Edition, October 23, 2002, Page 1
D&E HIRED FOR CLERGY ABUSE
Dix & Eaton has been
hired by the Cleveland Catholic Diocese to deal with the
fallout stemming from allegations of sexual abuse by clergy.
Fifteen priests charged
with abuse have been put on administrative leave by Bishop
Since April, Cuyahoga
County Prosecutor William Mason has been investigating allegations
of abuse brought against 800 people (100 of them priests)
that were on diocesan records.
He will soon present his
findings to a grand jury. Mason believes there will be some
indictments, though not many because many of the cases have
been knocked out by the statute of limitations, according
to a report in the Akron Beacon Journal.
Bob Tayek, the Diocese's
director of media and PR, hired D&E because the Diocese
faces a "complicated issue," and wanted an outsider's
Kevin Donahue, managing
director at D&E, handles the Church's account.
MS&L FOLDS GLOBAL TECH
Manning, Selvage &
Lee has dismantled its globaltechnology structure in a bid
to refocus its energies in that troubled category, according
to CEO Lou Ca-pozzi. Virginia Cartwright, who had headed
MS&L's global tech practice, has left the firm.
High-tech PR will now
be serviced "through a regional structure" managed
by local tech leaders in each MS&L office, said Capozzi.
Microsoft, IDG World Expo, Mercury Interactive and Digex
are current clients.
The firm's New York tech
practice has been integrated into the healthcare group to
capitalize on the potential offered through the merging
of the biotech and information technology markets. Scott
Friedman is the New York tech leader.
MS&L has pruned 30
staffers from its workforce due to fourth-quarter client
budget cuts and continued economic uncertainty worldwide.
That amounts to 3.5% of the Publicis Groupe unit's employment
Shandwick has named Charlie Perkins executive VP
and head of its corporate reputation practice in New York.
Perkins was chair of Edelman PR Worldwide's reputation unit.
From 1995-2000, Perkins
was SVP-corporate communications at Prudential Securities,
where he dealt with settlements with the Justice Dept. and
SEC over the sale of Prudential's limited partnerships.
EDELMAN HANDLES HUGE FOOD
Edelman PR Worldwide is
helping Wampler Foods handle a flurry of press inquiries
following a federal investigation which said products from
the poultry packing giant likely caused a fatal outbreak
of listeria in the Northeast.
Michael Schiferl and Ann
Koepel in Edelman's Chicago office are among those handling
the work. Koepel confirmed to this NL that Edelman is "providing
counsel" to Wampler.
Wampler, a unit of Pilgrim's
Pride Corp., voluntarily recalled 27 million pounds of its
poultry products after the company found traces of listeria
bacteria in floor drains at a plant in Philadelphia.
The Centers for Disease
Control, in a joint probe with the Dept. of Agriculture
and local authorities, said that epidemiologic data indicate
that precooked turkey deli meat-the focus of Wampler's recall-is
the cause of the outbreak, which has infected 46 people,
killing seven, since July.
The agencies said one food product and 25 environmental
samples taken at a Pilgrim's Pride plant in Pennsylvania
tested positive for listeria.
Wampler issued a statement
following the CDC report stressing that "no illness
associated with the listeria strain in the Northeastern
U.S. outbreak have been linked to any Wampler products."
The company said listeria often occurs naturally in the
Wampler has recalled all
of its cooked products packed and shipped since May - the
largest recall in the Dept. of Agriculture's history.
HONEYWELL'S CRANE JOINS SKANSKA
Tom Crane, who was director-corporate
media relations at Honeywell International, has been named
senior VP-corporate communications at Skanska USA Building,
the construction services unit of Sweden's $15.9 billion
A key priority for Crane,
who reports to CEO Michael Healy, is to unite Skanska's
various operating units under a single brand name.
