Edition, May 23, 2001, Page 1
HANDLES ISSUES FOR DAIRY MGMT.
Dairy Management Inc. has selected Weber Shandwick Worldwide
for its "issues management" account, according
to Jean Ragalie, executive VP, public & industry relations
Fleishman-Hillard, Edelman PR Worldwide, Burson-Marsteller
and Porter Novelli also pitched the account, which could
be worth $2 million.
Ragalie picked WSW because the firm presented the most "comprehensive"
PR package during the pitch.
Sara Galvin heads the DMI account from WSW's Minneapolis
office. She is supported by staffers in Washington, D.C.
"Mad cow disease" and foot and mouth disease are
potential issues for WSW to deal with.
Jerry Swerling, Marina del Rey, Calif., consulted for DMI
on the PR search.
Ogilvy's Lovallo, PN's Travatello join WSW
Ogilvy PR Worldwide's John Lovallo has joined Weber Shandwick
Worldwide as executive VP-corporate & investor relations.
He was senior VP at Ogilvy responsible for IR/financial
communications. Lovallo also put in stints at Morgen-Walke,
Banker's Trust and European American Bank.
Porter Novelli's Lisa Travatello is now executive VP-consumer
and creative director at WSW. She also worked at Edelman
PR Worldwide and Ogilvy & Mather during her 20-year
career in PR.
WSW, in another move, made consultant Jack Domeischel an
He was on the WSW team that recently won Novo Nordisk's
Friedman, a top communicator in the social responsibility
and human rights sectors, is now at Burson-Marsteller. She
joins from the Council on Economic Priorities, and did stints
at two human rights groups. She is to bridge the gap between
B-M's multinational clients and NGOs...Hill and Knowlton
has picked up Central Park SummerStage as a client, and
will pitch it as one of New York's top cultural attractions.
H&K also will handle media relations for the 2001 festival
of 28 free shows of dance, opera and spoken word that run
from mid-June to mid-August. H&K will be paid a retainer
and contribute matching pro bono time to SummerStage, which
has attracted more than five million people since it was
founded in 1986.
DIRECTORY LISTS 2,900 FIRMS
The 2001 O'Dwyer's Directory of PR Firms, which will
be published in mid-June, will have listings on 2,903 PR
firms including 2,154 in the U.S. and 749 in 58 foreign
countries. It is the largest PR Directory ever.
Providing agency statements and logos were 427 firms. These
firms also appear on the O'Dwyer website, which is open
yearlong for additional firms. Listings can be sent directly
to the website.
The new directory will rank the 171 independent and ad agency-owned
PR operations that provided the documentation the O'Dwyer
Co. has been collecting for 31 years. Thirteen ad agency-related
PR operations that declined to supply any proofs are listed
separately without dollar figures in the cities where they
operate. The $175 directory can be purchased via the website,
by phone or mail.
GUGGENHEIMER PLEDGES DENNY DRIVE
Elinor Guggenheimer, founder of the New York Women's Agenda
which represents groups with total membership of 100,000
women, pledged May 17 to seek reforms that will prevent
residents of nursing homes from being held incommunicado.
The Wilton Meadows Health Care Center, Wilton, Conn., has
admitted that it wrongfully barred most visitors, mail and
phone calls to the late Denny Griswold during the first
nine months of her stay at the nursing home starting Aug.
All contacts from the outside world had to be approved by
Susan Prager Garrett, niece of Griswold, who held power
of attorney for the founder of PR News and who has
apparently inherited the entire $10M+ estate of Griswold.
The home has said it improperly interpreted the power of
attorney and that after complaints were made to the Connecticut
Long Term Care Ombudsman, visitors were allowed.
However, none of the 55 friends of Griswold at the memorial
service for her at the Penn Club May 17 was able to contact
her by mail, phone call or visit after she entered the nursing
home in 1995.
Guggenheimer said: "I pledge today that we're going
to fix this up...she needed to know how you felt...we can
never allow this to happen again."
The leader of the New York women's community said she tried
"once" to contact Griswold when she found out
she was in Wilton Meadows. "I was
on page 7)
Edition, May 23, 2001, Page 2
HIT FOR 'SMASHMOUTH PR.'
Oracle CEO Larry Ellison is using "smashmouth PR"
tactics by issuing press releases attacking competitors
such as Siebel Systems, i2 Technologies and PeopleSoft.
That's the opinion of Forbes ASAP, which has a piece
in its May 28 issue about how Oracle has brought "Washington-style
mudslinging to Silicon Valley."
