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Authors: Kenneth Whyte
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Irwin Stump, her mining adviser, had been in New York all summer anxiously trying to sell the Anaconda shares while Phoebe and Will traveled separately in Europe. With Will’s status up in the air, Stump wasn’t entirely sure which Hearst he answered to and both of them took their time about replying to his letters and wires, never mind that he was executing a multi-million dollar transaction on their behalf. The truth was that mother and son were not communicating with one another either, at least not beyond a couple of sharp exchanges in which Will begged for news of his financial future and Phoebe told him to cool his heels. Sometime in August, she finally cabled Stump a clarification on Will’s position: “Cannot arrange for partnership now. Attorney informs me would conflict with those existing. I wish William to be credited with ten thousand per month beginning July last. Will pay it soon as some sales of stock. Meantime he can draw part if needed. Also, will turn over one million for paper New York soon as possible.”
102
102
Will headed back to New York in late August, arriving on Sunday, September 1, and checking into the Hoffman House. On Labor Day, he visited Stump at his offices, otherwise vacated for the holiday. They reviewed Stump’s ongoing efforts to unload Phoebe’s Anaconda stake in a volatile copper market, and it appears to have been Stump’s unhappy lot to inform Will that he would not be taken into partnership by his mother. Will balked at the suggestion of an income of $10,000 a month, not because of the amount but because he believed he ought to be consulted in the management of the estate. Stump cleverly played on Will’s impatience, advising him that a reconsideration of his mother’s decision would be complicated and time-consuming. He asked Will to be satisfied that his longing for a New York paper could now be realized. Phoebe, he said, would also contribute to the acquisition and improvement of a building that could be made the “nucleus” of a newspaper empire. Still more tantalizingly, Stump mentioned that success in one enterprise might lead Phoebe to assist in the launching of further newspaper endeavors. Overcome by this invocation of his ultimate dream—“a paper there, and there, and there”—Will immediately dropped the partnership request. The two men finished their meeting, walked uptown to view a piece of property that Will thought might serve as a nucleus, and parted in good humor.
103
103
On September 18, 1895, Stump was able to write Phoebe that a syndicate involving the Rothschilds had purchased 300,000 shares in the Anaconda mine, pending an inspection of the property. Her take from the transaction would be $7,290,000. Phoebe was relieved to clear her debts—“I shall not know how to behave,” she exulted to a friend. Her investment adviser, Hosmer B. Parsons, deposited the sum on her behalf, setting aside a million for her son.
104
104
Will was not a partner in the family business, and he was only receiving a small portion of the proceeds of the Anaconda sale, but he had the go-ahead for his New York project and he was already absorbed in discussions with potential newspaper vendors. Stump met almost daily with Will through September and kept Phoebe apprised of his activities. In a couple of weeks he wrote her again: “I went down to the Hoffman this morning & met William—who is in splendid health. In fact I never saw him look better or more cheerful.”
105
105
CHAPTER TWO
Is God In?
T
he
New York Morning Journal
was founded in 1882 by the portly Albert Pulitzer, younger and less celebrated brother of the legendary Joseph Pulitzer. Albert made no pretence of being an intellectual leader or a political force. Inordinately fond of ice cream and the actress Lillie Langtry, he produced a bright, gossipy paper that sold for a penny to people who worked in factories and department stores. It was to Albert’s
Morning Journal
that New Yorkers turned for a heartrending spread on the funeral of a popular “daughter of joy,” Fourteenth Street Kitty. It was the
Morning Journal
that serialized the pilfered diaries of a European soprano who, disguised as a man, had embarked on a racy career in New York society. Reports of the paper’s circulation are inconsistent, but it appears to have sold between 175,000 and 225,000 copies at its peak, which would have made it one of New York’s best-read papers.
1
he
New York Morning Journal
was founded in 1882 by the portly Albert Pulitzer, younger and less celebrated brother of the legendary Joseph Pulitzer. Albert made no pretence of being an intellectual leader or a political force. Inordinately fond of ice cream and the actress Lillie Langtry, he produced a bright, gossipy paper that sold for a penny to people who worked in factories and department stores. It was to Albert’s
Morning Journal
that New Yorkers turned for a heartrending spread on the funeral of a popular “daughter of joy,” Fourteenth Street Kitty. It was the
Morning Journal
that serialized the pilfered diaries of a European soprano who, disguised as a man, had embarked on a racy career in New York society. Reports of the paper’s circulation are inconsistent, but it appears to have sold between 175,000 and 225,000 copies at its peak, which would have made it one of New York’s best-read papers.