Crane joined Honeywell,
which was then Allied-Signal, in 1995. He served as company
spokesperson during the aborted General Electric takeover
bid that paved the way for the return of retired CEO Larry
Bossidy to the helm. Prior to A-S, Crane worked at Ruder
Skanska employs 5,300
people in the U.S. and has revenues in the $5 billion range.
Edition, October 23, 2002, Page 2
CITIGROUP HIRES BG&R FOR
Citigroup has hired the
well-connected Barbour Griffiths & Rogers, an Interpublic
unit, for help on corporate governance issues.
Former Republican National
Committee chairman Haley Barbour and Ed Rogers, who served
in the first Bush White House, and was a top aide to Bush-Quayle
campaign manager the late Lee Atwater, spearhead the Citigroup
team. They are assisted by BG&R's director of legislative
affairs Jennifer Larkin, senior counsel & VP of federal
affairs Dan Murphy and VP Loren Monroe, who was business
development coordinator at Cassidy & Assocs.
Citigroup's Salomon Smith
Barney brokerage house faces various probes concerning potential
analysts' conflict of interest and how it allocated shares
in initial public offerings. On Oct. 14, Citigroup denied
charges in a lawsuit filed by New York State Comptroller
Carl McCall-who is also running for Governor-that its Travelers
insurance unit made improper loans to Bernie Ebbers, the
former CEO of WorldCom.
Citigroup CEO Sandy Weill
alluded to the various investigations during an Oct. 15
conference call with analysts to report a 23 percent rise
in third-quarter profit. "I can't believe the company
we're about to talk about is the same as the one you've
been reading about in the newspapers," said Weill.
Citigroup's biggest shareholder
Saudi Prince Walid bin Talal also gave a thumb's up to his
investment. Following the release of the financials, he
said "all those doubters should shut up. The stock
has been hammered like the company is going out of business,"
said the Prince, who had 15-minutes of fame after former
NYC Mayor Rudy Giuliani refused his $10 million donation
for the families impacted by Sept. 11.
Citigroup trades in the
$35 range, off its $52.50 12-month high.
KLORES AIDS 'SOPRANOS' STAR
Dan Klores is managing the tabloid uproar over charges
from actor James Gandolfini's estranged wife that the "Sopranos"
star has battled drug and alcohol abuse.
Klores, following a New York Daily News story which
broke on Oct. 16, called Gandolfini's alleged improprieties
a problem of the past and blasted the actor's wife for trying
to gain leverage and a better divorce settlement.
Gandolfini filed for divorce in March and hoped to keep
his "struggle" private to protect his son, according
to the Daily News, which last week featured a front
page photo of the actor headlined: "The Doper Don."
The National Enquirer, has published a laundry list
of charges from Gandolfini's wife, citing friends who have
tried to woo the actor off drugs and detailing binges of
alcohol and drug abuse. Klores would not comment on the
Enquirer piece to the Daily News.
ACLU TAKES ON ASHCROFT
The American Civil Liberties Union announced Oct. 16 plans
for its first-ever $3.5 million ad campaign designed to
protect America's civil liberties during President Bush's
war on terror. It also is organizing a grassroots campaign
to mobilize its more than 300,000 members to "lobby
in defense of liberty."
Anthony Romero, executive director of the ACLU, said the
launch of the "Keep America Safe And Free Campaign"
is timed to coincide with the one-year anniversary of the
"USA Patriot Act," which he claims was rushed
through Congress in the aftermath of Sept. 11. That Act,
according to Romero, severely tightens U.S. immigration
law, expands the Government's right to spy on U.S. citizens,
and "increases the capacity for unreasonable searches
ACLU's 30-second spot includes a voiceover saying, "Look
what John Ashcroft is doing to our Constitution" and
shows a pair of hands editing and cutting out a portion
of the Constitution and the Bill of Rights. It continues:
"He seized powers for the Bush Administration no president
should ever have. The right to investigate you for what
you say, to intrude on your privacy, to hold you in jail
without charging you with a crime."
