leaders felt it would be easier to bring Jim back by cooperating and
helping, rather than fighting him. E.W. wasn't really concerned with Jim having
the papers. He knew Jim could manage them effectively. He was concerned about
the bitterness that developed between them. Jim quickly established headquarters
in Oakland, California while he retained his home at Miramar.[27]
For a brief period of time, Bob Scripps and Roy Howard ignored Jim as they
wasted little time in getting started in their new roles. They developed a plan
to start acquiring newspapers - a lot of them. In December the announcement came
of a new Scripps paper in Birmingham, Alabama to be called the Post.[28] The
launching of the Post is an indication of E.W.'s diminishing involvement in the
concern. He heard about the paper the day after its first issue.[29] The month
of December also brought news that Jim was ill with a fever, and on January 7,
1921, he died.[30]
Jim's mother, Nackie blamed E.W. for her son's death. In the days after the
funeral, E.W. retired to a study to write one of his "disquisitions" about Jim,
The time had come when it was no longer endurable for Jim to
submit to the commands of any other man, even his own father. There
was a contest lasting several years -- lasting in its acute form for
nearly a year. During all of this time, I had a divided mind with
regard to what I wanted my son to do. I am sure he enjoyed this
strife. Perhaps I am as tough-minded as my son is tough-minded.[31]
E.W. went to Jim's widow, Josephine, and offered to arrange for her and her
children's security for the rest of their lives by purchasing all of Jim's stock
for a million dollars.[32] The offer was extremely generous since Jim's stock
was valued at $488,000.[33] At the time she was unable to make a decision of
that magnitude. She felt she needed to take some time to understand every facet
of Jim's affairs. Josephine had not only the burden of Jim's death to deal with
but she also had the editors of the different papers under his control who were
not in harmony and were vying for control of the different properties.[34]
Thomas Sidlo, attorney for Scripps McRae suggested that Milton McRae might come
out of retirement to assist with the management of the west coast papers. McRae
agreed but stipulated he would do it for only a year. McRae would be a good
choice. McRae was a partner with E.W. yet they had strong differences. He
maintained a strong relationship with Jim yet questioned his recent moves. McRae
let E.W. and Josephine know that he would advise Josephine on what her best
interests would be, not what E.W. wanted. Actually, Milton McRae felt that
having the papers united would be in Josephine's best interest, because of her
lack of newspaper experience.[35]
Josephine took some time and in August announced that she was proceeding with
Jim's plan of a western organization for the newspapers. Josephine was
intelligent. E.W., Bob, and Roy admitted that, but they were unsure if she could
pull the whole thing off. Josephine was disturbed to find that her associates
had previously borrowed money from the Scripps McRae central office for various
phases of expansion. To clear these amounts off the books cost her twice what
she had estimated. The move to separate the papers from E.W. was becoming
increasingly more costly.[36]
In October, a new Hearst paper appeared in Seattle. This development lessened
E.W.'s desire to retrieve this market.[37] Meanwhile, in Oakland, McRae
continued to work strenuously at keeping the operations similar in hope of
merging the two back together.[38]
Across the bay from Josephine Scripps's corporate office remained one of the
last Scripps McRae papers on the west coast. The San Francisco News initailly
followed Jim, but with his death returned to Scripps McRae and was taking
directives from the officers in Cincinnati.