1
By the early 1890s, the
Morning Journal
was earning Albert a fat income of $100,000 a year. Another man might have been delighted at that, but Albert could not help but notice that his one-cent daily was neither as rich nor as authoritative as the two-cent marvel his more talented sibling, Joseph, had meanwhile built down the street. Joseph Pulitzer had entered the New York market in 1883 and, within months, his
World
was the sensation of Park Row. Albert held his peace for a decade, rarely speaking to his brother—they had been rivals since youth. Then, in the winter of 1894-95, Albert unaccountably snapped. He increased his price per copy to two cents, competing head to head with Joseph’s mighty
World
, and at least half of the
Journal
’s audience evaporated overnight. Having derailed his own gravy train, Albert Pulitzer thought he was finished until the noted publisher John R. McLean rode in from Washington and offered a handsome sum of $400,000 for his struggling title. A deal was quickly signed and Albert fled to Europe where he suffered through an unhappy retirement of insomnia and mental instability before shooting himself to death in front of his mirror in 1909.
2
Morning Journal
was earning Albert a fat income of $100,000 a year. Another man might have been delighted at that, but Albert could not help but notice that his one-cent daily was neither as rich nor as authoritative as the two-cent marvel his more talented sibling, Joseph, had meanwhile built down the street. Joseph Pulitzer had entered the New York market in 1883 and, within months, his
World
was the sensation of Park Row. Albert held his peace for a decade, rarely speaking to his brother—they had been rivals since youth. Then, in the winter of 1894-95, Albert unaccountably snapped. He increased his price per copy to two cents, competing head to head with Joseph’s mighty
World
, and at least half of the
Journal
’s audience evaporated overnight. Having derailed his own gravy train, Albert Pulitzer thought he was finished until the noted publisher John R. McLean rode in from Washington and offered a handsome sum of $400,000 for his struggling title. A deal was quickly signed and Albert fled to Europe where he suffered through an unhappy retirement of insomnia and mental instability before shooting himself to death in front of his mirror in 1909.
2
When it was announced in May 1895 that McLean had purchased the
Morning Journal,
the
Washington Post
declared there was “not the least room for doubt” of his success in the undertaking. He was one of the capital’s foremost businessmen: president of the Washington Gas Light Company, a major stockholder in banks, railroads, and hotels, and an experienced newspaper operator from a leading newspaper family. The
Post
’s faith in McLean was broadly shared by the New York publishing community.
3
Morning Journal,
the
Washington Post
declared there was “not the least room for doubt” of his success in the undertaking. He was one of the capital’s foremost businessmen: president of the Washington Gas Light Company, a major stockholder in banks, railroads, and hotels, and an experienced newspaper operator from a leading newspaper family. The
Post
’s faith in McLean was broadly shared by the New York publishing community.
3
McLean, in fact, had much in common with the lesser-known William Randolph Hearst, who would pick up his pieces inside of six months. Like Hearst, McLean was born to immense wealth and was not the least ashamed of it. His family owned the Cincinnati
Enquirer
in addition to what was then the largest printing business in the world. Like Hearst, McLean had traveled extensively in Europe and had left Harvard under a cloud. Like Hearst, he had taken over the family paper in his early twenties. With the help of an outstanding editor, John Cockerill (who would also serve Joseph Pulitzer), McLean had more than quadrupled the
Enquirer
’s circulation. Again like Hearst, his paper was noted for its enterprise and its allegiance to the Democratic Party. On paper, McLean was a formidable newspaperman, yet he was a bust in New York.
Enquirer
in addition to what was then the largest printing business in the world. Like Hearst, McLean had traveled extensively in Europe and had left Harvard under a cloud. Like Hearst, he had taken over the family paper in his early twenties. With the help of an outstanding editor, John Cockerill (who would also serve Joseph Pulitzer), McLean had more than quadrupled the
Enquirer
’s circulation. Again like Hearst, his paper was noted for its enterprise and its allegiance to the Democratic Party. On paper, McLean was a formidable newspaperman, yet he was a bust in New York.
John McLean tried to elevate the tone of the
Morning Journal,
dumping some of its gossip and entertainment news and loading up on Democratic politics. When circulation plummeted, he tried to restore it by delivering the same content but cutting his price to a penny.