The ads broke on cable in New York, San Francisco, Los
Angeles, Boston, Chicago, Philadelphia, Seattle and Washington
D.C., and will be shown on the Sunday morning talk shows
on ABC, CBS and NBC in selected cities.
F-H'S KLEIN JOINS LEUKEMIA
Fleishman-Hillard's Nancy Klein has joined The Leukemia
& Lymphoma Society as senior VP of marketing and communications.
She will work on positioning, message development, crisis
PR, and help craft an ad campaign for the Society. Klein
reports to Richard Geswell, who is executive VP of marketing
and revenue development at the White Plains, N.Y.-based
At F-H, Klein served as senior VP-corporate and business
communications. Previously, she was director of government
relations at the New York Power Authority, legislative aide
to former NYC Mayor Ed Koch, and community relations specialist
at the NYC Dept. of Housing Preservation and Development.
Founded in 1949, the Society has provided more than $280
million in research into finding cures for blood-related
Heyman Assocs. placed Klein. Lisa Ryan, HA's senior VP/managing
director, conducted the search.
IPR HONORS DAN EDELMAN
Dan Edelman will receive the Institute for PR's "Alexander
Hamilton Award" at the group's annual lecture in New
York on Nov. 7. The Edelman PR Worldwide founder is cited
for his "years of exceptional leadership in PR."
Dave Drobis, Ketchum chairman, will deliver the keynote
speech at the Union League Club event.
Edition, October 23, 2002, Page 3
TWO TIME INC.
is discontinuing publication of Mutual Funds magazine
after the November issue, and Sports Illustrated for
Women magazine after the December issue.
A total of
78 staffers are affected by the closings.
Mutual Funds was acquired in 1998 by Time Inc. from The
Institute for Econometric Research, a financial publishing
company in Deerfield, Fla. Its current circulation rate
base is 825,000.
a bimonthly magazine, was started in March 2000. Its current
rate base is 400,000.
D.C. TECH MAGAZINE SHUTS DOWN
Washington Techway, a biweekly local technology
magazine, will be closed after the October issue.
The magazine, which was started in Jan. 2000, was unprofitable,
according to Chuck Lyons, CEO of Post Newsweek Tech Media,
a unit of The Washington Post Co.
The magazine was distributed free to 25,000 qualified subscribers.
LAYOFFS EXPECTED AT DOW JONES
A union representing employees of Dow Jones & Co. has
notified its members that it believes the publisher will
lay off workers in the near future.
"Dow Jones has confirmed to the Independent Assn.
of Publishers' Employees that layoffs are coming,"
said a memo from Tom Lauricella, a news staffer at The
Wall Street Journal, who represents members of the IAPE
at the paper's New York bureau.
Lauricella said "we have not been notified of any
specific layoff targets, although it looks like they will
Brigitte Trafford, a spokeswoman for DJ, said the company
has not confirmed anything about layoffs to the union, which
represents about 2,000 editorial, sales, technology and
support staffers at DJ and Factiva, a joint venture the
company operates with Reuters Group.
AMI RECOVERS FROM ANTHRAX
Weekly tabloid publisher American Media Inc. has recovered
from the anthrax attack last October at its headquarters
in Boca Raton, Fla.
The attack, which killed one AMI employee, nearly caused
a corporate disaster after news reports scared readers into
believing they might pick up the deadly bacterial disease
by handling the papers.
Newsstand sales of AMI's six main weeklies- The National
Enquirer, Star, Globe, National Examiner,
Weekly World Newsand Sun, which have an average paid
circulation of 4.1 million copies per week -plummeted as
scores of stores and newsstands in many parts of the country
David Pecker, AMI's CEO, launched a PR campaign to counteract
fears that AMI's tabloids could infect readers by explaining
that the papers were transmitted electronically to printing
plants all over the U.S.