The News had battles trying to be successful against the Hearst-owned San
Francisco Call, and now Josephine and her partners were making attempts to
secure the News. News editor Eugene McLean held firm to his allegiance with
Scripps McRae.[39] Attempting to reinforce MacLean's decision, Mosher wrote,
Josephine Scripps is headed for all kinds of trouble. Knowing
the indifference of Canfield and Sanders and Flagg [west coast
newspaper editors] to rules and principles and methods, and knowing
the laziness of Curts and his carelessness to details, Josephine is
bound to have a world of trouble.[40]
Josephine was not having trouble. She lured away several other Scripps McRae
employees from the Cincinnati central office. She moved forward with her plans
and renamed the Coast papers the James G. Scripps newspapers. Bob Scripps was
adamant the papers stay with Scripps McRae, and he stated that he did not want
them renamed because the split would then be known industry-wide and could be
damaging for the whole chain.[41] Josephine balked at the move of renaming, she
was still dependent on Scripps McRae. She did not feel she had enough control or
had the financial backing necessary to anger Bob. She still needed to negotiate
her holdings in NEA, the Cleveland Press, and settle the ownership issue on the
Dallas Dispatch and Denver Express. The sale of stock from these enterprises
would give her the money she needed to continue with her plans, besides she
still needed access to information within Scripps McRae and to keep
communication channels open with Bob Scripps.[42]
Josephine could not take a risk on angering anybody. Her stock holdings
represented only a minority interest in the West Coast papers. She needed the
continued support of her colleagues. Her holdings in the different West Coast
papers represented:
Los Angeles 36.5%
San Francisco 31.0%
Tacoma 41.0%
Portland 21.3%
Seattle 36.0%
Spokane 25.0%
She relied on the editors of the respective papers to vote with her to give her
control in the split. This point was crucial since E.W. and his group,
consisting of Ellen Scripps and Bob Scripps, held a sizable amount of stock in
some of these properties:
Los Angeles 15.0%
San Francisco 20.0%
Tacoma 5.7%
Portland 44.0%
Seattle 33.0%
Spokane 49.0%
Josephine had every west coast editor voting her way except MacLean of the San
Francisco News. E.W. was still hopeful that he could persuade Canfield to vote
with him. Canfield's holdings in Los Angeles and Seattle could sway the
ownership issue either way. The difficulty to overcome would be Canfield's chief
involvement in the split. He figured to be a key member in the new organization.
Josephine intimated for some time that she was selling her majority share of
the stock in the Dallas Dispatch. McRae wired Bob Scripps on November 22, 1921
that Josephine was willing to trade stock in Dallas for San Francisco. Having no
offers she announced she would run the Dallas Dispatch.[43] Frustrated, McRae
realized that she was being advised by someone else and that he would need to
distance himself from her at this point. McRae realized he was being used. The
information and advice he gave only helped her accomplish the original plans of
breaking away. Disappointed, McRae returned home to Ohio.[44]
In December Josephine formalized the takeover. Meetings of shareholders and
trustees were now held in the new west coast newspaper company. The west coast
papers withdrew from the Cincinnati office, appointed Curts as treasurer, and
made Canfield and Sanders officers. They repudiated their contract with NEA and
the Scripps Editorial Service with the possibility of doing some future
business.[45] Bob Scripps responded with a shareholder's complaint against the
move. Bob also threatened Josephine that if she did not reconsider selling the
Dallas paper that Scripps McRae would be prepared to enter that market in the
future and then they would be competing.[46] Josephine responded by appointing a
publisher of the Dallas Dispatch. The formal split changed the company slightly
from when Jim had pulled away. MacLean, editor of the San Francisco News trusted
Jim's ability to run a group of newspapers, but not Josephine's ability.[47]
Roy Howard and Bob Scripps felt Josephine was being manipulated by her
associates. Her associates realized they would be out of jobs if the companies
reunited. Bob Scripps was still on friendly terms with Josephine and he worked
with her on the hope that she would bring the papers back. Howard wrote to Bob,
It will probably be difficult for you to fully estimate the
extent of bad advice (bad partly because it will be malicious and
partly because it will be brainless) of which Josephine is victim.
However, I feel it is inevitable that as Josephine sees your de
velopment and progress and contrasts it with the chaos and confusion
into which the machinations of her own self-seeking co-partners are
certain to plunge her properties, she will in time appreciate the
desirability of a reconciliation and a welding of the current breach.[48]
The assumption by Bob and Roy that Josephine was being manipulated is strongly
supported by the correspondence. Josephine changes her stance on issues in favor
of decisions for independence of the west coast papers without being able to
explain why. In meeting minutes with Scripps McRae she appears to want to
support E.W. and Bob's desires. Upon her return to the West Coast her view
changed and she advocated separation.[49]
Bob Scripps was reluctant to compete with Josephine in Dallas. He knew that
competition would just strengthen the ties with her partners.[50] Besides, in
the last year Bob and Roy worked hard to continue to build the chain in spite of
the difficulties with Josephine. During 1921, They launched or acquired six
papers in Birmingham, Alabama; Norfolk, Virginia; Fort Worth, Texas; Knoxville,
Tennessee; Des Moines, Iowa; and Washington D.C.[51]
Howard felt they needed a paper in Dallas. Bob felt differently about Dallas
than Howard, so he sent men to survey the situation. While they were surveying
the market they came across some of Hearst's men in Dallas. Scripps McRae papers
had competed with Hearst papers before and usually lost the battle. There was no
formal policy, but they attempted to stay clear of the cities where Hearst had
papers or was interested in starting one.[52]
In December Bob felt that E.W. needed to go West to attempt to settle matters
with Josephine. The two organizations were on the brink of war. Josephine was
threatening to sell stock in NEA and United Press to outsiders. The threat of
the West Coast papers canceling their services with these syndicates would only
precipitate lawsuits.[53]
In February 1922 Josephine had control of a sizable group consisting of the Los
Angeles Record, Seattle Star, Spokane Press, Tacoma Times, Portland
News-Telegram, and the Dallas Dispatch.