Alan Kelly, CEO of Applied Communications, which does Oracle's
PR, told Forbes ASAP that his job isn't mainly to
position Oracle in the marketplace, but to "de-position"
Mark Jarvis, Oracle's chief marketing officer, said each
week he carefully plans what competitor to pick on.
He belittled Siebel, i2 and PeopleSoft as bit players, and
said Oracle likes to have its "dog growl at them occasionally."
Oracle may be setting itself up for a fall, according to
PR guru Regis McKenna, who once sat on its board.
He noted that attacks on a competitor may draw sympathy
for it, or create an interest that didn't previously exist.
That's what happened to PeopleSoft, said its CEO Craig Conway.
He said Oracle issued a media alert on Jan. 29- right before
PeopleSoft was to release its earnings- urging journalists
"to remain skeptical of the difference between [Conway's]
claims and the reality behind them."
Analysts, said Conway, noted the release, and told him 'you
guys must be doing well, if Oracle is starting to bash you."
HELPED LURE BOEING
Golin/Harris International played a major behind-the-scenes
role in getting Boeing to relocate its headquarters from
Seattle to Chicago, according to Rich Jernstedt, CEO of
the PR firm.
He said G/HI advised Mayor Richard Daley and Illinois Gov.
George Ryan on the need for a communications campaign to
show Boeing that the people of Chicago and its companies
are "friendly to Big Business."
The "leaders of government, business, labor and community
organizations in Chicago have been willing to work together
for the good of the city," wrote Daley in a letter
It touted world-class institutions such as Chicago Symphony
Orchestra, Art Institute of Chicago, Lyric Opera, and the
G/HI Developed Pro-Chicago Message
G/HI developed the overall pro-Chicago messages, designed
a brochure, participated in press conferences, monitored
the media and helped prepare the pitch made to Boeing.
President Dave Gilbert headed the effort which was coordinated
with Shelia O'Grady, Daley's chief of staff.
Boeing CEO Phil Condit announced May 11 that he would move
500 employees to Chicago, which beat out Denver and Dallas.
Boeing received more than $40 million in incentives to move
Arthur Andersen estimates that Boeing will have a $4.5 billion
impact on the city's economy.
GETS $600K PACT FROM MACEDONIA
Macedonia, which is waging a war against ethnic Albanian
rebels, has signed well-connected lobbyist Barbour Griffith
& Rogers to a $30,000 a-month contract, plus $3,500
in expenses for government relations and trade promotion.
The contract runs through the end of next year.
The New York Times, on May 18, ran a story called
"A Trail of Misery as Macedonia Fights Albanian Insurgency"
that blamed Macedonian security forces for "spreading
fear as well as exacerbating ethnic tensions."
BG&R's job is to improve Macedonia's ties with the U.S.
and European governments, as well as court investors from
the information technology sector.
It will pitch the former Yugoslavia republic as a "strong
democratic ally in an unstable part of the world,"
according to the firm's contract.
BG&R already arranged a dinner for Macedonia's President
Trajkovksi in Washington, D.C., with U.S. executives. The
topics ranged from the prospective Balkan policies of the
Bush Administration, trade/investment and how the U.S. can
help with the "recent border instability."
The Times says Macedonia-though it retains broad international
support--has lost territory to the rebels in recent weeks.
PRO SAYS MATERIALISM POSES THREAT
New York PR counselor Robert Dilenschneider urged the graduating
class of Muskingum College, in New Concord, Ohio, to reject
today's American culture, which "celebrates buying
and taking and ignores content and ideas."
Dilenschneider, who was awarded an honorary doctoral degree
in public service by the school, said the character flaws
that destroyed some of the great civilizations in the past
have afflicted the U.S.
"We embrace four-letter words in our music. We actually
consider watching someone being executed on TV. We read
about outrageous executive salaries and are regaled with
list after list of who is most important and powerful,"
He said graduates must "rekindle" the American
spirit "before we spiral down further into the pit
of bad taste and incivility."
He said there are several occupations where graduates can
"give back," including public servant, journalist,
Edition, May 23, 2001, Page 3
DIARY' DEBUTS IN N.Y. TIMES
does a food reporter eat?
Two dozen doughnuts, for one story, scallops at five different
restaurants for another.
What about in "real life," on a first date, when
home alone or cooking for someone special?
Amanda Hesser will share her experiences and adventures
in her new food column ("Food Diary") that made
its debut May 13 in The New York Times Magazine.
