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Wall Street Journal Centennial Dinner 6/22/89 [OA 6345]
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Wall Street Journal Centennial Dinner 6/22/89 [OA 6345]
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George H.W. Bush Presidential Records
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Speechwriting, White House Office of
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Speech File Backup Files
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Chron File, 1989-1993
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13675-003
Folder Title:
Wall Street Journal Centennial Dinner 6/22/89 [OA 6345]
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26
19
2
2
THE WHITE HOUSE
WASHINGTON
WALL STREET JOURNAL 100TH ANNIVERSARY DINNER
DATE: JUNE 22, 1989
TIME: 8:30 P.M.
LOCATION: WORLD FINANCIAL CENTER
NEW YORK CITY
FROM: DAVID DEMAREST
AA
ASSISTANT TO THE PRESIDENT
FOR COMMUNICATIONS
I. PURPOSE
To deliver an address commemorating the 100th anniversary of
the Wall Street Journal and its role as a trusted source of
business information.
II. BACKGROUND
First published on July 8, 1889 for a few hundred
stockbrokers, the Wall Street Journal has grown to become
the largest circulation daily newspaper in the U.S.
Charles Dow, Edward Jones, and Charles Bergstresser started
the paper during a time when insider trading and false
information were widespread on Wall Street. Their paper
quickly became known as a source of accurate information,
and today the Journal is consistently rated America's most
trusted publication.
For its 100th birthday, Dow Jones & Co. is throwing a gala
celebration for its flagship paper in the Winter Garden in
Manhattan's financial district. Producers from Radio City
Music Hall have designed an event featuring entertainers
Lionel Hampton, Chuck Berry, and Buster Poindexter.
III. PARTICIPANTS
The President
Mrs. Bush
Mr. and Mrs. Warren H. Phillips (Barbara)
Chairman, Dow Jones & Co.
Mr. Peter R. Kann (Karen Elliot House)
Publisher, Wall Street Journal and Executive Vice
President, Dow Jones & Co.
Ms. Karen Elliot House
Vice President, International Group, Dow Jones & Co.
and former Foreign Editor of The Wall Street Journal
Mr. Lionel Hampton
600 Leaders from U.S. businesses and advertising agencies
IV. PRESS PLAN
Open Press
V.
SEQUENCE OF EVENTS
Please see Advance Scenario
PRESIDENTIAL REMARKS: WALL STREET JOURNAL CENTENNIAL
WINTER GARDEN -- NEW YORK
THURSDAY, JUNE 22, 1989, 8:30
THANK YOU, WARREN [[PHILLIPS, CHAIRMAN OF DOW
JONES]], FOR THAT WARM INTRODUCTION. I'M DELIGHTED TO
BE HERE TONIGHT. [[THERE'S NOTHING LIKE CELEBRATING
ANOTHER'S HUNDREDTH BIRTHDAY TO MAKE A MAN FEEL
YOUNG. ]] [[PAUSE]]
- 2 -
[[TALK ABOUT A BIG EVENT. THIS MORNING I SAW
WILLARD SCOTT ON TV -- HOLDING UP A BIRTHDAY SNAPSHOT
OF THE WALL STREET JOURNAL. [[PAUSE]]
SPEAKING OF TELEVISION, BEFORE WE LEFT THE WHITE
HOUSE, I TOLD MY 13-YEAR-OLD GRANDSON I'D BE SPENDING
THE EVENING WITH THE MEDIA ELITE. HE ASKED ME TO GET
AN AUTOGRAPH FROM --- MORTON DOWNEY. ]] [[PAUSE]]
- 3 -
[[SERIOUSLY, THIS IS AN IMPRESSIVE AUDIENCE. BUT
IF ANYTHING CATASTROPHIC HAPPENS TO THE WINTER GARDEN
TONIGHT, THE FORTUNE 500 WILL BE LUCKY TO KEEP THE LIST
IN DOUBLE DIGITS. ]] [[PAUSE]]
100 YEARS AGO -- WHAT WAS IT LIKE? IT WASN'T CARS,
BUT CARRIAGES, THAT CROWDED NEW YORK'S COBBLESTONES ON
JULY 8, 1889. TELEPHONES AND ELECTRIC LIGHTS WERE JUST
CATCHING ON.
- 4 -
IT WAS THE YEAR THE OKLAHOMA TERRITORY OPENED,
JOHNSTOWN FLOODED, AND MARK TWAIN PENNED A CONNECTICUT
YANKEE. ANOTHER YEAR WOULD PASS BEFORE SITTING BULL
WOULD PERISH IN THE SIOUX UPRISINGS.
AND AS THE SUN ROSE OVER MANHATTAN ON THAT HOT JULY
MONDAY, JOHN D. ROCKEFELLER WAS PREPARING TO CELEBRATE
HIS 50TH BIRTHDAY.
- 5 -
UPRIVER, 10,000 BASEBALL FANS FILLED THE NEW POLO
GROUNDS -- WITH ANOTHER 5,000 CROWDING THE NEARBY
BLUFFS -- TO SEE NEW YORK DOWN PITTSBURGH, 7 TO 5.
AND FROM A MODEST OFFICE NOT FAR FROM WHERE WE
STAND, THE WALL STREET JOURNAL WAS DISTRIBUTED TO A FEW
HUNDRED READERS FOR TWO CENTS A COPY. AND THE FIRST
FRONT PAGE CONTAINED ANOTHER HISTORIC FIRST -- YOUR
FIRST TYPO. [[PAUSE]]
- 6 -
IT WAS IN A STORY ABOUT JOHN L. SULLIVAN'S VICTORY
IN THE BARE-KNUCKLE, HEAVYWEIGHT CHAMPIONSHIP -- WON
AFTER 75 GRUELING ROUNDS. [[IT WAS TO BE THE NATION'S
LAST SUCH DRAWN-OUT, BARE-KNUCKLE FIGHT -- UNTIL THEY
INVENTED "LEVERAGED BUY-OUTS" AND "PRESIDENTIAL
PRIMARIES. "]] [[PAUSE]]
- 7 -
FROM THOSE MODEST BEGINNINGS, THE WALL STREET
JOURNAL EMERGED TO BECOME AMERICA'S LEDGER SHEET --
CHRONICLING WAR AND DEPRESSION AND PROSPERITY, AS WE
GREW FROM A FRONTIER SOCIETY TO THE FRONTIERS OF
SPACE -- THE WORLD'S DOMINANT FINANCIAL POWER.
ARTHUR MILLER OBSERVED THAT "A GOOD NEWSPAPER IS A
NATION TALKING TO ITSELF." THE JOURNAL IS LIKE THAT.
- 8 -
IN A CHANGING WORLD THAT OFFERS 64 CHANNELS OF CABLE
TELEVISION, THE SIX GRAY COLUMNS OF THE WALL STREET
JOURNAL ARE AS FAMILIAR AS THE MORNING COFFEE AT
AMERICA'S BREAKFAST TABLES.
[[ITs PAGES TELL THE STORY OF OUR TIMES. ONLY ONCE
IN 100 YEARS DID IT CARRY A BANNER HEADLINE -- THE DAY
AFTER PEARL HARBOR. [[PAUSE]] SEPTEMBER 7, 1941 --
MAKE THAT DECEMBER 7.11
- 9 -
AFTER THE WAR, THE JOURNAL CAME TO TEXAS THE SAME YEAR
I DID -- 1948 -- WHEN IT BEGAN PRINTING IN DALLAS.
YOUR CHAIRMAN, WARREN PHILLIPS, HAD BEEN HIRED AS A
COPY READER THE YEAR BEFORE -- IN TIME TO SEE THE FIRST
OF THE PAPER'S 13 PULITZERS.
NOT THAT EVERY ARTICLE WAS A PULITZER PRIZE WINNER.
IN 1967, A FRONT PAGE STORY ON CHINA PREDICTED THE
COMMUNIST GOVERNMENT WOULDN'T LAST THE YEAR. [[PAUSE]]
- 10 -
A DECADE LATER -- IN 1979 -- THE WALL STREET
JOURNAL BECAME THE LARGEST CIRCULATION DAILY IN THE
NATION. [[BUT ONE RIVAL COMPLAINED THAT IT WAS ONLY
BECAUSE so MANY SUBSCRIBERS WERE AT AN AGE WHERE THEY
FORGET TO CANCEL. ]] [[PAUSE]]
- 11 -
[[SPEAKING OF AGE AND APROPOS OF NOTHING, AT THE
JOE GIBBS CHARITY DINNER BoB HOPE TOLD OF TWO VERY OLD
MEN SITTING ON A PARK BENCH.
FIRST: "Do YOU KNOW HOW OLD I AM?"
SECOND: "STAND UP. TURN AROUND. DROP YOUR
TROUSERS. DROP YOUR SHORTS. Now PAT YOURSELF ON THE
POSTERIOR. OK, PULL UP YOUR SHORTS -- YOUR TROUSERS --
SIT BACK DOWN ON THE BENCH.
"Your 93 YEARS OLD AND FOUR MONTHS."
- 12 -
FIRST: "How'd YOU KNOW?"
SECOND: "You TOLD ME YESTERDAY. "]]
[[ANYWAY, ON THE DAY AFTER THE 1980 ELECTION -- THE
LEAD EDITORIAL CELEBRATED "RONALD REAGAN'S MANDATE."
AND PRESIDENT REAGAN TOLD ME MY DAY WOULD COME. AND IT
DID. THE DAY AFTER I WAS ELECTED PRESIDENT, THE
HEADLINE READ -- AND I KID YOU NOT -- "JIM WRIGHT'S
MANDATE. "]]
- 13 -
[[BUT I TOLD AL HUNT HOW MUCH I ENJOY THE JOURNAL.
HE ASKED IF IT'S THE FRONT PAGE, THE CONSERVATIVE
EDITORIALS, OR THE NEWS COVERAGE. I SAID IT'S BECAUSE
YOU DON'T CARRY DOONESBURY. ]] [[PAUSE]]
[[AND YOU HAVE A DISTINCTION NO OTHER PAPER IN
AMERICA CAN CLAIM: No MATTER HOW SLOW THE NEWS, YOU
NEVER RAN A PUPPY PHOTO. 1] [[PAUSE]]
ALL KIDDING ASIDE, THE WALL STREET JOURNAL HAS A
PROUD AND ENVIABLE TRADITION.
- 14 -
ALTHOUGH YOU DEAL IN THE WORLD'S MOST PERISHABLE
PRODUCT -- NEWS -- POLLS HAVE REPEATEDLY SHOWN THAT
YOUR PAPER IS ONE OF AMERICA'S MOST TRUSTED
PUBLICATIONS.
A REPUTATION LIKE THAT CAN ONLY BE EARNED BY
ADHERENCE TO YOUR FOUNDERS' PLEDGE TO ALWAYS HAVE THE
NEWS "HONEST, INTELLIGENT AND UNPREJUDICED."
- 15 -
IN MODERN TIMES, YOUR REPORTERS HAVE CARRIED THIS
PLEDGE BEYOND BUSINESS REPORTING, IN COVERAGE OF EVENTS
LIKE THE CIVIL RIGHTS STRUGGLE -- AND THE RECENT
TRAGEDY IN BEIJING -- CARRYING ON A PROUD AMERICAN
TRADITION OF BRAVING INTIMIDATION TO BRING THE TRUTH
INTO THE LIGHT.
- 16 -
AND MANY AT THE JOURNAL HAVE GONE BEYOND THEIR
PROFESSIONAL OBLIGATIONS -- AND SET EXAMPLES OF ANOTHER
OLD-FASHIONED TRADITION THAT IS VERY MUCH ON MY MIND
TODAY. THE TRADITION OF PUBLIC SERVICE.
THREE YEARS AGO, JOHN FIALKA [[FEE-ALL-KA]] WROTE A
COLUMN-ONE STORY CALLED "SISTERS IN NEED" --
CHRONICLING THE POVERTY THAT HAD BEFALLEN THE GROWING
RANKS OF RETIRED CLERGY IN AMERICA.
- 17 -
IT PROVOKED A SWELL OF READERSHIP RESPONSE. AND so
JOHN AND OTHERS AT THE JOURNAL FOUNDED "SOAR" --
"SUPPORT OUR AGING RELIGIOUS" -- AND RAISED MORE THAN
$1 MILLION TO AID 30 DIFFERENT ORDERS.
A SIMILAR PUBLIC RESPONSE OCCURRED IN 1987 AFTER
THE PUBLICATION OF "URBAN TRAUMA" -- ALEX KOTLOWITZ'S
[[cot-Lo-witz]] MOVING ACCOUNT OF THREE MONTHS IN THE
LIFE OF LAFAYETTE WALTON -- A 12 YEAR-OLD BOY
STRUGGLING TO SURVIVE IN A DANGEROUS CHICAGO PROJECT.
- 18 -
ALEX STAYED IN TOUCH WITH LAFAYETTE. AND LAST
SUMMER THEY PASSED THE HAT AT THE JOURNAL -- AND GAVE
LAFAYETTE AND HIS BROTHER A SEASON OF PEACE IN THE
WOODS OF A WISCONSIN BOYS CAMP.
PERSONAL GESTURES. PROFOUND ACTIONS. SOMETIMES
LIFE-CHANGING IN THEIR EFFECT. THESE ARE THE WORKS OF
MEN AND WOMEN WHO KNOW THAT PROSPERITY WITHOUT PURPOSE
MEANS NOTHING.
- 19 -
EARLIER TODAY, I ANNOUNCED A NEW INITIATIVE --
CALLING ON ALL LEVELS OF GOVERNMENT -- AND BOTH
SECTORS, PUBLIC AND PRIVATE -- TO ENLIST IN A NEW
CRUSADE TO BRING NATIONAL SERVICE INTO EVERY CORNER OF
AMERICA.
THAT CRUSADE BEGINS WITH A SIMPLE TRUTH: FROM NOW
ON, ANY DEFINITION OF A SUCCESSFUL LIFE MUST INCLUDE
SERVING OTHERS.
- 20 -
AND I MAY NEVER HAVE AS IMPORTANT AN AUDIENCE TO
CARRY THIS MESSAGE To, AS YOU WHO ARE GATHERED AT THE
WINTER GARDEN TONIGHT. THE AMERICAN BUSINESS COMMUNITY
HAS SUPPORTED CONSERVATIVE POLICIES. WE ARE ENJOYING
PROSPEROUS YEARS. BUT NOT all AMERICANS ARE PART OF
THAT PROSPERITY, AND I ASK THAT BUSINESS DO ITS PART.
PROSPERITY CANNOT BE TRULY ENJOYED UNLESS THE POINTS OF
LIGHT ABOUT WHICH I'VE SPOKEN SHINE ON EVERY AMERICAN
IN NEED.
- 21 -
MANY OF YOU ARE CEO's, WITH GALAXIES AT YOUR
COMMAND. AND IT IS MY REQUEST -- I SUBMIT, YOUR
OBLIGATION -- TO DONATE THE SERVICES OF THE TALENTED
AND THE ENTERPRISING WITHIN YOUR RANKS. MANY ARE DOING
THIS NOW. EVERYONE SHOULD DO THIS NOW.
SHORTLY AFTER THE WALL STREET JOURNAL WAS FOUNDED,
100 YEARS AGO, THE CENSUS BUREAU DECLARED THAT THE
"FRONTIER" NO LONGER EXISTED IN AMERICA.
- 22 -
BUT THE WALL STREET JOURNAL HAS PROVEN THEM WRONG -- BY
ADVANCING ACROSS EVER NEW FRONTIERS OF TECHNOLOGY,
GEOGRAPHY, AND INNOVATION. AND I SAID IT A WEEK AGO,
LOOKING EASTWARD ACROSS AMERICA FROM THE FOOT OF THE
GRAND TETONS: THE CHALLENGES AHEAD ARE IN THE
FRONTIERS OF THE MIND -- AND IN THE GOOD THAT HARD WORK
AND THE HUMAN IMAGINATION CAN BRING TO PASS.
- 23 -
NOT LONG AFTER BRINGING HOME THE JOURNAL'S FIRST
PULITZER PRIZE, WILLIAM GRIMES EXPRESSED A SIMPLE
CREED. HE WROTE: "WE BELIEVE IN THE INDIVIDUAL, IN
HIS WISDOM AND HIS DECENCY." Now THAT IS A WORTHY
TENET -- ONE WE CAN ALL CARRY FORTH FROM TONIGHT'S
CELEBRATION -- AND ON TO A RENEWED COMMITMENT TO
SERVICE TOMORROW.
- 24 -
To ALL AT THE JOURNAL, I WISH YOU CONGRATULATIONS
ON THIS LANDMARK -- AND SUCCESS AS YOUR "SECOND
CENTURY" BEGINS. AND TO ALL HERE TONIGHT -- GOD BLESS
YOU -- AND GOD BLESS THE UNITED STATES.
#
#
#
THE WHITE HOUSE
WASHINGTON
DATE:
FROM THE PRESIDENT
To:
Jim C
I have knoched out
several personal refereces.
I included a Bob
Hope john
Do not include
Johes in press text.
Good length
" speech for
the occardo
THE WHITE HOUSE
WASHINGTON
1239
June 20, 1989
INFORMATION
MEMORANDUM FOR THE PRESIDENT
THROUGH:
CHRISS WINSTON
cu
FROM:
EDWARD E. MCNALLY grew
SUBJECT:
KEYNOTE ADDRESS FOR THE 100TH ANNIVERSARY
OF THE WALL STREET JOURNAL (BLACK TIE)
I. SUMMARY
At approximately 8:30 p.m. on Thursday, June 22, 1989, you
are scheduled to arrive at the Winter Garden in lower Manhattan
to give the keynote address for The Wall Street Journal's 100th
Anniversary Gala.
II. DISCUSSION
Attached for your consideration and review are draft remarks
for the 15-minute address expected by The Wall Street Journal for
their Gala in New York. Your speech -- the only one of the night
-- will be before dinner, and will be on teleprompter.
The audience -- a black tie group of approximately 600 -- is
expected to include some of the leading members of America's
corporate, advertising, and news media communities. *
In keeping with the guidance received from Marlin Fitzwater,
the press office, Al Hunt and others at the Journal, the remarks
are essentially light, humorous, and personal -- focusing on the
paper's history and including one message -- an echo of the day's
earlier call for corporate involvement in national service.
*
E.g., including: William Agee, Steven Jobs, Bill Moyers,
Joseph Flom, Richard Holbrooke, Woody Allen, Arthur Ochs
Sulzberger, Rupert Murdoch, Roone Arledge, Bryant Gumble, David
Rockefeller, Peter Ueberroth, Norman Lear, Pete Teeley, Malcolm
Forbes, Mort Zuckerman, Ben Bradlee, Kate Graham, Don Hewitt,
Mike Wallace, Bill Buckley, Robert Bork, Carl Icahn, and Armand
Hammer.
THE PRESIDENT HAS SEEN
6/21/89
(McNally/Simon)
June 20, 1989, 7:00 p.m.
Draft Four (WSJ)
PRESIDENTIAL REMARKS: WALL STREET JOURNAL CENTENNIAL
WINTER GARDEN -- NEW YORK CITY
THURSDAY, JUNE 22, 1989, 8:30 P.M.
Thank you, Warren [PHILLIPS, CHAIRMAN OF DOW JONES]] for
that warm introduction. I'm delighted to be here tonight.
There's nothing like celebrating another's hundredth birthday to
make a man feel young.
Talk about a big event. This morning I saw Willard Scott on
TV -- holding up a birthday snapshot of the Wall Street Journal.
Speaking Byear of television, before we left the White House, I
told my grandkids I'd be spending the evening with the media
Л asked me to get an autograph from -
-
-
elite. They want to know which one of you'is Morton Downey.
Seriously, this is an impressive audience. But if anything
catastrophic happens to the Winter Garden tonight, the Fortune
500 will be lucky to keep the list in double digits. [[PAUSE]]
Forgive me if I seem a bit distracted. I just heard that,
during the cocktails, Donald Trump bought Air Force One.
Gee -- I wonder what he's going to name it? [[PAUSE]]
Don is the only quy in America whose car has a dashboard
new
statue of Frank Lorenzd. [ [PAUSE]]
100 years ago- what wasit liho?
lead
Of course, It wasn't cars, but carriages, that crowded New
York's cobblestones on July 8, 1889. Telephones and electric
lights were just catching on. It was the year the Oklahoma
Territory opened, Johnstown flooded, and Mark Twain penned A
2
Connecticut Yankee. Another year would pass before Sitting Bull
would perish in the Sioux uprisings.
And as the sun rose over Manhattan on that hot July Monday,
John D. Rockefeller was preparing to celebrate his 50th birthday.
Upriver, 10,000 baseball fans filled the new Polo Grounds -- with
another 5,000 crowding the nearby bluffs -- to see New York down
Pittsburgh, 7 to 5.
And from a modest office not far from where we stand, the
Wall Street Journal was distributed to a few hundred readers for
two cents a copy. And the first front page contained another
historic first -- your first typo. [[PAUSE]]
It was in a story about John L. Sullivan's victory in the
bare-knuckle, heavyweight championship -- won after 75 grueling
rounds. It was to be the nation's last such drawn-out, bare-
knuckle fight -- until they invented leveraged buy-outs.
OA
'presidential primaries"
From those modest beginnings, the Wall Street Journal
emerged to become America's ledger sheet -- chronicling war and
depression and prosperity, as we grew from a frontier society to
the frontiers of space -- the world's dominant financial power.
Arthur Miller observed that "a good newspaper is a nation
talking to itself." The Journal is like that. In a changing
world that offers 64 channels of cable television, the six gray
columns of the Wall Street Journal are as familiar as the morning
coffee at America's breakfast tables.
3
Its pages tell the story of our times. Only once in 100
years did it carry a banner headline -- the day after Pearl
sept 71941 -
Make that December
14
7
Harbor. [[PAUSE]] I must have missed that one.
After the War, the Journal came to Texas the same year I did
-- 1948 -- when it began printing in Dallas. Your chairman,
Warren Phillips, had been hired as a copy reader the year before
-- in time to see the first of the paper's 13 Pulitzers.
Not that every article was a Pulitzer Prize winner. In
1967, a front page story on China predicted the communist
government wouldn't last the year. [[PAUSE]] And on Pearl
Harbor I was only off by three months.
A decade later -- in 1979 -- the Wall Street Journal became
the largest circulation daily in the nation. But one rival
complained that it was only because so many subscribers were at
an age where they forget to cancel.
insert
That same year, reporter Jim Perry celebrated the paper's
n
"A"
90th birthday by exhuming a family nickname that had béen dead
for 30 years. [[PAUSE]] "Poppy" Bush. [[PAUSE]] Thanks Jim.
A Anyway -- on the day after the 1980 election -- the
lead editorial celebrated "Ronald Reagan's mandate." And
President Reagan told me my day would come! And it did. The day
after I was elected President, the headline read -- and I kid you
not -- "Jim Wright's Mandate."
At least now that I'm President, the Journal doesn't call me
"Poppy." [[PAUSE]] Now they call me "George Herbert Walker Bush."
But I told Al Hunt how much I enjoy the Journal. He asked
4
if it's the front page, the conservative editorials, or the news
coverage. I said it's because you don't carry Doonesbury.
And you have a distinction no other paper in America can
claim: No matter how slow the news, you never ran a puppy photo.
All kidding aside, the Wall Street Journal has a proud and
enviable tradition. Although you deal in the world's most
perishable product -- news -- polls have repeatedly shown that
your paper is one of America's most trusted publications.
A reputation like that can only be earned by adherence to
your founders' pledge to always have the news "honest,
intelligent and unprejudiced." In modern times, your reporters
have carried this pledge beyond business reporting, in coverage
of events like the civil rights struggle -- and the recent
tragedy in Beijing -- carrying on a proud American tradition of
braving intimidation to bring the truth into the light.
And many at the Journal have gone beyond their professional
obligations -- and set examples of another old-fashioned
tradition that is very much on my mind today. The tradition of
public service.
Three years ago, John Fialka wrote a Column-One story called
"Sisters In Need" -- chronicling the poverty that had befallen
the growing ranks of retired clergy in America. It provoked a
swell of readership response. And so John and others at the
Journal founded "SOAR" -- "Support Our Aging Religious" -- and
raised more than $1 million to aid 30 different orders.
5
A similar public response occurred in 1987 after the
publication of "Urban Trauma" -- Alex Kotlowitz's moving account
of three months in the life of Lafayette Walton -- a 12 year-old
boy struggling to survive in a dangerous Chicago project.
Alex stayed in touch with Lafayette. And last summer they
passed the hat at the Journal -- and gave Lafayette and his
brother a season of peace in the woods of a Wisconsin boys camp.
Personal gestures. Profound actions. Sometimes life-
changing in their effect. These are the works of men and women
who know that prosperity without purpose means nothing.
Earlier today, I announced a new initiative -- calling on
all levels of government -- and both sectors, public and private
-- to enlist in a new crusade to bring national service into
every corner of America.
That crusade begins with a simple truth: From now on, the
definition of a successful life must include service to others.
And I may never have as important an audience to carry this
message to, as you who are gathered at the Winter Garden tonight.
The American business community has supported conservative
policies. We are enjoying prosperous years. But not all
Americans are part of that prosperity, and I ask that business do
its part. Prosperity cannot be truly enjoyed unless the points
of light about which I've spoken shine on every American in need.
Many of you are CEO's, with galaxies at your command. And
it is my request -- I submit, your obligation -- to donate the
services of the talented and the enterprising within your ranks.
May are doing this now. Everyone should do this now
6
Shortly after the Wall Street Journal was founded, 100 years
ago, the Census Bureau declared that the "frontier" no longer
existed in America. But the Wall Street Journal has proven them
wrong -- by advancing across ever new frontiers of technology,
geography, and innovation. And I said it a week ago, looking
eastward across America from the foot of the Grand Tetons: The
challenges ahead are in the frontiers of the mind -- and of the
good that hard work and the human imagination can bring to pass.
Not long after bringing home the Journal's first Pulitzer
Prize, William Grimes expressed a simple creed. He wrote: "We
believe in the individual, in his wisdom and his decency." Now
that is a worthy tenet -- one we can all carry forth from
tonight's celebration -- and on to a renewed commitment to
service tomorrow.
To all at the Journal, I wish you congratulations on this
landmark -- and success as your "Second Century" begins. And to
all here tonight -- God bless you -- and God bless the United
States.
#
#
#
INsent speaking of h and
A apropos of nothing RO at the
Joe Gibbs charity duin Bob
Hope told of 2 very old men
sitting on a pack bench.
First Do you know how
old I ann?" 3tand up n Furnoval
second in Drop your
trousers, idrop you shorts " Now
pat yourself on the postrian
OK pull up your shorts - you
THE WHITE HOUSE
WASHINGTON
June 21, 1989
MR. PRESIDENT:
Please note that this speec
is on teleprompter.
Aim
Jim Cicconi
yestuday.
You told we
How'd you know?
4 wonth old
You're 93 year +
bad dom on the buch
trousurs - too sit
THE WHITE HOUSE
WASHINGTON
June 20, 1989
INFORMATION
MEMORANDUM FOR THE PRESIDENT
THROUGH:
CHRISS WINSTON cu
FROM:
EDWARD E. MCNALLY grui
SUBJECT:
KEYNOTE ADDRESS FOR THE 100TH ANNIVERSARY
OF THE WALL STREET JOURNAL (BLACK TIE)
I. SUMMARY
At approximately 8:30 p.m. on Thursday, June 22, 1989, you
are scheduled to arrive at the Winter Garden in lower Manhattan
to give the keynote address for The Wall Street Journal's 100th
Anniversary Gala.
II. DISCUSSION
Attached for your consideration and review are draft remarks
for the 15-minute address expected by The Wall Street Journal for
their Gala in New York. Your speech -- the only one of the night
-- will be before dinner, and will be on teleprompter.
The audience -- a black tie group of approximately 600 -- is
expected to include some of the leading members of America's
corporate, advertising, and news media communities. *
In keeping with the guidance received from Marlin Fitzwater,
the press office, Al Hunt and others at the Journal, the remarks
are essentially light, humorous, and personal -- focusing on the
paper's history and including one message -- an echo of the day's
earlier call for corporate involvement in national service.
*
E.g., including: William Agee, Steven Jobs, Bill Moyers,
Joseph Flom, Richard Holbrooke, Woody Allen, Arthur Ochs
Sulzberger, Rupert Murdoch, Roone Arledge, Bryant Gumble, David
Rockefeller, Peter Ueberroth, Norman Lear, Pete Teeley, Malcolm
Forbes, Mort Zuckerman, Ben Bradlee, Kate Graham, Don Hewitt,
Mike Wallace, Bill Buckley, Robert Bork, Carl Icahn, and Armand
Hammer.
(McNally/Simon)
June 20, 1989, 7:00 p.m.
Draft Four (WSJ)
PRESIDENTIAL REMARKS: WALL STREET JOURNAL CENTENNIAL
WINTER GARDEN -- NEW YORK CITY
THURSDAY, JUNE 22, 1989, 8:30 P.M.
Thank you, Warren [PHILLIPS, CHAIRMAN OF DOW JONES 11, for
that warm introduction. I'm delighted to be here tonight.
There's nothing like celebrating another's Hundredth birthday to
make a man feel young.
Talk about a big event. This morning I saw Willard Scott on
TV -- holding up a birthday snapshot of the Wall Street Journal.