She made another attempt to purchase the San Francisco News. All of her current
properties were profitable except the Spokane Press. She had the necessary
capital, and now she wanted the San Francisco News. MacLean had his stock for
sale in the News and was willing to deal. Bob Scripps was interested in
Josephine purchasing the stock if she was willing to relinquish her holdings in
Dallas in exchange for the San Francisco stock.[54] MacLean refused to sell to
Josephine, and Bob bought the stock. The move infuriated her. E.W., attempting
to reconcile with his daughter-in-law, offered her enough stock to give her
control, but Bob Scripps and Howard blocked the move. San Francisco was
dominated by Hearst's Evening Call with Fremont Older as editor. Hearst
domination of the evening field only pleased Howard, realizing that if there
were to be a strong morning audience it would belong to the Scripps McRae owned
- News.[55] They further felt a necessity of maintaining a paper and strategic
position for expansion on the West Coast.
A feud was in the making. Bob Scripps and Howard wanted the West coast papers
and were tired of pacifying Josephine.[56] Howard advised against the sale of
the News by MacLean or E.W. He previously wanted conciliation but now he was
ready to fight the break-away papers. Howard felt relinquishing anymore papers
would be surrendering to Josephine. He wanted those markets back and needed San
Francisco as a leaping-off point. Howard now advocated overt action and going on
the offensive by severing ties.[57]
If the papers did not return to the Scripps Concern, Scripps McRae would expand
to the west coast markets with new papers and compete. E.W. had a plan for all
U.S. cities with populations over 100,000 to have a paper from the Scripps
chain.[58]
The plans for expansion did not stop, but the working relationship with
Josephine did. In March 1922, Howard sent orders from the New York office that
Josephine would receive only brief sanitized financial statements in the future
on those papers she still held an interest in Scripps McRae.[59]
When Howard went to the West coast to assess the situation. He found the
Portland News-Telegram vulnerable. In Los Angeles the Record had a small
circulation and was messy typographically. Hearst's Herald dominated the Los
Angeles market in the evening. Howard advocated starting a morning paper to go
up against the Record. The new Scripps McRae tabloid in Los Angeles could sell
at a penny. Howard's plan included withholding NEA, United Press, and Scripps
Editorial Board features from the Record and transferring the services to the
new paper. Howard even identified key men with the Record to lure away. At most
Howard felt it would take eighteen months to be number two in the market.[60]
Bob Scripps and Howard did not blame Josephine for the split. They felt she was
continuing to be manipulated by Curts and Canfield. Howard and Bob Scripps now
referred to their enemy as the Curts-Canfield papers or the C-C group. In his
review of western cities and newspapers, Howard related,
I am infinitely more certain of the vulnerability of the C-C
papers than I have ever been before. I would suggest early
consideration by us on the advisiblity of an ultimatum to the
belligerent papers....For my own part, all other considerations being
equal, I would today rather take my chance on a new start in Los
Angeles and Seattle than I would to take on the devitalized and
demoralized properties in those cities.[61]
Their strategy for attacking the "belligerent" papers would be to cut their
services from Scripps McRae. The United Press (UP) and Newspapers Enterprise
Association (NEA) would be cut off and made available to the new start-up
Scripps McRae papers. Since Hearst had papers operating in Los Angeles, Seattle,
and Portland the company services from the Hearst Corporation would not be
available. This would eliminate the International News Service (INS) and King
Features Syndicate as viable alternatives. Associated Press already had its
service tied-up in these markets since it gave customers exclusive service.
Cutting the features would create an inferior paper to compete against.[62]
In March of 1922 Howard wanted to give the Curts-Canfield group one last
opportunity to stay in the Concern and play by the chain's rules and terms.
