US Senate panel to look at future of newspapers
Senator John F. Kerry will hold hearings in Washington next week on the financial problems facing the newspaper industry, as dwindling advertising dollars push many US papers to the brink of closure.
The hearings by the Senate Commerce Committee, beginning April 30, are the latest effort in the nation's capital to help out newspapers. Senator Benjamin L. Cardin, Democrat of Maryland, introduced a bill last month that would enable newspaper companies to restructure as nonprofits.
Kerry, the Massachusetts Democrat and chairman of a Commerce subcommittee, moved to spotlight the financial plight of newspapers after The New York Times Co. threatened earlier this month to shut down The Boston Globe unless its labor unions agree to $20 million in cost concessions, including pay and benefit cuts. The Globe is on track to lose $85 million this year, executives told labor representatives.
"America's newspapers are struggling to survive and while there will be serious consequences in terms of the lives and financial security of the employees involved, including hundreds at the Globe, there will also be serious consequences for our democracy where diversity of opinion and strong debate are paramount," Kerry wrote in a letter sent to union leaders Friday. The union released the letter yesterday.
In his letter, addressed to "the Boston Globe family," Kerry voiced his commitment to the industry and to ensuring that the "vital public service newspapers provide does not disappear."
"The increase in media conglomerates has resulted in an increase in agenda-driven reporting and over time, if those of us who value a diversity of opinion and ideas, and are unafraid to be confronted with pointed commentary and analysis, do not act, it is a situation which will only get worse," Kerry wrote. The senator has received political endorsements over the years from the Globe's editorial page, which is operated separately from its news-gathering operation.
Newspapers have been hit hard by the loss of readers and advertisers to the Internet, while the national economic slowdown has intensified the advertising slump. In recent months, the Rocky Mountain News has closed, the Seattle Post Intelligencer has significantly reduced staffing and moved entirely onto the Web, and several major newspaper companies have filed for bankruptcy protection.
Daniel B. Totten, president of the Boston Newspaper Guild, said yesterday that he appreciated Kerry's effort and concern. "Clearly, his effort is to get the Globe in a better place," Totten said. Later in a statement, he added: "The support and outreach received thus far from our readers, advertisers, media colleagues, Boston and New England business and political leaders has been enormous."
Kerry was not available for comment yesterday. A spokeswoman, Brigid O'Rourke, said in an e-mail the senator is not backing one side over the other in negotiations. She would not say whether Kerry sent the letter to managers, too.
"His only goal is to help find a fair solution that keeps the Globe up and running," O'Rourke wrote.
Robert Powers, a Globe spokesman, said that as of Friday, management had not received the letter from Kerry. "We greatly appreciate Senator Kerry's expression of support for all of us who work at the Globe and for our newspaper's mission," he added in a statement.
Negotiations on the concessions resume tomorrow. Globe union members have scheduled a "Save the Globe" rally Friday at noon at Faneuil Hall.
James Vaznis can be reached at jvaznis@globe.com. 