Speaking of television, before we left the White House, I
told my grandkids I'd be spending the evening with the media
elite. They want to know which one of you is Morton Downey.
Seriously, this is an impressive audience. But if anything
catastrophic happens to the Winter Garden tonight, the Fortune
500 will be lucky to keep the list in double digits. [[PAUSE]]
Forgive me if I seem a bit distracted. I just heard that,
during the cocktails, Donald Trump bought Air Force One.
Gee -- I wonder what he's going to name it? [[PAUSE]]
Don is the only guy in America whose car has a dashboard
statue of Frank Lorenzo. [[PAUSE]]
Of course, it wasn't cars, but carriages, that crowded New
York's cobblestones on July 8, 1889. Telephones and electric
lights were just catching on. It was the year the Oklahoma
Territory opened, Johnstown flooded, and Mark Twain penned A
2
Connecticut Yankee. Another year would pass before Sitting Bull
would perish in the Sioux uprisings.
And as the sun rose over Manhattan on that hot July Monday,
John D. Rockefeller was preparing to celebrate his 50th birthday.
Upriver, 10,000 baseball fans filled the new Polo Grounds -- with
another 5,000 crowding the nearby bluffs -- to see New York down
Pittsburgh, 7 to 5.
And from a modest office not far from where we stand, the
Wall Street Journal was distributed to a few hundred readers for
two cents a copy. And the first front page contained another
historic first -- your first typo. [[PAUSE]
It was in a story about John L. Sullivan's victory in the
bare-knuckle, heavyweight championship -- won after 75 grueling
rounds. It was to be the nation's last such drawn-out, bare-
knuckle fight -- until they invented leveraged buy-outs.
[[OR: "presidential primaries"]
From those modest beginnings, the Wall Street Journal
emerged to become America's ledger sheet -- chronicling war and
depression and prosperity, as we grew from a frontier society to
the frontiers of space -- the world's dominant financial power.
Arthur Miller observed that "a good newspaper is a nation
talking to itself." The Journal is like that. In a changing
world that offers 64 channels of cable television, the six gray
columns of the Wall Street Journal are as familiar as the morning
coffee at America's breakfast tables.
3
Its pages tell the story of our times. Only once in 100
years did it carry a banner headline -- the day after Pearl
Harbor. [[PAUSE]] I must have missed that one.
After the War, the Journal came to Texas the same year I did
-- 1948 -- when it began printing in Dallas. Your chairman,
Warren Phillips, had been hired as a copy reader the year before
-- in time to see the first of the paper's 13 Pulitzers.
Not that every article was a Pulitzer Prize winner. In
1967, a front page story on China predicted the communist
government wouldn't last the year. [[PAUSE] ] And on Pearl
Harbor I was only off by three months.
A decade later -- in 1979 -- the Wall Street Journal became
the largest circulation daily in the nation. But one rival
complained that it was only because SO many subscribers were at
an age where they forget to cancel.
That same year, reporter Jim Perry celebrated the paper's
90th birthday by exhuming a family nickname that had been dead
for 30 years. [PAUSE] "Poppy" Bush. [[PAUSE]] Thanks, Jim.
A year later -- on the day after the 1980 election -- the
lead editorial celebrated "Ronald Reagan's mandate." And
President Reagan told me my day would come. And it did. The day
after I was elected President, the headline read -- and I kid you
not -- "Jim Wright's Mandate."
At least now that I'm President, the Journal doesn't call me
"Poppy." [[PAUSE]] Now they call me "George Herbert Walker Bush."
But I told Al Hunt how much I enjoy the Journal. He asked
4
if it's the front page, the conservative editorials, or the news
coverage. I said it's because you don't carry Doonesbury.
And you have a distinction no other paper in America can
claim: No matter how slow the news, you never ran a puppy photo.
All kidding aside, the Wall Street Journal has a proud and
enviable tradition. Although you deal in the world's most
perishable product -- news -- polls have repeatedly shown that
your paper is one of America's most trusted publications.
A reputation like that can only be earned by adherence to
your founders' pledge to always have the news "honest,
intelligent and unprejudiced." In modern times, your reporters
have carried this pledge beyond business reporting, in coverage
of events like the civil rights struggle -- and the recent
massacre in Beijing -- carrying on a proud American tradition of
braving intimidation to bring the truth into the light.
And many at the Journal have gone beyond their professional
obligations -- and set examples of another dld-fashioned
tradition that is very much on my mind today. The tradition of
public service.
Three vears ago, John Fialka wrote a Column-One story called
"Sisters In Need" -- chronicling the poverty that had befallen
the growing ranks of retired clergy in America. It provoked a
swell of readership response. And so John and others at the
0
Journal founded "SOAR" -- "Support Our Aging Religious" -- and
raised more than $1 million to aid 30 different orders.
5
A similar public response occurred in 1987 after the
publication of "Urban Trauma" -- Alex Kotlowitz's moving account
of three months in the life of Lafayette Walton -- a 12 year-old
boy struggling to survive in a dangerous Chicago project.
Alex stayed in touch with Lafayette. And last summer they
passed the hat at the Journal -- and gave Lafayette and his
brother a season of peace in the woods of a Wisconsin boys camp.
Personal gestures. Profound actions. Sometimes life-
changing in their effect. These are the works of men and women
who know that prosperity without purpose means nothing.
Earlier today, I announced a new initiative -- calling on
all levels of government -- and both sectors, public and private
-- to enlist in a new crusade to bring national service into
every corner of America.
That crusade begins with a simple truth: From now on, the
definition of a successful life must include service to others.
And I may never have as important an audience to carry this
message to, as you who are gathered at the Winter Garden tonight.
The American business community has supported conservative
policies. We are enjoying prosperous years. But not all
Americans are part of that prosperity, and I ask that business do
its part. Prosperity cannot be truly enjoyed unless the points
of light about which I've spoken shine on every American in need.
Many of you are CEO's, with galaxies at your command. And
it is my request -- I submit, your obligation -- to donate the
services of the talented and the enterprising within your ranks.
6
Shortly after the Wall Street Journal was founded, 100 years
ago, the Census Bureau declared that the "frontier" no longer
existed in America. But the Wall Street Journal has proven them
wrong -- by advancing across ever new frontiers of technology,
geography, and innovation. And I said it a week ago, looking
eastward across America from the foot of the Grand Tetons: The
challenges ahead are in the frontiers of the mind -- and of the
good that hard work and the human imagination can bring to pass.
Not long after bringing home the Journal's first Pulitzer
Prize, William Grimes expressed a simple creed. He wrote: "We
believe in the individual, in his wisdom and his decency." Now
that is a worthy tenet -- one we can all carry forth from
tonight's celebration -- and on to a renewed commitment to
service tomorrow.
To all at the Journal, I wish you congratulations on this
landmark -- and success as your "Second Century" begins. And to
all here tonight -- God bless you -- and God bless the United
States.
#
#
#
(McNally/Simon)
June 18, 1989, 1:00 p.m.
Draft Three (WSJ)
PRESIDENTIAL REMARKS: WALL STREET JOURNAL CENTENNIAL
WINTER GARDEN -- NEW YORK CITY
THURSDAY, JUNE 22, 1989, 8:30 P.M.
Thank you,
, for that warm introduction. I'm
delighted to be here tonight. There's nothing like celebrating
another's hundredth birthday to make a man feel young.
Talk about a big event. This morning I saw Willard Scott on
TV -- holding up a birthday snapshot of the Wall Street Journal.
Speaking of television, before we left the White House, I
told my grandkids I'd be spending the evening with the media
elite. They want to know which one of you is Morton Downey.
Seriously, this is an impressive audience. But if anything
catastrophic happens to the Winter Garden tonight, the Fortune
500 will be lucky to keep the list in double digits. [ [[PAUSE] ]
Forgive me if I seem a bit distracted. I just heard that,
during the cocktails, Donald Trump bought Air Force One.
Gee -- I wonder what he's going to name it? [[PAUSE] ]
Don is the only guy in America whose car has a dashboard
statue of Frank Lorenzo. [[PAUSE]]
Of course, it wasn't cars, but carriages, that crowded New
York's cobblestones on July 8, 1889. Telephones and electric
lights were just catching on. It was the year the Oklahoma
Territory opened, Johnstown flooded, and Mark Twain penned A
Connecticut Yankee. Another year would pass before Sitting Bull
would perish in the Sioux uprisings.
2
And as the sun rose over Manhattan on that hot July Monday,
John D. Rockefeller was preparing to celebrate his 50th birthday.
Upriver, 10,000 baseball fans filled the new Polo Grounds -- with
another 5,000 on the nearby bluffs -- to see New York down
Pittsburgh, 7 to 5.
And from a modest office not far from where we stand, the
Wall Street Journal was distributed to a few hundred readers for
two cents a copy. And the first front page contained another
historic first - - your first typo. [[PAUSE] ]
It was in a story about John L. Sullivan's victory in the
bare-knuckle, heavyweight championship -- won after 75 grueling
rounds. It was to be the nation's last such drawn-out, bare-
knuckle fight --- until they invented leveraged buy-outs.
[ [OR: "presidential primaries"]].
From those modest beginnings, the Wall Street Journal
emerged to become America's ledger sheet -- chronicling war and
depression and prosperity, as we grew from a frontier society to
the frontiers of space -- the world's dominant financial power.
Arthur Miller observed that "a good newspaper is a nation
talking to itself." The Journal is like that. In a changing
world that offers 64 channels of cable television, the six gray
columns of the Wall Street Journal are as familiar as the morning
coffee at America's breakfast tables.
Its pages tell the story of our times. Only once in 100
years did it carry a banner headline -- the day after Pearl
Harbor. [ [PAUSE]] I must have missed that one.
3
After the War, the Journal came to Texas the same year I did
-- 1948 -- when it began printing in Dallas. Your chairman,
Warren Phillips, had been hired as a copy reader the year before
-- in time to see the first of the paper's 13 Pulitzers.
Not that every article was Pulitzer Prize material. In
1967, a front page story on China predicted the communist
government wouldn't last the year. [ [PAUSE] And on Pearl
Harbor I was only off by three months.
A decade later -- in 1979 -- the Wall Street Journal became
the largest circulation daily in the nation. But one rival
complained that it was only because so many subscribers were at
an age where they forget to cancel.
That same year, reporter Jim Perry celebrated the paper's
90th birthday by exhuming a high school nickname that had been
dead for 30 years. [[PAUSE]] "Poppy" Bush. Thanks, Jim.
A year later -- on the day after the 1980 election -- the
lead editorial celebrated "Ronald Reagan's mandate." And
President Reagan told me my day would come. And it did. The day
after I was elected President, the headline read -- and I kid you
not -- "Jim Wright's Mandate."
At least now that I'm President, the Journal doesn't call me
"Poppy." Now they call me "George Herbert Walker Bush.' "
But I told Al Hunt how much I enjoy the Journal. He asked
if it's the front page, the conservative editorials, or the news
coverage. I said it's because you don't carry Doonesbury.
4
And you have a distinction no other paper in America can
claim: No matter how slow the news, you never ran a puppy photo.
All kidding aside, the Wall Street Journal has a proud and
enviable tradition. Although you deal in the world's most
perishable product -- news -- polls have repeatedly shown that
your paper is one of America's most trusted publications.
A reputation like that can only be earned by adherence to
your founders' pledge to always have the news "honest,
intelligent and unprejudiced. In modern times, your reporters
have carried this pledge beyond business reporting, in coverage
of events like the civil rights struggle - - and the recent
massacre in Beijing -- carrying on a proud American tradition of
braving intimidation to bring the truth into the light.
And many at the Journal have gone beyond their professional
obligations -- and set examples of another old-fashioned
tradition very much on my mind. The tradition of public service.
Three years ago, John Fialka wrote a Column-One story called
"Sisters In Need" -- chronicling the poverty that had befallen
the growing ranks of retired clergy in America. It provoked a
swell of readership response. And SO John and others at the
Journal founded "SOAR" -- "Support Our Aging Religious" -- and
raised more than $1 million to aid 30 different orders.
A similar public response occurred in 1987 after the
publication of "Urban Trauma" -- Alex Kotlowitz's moving account
of three months in the life of Lafayette Walton -- a 12 year-old
boy struggling to survive in a dangerous Chicago project.
5
Alex stayed in touch with Lafayette. And last summer they
passed the hat at the Journal -- and gave Lafayette and his
brother a season of peace in the woods of a Wisconsin boys camp.
Personal gestures. Profound actions. Sometimes life-
changing in their effect. These are the works of men and women
who know that prosperity without purpose means nothing.
Earlier today, I announced that I will shortly sign an
Executive Order directing all executive branch officials to
devise programs to involve themselves and their employees in
community service. Direct -- not ask.
It begins with a simple truth: From now on, the definition
of a successful life must include service to others.
And I may never have as important an audience to carry this
message to, as you who are gathered at the Winter Garden tonight.
The American business community has supported conservative
policies. You have enjoyed prosperous years, and applauded my
pledge not to raise taxes. But business must do its part.
Prosperity cannot be truly enjoyed unless the points of light
about which I've spoken shine on every American in need.
Many of you are CEO's, with galaxies at your command. And
it is my request -- I submit, your obligation -- to donate the
services of the talented and the enterprising within your ranks.
Shortly after the Wall Street Journal was founded, 100 years
ago, the Census Bureau declared that the "frontier" no longer
existed in America. But the Wall Street Journal has proven them
wrong -- by advancing across ever new frontiers of technology,
6
geography, and innovation. And I said it a week ago, looking
eastward across America from the foot of the Grand Tetons: The
challenges ahead are in the frontiers of the mind -- and of the
good that hard work and the human imagination can bring to pass.
Not long after bringing home the Journal's first Pulitzer
Prize, William Grimes expressed a simple creed. He wrote: "We
believe in the individual, in his wisdom and his decency." Now
that is a worthy tenet -- one we can all carry forth from
tonight's celebration -- and on to a renewed commitment to
service tomorrow.
To all at the Journal, I wish you congratulations on this
landmark -- and success as your "Second Century" begins. And to
all here tonight -- God bless you ------------------------- and God bless the United
States.
#
#
#
(McNally/Simon)
June 17, 1989
9:00 p.m.
Draft Two
(WSJ)
PRESIDENTIAL REMARKS: WALL STREET JOURNAL CENTENNIAL
THE WINTER PALACE
GARDEN
NEW YORK CITY
THURSDAY, JUNE 22, 1989
8:30 P.M.
Thank you,
/ for that warm introduction. I'm
delighted to be here tonight. There's nothing like celebrating
another's hundredth birthday to make a man feel young.
Talk about a big event. This morning I saw Willard Scott on
TV -- holding up a birthday snapshot of the Wall Street Journal.
Speaking of television, before we left the White House, I
told my grandkids I'd be spending the evening with the media
elite. They want to know which one of you is Morton Downey.
Seriously, this is an impressive audience. But if anything
happens to the Winter Garden tonight, the Fortune 500 will be
lucky to keep the list in double digits. [[PAUSE]]
Forgive me if I seem a bit distracted. I just heard that,
during the cocktails, Donald Trump bought Air Force One.
Gee -- I wonder what he's going to name it?
Don is the only guy whose car has a dashboard statue of
Frank Lorenzo.
But -- as Don has shown -- competition today is intense in
no
every field. I hear the Journal's abandoning its photo policy
and coming out with its first swimsuit issue. [[PAUSE]] I just
X
don't know if their public is ready for Lee Iacoca in thongs.
2
Competition was tough a hundred years ago, too. New York
City. July 8, 1889. Telephones and electric lights were just
catching on. It was the year the Oklahoma Territory opened,
alma
Johnstown flooded, and Mark Twain penned A Connecticut Yankee.
1988 almanar
Newspapers wrote of Kodak's new camera and wondered whether Jack
Websters Bio.
the Ripper would kill again. And another year would pass before
Dict. Sitting Bull would perish in the Sioux uprisings.
Webster's
And as the sun rose over Manhattan on that hot July Monday,
weather?
am Bios.
John D. Rockefeller was preparing to celebrate his 50th birthday.
Baseball Hall
007-547-9988
of
Fame Across the river, the new Polo Grounds baseball stadium opened on
team name
day. The home team won.
opposent
score
And from a modest office not far from where we stand, the
WSI:
Wall Street Journal was distributed to a few hundred readers for
The 1st
100
years two cents a copy. And the first front page contained the paper's
first typo. [[PAUSE]]
Sullivan
almanac
It was in a story about John L. Louis's victory in America's
OK
+ AP final, bare-knuckle, heavyweight championship -- won after 75
Book of
Days
grueling rounds. It was to be the nation's last such drawn-out,
bare-knuckle fight -- until they invented leveraged buy-outs.
[[OR: "presidential primaries"]
From those modest beginnings, the Wall Street Journal
emerged to become America's ledger sheet -- chronicling war and
depression and prosperity, as we grew from a frontier society to
the frontiers of space -- the world's dominant industrial and
financial power.
3
Barnes Noble
Book of
Arthur Miller observed that "a good newspaper is a nation
to itself." The Journal is like that. In a changing
world that offers 64 channels of cable television, the six gray
columns of the Wall Street Journal are as familiar as the morning
coffee at America's breakfast tables.
Its pages tell the story of our times. Only once in 100
milestones
years did it carry a banner headline -- the day after Pearl
Harbor. [[PAUSE]] I must have missed that one.
WST
After the War, the Journal came to Texas the same year I did
press
release
- 1948 -- when it began printing in Dallas to supplement the New
York and San Francisco editions. Your chairman, Warren Phillips,
WSJ
had been hired as a copy reader the year before - - in time to see
milestones
the first of 13 Pulitzers earned by your correspondents.
1-30-67
Not that every article was Pulitzer Prize material. There
WSJ were some real doozies. [[PAUSE]] In 1967, as the paper's 80th
birthday approached, a front page story on China predicted the
communist government wouldn't last the year. [[PAUSE]]
And
I
3
was only off by two months on Pearl Harbor.
mitestone
A decade later -- in 1979 -- the Wall Street Journal became
the largest circulation daily in the nation. But one rival
complained that it was only because so many subscribers were at
an age where they forget to cancel.
WST
That same year, 1979, correspondent Jim Perry celebrated the
7-6-79 Journal's 90th birthday by exhuming a high school nickname that
had been dead for 30 years. [[PAUSE]] "Poppy" Bush. [[PAUSE]]
Thanks, Jim.
4
A year later -- on the day after the 1980 election -- the
lead editorial celebrated "Ronald Reagan's mandate." And
President Reagan told me my day would come. And it did. The day
WSS after I was elected President, the headline read -- and I kid you
11-9-88
not "Jim Wright's Mandate."
But I told Al Hunt how much I enjoy the Journal. He asked
whether it was the front page features, the conservative
editorials, or the economic coverage. I said it's because you
don't carry "Doonesbury."
And you have a distinction no other paper in America can
claim: No matter how slow the news, never once did you run a
puppy photo.
Actually, for a while we put old copies of the Journal under
the puppies. Big mistake. Now Millie is the only dog I know who
has her own broker. [[PAUSE]] I guess she confused puppies with
Yuppies.
At least now that I'm President, the Journal has stopped
calling me "Poppy." Now they call me [[SLOWLY]] "George Herbert
Walker Bush.' " [[PAUSE]] Real progress.
And I think Jim Perry tried to make it up to me after the
election. In the recent series on the paper's "Second Century,"
he had one scenario where 1996 found the deficit gone, inflation
WSJ
Elect
at three percent, and Vice President Quayle winning back 45
5-15-89
states and control of the Senate. [[PAUSE]] Now that's good,
solid reporting.
5
All kidding aside, the Wall Street Journal has a proud
tradition and enviable reputation. Although you deal in the
world's most perishable product -- news -- polls have repeatedly
1stears wss 100
shown that the Wall Street Journal is America's most trusted
publication.
P.
A reputation like that can only be earned by adherence to
your founders' pledge to always have the news "honest,
p.12
intelligent and unprejudiced." In modern times your reporters
have carried this pledge beyond business reporting, in coverage
of events like the 1960's civil rights struggle for racial
justice and equality.
6-16-89891
And as recently as this week's headlines, the Journal's Jim
WSJ Sterba and Adi Ignatious -- and their colleagues from many
6-15-89 P.A10
different news organizations in China -- have carried on a proud
American tradition of bringing the truth out into the light.
And many at the Journal have gone beyond their professional
obligations -- to set examples of another old-fashioned tradition
that is very much on my mind today. The tradition of public
service.
uss
Three years ago, John Fialka wrote a column-one story called
5-19-86-15 In Need" -- chronicling the poverty that had befallen
the growing ranks of retired religious workers in America. It
provoked a swell of readership response. And John and others at
the Journal were unable to leave the story behind.
John
And so they founded "SOAR" -- "Support Our Aging Religious"
Fialka
and raised more than $300,000 for needy members of the clergy.
6
A similar public response occurred in 1987 after the
publication of "Urban Trauma" -- Alex Kotlowitz's moving account
of three months in the life of Lafayette Weaver Walton -- a 12 year-old
wss
10-27-87
boy struggling to survive in one of Chicago's most dangerous
housing projects.
Jerry Sit
Alex stayed in touch with Lafayette. And last summer Alex
passed the hat at the Wall Street Journal -- and gave Lafayette
&
Hunt
and his brother a season of peace in the woods of a Wisconsin
al
boys camp.
Personal gestures. Profound actions. Sometimes life-
changing in their effect. These are the works of men and women
who know that prosperity without purpose means nothing.
Earlier today, I announced that I will shortly sign an
Executive Order directing all executive branch officials to
devise programs to involve themselves and their employees in
community service. Direct -- not ask.
It begins with a simple truth: From now on, the definition
of a successful life must include service to others.
And I may never have as important an audience to carry this
message to as the captains of industry, media and advertising
that are gathered at the Winter Garden tonight.
The American business community has supported conservative
policies. You have enjoyed prosperous years, and applauded my
pledge not to raise taxes. But business must do more.
Prosperity cannot be truly enjoyed unless the points of light
about which I've spoken shine on every American in need.
7
they
Many of you are CEO's, with galaxies at your command. And
it is my request -- I submit, your obligation -- to donate the
services of the talented and the enterprising within your ranks.
And to consider volunteerism in hiring, compensation, and
promotion decisions. And to begin a literacy program that
teaches each employee how to read.
Shortly after the Wall Street Journal was founded, 100 years
The WSJ 1st
ago, the Census Bureau declared that the "frontier" no longer
100 yours
existed in America. But the Wall Street Journal has proven them
P.
wrong --- by advancing across ever new frontiers of technology,
geography, and innovation. And I said it a week ago, looking
speech
6-12-89
eastward across America from the foot of the Grand Tetons: The
challenges ahead are in the frontiers of the mind -- and of the
good that hard work and the human imagination can bring to pass.
WSJ
The
Not long after bringing home the Journal's first Pulitzer
first 100
years
Prize, William Grimes expressed a simple creed. He wrote: "We
30
p.
believe in the individual, in his wisdom and his decency." Now
that is a worthy tenet -- one we can all carry forth from
tonight's celebration -- and on to a renewed commitment to
service tomorrow.
To all at the Journal, I wish you congratulations on this
landmark -- and success as your "Second Century" begins. And to
all here tonight -- God bless you -- and God bless the United
States.
#
#
#
NEW YORK, NY June 9, 1989 -- Radio city Music Hall Productions'
special events division will be producing a gala commemorating the
centennial of The Wall Street Journal on June 22, 1989. The
celebration will be held at the World Financial Center's Winter
Garden and feature performances by three top musical acts -- jazz
statesman Lionel Hampton, legendary rocker Chuck Berry, and rhythm
and blues sensation Buster Poindexter.
"As The Journal begins its second century, Radio city is planning
a night to remember," says Wayne Baruch, executive producer and
executive vice president, special events and television. "We're
honored to help The Journal provide a spectacular, surprising,
fun-filled evening. "
Reprinted from THE WALL STREET JOURNAL.
MONDAY, JANUARY 9, 1989
© 1989 Dow Jones &
Company, Inc. All Rights Reserved.
Letter From the Publisher
A Report to The Wall Street Journal's Readers
To the Readers of The Wall Street Journal:
We are proudest not of any quantitative growth measurements
The Wall Street Journal is celebrating in 1989 the 100th anni-
but of the confidence bestowed on the Journal by readers and re-
versary of its first issue. It is embarking on its second century
flected in successive independent surveys over the years-by the
committed to keeping readers well-informed in ways that will help
Louis Harris organization and by Times Mirror Co., for example-
them build better businesses and better lives.
that show the Journal to be the country's most trusted publication.
During this centennial year, the Journal will publish many
We are pleased that in the latest Pulitzer Prize awards, last
special articles and a special centennial edition in June. They not
spring, the Journal was the only newspaper to win two Pulitzers for
only will glance back at changes in American business over the
its reporting.
past century, but will seek to anticipate and illuminate changes
And we are pleased that in 1988, Fortune magazine reported
coming in the years ahead.
that its annual survey of corporate reputations found Dow Jones to
When the first four-page Wall Street Journal came off the
be the second most admired company in America for the quality of
press in 1889, the building of the railroads dominated the business
its products and services. Dow Jones was ranked the third most
news. Iron and steel production in the U.S. still had not surpassed
admired company in the country on an overall basis and the most
that of England, but was growing fast to feed the needs of the
admired in the publishing industry. This was the fifth consecutive
railroad builders. Electric lights and telephones were newly in-
year that Fortune's survey has shown Dow Jones in such leadership
vented and just beginning to spread.
positions.
American society still was largely agrarian, with workers on
We are highly skeptical, however, of the occasional descrip-
farms double those in manufacturing. We were a nation of only 38
tion of the Journal as powerful; we would be disturbed by any
states, and a population about a fourth of today's. The final sup-
inclusion of the Journal in the talk one hears these days about
the growing power of the press. A newspaper should not aspire to
This progress report carries forward a custom begun 12
power. Our aspiration is to put power in the hands of our readers,
years ago. It reflects our belief that publishing a newspaper is
to the extent that knowledge is power. Our aspiration is to help
a public trust for which we are accountable first of all to you,
them become more knowledgeable and thus gain greater power over
our readers.
their lives and careers and business fortunes.
pression of the Plains Indians, in the massacre at Wounded Knee,
Two Pledges to Our Readers
South Dakota, was still a year away.
In the years since, as America grew to become the world's
In the Journal's first issue in 1889, there was a statement
dominant industrial and financial power and opened up new frontiers
of principles that included these words: "We appreciate the confi-
of consumer service and space-age technology, The Wall Street
dence reposed in our work. We mean to make it better."
Journal reported this transformation as it took place. The Journal
Those words are behind whatever the Journal may have ac-
also played a part in the change.
complished over the years. They sum up the goals that will guide
It did this by providing reliable economic news and informa-
the Journal in its second century: To be worthy of reader confidence
tion-that helped link the diverse parts of the country. We would like
by earning and re-earning that trust day by day; and to keep
to think that this contributed to knitting
stretching always to improve the Journal's usefulness, "to make it
better."
together the nation and the world of
THE
business.
The Journal of the '90s and beyond will be governed by two
As markets then grew and inter-
traditions. They can be stated as two pledges to readers. One is to
SECOND
dependence increased, the Journal has
adhere to old values: accuracy, independence, fairness. The other is
sought to supply readers with
to be quick to give readers the benefit of the new: to adapt to
CENTURY
a tool-knowledge-to enable them and
changing reader needs, to be responsive to changes in our economy
their businesses to grow, too. It sought
and society and to adopt new technologies and new ideas that will
to supply the kind of timely, trustwor-
help serve readers better.
100 THE STREET
thy knowledge that could be used to
This blend of the best of the old and the best of the new has
make confident decisions, grasp oppor-
been the standard to which the Journal has aspired in its first
tunities, adjust to change and avoid
century. It will be the Journal's standard for its second century.
costly mistakes.
The latest in a long series of moves to improve service to
This continues to be the Journal's
readers was made this past fall. Journal editors organized the con-
mission as it moves into its second cen-
tents of the paper more efficiently in a new three-section format, for
tury.
greater reader convenience. Coverage was improved in several
As the country and its businesses
areas of increasing relévance to readers; these included competitive
grew, SO did the Journal. It had been
marketing strategies, new technology developments and the strate-
founded by two New England newspapermen, Charles H. Dow and
gies of smaller, growing enterprises.
Edward D. Jones, with a third partner, Charles M. Bergstresser,
A recent Carnegie-Mellon University survey of executives
whose name was considered too long to fit into their company
found that while coping was the manager's top challenge in the
name-Dow Jones & Co. They had started a hand-delivered finan-
1980s, competing will be most important in the next decade. The
cial-news-bulletin service for private Wall Street clients in 1882. The
Journal intends to point up information useful in meeting this chal-
first page of the Journal's first issue in 1889 carried two columns of
lenge, while at the same time continuing to strengthen traditional
financial news, two columns of advertisements-and a brief report
coverage areas ranging from personal finance to foreign affairs. The
on John L. Sullivan's latest boxing bout.
intent is to produce a paper paced to the needs of the '90s and
In the years since, the Journal has grown into a national and
beyond.
international business daily with a circulation larger than that of
Other planned service improvements will range from a larger
any other U.S. newspaper. Its global circulation of more than two
type size soon on stock-price tables to new, more geographically
million is served from 18 publishing sites in the U.S. and five others
focused advertising editions to continued expansion of the Journal's
in Europe and Asia.
home-delivery system. The latter already is serving about 50% of
DOW JONES REPRINT SERVICE
P.O. BOX 300
PRINCETON, NEW JERSEY 08543-0300
DO NOT MARK REPRINTS
REPRODUCTIONS NOT PERMITTED
subscribers, up from only 15% served outside the postal system 10
at private monopoly, labor-union monopoly or from an overgrowing
years ago.
government."