Withdrawing the services from the West Coast papers would draw lawsuits, and
Howard wanted to move ahead with full force to find out what moves the West
Coast papers would make against the chain.[63] This stance by Howard was either
a bluff or naive ignorance. The income from these services was so large that to
just withdraw services would have financially crippled NEA, United Press, and
Scripps Editorial Service. The lawsuits against Scripps McRae would have
emphasized the monopolistic control of services by the chain, creating a
difficult case to win in an era that just finished "trustbusting". E.W.
certainly did not wabt any more friction with his daughter-in-law, as all of his
suggestions were to mend any bad feelings. Whatever the motivation may have
been, Scripps Howard never did start competing papers against Josephine, nor was
their any evidence of lawsuits found in the correspondence in the E.W. Scripps
archive or the Roy Howard papers.
The loss of the markets to the West Coast group concerned Bob Scripps and
Howard. Dallas was one of the cities in which the aggressive Scripps McRae
company wanted to expand even though the West Coast group had a paper there. In
May they sent Bill Culver to survey the South for cities ready for expansion. He
identified twenty-seven markets for potential expansion. The plan called for
Scripps McRae to wait for already established papers willing to sell out, and
then buy the property for a reduced price.[64] Culver also surveyed and
recommended immediate expansion into Baltimore with a tabloid paper with further
expansion into Philadelphia, Wilmington, and Newark.[65] Plans also were in the
works for United Press to produce a weekly newsreel.[66]
In November 1922 Scripps McRae became Scripps Howard. The new chain encompassed
twenty-five newspapers. The only papers missing from the chain were the five
west coast papers now under control of the newly-named Scripps League of
newspapers.[67]
The plan they developed was based on E.W.'s vision and called for expansion or
acquisition of up to one hundred papers. Their future plans were large even
grandiose - a paper in 100 markets (including papers located in the former west
coast cities), a newsreel, and national weeklies.[68]
Conclusion
The plan of moving into markets held by the Scripps League of Newspapers did
not appear feasible. Roy Howard and Bob Scripps used their energies exploring
other markets. This was primarily due to the fact that E.W. Scripps and other
family members still held a financial investment in the newspapers in the new
Scripps League. To compete with a paper they had an investment in would cut into
their own dividends.
Bob and Roy turned their attention to other markets. In 1922 and 1923 they
expanded to Youngstown, Ohio, Indianapolis, El Paso, Baltimore, Pittsburgh, and
Albuquerque. This new expansion brought their total to twelve new markets. The
acquisition of these markets took time to organize and administer. With each new
expansion by Scripps Howard, the Scripps League became a lessening concern.
Although the split separated the chain, the potential loss of income from the
separation was not the main issue. The issue was one of control and potential
industry perception. It is possible that Jim Scripps would have rejoined his
efforts with Scripps McRae, but his death makes the point insignificant.
Josephine kept the papers separate for two reasons; she distrusted her
father-in-law and thus wanted to protect her investment and income, and her
colleagues recommended separation as the best course, which, for them separation
would be the best option.
The problem for Bob Scripps and Howard was perceived industry perception of the
split situation. Both were new in the industry elite and wanted to demonstrate
their influence and control, and the problems with Josephine could potentially
look to others as if these two newcomers could not handle the Scripps empire.
The issue for these men became egocentricity. They were out maneuvered by a
woman with no newspaper experience.
The greater importance may lie in that the separation of the Scripps empire
into two chains constitutes a casualty ocorporate journalism. Prior to the onset
of corporations and stockholders, newspapers were closely held by individuals or
within a family. The varying percentages allocated to many different parties
made it feasible for the first time for a group of individuals to realign
property against the wishes of founder or another primary shareholder. The chain
concept worked well for Scripps as it helped provide capital for growth and
provided stability for papers running in the red. In this instance the chain
concept worked against him, and the newspaper industry experienced a taste of
what would come over the next several decades as the industry shifted from
sole-ownership to corporate ownership.
Endnotes
[1] See Edward E. Adams, "Secret Combinations and Collusive Agreements: The
Scripps Newspaper Empire and the Early Roots of Joint Operating Agreements,"
Journalism Quarterly 73 (Spring 1996): 195-205; Carolyn Stewart Dyer, "Economic
Dependence and Concentration of Ownership Among Antebellum Wisconsin
Newspapers," Journalism History 7 (Summer 1980): 42-46; Marion Reynolds King,
"One Link in the First Newspaper Chain, The South Carolina Gazette," Journalism
Quarterly 9 (September 1932): 257-268; Ralph Frasca, "Benjamin Franklin's
Printing Network," American Journalism (1988), 5:145-158; Richard Ruetten,
"Anaconda Journalism, The End of an Era," Journalism Quarterly 37 (Winter 1960):
3-12, 104; Cathy Packer, "Conglomerate Newspaper Ownership: International Paper
Company, 1928-1929," Journalism Quarterly 60 (Autumn 1983): 480-483, 567.