The column will alternate with Jonathan Reynolds's "Food"
column and together replace free-lancer Molly O'Neill's
Hesser is a trained cook, cookbook author and food reporter
while Reynolds, a playwright and screenwriter, has no food
"Any reporter who covers a beat obsesses on his or
her subject," said Amy Spindler, style editor of the
Hesser's column will take inspiration from her life and
will provide continuing story lines with returning characters,
while Reynolds's column will continue to range far and wide
with eclectic stories.
ECONOMIST TO PRINT IN COLOR
The Economist has begun using four-color photographs,
artwork and graphics.
The magazine will give its cover a more contemporary look,
and will also streamline its layout to provide easier navigation
of the sections. Each section will contain its own table
of contents and there will be subtle changes to the whole
look and feel of the paper.
Editor Bill Emmott said the new look is in line with The
Economist's tradition of taking world affairs, of all levels
of seriousness and complexity, and making them understandable
to all readers.
He said new readers will find "us easier on the eye
but just as stimulating to the brain."
The weekly magazine, which is based in London, reports and
analyzes a range of topics in world politics, business,
finance, science and technology, culture and society.
Over 760,000 people worldwide subscribe to or buy the magazine,
delivering an estimated audience of some three million readers
The Economist's largest market is North America which has
nearly 350,000 subscribers.
ELECTED PRESIDENT OF SABEW
Bill Barnhart, a financial columnist at The Chicago Tribune,
was elected president of the Society of American Business
Editors and Writers on May 2 at SABEW's 38th annual convention
in New York.
More than 3,000 business journalists in North America are
members of SABEW, which is headquartered at the Univ. of
Missouri school of journalism, in Columbia, Mo.
ELLE SPIN-OFF TARGETS TEEN GIRLS
Hachette Filipacchi, which publishes Elle, will start
ElleGirl.com, a website in June, and Elle Girl, a
print magazine, in August, followed by four more issues
The new entries, which are aimed at teenage girls, will
compete against Seventeen, YM, Teen, Teen People, CosmoGirl,
Twist, Teen Vogue, and Teen Beat, Tiger Beat &
According to Teenage Research, Northbrook, Ill., the 31.6
million U.S. teen population spent $155 billion last year.
Cable Neuhaus, who is general editor of Entertainment
Weekly, based in New York, oversees the magazine's coverage
of the Internet.
His staff covers the Internet and produces the monthly supplement,
"Entertainment Weekly Internet," which includes
reviews of TV and film websites, as well as updates about
entertainment on the web.
Neuhaus' job is to match the story to the writer and then
to edit the story so it feels like an Entertainment Weekly
He can be pitched by e-mail at: [email protected].
Carrie Donovan is rejoining The New York Times
Magazine, where she was style editor for 17 years, as
a contributing editor.
Amy Spindler, who is style editor, said Donovan will interview
designers for a regular column, called "Conversations
with Carrie," that will run in both the weekly Sunday
magazine and the Part 2's as part of the "Footnotes"
Donovan's first column is set to run June 17.
Since retiring from the Times in 1994, Donovan has been
featured in Old Navy ads as its spokesman.
Pauline Frommer, editor of Arthur Frommer's Budget Travel
Online, seeks stories about vacations that cost less than
$100 a day.
She is open to all types of travel stories, including package
deals, destinations, cruises, and accommodations. Contacts:
The website is visited by almost two million readers a month.
Business Wire said its recent media relations survey
shows journalists want greater control over their outreach
to news sources, and more direct contact with industry experts.
As a result, BW has redesigned ExpertSource, its password-protected
Registered journalists can use the free service to get the
names, profiles and contact information on some 8,500 industry
and academic experts.
Journalists can register for the free service at www.businesswire.com/expertsource.
news continued on next page)
Edition, May 23, 2001, Page 4
PULL ADS OVER BAD NEWS
The New York Post reported on May 15 that two grocery
chains-Gristedes and Associated-have pulled their ads from
The New York Daily News for its series of articles
on supermarket inspections by the New York Health Department.
"Page Six" said Daily News owner Mort Zuckerman
had initially praised the paper's "Dirty Shame"
series, but toned it down and moved it off the front page
after the grocery chains pulled their ads.
The Post also claims the News owner helped edit articles.
A News spokesman, Ken Frydman, said Zuckerman did not line-edit
Gristede's chairman John Catsimatidis told Page Six that
the stories were inaccurate.
The News used information from the Health Department, which
had mistakenly listed the Gristede's at 251 W. 86th st.
as one of "The Worst Supermarkets" in the city.