These improvements are just the latest in a century of seeking
In the 1980s, the face of American business changed rapidly as
to anticipate and adapt to readers' evolving needs, as the business
the computer revolution picked up speed, mergers and takeovers
scene and society in general change at an accelerating rate.
accelerated, the financial markets grew in complexity, the global
economy became more interdependent and women and minorities
Capsule History
assumed more responsible roles. The Journal responded by seeking
Here are just a few highlights from the Journal's history of
to cover these and other frontiers with greater clarity and compre-
striving to "make it better":
hensiveness. New indexes and explanatory graphics were introduced
1889 to 1920: Though coverage was focused on stocks, bonds
to save time. Personal finance, technology, marketing, law and in-
and banking, the effort was begun to write simply and clearly.
ternational economics were among the beats covered with greater
Charles Dow used homely analogy and the language of everyday
intensity, even as coverage was being strengthened on traditional
life. Consider this editorial comment about the public in the stock
beats ranging from manufacturing and service industries to govern-
market, as pertinent today as when he wrote it: "Nobody who plants
ment and investment banking. A new Leisure & Arts page was
corn digs up the kernels in a day or two to see if the corn has
added. A new edition was started in Europe.
sprouted, but in stocks most people want to open an account at noon
America appeared to be gradually moving in directions long
and get their profit before night." In 1902, the Journal was sold to
espoused-often as a minority view-by the Journal's editorial
another New England newspaperman, Clarence W. Barron, an elec-
page: less regulation, more entrepreneurship; lower taxes, freer
tric personality whose descendants own majority control of Dow
trade, stronger military defense, more confidence again in Ameri-
Jones today.
ca's ability to lead the free world.
1920 to 1940: Political and international coverage was ex-
Meanwhile, the Journal's sister enterprises, the Dow Jones
panded, from a Washington bureau manned by many of the paper's
News Services, offered computerized retrieval of the paper's con-
future editors and from new bureaus in London, París and Tokyo.
tents and many additional types of information, from stock quotes to
Front-page news summary columns were introduced. A San Fran-
sports scores. Electronic publishing came of age alongside print.
cisco edition was launched.
The Journal of the 21st Century
1940 to 1960: Bernard Kilgore, architect of the modern Wall
Street Journal, converted the paper from a financial daily to one
The Journal's intent, as it starts its second century, is to
covering the broad scope of business-everything related to earning
give readers a business daily as dynamic in the future as it has
a living. Lively, well-written, in-depth news features were intro-
been in its past. The Journal will do this by continuing to anticipate
duced on page one. News itself was redefined: It was not limited to
and serve its readers' needs for timely, trustworthy information-a
what happened yesterday, but included the cumulative forces re-
need now more vital than ever before in the history of American
shaping society and the business scene, in small ways and large.
business.
The Journal's market was redefined, too: A national business
At the time of the Journal's 75th anniversary in 1964, the
community was perceived, in which the business person in Portland,
then publisher, Bernard Kilgore, wrote:
Maine, had the same information needs as the business person in
"A newspaper, aged 75, can be as young as yesterday, pro-
Portland, Ore. New printing plants were opened around the country
vided only that it has learned from its past, cherishes sound tradi-
to serve this national readership in a timely fashion. Circulation,
tions and keeps everlastingly alert to the needs of tomorrow. I be-
only 28,000 in 1940. began to move steadily upward.
lieve The Wall Street Journal of today still meets those strict
1960 to 1980: Coverage was broadened further, recognizing
standards."
that the business reader's interests extended beyond his or her
We believe those words apply as well to The Wall Street
pocketbook and included family health, children's education, the
Journal at age 100 as they did to the Journal at the time they were
emergence of space-age science and the racial and other social
written. We are committed to seeing that they continue to apply to
forces reshaping American society. The paper's core coverage of
the Journal of the next century.
business and finance was strengthened at the same time.
Today's Journal reflects the efforts of more than 3,000 talented
and committed employees in all departments-reporters, editors,
Journal engineers pioneered the use of space satellites to
salespeople, customer service representatives, technical experts,
send page images to remote printing plants, further speeding
printers, pressmen, delivery people, and more. All of them join us in
delivery of information to readers around the country. The first
thanking you, our readers, for your patronage and loyal support.
overseas edition was started in Asia. National and international
They join us also in extending our very best wishes to you and your
advertisers were drawn increasingly to address the Journal's grow-
families for a happy and healthy new year.
ing and influential readership. Circulation climbed to one million by
Cordially,
1966.
Dissenting viewpoints were introduced on the editorial pages,
through use of more outside contributors and columnists. But the
EDV
editorial-page philosophy of the Journal has been a constant through
Peter R. Kann, Publisher
its history. Today's editor, Robert L. Bartley, and his predecessor,
Vermont Royster, wrote with vigor in the spirit reflected by their
predecessor, William H. Grimes, when he wrote in 1951: "We believe
in the individual, in his wisdom and his decency. We oppose all
infringements on individual rights whether they stem from attempts
Warren H. Phillips, Chairman, Dow Jones & Co.
rsh
1ble
Plaza
interview plation
To yourd
Extended Page
1.1
STORE
4
$
Pakium
}
TOTAL P.01
212-416-2601
DANFORTH W. AUSTIN
DIRECTOR OF CORPORATE RELATIONS
200 LIBERTY STREET
DOW JONES & COMPANY, INC.
NEW YORK. NY 10281
8:35 Susts seated
few minutes - POTUS tnters
Warren Phillips
THE
SECOND
CENTURY
THE WALL STREET JOURNAL.
100
THE
For Immediate Release
Contact: Taggarty Patrick (212) 416-2616
ARCHITECT OF THE MODERN WALL STREET JOURNAL
Bernard Kilgore was a newspaper revolutionary.
Necktie yanked loose and shirtsleeves jammed to the elbows, Kilgore was the man who
forged the modern Wall Street Journal, transforming it from a small financial newspaper into
the nation's first national daily.
At his death in 1967, at age 59, Kilgore was Dow Jones' chairman, but he always referred to
himself as a newspaperman. In a Wall Street Journal career that spanned 38 years, he had been a
reporter, a copy editor, Washington correspondent (Franklin D. Roosevelt was one of his biggest
fans), political columnist, managing editor, and general manager before he became company
president in 1945.
Under his leadership, the Journal pioneered the daily use of in-depth stories and led in the
concept of delivering the same news and editorial content each morning to its subscribers, even
though they were scattered throughout the country and served by multiple printing plants.
Through it all, Barney -- as he was known -- kept hammering at one credo: Simplify the
complicated, and keep the reader interested. "The easiest thing in the world," he once said, "is to
stop reading."
Kilgore, a heavyset man with thinning dark hair, grew up in Indiana, and he never lost his
Midwestern touch. He was born Nov. 9, 1908, in Albany, Ind., the town where his father, Tecumseh
Kilgore, was superintendent of schools. Graduated from DePauw University in 1929,
Kilgore was hired later that year by Casey Hogate, executive editor of the Journal, and a DePauw
graduate himself.
He progressed quickly, becoming Washington bureau chief in 1935 and Journal managing
editor in 1941. But during his rise, Kilgore was always known for his easy way with colleagues.
He could look at himself with amusement and could tell stories of his own mistakes. Once, he
recalled how he had missed a big story at the 1940 Democratic convention. There,
Labor Secretary Frances Perkins told him that President Roosevelt was going to tap Henry
Wallace to replace John Garner as vice president. Kilgore thought it too far-fetched. Twenty-four
hours later the story was page one news everywhere.
(more)
Dow Jones & Company, Inc., Publisher of The Wall Street Journal
200 Liberty Street, New York, NY 10281
-2-
Throughout his career, Kilgore had the knack for doing the right thing. As Journal general
manager, he had to deal with rationed newsprint during World War II. He chose to forgo
increased advertising in favor of expanded circulation, opposite the path picked by other
publishers. "Now is the time to build," he said. "There will be lots of time later to get
advertising."
Kilgore especially was concerned with attracting smart young people to journalism. He
raised pay standards for beginning reporters and, in 1958, he set up the Newspaper Fund, a
national program designed to encourage and develop journalism talent.
For all of his successes, Barney Kilgore was restless throughout his career. He often warned
Journal staffers of the danger of standing still. "Whether we like it or not," he once told his
editors, "other publishers are getting smarter. We ought to keep our minds open to new ideas. We
don't want to pattern tomorrow's paper on yesterday's."
#
22
JUNE
Births
Deaths
A Case of Reappearing
I
Rider Haggard (author) 1856; John
St Paulinus (bell inventor/saint) 431;
Kegs
Dillinger (criminal) 1903.
Catherine Philips (poetess) 1664; Judy
Every year at sunrise on June 22nd, a
Garland (entertainer) 1969.
remarkable occurrence is said to take
For Whom the Bells Tolled
A Duel with Balloons
place at Fedan More gorge in
St Paulinus is reputed to be the
On June 22, 1808, in Paris, M. de
Scotland. This was where a man
THI
inventor of bells and today in the
Grandpré and M. le Pique fought a
called Macrae ran for safety while
duel from aerial balloons. Each went
being pursued by royalist soldiers.
year 431 he died and was buried
dell
aloft in his own craft with a
Macrae had undertaken to transport
beneath the bells of St Felix church
in Nola, Italy. The moment St
blunderbuss, and the idea was not to
some kegs of gold to Prince Charles
Paulinus gave up his soul to God, all
score a hit on the other man, but on
who was hiding in Skye. On being
ple
who were in his chamber felt a
the other man's air bag. Pique fired
ambushed he uttered a spell
first, and missed. Grandpré fired, hit
(fath-fith) which made the kegs, but
sudden trembling, as if by some
shock of an earthquake, and the
his opponent's balloon, and sent it
not himself invisible. Captured in
hurtling down. Pique died in the
Fedan More and executed he was not
church bells rang.
crash. Grandpré continued in a
able to reclaim the kegs, which
triumphal ascent, and landed about
become visible once a year on this
pla
seven leagues outside Paris.
day.
The Bloodiest Battle of All
The Battle of Morat, in Switzerland, fought between the
pr
Swiss and the forces of Charles the Bold, duke of
Burgundy, on June 22, 1746, was famous as possibly the
most bloody of all times. "Cruel as at Morat" became a
proverb. When the two armies met, each about 30,000
strong, not a single Burgundian and very few of the Swiss
survived.
An Admiral's Entry and Exit
On June 22, 1893, the HMS Victoria collided with the
Camperdown. Admiral Sir George Tryon and most of his
men died at sea. However at the same time at a party
given by his wife in London, 2,000 miles away, many
guests saw Sir George open the drawing room door,
enter and walk in, and stride across the room to exit by
another door. Lady Tryon only heard of his death some
days later.
Braddock Out, Louis In
"The Brown Bomber," Joe Louis, became the heavyweight
boxing champion of the world after knocking out Jim
Braddock in the eighth round at Comiskey Park in
Chicago, today in 1937.
Count Zeppelin's Passenger Service
On June 22, 1910 Count Zeppelin started the first airship
passenger service between Friedrichshafen and
Dusseldorf, a distance of 300 miles. The first airship was
called Deutchland.
THE
SECOND
CENTURY
THE WALL STREET JOURNAL.
TOURNA US
DOW JONES & COMPANY, INC.
Dow Jones, founded in 1882, is a leading publisher of financial information. Revenue exceeded
$1.6 billion in 1988. Over 9,000 employees around the world are engaged in newsgathering, sales,
technical, production, administrative and distribution activities delivering news and
information to Dow Jones customers quickly and accurately by print and electronic media.
The Wall Street Journal is Dow Jones' flagship publication and the country's largest newspaper,
with a daily circulation of almost two million copies and an estimated readership of more than
five million people. The domestic Journal is complemented by The Wall Street Journal/Europe,
published in Brussels, and The Asian Wall Street Journal, published in Hong Kong.
The Dow Jones News Service, called the Broadtape, covers the equity markets and the news that
affects them.
Dow Jones News/Retrieval, the company's data-base publishing unit, is a leading supplier of
computerized business and financial news and information, providing subscribers with 50 data
bases.
Telerate, Inc., 67% owned by Dow Jones, is a major supplier of computerized financial
information.
The Professional Investor Report is a companion wire to the Broadtape. It transmits an
immediate alert when an unusual price or volume move takes place in any of the 5,400 most
actively traded common stocks.
The Capital Markets Report provides comprehensive coverage of the fixed income and financial
futures markets.
AP-Dow Jones is a joint venture between the Associated Press and Dow Jones that specializes in
the coverage of international economic, business and financial news.
DowPhone is an interactive voice information service.
The company's television unit provides a daily morning and evening news service of business
reports to commercial TV stations in the U.S.
"The Wall Street Journal Report on Television" offers a weekly half-hour broadcast of business
and financial news and features.
Working with TV Tokyo and the European Business Channel, the company's television unit
provides daily live broadcasts to Japan and Europe.
(more)
Dow Jones & Company, Inc., Publisher of The Wall Street Journal
200 Liberty Street, New York, NY 10281
-2-
"The Wall Street Journal Report" and "The Dow Jones Report" are the company's radio news
programs.
Ottaway Newspapers, Inc., a wholly owned subsidiary, publishes 23 daily community papers.
Barron's is a weekly financial magazine aimed at people who make investment decisions.
American Demographics is a monthly magazine that examines and explains demographic
trends.
The Far Eastern Economic Review is Asia's leading English-language newsweekly.
The Asian Wall Street Journal Weekly is published in New York for readers with Asian
interests.
The National Business Employment Weekly contains articles on career advancement and
job-related advertisements from The Wall Street Journal.
Dow Jones also has investments in the following: newsprint mills in Canada and the U.S.;
Groupe Expansion, a French business publisher with whom it also has an interest in Cinco Dias, a
leading Spanish daily business newspaper; AmericaEconomica, a new South American business
monthly; Mediatex Communications, which publishes Texas Monthly magazine; and
Press-Enterprise Co., a daily newspaper publisher in Riverside, California.
#
Circulation sources: Audit Bureau of Circulation
Readership sources: Simmons, 1988
THE WALL STREET JOURNAL ANNOUNCES CENTENNIAL PLANS
NEW YORK, N.Y. (May 3, 1989) -- The Wall Street Journal today announced plans to
commemorate the publication's centennial year. A series of special events is scheduled in June,
leading up to the 100th anniversary of the Journal's first issue on July 8, and continuing
throughout the remainder of 1989.
Peter R. Kann, publisher of The Wall Street Journal, said, "Our centennial gives us an
opportunity to reflect on the history of American business and on the Journal itself. More
importantly, it's an opportunity to thank our readers and other audiences we serve, and look ahead
to the challenges of our second century."
Highlights of The Wall Street Journal's centennial include: the Creative Leaders Award
Dinner, honoring 47 of advertising's top creative leaders; The Wall Street Journal Future Forum,
moderated by ABC News Anchor Peter Jennings and featuring a panel of national and
international business and political leaders; the Winter Garden Gala, with a guest list of
America's corporate leaders; and a special Wall Street Journal Centennial Edition.
Creative Leaders Award Dinner - June 21, 1989
On June 21, the Journal salutes 47 of advertising's top creative leaders at a dinner in New
York City's Rainbow Room. The illustrious group of advertising executives includes Jerry Della
Femina, chairman of Della Femina, NcNamee WCRS; Hal Riney, chairman and chief executive
officer of Hal Riney & Partners; Mary Moore, vice chairman of Wells, Rich, Greene; and Keith
Reinhard, chairman and chief executive officer of DDB/Needham. The group is being honored for
outstanding creative contributions in advertising and participation in an ongoing,
award-winning campaign called, "The Wall Street Journal's Creative Leaders Program."
Comedian Alan King heads up the evening's entertainment program.
Future Forum - June 22, 1989
As a way of honoring the past 100 years by looking forward to the next, the Journal is hosting
"The Wall Street Journal Future Forum" on June 22. ABC News Anchor Peter Jennings will
moderate a panel of national and international business and political leaders. The forum will
(more)
Dow Jones & Company, Inc., Publisher of The Wall Street Journal
200 Liberty Street, New York, NY 10281
THE
SECOND
CENTURY
THE WALL STREET JOURNAL.
100 THE JOURNAL
WARREN H. PHILLIPS
Chairman of the Board
President and Chief Executive Officer
Dow Jones & Company, Inc.
Warren Phillips is chairman of the board, president and chief executive officer of Dow Jones
& Company, Inc.
Dow Jones publishes The Wall Street Journal, Barron's magazine, The Asian Wall Street
Journal, The Wall Street Journal/Europe, business and economic newswires, a computerized
news retrieval service, and the Ottaway group of community newspapers. The company also owns
a majority interest in Telerate, Inc. and has interests in newsprint mills and other areas.
Mr. Phillips was named president of Dow Jones and a director of the company in November
1972. He became chief executive officer in March 1975 and chairman of the board in March 1978.
Before being named president in 1972, Mr. Phillips had served as executive vice president and,
before that, as vice president and general manager. Mr. Phillips also has served as editorial
director (1971-88) and as executive editor of all Dow Jones publications (1965-70) and managing
editor of The Wall Street Journal (1957-65).
Born in New York City, Mr. Phillips attended schools in the New York area, served in the
U.S. Army from late 1943 to late 1945 and graduated cum laude from Queens College in 1947 with a
B.A. degree. He was awarded an honorary doctor of laws degree by the University of Portland
(Ore.) in 1973 and an honorary doctor of humanities degree by Pace University (N.Y.) in 1982. In
1987, he received an honorary doctorate of humane letters from Long Island University and an
honorary doctorate of humane letters from Queens College (N.Y.).
While at Queens College, Mr. Phillips was an editor of the campus newspaper, worked
weekends as a New York Herald-Tribune copy boy and was a part-time college correspondent for
the Tribune and the New York Times. He also contributed feature stories to the Tribune's Sunday
section.
Following graduation in 1947, Mr. Phillips joined The Wall Street Journal as a copyreader
in New York and wrote the What's News column until February 1949, when he went to Germany to
work on the copydesk of Stars and Stripes. He continued to contribute to the Journal as a free-lance
writer. In late 1949, he rejoined the Journal staff as a full-time correspondent in Germany. He
covered the lifting of the Berlin blockade, the end of military government and the establishment at
Bonn of the first freely elected German government since the 1930s.
(more)
Dow Jones & Company, Inc., Publisher of The Wall Street Journal
200 Liberty Street, New York, NY 10281
-2-
In early 1950, Mr. Phillips was named chief of the Journal's London bureau. He reported on
Europe's recovery under the Marshall Plan, its postwar rearmament and Winston Churchill's
return to power in Britain, as well as other stories in France, Spain, Italy, Greece and Turkey.
At the end of 1951, Mr. Phillips was transferred to New York as foreign editor. He was
named news editor in 1953 and assigned to edit Page One stories. The following year he moved to
Chicago as editor in charge of the Journal's Midwest edition. In March 1957, he returned to the
Journal's New York publishing headquarters as managing editor. During his eight and one-half
years in this post, he helped broaden the paper's coverage to supplement its basic business and
governmental news reporting.
In late 1972, Mr. Phillips toured the People's Republic of China for three and one-half weeks
with a delegation of the American Society of Newspaper Editors at the invitation of Chinese
journalistic organizations. Ten articles Mr. Phillips wrote during that trip, plus another six
written by colleague Robert Keatley, were published in a book, "China: Behind the Mask."
Mr. Phillips was chosen one of the Ten Most Outstanding Young Men of the Nation of 1958 by
the U.S. Junior Chamber of Commerce. He is former president (1975-76) of the American Society of
Newspaper Editors. From 1971 to 1973, he was president of the American Council on Education for
Journalism, the body that supervises journalism school accreditation. He served as a member of
the Pulitzer Prize Board from 1977 to 1987. He was a director of the American Newspaper
Publishers Association from 1976 to 1984. In 1984, Mr. Phillips was inducted into the Information
Industry Association's "Hall of Fame."
Mr. Phillips is a trustee of Columbia University and a member of the Visiting Committee of
Harvard University's John F. Kennedy School of Government. He also is a member of the Queens
College Corporate Advisory Board.
Warren Phillips married the former Barbara Anne Thomas of Cape Charles, Va., in
London in 1951. They have three daughters, Lisa, Leslie and Nina.
#
THE
SECOND
CENTURY
THE WALL STREET JOURNAL.
100 WALLSTREET JOURNAL
PETER R. KANN
Executive Vice President of Dow Jones & Company, Inc.
Publisher of The Wall Street Journal
(New York)
Peter R. Kann is executive vice president and a director of Dow Jones. In January 1989, he
became publisher of The Wall Street Journal and editorial director of Dow Jones' print
publications.
A native of Princeton, N.J., Mr. Kann graduated from Harvard University in 1964 with a
bachelor's degree in government.
He began his newspaper career as copy boy for the Princeton Packet. In college, he was
political editor of the Harvard Crimson and a member of its editorial board.
His association with The Wall Street Journal began in the summer of 1963 as a Newspaper
Fund intern in the Journal's San Francisco bureau.
Mr. Kann joined the Journal's Pittsburgh bureau in 1964, covering business and labor. In
1967, after a year in the Los Angeles bureau, he became the Journal's reporter in Vietnam. He
moved to Hong Kong in 1968 as roving Asian correspondent for the paper. He was awarded a
Pulitzer Prize in 1972 for Distinguished Reporting on International Affairs for his coverage of the
1971 India-Pakistan War.
In 1976, Mr. Kann was named the first publisher and editor of The Asian Wall Street
Journal and simultaneously served as Dow Jones' corporate representative in Asia. He returned
to the U.S. in March 1979 and became assistant to the chairman.
Later in 1979, he was appointed associate publisher of The Wall Street Journal. He became a
vice president of Dow Jones and a member of the management committee later that year. Mr.
Kann was named executive vice president of Dow Jones and president of the International and
Magazine groups in January 1985. He became a director of Dow Jones in 1987 and a director of
Ottaway Newspapers, Inc. in 1988.
Mr. Kann also is chairman of the Far Eastern Economic Review, an English-language
weekly magazine published by Dow Jones in Hong Kong, and a member of the Pulitzer Prize
board.
#
Dow Jones & Company, Inc., Publisher of The Wall Street Journal
200 Liberty Street, New York, NY 10281
THE
SECOND
CENTURY
THE WALL STREET JOURNAL.
100 WALL STREET
ROBERT L. BARTLEY
Editor and Vice President
The Wall Street Journal
(New York)
Bob Bartley is editor of The Wall Street Journal with primary responsibility for the editorial
page. He assumed direction of the editorial page at the beginning of 1972, and since then has
personally written a substantial share of the paper's editorials while also being deeply involved in
staff development and creation of new editorial-page features.
In 1980, Mr. Bartley won a Pulitzer Prize for editorial writing, The Wall Street Journal's
eighth Pulitzer. The year before, he received the Gerald Loeb Award for his editorials on
international monetary problems and, in 1977, Mr. Bartley received a Citation for Excellence
from the Overseas Press Club of America for dispatches filed from China and Tibet after the death
of Chairman Mao Tse Tung. In 1974, he was included among 200 "rising American leaders"
selected by Time magazine.
Mr. Bartley joined the Journal in 1962 and served as a staff reporter in the Chicago and
Philadelphia bureaus before joining the editorial page staff in New York in 1964. During 1971, he
wrote editorials and commentary articles from the Washington, D.C., bureau. He was appointed
editor of the editorial page in 1972. Seven years later he assumed the title of editor of The Wall
Street Journal, a position last held by Vermont Royster, who retired from the post in 1971. Mr.
Royster and William H. Grimes, his predecessors as editor, were also winners of the Pulitzer
Prize for editorial writing.
Under Mr. Bartley's management, the Journal editorial page inaugurated its board of
contributors, its daily op-ed page and its daily Leisure & Arts section. Editors of the Journal's
news pages continue to operate separately.
Mr. Bartley is a member of the American Society of Newspaper Editors, the Council on
Foreign Relations, the National Conference of Editorial Writers, the American Political Science
Association and the Society of Silurians. He is also a trustee of the Mayo Foundation.
(more)
Dow Jones & Company, Inc., Publisher of The Wall Street Journal
200 Liberty Street, New York, NY 10281
-2-
Mr. Bartley was born in Marshall, Minn., and attended Ames, Iowa, public schools. He
holds a bachelor's degree in journalism from Iowa State University and a master's degree in
political science from the University of Wisconsin. While an undergraduate, he was editor in
chief of the Iowa State Daily and was selected for Phi Kappa Phi and Cardinal Key, the school's top
scholastic and leadership honor societies. He received an honorary Doctor of Laws degree from
Macalester College (St. Paul, Minn.) in 1982, and an honorary Doctor of Laws degree from Babson
College (Wellesley, Mass.) in 1987.
In 1983, Mr. Bartley was named a vice president of The Wall Street Journal and appointed to
the Dow Jones management committee, the body of senior executives that advises on and
formulates corporate-wide policy.
He and his wife, Edith, live in Brooklyn, N.Y. They have three daughters.
#
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AUDIOVISUAL COLLECTION
BOOK COLLECTION
MUSEUM COLLECTION
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)
DESCRIPTION: 4 b/w photos- one of Dow, Jones, of & Bergstresser,
founders of The Wall Street Journal; one photo Warren H. Phillips, Chair-
man of the Board of Dow Jones & Company, Inc.; one photo of Peter
R. Kann, Publisher; one photo of Robert L. Bartley, Editor; one
photo of illustrations of Kann & Phillips; one photo of reproduction
of front page of first issue of TWSJ, July 8, 1889
6 photos altogether
SERIES
BOX NO.
Office of Speechwriting
Speech File - Backup
21
FILE FOLDER TITLE:
Wall Street Journal Centennial Dinner
6/22/89 [OA 6345]
TRANSFERRED BY:
DATE OF TRANSFER:
JGP
6/20/96
RECEIVED BY:
DATE RECEIVED
Mary Finch
6/20/96
Giorgio Palmisano
Warren H. Phillips
Warren H. Phillips
Giorgio Palmisano
Peter R. Kann
Robert L. Bartley
harles H. Dow
Edward D. Jones
Charles M. Bergstresser
The Wall Street Journal's use of illustrations rather than photographs is a trademark of the newspaper.
Illustrators trace a photostat, taken from a photograph, onto bond paper. The tracing is mounted onto a
board and the image is filled in with lines and dots. Artists use medium-fine point, black technical pens.
The basic half-column portrait takes four to five hours to draw, less as deadline draws near. (Left) Warren
H. Phillips, chairman of Dow Jones & Company, Inc. (Right) Peter Kann publisher of The Wall Street
Journal.
THE WALL STREET JOURNAL.
VOL 1-NO. 1.
NEW YORK. MONDAY. JULY 8. 1889.
PRICE TWO CENTS:
Average Movement of Prices.
Clearings Last Week.
W
Remain
Cases,
THE WALL STREET JOURNAL
Members
K.
r
The ball market of 1685 began July 2, with the average
Boston special-The Post's table of clearings shows gross
f.
K.
I
Name -
price of 12 active stocks
exchanges of 41 cities for the week ending July a 1889,
PUBLISHED daily, except Sundays
The rise culminated May 18. 1887. with the same twelve
1,523, against $883,903,314 last year, an inc. of 27.5%
GILDER, FARR & CO.
stocks selling at 93.27.
Outside of New York the inc. is 142% New York inc. 37.3%
and Stock Exchange holidays, at 3.15
Prices gradually declined for about a year. reaching the
Boston 27.9, Philadelphia 6.3, St. Louis, 33.6, San Francisco
Bankers and Brokers
next extreme low point Appl 2, 1886. the 12 stocks selling at
18, Cincinnati 7.2, Kansas City 27.5, New Orleans3 St. Paul
P.M.
75.28 The since then, counting from one turning
2. Omaha 39.5, Minneapolis 162 Detroit 2, Denver 70.5,
31 & 83 BROAD STREET,
SUBSCRIPTION Price, $5.00 per
point to another, follows:
Peoria 127, Indianapolis 3.9, FL
Worth 90.3, Wichita 48.4,
NEW YORK.
annum. Delivered by carrier without
Last low point
Apr. 2 1888, 75.28
Chicago dec. 5% Milwankee1.6 Duluth 44.6 and Topeka 4.9.
Rallied to
May
1.
83.54
For the month of June exchanges of 40 cities show an in-
charge, to subscribers of our regular
Declined to
June 13.
77.12
crease of 22.2% Outside of New York increase 9.3% New
Stecks and Beads Benght and Sold on Commission
news service. Reduced rates to bankers
Rallied to
Aug. 8,
85.95
York increase 30.3% Boston 188% Philadelphia 12.15, Chicago
DEALERS IN INVESTMENT SECURITIES.
and brokers taking a number of copies
Declined to
Aug. 18,
44
83.76
0.1% St. Louis 18.9%, San Francisco 2.7% Kansas City St.
Rallied to
Oct,
1.
"
88.10
Paul 2.1% Omaha 20.8% Denver 26.0%, Peoria 23.8%, Ft.
OFFICE OF THE ASPEN MINING &
for mailing. Postage charged on copies
Declined to
Dec.
