Blethen family to note 112th year of stewardship, survival

Two newspapers, each family controlled for more than a century, are marking radically different milestones.

For The Wall Street Journal, crown jewel of Dow Jones & Co., last week was the end of family ownership. The Bancroft family, which has controlled the newspaper since 1902, sold it to Rupert Murdoch's News Corp., a global media giant that includes the Fox TV network, 20th Century Fox films, The New York Post, The Times in London and other newspapers around the world, not to mention MySpace.com, the social networking Internet site. For The Seattle Times, last week was the official end of a multiyear legal battle with The Hearst Corp., which owns the Seattle Post-Intelligencer. The Blethen family, which has controlled the newspaper since 1896, celebrates their 112th year of family ownership this Thursday with one word foremost in mind — survival.

The newspaper industry is in unprecedented turmoil, and the sale of Dow Jones is just the most recent unthinkable event.

Earlier shakeups included the sale of the Tribune Company, including the Chicago Tribune and Los Angeles Times, to a Chicago real-estate entrepreneur; and the breakup of Knight-Ridder, then the nation's second-largest newspaper chain, at the insistence of unhappy investors.

Because Tribune and Knight-Ridder were publicly traded companies, they were recognized as being at risk to the marketplace. Dow Jones was supposed to be different. It was also a public company, but the Bancrofts had controlling interest. They were the kind of owners for whom the Journal won 33 Pulitzer Prizes over the past 60 years, including the awards for Public Service and International Reporting this year.

When Murdoch's offer of $5 billion was first reported in May, The New York Times wrote, "According to someone close to Dow Jones management, all four family representatives on the board are against accepting the bid."

The story quoted this person as saying, "It's a combination of things. They don't like Murdoch, and they have a proud heritage of owning the paper for 100 years and don't want to give it up."

That they did give it up, even though some family members didn't want to, has brought speculation about the future of other newspaper companies in which families have controlling interest and long histories of journalistic excellence. These include, most notably, The New York Times and The Washington Post.

The shorthand version of what is happening is that the business fundamentals underlying newspapers — circulation and advertising market share — have been on a decades-long slide that became a free fall in the age of the Internet.

In addition to the competitive disruption caused by the Internet, what we've seen are:

• The consolidation of media ownership into a handful of media conglomerates.

• Concentration of ownership in publicly traded companies, which must put profits ahead of public service.

• Short-term financial pressures causing a huge disinvestment in journalism.

• A shift away from local ownership and community connection.

These changes have prompted concern, not just about the future of newspapers, but about the future of democracy. The American Press Institute, a training center for the news industry, observed:

"Many people in the newspaper industry see grave danger ahead for newspapers in fulfilling their traditional civic mission as a maintainer of an informed citizenry, facilitator of civic dialogue and watchdog on institutions.

"Under the triple whammy of shrinking newspaper readership, declining profit margins and reductions in staffing, the signs are alarming. With less than half of the public regularly using newspapers, a large question looms: How will society function if the quality, quantity and public impact of meaningful journalism are not sustained?"

With all of this as a backdrop, I asked Seattle Times Publisher Frank Blethen what message he would offer you. He said, "The message for readers is the same as it is for family and employees. This is a fourth- and fifth-generation family stewardship based on serving the community with journalism and community connection. That is what drives the family and what engages the family.

"There is a lot of risk and difficult business challenges, but the commitment to stewardship is going to be perpetuated."

On paper, those words may come across as considerable optimism or even bravado, but what one hears in his voice is simply determination. This is a man focused on survival, and his mantra has become "Transformation, Transition and Journalism / Community Connection."

Transformation means urgently rethinking everything about our business. Resolving the legal dispute with Hearst and rebuilding cooperation with them so that we can focus on the challenges ahead are examples.

Transition is the generational shift ahead, not just for the Blethen family (Frank's cousins Bob and Will both retired in recent months) but also among the professionals here. "We always believed that, as a relatively small newspaper and company, the absolute keys to success have been mission and attracting smart, capable people who shared our values," Frank said.

Journalism and community connection are what sustains the family. The Blethens' idea of stewardship involves a dedication to passing the company along to the next generation in better condition than when they started and doing the kind of journalism that helps the community to be better, as well.

Frank said the two most gratifying aspects of his career to date have been that "my generation never wavered in its commitment to stewardship" and watching the next generation moving into their careers. "This is a group of young people who really believe in mission and community values."

Through 112 years of family ownership, there have been times when leaders of the company have lost their focus, Frank said. It can happen in good times and bad, but he takes heart in the history.

"Everyone gets off course some time, but we've always come back."

Inside The Times appears in the Sunday Seattle Times. If you have a comment on news coverage, write to Michael R. Fancher, P.O. Box 70, Seattle, WA 98111, call 206-464-3310 or send e-mail to mfancher@seattletimes.com. More columns at www.seattletimes.com/columnists