Attorney General Monitoring Tribune
In January, the Columbia Journalism Review urged Tribune to get out of the newspaper business because its newspapers "aren't doing much public good." Now the Illinois Attorney General is monitoring the McCormick-Tribune Foundation because of worries that Tribune executives may be compromising the foundation's obligation to the public good.
In both cases, major watchdog institutions cast doubt upon Tribune's fidelity to its public obligations, and in both cases the Chicago Tribune has withheld these facts from the public by ignoring the story. What does that tell you about the newspaper's devotion to the public good?
The latest revelations appeared in the March 5 issue of Crain's Chicago Business. We won't repeat all the details here, since they are so cogently presented there, but here's a quick summary:
The McCormick-Tribune Foundation invests its assets almost entirely in Tribune stock, making it Tribune's second largest shareholder, which lets Tribune executives wave it around as a major chip in battles with the Chandler family and other parties. But because the foundation is invested almost entirely in Tribune stock, it is overexposed to the fortunes of that stock. The foundation lost about half of its value, about $1 billion, from 2003-2005, according to Crain's. During the same period, the S&P 500 Index rose about 13 percent. According to Crain's:
Notice the pattern: the foundation takes the shape of a charity but violates the best practices of charities to promote the financial agenda of the Tribune Company. The Chicago Tribune takes the appearance of a newspaper but violates the best practices of American newspapers to promote the financial agenda of the Tribune Company.
This is what we mean when we say Cubune: Whether it adopts the shape of a newspaper, a television station, a radio station, a magazine, a charity, a baseball team, Tribune acts in its own self interest — public good, public trust, and ethics be damned.
The Attorney General's Office is confirming what we wrote in January.
In both cases, major watchdog institutions cast doubt upon Tribune's fidelity to its public obligations, and in both cases the Chicago Tribune has withheld these facts from the public by ignoring the story. What does that tell you about the newspaper's devotion to the public good?
The latest revelations appeared in the March 5 issue of Crain's Chicago Business. We won't repeat all the details here, since they are so cogently presented there, but here's a quick summary:
The McCormick-Tribune Foundation invests its assets almost entirely in Tribune stock, making it Tribune's second largest shareholder, which lets Tribune executives wave it around as a major chip in battles with the Chandler family and other parties. But because the foundation is invested almost entirely in Tribune stock, it is overexposed to the fortunes of that stock. The foundation lost about half of its value, about $1 billion, from 2003-2005, according to Crain's. During the same period, the S&P 500 Index rose about 13 percent. According to Crain's:
Foundations with more diversified investments have fared much better. For example, the Chicago-based John D. and Catherine T. MacArthur Foundation's assets climbed by nearly $1 billion during the two-year period ended in 2005 when McCormick's were declining by nearly $1 billion. The MacArthur Foundation posted an 18% investment return last year, boosting its assets to more than $6 billion.As the McCormick-Tribune's fortunes have dwindled, so have its charitable contributions. So as Tribune stock declines, Chicago suffers, too. And that's just fine, apparently, with Tribune.
Notice the pattern: the foundation takes the shape of a charity but violates the best practices of charities to promote the financial agenda of the Tribune Company. The Chicago Tribune takes the appearance of a newspaper but violates the best practices of American newspapers to promote the financial agenda of the Tribune Company.
This is what we mean when we say Cubune: Whether it adopts the shape of a newspaper, a television station, a radio station, a magazine, a charity, a baseball team, Tribune acts in its own self interest — public good, public trust, and ethics be damned.
The Attorney General's Office is confirming what we wrote in January.
Labels: Chicago Tribune, McCormick Tribune Foundation, Tribune Company
posted by Chicago Cubune Watch permalink