5.
64
81.88
Worth 47% Topeka 18.46 Deluth decrease 45.5%
SMELTING COMPANY.
ordered for mailing abroad. All sub-
Rallied to
Feb. 18, 1889,
87.77
For 6 months gross exchangesol 40 cities show an increase
No. 54 Wall St.,
Declined to
Mar. 18.
83.59
of 15.85. Outside of New York increase 11.9% New York
NEW YORK, July 8th 1889.
scriptions payable in advance.
Rallied to
June 12.
91.38
increase 18.2% Boston 11.8% 15.9% Chicago 7.8%
The 9th regular monthly dividend -
ADVERTISEMENTS 20 cents per
Closed Set. night
July 6,
F.
87.71
St. Louis 8.5% San Francisco 1.9% Kansas City 11.3% Omaha
twenty cents per share has this day. been
19.5%
Denver
38.9%,
Peoria
17.31,
Duluth.
13.6%,
Ft.
Worth
declared on the stock of this Company
line. Special rates to advertisers taking
The Market To-Day.
31.8% Topeka 31.4%
shares) payable at the office of
space for one, three, six or twelve
There is some reason for believing that operators identified
the Company on and after the 12th day
Bankers Exerting
Their Power
months. Advertisements may be changed
of July to stockholders of record. Trans
with the bear party sent early orders to London to depress
Chicago special-Itis stated on excellent authority that
fer books will close Wednesday. July
as often as desired without charge.
Americans in that market as a preparation for the opening
the Western presidents are getting positive orders from New
10th. at 3 o'clock P. and reopen More
here. These orders were faithfully executed, and London at
DOW. JONES & CO.,
York and Boston banking houses to settle the Western trou-
day, July 15th, at 10 clock a. m.
9.20 was quoted as opening weak and as having become very
bles at the meeting to-morrow. Some BORT of plan to take care
J.L. TILTON, Secretary
26 BROAD STREET,
weak? Prices, however. were only a little below New York
of C.: B. & N. will be considered, and it is believed that if
closinff figures.
C.. B:& N. can be controled, a
general settlement will be
CENTRAL RAILROAD Co. OF NEW ERSEY
NEW YORK.
effected:
119 Liberry Street,
London houses were, however, sellers at the opening. and
NEW YORK, July 8, 1682.
there developed a decided lack of buyers. Lake Shore fur.
Sales of stocks from 12 to
1-Listed
47,426;
unlisted
A dividend of one and a half per cent.
nished so illustration: It opened at 1011 and was then offered
5,454. Total. listed 194,408 unlisted 27,866.
has this day been declared. payable
DOMINICK & DICKERMAN,
down an eighth at a time to 101 where the next sale was made.
12.40 p. m.-Slayback sold Union Pacific down.
August 1st prox.. for the quarter ending
This temper started a rush to sell out, during the first hour,
The first bale of cotton from the South was sold at suction
June 30th ulto. The transfer books will
Bankers and Brokers,
prices generally went off from t to IX. In St Paul Mr.
in front of the Cotton Exchange and was bought by
close on Monday. the 5th inst, and
Henry
open on Friday. August 2d.
74 BROADWAY AND 9.NEW STREET,
Rendolph had a large selling order: in Union Pacific Mr.
By order of the board.
Savin made the lowest prices. Reading was sold by Opper
Press. Cincinnati-It is reported here from a reliable
BRANCH OFFICERS WITH PRIVATE WIRES
source that Sullivan and Kilrain were fighting at 11.45 a.m.
J. W. WATSON,
heim &Co., by Mr. Burras and Mr. Wheeler, and Northwest
The contest was a long one and Sullivan was having the best
Treasurer.
348 Broadway I 657 Fifth Avenue
went down OR sales by Davis Johnson. Traders made most of
of it and was sure to won
the transactions in Atchison although there was evidence of
Emburgh sold Missouri Pacific.
Toledo, Ann Arbor and
W. G. DOMINICK.
Member " Y. Produce Exchange
some support when the other market was weakest. The Trust
The Position
(Alton.
W. a DICKERMAN
Stocks were not a feature. although weakening in sympathy
Chicago special Vice President McMullin sive
Alton is
North Michigan Bonds
B. DOMINICK
Members of the N. Y. Stack Extenge
and on the execution of stop orders.
not inclined to reduce reducing them or
G. F. DOMINICK.
The drive ended about 11 clock and the market had Little
ON CADILLAC EXTENSION
to injure the business of its competitors We have
but there was no general rally. There was a single item of
stock. etc.. from Missouri River for the reason that we think
FOR SALE
Orders executed a a and Industrial Stocks,
favorable news from Chicago to the effect that New York
these too high and that the best interests of roads at the
- - P.go Line
bankers were exerting a strong influence upon the railway
Missouri River will be subserved by the small reductions which
CHARLES M. WHITNEY & CO
and -
we desire to put into effect. The fact is that since the roads
managers in favor of peace. It was said also that a plan would
began to charge live stock shipments. on the basis of
Bankers,
Denver 6s and 7s
be presented at the Chicago meeting to morrow for taking care
weight instead of carloads
has cost 865 to 875
per car from Kansas City to Chicago, whereas the old rate
96 BROADWAY.
of Burlington & Northern.
WITH ASUNDANT SECURITY, ARE BETTER THAN ANY
The long expected Jersey Central dividend was declared
was $50 to $60: We reduced the
passenger rate to meet the
OTHER Ss WITH NO CREATER SECURITY, OR
at BOOD and proved a gratifying disappointment to those who
competition of scalpers who were
belling tickets via other lines
a. AND 10s WITH LESS
at a reduced rate:
have been expecting a four or five per cent. rate. The direc-
H. STERLING & CO.
WE OFFER CHOICE FIRST MORTGAGES ON PRIME
DENVER PROPERTY.
tors voted to pay a quarterly dividend of HS. No statement
Chicago special to Jones Kennett & Hopkins-Local
Stock Brokers,
was made public, but the conservative management of Jer
securities Chicago City RY 59@60. Chicago Pass R'y
MC INTOSH & MYGATT,
sey Central is evidence that so high a mis would not have
1071 asked, Dismond Match Co. 150@151, North Chicago
SPECIAL ATTENTION TO TRUST STOCKS.
BANKERS
then made if the way to maintaining is had not seemed reason-
Street Ry 1921 asked, West Chicago Street Ry 100@100f,
DENVER, COLORADO
Gaslight 6s Consumers 96 asked.
30 Broad Street, New York.
New York Office. 96 Broadway
ably clear. Jeruey Central profised by the Lehigh and Reading
strikes Inst year. but without them was able in the first five
Jersey Central
Dividend
Monace
Matches Sunch
FRANCIS L HINE, AGENT
HARVEY
Rece,
ALLEN F. Marcia
months of the year to increase its net earnings $15.870 aret
Jersey Central has declared
dividend of 11% for the gear-
HORACE L. HOTCHEISS & Co.
those for the same time in 1888.
ter ending June 30, payable Aug.
1, 1889. Books 16
DECKER.
Bankers and Members,
The news that the bankers syndicate was again exerting
This dividend is declared with
expectation of its contisu
ance.
in
accordance
with
the
statementin
as a as WALL STREET, NE YORK
the
pressure upon the railroad managers quickened the disposi-
annual
report
on
- - - -
-
HOWELL
page 11.
-
tion of traders to take profits on the short side and apparently
& Co.
led some of the larger bears, to endeavor to lessen their fol-
Bulletin. New Orleans, says
& took place near Rich,
J. W OGDEN & CO.
lowing. The result was a decided rally carrying prices up to
burg. On account of there being
no communication with the
Bankers and Brokers.
Bankers and Brokers,
IS with New England and the Trust stocks leading.
place particulars won't be had
till the return of the train,
which is due at p.m.
No. 4 Equitable Building, New York City
$; The Aspen Mining and Smelting
Transact - - all Dealt
Co.
has
declared
the
9th
Boston Money Market.
- - - You Stock -
Nos. 44 & 46 BROADWAY,
regular monthly dividend of 20 cents per share to stockholders
DIRECT PRIVATE WIRES CHICAGO AND BOSTON.
Boston special-The week opens with a decidly firmer
of record, payable on and after July 12th at office. Transfer
NEW YORK.
feeling in the money market. Money between banks continues
books close July 10th and reopen July 15th.
JAMES I Prest.
Wa V. Sec'y and you.
in sharp demand 5 and 0%. being readily paid for loans this
2 p.m-Siayback, Kirkner and other traders made the
New York Equipment Co.
CHICAGO
NEW YORK
a.
an. It is possible that money will be brought over from
rally.
New York to-night. It is claimed by some that from this
RAILWAY EQUIPMENT.
S. A. KEAN & CO.
time on the clearing house rate will stand 4% at least. The
Boston special-Atchison officials say that in their opinion
10 WALL STREET. NEW YORK
firmaese of clearing house money is reflected on the outside.
the stock is unassessable. In case of reorganization, however,
G. a F. Course V. and Supe of Equipment
Bankers,
The banks are not losning OR call to-day less than 6%
stockholders would undoubtedly be willing to contribute rather
115 BROADWAY.
excapt is the case of very favored borrowers. Business on
than permit a foreclosure. Advices from Director C. K. Halli-
time loans is at very low ebb and rates are nominal at 4 or 5%
day. Topeka. Kan., say that the crop prospects of that State
PURNELL, HAGAMAN & co-
r celve June subject to Check: allow Interest ON Time
Very little paper will be offered entil rates become more nettled.
are better than ever before known. The heat crop will be
Deposits and deal an Choice Investment Securities.
twice that of last year and the oat crop three times as great
Bankers and Brokers,
Philadelphia Market To-day.
Corn in the southern part of the State is already from to G
List of High Grade Municipal Bonds on application.
Philadelphia special. 2.30-The special feature of Phila
feet high, and commencing to tassel out President Strong
104 BROADWAY, NEW YORK
delphis market to-day was some heavy liquidation in Reading
also confirms the report. There is little question but that
Kansas will have a tremendous
by ball houses-some 7,000 shares being sold at 281. It was
business this year and the
WE FURNISH MAPS
Storts, Reads. Grain. Procedure and Patroleur
all well taken by New York and good houses here. Outside
future of Atchison depends on
the rates it gets for carrying.
For Railway Officers, Shappers and - COMPLE
Brught and Sale for - or - March
- and - of details and general quality,
of this market is dull and traders are not inclined to do much
The winter wheat crop has already commenced to move in
SURPASE ALL OTHERS
eatil the situation is cleared-
some sections and will be moving freely by August.
BRANCH OFFICES:
Write - Corcelate and a about what - require
Wheeling & Lake Erie has
declared the regular quarterly
Stree Scrings - distry, Car. Coart . Busican Ship Miss.
WE ALSO PREPARE AND PRINT
Washington special. The Treasury accepted $35,800
dividend of 1%, payable Aug. 15.
Books close Aug. 1 and re-
- #tains Notel 206 Water state.
- - - Products Maps for New Rathways, Mage for
open Aug. 16.
use Broom,
of West 14th as a, Called
Aarmal Reports, & - - Write for
at 1061.
Boston special-Bank statement shows & decrease of
89 - - Box - Coan.
RAND. McNALLY Y & CO.
Produce Exchange. 2:15:-Wheat firmer on the late cables
$418,1 in the reserve.
and some reports of crop damage: S loads milling: no exports.
- Vas - with Entruge that Kain ONLY
328 BROADWAY,
Corn quiet: 24 loads export.
$.10 m.-Kirkner bought
1.000 St. Paul and Tappin bid
it up.
Spencer Trask & Co.
Mr. Duncan A. MacTavish of the British Bank of North
WML
DELDON
Philadelphia special-The Insurance Company of North
AVIOR
[Monther - Tab Smck Exchange
(Munter) theck Exchage
America, died this morning aged 72.
America declares a sami-annus
dividend of 7th, payable on
MARRY DAY, Member - Test - Dicharge
BANKERS AND BROKERS,
Pittsburgh special-0 brokers here are thoroughly sick
FISHER Member - Back Exchange
idemand.
COMET) TRESTON
Nos Γ6 & 18 Broad Street, New York.
of dealing in futures, as it has knocked business out entirely,
and a movement was started on the Exchange to-day to get a
Boston special-The Boston & Albany is understood to be
W. S. LAWSON & Co.
Albany, N Y.
Previdence,
R
1
conference of exchanges and have the amendment on that point
megotiating for the sale of its large granite building at Spring-
Serezoge.
rescinded. It seems likely to be carried.
sold and the early removal of the offices established there to
Bankers and Brokers,
Transact a General Bonking Business.
this city. The Connecticut River Railroad Co. is It is said
Philadelphia Statement reserve decreased
disposed to buy the block. The Boston & Albany Co. asking
Special attention given to Investment Securities
$357,000.
price is $150,000, a Agura much
below the original cast of con.
49 EXCHANGE PLACE
14 EXCHANGE PLACE
Direct Wire: 30 each office, and to
The Baltimore American puts up a bullein that there 15 a
struction.
New York
BORTON
PHILADELPHIA, LOSTON AND CHICAGO,
rumor to effect that Kilrain has won and Sullivans backers are
Sales of stocks from 1 to $
Listed 49,7771 unlisted
holding the wire to hedge on beb.
1900
Total-Listed 244,185; unlisted 88,056,
- When - - Yes, - - - Charge
THE
SECOND
CENTURY
THE WALL STREET JOURNAL.
100 WALL STREET JOURNAL
PULITZER PRIZES
1947 - William H. Grimes receives The Wall Street Journal's first Pulitzer Prize. It is awarded
for editorial writing.
1953 - Vermont Royster receives the Journal's second Pulitzer, also for editorial writing.
1961 - Edward R. Cony is awarded the Journal's third Pulitzer for his analysis of a timber
transaction that drew public attention to business ethics. It is the paper's first Pulitzer for national
reporting.
1964 - Norman C. Miller Jr. receives the Journal's fourth Pulitzer -- the paper's first for local
reporting on general assignment -- for his account of a multi-million dollar vegetable oil swindle
in New Jersey.
1965 - Louis M. Kohlmeier receives the WSJ's fifth Pulitzer for his report on the growth of
President Lyndon B. Johnson's family fortune -- the paper's second for national reporting.
1967 - Stanley Penn and Monroe Karmin receive the paper's sixth Pulitzer Prize for their
investigations into the connection between American crime and gambling in the Bahamas. It is
the Journal's third Pulitzer for national reporting.
1972 - Peter Kann is awarded the WSJ's seventh Pulitzer for his coverage of the war between India
and Pakistan -- the Journal's first for international reporting.
1980 - Robert L. Bartley is awarded the Pulitzer for editorial writing, the Journal's eighth.
1983 - Manuela Hoelterhoff receives the Journal's ninth Pulitzer, awarded for criticism.
1984 - Karen Elliott House receives the Pulitzer in international affairs reporting in recognition of
her Middle East coverage, and Vermont Royster is awarded his second Pulitzer for distinguished
commentary -- the paper's tenth and eleventh Pulitzers.
1988 - Daniel Hertzberg and James B. Stewart are awarded the Pulitzer for explanatory writing.
Their articles cover the October 1987 stock-market crash and insider trading. Walt Bogdanich
receives a Pulitzer for specialized writing on faulty medical lab testing. These are the Journal's
twelfth and thirteenth Pulitzers.
#
Dow Jones & Company, Inc., Publisher of The Wall Street Journal
200 Liberty Street, New York, NY 10281
coach. The size of Guerney's vehicle should also qualify him as the
1894
Henry G. Morris and Pedro Salom open the first automobile
first bus drider, and the trip as the first bus tour. The distance
factory in the United States in Philadelphia. The product: the Elec-
traveled was about eighty miles.
trobat.
1831
The world's first scheduled "bus" service operated for a few
1896
Henry Ford (1863-1947), Ransom Eli Olds (1864-1950), C.
months between Gloucester and Cheltenham, England, using three
B. King, and Alexander Winton-all major pioneers in the Ameri-
Guerney steam carriages.
can auto industry-built and tested their first models. In France,
Léon Bollée offered his voiturette (little car), the first with pneumatic
1860
Belgian-born inventor Jean Joseph Étienne Lenoir (1822-
tires a standard feature.
1910) built the world's first successful internal-combustion-engine
vehicle-a "gas carriage"-using an engine he first constructed the
previous year. By 1863 a second Lenoir vehicle traveled from Paris
1899
Ransom Eli Olds began production of the first Oldsmobiles.
to Vincennes, a distance of six miles, in three hours-giving an
average speed of one-half mile per hour.
1901
Cannstatt-Daimler of Germany introduced the first Mer-
cedes, named after the teen-aged daughter of Emil Jellinek, one of
1864
The first auto export in history: Lenoir sold one of his
Daimler's first customers.
internal-combustion-powered carriages to Czar Alexander II of
Russia.
1902
Dr. Lehwess Panhard made the first attempt to drive around
the world, but his auto caravan Passe Partout didn't get past Ninji,
1865
Karl Benz of Germany (1844-1929) designed and built a
Novgorod, Russia.
three-wheeled gas-driven vehicle, the first to be designed and built as
a motor vehicle, rather than converted from a carriage. The Benz had
1903
Henry Ford founded the Ford Motor Company in Detroit,
its first test runs in 1886.
Michigan. The same year, H. M. Leland founded the Cadillac Motor
Car Company in the same city.
1888 John Dunlop (1840-1921) "invented" the pneumatic tire
(or, rather, tyre), marking the beginning of the modern tire industry.
1906
Sir (Frederick) Henry Royce (1863-1933) of England, who
Curiously, another Scotsman, R. W. Thomson, took out a patent on
built his first Royce car in 1904, organized an auto manufacturing
pneumatic tyres in 1845. But Dunlop got all the credit.
business with C. S. Rolls, and the first Rolls-Royce was born.
1891
French inventor Ferdinand Forest built the first four-cylin-
der gas engine with mechanical valve operation; a few years later he
1908
William C. Durant (1861-1947) founded General Motors
built the first six-cylinder engine. Ironically, Forest's inventions—
Company, and Henry Ford produced the first Model T Ford, per-
which became the standard for millions of automobiles-were first
haps the most famous single model car ever built. The first year, eight
used in boats, and he failed to be recognized for his contribution
thousand Model T's were built.
when they were later used in automobiles.
1909
In France, De Dion Bouton produced the first important
1893
Brothers Charles Edgar and James Frank Duryea (1861-
production-line auto with a V-8 engine.
1938, 1869-1967) built the first "motor buggy" in Springfield, Mas-
sachusetts. Other motor vehicles had been built in the United States
1911
Ford opened its first overseas factory at Trafford Park, Man-
before the Duryeas', but theirs is recognized as the first practicable
chester, England. The same year Cadillac was the first manufacturer
automobile built in the United States.
to feature electric lights and starters on their models.
76
77
DENNIS SANDERS
INVENTIVE, EXPLOSIVE, AND DEADLY FIRSTS
produced the first cars completely assembled on conveyor belts,
reducing the time required to build a car from twelve and one-half
hours to one and one-half hours, revolutionizing American industry.
1915 Because sales had surpassed annual target figures, Ford
Motor Company offered the first rebate-fifty dollars-to anyone
who purchased a Model T.
1918 For the first time, car registrations in the United States
exceeded 5 million.
1922 In the United States, Trico introduced the electric wind-
shield wiper.
1924 Walter P. Chrysler (1875-1940) produced the first Chry-
slers.
1934 The Chrysler Corporation produced the first Airflow cars-
streamlined vehicles that were to have a revolutionary impact on
auto design. Airflow also featured the first overdrive transmis-
sions.
1936 The Nazi Government financed the development and manu-
facture of the first Volkswagens, the design of which remained virtu-
ally unchanged to the 1970's.
1939 The Lincoln division of Ford Motor Company produced the
first Lincoln Continental and Mercury models.
HENRYSTON CAR
1948
Rover of Great Britain introduced the first four-wheel-drive
Land-Rovers.
For Ford and country: Sitting at the helm of his first car, complete with Stars
and Stripes superimposed, this early public relations photograph of Henry Ford
1950 Rover pioneered the first gas-turbine engine car.
in retrospect makes a point about the impact of Detroit on the American Way
of Life.
THE BETTMANN ARCHIVE, INC.
1956 Ford Motor stock sold to the public for the first time since
Henry Ford bought out all Ford shareholders in 1917. In the 1917
stock buy-back, Henry Ford paid, 105 million dollars to buy out
other shareholders, which gave a return of 12 million dollars on an
investment of five thousand dollars in Ford stock made in 1908.
1913
Henry Ford used conveyor belts in his assembly lines for the
From 1917 to 1956 the Ford family retained full control of the
In
1914
Ford
giant business.
254 NEWSPAPERS AND JOURNALISM
OBSERVATION 255
Newspapers have developed what might be called a vested interest in
The ear tends to be lazy, craves the familiar and is shocked by the unex-
catastrophe. If they can spot a fight, they play up that fight. If they can un-
pected; the eye, on the other hand, tends to be impatient, craves the novel
cover a tragedy, they will headline that tragedy. Harry A. Overstreet
and is bored by repetition.
W. H. Auden
What you see is news, what you know is background, what you feel is opi-
The eyes indicate the antiquity of the soul.
Ralph Waldo Emerson
nion.
Lester Markel
To become the spectator of one's own life is to escape the suffering of life.
Freedom of the press is guaranteed only to those who own one.
Oscar Wilde
A. J. Liebling
One must always tell what one sees. Above all, which is more difficult, one
A good newspaper is a nation talking to itself.
Arthur Miller
must always see what one sees.
Charles Péguy
The first essence of journalism is to know what you want to know; the se-
A fool sees not the same tree that a wise man sees.
William Blake
cond, is to find out who will tell you.
John Gunther
Cultivated men and women who do not skim the cream of life, and are at-
Today's reporter is forced to become an educator more concerned with ex-
tached to the duties, yet escape the harsher blows, make acute and balanced
plaining the news than with being first on the scene.
Fred Friendly
observers.
George Meredith
A writer who takes up journalism abandons the slow tempo of literature for
People only see what they are prepared to see. Ralph Waldo Emerson
a faster one and the change will do him harm. By degrees the flippancy of
journalism will become a habit and the pleasure of being paid on the nail
There's none so blind as those who won't see.
and more especially of being praised on the nail, grow indispensable.
English proverb
Cyril Connolly
Opinion
Observation
One should respect public opinion in so far as it is necessary to avoid starva-
The eyes believe themselves; the ears believe other people.
tion and to keep out of prison, but anything that goes beyond this is volun-
German proverb
tary submission to an unnecessary tyranny.
Bertrand Russell
The lower classes of men, though they do not think it worthwhile to record
Public opinion, a vulgar, impertinent, anonymous tyrant who deliberately
what they perceive, nevertheless perceive everything that is worth noting; the
makes life unpleasant for anyone who is not content to be the average man.
difference between them and a man of learning often consists in nothing more
William R. Inge
than the latter's facility for expression.
G. C. Lichtenberg
You've no idea what a poor opinion I have of myself - and how little I
The eye sees only what the mind is prepared to comprehend.
deserve it.
W. S. Gilbert
Robertson Davies
Predominant opinions are generally the opinions of the generation that is
The things we see are the mind's best bet as to what is out front.
vanishing.
Benjamin Disraeli
Adelbert Ames
To be positive: to be mistaken at the top of one's voice.
You can observe a lot just by watching.
Yogi Berra
Ambrose Bierce
The eye is the jewel of the body.
Henry David Thoreau
When I want your opinion I'll give it to you.
Laurence J. Peter
7/8
Corporation of Trinity House, English
1970
Boardwalk Centennial Parade held in Atlantic
1685
mariner's organization,
City, New Jersey
rechartered
1971
Central Chile rocked by an earthquake
1721
Elihu Yale, godfather of Yale University, died
Explorer 44, U.S. sun-study satellite,
1726
John Ker, Scottish spy, died in debtor's
launched
prison
1757
French repulsed British and colonists at
Ft. Ticonderoga
July 9th
1779
Fairfield, Connecticut, burned by the British
Fritz-Greene Halleck, poet, born
Feast of St. John Fisher of Rochester
1790
First recorded U.S. passport issued
Feast of St. Thomas More
1796
French surrendered Reunion Island to England
518 AD
1810
Anastasius I, Roman emperor, died
King Louis XVIII chased out of France by
551
1814
Beirut, Syria, destroyed by an earthquake
Napoleon's return
1386
Swiss defeated Austrians at Sempach
1497
1822
Poet Percy Bysshe Shelley died at sea
VascoDa Gama set sail to find a sea route to
1835
Liberty Bell cracked
India
Ferdinanand von Zeppelin, airship inventor,
1552
1838
Treaty of Passau signed
born
1575
Queen Elizabeth I of England arrived at Kenil-
1839
John D. Rockefeller, organizer of the Standard
worth Castle for a very expensive 19-day vis
Oil Company, born
1578
Ferdinand II, Holy Roman Emperor, born
Saybrook, became Old Saybrook, and Deep River
1584
1854
Prince William the Silent of Orange assas-
became Saybrook, Connecticut
sinated (Holland)
1855
Sir William Parry, Arctic explorer, died
1706
Pierre d'Iberville, colonizer of Louisiana,
King Oscar I of Norway and Sweden died
died
1859
Turret gun patented
1727
1862
St. Veronica Giuliani died (Feast Day)
Union capture of Port Hudson gave them control
1755
1863
Braddock and his troops ambushed by French
of the Mississippi River
and Indians at the Battle of the
1364
Santee and Teton Sioux Indians defeated by the
Monongahela
U.S. Army at Killdeer Mt., South
1764
Rhode Islanders at Newport seized Ft. George
Dakota
and fired on H.M.S. Squirrel
John L. Sullivan won the last bare-knuckle heavy
1776
1889
Declaration of Independence read to colonial
weight fight over Jake Kilrain in
troops at New York; they tore down
75 rounds
a statue of King George III in
New York's Polo Grounds baseball stadium
celebration
opened and the home team won
1778
Ratification of the U.S. Articles of Confed-
1891
Warren G. Harding married Florence K. DeWolfe
eration began
1896
William Jennings Bryan made his "Cross of
1797
Edmund Burke, English statesman, died
Gold" speech
1807
Treaty of Tilsit completed (France, Russia,
1907
First "Ziegfeld Follies" opened
and Prussia)
George Romney, statesman, born
1816
Argentina proclaimed its independence from
1908
Nelson A. Rockefeller, millionaire and N.Y.
Spain (Argentine National Day)
governor, born
1819
Elias Howe, sewing-machine inventor, born
Walter Kerr, critic-playwright, born
1828
Gilbert Stuart, artist, died
1913
Billy Eckstine, singer, born
1832
1914
First Commissioner of Indian Affairs appointed
1939
Havelock Ellis, physician-psychologist-
1835
Tomas Palma, first President of Cuba, born
author, died
1850
Zachary Taylor, U.S. President, died
1945
Brazilian cruiser Baia exploded in the Atlan-
400 buildings in Philadelphia destroyed by fire
tic
1874
Abraham Lincoln Memorial Tower of Westminster
1948
First women sworn into the U.S. Regular Army
Bridge Road foundation laid
Gen. MacArthur named commander in Korea
(London)
1950
1957
Grace (Mrs. Calvin) Coolidge died
1878
Corncob pipe patented by Henry Tibble
1959
First U.S. troops died in combat in Viet Nam
H.V. Kaltenborn, broadcaster, born
U.S.S. Abraham Lincoln, a polaris submarine,
1893
1961
Boundary between Guatemala and Honduras set
completed
Religious Calendar
The Saints
July 8
St. Aquila and St. Prisca. Prisca also called Pris-
cilla. [d. first century]
St. Procopius, martyr. [d. 303]
St. Kilian, bishop, and his companions, martyrs.
[d. C. 689]
Birthdates
1478
Giangiorgio Trissino, Italian writer,
America; Chairman, Atomic Energy Com-
scholar; protègè of Popes Leo X, Clement
mission, 1947-50. [d. January 15, 1981]
VII, and Paul III; urged the standardization
1906
Philip (Cortelyou) Johnson, U.S. archi-
of Italian language, made up of parts from
tect, theorist; developer and proponent of
various Italian dialects. [d. December 8,
International Style of architecture.
1550]
1908
Nelson Aldrich Rockefeller, U.S. politi-
1621
Jean de La Fontaine, French poet,
cian; Governor of New York, 1959-73; U.S.
fabulist; created 12 volumes of fables, 1668-
Vice-President, 1974-76. [d. January 26,
94. [d. March 13, 1695]
1979]
1838
Count Ferdinand von Zeppelin, German
1913
Walter Francis Kerr, U.S. journalist, play-
soldier, aeronautical engineer; responsible
wright, drama critic for New York Herald
for construction of first rigid-bodied air-
Tribune, 1951-56; New York Times, 1956-
ship, 1900. [d. March 8, 1917]
1917
Faye Emerson, U.S. actress; noted for her
1857
Alfred Binet, French psychologist; with
starring film roles during the 1940s; one of
Thèodore Simon, developed standard for
the pioneers of early television; hosted a
measuring degrees of intelligence (Binet or
late-night interview show which set prece-
Binet-Simon test). [d. October 18, 1911]
dent for later shows of the same type. [d.
1867
Käthe Kollwitz, German printmaker,
March 9, 1983]
sculptor, etcher, and painter. [d. April 22,
1933
Marty Feldman, British comic actor. [d.