A year later, AMI, which is owned by Evencore Partners,
an investment firm, has reported a net profit of $8 million
for the quarter ending June 24, 2002, following a loss of
more than $21 million for the previous fiscal year.
The company said a decline in unit sales over the last
year-about 10%-was due mostly to competiton from other entertainment
AMI's former headquarters is still deemed unsafe for occupancy
by local and national health authorities. The company is
operating out of leased space at the T-Rex Technology Center
in Boca Raton.
a magazine for men, was launched nationally on Oct.
Carmin Bellucci, who is editor-in-chief, said each issue
will have features on cars, crime, sports and adventure.
The magazine also will have reviews of the newest gear and
gadgets plus information about current books, movies and
A department, called "Off Ramp," will feature
news and products from "beneath the radar."
The magazine will be bimonthly for the first two issues
and will go monthly beginning March 2003.
Ramp's editorial offices are located at 801 2nd ave., New
which suspended publication in June, will attempt
a comeback under a new owner and a female editor.
Safari Press, a hunting books publisher, will relaunch
SA with a January issue. The magazine will be published
10 times yearly, with a circulation rate base of 200,000.
Diana Rupp, who was most recently editor of Primedia's
Wildfowl and Gun Dog magazines, has been named
editor of SA. She said the magazine's editorial focus will
be on "the person who is out there in the field."
Rupp is bringing in some new writers to handle coverage
of bowhunting and warm-water fishing.
a TV talk show, will start broadcasting from Taipei and
Shanghai on Nov. 11.
Hosted by Jay Stone Shih, the Mandarin-language program
will cater to Chinese-American audiences from coast-to-coast.
Shih, who will discuss a variety of issues, including politics,
entertainment, education, business and lifestyle, will interview
guests in the studio or in Asia.
Viewers in the U.S. will be able to talk directly to Shih's
guests during the broadcasts.
Shih is also producer of the show. Julia Huang or Lisa
Skriloff, with Multicultural Marketing Resources, are handling
inquiries at 212/242-3351.
news continued on next page)
Edition, October 23, 2002, Page 4
SHOULD NEWS EMBARGOES STAY
Journalists are questioning the practice of embargoing
Recent articles about the practice have appeared in The
Wall Street Journal, American Journalism Review
and The Washington (D.C.) Times.
The Journal said in a July 25 article: "The
wide number of people with preferential access to information
raises the possibility of trading for personal gain whenever
there's a major study with clear implications for a company's
An article in AJR's September issue said "a lot of
science and medical journalists-working in a field in which
embargoes are common-appreciate having official release
data for news, for the same reasons that officials use them:
They level the playing field between news organizations
of varying sizes and improve stories because reporters have
more time to digest and flesh out complex topics.
"Newspapers sign embargo agreements with medical and
scientific journals all the time," said Kathryn Wenner,
who asks in her report:
"What would happen if a reporter published a story
before the embargo was up-or even before the embargo was
put in place? And what if that information involved news
that could affect people's health? Or, what if Wall Street
analysts used embargoed medical information to advise selected
Wenner said these scenarios happened recently and raise
questions about whether the system should be more flexible,
or be done away with.
Washington Times reporter Jennifer Harper said in
her Sept. 30 article that "embargoes can vex journalists,
who may resent restrictions or question the validity of
withholding information from the public."
She quoted several journalists who oppose embargoes, including
a visitor to Poynter Institute's online site, who said "embargoes
exist only because we participate and allow PR people to
call the shots."
CEO APOLOGIZES FOR COMMENTS
Marjorie Scardino, CEO of Pearson, owner of The Financial
Times, has expressed regret for her negative comments
about business journalists in an interview with the Journal
of the Royal Society of Arts.
Scardino had lambasted the business press for not working
hard enough to ferret out some of the business scandals
that have emerged in the last year as they were happening
in the 1990s.
"I do think the business press-and I include the FT
in this-has not worked hard enough to ferret out these stories,"
she said in the interview, which was reprinted in the London
In an e-mail to FT reporters, Scardino said she was "really
sad" they may have had reason to doubt her support.
