NEWSPAPER LOSSES

Greymouth Evening Star, 21 March 1931, Page 11

NEWSPAPER LOSSES

COLLAPSE IN SYDNEY.

The troubles of some of Sydney’s leading newspapers are recorded in the current issue of “Newspaper News.” Associa'el Newspapers, Ltd., a £3,800,000 merger of three evening, two morning, four Sunday arid four weekly newspapers of Sydney and Newcastle,. has c eased or suspended publication of two morning, two Sunday and one special weekly arid decided to suspend one evening journal. It has re-established in place of the suspended morning newspapers a news broadsheet called the i'Daily Telegraph.” “Newspaper News,” in describing the negotiations and meetings that preceded the collapse, says: — Rumours of months past, concerning the Associated News, came to a head on February 10 when 400 shareholders at an extraordinary general meeting’ heard some of their number launch a rather bitter attack on the board of directors. The meeting decided to close the “Daily Pictorial,” the “Daily Guardian,” merge the “Sunday< Pictorial” in the “Sunday Guardian,” arid produce a new “Telegraph.” Mr Wilfrid Johnson, alleged a market decline in Associated shares of £3,000,000, of about 75 per cent. Demands were made for the appointment of a committee of shareholders.

At an adjourned meeting on February 17 Sir Hugh Denison, on behalf of his co-directors, dramatically threatened to resign because of the previous attacks, but a unanimous vote of confidence stayed their hand. A shareholders’’ ballot approved by 38,918 votes to 5570 of the closure of the “Evening News.” The special significance of this is that it would leave the afternoon news field in Sydney a sole monopoly of the “Sun.” According to official statements last month the “Guardian” was losing in the vicinity of £6OO a week, the “Pictorial News” about £7OO a week, and the “Evening News” about £7OO a week. The profits of ‘‘Sun” Newspapers and affiliated weeklies were estimated to about meet these losses, but yet to be inadequate to pay dividerids.

A special meeting of the Australian Journalists’ Association, members of the staffs of the “Evening News” and the “Sun,” held on Marph 2 was informed by Mr Campbell-Jones that if (hey agreed to a 15 per cent wage “cut” he would do his utmost to save the “Evening News,” notwithstanding the shareholders’ approval of its suspension. The meeting agreed to accept the 15 per cent, cut in view of the definite promise that it would no longer operate should the board decide that the “News” should not be carried on.