1945]
December 2, 1982]
1887
Hermann Rauschning, German states-
man; noted for his strong anti-Nazi stance
during World War II; immigrated to the
Historical Events
U.S., 1942; author of The Revolution of Ni-
hilism and other anti-Nazi works. [d. 1982]
1497
Vasco da Gama leaves Lisbon on his voy-
age to India during which he discovers the
1892
Richard Aldington, British novelist, poet.
Cape of Good Hope.
[d. July 27, 1962]
1709
Battle of Poltava is a resounding victory
1895
Igor Yevgenyevich Tamm, Russian physi-
for Peter the Great over Charles XII of
cist; Nobel Prize in physics for discovery of
Sweden and marks Russia's emergence as
Cherenkov effect in which radiated elec-
the dominant power in northern Europe
trons accelerate in water to speeds greater
(Great Northern War).
than that of light in the same medium
1853
U.S. Commodore Matthew Perry and his
(with P. A. Cherenkov and I. M. Frank),
fleet arrive at Edo Bay with first formal bid
1958. [d. April 12, 1971]
for trade and diplomatic relations with Ja-
1898
Alec (Alexander Raban) Waugh, British
pan.
novelist; brother of Evelyn Waugh. [d. Sep-
1859
Oscar I of Sweden dies and is succeeded
tember 3, 1981]
by Charles XV.
1899
David E(li) Lilienthal, U.S. government offi-
1889
Last bare-knuckles championship boxing
cial, lawyer; director of the Tennessee Val-
match is staged between John L. Sullivan
ley Authority, 1933-45, seeing it become
and Jake Kilrain. Kilrain is defeated after
the largest producer of electricity in
75 rounds.
400
Ambassador Chow deserves attention not
Fragmented China
merely because he agrees 200% with the more
Fragmented China?
tentative broken-China speculations of key
American officials, but because he and the
Some Analysts Suggest
government for which he speaks intend to do
Peking PowerFight
something The vilw of the Nationalists
Peking Power Fight
to return from Taiwan to the continent, which
Could Shatter Country
appeared hardly 2mbre) than propaganda.
myth so long as Red rule unified the vast
May Shatter Country
mainland, now may be viewed as not entirely
Contributed 10m Page One
mythical.
chaos and the wall posters in Peking report
The ambassador says it is reasonable to
strugg not in a national but province
assume that with some behind-scenes dicker-
by province, town by town.
Struggle Could Lead to Many
ing and encouragement the folks in at least
"It's pathetic to hear Peking asking for
one of the prospective pockets will invite the
unity from the provincial radio stations that
Pockets of Strength, Not
Nationalists to come on in. It's hoped it will
are supposedly backing Mao; they Ignora it
Victory by Single Faction
be a coastal pocket, he adds; quite likely it
and broadcast as they please," says one
will be somewhere in south China, birthplace
watcher.
of Chinese revolutions. And with luck the en-
Peking radio has been plaintively specific
Nationalists' Role Is Debated
try will be peaceable; it may be. symbolized
in saying that enemies of Mao are attempt-
by air delivery of a single emissary of Chiang
ing to establish "independent kingdoms'
in
Kai-shek. But the invitation might easily be
such provinces as Shansi, Kwangtung and
a cry for help against a hostile neighboring
Hupei. A multitude of local reports depict in-
By HENRY GEMMILL
pocket or local guerrillas - to which the Na-
tercity rail traffic down to a fraction of for-
Staff Reporter of THE WALL STREET JOURNAL
tionalists would willingly respond with troops,
mer flow, docks deserted by stevedores so
WASHINGTON - China may be breaking
guns and tanks, the ambassador says.
ships wait weeks to unload cargo, city folk
into fragments.
U.S. Analysts Dissent
who had been drafted to work as peasants
A world that has never felt comfortable
It is at this point in the analysis that the
now streaming back uncontrolled to the towns,
seeing two Chinas, the roaring Red one on
U.S. Government's China-watchers split away.
local banks pouring money out of their vaults
the mainland and the stubbornly Nationalist
As one of them says flatly, the Yankee cal-
in disregard of Peking instructions and bloody
culation is that the mainlanders have no yearn-
clashes in provinces remote from the capital.
one offshore - a world that has argued end-
lessly about which China is "real" - may
ing whatsoever for Chiang & Co.: the Tai-
Mao has told the army to protect "revolu-
before long be dazed by three, six, or more
wan regime will wait in vain for any invita-
tionary rebels" (the kids on his team), but
tion-and, anyhow, it would have to borrow
an army commander can have trouble sort-
than a dozen Chinas.
American boats to move any substantial
ing them out. Many a clash involves groups
This analysis and forecast cautiously of-
force to the continent. This much is clear:
equally adept at claiming the thoughts of Mao
fered. startling in its implications, is gaining
When and if the Taiwan government, which
inspire their every act; so the army has at
currency among senior sinologists and high
the U.S. legally recognizes as the rightful
times supported what turned out to be the
officials of the U.S. Government. The theory
ruler of all China, does conclude that the mo-
"wrong" side.
begins with what everybody knows: The small
ment has come-then the U.S. could face a
group of Communist leaders who for 17 years
Protection and purification via the army
fateful decision as to whether to help or hinder.
have ruled roughshod over a fifth of the
slips into further unreliability because mili-
globe's population is now engaged in frantic
With memories of the Bay of Pigs still
tary loyalties are split and disguised, too;
intramural struggle, Mao clique vs. anti-Mao
sharp and painful, the U.S. shrinks from the
when troops bumble into rubbing out; pro-Mao
clique. But the theory goes on to doubt what
faintest idea of sponsoring any expeditionary
Reds, it can be accidental-on-purpose. And
intrusion on what has been Communist turf:
most casual spectators have supposed: That
experts say it's possible some army units will
one clique or the other will win, and win
the Nationalist Chinese understand this and
divide into factions and spend their time fight-
all. Instead, by this analysis, the little cliques
avoid pressing for any American policy decision
ing each other - probably not in full-scale
have unleashed massive forces that none can
now-since the time is not ripe and by their
civil war but in unrelated small skirmishes
surely control; disintegration of the nation is
own most optimistic figuring the need to re-
yielding still more anarchy.
already far advanced and perhaps beyond the
sort to force may never arise.
It seems clear to observers that the nation
point of return.
All speculation about the future is chancy;
is losing to local groups even its grasp on
the American China-watchers freely entertain
foreign policy. Free-lance Red Guards long
What would the fragments look like?
other theories competing with the forecast of
delayed Portugal's effort to settle a contro-
One can imagine each of the Red regime's
fragmentation: they by no means exclude the
versy in Macao, its trading port at the edge
six administrative regions withdrawing to a
possibility that either the clique of party
of China. There is no indication that either
clear-cut independence behind its neat bound-
Chairman Mao or the rival crowd of President
faction in Peking wanted to eliminate this tiny
aries-but so precise a pattern is deemed un-
Liu Shao-chi-or some third force such as
colony, which brings in some $20 million yearly
likely. More tempting, looking back at China's
army generals exasperated beyond endurance
for China. But the local Red gang pushed
historic times of trouble, is the image of rising
-may wind up running a nation battered but
roughouse tactics, and even Chinese officials in
local "warlords" -autonomous bullyboys, each
still held together by baling wire. "Nobody
nearby Canton were too preoccupied with their
bossing some realm measured only by muscle.
Yet historic patterns are not likely to be
can know," says one official.
own problems to try getting the Macao trou-
Yet veteran observers seem sure of one
ble-makers under control. For survival, the
precisely repeated.
Pockets of Power
thing: The doctrine of disintegration and frag-
Portuguese administration in Macao has final-
mentation does seem to fit trends observable
ly been forced to agree not only to big cash
One China-watcher (admittedly not a neu-
tral one) who firmly predicts the Reds' main-
in China right now-seemingly with less
payments but to making &. public apology to
strain than the idea that either faction of the
Red rioters.
land empire will be in fragments before this
year is finished is Chow Shu-kai, who is am-
old Red hierarchy is on the way to victory.
How Did It Happen:
Fourteen months after, the U.S. experts first
So China is already suffering acute frag-
bassador to Washington from the Nationalist
identified, the dispute, and despite steadily in-
mentation, regardless of whether it will prove
government that has been waiting it out on
creasing neither clique has got hold
chronic. How could a fiercely totalitarian so-
Taiwan. He pictures a mainland that will be
divided into "pockets" - with oddly different
of the steering wheel: there is not even a
ciety fall into such impotence?
things squirming in various pockets. One pock-
çoherent civil war. Instead there is increasing
A selection of explanations is offered by
et might be run by peasants. violently anti-
Please Turn to Page 8, Column 6
the experts. What follows is a sampling, less
than exhaustive:
Communist, after a revolt and a land grab
from the communes to regain individual farm-
ing plots. Ninety miles away some army gen-
eral might rule his roost, without regard either
1961
to Peking authority or local popular desires.
So says Ambassador Chow. Presumably there
would be Communist pockets, too-Mao Com-
munist pockets, anti-Mao Communist pockets,
anti-both-of-'em home-style Communist pockets.
One analyst suggests, rather charitably,
that perhaps 750 million people are just too
many to make a manageable- nation. - under
any léadership any form of government. May-
be the Kremlin crew would find their Russian-
style revisionist communism unworkable if
they had to mampula 234 million So-
viet citizens but more than thrice that num-
ber. Maybe, Lyndon Johnson would discover
Democratic capitalism failing if he had to
coax & consensus not from 198 million Amer-
icans but from nearly four times that number.
Another suggests, rather maliciously, that
the industrious and intelligent Chinese could
have thrived under nearly any system of gov-
ernment except for idiotic blunders by the
handful of men who have held the reins. If
they had not wasted scarce engineering tal-
ent on a megalomaniac quest for atomic
weapons, to cite just one example, how many
fertilizer plants could have risen to help grow
food for how many hungry bellies?
At any rate, disaster and disillusion ac-
cumulated, until the somewhat rubbery "dem-
ocratic centralism" practiced by China's rul-
ing Communists could no longer stretch
enough to accommodate growing factionalism.
Mao, who fancied himself the peer of Lenin,
became a minority voice in his own regime.
But the majority did not ditch him-partly
because he had been made a living god, but
also because rival ambitions for grasping the
central power prevented agreement on a
strong successor and because provincial party
chieftains were developing a distaste for
strongmen in Peking.
Unleashing the Mob
To escape the deadlock, Mao then made a
decision that some observers characterize as
setting the nation irreversibly on the road to
fragmentation. He turned outside the tight
little rank of rulers-to enlist and unleash
the mob. Though his choice of teenagers as
the core of his terrorist Red Guard may well
have been tinged with romantic notions of
keeping revolutionary zest aflame in the rising
generation, mere cold-blooded calculation
could sufficiently account for it: He dared not
trust anyone old enough to remember pre-
Communist days; only the youngsters whose
entire lives had been pounded with his propa-
ganda would act as fanatic robots.
And they did. But high associates opposing
him countered by unleashing the peasantry-
the traditional hammer that has cracked dy-
nasties at least every few centuries through-
out Chirlese history. And Mao's foes also un-
leashed the new masses of urban adults, the
industrial proletariat, plus the managerial
class-non-Communist or only nominally Com-
munist-that had been keeping factories, fi-
nance, transport and much of the military ma-
chine running with some rationality. Once the
leash was unsnapped, any contending blocs
could far outrun the intentions of any faction
of Communist rulers-in blind passion or de-
liberate sabotage
If it does run the full course, the frag-
mentation of China will not be a pretty thing,
by anyone's analysis: A multiplicity of Chinas
did not make for good living when the war-
C
lords ruled early in this century; today there
V
are about twice as many Chinese mouths to
feed, twice as many Chinese bodies to clothe.
This planet's largest aggregation of humanity
seems to be hurtling toward fresh agony.
JAN 1967
Political Futures
With the political parties now dead-
locked-Republicans firmly in control of
the White House, Democrats entrenched in
White Middle Class
the Congress-the battle for political as-
cendancy will be waged for the allegiance
May Still Tip Balance
of the white middle class. The status of the
economy will be vital: good times equaling
GOP opportunity, bad times opening the
In Elections in the '90s
door to the Democrats.
Finally, the battle will be nasty and
negative, waged in the clutter of shorter
With Attention Spans Briefer
and shorter "sound
bites" on more and
Than a TV 'Sound Bite,'
more TV channels.
THE
To be heard, every-
body will have to
SECOND
Don't Look for Substance
shout.
CENTURY
Starties-Dems/Repup:
Political consult-
Who Counts on Hard Times?
ant Douglas Bailey
has seen the fu-
ture-and he is ap-
100
By JAMES M. PERRY
palled. Mr. Bailey
THE
STREET
Staff Reporter of THE WALL STREET JOURNAL
founded the Hotline,
Scenario No. 1:
a computerized com-
WASHINGTON-Privately, Bill Bradley
pilation of print and
PART OF A SERIES ON
had always believed it would take an eco-
TV stories about pol-
FUTURE ISSUES AND TRENDS
itics and govern-
PUBLISHED IN THE JOURNAL'S
nomic crash to put the Democrats back in
CENTENNIAL YEAR
the White House. When unemployment hit
ment, which is' fed
10% late in 1991, he knew he had a shot at
daily to political junkies. "On the average,
the presidency.
Americans watch TV seven hours a day,"
In the 1992 campaign, he ran hard
he says. "That hasn't changed much-but
against President Bush on a theme of eco-
the content of what Americans are watch-
nomic revival. "Let's make America No. 1
ing is undergoing dramatic change. Sit
again," he kept telling crowds of worried
down in front of cable TV for a day and see
Americans.
what's happening. It's sex and violence.
It worked. White middle-class voters
It's slam and smash. It's professional
who had deserted the Democrats in the '80s
wrestling and Morton Downey Jr. It as-
came flocking back. Important to the
saults the senses.
Bradley victory, too, was the candidate's
It is already affecting the network news
convincing support for a strong national
divisions, Mr. Bailey believes-diminishing
defense, tough law enforcement and a
the influence of their programs and alter-
costly effort to clean up the environment.
ing their coverage. "With the cable compe-
Once again, the Democrats retained con-
tition, they have to be entertaining, too.
trol of both houses of Congress.
Sound bites went from 45 seconds to 20
seconds. Now it's seven or eight seconds.
Scenario No. 2:
You've got to move. Speed. Action. Con-
VASHINGTON-Even Dan Quayle was
frontation. Small wonder, then, that polit-
surprised, but the good times that had be-
ical campaigns-increasingly manned by
gun in President Reagan's third year in of-
young consultants in their 20s and 30s-run
fice just kept rolling in the eight years of
slam-bang negative ads. "People expect
George Bush.
works." it," says Mr. Bailey. "That's what
In the 1996 campaign, Mr. Quayle, his
hair gray and his voice an octave lower
More than 50% of American households
than it had been eight years earlier,
already have cable TV, and it won't be
pointed to the Republican administration's
long before nearly everybody is wired.
undisputed success in managing the econ-
With dozens of channels from which to
omy. Indeed, the budget deficit, once
choose, politicians will be able to target
thought to be an insoluble problem, had
their TV ads as they target their direct
slowly melted away in the placid Bush era.
mail. They can reach kids on MTV, the
Unemployment never exceeded 5%, infla-
rock-video channel; evangelical Christians
tion leveled off at 3% and short-term inter-
on the Family Channel: environmentalists
est rates held steady at 6%.
on the Discovery channel. The possibili-
ties are endless.
It worked. With the Democrats once
again unable to nominate a centrist candi-
On the surface, the Democrats appear
date-they turned to a liberal supported by
to be in the worse position to deal with this
Washington's Mayor, Jesse Jackson-Mr.
political New Age. Indeed, they haven't
Quayle swept 45 states. Republicans won
done so hot in the old one. Having lost five
control of the Senate but oncè again
of the past six presidential elections, they
couldn't capture the House.
seem content to wait for the Republican
1062
*
*
*
House. crash that would propel them to the White
Chances are, neither of these scenarios
will be borne out by events. Predicting the
"What they [the Democrats) ] need is a
course of American politics is a loser's
Please Turn to Page A4, Column 1
game. Still, certain broad, persistent
forces suggest the directions American pol-
MAY 5 1989
itics may well take as the next millennium
draws near.
Political Futures: White Middle Class and Economy
Will Tell the Tale for the Two Parties in the 1990s
Continued From First Page
minority voters. But it also knows that the
party, the GOP must retain the White
really good Republican recession; says A.
route back to power lies with the middle-
House and find ways to defeat incumbent
James Reichley of the Brookings Institu-
class majority-voters who have been des-
House Democrats. With Democratic disar-
erting it on the presidential level
ray, and a strong Bush-Quayle perform-
tion. Says: William Schneider, a political
analyst at the American Enterprise Insti-
The foremost advocate of the first
ance, they may extend their White House
tute: "There's nothing wrong with the
course, the Rev. Jesse Jackson, argues in
lease, but there is no sign they know how
Democratic Party-that 10% unemployment
essence that white working-class and mid-
to seize Congress. Trivia question: Who
dle-class voters who switched to Mr. Rea-
was the last GOP speaker of the House?
won't cure.
gan in 1980 and 1984, and in somewhat
Answer: The late Joe Martin of Massachu-
Perceived Defects
fewer numbers stayed with Mr Bush in
setts in 1953 and 1954.
But the Democrats need more than
1988, are beyond reach
Along Came Watergate
that. They need basic changes in the way
Going for the Unregistered
they do business. They need a credible
The Republicans showed signs of ascen-
leader. William A. Galston, a professor of
"Democrats have a better shot with un-
dance in the 1960s. The time for realign-
public affairs at the University of Mary-
registered, indifferent voters than they
ment was actually at hand in 1972. Demo-
land, says, "Over the past two dec-
have with registered voters who already
crats already had begun to switch-Gov.
ades, at least at the presidential level, too
have an opinion," says Willie Brown, the
Mills Godwin in Virginia, for example, and
many Americans have come to see our
speaker of the California Assembly and an
John Connally of Texas. White House lob-
party as inattentive to their economic in-
ally of Mr. Jackson most of the time.
byist William Timmons carried a little
terests, indifferent if not hostile to their
"First of all, I'd register every unregis-
black book full of names of Democratic of-
moral sentiments and ineffective in de-
tered person with an ethnic background,"
ficeholders ready to change parties in
fense of their national security."
he says.
1973.
Yet, opportunity surely does beckon. If
That view is disputed by other Demo-
Then came Richard Nixon's Watergate,
the Democrats could reorder their house, if
crats, for the most part white and middle
and hopes were dashed "The Republicans
they could nominate a middle-of-the-road
class. They point to a study by political an-
had their chance," says Mr. Phillips,
candidate, they could win, maybe even
alyst Ruy A. Teixeira showing that even if
whose 1969 book "The Emerging Republi-
without a hair-curling GOP recession.
blacks and Hispanics had turned out in
can Majority" was the GOP strategic bi-
"The future bodes well for the Demo-
much larger numbers than they did in
ble. Now, he says, "it's too late." That
crats," says GOP pollster Vincent J. Breg-
1988, Gov. Dukakis still would have lost the
view isn't shared at the National Republi-
lio.
presidential election.
can Congressional Committee or the Re-
It is a different situation for the Repub-
Mr. Dukakis's problem, says Mr. Teix-
publican National Committee, where in-
licans. Ronald Reagan came to Washing-
eira, wasn't turnout, it was "his overall
tense efforts are under way to win more
ton with a conservative agenda, saw much
level of support among the population.'
House seats.
of it enacted in his first term and when his
He sees little evidence that Democratic
The challenge is staggering. In 1988,
time was up went home to California with
registration drives have had much effect.
only six of 408 incumbents who sought re-
the nation's good wishes. Mr. Bush doesn'
election to the House were defeated, and
Upper-middle-class white liberals and
claim to have come to office with an
most of the losers were ensnarled in ethics
minorities don't make a political major-
agenda of his own.
ity," says Mr. Schneider, the political ana-
problems. The moral: House members get
It is time for the Democrats to set their
lyst. "The Democrats need the white mid-
re-elected unless they are in prison or on
own agenda. Michael Dukakis had a
dle class."
the way there.
chance to do that in 1988 as their nominee
Incumbents insulate themselves with
With a pragmatic, hold-the-line presi-
for president, and he blew it. The theme
big bank accounts fed by political-action
dent in the White House, Republicans can
John Kennedy used SO successfully three
commitees, through servicing constituents
only hope the Democrats continue to
decades ago-"Let's get America moving
and by backing away from controversies
dither, and that their nominating process,
again" waiting for Democrats now.
that stand to lose them votes back home.
which favors liberal activists, continues to
The system isn't particularly conducive to
'Party of Growth'
produce candidates who can't be elected.
statesmanship.
Economic populism is a strong issue
With nominees like Gov. Dukakis, the
Campaigning is becoming increasingly
for the Democrats, says the Republicans'
GOP's sophisticated media regiments can
sophisticated, also shallower and rather
Mr. Breglio. Ted Van Dyk, a Democratic
be rolled out again to blast the Democrats
shabby. By most accounts, things are
theorist, doesn't disagree: "The first thing,
for their views on family values, defense,
likely to get worse. The TV clutter means
we must identify our party as the party of
patriotism. "It is an artificial way to main-
that the shelf life of ideas is reduced and
economic growth."
tain the old cohesion of the Republican co-
people are less durable. TV treats a sub-
It is the way Democrats can appeal to
alition," says Kevin*Phillips, the GOP the-
ject briefly-assault weapons, to cite a re-
the white middle class, where the battle
orist. "It is totally phony, and it may not
cent example-and then moves on. People
for political primacy will be fought be-
work a second time." But that doesn't
make up their minds faster, then change
tween now and the year 2000. Trouble is,
mean Republicans won't try.
them readily.
the Democrats remain so divided that once
"Our biggest fear," says Mr. Breglio,
Most of all, says Mr. Bailey, the Hotline
again they may not be able to take advan-
the GOP poll taker, "is that the Democrats
publisher, "people get bored faster."
tage of their opportunities.
surface with a leader who is able to capi-
They have a major question to resolve:
talize on the theme of economic populism
Where should they look for more votes?
and at the same time avoid the special-in-
The party's heart tells it to stake its future
terest commitments that SO often wreck
on the have-nots, registering and trying to
Democratic candidates."
turn out large numbers of black and other
To become truly the nation's dominant-
272
THE
SECOND
CENTURY
THE WALL STREET JOURNAL.
100 THE WALLSTREET
MILESTONES
1882 - Charles H. Dow and Edward D. Jones form a financial news agency in New York City.
They are joined early on by a third partner, their former colleague at the Kiernan News Agency,
Charles Bergstresser. Since Dow Jones & Bergstresser didn't sound quite right, the partners
agreed to call their firm Dow Jones & Company.
1883 - Dow Jones & Company begins publishing The Customers' Afternoon Letter, a precursor to
The Wall Street Journal.
July 8, 1889 - The first edition of The Wall Street Journal, a four-page afternoon newspaper,
selling for two cents a copy, is published. Charles Dow is its first editor and the paper features his
innovative "Average" of 11 stocks.
1898 - A morning edition of The Wall Street Journal is introduced, to complement the evening
edition. Subscription price for each issue is $8 a year. Circulation will exceed 10,000 by the turn of
the century.
1902 - Clarence W. Barron, a financial journalist and publisher, purchases Dow Jones &
Company. His wife, Jessie, takes an active role in managing the company.
1922 - Kenneth C. "Casey" Hogate, a young newsman who attended DePauw University in
Greencastle, Ind., is named managing editor of the Journal a few years after he is hired. He later
becomes chairman and chief executive officer of Dow Jones.
1929 - Twenty-year-old Bernard Kilgore, another DePauw graduate, is hired by Casey Hogate as a
copy editor in New York. Barney, who would always refer to himself as a newspaperman, would
go on to be a reporter, Washington correspondent, political columnist, managing editor, general
manager, president of Dow Jones at age 36, and later chairman. He changed the Journal from a
small financial newspaper into the country's only national daily.
Oct. 21, 1929 - The Pacific Coast Edition of The Wall Street Journal begins publication in San
Francisco and Los Angeles, a week before the October stock market crash. In the ensuing
Depression, Journal circulation will fall to 28,000 from 50,000.
1934 - The evening edition is discontinued and an improved morning edition sees the birth of the
popular What's News column on page one.
(more)
Dow Jones & Company, Inc., Publisher of The Wall Street Journal
200 Liberty Street, New York, NY 10281
-2-
1941 - Barney Kilgore is named managing editor, succeeding William H. Grimes, who becomes
editor. Kilgore will shape the paper's present-day approach to reporting and writing business and
general news: Business news isn't just financial information, Kilgore believes, it is also
everything related to earning a living, including trends and issues that shape society. He
envisions a newspaper that serves a national audience in which a reader in Portland, Ore., has
the same information needs as one in Portland, Maine.
Dec. 8, 1941 - The day after the bombing of Pearl Harbor, the Journal runs its first and only
page-wide banner, a three-line headline over stories detailing how the nation would gear up for
war.
1942 - William Kerby is named managing editor of the Journal. He will become chairman of Dow
Jones in 1972.
1947 - Journal circulation reaches 100,000. Warren H. Phillips, present chairman of Dow Jones, is
hired by the Journal as a copyreader.
1948 The Southwest Edition of The Wall Street Journal is published in Dallas.
1951 - The Wall Street Journal's Midwest Edition, its fourth regional edition, is published in
Chicago.
1953 - The Saturday edition of the Journal is discontinued.
1957 - Warren Phillips becomes managing editor of The Wall Street Journal.
1958 - Vermont Royster is named editor of the editorial page.
1962 - The Journal plant at Riverside, Calif., produces the first regularly and commercially
printed facsimile newspaper in the nation.
1966 - The Journal's paid circulation figure passes the one million mark.
1972 - Warren Phillips is named president of Dow Jones and William Kerby chairman.
1974 - A page of the Journal's Eastern Edition is transmitted from a makeshift earth station in
Chicopee, Mass., to South Brunswick, N.J., via a satellite 22,300 miles above the Atlantic, a first
for any U.S. newspaper.
1974 - Selected Journal stories are published electronically by Dow Jones News/Retrieval.
1975 - An entire edition of the Journal is sent by satellite to Orlando, Fla., from Chicopee. The
Orlando newspaper printing plant is the first in the world built to operate exclusively via a
communications satellite transmission system.
Sept. 1, 1976 - The Asian Wall Street Journal -- the first edition published outside the U.S. -- starts
up in Hong Kong.
1979 - The Journal becomes the largest-circulation U.S. daily. The Journal also starts its own
private delivery system, the National Delivery Service, Inc., which today handles more than 50%
of subscriptions.
(more)
-3-
June 23, 1980 - The Journal begins publishing in two sections.
1981 - The Journal's circulation rises to two million.
Jan. 31, 1983 - The Wall Street Journal/Europe is launched.
May 20, 1985 - The Journal introduces The Wall Street Journal Reports, in-depth coverage of
specific subjects, in tabloid-size format.
1986 - A Times Mirror/Gallup poll finds the Journal to be the country's most trusted publication.
1987 - The Journal launches demographic advertising to better target local markets.
Oct. 3, 1988 - The Journal begins publishing in three sections.
1989 - The Wall Street Journal celebrates its centennial year.
#
Mr. Bush makes no apologies for his
/OF2
SOUIET, GEN(CIA)
sense of noblesse oblige. "Listen," he says,
To George Bush,
"I believe in it. It
was inculcated in me
Seeking Presidency
by my father. My
kids believe in it.
Continued From First Page
Maybe it has eroded
king, former ambassador to the UN, former
Seems Almost a Duty
in this country, but
CIA director, former Republican national
DEF-WEAPONS
with me and with my
chairman in the darkest Watergate days. He
family it is tradi-
performed all of those jobs with ability, if
Conservative Views and Sense
tional."
not always brilliance.
Anyway, Mr. Bush
"In most of the jobs George has had, he
Of Noblesse Oblige Drive
argues, he isn't a typ-
couldn't speak out with candor: he was re-
The 'Former Everything'
ical product of the old
quired to be discreet," Mr. Keene says of
Eastern establish-
his boss, who no longer holds any govern-
P.I PARTIES-REFUB.
ment. "I'm not living
ment post. "We're just getting out of that
By JAMES M. PERRY
off my inherited
now. George has got to tell people what he
Staff Reporter of THE STREET JOURNAL
wealth. I left the East
really thinks."
GREENWICH, Conn. - "Poppy" had
and went to Texas
So far, because of his background, Mr.
come home to the Greenwich Country Day
and founded my own
Bush has been speaking almost entirely
School 50 years after he finished its first
(oil-equipment) com-
about foreign policy, even though polls show
grade.
pany. I built what I
that only 3% of the Americans rate foreign-
"Those who go to fine private schools
have. Of course I had some help. Basically,
policy questions as critical to their personal
like this," he told the graduating ninth-
though. I did it on my own."
concerns.
grade class of 34 boys in blue blazers and
And he says he knows he can't win the
The year he spent as head of the Central
white ducks and 36 girls in long white
nomination with people who call him
Intelligence Agency was an intense, even
dresses, "have a disproportionate obligation
"Poppy."
"searing," experience, according to people
to put something back into the system."