"For the record, the discussion was not critical of
the staff of the Financial Times, for whom I have
the highest regard," she said.
previously a correspondent for ABC News since 1993, is joining
National Public Radio on Dec. 9 as co-host of "All
Things Considered," a daily afternoon newsmagazine
program that airs on 573 stations nationwide.
She joins long-time host Robert
Siegel and the newly appointed Melissa
Block. Norris and Block are replacing Linda
Wertheimer and Noah
Adams, who left the program.
45, previously managing editor of Janesince its launch in
1997, has joined Vibe, a youth-oriented music and
culture magazine, as managing editor. She succeeds Laura
was recently transferred to The Wall Street Journal's
New York staff to do science reporting after nearly
a dozen years in Japan.
was recently named a business contributor to "The Early
Show" and anchor of the "CBS Morning News."
NEW 'EARLY SHOW' TO DEBUT
Harry Smith, Hannah Storm, Julie Chen and Rene Syler will
become the new anchors of "The Early Show," which
will make its debut on Oct. 28 on the CBS TV Network.
The four anchors will report the top stories of the day,
and do interviews and features in a more flexible and spontaneous
"First and foremost, the new Early Show is a news
program," said Andrew Heyward, president, CBS News,
"so we'll continue to provide viewers with the stories
and issues of the day, as well as local weather and news."
Michael Bass is senior executive producer of the program,
which airs from 7-9 a.m. (ET).
TV GROUP INCREASES LOCAL COVERAGE
Sinclair Broadcast Group is increasing local news programming
at many of its TV stations. Currently, 29 of the group's
62 TV stations in 39 markets air local news.
Sinclair will launch its first newscast using its newscentral
and local news network model at WSMH-TV in Flint, Mich.
Joe DeFeo, previously news director of Sinclair Broadcasting
Group's Baltimore TV stations, was promoted to corporate
news director. He will develop ways to add more news in
G+J USA has
decided to shut down Rosie after toying with the
idea of renaming it and turning it into another women's
lifestyle magazine. The closing will affect about 120 staffers,
although a core group, including editor-in-chief Susan Toepfer,
will stay on to work on new projects.
Edition, October 23, 2002, Page 7
IPG SLASHES FORECAST,
WARNS OF CUTS
has slashed its 2002 profit forecast due to a "serious
deterioration" in its business, and warns of more job
which in August said it would restate $68.5 million in earnings
from 1997, now will restate $120 million in pretax expenses
that were improperly recorded.
In a statement,
CEO John Dooner said it's "regrettable" that IPG
had to revise its earnings forecast, but did so because
of the "difficult economic conditions we are facing
throughout the world."
its earnings per-share forecast to $.85-$.90 from $1.25-$1.35.
It will report a seven percent decline in revenues when
it releases its third-quarter financials on Nov. 13. Full-year
revenues will slip by nine percent.
said "many of our brands are demonstrating competitive
vitality," project-based services, such as corporate
identity, retail (point-of-sale) operations and PR are in
and financial PR, in particular, have suffered major declines.
Dooner, in his statement, warned of more job cutbacks. "Given
that staffing levels at these project-based businesses anticipated
a higher degree of activity, cost reduction initiatives
are being implemented and additional severance expense will
be recognized through operating income in the final two
quarters of 2002," he said.
and South America also are hurting. Those regions combine
for seven percent of its revenues.
to reassess "the composition and structure" of
its Octagon race tracks in the U.K and Hong Kong that were
acquired in 1999 and 2000.
IPG had said Octagon would have a $.04 a-share negative
impact on earnings this year. That has been upped to $0.15-$.20.
Octagon earned $.03 a share in 2001.
Morgan Chase and Standard & Poor's cut their IPG ratings
following the company's earnings "preannouncement."