[2] James Wyman Barrett, Joseph Pulitzer and his World (New York: Vanguard,
1941), and George Britt, Forty Years - Forty Millions: The Career of Frank
Munsey (New York, Farrar & Rinehart, Inc., 1935), and Negley D. Cochran, E.W.
Scripps (New York City: Harcourt, Brace and Company, 1933), and Copley Press
(Aurora, Illinois: The Copley Press, Inc., 1953), and Gilson Gardner, Lusty
Scripps (New York City: Vanguard Press, 1932), and Loren Ghiglione, Gentlemen of
the Press (Indianapolis: RJ Berg, 1984), and Roy Hoopes, Ralph Ingersoll (New
York: Anthenum, 1985)and Oliver Knight, I Protest (Madison, Wisconsin:
University of Wisconsin Press, 1966), and Ferdinand Lundberg, Imperial Hearst
(New York: Equinox Cooperative Press, 1936), and Milton A. McRae, Forty Years in
Newspaperdom, (New York City: Bretano's, 1924), and Charles McCabe, Damned Old
Crank: A Self Portrait of E.W. Scripps (New York: Harper and Brothers, 1951),
and Daniel W. Pfaff, Joseph Pulitzer II and the Post-Dispatch: A Newspaperman's
Life (The Pennsylvania State University Press: Pennsylvania, 1991), and George
Seldes, Lords of the Press (New York: Montouak Bookbinder Corporation), and John
Tebbel, The Life and Good Times of William Randolph Hearst (New York: Ed Dutton
& Company, Inc. 1952), and Vance Trimble, Scripps-Howard Handbook, (Cincinnati:
E.W. Scripps Company, 1981), and Vance Trimble, The Astonishing Mr. Scripps: The
Turbulent Life of America's Penny Press Lord (Ames Iowa: Iowa State Press, 1992)
and Samuel T. Williamson, Frank Gannett (Duell, Sloan, and Pearce: New York,
1940).
[3] See Gilson Gardner, Lusty Scripps (New York City: Vanguard Press, 1932), and
Negley D. Cochran, E.W. Scripps (New York City: Harcourt, Brace and Company,
1933), and Charles McCabe, Damned Old Crank: A Self Portrait of E.W. Scripps
(New York: Harper and Brothers, 1951), and Oliver Knight, I Protest (Madison,
Wisconsin: University of Wisconsin Press, 1966).
[4] Vance Trimble, Astonishing Mr. Scripps: The Turbulent Life of America's
Penny Press Lord (Iowa State University Press: Ames, Iowa, 1992).
[5] Jack Casserly, Scripps, the Divided Dynasty: A History of the First Family
of American Journalism, (Donald I Fine, Inc.: New York, 1993).
[6] See Edwin Emery and Michael Emery, The Press in America, An Interpretative
History of the Mass Media, (Englewood Cliffs, New Jersey: Prentice Hall, Inc.,
1984), and William D. Sloan, James G. Stovall, and James D. Startt, The Media in
America, (Worthington, Ohio: Publishing Horizons, Inc., 1989), and Jean Folkerts
and Dwight Teeter, Voices of a Nation (New York: Macmillan Publishing Company,
1989).
[7] Cochran, "E.W. Scripps," p. 59.
[8] E.W. Scripps Autobiography, E.W. Scripps papers, Archive Collection, Ohio
University, Athens, Ohio, series 4, box 10, volume 1, hereafter known as E.W.
Scripps papers.
[9] Financial statement on total receipts from circulation and advertising,
E.W. Scripps papers, subseries 1.2, box 20, folder 6,
[10] Alfred M. Lee, The Daily Newspaper in America (The Macmillan Company: New
York, 1937), 61-81.
[11] "Scripps McRae becomes Scripps Howard," Editor & Publisher, November 4,
1922, pp. 3-6.