"Listen," he says, "I know the old
close to Mr. Bush. He says his CIA assign-
"Poppy" is George Bush, a 55-year-old
WASPs don't swing much weight in the Re-
ment fortified his belief that the Russian
man with a deep sense of noblesse oblige
publican Party these days."
challenge is dangerous.
and a strong desire to win the Republican
His chief problem seems to be that peo-
presidential nomination. "Bar" is his wife,
ple-including people close to the candidate
What he says now about foreign policy is
Barbara. "Gam" is his mother, the redoubt-
himself-wonder if he has enough to offer in
generally tough and conservative.
able widow of U.S. Sen. Prescott Bush.
the way of solutions to the nation's problems
Against SALT
"Pressy" is one of his brothers. "C. Fred"
or much idea of just what he wants to do as
He opposed the Panama Canal treaties,
is the family cocker spaniel.
President.
and now he opposes the SALT II treaty with
"Poppy" Bush-he picked up the nick-
In his declaration of candidacy, back on
the Soviet Union.
name when he and "Bar" had their first
May 1, Mr. Bush said he wasn't promising
"Can we catch the Soviets if they try to
child-carries the tattered flag of what is
"a new deal" or "a new foundation." What
cheat?" he asks. "The answer," he says, "is
left of the old Eastern establishment of the
he was offering, he said, was "a new can-
ominous for the United States. The fact is
Republican Party. But unlike his predeces-
dor." His own aides mutter privately that it
that under this treaty we are virtually un-
sors-men like Thomas Dewey and Nelson
isn't a very striking theme.
Rockefeller, even old Prescott Bush -
He hasn't been forceful in outlining his
with able to monitor whether the Soviets comply
its
terms.
When it comes to verifi-
George Bush is no liberal, not even a moder-
positions on the major issues facing the
cation of SALT II, Jimmy Carter will ask us
atei He is running pretty much as a stan-
country, and admits it. "There is room for
to trust the Soviets as he once asked us to
dard conservative, which is one reason his
improvement," he says. "I will pull the is-
trust him. But I say
that
a
staff thinks he has a shot at the nomination.
treaty
that
sues together a little tighter this summer. I
cannot be verified tomorrow shouldn't be
Skull and Bones
will come out in the fall with specific posi-
ratified today."
Socially and culturally, though, he is a
tion papers-but I will not make up a list of
If the Senate rejects the treaty, Mr. Bush
splendid example of the old Eastern WASP
400 promises. Jimmy Carter did that, and it
says he believes the United States and Rus-
establishment. The credentials are impres-
has become a problem for all of us."
sia will return to the bargaining table,
sive: Country Day, Andover, youngest pilot
David Keene, Mr. Bush's field director,
"where they can hammer out an agreement
in the Navy, Yale (where he was Phi Beta
has a theory to explain his candidate's cau-
that is acceptable to both sides." Anyway,
Kappa, Skull and Bones, captain of the base-
tion in dealing publicly with issues and
he says, the Soviets already are spending all
ball team and president of the senior class).
themes. Mr. Bush is the former-almost-ev-
they can for defense-they've "pushed the
The young, nonestablishment members of
erything-former member of Congress (two
throttle to the fire wall"-so they can't esca-
late the arms race much more.
his staff are slightly in awe and a little non-
terms, from Texas), former envoy to Pe-
plussed by their candidate's background of
He deplores the cancellation of the B1
Please Turn to Page 24, Column 1
old wealth and easy social grace. They look
bomber and the decision not to build a big
JUL 6 1979
at that background, if not at "Poppy" him-
nuclear aircraft carrier. He wishes the U.S.
self, as one might look at a relic in a mu-
had more tanks, and he favors speedier de-
seum.
ployment of the MX missile and a full go-
"I wish somehow we could get away
ahead on the neutron bomb. He attacks the
from all of this 'Poppy' business," says one.
Democrats for "slashing" the defense bud-
of Mr. Bush's principal aides. "The old
get. Minutes later, he decries government
WASPs that used to run this party are a
spending and calls for a big tax cut and a
burned-out elite. The first thing we should
limit on the growth of the federal budget
do in this campaign is get rid of everyone
(though he opposes a constitutional amend-
who calls our candidate 'Poppy.'
ment to balance the budget).
"What are you for?" a retired farmer
asked Mr. Bush at a coffee session in an old
farmhouse in Hollis, N.H. "I'm for a strong
country and a sound free-enterprise econ-
omy," he replied.
20F2
For a Tax Cut
Pressed harder, he says he's for limits on
the growth of the federal budget, a sharp re:
duction: in government regulation of busi-
ness, a phase-out of some of the social pro-
grams dating to the Kennedy-Johnson years,
a supply-oriented energy program including
oil-price decontrol and a "windfall-profits"
tax with a strong "plowback" provision to
encourage oil development, and a sharp tax
cut to move the economy forward.
A curious fact is that although the cost of
energy-and its availability next winter-is
the single most pressing concern to New
Englanders, almost no one during a recent
New Hampshire trip asked Mr. Bush what
he would do about it.
In his only important recent speech about
domestic policy, he said that "the United
States must devise an emergency energy
program as broad in concept and grand in
scale as the landing on the beaches of Nor-
mandy." He said the President "should con-
vene a domestic summit conference that
brings together leaders of government, of in-
dustry, of academe, of consumer interests,
of farming and others," and they should
work out solutions.
Chief Foe: Baker
As for New England, he favors-if any
one should ask-a regional petroleum re-
serve of 20 million barrels of oil as insur-
ance against another oil embargo and im-
mediate enactment of legislation giving tax
credits for wood-burning stoves and fur-
naces.
Mr. Bush says he needs more time to de-
velop detailed positions on the issues, and of
course he's still far behind in the race. But,
he promises, "I will always be working
harder than anyone else. I want to be Presi-
dent more than anyone else."
As voters begin to focus on the election,
he expects them to discover that Ronald
Reagan is too "old," former Texas Gov.
700
John Connally too "slippery," Kansas Sen.
Bob Dole too "mean," Rep. John Anderson
of Illinois too "liberal" and Rep. Philip
6
Crane, also of Illinois, too "conservative."
That will leave Mr. Bush
and Sen. How-
ard Baker of Tennessee. Mr. Baker, the
1979
Bush people concede, is the man they're
competing against most directly.
"Poppy" Bush admits it's a long road.
But he says he has the organization. He
seems to have enough money. He has that
sense of duty instilled in him by his father
and by his teachers almost half a century
ago at the Country Day School. "The strat-
egy is clear," he says. "Now I have to show
something."
THE WALL STREET JOURNAL. DOW JONES & COMPANY, INC.
Publishers
1025 CONNECTICUT AVENUE N.W.
SUITE 800
WASHINGTON, D. C. 20036
ALBERT R. HUNT
WASHINGTON BUREAU CHIEF
June 16, 1989
Mr. Bob Simon
Old Executive Office Building
Room 111
Washington, D.C.
Dear Bob,
Here's basic background material for next Thursday's dinner.
Also enclosed are three of the Centennial front-page pieces we did
- a good representative sample. Also for your information, two
other pieces, one, a twenty year old piece we did on China's
breaking up into thousands of little pieces which has kind of been a
satire of the Journal's tendency to sometimes overreach; maybe it
was prophetic after all. Two, a piece that Jim Perry wrote ten
years ago, in which he first told the world about the President's
nickname "Poppy." Bush has teased Perry about it ever since.
Best.
e
P.S. (cll this efternoor it d cel
help Cngmon.
THE
SECOND
CENTURY
THE WALL STREET JOURNAL.
100 THE STREET JOURNAL
For Immediate Release
Contact: Taggarty Patrick (212) 416-2616
LEADING THE WAY IN NEW TECHNOLOGY
The Wall Street Journal grew from a small, rather provincial financial newspaper serving
lower Manhattan to the first national daily paper in the U.S. by being a technological innovator as
well as a publisher of quality journalism.
Today, aided by its pioneering efforts in the use of satellite technology, the Journal produces
more than two million copies of the newspaper daily at 18 locations in the U.S. In addition, five
plants overseas print the Journal's sister editions, The Asian Wall Street Journal and The Wall
Street Journal/Europe.
After a modest beginning in 1889 and difficult years in the Depression, the Journal grew
rapidly after World War II. In 1947 circulation reached 100,000. The paper began printing a
Southwest edition in Dallas in 1948 and a Midwest edition in Chicago in 1951, supplementing
editions published in New York and San Francisco.
To print papers with nearly identical news content in four different locations was a
challenge. But one important breakthrough came in 1953, when Journal engineer Joseph J. Ackell
introduced his invention, the Electro-Typesetter. In New York, reporters' stories were retyped onto
coded, perforated tape and fed into a "reader," which, in effect, converted the stories into electrical
impulses that were sent by telephone lines to Journal plants in Chicago, Dallas and San
Francisco. There, the impulses were converted into more perforated tape, which was fed into
Ackell's Electro-Typesetter, or ETS. The ETS then activated the keyboards of linecasting
machines, which set the stories in type.
Next, in 1962, the Journal pioneered the use of microwave facsimile printing. Using this
system, the Journal's composing plant in San Francisco could scan each printed page of the paper
with a beam of light and convert the images to electrical impulses. Those impulses were then
sent by coaxial cable and microwave transmitters to a printing plant in Riverside, Calif., where
the signal was recorded as a photo negative that was then turned into a printing plate. The result
was identical papers in Northern and Southern California.
(more)
Dow Jones & Company, Inc., Publisher of The Wall Street Journal
200 Liberty Street, New York, NY 10281
-2-
But microwave transmission was only economical over shorter distances, and a better way
to transmit Journal pages was needed. By the early 1960s, the U.S. was actively launching
communications satellites into space, and Dow Jones began examining whether the technology
could help produce the Journal. A decade later, on Aug. 30, 1974, a page of the Journal's Eastern
Edition was transmitted from a makeshift earth station at its Chicopee, Mass., plant via a satellite
22,300 miles over the Atlantic Ocean to a plant in South Brunswick, N.J. It was the first time a page
of a newspaper had been produced using a satellite.
On Nov. 19, 1975, the Journal entered the space age to stay when an entire edition of the paper
was transmitted by satellite from Chicopee to a plant in Orlando, Fla. Today, the Journal and
many of Dow Jones' other publications are printed in plants connected by a satellite network
completely owned and maintained by Dow Jones that permits transmission of a Journal page
between plants in 30 seconds. This same satellite technology is used to produce the Asian and
European editions.
The Wall Street Journal's tradition of innovation in printing also has led to new
information services for Dow Jones, such as Dow Jones News/Retrieval, the company's electronic
publishing service. Introduced in the mid 1970s, News/Retrieval is now the nation's leading
interactive supplier of business and financial information.
#
Inside The Wall Street Journal
slakable thirst for revenues. It will give final approval to the massive,
falsely labeled, 'windfall-profits tax. ,
In his conclusion Bartley wrote:
President Carter conceived the brilliant idea of removing price controls on
domestic crude oil but taxing away most of the added revenues that he pre-
sumed would flow from letting prices rise above the ceilings. The DOE
[Department of Energy] bureaucracy found ways, as we noted in this col-
umn yesterday, to preserve and expand its power even after decontrol.
The oil revenues tax Congress will pass today-again barring some last-
minute conversion-will combine with raging inflation to run the American
crude oil production industry into the ground. It will solidify OPEC's grip
on oil prices, leave us politically and militarily exposed from further depen-
dence on imported oil, drain huge funds out of the savings/profit pool needed
to stimulate investment and productivity, and increase the incentives for in-
flationary money creation. To find a similarly destructive single piece of
legislation, you have to hark back to the Smoot-Hawley Tariff, which helped
throw the world into the Great Depression.
Carter was so furious at the editorial, a White House aide reported,
that he stopped reading the Journal.
On election day, November 4, 1980, Bartley wrote "Carter II?"
The Wall Street Journal had abandoned its long-standing policy of
not supporting any political candidate.
Clearly the next president will be severely tested no matter which candidate
wins, and there is no guarantee that either could cope successfully. But the
tests will be difficult enough without all of the baggage Mr. Carter acquired
during his first stumbling term. If he is inaugurated again in January, he will
have to deal not only with the nation's problems but with a long list of
enervating distractions that would sap his ability to lead and govern.
The following day, in celebration of Ronald Reagan's landslide
victory, Bartley concluded his editorial:
The stakes here are enormous; if the Reagan administration fails, the nation
will not have this opportunity soon again, and will likely lurch in directions
quite the opposite of what Mr. Reagan intends. But the opportunity is equally
great. If Mr. Reagan can manage the government and make his policies
work, we will look back on Tuesday's election as the start of a new era for
the nation and the world.
300
Speaking on the Presidency
Reagan's Conservative Attraction
At the end of 1980, Bob Bartley's "Review & Outlook" column
promised its readers that with "a bit firmer hand at the tiller [Rea-
gan], the American nation will right itself."
Then, on January 8, just eleven days before his inauguration,
President-elect Reagan wrote a lengthy Journal essay. He noted that
the United States stood alone among industrialized powers "in the
adversary nature of the relationship between its government and the
business-industrial sector."
Mr. Reagan urged a unity, a collective spirit to overcome this
attitude:
The nation belongs to all of us. To solve our problems we need the help
and talent of a wide range of well-motivated Americans. The business and
industrial sector has a vital stake in this process and we shall look to it to
provide men and women for both short-term government careers and vol-
untary assignments, to help us put our nation on the proper track.
Bartley's inauguration day message to Journal readers was
optimistic:
Today we will start to learn, embarking with Mr. Reagan on a new experi-
ment and a new adventure. He has the ideas and the mandate, and if he can
actually bring them to pass and make them work, it will seem one great
stroke of dramatic plotting. For if this happens, our 40th Presidency will
have been a historical watershed.
The next morning-January 21, 1981-Bartley called on Mr.
Reagan to renounce the deal made by former President Carter with
Iran:
bargaining with human lives against money and contracts, has an un-
fair advantage. We should not hesitate to make it clear that an agreement
negotiated under such conditions is worthless and equally clear that anyone
who attempts the same thing in the future will not be treated so gently.
The editorial reiterated Bartley's previous suggestions (which had
not been followed) of immediately reducing the difference between
investment income, taxed at rates of up to 70 percent, and labor in-
come, taxed at a maximum of 50 percent. It also expressed regret
301
REET
JOURNAL
WHITE HOUSE LIBRARY
AND
RESEARCH CENTER
Company, Inc. Rights Reserved.
NOVEMBER 9, 1988
WHITE OAK, MARYLAND
50 CENTS
Factory Shipments
Tax Report
Shaky Mandate
In billions of dollars.
A Special Summary and Forecast
Bush's Clear Victory,
$230
Of Federal and State Tax
Less Than Resounding,
220
Developments
210
Bodes Conflict Ahead
200
TAKE YOUR PICK of replacement stock,
back
the IRS tells a theft victim.
190
A brokerage-firm employee stole stock
Heavily Democratic Congress
for a
180
belonging to a woman we'll call Felicity.
surge
1986
1987
1988
The firm reimbursed her in cash at market
Suggests Big Tug of War;
0 con-
value-giving her a big gain. Luckily, a vic-
uplete,
FACTORY SHIPMENTS fell in Septem-
tim of an "involuntary conversion" of assets
Cabinet Takes Shape Soon
apture
ber to $221.41 billion after seasonal adjust-
into cash can avoid tax on a gain by putting
in the
ments, from a revised $221.72 billion in Au-
the proceeds into property similar or related
more
gust, the Commerce Department reports.
in service or use to the lost property. That
WillDarmanGetBudgetJob?
ctory.
generally means similar physically, but for
ngress
investments, it refers more to factors of risk
ation's
Black Colleges Turn
and management.
By JAMES M. PERRY
rty an
Felicity didn't want to have to invest in
And GERALD F. SEIB
In New
ocratic
Increasingly White
identical stock, SO she asked the IRS if she
Staff Reporters of THE WALL STREET JOURNAL
could broaden her horizons. Now private rul-
WASHINGTON - Republican George
lenges.
A24)
In a Fight to Survive
ing 8841019 agrees to her request that she be
Bush held on against a late surge by Dem-
allowed to replace the stock with any pub-
ocrat Michael Dukakis for a clear electoral
mtest
licly traded common, preferred, or convert-
victory but missed rolling up a massive tri-
ted a
ible preferred of U.S. companies, common
umph in the popular vote.
oters
Anger Clouds One Campus,
of foreign companies traded on U.S. mar-
Mr. Dukakis, campaigning finally with
presi-
But the Cosbys' Huge Gift
kets, or publicly traded shares of U.S. mu-
fervor, managed a respectable showing by
Wall
tual funds.
recent Democratic standards, carrying
Cheers an Atlanta School
For replacing investments, notes
such varied states as New York, Oregon,
Robert Willens of Shearson Lehman Hut-
Minnesota and Wisconsin. With returns
ton, the IRS doesn't distinguish between
still incomplete, it looked as though Mr.
Walesa
S.
By RACHEL SWARNS
securities involving comparable risk and
Bush would win about 53% to 54% of the
n strike
Special to THE WALL STREET JOURNAL
management.
popular vote and pile up 350 or more elèc-
he War-
JEFFERSON CITY, Mo.-Lincoln Uni-
toral votes. He needed 270. By contrast,
IRS MANAGEMENT needs all the help it
President Reagan in 1984 won 59% of the
f the big
versity was founded here in 1866 by black
lidarity.
veterans of the Civil War. Their dream
can get to collect $1 trillion a year.
popular vote and 525 electoral votes.
was to educate future generations of black
As tax revenue nears that sum, a broad
0 return
Mr. Bush and his running mate, Sen.
smaller
youths in a setting that celebrated black
study by the General Accounting Office says
Dan Quayle of Indiana, will take office
achievement and potential. For about a
IRS managers soon must find long-term so-
arning,"
without a mandate
bugh for
century, that dream was a reality.
lutions to critical problems. But to succeed,
I talks to
the GAO adds, the IRS needs support from
or a strong signal
But today, more white students than
that voters are en-
future.
blacks stroll the hilly, picturesque campus
administration budgeters and Congress. The
et with
here. Whites have come to dominate the
most urgent challenge is to update obsolete
amored of Republi-
ipyard
faculty. In recent years, Lincoln has had to
computer systems, the GAO says. Others: to
can policies. Those
same voters sent an-
ned to
cancel some black-studies courses because
attract and keep better workers and man-
pread.
of a lack of student interest and a shortage
agers, bolster financial-system manage-
other key signal by
of qualified teachers.
ment, create a work atmosphere of "qual-
leaving Congress
ity," and control field operations better.
solidly in the hands
Lincoln has become increasingly
e 11 de-
of the Democrats.
strapped as black enrollment has declined.
Among many recommendations, the
political
Mr. Bush won this
Many other black colleges also are suf-
study proposes to create the posts of deputy
eign Min-
commissioner for technology and chief fi-
election without any
fering, though they hope that actor Bill
t was the
coattails.
Cosby's $20 million gift to a black women's
nancial officer. Noting the IRS's inability to
ilin about
The Democrats'
college may spur more gifts.
compete with the pay levels of business, the
hancellor
To keep its doors open, Lincoln has had
study says something must be done to en-
George Bush
improved perform-
DW would
ance in the presi-
to recruit white students-and it has been
able the IRS to hire top professionals and to
ir end.
keep the many senior executives who plan to
dential election-Mr. Dukakis carried
successful. Cost-conscious commuters, at-
tracted by the school's convenient location
retire in the next few years.
more states than the party's standard-
red a hos-
bearer in either 1980 or 1984-and their
and its tuition, are flocking to Lincoln.
determine
Identity Crisis
TAX TREATIES retain some clout that
powerful showing in the Congressional
A spokes-
businesses feared they would lose.
elections may force the new administration
said Sak-
But the shift in the racial mix arouses
The tax bill awaiting the presidential sig-
to move with caution on Capitol Hill.
rip to the
feelings of bitterness in many blacks at
nature provides that neither a tax law nor a
Although the Democrats avoided the
He is be-
Lincoln. "Those black soldiers gave the
tax treaty takes general precedence over
drubbing they had been expecting, they
eral years
money they earned to promote black edu-
the other. If that doesn't seem exciting,
have now lost five of the last six presiden-
orky.
cation, and now it's being taken over by
well, it's worth two cheers to multinational
tial elections.
whites," complains Mia Marshall, who is
businesses, says Robert T. Cole, a Washing-
Mr. Dukakis conceded' defeat at his
ar an Air
majoring in criminal justice. Says Gloria
ton lawyer. That's because the House: bill
campaign headquarters in Boston at 11:20
Pentagon
Robinson-Lewis, a gerontology researcher:
would have given tax law precedence unless
p.m., saying he had called Mr. Bush in
ut the Air
"I just don't have a lot of hope about the
Congress specified otherwise. The result
Houston to congratulate him on his victory.
rs ejected
direction Lincoln is going, because I see
doesn't warrant three cheers, Cole adds, be
He compared the campaign to the Boston
of a B-1B
little historically black influence."
cause it appears to weaken the past prefer
Marathon. "We reached Heartbreak Hill
members
The pressures on Lincoln are part of a
ential status of treaties.
and then we found the strength to make
crash.
much broader pattern. White enrollment
Businesses are concerned about not over-
that final kick." The headquarters crowd
at the nation's 104 historically black insti-
riding treaties because treaties provide re-
interrupted him with chants of '92.
nediate ex-
tutions has been climbing for years. White
ciprocal benefits; businesses feel Congress
'92.''
risoners of
students first began enrolling in black
worries too much about treaty breaks for
Bentsen's Victory
le first tan-
schools in significant numbers in the 1970s,
foreign investors here and neglects the bene-
as schools undertook efforts to desegregate
In Austin, Texas, Mr. Dukakis's running
ace talks in
fits that U.S. companies gain overseas.
ffect in Au-
their campuses. In recent years, black
mate, Sen. Lloyd Bentsen, declared the
Whether a conflicting law or treaty clause
schools have looked to white students to fill
Democratic ticket "waged a campaign
e should be
takes precedence will be determined now by
seats left empty by blacks.
that's worthy of the American people. We
Red Cross.
longstanding rules that account for such fac-
Within the next decade or so, the Amer-
told you the truth and we stepped up to
tors as which came last.
d inconclu-
ican Council on Education, a nonprofit ad-
those issues." Mr. Bentsen was able to
The bill also requires disclosure on
vocacy group, predicts that many black
manage a celebration of his OWH: He was
entatives of
returns when taxpayers take the position
easily re-elected to the Senate.
A2
THE WALL STREET JOURNAL WEDNESDAY, NOVEMBER 1988
A22
THE WALL STREET JOURNAL W
REVIEW & OUTLOOK
Remembra
Jim Wright's Mandate
By HELEN KRELL
t]
It was shortly after midnight, 50 years
c
ago tonight, when the phone rang in my
a
The Democrats have a fallback po-
political honeymoon?" asks one Dem-
parents' bedroom in Breslau, Germany. I
t
sition in terms of national power, if
ocratic Congressman. "There won't
knocked at the bedroom door, and Father
C
the presidency is lost again for the
even be a first date."
said the security company had just called
foreseeable future. Jim Wright, the
Though it might surprise him, a
to say there were certain "irregularities"
(
Speaker of the House, will form basi-
President Dukakis would face essen-
that prevented them from keeping a watch
cally a congressional government. He
tially the same problem. In Speaker
over our store. Father turned pale.
will have his own agenda, he will have
Wright he would not be dealing with a
It was Kristallnacht, the Night of the
his own administration, and you're go-
conventional adversary who respects
Broken Glass-the first large-scale vio-
lence against the Jews of Germany and
ing to see a whole list of issues piled
the powers of the executive. Chris
Austria, when the Nazis smashed the win-
many of them resembling the Du-
Matthews, administrative assistant to
dows of Jewish-owned shops, firebombed
kakis campaign.
then-House Speaker Tip O'Neill from
synagogues, murdered scores of Jews and
Columnist Chris Matthews, for-
1980 to 1986, told us that Jim Wright is
arrested several thousand more.
mer chief aide to Tip O'Neill, in a
a different kind of Speaker from Mr.
Our store was three blocks down from
télevision interview.
O'Neill. "Tip believed Congress
our apartment, on the opposite side of the
should serve as the opposition if the
street. Father leaned out the front window
Conveniently, Jim Wright doesn't
to see if he could detect anything, but our
have to wait until the votes are
White House was held by another
store lights had been turned off at mid-
counted to declare his mandate. None
party," he says. "Jim Wright says
night. It was cold and Father started to
of this business about debating the is-
Congress was created by Article I of
close the first set of our double windows.
sues or letting the voters decide any-
the Constitution. Therefore, he views
Just then a big black limousine pulled
thing. These words are written as
Congress as the first branch of gov-
up across the street, a shrill whistle
Americans go to the polls, but the out-
ernment, and thinks Congress should
sounded and several SS men got out. We
come of the House elections are al-
try and govern."
could hear the clicking of their boots and
ready known. Incumbents win, and
And the gerrymandered, incum-
see they were carrying hatchets and clubs.
They neared a used-furniture store that be-
their mandate is to do whatever
bent-protected Congress recognizes no
longed to a Jew, smashed the plate-glass
strikes their whim.
limits in pressing its power. Congress
window, entered; turned on the lights and
The House was meant to be the
now can exercise a stranglehold on
proceeded to throw all the furniture out
electoral body most representative of
domestic policy by sending up a whole
into the street. They poured gasoline over
and closest to the people. Instead, it is
year's legislation in one veto-proof
the pile- and set it on fire.
almost impossible to defeat more than
bill. Lately Speaker Wright has be-
Now We Understood
a handful of incumbents. David R.
come a free-lance Secretary of State,
The next Jewish-owned store was on the
Mayhew, chairman of the political sci-
announcing his own "peace plans"
same side of the street as our apartment,
ence department at Yale University,
and declaring his right to reveal clas-
two blocks down. It sold yarn and notions.
sáys the House is "becoming too im-
sified information. Congress also
Again, we could hear the shrill sound of
penetrable to be representative."
mandates that special prosecutors in-
the whistle and the sound of the broken
Members of Congress have spent
vestigate executive-branch officials at
glass. Now we knew that our store would
be next in line. And now we understood the
years building an intricate web of
the merest hint of scandal, while
strange call from the security people.
laws and practices that virtually guar-
Members are turned over to user-
For 16 years, my parents had owned
antee them continued re-election and
friendly ethics committees of their
and operated a tobacco store on a large
isolation from voter sentiment. Gerry-
peers. And Congress feels free to leg-
square, called Neumarkt. We were plan-
mandering has dramatically shrunk
islate restrictions on everyone else in
ning to emigrate to Cuba, and the store
the number of competitive House dis-
the nation without applying equal pro-
was in the process of being sold;- only for
tricts. While no one has figured out
tection of the laws to its own em-
malities of the takeover remained. Watch
how to gerrymander the Senate, races
ployees.
ing from the fourth floor, we saw the lim
The issue, though, is by what right
ousine come to a screeching halt in front 0
there are also becoming less and less
our store and heard the whistle sound. Iroi
competitive. Members send out more
does the legislative branch exercise
gates covered the windows and doors, bu
than a billion pieces of self-promoting
this power? From where does the
the Stormtroopers gained entrance wit
mail a year. Challengers can collect
Congress elected yesterday draw any
only $1,000 from an individual contrib-
legitimacy? Not from the Constitu-
utor, while incumbents shovel in
tion, which surely did not intend to
money from political-action commit-
create a House of Lords with lifetime
Crowded
tees paying a genteel form of protec-
tenure. Not from any discernible per-
tion.
sonal qualities, with Jim Wright now
By IRVING R. KAUFMAN
"The view of the Democratic lead-
working on a new book, "Mr.
Today we are experiencing a. virtu
ership is that presidents come and go,
Speaker," even while the ethics com-
boom in private judging. Corporations, a
but their control of Congress is for-
mittee investigates his non-book, "Re-
even individuals, can now rent a judge
ever," says former GOP Rep. Fred
flections of a Public Man. Not
from
adjudicate their differences without ev
the voters, SO long as incumbents deal
entering the courthouse. Entrepreneur
Eckert. About three weeks ago, Dem-
Americans are cashing in on the trend
ocratic "spin doctors" started to
from a stacked deck.
the latest spinoff of the litigation cri
hedge against a presidential defeat by
The presidency, by contrast, is still
overwhelming American courts-and c
trying to undermine the legitimacy of
elected by the entire nation-the only
tributing to a national movement tow:
a George Bush administration. The
branch of government SO chosen. The
privatization: In fact, one such group,
folks who had savaged Bob Bork, Ed
President is the only representative of
dicate," a public corporation whose sha
Meese and innumerable other victims
the national will, as opposed to a col-
are traded over the counter on NASD.
started to cry foul. Lloyd Bentsen said
lection of parochial interests. Con-
portentously advertises itself as "The
a Bush victory could only be the result
gress has its trick laws and coercive
tional Private Court System."
of "a concentration on negative adver-
procedures, but the President has
As court dockets continue to grow
steady rate, the familiar aphorism "jus
tising," for example, and that Con-
moral standing and the bully pulpit.
delayed is justice denied" rings hol
gress won't recognize "any kind of
What remains is for a President to as-
since society seems to have become
mandate" to cooperate with him. "A
sert his authority and his mandate.
creasingly numbed to the harm inflicte
interminable delay. The courts,
alarming frequency, are used as the
State vs. Scuds
rather than last resort of dispute res
tion. Recent statistics reveal that the I
Maybe the best thing that can be
Zia's political stature and his will in
ber of cases reaching the U.S. Court
said about the Soviet "pause" in with-
the face of Soviet intimidation.
