NEWSPAPER LOSSES

Stratford Evening Post, Volume I, Issue 86, 20 March 1931, Page 7

NEWSPAPER LOSSES

COLLAPSE IN SYDNEY COMBINE IN DIFFICULTIES DRASTIC MEASURES TAKEN The troubles of some of Sydney’s leading newspapers arc recorded in the current issue of the Newspaper News, a Sydney publication. Associated Newspapers, Ltd., a £6,800,000 merger of three evening, two morning, four Sunday and four weekly newspapers of Sydney and Newcastle, has ceased or suspended publication of two morning, two Sunday and one special weekly and decided to suspend one evening journal. It has re-established in place of the suspended morning newspapers a now broadsheet called the Daily Telegraph. , , The 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 ou February 10 when -10<) shareholders at. an exi inordinary 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 and produce a new Telegraph. Mr Wilfrid Johnson, an accountant with newspaper experience, alleged a market decline in Associated shares of £6,000,000, or about 70 per cent. Demands were made for the appointmenl of a committee of shareholders.

Al iin adjourned m.'ding cm February 17, ISir Hugh Denison, on behalf of liis co-diroctors, dramatically rhreat cued to resign because of the previous attacks, but. a unanimous vote cf confidence stayed their ’nand. 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 mouth the Guardian was losing in the vicinity of £(>00 a week, the Pictorial News £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 dividends. A special meeting of the Australian Journalists’ Association, members of the staffs of the Evening News and the Sun, hold on March £ was informed by Mr Campboll-Jones that if they agreed to a 10 per cent, wage “cut’’ he would do his utmost to save the Evening News, not withstanding the shareholders’ approval of its suspeu siou. 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.