Orr 'Safe for Now'
CFO Sean Orr, despite the shocker preannouncement, are "safe
for now," said the Oct. 18 Wall Street Journal.
It reported that some investors have urged IPG to reach
out to former CEO Phil Geier and CFO Gene Beard because
the company had better financial controls when they were
been no formal overtures to Geier/ Beard however because
"there is a schism within Interpublic and on Wall Street
as to who is to blame for the current problems." For
example, David Katz, of Matrix Asset Advisors, said he is
willing to give Dooner/Orr the benefit of the doubt. He
saw "no smoking gun" in IPG's announcement. Scott
Black, of Delphi Management, which has owned IPG stock for
more than 20 years, criticized Dooner/Orr for apparently
losing control of the business. "It's a shame because
this was one of the great, great companies," Black
told the paper.
Capital Chapter, the biggest in the Society with 1,012 members,
will send all ten delegates to the Assembly instructed to
vote for decoupling of Assembly membership from APR. The
board reasoned that chapters should be able to send whomever
they wish to represent them. New York, Los Angeles and Chicago
delegates also will vote for decoupling.
has been in effect since 1973. National board members and
officers would still have to be APR.
of the measure note that about 5,000 members of PRSA do
not belong to any chapter and thus have no practical way
of voicing their opinion on this issue to delegates.
with its 117 chapter presidents via "blast" e-mails
(one e-mail reaching all presidents) but will not extend
this service to members so they can easily reach the 200
or so delegates.
the APR rule or other reasons, 19 chapters were not represented
at last year's Assembly. Seventy Assembly seats were not
filled in 2001 and 29 were not filled in 2000.
A poll by
this NL of PRSA members found that almost all non-APR members
favor decoupling Assembly membership from APR.
non-APRs comprise 80% of PRSA's membership, the decoupling
proposal would easily pass if chapters polled their members
on this question. This NL knows of no chapter that is doing
'At-Large' Student Members
a bitter division has developed amongthe membership over
whether to allow students in the 3,760 colleges that do
not have a PRSA-sanctioned PR sequence to join PRSA directly
instead of through a PR Student Society of America chapter.
7,000 members in chapters in 240 colleges. There are about
4,000 four and two-year colleges with a total enrollment
of about 11 million.
of thousands of students, perhaps more than one million,
are enrolled in PR, journalism and related majors but can't
join PRSSA because they're not in a college with the number
of PR courses that are required by PRSA.
as well as PRSSA are against the proposal to allow "at-large"
proposal was removed from this year's Assembly agenda after
numerous complaints by PRSA members. A protest letter was
signed by 50 leaders of PRSA including 21 past presidents.
slammed the proposal as "misguided" and said it
can have "severe, counterproductive impacts on the
integrity of PRSA's educational mission, our relationships
of trust with chartered schools, our focus on and responsibilities
to PRSSA, its members, dedicated educators and advisors."
A task force
is being set up to study the issue.
members ever join PRSA, the Assembly was told in 2000, partly
because home addresses of students are not kept. Society
records indicated that 7% of PRSSA members join PRSA.
Edition, October 23, 2002, Page 8
four of the five biggest PRSA chapters favor decoupling
Assembly membership from APR, and the national board,
15 sections and many other chapters agree, passage seems
likely and the Assembly should move on to other matters.
PRSA, which is on thin
financial ice, needs to let students who are notin the 230
PRSA-approved colleges join as at-large student members.
There are 3,770 other colleges where undergrads are studying
PR and related subjects. More than 11 million are in college
but the PR Student Society of America, after 34 years, only
has 7,000 members.
PRSA leaders see a vast
untapped market for its PR case histories (Silver Anvil
winners), which make great material for term papers. The
students could use the how-to articles in Tactics,
compete for PRSSA awards, and network with students/profs.
But the PRSA-linked professors,
already annoyed by the decoupling move,feel threatened by
the proposal. They have combined with PRSSA and 21 past
presidents of PRSA to knock the motion from the agenda Nov.