The store had failed inspections, in June 2000 and Sept.
2000, due to street repairs which brought in vermin and
dirt. But the stores more recently passed inspections, in
Nov. 2000 and Feb. 2001.
The story was picked up by radio station WINS.
The second piece included several quotes from angry supermarket
spokespeople, including Gristede's, and a companion story
noted that "eight of the 10 stores passed reinspections."
The third installment, which ran on May 6, was a guide to
"super shopping" and included a box called "Gristede's
report"-which offered an apology to the chain.
SHOWS HOW NEWS/ADS INTERACT
The author of a new study that compares news coverage and
advertising found each has its own impact on consumers,
and these impacts interact to influence perceptions, attitudes
The study, which examines the differences in effectiveness
of media coverage and advertising for AT&T over a specific
period, was conducted by Bruce Jeffries-Fox of the Insight
Farm, a Burrelle's/VMS company, for the Institute for PR,
The author reached these other conclusions:
-In times of "normal" news coverage-i.e., mostly
positive with some negative-news and advertising work together,
and incremental advertising has a positive impact on attitudes.
-In times of widespread and extremely positive news coverage,
the incremental positive impact of advertising is much less
than in normal times.
-In times of widespread and extremely negative news coverage,
incremental advertising does not have a positive incremental
impact, and may even have a negative effect.
Complete text of the study is available on IPR's website
TO STRESS MORE SOFT NEWS
The editor-in-chief of U.S. News & World Report
said the magazine will not get out of the newsweekly field,
but it will scale back foreign news coverage and shift from
hard news toward more lifestyle and pop culture coverage.
Mort Zuckerman, the magazine's owner, told a group of media
buyers in Chicago that the magazine will concentrate on
"news you can use" coverage, such as college rankings
and top hospitals.
He said all of the newsweeklies have been hurt by the soft
magazine market and increasing reluctance by advertisers
to buy all three newsmagazines.
The new Latin American Media Directory, which is published
by the media center at Florida International Univ., is now
available only online.
The updated directory, which sells for $99 per country or
$5,000 for all 19 countries plus Puerto Rico-includes all
Spanish and Portuguese-language daily newspapers-more than
1,300-plus all radio and TV networks and major independent
There is also a description of the media scene in each country.
Income from the sale of the directory helps fund the training
of Latin American journalists.
More information is available from John Virtue at 305/919-5672.
The just published Senior Media Directory
2001 lists approximately the same number of newspapers,
radio and TV programs aimed at the senior market as the
2000 directory-1,255-but the number of publications with
websites jumped by 58%, from 450 last year to 711 in 2001.
E-mail addresses jumped to 816, according to Pat Picard,
marketing director of the 218-page directory, which is published
by Creative Ink, Burnsville, Minn.
The directory sells for $110. 952/894-6720.
The Journalism Forum on CompuServe has been merged
with CompuServe's PR Forum to form a new service, MediaPro.
new service is available on CompuServe and on the web at
JForum, which served thousands of journalists worldwide
with job listings and messaging in four languages on a variety
of topics, was founded by former NBC News manager Jim Cameron.
MediaPro will be operated by PR Forum's Mike Bayer.
United Parcel Service has given $125,000 to the National
Newspaper Publisher Assn., comprised of up to 200 weekly
newspapers targeting African-American communities, to help
launch a central website-BlackPressUSA.com.
The site, which will be online by the end of summer, will
feature articles from 50 member papers.
Edition, May 23, 2001, Page 7
PLEDGES (cont'd from 1)
turned away, and failed to make a second, third or fourth
attempt...we should be ashamed of ourselves for not making
further efforts," said Guggenheimer.
Support "Thrills" Stepdaughter
The support shown for Griswold and her late husband, Langdon
Sullivan, "would have thrilled Denny and my father,"
Margot Sullivan Grosvenor, stepdaughter of Griswold, told
thought I was all alone," she said.
She said Griswold was "tricked" into signing a
paper that limited Grosvenor's visits to Griswold, although
other members of her family were allowed to visit on rare
occasions. "We must right this terrible wrong and make
sure it's not done to other people," she said.
Eliot Jordan, real estate broker and friend of Griswold,
said that after she went into Wilton Meadows Garrett rented
the Griswold townhouse at 127 E. 80th st. to Whoopie Goldberg
and her friend, Frank Langella, for a year for $25,000 a
the beautiful furnishings and art were taken out,"
said Jordan, including a chandelier that Griswold was particularly
proud of. The townhouse was sold for $3.6 million in 1998.