4
This “much for little” strategy was hailed in the trades as a brilliant move. In its September 5 edition,
The Fourth Estate
, a weekly which billed itself as “A Newspaper for the Makers of Newspapers,” applauded McLean for his willingness to spend money and the fact that he employed “some of the best men in the metropolitan field.” It predicted that he would “work a revolution in the journalism of Manhattan.”
5
But the
Morning Journal
’s circulation didn’t budge in response to McLean’s price cut. He was suddenly selling the same number of papers for half the revenue and his big investment was bleeding cash. By the time the September 5 edition of
The Fourth Estate
actually hit the streets McLean had privately decided to throw in the towel.
Morning Journal,
dumping some of its gossip and entertainment news and loading up on Democratic politics. When circulation plummeted, he tried to restore it by delivering the same content but cutting his price to a penny.
4
This “much for little” strategy was hailed in the trades as a brilliant move. In its September 5 edition,
The Fourth Estate
, a weekly which billed itself as “A Newspaper for the Makers of Newspapers,” applauded McLean for his willingness to spend money and the fact that he employed “some of the best men in the metropolitan field.” It predicted that he would “work a revolution in the journalism of Manhattan.”
5
But the
Morning Journal
’s circulation didn’t budge in response to McLean’s price cut. He was suddenly selling the same number of papers for half the revenue and his big investment was bleeding cash. By the time the September 5 edition of
The Fourth Estate
actually hit the streets McLean had privately decided to throw in the towel.
During McLean’s summer of misery, Hearst, in anticipation of Phoebe’s largesse, had assigned Charles Palmer to scout for newspaper properties in New York. Palmer was spoiled for choice. According to
Printer’s Ink,
a trade journal for newspaper advertisers, there were then forty-eight daily newspapers in New York, a city of 1.5 million with a total circulation area almost double that size. Ten morning and seven afternoon English-language newspapers claimed circulations of at least 12,500.
6
Thanks to the depression of 1893, at least a half dozen of these larger papers appear to have been available. The hot gossip in town was that the young Californian was trying to buy Pulitzer’s
World,
a rumor Hearst went out of his way to deny. Palmer turned up four interesting possibilities, one of which was the
Recorder,
founded as a morning paper by tobacco tycoon James Duke in 1891 and “a great favorite with the women.” Selling in excess of 75,000 copies a day, its asking price was reportedly $4 00,000.
7
The
Times,
not as virile as it had been under founder Henry J. Raymond but still a respectable conservative paper, was selling roughly 50,000 a day. It was priced at $300,000. The same amount would buy the
Advertiser,
a penny sheet for “busy men” that sold just 20,000 copies a day. Hearst asked Palmer to look into both the
Recorder
and McLean’s
Morning Journal,
but the latter was his clear favorite.
Printer’s Ink,
a trade journal for newspaper advertisers, there were then forty-eight daily newspapers in New York, a city of 1.5 million with a total circulation area almost double that size. Ten morning and seven afternoon English-language newspapers claimed circulations of at least 12,500.
6
Thanks to the depression of 1893, at least a half dozen of these larger papers appear to have been available. The hot gossip in town was that the young Californian was trying to buy Pulitzer’s
World,
a rumor Hearst went out of his way to deny. Palmer turned up four interesting possibilities, one of which was the
Recorder,
founded as a morning paper by tobacco tycoon James Duke in 1891 and “a great favorite with the women.” Selling in excess of 75,000 copies a day, its asking price was reportedly $4 00,000.
7
The
Times,
not as virile as it had been under founder Henry J. Raymond but still a respectable conservative paper, was selling roughly 50,000 a day. It was priced at $300,000. The same amount would buy the
Advertiser,
a penny sheet for “busy men” that sold just 20,000 copies a day. Hearst asked Palmer to look into both the
Recorder
and McLean’s
Morning Journal,
but the latter was his clear favorite.
Palmer met McLean at his residence, the August Belmont house on Fifth Avenue. McLean’s opening gambit was to offer Hearst a partnership, asking $300,000 for a half-share in his paper. Palmer took that back to Hearst, who considered it a good start. He was not keen on a partnership, however, even with “as good a man as McLean.”
8
Will and Palmer kept up the negotiation and undertook a thorough investigation of the
Morning Journal
’s plant and books. They called in Sam Chamberlain from San Francisco for his opinion on the proposed purchase. By the end of September, McLean had been beaten down to about $200,000 and Will was visiting Stump almost daily for updates on the Anaconda deal. Will and Palmer estimated that it would cost an additional $25,000 a month for twelve to eighteen months to bring the
Journal
up to their standards.