[12] See E.W. Scripps to Nackie Scripps, Sept. 23, 1917, E.W. Scripps papers,
subseries 1.2, box 18, folder 5; and "Wilson exempts Scripps's Son," Los Angeles
Times, Oct 17, 1917.
[13] E.W. Scripps Diary, January 25, 1919, E.W. Scripps papers, subseries 2.1,
box 19, folder 3.
[14] E.W. Scripps to Ellen B. Scripps, Feb 1, 1919, E.W. Scripps papers,
subseries 1.2, box 19, folder 4.
[15] Trimble, "Astonishing Mr. Scripps," p. 410
[16] E.W. Scripps to Lemuel T. Atwood, December 6, 1906, E.W. Scripps papers,
subseries 1.2, box 8, folder 5.
[17] James G. Scripps to Charles F. Mosher, October 14, 1919, E.W. Scripps
papers, subseries 3.1, box 53, folder 9.
[18] Financial statement on total receipts from circulation and advertising,
E.W. Scripps papers, subseries 1.2, box 20, folder 6.
[19] E.W. Scripps to Milton A. McRae, October 6, 1906, E.W. Scripps papers,
subseries 1.2, box 6, folder 12.
[20] Financial statement on total receipts from circulation and advertising,
E.W. Scripps papers, subseries 1.2, box 20, folder 6.
[21] E.W. Scripps to Milton A. McRae, February 23, 1920, E.W. Scripps papers,
subseries 1.2, box 19, folder 2.
[22] James G. Scripps to Charles F. Mosher, October 14, 1919, E.W. Scripps
papers, subseries 3.1, box 53, folder 9.
[23] E.W. Scripps to Harry Smithton, June 11, 1920, E.W. Scripps papers,
subseries 1.2, box 19, folder 12.
[24] E.W. Scripps Diary, August 14, 1921, E.W. Scripps papers, subseries 1.2,
box 20, folder 6.
[25] Josephine Scripps to Robert P. Scripps, November 12, 1921, E.W. Scripps
papers, subseries 3.1, box 55, folder 10.
[26] E.W. Scripps to James G. Scripps, December 27, 1915, E.W. Scripps papers,
subseries 1.2, box 17, folder 1.
[27] Trimble, "Astonishing Mr. Scripps," p. 490.
[28] For history of the Birmingham Post start-up see Expenditure of new papers
report, Charles F. Mosher to E.W. Scripps, May 4, 1922, E.W. Scripps papers,
subseries 1.1, box 39, folder 7.
[29] E.W. Scripps to Management - Birmingham Post, January 22, 1921, E.W.
Scripps papers, subseries 1.2, box 20, folder 5.
[30] Milton A. McRae to Roy W. howard, December 21, 1920, E.W. Scripps papers,
subseries 3.1, box 54, folder 11.
[31] E.W. Scripps Writings, E.W. Scripps papers, series 4, box 5, volume 9.
[32] E.W. Scripps dairy, January 29, 1921, E.W. Scripps papers, subseries 1.2,
box 20, folder 5.
[33] Jay W. Curts to E.W. Scripps, August 5, 1921, E.W. Scripps papers,
subseries 1.1, box 39, folder 6.
[34] Discussion with Josephine, E.W. Scripps diary, January 12, 1921, subseries
1.2 box 20, folder 5, page 3.
[35] Milton A. McRae to E.W. Scripps, May 30, 1921, E.W. Scripps papers,
subseries 1.1, box 39, folder 6.
[36] E.W. Scripps to Ellen B. Scripps, September 28, 1921, E.W. Scripps papers,
subseries 1.2, box 20. folder 6.
[37] E.W. Scripps to Ellen B. Scripps, October 22, 1921, E.W. Scripps papers,
subseries 1.2, box 20, folder 11.
[38] Robert P. Scripps to Harry L. Smithton, October 31, 1921, E.W. Scripps
papers, series 3.1, box 55, folder 9.
[39] E.W. Scripps to Ellen B. Scripps, October 27, 1921, E.W. Scripps papers,
subseries 1.2, box 20, folder 11.
[40] Charles F. Mosher to Eugene MacLean, November 4, 1921, E.W. Scripps papers,
subseries 3.1, box 55, folder 9.
[41] Robert P. Scripps to Josephine Scripps, November 4, 1921, E.W. Scripps
papers, subseries 3.1, box 55, folder 10.
[42] Josephine Scripps to Robert P. Scripps, November 12, 1921, E.W. Scripps
papers, subseries 3.1, box 55, folder 10.