What happened to the contents, including many pieces of
art and furniture of historical value, and many boxes of
PR papers and documents, is not known.
Garrett has remained unreachable by anyone from the PR community
for many months. She also did not return calls from the
New York Times which did a major story on Griswold
speaking were Harold Burson, co-chair of the Denny Griswold
Memorial Committee; Lisa Kovitz, president of Women Executives
in PR, which arranged the service; Deborah Radman, who said
WEPR hopes to raise $25,000 for a Griswold scholarship;
Larry Foster, former head of PR at Johnson & Johnson
and a longtime friend of Griswold, and other friends including
Terry Mayer, Norma Lee, Robert Sorensen, and John Budd.
Have Called Police-Ombudsman
Thersa Cusano, head of the Ombudsman program for Connecticut,
said that friends should have made complaints to her office.
"You do not need to be a member of the family to make
a complaint," said Cusano. They could also have gone
to the local police, she added She said records show that
there were no further complaints after the initial visits
by the Ombudsman's office. Cusano said she is an "avid"
follower of this story on the O'Dwyer website and feels
that something "did go wrong here." She said it
was "an unfortunate case."
PR SEMINAR MEETS 50TH TIME
PR Seminar, the private gathering of 160 blue chip corporate
PR executives and a dozen heads of big PR firms, is meeting
for the 50th time June 6-9 at the Inn at Spanish Bay, Pebble
With the conference fee set at $1,800 per member and rooms
starting at $400 a day, spending on the off-the-record meeting
will probably top $750,000.
"You have entered a very elite circle, you are the
cream of the crop of the PR world," William H. Shepard,
then VP-PR of Aluminum Co. of America, told new members
of PR Seminar in 1979. All living ex-chairs of PRS have
been invited back to this meeting, which could be the largest
Speakers include Paul Gigot, Potomac Watch columnist of
the Wall Street Journal; Michael Novak, American
Enterprise Institute; Ken Dychtwald, specialist in lifestyles
of the aging, and Faye Wattleton, Center for Gender Equality.
Sweeney Blasted Nike
Some of the speakers, including AFL-CIO president John Sweeney,
have released their remarks to the press. He blasted the
"Nike Economy" at the 1998 PRSA in Pebble Beach,
saying Nike seeks contractors offering the lowest wages
in foreign countries. He called the new working condition
standards proposed by Nike CEO Phil Knight "a cheap
PR stunt" because they are voluntary. Knight had promised
ten days earlier to improve the conditions of those working
on Nike products.
Howard Paster, chairman and CEO of Hill and Knowlton, is
this year's chairman.
There will be special recognition of Walter Barlow of Research
Strategies, Princeton, N.J., the only member to have attended
all 50 of the meetings.
Among companies expected to be represented are Exxon Mobil,
Wal-Mart Stores, General Electric, AT&T, Coca-Cola,
Time-Warner, Eastman Kodak, Aetna, Hewlett Packard, World
Bank, Chevron, Dow Corning, McDonald's, Sears Roebuck, Prudential
Insurance and American Airlines.
Some 30-35 new Seminarians are needed each year now to replenish
the ranks vs. only seven or eight in the 1970s. High turnover
in CEOs is the cause.
Citigroup Not Attending
One of those not attending is John M. Morris, retired senior
PA director of Citigroup, who now works part-time as a consultant
to the company.
Morris said he attended PRS for four or five years but did
not go last year. His successor at Citigroup, Leah Johnson,
VP and director of external affairs, is not going either.
Morris said Johnson does not believe in groups such as PRS.
"Our department is focused more on getting out a defined
corporate message or philosophy about Citigroup than connecting
with other PR executives," said Morris.