16. They want to put it in the deep freeze for another year.
It must be put back.
PRSA-linked professors want students to go to their colleges
and not others. Despite all the talk about "ethics"
and "professionalism" that emanates from PRSA,
fangs get bared as soon as a hot-button issue arises. The
Marquis of Queensbury rules go out the window. Particularly
galling to the PR profs is that PRSA wants to take in those
studying "journalism, integrated marketing, mass communications
or a related field" as well as PR. PR, which was supposed
to encompass everything, is now but one of many players
in the field, and a fading one at that.
no PRSSA members ever join PRSA. PRSA has subsidized
PRSSA to the tune of $950,373 in the past six years. Now
these ingrates are blocking PRSA from cultivating new revenues.
The APR program, also pushed hard by the profs, itself lost
$2 million+ in the past ten years. It's time for PRSA to
get out from under the APR ideologues and the politically
ferocious professors. Control of h.q. must also be won back
from the dominant staff.
Assembly delegates, instead
of sitting like bumps on a log Nov. 16 while PRSA leaders
batter them with six hours of presentations (including 50
minutes on the "strategic plan"), should seize
control of the meeting at 8:30 a.m. and talk among themselves
like an assembly is supposed to. Roberts Rules allow this.
PRSA leaders in the past have improperly blocked agenda
changes. "A broad outcry of the delegates must be obeyed,"
a parliamentarian said. Assembly members need their own
us hope that the rule of the APRs is over. Since
their takeover of PRSA in 1973, members have watched financial
PR walk out the door to IR; public affairs to legal; employee
PR to human resources; media relations atrophy; speechwriting
disappear, and info tech go completely to the techies when
PR could have played the dominant role. NIRI now wants to
take over integrated IR/PR depts. at companies. Marketing
autocrats invaded PR firms and reduced PR pros to obedient
If Assembly members knew
the true state of PRSA's finances they would pass the at-large
student motion. But, as usual, PRSA is planning to dump
a mass of confusing, outdated financials on the delegates
on the day of the meeting.
mess at Interpublic threatens the jobs of thousands of PR
people. IPG stock has gone from $57 at the beginning
of 2000 to as low as $9+ as revelations of improper accounting
surface. IPG says that financial PR (Financial Relations
Board unit) and high-tech PR (WeberShandwick) have been
especially hard hit. Larry Weber sold his firm to IPG in
late 1996 and saw his stock (then worth $18 a share counting
splits) soar from $15.6M to about $45M (if he kept it).
But it would be well below $15M now and he would have a
hard time selling it. Focus is on IPG's money-losing auto
racetrack operations. The New York Times Oct.19 wondered
what an ad agency was doing in such a business...inept
financial reporters helped fuel the stock market boom,
charges Phillip Longman in the October Washington Monthly.
They were guilty of "conflicts of interest, ethical
lapses and naive enthusiasms" and are now paying for
it via "huge layoffs" at the Wall Street Journal,
and the closing of the Industry Standard and other
high-tech mags. Forbes, which has closed ASAP,
is no longer profitable, is reducing staff and executive
salaries and is "raising cash by auctioning off old
man Forbes's various art collections," he says. Business
Week's ad pages fell from 6,000 in 2000 to 3,786 in
2001. Blame greedy CEOs, "self-dealing security analysts"
and accountants, but also blame the financial press, says
Longman. "Few business journalists spend much time
analyzing balance sheets," he notes. We agree that
financial reporters lack financial expertise. But one reason
is that companies bar them from asking questions at analyst
conferences and provide them almost no help in understanding
their finances. These are often made as inaccessible and
opaque as possible. We asked the National IR Institute (they
of the $5M treasury) to put a financial glossary on its
website for the press and public. After considering this,
NIRI decided against it, saying its mission is to serve
members. The mark of a profession is that it serves the
-- Jack O'Dwyer