Appeals has risen almost 50% since
drawing from Afghanistan is that it
Cases entering the federal trial C(
Pakistan is bearing the brunt of the
might convince the U.S. State Depart-
through one thue-"diversity" juri
pressure because the U.S. browbeat it
rehels
have
tion, where the parties hail from diff
an agreement committing
states and more than $10,000 is at sta
of
Urban Trauma
Day-to-Day Violence
Takes a Terrible Toll
On Inner-City Youth
Witness to Endless Brutality,
Lafeyette Walton, 12, Has
Many Emotional Wounds
A Comparison With Vietnam
ders. Some withdraw and give up hope;
UKB NN- gene
others become more aggressive.
By ALEX KOTLOWITZ
Lafeyette Walton reins in his emotions.
Staff Reporter of THE WALL STREET JOURNAL
He keeps to himself and tries to avoid trou-
CHICAGO - Saturday, June 13, 1987:
ble. More important, there is a passivity
Today is Lafeyette Walton's 12th birth-
about him that therapists caution can be a
day.
direct outcome of witnessing the victimiza-
Under a gentle afternoon sun, Lafeyette
tion of others. He only shrugs when asked
and his nine-year-old, cousin, Denise, skip
what he wants to be when he grows up. He
across the worn lawn of the Henry Horner
rarely laughs.
Homes public housing project, a seven-
Lafeyette lives with his mother, LaJoe;
block stretch of red-brick apartment build-
his 17-year-old brother, Raydale; his nine-
ings on this city's West Side. The two are
year-old brother, Pharoah; and three other
on their way to buy a pair of radio head-
siblings: triplets who are four years old.
phones with $8 Lafeyette received as a
Lafeyette's father, a bus driver for the
birthday gift.
city, stays with the family sporadically.
Suddenly, gunfire erupts nearby. The
The Waltons live in a ground-floor
frightened children fall to the ground.
apartment. The dirty cinder-block walls
Hold your head
and iron grilles over the windows lend a
down." snaps La-
fortresslike feeling to their home. Graffiti,
feyette,
covering
mostly gang related, decorate the hallway
Denise with her pink
walls like an ugly mural; Lafeyette boasts
nylon jacket.
that his name appears on all seven floors
As the shooting
of the building.
continues, the two
Lafeyette and his family often talk of
crawl through the
moving, but t would be difficult, if not im-
dirt toward home.
possible, on the $837 a month his mother
When they finally
receives in aid. Five years ago, it ap-
make it inside, La-
peared that they might have a chance to
feyette discovers
move to a quieter neighborhood because
that all but 50 cents
Mrs. Walton, who worked as a clerk at a
of his birthday
nearby health clinic, intended to enter
money has trickled
nursing school. But the triplets, two girls
Lafeyette Walton
from his pockets.
and a boy, were born prematurely and
spent their first year in the hospital, dis-
Lafeyette Walton lives in a neighbor-
rupting Mrs. Walton's plans.
hood where gunshots are as common as
Both Lafeyette and Pharoah get head-
the playful screeches of young children. He
aches when they hear the gunfire. Nine-
has watched men being beaten and has
year-old Pharoah, a child whose intelli-
seen friends shot. Two bullet holes in the
gence is belied by a. speech impediment,
olive-green curtains of his family's apart-
sometimes shakes uncontrollably when
ment are reminders of a gang shoot-out at
surprised by a loud noise. One evening ear-
the project. Two years ago, the boy stood
lier this year, Pharoah fainted after plead-
over a dying teen-ager who had been
ing with his mother to stop the shooting
gunned down outside the Walton apart-
outside. But throughout the summer of
ment. This year, not long before La-
1987, the shooting went on.
feyette's birthday, his mother permanently
lost the use of two fingers when she was
Tuesday, June 16: It is three days after
attacked by knife-wielding muggers.
Lafeyette birthday, and once again the
An account of three months in La-
sound of gunfire fills the air: Lafeyette and
feyette's life, based on visits with the boy
his mother hurriedly herd the triplets onto
and on interviews with the police and other
the floor of the apartment's narrow hall-
sources, is a chronicle of almost constant
way. They catch glimpses through the win-
exposure to frightening brutality: During
dows of young gunmen waving their pistols
the summer at Lafeyette's project, the po-
about. One youth totes a submachine gun.
lice say, an average of one person every
an a artment upstairs other gang
three days was beaten, shot at or stabbed.
Pl
ic Turn to Page 20 Folumn /
Henry Horner is far from the worst of Chi-
cago's public housing projects.
Lafeyette's story is familiar to many of
the nation's 5.3 million poor; inner-city
children. "These children are surrounded
by a very real and immediate world of vio-
lence, of gunfire, of death," says Theodore
Cron, special assistant to the U.S. surgeon
general, who believes the problem is grow-
ing. "It's every day," he says. "We just
simply didn't have. that before.'
Newly alarming to psychologists and so-
cial workers are recent findings that many
youngsters routinely- exposed to violence
exhibit the same post-traumatic-stress
symptoms that plague Vietnam combat
veterans. Many frequently suffer night-
mares, depression and personality disor-
1063
OCT 27 1987
Urban Trauma: Violence Affects Inner-City Youth;
Lafeyette Walton, 12, Has Many Emotional Wounds
Continued From First Page
About a week ago, members of the
members blast away at rivals in a building
bench, watch a tall, lanky teen-ager hold
Blackstone Rangers gang, which vírtually
across the street.
up a chrome-plated revolver to admire in
controls Lafeyette's building, asked him to
In the middle of the battle, the elemen-
the light of the setting sun. Lafeyette, who
stand security. Before that could happen,
tary school across the street lets out. La-
can more easily distinguish a .357-caliber
his mother intervened, telling the gangs
feyette, who has left his fifth-grade class
Magnum from a .45-caliber revolver than
she will call the police if they keep after
early this day, watches from his apart-
he can a computer from a typewriter,
her son: "I'd die first before I let them
ment as children pour out of the school,
points at the pistol. His mother slaps his
take one of my sons," Mrs. Walton says.
many of them panicking and running di-
arm down. Pointing, and snitching, can get
Gangs often recruit young children to
rectly into the gunfire. He and his mother
you killed.
do their dirty work. Nine days ago, a 14-
scream at the oncoming children to turn
year-old friend of Lafeyette's allegedly
back. Lafeyette spots his brother Pharoah
Monday, July 20: Lafeyette and his
shot and killed an older man in an alley
but then loses sight of him in the chaos. He
friends talk incessantly about leaving the
half a block north of Lafeyette's building.
begs his mother to let him go after his
project. They live in constant fear of being
Residents and police say the killing was
brother, who has a dangerous habit of run-
hit by cross fire. "I'm going to have my
gang-related. The friend is now in custody.
ning through gunfire when he first hears it.
own condominium in Calumet Park la Chi-
"I wish he hadn't done it," says La-
She refuses Lafeyette's request.
cago suburb|. It's nice out there. You could
feyette.
Lafeyette's friend James Cox, 13, who
sit outside all night and nothing would hap-
has cowered behind a nearby tree, sprints
pen," James tells Lafeyette, who breaks
Saturday, June 27: A large, overweight
for the Waltons' apartment. Pharoah ar-
into a wide grin. "They have flowers this
man runs across a vacant lot. Lafeyette
rives about the same time. But with all the
tall," Lafeyette says, holding his hand four
points to him and says he is the "raper
noise, no one can hear the two boys' pleas
feet off the ground.
man." According to Lafeyette and other
for shelter. Finally, the two run to another
youths, the man has sexually accosted chil-
apartment upstairs.
Tuesday, July 21: It is a hot summer;
dren. Quite matter-of-factly, Lafeyette
"We were beating on the door real
but with the police more visible than usual,
points to two buildings and explains,
hard," James later recalls. "Then I kicked
the young children are out en masse today
"That's where they have rapes."
on it. I was hysterical. My heart was
for the first time in many weeks. It leads
pounding hard." Pharoah talks about how
to an incongruous scene.
Tuesday, June 30: Along with a crowd
he has learned to react to shooting: "My
An open fire hydrant has created a
of chattering children and parents, La-
mom told me when you hear the shooting,
large wading pool outside Lafeyette's
feyette watches as a police bomb squad re-
first to walk because you don't know where
building. Gaggles of hollering children, in-
moves a World War II-vintage grenade
the bullets are coming."
cluding Lafeyette with his pant legs rolled
from a fourth-floor apartment. Lafeyette
Meanwhile, the police, who at first
up, throw buckets of water on one an-
worries that members of a gang "were fig-
other.
thought they were the targets of the shoot-
uring to blow up the building.' The police
ing, have taken cover in their cars and in
believe there are more grenades in the
The local leader of a gang called the
the building's lobby. Passers-by lie motion-
building, but they can't locate them.
Stones, whom everyone calls Junebug,
less on the ground, protected by parked ve-
wanders by. About 30 years old, Junebug
hicles and an ice-cone vending stand. Fi-
Monday, July 6: Lafeyette comes home
has served two prison terms for armed
nally, the battle ends. No one-amaz-
with a gash over his left eye. He says his
robbery, has twice been accused-then ac-
ingly-is hurt. Lafeyette learns that one er-
cousin Denise whacked him with a lead
quitted-of murder, and has been arrested
rant bullet from the shooting pierced a
pipe. Lafeyette hit the nine-year-old when
numerous times for drug-related charges,
friend's third-floor window with such force
he heard she had carried cocaine for a lo-
the police say. But his reputation doesn't
that it cut through a closet door and lodged
cal drug dealer. "She's not my best little
deter the water brigade of children, who
in the cinder-block wall.
cousin anymore," says Lafeyette.
begin a slapdash run to wet the gang
The police make no arrests.
leader. In his white designer jogging suit,
Saturday, July 11: Despite an increase
Junebug hurdles a 3-foot-high wire fence
Wednesday, June 24: The summer sun
in the number of policemen in the project,
and escapes-dry. He turns and laughs
highlights the hundreds of small shards of
the drug wars and family scraps continue.
with the kids. Only his panting pit bull,
glass littering the asphalt. The debris is a
(The police will confiscate 22 guns and 330
reminder of the time two years ago when
grams of cocaine from people in the proj-
Lafeyette threw a chunk of glass that acci-
ect this week.)
dentally put out a friend's eye. "I got real
Shortly after dusk, while Lafeyette is
mad at myself," he mumbles. "I thought
playing outside, the street and hall lights
of pulling my eye out."
in his building suddenly go dark. Residents
Today, though, the boy is more preoccu-
say gang members, who have keys to the
pied with a dream. On the way to a nearby
janitor's closet, shut them off. The pitch-
McDonald's, he points to an empty basket-
black darkness brings with it ominous
ball court and says that two nights ago he
signs that shooting may soon erupt. So La-
dreamed that his older brother had been
feyette slithers along the cinder-block
fatally shot there. "That's where Raydale
walls into his apartment. In the back,
was killed," he says, as if it had really
Pharoah screams in terror as his mother
happened.
leads him and the triplets inside.
Friday, June 26: Today, Lafeyette re-
Sunday, July 12: Lafeyette looks out his
fuses to play basketball with some children
living-room window at a squad of plain-
his own age. "I don't want to play ball with
clothes men arriving to break up a family
them, they might try to make me join a
squabble that has spilled over outside. An
gang," he says.
older woman pulls a long, curved butcher
Lafeyette constantly worries that he
knife on a teen-age boy who threatens her
may be pulled into the gangs. His friend
daughter. As Lafeyette peers from behind
James, with whom he hunts for garter
the metal grates covering the windows, he
snakes along the nearby railroad tracks,
says nothing.
recommends that if children are to make
it out of Henry Horner, they should "try to
Sunday, July 19: This evening, La-
make as little friends as possible."
feyette and his mother, while sitting on a
2503
Violence
in
which is tied to the fence, reminds La-
a young girl hit in the leg while jumping
and the services begin, James says, "I'm
feyette and others who's in charge here.
rope outside his building and the teen-age
figuring to cry" and buries his head in his
As Junebug ambles away, Lafeyette
boy who died from a bullet wound on the
hat to hide the tears. Lafeyette, who sits
pursues him. He wants, the $10 he was
stairs Just a few feet from his apart-
solemnly through the funeral with his hand
promised as payment for getting the gang
ment.
on his chin, holds the hand of his two-year-
leader a bottle of apple juice the other day.
Lafeyette's friend James, however,
old nephew. Pharoah sits silent with a
Junebug assures him he will get his pay.
sprints across Damen Avenue and snakes
headache, his arms clutching his rolled-up
through the large crowd. He later tells La-
sweatshirt like a security blanket.
Thursday, July 30: Lafeyette watches
feyette what he saw. On the grass, only 10
as a group of about 10 teen-agers just out-
feet from a small playground full of young
The morning after the funeral, a friend
side his apartment hit James's stepfather
children, lay Bird Leg, his white. jogging
of the Waltons, a man in his early 20s, is
with fists and sticks, leaving him with mul-
suit stained with blood. A shot from a
fatally shot. Lafeyette decides not to at-
tiple welts and bruises on his head. The as-
sawed-off rifle had hit him in the chest. Ac-
tend a second funeral. "I ain't going to no-
sault is apparently related to drugs.
cording to the police, Bird Leg, a member
body else's funeral, he says. "I just don't
In the next few days, James won't play
of the Vicelords gang, had been fighting
want to go."
with Lafeyette. He worries that his stepfa-
with rival gang members. Wrapped around
That same weekend, James is conked
ther's assailants might come after him so
one hand is his main weapon: his belt.
over the head with a glass bottle, opening
he stays at a friend's apartment, inside.
"I was just shocked," James tells La-
a gash requiring seven stitches. On the
"If they can't get to [the stepfather].
feyette. "The eyes just rolled to the back
way to a neighborhood grocery store, he
they try to get to me," he says. "It has
of his head and he was gone.
exchanged words with a young girl whose
to get. better. We can't keep living like
cousin then came after him. James says he
this," he adds, sounding like a world-
Thursday, Aug. 27: Lafeyette is haunted
plans to go after the young assailant once
weary adult.
by Bird Leg's death. At a friend's apart-
he gets his bandages removed.
The beating clearly leaves Its mark on
ment, he says he saw Bird Leg's spirit.
James, who generally retreats from any
Both Lafeyette and Pharoah have be-
"He was trying to tell us something," he
kind of trouble. The next week, he and six
come more withdrawn over the course of
says, though he isn't sure what.
others beat up a young girl, an almost di-
the summer, talking less about the goings-
Mrs. Walton worries that Lafeyette has
rect imitation of the punishment adminis-
on here. Pharoah, in particular, often wan-
become unusually withdrawn: "He says
tered to his stepfather.
ders off alone to collect soda cans, his
talking isn't going to help him. He says
shoulders hunched over, his unusually wide
that everything that goes wrong keeps go-
Monday, Aug. 3: Something happens
eyes drifting into space. Mrs. Walton plans
ing on and everything that's right doesn't
that Lafeyette refuses to talk about. Ac-
to take him to a health clinic because his
stay right so why should I talk. He's got a
cording to the police, a gang member was
speech problem is worsening.
lot of hate built up inside him."
shot while sitting in the back seat of a car
Normally, when someone at Henry
Lafeyette has begun to hang around
parked about 50 feet in front of Lafeyette's
Horner is killed, mimeographed sheets go
with a more mischievous group of kids,that
building. Lafeyette stood in the entrance of
up in the halls giving details of the funeral.
even he admits is the wrong crowd." One
his building when it happened. He refuses
In Bird Leg's case, however, this proce-
day in September, a local grocery-store
to say whether he witnessed the shooting,
dure is forgotten.
owner calls Mrs. Walton to ask that she
possibly for fear of gang repraisals.
pick up her son; Lafeyette is accused of
Friday, Aug, 28: Lafeyette, Pharoah
shoplifting candy.
Friday, Aug. 21: Bird Leg" is dying
and James are among the first to arrive
The opening of school is delayed by a
across the street:
for Bird Leg's funeral service at the Zion
teachers' strike. So Mrs. Walton sends her
Bird Leg, whose real name is Calvin
Grove Baptist Church on the city's South
two sons to stay with their grandmother
Robertson, has long been involved with the
Side. The three find seats in the church's
for a few days because she lives in a qui-
gangs, according to the police and resi-
red pews, which are packed with parents
eter neighborhood farther west. The boys
dents. Earlier this year, the police confis-
and children. Bird Leg's 13-year-old sister
have less chance of getting hurt there,
cated a starving and scarred pit bull from
cries so long and hard that friends drag
Mrs. Walton says.
him, which he had once used to threaten
her out halfway through the service to get
For his part, Lafeyette often prays be-
an officer. Bird Leg is 15.
her some air. She later\ vomits at the
fore he goes to sleep. "If I was God," he
Though Lafeyette knows the dying boy,
burial.
says,
there wouldn't be no word "kill-
he decides not to join the other children
The three boys file up. to the open cas-
ing.
who run to the crime scene. "I just didn't
ket, where Lafeyette runs his fingers along
His mother has another philosophy She
want to go," he says.
Bird Leg's suit and then caresses his
has taken out burial insurance on all of her
During his 12 years he already has seen
slightly puffy face. Lafeyette's own face is
children, including the four-year-old trip-
two children shot, both two summers ago:
impassive. As they return to their seats
lets.
30063
1007
Welfare Labor- pensions
A growing number of religious orders
are selling off their schools, their land and
even their headquarters, or mother houses,
to raise enough cash to pay the mounting
Sisters in Need
expenses of caring for older members. But
these efforts often raise still more prob-
lems. When the Sisters of Providence of
U.S. Nuns Face Crisis
Saint Mary-of-the-Woods tried to sell Im-
maculata College in Washington, D.C., to
As More Grow Older
build their retirement fund, they were sued
by a group of parents who contended that
the proposed sale "defrauded" students
With Meager Benefits
and was designed for the nuns' "own per-
sonal enrichment." The suit was dis-
missed, but the dismissal is being ap-
Many Go on Public Welfare;
pealed.
'If Nothing Happens
Are the Bishops Evading
The fiscal squeeze figures to worsen as
more nuns reach retirement. Most nuns
A Responsibility to Help?
don't have any retirement benefits; the
rest get only meager benefits that began
only recently.
Meatless Meals in Milwaukee
"If nothing happens, there will be reli-
gious orders of women that will simply run
out of money,' warns the Rev. Scott Wal-
ByUOHN J. FIALKA P.I
lensfelsz, who keeps the books for one of
Staff Reporter of THE WALL STREET JOURNAL
the Milwaukee orders. "What's going to
The nation's Roman Catholic bishops,
happen then? Do they go out and fend for
who for two years have been deliberating
themselves?" Father Wallensfelsz believes
how to improve the moral quality of the
that the bishops will have to do some-
U.S. economy, are facing a large moral
thing.
problem in their own economic house: the
The nuns' problems present an embar-
looming poverty of increasing numbers of
rassment to the bishops, who complain, in
Catholic nuns.
The nuns. many of whom helped build
the second draft of their recent pastoral
letter on the economy, that wage discrimi-
the nation's largest parochial-school sys-
nation against women is a "major factor"
tem by working for the bishops as teachers
in high rates of poverty in the U.S. Bishop
for subsistence wages, are now caught in
John R. McGann of Long Island, who as
what one church accountant describes as
treasurer of the bishops' council has held
an "actuarial nightmare." With a median
several meetings with national representa-
age now over 60, the nation's estimated
115,000 nuns find themselves beset by a
tives of the nuns, says about the projected
$2 billion retirement liability: "Across the
lack of meaningful retirement programs
board, our people were staggered. Maybe
and a sharp decline in the number of
that's good.
young nuns coming into the church to help
care for their aging colleagues.
Emergency Fund
A still-unreleased study sponsored by
As a first step in dealing with the prob-
the National Catholic Council of Bishops,
lem, the bisliops recently earmarked $60,-
MAY 1986
the church's hierarchy in the U.S., shows a
000 for an emergency fund to help orders
gap of almost $2 billion between the avail-
in distress. Some of the money was used to
able retirement money for the nuns and
bail out one New York order that was dis-
what it will take to meet their financial
covered to be in debt to its undertaker be-
and medical needs. The result is a growing
cause it was/unable to pay for the frequent
fiscal crisis for many of the nation's or-
funerals for its members.
ders of nums.
The order had struggled with the bur-
Clipping Coupons
den for years, uncomplaining, while contin-
In Milwaukee, where half the area's
uing to teach in the poor, inner-city neigh-
4,500 nuns are now 67 or older, nuns clip
borhood. "It's interesting how in the midst
grocery coupons from newspapers and
of New York City you can be SO isolated,"
have meatless meals to help make ends
says Sister Frances Mlocek, an accountant
meet. Some orders there have stopped pay-
for the bishops' council who administers
10/2
ing summer-school tuition for their work-
the emergency fund.
ing teachers. (Almost all U.S. nuns are
The immensity of the retirement prob-
also teachers.) But none of this, officials
lem, detailed in the study for the bishops'
there say, has more than a "minuscule"
council by the accounting firm of Arthur
impact on the nuns' money problems.
Andersen & Co., has been hidden for years.
Increasingly, small orders of nuns, es-
One reason is that many orders of nums
pecially those who serve poorer communi-
consider themselves to be independent
ties, are applying for public welfare. Sister
from the control of U.S. bishops. So until
Lois Vanderbeke, the director of finance
recently, the nuns had kept their books-
for the Sisters of St. Dominic in Racine,
and their mounting problems-to them-
selves.
Wis., says she recommends such action to
hard-pressed orders "as a last resort." A
Individual nuns still won't talk about
1981 bishops' survey showed at least 1,000
their personal travails because to do so,
nuns on welfare. The number is believed to
they feel, would go against their basic mis-
sion of devoting their lives to the needs of
be larger now.
others. "The feeling," explains Sister Anne
Please Turn to Page 17, Column 1
Sisters in Need: Nuns Face Crisis
For Lack of Retirement Benefits
P.17
Continued From First Page
Price Goes Up
saw the problem coming in the mid-1970s
Beitzinger, a member of the School Sisters.
The second firm calculated that it actu-
and dispatched Sister Anne O'Neil to Mas-
of St. Francis in Milwaukee, "always was
ally takes $800 a month to care adequately
sachusetts Institute of Technology to get a
that the less you earn, the greater is your
for a retired nun in Milwaukee, concluding
degree in financial management. Then it
service. It was that long-range planning
that the diocese's real unfunded retirement
sold some property and began rapidly rais-
was somehow in conflict with the provi-
liability was more like $126 million. Arch-
ing pay scales in the schools it owned to
dence of God."
bishop Weakland, who is also the chairman
match those of lay teachers.
But since the bishops began raising
of the bishops' committee that drafted the
Now the order has the beginnings of a
moral questions about the U.S. economy,
pastoral letter on the economy, is still
credible retirement fund. "One of our sav-
there is a new willingness by nun organiza-
studying the matter.
ing graces was that we never had diocesan
tions to discuss their financial problems
To deal with the new crisis, many or-
salary scales," says Sister O'Neil.
and the long years of low pay by the
ders are selling property or looking for
Stipend System Attacked
bishops. The bishops, however, SO far are
new fund-raising methods. But for women
In the church's internal debates over
reluctant to take major financial responsi-
often unaccustomed to thinking about
how to deal with the retirement problem,
bility for the nuns. "Now that the sisters
large sums of money or their own financial
the nuns have said that the first step
need money for retirement, the bishops are
needs, such efforts can be difficult. Some
should be for the bishops to scrap the old
saying, 'You're really not our responsibil-
examples:
stipend system-based roughly on what it
ity,'," says Sister Kathleen Steinkemp, a
-When the Sisters of Charity of The
costs a nun to survive-and pay salaries
member of the Sisters of Mercy who heads
Blessed Virgin Mary planned to put their
that are equivalent to those of public-
the National Association of Treasurers of
park-like novitiate in Los Gatos, Calif., up
school teachers. So far, the bishops have
Religious Institutes, based in Washington,
for sale, the neighbors complained about
resisted this idea.
which represents over 300 orders.
zoning problems and raised environmental
Francis J. Butler, president of Fadica,
"In a sense, they [the bishops] are
challenges against a road needed to de-
a Washington-based foundation trying to
right," Sister Steinkemp says, "but they
velop the land. That fight started in 1968. It
get lay people involved in helping the nuns,
have received the services of nuns in the
is still going on.
believes that the bishops might be able to
dioceses over the years. When she began
-When four orders of nuns in Louis-
do a little more to demonstrate their com-
her career-teaching mathematics in a Mo-
ville, Ky., decided to mount a profession-
mitment to economic justice. So far, he
bile, Ala., high school in the 1950s, there
ally organized fund-raising drive for their
notes, the only commitments by the
was no such thing as retirement benefits
retirement, they did .study first and dis-
bishops' council have been the $60,000
for any. nuns, and she was paid only $50 a
covered that younger Catholics didn't feel
emergency fund and the earmarking of
month.
obligated to them. So they "dropped the
$250,000 for an office to conduct further
Decline in New Nuns
idea. "Lay people say, 'What the sisters
studies on the retirement problem. "That,"
Traditionally, religious orders could
did, they did in charity,' and that's true, SO
he says, "is not an awful lot in the scheme
it's kind of a hard case to make," says Sis-
of things."
sustain themselves on such low pay be-
cause large numbers of younger nuns were
ter Helen Sanders of one of the four orders,
The prevailing view among the bishops,
the Sisters of Loretto,
says Bishop McGann, the treasurer of the
willing to take care of a small number of
older ones. In the 1970s, when social and
Some Do Better
bishops' council, is that the retirement is-
sue is still a local problem. "Each local
religious changes caused a dramatic de-
Some orders have fared better. The Sis-
situation has to be approached and then we
cline in the number of new nuns, the situa-
ters of Mercy sold their mother house near
have
to put together whatever we can,"
tion reversed. By then, local bishops had
Baltimore to the USF&G Corp., which is
says the bishop, who in his own diocese,
raised the basic pay, or stipend, of the av-
using it for a data-processing center. The
Long Island, has been among the first
erage nun to about $300 a month, including
order sold another mother home, near De-
church leaders to attempt to deal with the
fringe benefits, which usually are mea-
troit, to the U.S. Postal Service which is
problem.
ger.
using it for a management training acad-
Other bishops indicate that they can
With fewer working nuns providing for
emy.
give nuns only limited aid. "We have to do
retirement care for an ever growing popu-
The 13-wing mother house of the School
everything we can to help them," says
lation of older ones, the retirement prob-
Sisters of Notre Dame in Milwaukee is now
Bishop Thomas C. Kelly, the archbishop of
lem "just got worse and worse, and our
a Lutheran College; the remaining nuns in
Louisville, "but in the structures of the
MAY 9 1986
needs got:bigger and bigger," says Sister
the order make do in a converted down-
church the different congregations are in-
Steinkemp:
town motel. The campus-like home of the
dependent of the diocese. We will obviously
There wasn't immediate recognition of
Gray Nuns of the Sacred Heart, including
give what we have, but I haven't got a bil-
the problem at the level of the diocese,
three schools and a mother house outside
lion dollars and I doubt if any other
which is the equivalent of a state in the
Philadelphia, has become an education
bishops do either. The problem is a socio-
Catholic Church's structure and is gov-
center for the Federation of Jewish Agen-
logical phenomenon."
erned by a bishop, who sets the wage
cies of Philadelphia.
Although some nuns talk hopefully of a
scales. When church officials in Milwaukee
The Society of Sacred Heart in St. Louis
national fund-raising drive, John F. Phil-
questioned nuns' retirement-cost esti-
bin, the financial director of the archdio-
mates, Sister Vanderbeke of Racine says,
cese of Chicago-the nation's largest and,
she and a committee of nuns from other lo-
according to some estimates, wealthiest
cal orders hired an accounting firm that
church-sees political problems with that
estimated it would cost $56 million to fully
idea. Some dioceses, he notes, are rela-
fund a $100-a-month retirement benefit for
tively well off and have small numbers of
today's Milwaukee-area nuns. Archbishop
nuns. Other dioceses are poorer and have
Rembert G. Weakland and his financial ad-
large populations of nuns to deal with. "If
visers balked at that amount, so the nuns
they open this up," he says, "we'll see how
hired a second accounting firm.
much Christian brotherhood there really is
out there."
20f
15th
5/24/87
PAB
THE WHITE HOUSE
WASHINGTON
MEMORANDUM
TO:
MARLIN FITZWATER / STEVE STUDDERT
FROM:
JOSEPH W. HAGIN
SUBJECT:
APPROVED PRESIDENTIAL ACTIVITY
EVENT:
Attend the Wall Street Journal's 100ᵗʰ Anniversary
Dinner
DATE:
June 22, 1989
TIME:
8:30 p.m.
monally
DURATION:
45 minutes
LOCATION:
World Financial Center, New York, N.Y.
ATTIRE:
Black Tie
REMARKS REQUIRED: Yes
MEDIA COVERAGE: TBD
FIRST LADY
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ADDITIONAL
INFORMATION:
Speak prior to dinner and depart
Gamy Seif
CONTACT: Al Hunt
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,
TELEPHONE: OFFICE
HOME
NOTE: PROJECT OFFICER, SEE ATTACHED CHECKLIST
Ed Rogers
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WHCA Operations
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THE
SECOND
CENTURY
THE WALL STREET JOURNAL.