Caroline Persell, Ph.D., chair of the Dept. of Sociology,
New York University, who analyzed the group for the O'Dwyer
Co. in 1990, said that "By meeting at elegant resort
hotels, holding black tie dinner parties and having numerous
other social events, Seminar participants mimic the social
lives of the corporate elite whom they serve. In the temporarily
self-contained world of the secret Seminar, the PR executives
have a higher status than they do in their occupational
Edition, May 23, 2001, Page 8
171 PR firms that have submitted proofs of their fee income
and employee totals (page one) are in stark contrast to
the 13 that haven't. The vast majority of PR operations
want dollar figures that are backed by solid documentation
such as income tax returns, W-3s showing total payroll,
CPA statements, account lists, etc., and that are collected
by legitimate media. The boxcar figures being touted by
the growth obsessed ad agency PR units are increasingly
unbelievable..a group of PR leaders (page one) has pledged
to battle the conditions in which the late Denny Griswold
was held during the last five years of her life. The
case is complicated by a possible legal battle over the
distribution of Griswold's estate. Apportioning blame is
a problem. One thing is certain: there is no good reason
why Susan Garrett, the niece of Griswold, did not tell Griswold's
friends that she had broken her hip in 1995 and reveal where
Griswold was being treated. That is the normal human impulse
when someone you love has been injured. You want their friends
to shower them with love and attention...nursing homes
need plenty of reform, as a recent series in the New
York News pointed out. Seniors who are wheelchair-bound
or who have trouble moving about should be equipped with
their own cell phones. Their personal calls should not be
routed through some administrative desk where they can be
censored. At prices up to $100K a year and more (which is
what Griswold was paying), they should also have their own
mailboxes, just like ordinary citizens. No one should have
the chance to hold up or edit their mail. Seniors often
need hearing aids which can be purchased for as little as
$50 from Haverhills, a frequent advertiser in the major
magazines (haverhills.com)...Agency.com (ACOM), in which
Omnicom has a 36% interest (18.5 million shares), has
made another staff cut, this time dismissing 350 staffers,
leaving 1,080. Its first quarter loss grew to $10.3M from
$4.2M in the year earlier quarter. Founders Chan Suh and
Kyle Shannon are selling their shares, once theoretically
worth close to $1 billion, to Seneca Investments, a company
formed by Omnicom and Pegasus Partners II, giving Seneca
a 65.7% stake. Pegasus, based in Greenwich, is known for
buying "distressed properties," said the May 21
Advertising Age. OMC's dot-com investments (Razorfish,
Organic, ACOM and others) were once worth $2 billion+ but
declined to well under $100M based on stock prices. They
basically became worthless in the public market after having
fallen to the $1 and $2 range. Ad Age called six sources
for its story on Agency.Com (OMC, Pegasus, etc.) and none
would talk to it, underscoring the lack of PR at these companies.
They can only duck and hide when a story breaks.
The concept of "materiality" is used to cloak
many a corporate deal. The routine claim is that a certain
matter involves too few dollars or is otherwise too unimportant
for anyone to know about. Interpublic takes this tack with
practically all of the 210 firms it acquired from 1998-2000.
But suppose IPG was buying printing, photo businesses, and
messenger services? Such deals could be small from a dollar
standpoint but material to observers since it would show
that IPG had run out of ad/PR firms to buy. New York
Times accounting columnist Floyd Norris claimed May
18 that even a small transaction can be "material."
Sunbeam claimed an improper $8M in profits in 1997 and Arthur
Andersen allowed the false claim because the amount was
so small it was deemed to be not "material." Pricewaterhouse-Coopers,
called in for an opinion, agreed with this line of reasoning,
reported Norris. But he argues that "It is material
information for investors if a company is trying to report
fraudulent profits, regardless of the amount." This
principle would seem to be "obvious to anyone but an
auditor," says Norris...the Securities Industry
Assn., Washington, D.C., made up of 700+ leading stockbrokers,
is mounting a campaign to roll back the SEC's Reg Fair Disclosure
rule. SIA has unveiled a study that says the public is not
getting the information it was supposed to get; costs of
implementation are soaring, and FD has increased the ups
and downs of the stock market. Other industry groups are
joining in the anti-FD battle. The New York Post,
writing about SIA's study, says "the real reason"
for Wall Street's opposition to FD is that it's taking a
"huge chunk out of Wall St.'s main franchise: information"...the
Post, which lately is taking a more noticeable stance on
the side of the "little guy" vs. institutions,
reported that two supermarket chains (Gristede's and Associated)
cancelled "millions of dollars in advertising"
in the Daily News because it ran a series on failed
health inspections of stores (331 of 610 stores owned by
various companies flunked their state tests). Some of the
info was dated but one Gristede's store failed inspections
last June and September but passed two later inspections.
The series made the advertisers "furious," said
the Post. This is the normal reaction of executives when
an employee or supplier crosses them. It can be counter-productive
when what's at stake is public opinion...another Wall
Street abuse, with the "take" amounting to hundreds
of millions, was described by columnist Gretchen Morgenson
in the May 13 New York Times. Brokerage firms demand
payment in advance for sending customer orders to a specific
trading firm. "In any other business it's call bribery
and is illegal," she wrote. Payments made to attract
option orders totaled "$350 million, if not more,"
in a recent eight months period, she said.