8
Will and Palmer kept up the negotiation and undertook a thorough investigation of the
Morning Journal
’s plant and books. They called in Sam Chamberlain from San Francisco for his opinion on the proposed purchase. By the end of September, McLean had been beaten down to about $200,000 and Will was visiting Stump almost daily for updates on the Anaconda deal. Will and Palmer estimated that it would cost an additional $25,000 a month for twelve to eighteen months to bring the
Journal
up to their standards.
McLean folded rather quickly. The prospect of selling his paper at a six-figure loss only months after taking its helm hit him hard, but he was in no position to bargain. Readers and advertisers were continuing to bolt and he was writing weekly checks to cover his operating losses. He had as yet paid Albert Pulitzer only an eighth of the purchase price. On top of everything else, he was suffering from gout, his swollen foot wrapped in flannel compresses. On the morning of October 3, 1895, Will and Palmer strolled into Stump’s offices to report that McLean had accepted their final offer of $150,000 for full ownership of the
Morning Journal.
Hearst had also taken as part of the bargain the
Morning Journal
’s German-language sister, the
New York Morgen Journal,
which enjoyed one of the larger circulations among the many foreign-language dailies then publishing in New York.
9
Morning Journal.
Hearst had also taken as part of the bargain the
Morning Journal
’s German-language sister, the
New York Morgen Journal,
which enjoyed one of the larger circulations among the many foreign-language dailies then publishing in New York.
9
The question of whether or not Hearst struck a good deal with McLean has never much troubled his chroniclers. Hearst is typically cast as a reckless young playboy determined to satisfy his rampaging impulses without regard to cost or consequence. The stereotype is not entirely baseless. Hearst dressed the part, dropped out of school, and lived openly with his mistress. Most people would say he spent extravagantly, including his mother, whose complaints about his bills and irresponsible behavior have greatly influenced his biographers. All that, combined with the pervasive assumption that inherited wealth corrodes character, has tended to preempt discussion of Hearst’s care and good sense in his business dealings.
Hearst’s deal with McLean is also difficult to rate for the lack of a good yardstick. Reliable data on the assets, profitability, and market value of long-dead dailies is hard to come by, but there are some rough benchmarks for newspaper sales in the last decades of the century (a period of slight economic deflation). A large, profitable New York paper—the
Herald
or the
World—
was thought to be worth three to five million but, as these earned as much as a million a year, they were not for sale. The smaller but prestigious
New York Tribune
was valued at $1 million in the early 1870s.
10
The similarly revered New York
Evening Post,
selling only 25,000 copies a day and making a mere $50,000 annually, brought $900,000 after William Cullen Bryant died in 1868.
11
The
Times
hit a peak valuation of $1.5 million in 1876, when its circulation was between 40,000 and 75,000.
12
At the other end of the scale, and more relevant to Hearst’s deal, were the declining or damaged franchises. The pre-Pulitzer New York
World,
losing $40,000 a year and selling only 11,000 copies, went for $346,000 in 1883.
13
The
New York Mercury,
with less than 20,000 in circulation, sold for $300,000 in 1894. Against these transactions, Hearst’s $150,000 purchase of the money-losing
Morning Journal,
with its 70,000 in daily circulation, shows reasonably well.
Herald
or the
World—
was thought to be worth three to five million but, as these earned as much as a million a year, they were not for sale. The smaller but prestigious
New York Tribune
was valued at $1 million in the early 1870s.
10
The similarly revered New York
Evening Post,
selling only 25,000 copies a day and making a mere $50,000 annually, brought $900,000 after William Cullen Bryant died in 1868.
11
The
Times
hit a peak valuation of $1.5 million in 1876, when its circulation was between 40,000 and 75,000.
12
At the other end of the scale, and more relevant to Hearst’s deal, were the declining or damaged franchises. The pre-Pulitzer New York
World,
losing $40,000 a year and selling only 11,000 copies, went for $346,000 in 1883.
13
The
New York Mercury,
with less than 20,000 in circulation, sold for $300,000 in 1894. Against these transactions, Hearst’s $150,000 purchase of the money-losing
Morning Journal,
with its 70,000 in daily circulation, shows reasonably well.
BOOK: The Uncrowned King: The Sensational Rise of William Randolph Hearst
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