[43] Milton A. McRae to Robert P. Scripps, November 23, 1921, E.W. Scripps
papers, subseries 3.1, box 55, folder 10.
[44] Milton McRae to Robert P. Scripps, November 23, 1921, E.W. Scripps papers,
subseries 3.1, box 55, folder 10.
[45] Robert P. Scripps to Spokane Newspaper Company, November 28, 1921, E.W.
Scripps papers, subseries 3.1, box 55, folder 10.
[46] Robert P. Scripps to Josephine Scripps, November 28, 1921, E.W. Scripps
papers, subseries 3.1, box 55, folder 10.
[47] J.C. Harper to Robert P. Scripps, November 30, 1921, E.W. Scripps papers,
subseries 3.1, box 55, folder 10.
[48] Roy W. Howard to Robert P. Scripps, December 2, 1921, E.W. Scripps papers,
subseries 3.1, box 55, folder 10.
[49] See Robert P. Scripps to Josephine Scripps, November 4, 1921, E.W. scripps
papers, subseries 3.1, box 55, folder 10; and Josephine Scripps to Robert P.
Scripps, November 12, 1921, E.W. Scripps papers, subseries 3.1, box 55, folder
10; Milton A. McRae to Robert P. Scripps, November 23, 1921, E.W. Scripps
papers, subseries 3.1, box 55, folder 10; Robert P. Scripps to Josephine
Scripps, November 28, 1921, E.W. Scripps papers, subseries 3.1, box 55, folder
10.
[50] Roy W. Howard to Robert P. Scripps, December 3, 1921, E.W. Scripps papers,
subseries 3.1, box 55, folder 10.
[51] Charles F. Mosher to E.W. Scripps, May 4, 1922, E.W. Scripps papers,
subseries 1.1, box 39, folder 7.
[52] Robert P. Scripps to Roy W. Howard, December 5, 1921, E.W. Scripps papers,
subseries 3.1, box 55, folder 10.
[53] Robert P. Scripps to E.W. Scripps, December 6, 1921, E.W. Scripps papers,
subseries 3.1, box 55, folder 10.
[54] Robert P. Scripps to E.W. Scripps, February 11, 1922, E.W. Scripps papers,
subseries 3.1, box 55, folder 11.
[55] Roy W. Howard to Robert P. Scripps, August 13, 1922, E.W. Scripps papers,
subseries 3.1, box 55, folder 12.
[56] E.W. Scripps diary, February 13, 1922, dictated by Harry Smithton, E.W.
Scripps papers, subseries 1.2, box 20, folder 5.
[57] Roy W. Howard to Robert P. Scripps, March 6, 1922, E.W. Scripps papers,
subseries 3.1, box 55, folder 11.
[58] E.W. Scripps diary, February 13, 1922, dictated by Harry Smithton, E.W.
Scripps papers, subseries 1.2, box 20, folder 5.
[59] Harry Smithton to Robert P. Scripps, March 9, 1922, E.W. Scripps papers,
subseries 3.1, box 55, folder 11.
[60] Roy W. Howard to Robert P. Scripps, August 15, 1922, E.W. Scripps papers,
subseries 3.1, box 55, folder 12.
[61] Roy W. Howard to Robert P. Scripps, April 16, 1922, E.W. Scripps papers,
subseries 3.1, box 55, folder 11.
[62] Roy W. Howard to Robert P. Scripps, April 15, 1922, E.W. Scripps papers,
subseries 3.1, box 56, folder 11.
[63] Roy W. Howard to Robert P. Scripps, April 16, 1922, E.W. Scripps papers,
subseries 3.1, box 56, folder 11.
[64] Bill Culver to Bob Scripps and Roy Howard, May 26, 1922, E.W. Scripps
papers, subseries 3.1, box 55, folder 12.
[65] Bill Culver to Bob Scripps and Roy Howard, May 26, 1922, 2nd letter, E.W.
Scripps papers, subseries 3.1, box 55, folder 12.
[66] Roy W. Howard to E.W. Scripps, May 3, 1922, E.W. Scripps papers, subseries
1.1, box 39, folder 7.
[67] "Scripps McRae becomes Scripps Howard," Editor & Publisher, November 4,
1922, pp. 3-6.
[68] Roy W. Howard to E.W. Scripps, May 3, 1922, E.W. Scripps papers, subseries
1.1, box 39, folder 7.
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