100 WALL STREET
For Immediate Release
Contact: Taggarty Patrick (212) 416-2616
THE JOURNAL'S FRONT PAGE -- A LOOK THAT LASTS
The Wall Street Journal doesn't stand still. During the past 10 years, the Journal has --
among other things -- evolved from one section to three, broadened its coverage, and sharply
increased its use of charts and other graphics.
The Journal's hallmark six-column front page, however, has endured; for many Journal
readers that front page is as familiar as the face across from them at the breakfast table.
The Journal's first front page in 1889 was filled with reports on railroads and markets. It
also carried almost two full columns of ads from such companies as the Central Railroad Co. of
New Jersey, Aspen Mining & Smelting Co. and Rand McNally & Co.
It wasn't until the early 1940s, under the leadership of Bernard Kilgore, that the Journal
stopped putting ads on the front page and created its current look. Kilgore said he wanted the page
to be a showcase for the paper's best journalism.
Columns One and Six are called "leders" -- the stories that "lead" the paper. The Column
Four story is called an "A-hed," named for the style of the headline that runs above it. A-heds tend
to take a lighter look at the news, but all three features delve deeply into their subjects, taking an
overview approach that can require weeks -- sometimes months -- to complete.
Column Five offers readers a different report for each day of the week: The Outlook on
Mondays, Labor Letter on Tuesdays, Tax Report on Wednesdays, Business Bulletin on Thursdays
and Washington Wire on Fridays. And, finally, Columns Two and Three present the What's
News digest of business and financial news and world-wide happenings. What's News is the
oldest of the Page One offerings, having first appeared in 1934.
#
Dow Jones & Company, Inc., Publisher of The Wall Street Journal
200 Liberty Street, New York, NY 10281
THE
SECOND
CENTURY
THE WALL STREET JOURNAL.
100 THE JOURNAL
FACTS AND FIGURES
First issue of The Wall Street Journal: July 8, 1889
First issue of The Asian Wall Street Journal: Sept. 1, 1976
First issue of The Wall Street Journal/Europe: Jan. 31, 1983
First two-section Journal: June 23, 1980
First three-section Journal: Oct. 3, 1988
First tabloid Wall Street Journal Report: May 20, 1985
Pulitzer Prizes awarded to the Journal: 13
Circulation of The Wall Street Journal at year-end 1988: 1,950,400*
Current (12/30/88) average paid circulation of The Asian Wall Street Journal: 37,076**
Current (12/30/88) average paid circulation of The Wall Street Journal/Europe: 44,293**
Number of Journal news department personnel (part- and full-time): approximately 500 (Does not
include Asian or European Journal staffs.)
Press capacity of the Journal: 80 pages
The Wall Street Journal news bureaus: domestic - 14; Canadian - 3; other foreign - 11
Advertising sales offices: domestic - 25; foreign - 8
U.S. printing plants: 18
The Wall Street Journal/Europe news bureaus: 7
The Wall Street Journal/Europe printing plants: 2
The Asian Wall Street Journal news bureaus: 12
The Asian Wall Street Journal printing plants: 3
#
*Publisher's internal records
**Audit Bureau of Circulation figures
Dow Jones & Company, Inc., Publisher of The Wall Street Journal
200 Liberty Street, New York, NY 10281
A22
1-20-89
THE WALL STREET JOURNAI
REVIEW & OUTLOOK
Bush Must Beat
The Odds to Make
George Bush, Conservative
His Tenure Work
As George Bush today takes the
There is a good reason why Wash-
oath making him the 41st President of
ington so often is derided as "the Belt-
Washington's long underestimation of
the United States, voters and political
way." More out of habit than intent,
George Bush has given way to inaugural
professionals will search for some
the Washington community has come
deference, but this week's ritual good will
hint of where the Bush presidency will
to see American politics as essentially
is a phony peace. Soon enough the capital
take America. In the terms Washing-
the federal government committing
will revert to its habit of devouring presi-
ton's professionals use to define real-
its resources to all the ills of the na-
dents.
ity, the battle for the Bush presidency
tion. It measures a presidency's suc-
Though he takes office with pomp and
is being waged between conservatives
cess almost exclusively in terms of its
media flourish, Mr. Bush today becomes
and pragmatists, words given no defi-
efforts at fashioning new federal poli-
the leader of the weakest of the three
nition beyond pointing in the direction
cies. Washington serves as the na-
branches. The presidency, most scholars
of John Sununu or Jim Baker. There
tional drum major.
and witnesses agree, is striking mainly for
what it cannot do (get its budget enacted,
is a general feeling that other than the
The irony in this is that most of the
for example). To avoid joining the list of
Chief of Staff, the conservatives have
Washingtonians Mr. Bush will be ad-
broken presidents, Mr. Bush will have to
been seated at the end of the bench,
dressing today are themselves the
call upon the quality that Hamilton called
leaving- Mr. Bush and his establish-
successful products of the interlocking
"energy" in the executive.
ment friends to take control of the
system of necessary institutions he SO
If all this casts me as the skunk at the
government as a kind of skilled
obviously admires-families, schools,
inaugural ball, consider the 20th-century
pickup basketball team. The Pragma-
towns, churches, states, private or-
record. Going back to Truman, only Eisen-
tists.
ganizations. Once inside the Beltway,
hower and now Ronald Reagan can be said
Anyone who believes this should
however, they somehow come to re-
to have ended their presidencies in suc-
reread the speech George Bush deliv-
vere federal government as something
cess. Going back even further, three of
ered the night of August 18, accepting
the previous five presidents-Hoover, Har-
with special, pre-eminent powers, sort
the Republican Party's nomination to
ding and Wilson-were pilloried in office.
of like the natives on the lost Island of
run for the presidency. They will dis-
Kong. Identify an issue in American
Even John Kennedy, who began with SO
cover a conservative. And if they
life-health care, the environment, se-
much rhetorical ambition, was grumbling
doubt the sincerity of the speech's
by 1963 about the limits of his power. Ken-
curities trading, poverty-and the
conservative political values, they
workers of Washington start chanting,
should set them alongside the
"Kongress, Kongress, Kongress."
Potomac Watch
speech's personal values. One set
flows naturally from the other.
This cultic reverence for public in-
The speech is remembered for two
stitutions creates special problems for
By Paul A. Gigot
phrases: "a thousand points of light"
Mr. Bush and his cabinet secretaries,
and "a kinder and gentler nation. "A
who know they will be praised by the
nedy proposed that one scholar dedicate
thousand- points of light" received a
temple's high priests not for deploying
his book on the presidency with this ex-
fair bit of derision. Why some would
the thousand points of light but for
change from Shakespeare:
want to undermine this notion be-
using only one light. Conservatives
Glendower: I can call spirits from the
comes clear on examining the pas-
will watch the Bush administration
vasty deep.
closely for evidence of being captured
Hotspur: Why, so can I, or so can any
sages that preceded the phrase.
in this manner, but even non-ideologi-
man. But will they come when you
"An election that is about ideas
and values," Mr. Bush said, "is also
cal liberals are put off by the Belt-
do call for them?
way's overbearing sense of its own
Ronald Reagan, by leaving on a surge
about philosophy. And I have one. At
the bright center is the individual.
central importance to the nation's suc-
of good will, paradoxically leaves Mr
Bush a harder act to follow. He has shown
And radiating out from him or her is
cess.
the family, the essential unit of close-
At a personal level, Mr. Bush is un-
a president can succeed, but he has be
queathed Mr. Bush fewer tools to ensure
ness and love." While the Bushes' af-
doubtedly more deeply conservative
his own success. Mr. Reagan continued the
firmation of the family's importance
than some of his conservative critics.
trend, begun under Presidents Nixon ano
has been widely publicized, the more
Many of them discovered their con-
Carter, of accommodating congressiona
classically conservative statement
servatism in books; the Bushes by all
poaching on the presidency.
came next: "From the individual to
accounts have always lived this way.
This is not mere partisan cant. A Demo
the family to the community, and then
"We weren't saints, but we lived by
cratic Congress helped to break Jimm:
on out to the town, the church and the
standards," Mr. Bush said in New Or-
Carter, as it led attacks on Georgians Ber
school, and, still echoing out, to the
leans. "We celebrated the individual,
Lance and Hamilton Jordan. A permanen
county, the state and the nation-each
but we weren't self-centered. We were
government-the "Washington colony," a
doing only what it does well, and no
practical, but we didn't live for mate-
Mr. Reagan put it-of special prosecutors
lobbyists, reporters and bureaucrats i
more.' Finally Mr. Bush arrived at
rial things. We believed in getting
delighted to join a permanent Congress t
the American institution he will lead-
ahead, but blind ambition wasn't our
diminish any president who shows weal
the federal government. "Does gov-
way." This is essentially New Eng-
ness. A book released yesterday by th
ernment have a place? Yes. Govern-
land conservatism.
American Enterprise Institute, "The Fe
tered Presidency," highlights this congres
ment is part of the nation of communi-
It shouldn't be surprising that Mr.
sional ascendency.
ties-not the whole, just a part.'
Bush's personal and political philoso-
This is a profoundly conservative
phy resembles that of the politicized
Duke scholar Donald Horowitz, writir
in The Public Interest, notes that tl
description of the political order. It
New Englanders who assembled this
Founders have been turned on their head
believes that all the established insti-
country into the United States. Con-
The House of Representatives, intended
tutions: of a society bear as much
servatives pass these things along.
be the branch most responsive to the pu
moral legitimacy and responsibility
Mr. Bush is a long way from realizing
lic, has through lack of electoral compet
for progress as the state. In say-
anything approaching his forebears'
tion become the least. But the presidenc;
ing this; -Mr. Bush defined an enor-
success. Like them, the new President
whose direct election was rejected in 178
mous gulf between his own political
will have to demonstrate that his in-
is now the branch most at the mercy
philosophy and that which now rules
nate conservatism is a foundation
popular will.
the Beltway.
from which to govern.
The vulherability is enhanced by telev
sion. The media focus their daily attentic
on the White House, heightening expect
tions and exaggerating mistakes. "TI
presidency is an office idealized," Mr. H
La Loi Americaine
rowitz says. "The president is an occupa:
disappointing."
The incoming Bush administration
Beregovoy, discussing these matters
One result, he adds, is that "Presiden
with Wall Street Journal staffers in
carry polls in their pockets." Richai
may quickly have an opportunity to
Wirthlin, Ronald Reagan's pollste
topple the Socialist government in
Paris this week, said he had in-
boasted this week that for every televis
France. Not with the CIA, of course,
structed French authorities to cooper-
White House speech of the past four yea
but with the U.S. Securities and Ex-
ate with the SEC, even though France
he assembled a "focus group." Its mer
JOURNAL FRIDAY, JANUARY 20, 1989
eat
Scripts for a New President
ake
By ROBERT L. BARTLEY
fense and busts the budget. President Bush
Brady is an exemplary chairman of the
In the past year George Herbert Walker
responds with a rash of vetoes and rhetoric
board, but he needs more help than David
ork
Bush has evolved from a wimp into a
challenging the legitimacy of a gerryman-
Mulford, a one-time Saudi financial vizier
meanie into a soothing pragmatist. An
dered, incumbent-protected, PAC-afflicted
who wants Hong Kong to revalue, and
amazing chameleon act, if you choose to
Congress (GIPPAC). Then we try to settle
Charles Dallara, a bright bureaucrat. It
mation of
believe the faddish wisdom. While in fact
things in the 1990 elections.
will be up to the Baker-Darman-Greenspan
inaugural
George Bush is probably pretty much the
This scenario would certainly be the
axis to close off the most likely route to the
good will
same guy who left Connecticut to fly in
most fun for us pundits, and might actually
Bush Cave.
he capital
World War II, it is true that he comes to
be the best for the republic in the long run
Scenario Four: George II. No, not an-
ing presi-
the presidency today having revealed no
if it broke the institutional deadlock be-
other George Washington, as in the
clear public blueprint.
tween the executive and legislative
"George to George" Bush inaugural
pomp and
For the past eight years, it has been
branches. But its likelihood has been di-
theme. George I is George Deukmejian,
becomes
impossible to slip a piece of rice paper
minishing as the election fades into his-
the retiring governor of California. Despite
between Vice President Bush and what-
the three
tory. President Bush and Speaker Wright
his current budget problems, Gov. Deuk-
scholars
ever President Reagan decided. In the
have been acting like politicians, trying to
mejian has run if anything a more conser-
nainly for
campaign, Candidate Bush promised not to
smooth over differences and let the other
vative administration than Ronald Reagan
enacted,
raise taxes and to support the flag. In pick-
guy get blamed for striking the first blow.
did, item-vetoing Willie Brown's Demo-
the list of
ing his cabinet, he emphasized experience
Anyway, this scenario has a fatal flaw; the
cratic Legislature into line. But no one
11 have to
and team play, virtues by which he himself
bothers to call George Deukmejian an "id-
ton called
lives. This is no doubt prudent, given the
prevalence of slash-and-burn politics in
In short, President
eologue." If you want charisma, the gover-
nor says, don't look for me.
Washington. But it does mean that the es-
ink at the
Bush's role may be to
In short, President Bush's role may be
sential character of the Bush presidency
to make the Reagan Revolution respect-
h-century
remains to be defined.
make the Reagan Revolu-
able. Where President Reagan had the
nly Eisen-
Some Scenarios
an be said
There is always the possibility, of
tion respectable. Where
skills to win victories, there's reason to
S in suc-
hope President Bush will provide the skills
three of
course, that George Bush has an agenda he
Reagan had the skills to
to institutionalize them. His establishment
ver, Har-
hasn't told us about. Certainly he's had
roots tempered in Reaganism leave him
in office.
plenty of time and experience to form
win victories, there's rea-
consummately equipped for this task.
views of his own. And what the chameleon
evolution of the past year and his record as
son to hope Bush will pro-
A Paradigm
an with so
rumbling
Take the matter of the National Eco-
vice president really mean is that Mr.
vide the skills to institu-
wer. Ken-
nomic Commission, with its pretensions of
Bush is one of those rare Washington char-
acters who can keep things to himself. But
tionalize them.
overriding Mr. Bush's chief campaign
promise. Some worried that Mr. Bush
atch
on the basis of public speculations and the
would give it the back of his hand, refusing
trend of events, it's possible to identify
Big Fight would require that Congress vio-
to hear its tax-boost report, or using his
four possible scenarios for the Bush presi-
Gigot
late its own first law: Never accept re-
two appointments to appoint Jack Kemp or
dency, plus one wildcard:
sponsibility for anything.
another anti-tax troublemaker. The Belt-
Scenario One: The Grand Compromise.
Scenario Three: The Bush Cave. This of
way breathed a sigh of relief when he ap-
Everyone knows what the government
course is the big fear of conservative activ-
pointed comfortable figures, former GOP
dedicate
ought to do: Raise taxes and cut Social Se-
ists and Reaganites everywhere. Even
Sen. Paul Laxalt and former Democratic
1 this ex-
curity to balance the budget. In seminars
Ronald Reagan had trouble standing up to
Rep. Thomas Ashley, and promised not to
and board rooms from sea to sea, it's obvi-
the pressures for compromise, and in par-
ignore the commission's views. But it turns
oT the
ous that this step would cut interest rates,
ticular the pressures for government ex-
out his appointees don't want a tax in-
increase savings and investment, spur eco-
pansion. Mr. Bush lacks the clear Reagan
crease, and the commission is divided.
an any
nomic growth and put the Japanese in
agenda and convictions, and has stuffed
Then Secretary Brady asks it to please
en you
their place. But with Republicans opposing
his cabinet with pragmatists, managers
give its advice by March 1. The conserva-
higher taxes and Democrats opposing enti-
and other Beltway types. Liddy Dole will
tives proclaim no victory and the liberals
1 a surge
tlement cuts, some political device was
give the AFL-CIO the minimum wage,
chafe at no defeat, but somehow the com-
ives Mr.
needed to force them to trade pain for
Louis Sullivan will bail out the AARP tax
mission has been reduced to an irrele-
as shown
pain-hence the National Economic Com-
on the elderly with even-more-expensive
vancy. This is a paradigm of George II.
has be-
mission. The Grand Compromise certainly
national health insurance. Dick Darman
The Wildcard: Gorbachev Agonistes.
o ensure
would give the new Bush administration a
will put defense on the cutting block. And
More often than not in the modern era, the
inued the
clear definition.
at the end of this process, President Bush
character of a presidency has been deter-
ixon and
Its likelihood? Not much. To begin with,
will have no choice but to give the Beltway
mined in foreign affairs. Historic events
ressional
the merits of this proposal are not as clear
more taxes.
are taking place in the Soviet Union,
as they seem. The deficit is already fall-
The likelihood of this scenario, all too
though their outcome is neither clear nor
ing, and it's not clear that there are great
A Demo-
obviously, cannot be lightly dismissed. But
easy for the U.S. to influence. Conceivably
benefits in taking money from the public
[ Jimmy
it probably does not give enough credit to
President Bush may have an opportunity,
sector by taxes, as opposed to taking it by
ians Bert
the temper of the times, or to the legacy of
whether by negotiation or silk-glove con-
borrowing. It is also not clear that budget
rmanent
the Reagan administration, in which many
frontation, to consummate a permanent
efficiency is better promoted by cutting So-
lony," as
of those cabinet appointees got their expe-
change in the U.S.-Soviet relations. Con-
cial Security than by cutting, say, agricul-
rience and credentials. In particular,
secutors,
ceivably, too, he may face a sudden crisis
tural subsidies. The National Economic
icrats is
George Bush sat at President Reagan's el-
arising out of Mikhail Gorbachev's over-
Commission now shapes up as divided, and
bow for eight years. "No new taxes" is
agress to
throw and a suddenly more truculent lead-
the Bush administration has invited it to
VS weak-
much more than a pledge about tax policy;
ership. As Mr. Bush takes office, it's im-
speak up by March 1 or forever hold its
/ by the
it's about a president's only political lever
possible to foresee the shape or even the
peace. Outside of the seminars and board
The Fet-
on Congress. If he lets himself get into a
direction of these events, but history may
rooms, no one's really in favor of the
position where he caves on taxes, his ad-
remember him for his reaction to them.
congres-
Grand Compromise.
ministration will be dead in the water, and
The same faddish wisdom that depicted
Scenario Two: The Big Fight. This
this President Bush clearly understands.
George Bush as a chameleon now depicts
:. writing
seemed to be brewing in the weeks imme-
The likelihood of the Bush cave will be
that the
him as inheriting a plate of problems: a
diately after the campaign, with Demo-
greatly enhanced, though, if an economic
deficit, disarray in the alliance, the S&L
ir heads.
crats carping about a dirty campaign and
downturn shakes the confidence of his ad-
"crisis," the predictable necessity of back-
tended to
bragging that their congressional victories
ministration, as the 1982 recession shook
ing off his "no new taxes" pledge. But as
the pub-
gave them as big a mandate as the presi-
the Reagan administration. The chance for
he's inaugurated today, the George Bush
competi-
dent's. In this scenario, George Bush's ad-
a sudden, lurching downturn lies in the
who left Connecticut is more likely to see a
sidency,
ministration and Jim Wright's Congress go
sensitivity of the dollar in the foreign-ex-
menu of extraordinary opportunities.
1 in 1787,
toe-to-toe. Congress re-enacts the Great So-
change markets. And the Bush administra-
nercy of
ciety, plays to special interests with legis-
tion's Achilles' heel may be that no one un-
lation like the minimum wage, slashes de-
derstands this in its Treasury. Nicholas
Mr. Bartley is editor of the Journal.
y televi-
attention
expecta-
S. "The
Ghosts of Inaugurations Past
Mr. Ho-
occupant
By MARK S. PESTAL
the parade. Grover Cleveland's parade
celebrate "Old Hickory's'' victory.
George Bush's inauguration ceremony
was interrupted by the arrival of his per-
The mob in the East Room damaged
residents
is a $30 million production planned by hun-
sonal belongings at the White House. Spec-
furniture, ruined rugs and left much bro-
Richard
dreds of staffers. But history suggests it
tators across Pennsylvania Avenue
ken china and glassware. In a futile at-
pollster,
could best be remembered not for its pag-
watched an uncovered wagon filled with
tempt to stem the worsening damage, the
televised
eantry but for whateyer goes wrong.
worn-out trunks and boxes, all labeled
punch was moved out to the lawn as a en-
ur years
Here's some last-minute advice for the
"G.C." in large white letters, roll through
ticement for the guests to do the same.
THE WALL STREET JOURNAL.
© 1907 Date Jean y Company. for. an Rights Reserved.
Updating the key
New York State Aims
What's News-
Haso and Forman
Labor Letter
McNomara's Trip
Special Name Region on People
Secretary's Salgon Vide
T.. Mismission Tradition
-
And Their Jobs Offices
AVIR Spotlight Debate
and Finance
World-Wier
CURRENT
in Creating New College
Fields and Facturias
Over Size of U.S. Force
R. Ed- to Have
N HOLDRY within
Generals Seve Rive to 600.000
or nice Corriculare OFF-
Men From Pre- nt 430,000
Form Varied Stirs,
Chican take Deskt New
is
Despons
for Here are the two stories we discussed.
Traps Arking
I'm glad Al remembered the story about
the projects in Chicago im I chipped in to
the collection to send Lafayette and his
brother to camp, then had a chance to meet
them last year while on a reporting trip to
Chicago. It's a touching situation and
he S a great kid.
Hope this helps
Best,
Jerry Seib
You, Too, Can Rent
"Old George is doing all right," says
George Bush's Home
Mr. Ellis approvingly. He knocks on the
wood paneling. "I could feel very comfort-
In Texas for a Night
able here."
But Ms. Carr feels let down. "How can
this be a 'residence' without a kitchen?"
she demands. (We decide that Vice Presi-
Our Man Does So, and Pays
dent and Mrs. Bush prefer room service to
More Than Vice President;
slaving over a hot stove.) "Why, this is
just a hotel room. It's no different than any
Suite Fits a Hazy Identity
other hotel suite I've been in."
Over room-service veal piccata at the
Pres/By
Bush table, Ms. Carr ponders what the
DENNIS FARNEY
suite says about George Bush as a per-
Staff Reporte WALL STREET JOURNAL
son.
HOUSTON- "To the George Bush resi-
"This is so impersonal," she observes.
dence, my good man!" I cry.
"Not one personal item. It's almost
My cabdriver eyes me in his rear-view
like he has to validate who he is by having
mirror. His reaction seems a little hostile,
an apartment here in Texas. It's kind of
but I don't care: I am feeling positively
like he needs it to validate him, politically
vice presidential. I am about to become
and personally. And maybe more person-
George Bush for a night. You can, too.
ally than politically."
Anybody can, for a price.
Jack Steel, an aide in the vice presi-
That is because Vice President Bush's
dent's Houston office, politely declines to
private residence, for voter-registration
be drawn into such psychological interpre-
purposes, is a hotel suite here. And when
Please Turn to Page 27, Column 1
George and Barbara Bush aren't using it,
the hotel rents it out to anybody who can
foot the bill-which in my case totaled $403
a night.
Residency in Suite 271 of the Houstonian
Hotel makes Mr. Bush an officially certifi-
Just Check In at Suite 271 and Be
able Texan, buttressing his claim on a ma-
jor electoral and fund-raising base. Yet the
suite-blandly impersonal, with hotel furni-
George Bush of Texas for a Night21 P.
ture and 101 of the Reader's Digest's con-
densed books-is an apt symbol of a man
with a hazy public identity.
Continued From First Page
If Mr. Bush's principal private resi-
Irresistible Target
tations when he joins me for breakfast at
dence is in Maine, how can he vote in
Mr. Bush was born in Massachusetts
the hotel the next day. He says Mr. Bush
Texas? That is the legal question a Demo-
and raised in Connecticut. He was edu-
simply stays here for the facilities-includ-
cratic state representative raised here in
cated at prep schools and Yale, then went
ing indoor and outdoor jogging tracks, two
1984. But the vice president, who has a per-
into the Texas oil business. He was a Hous-
swimming pools and a health spa-and the
sonal car registered in Texas and still
ton congressman from 1966 to 1970. His vot-
proximity to old friends. One is oil man C.
owns a vacant lot here, prevailed in a
ing residence is here, yet his private home
Fred Chambers; C. Fred, a now-deceased
hearing. "To him, coming 'home' means
is in Maine. His campaign office says he
Bush dog, was named after him.
coming back to Houston," says Harold De-
and Mrs. Bush have lived in 28 residences
The vice president, who has stayed here
Moss, a friend and his attorney on that
in 17 cities. It adds up to an irresistible tar-
about 10 times in the past year, apparently
occasion.
get.
hasn't used the suite to grapple with any
Barbara's Way
"I'm glad to be here in Texas," fellow
grave crises of state. More typical, Mr.
Steel indicates, was Mr. Bush's visit in
Coming home to the Houstonian costs
GOP presidential candidate Bob Dole said
March 1986. That was when he came to
the vice president $264 a night for the suite
at a fund-raiser this fall. "I understand
it's one of George Bush's home states."
Houston to dedicate what may have been
and two adjoining bedrooms. I wondered
the largest banner ever made. It measured
about that, since the Houstonian charged
Suite 271-with a big living room and a
bar-strikes me as neither preppy nor
150 by 100 feet and commemorated the
me, $403 a night for the living room and
Texas sesquicentennial.
one adjoining bedroom. "We have to get
Texan. It is nondescript in a high-toned
very creative with pricing in the hotel busi-
sort of way.
IRS Wins Point
ness, explains general manager Louis
I check into 271-only hours after the
The Houston connection clearly has
Lanzino. Because Mr. Bush brings staffers
departure of Mrs. Bush, the Houstonian
been a boon to the Bush presidential drive.
and Secret Service agents with him, he
staff tells me-and take partial inventory.
"We raised $750,000 for him in a single
gets a discount.
Two couches. Two easy chairs. Two bar
luncheon here," says Nancy Palm, an out-
stools. A dripping faucet. One television
Certainly my stay is worth every penny
spoken (her nickname is Napalm) Houston
set, one stereo. All those Reader's Digest.
of my company's money. After breakfast, I
conservative who is part of the Bush Texas
condensed books. It appears adequate: a
head for the cushioned outdoor jogging
campaign. But keeping one foot in Hous-
quiet place, conducive to the thinking of
ton-and the other foot in Maine-has also
vice presidential thoughts.
been a legal headache for the Bushes.
I think of dinner.
In early 1981, Mr. and Mrs. Bush sold
Liberals Invited
their Houston house for some $843,000,
It seems appropriate, somehow, to in-
reaping a capital gain of about $596,000. On
vite two Texas liberal Democrats to dine
their 1981 tax return, they asserted that
ack-walking it (the way Barbara Bush
"in the suite." (If I didn't invite them to
they didn't owe any capital-gains tax on
does) not running (as George would do).
the George Bush residence, who would?)
the Houston sale because they had rolled
Later, I work on my forehand and back-
One is Billie Carr, a veteran battler for
the gain into the purchase of their Kenne-
hand on a balmy tennis court.
women and minority groups who once
bunkport, Maine, house, which they de-
Pleasantly tired-one is tempted to say
showed up at a Texas state Democratic
scribed as their principal residence for fed-
bushed-I repair to Suite 271 and my bas-
convention wearing shoes that, at the flip
eral tax purposes.
ket of complimentary fruit. The day be-
of a lever, converted into roller skates. The
The Internal Revenue Service dis-
fore, while counting those Reader's Digest
second is Rodney Ellis, a Houston council-
agreed. The Bushes' principal home, the
condensed books, I had come upon a title
man and former congressional aide.
IRS held, was the taxpayer-supplied vice
that, under the circumstances, seemed es-
They arrive, and jump to opposite con-
presidential residence in Washington. Then
pecially intriguing. It is called "Bush
clusions.
the agency hit them for nearly $200,000 in
Baby." I open it now.
back taxes and interest. Mr. Bush paid up,
"Bush Baby," it turns out, isn't about
protesting that the agency had "socked it
George Bush or any member of his family.
to me." But his troubles weren't over.
Bush Baby is a robot spy device that has
parachuted into Yugoslavia. A British sci-
entist is risking his life to get it out. I am
hooked from the opening line:
DEC
"The last of the spring snow still lay in
1 1987
luminous patches.
I reach for an-
other grape and settle back in my vice
presidential chair. This is going to be
good.
The New England Baptist and the Connecticut Yankee
m cub re-
$90 million. Later columns discussed the profits and risks involved
k.
in the mining business and the gradual disappearance of individual
ode Island
1 return to
neurs
mine owners as financiers underwrote shares in large mining con-
sortiums.
ibject that
When he arrived in Leadville, Dow turned his attention to the min-
ers, prospectors, and speculators: He wrote about their backgrounds,
epression;
how they lived, their capacity for hard work, their mining techniques,
e beseech-
and the fiercely protective attitude they had toward their claims. The
overnment
most important outcome of Charles Dow's trip to Colorado, however,
ler. Other
was the realization that if he was going to write about business and
which had
finance, the best place to do it was in New York.
On Wall
trinted
Arriving in the city in 1880, the twenty-nine-year-old reporter had
that gold
no trouble finding a job on one of New York's many newspapers. He
had even less trouble gaining access to the city's financial leaders.
terest and
Many of them had already been won over by his honesty and his
g that his
ability to keep a secret. Now, as he met with them in their board-
ame when
rooms and private clubs, the Wall Streeters began to appreciate the
smen who
howst
fact that this solemn-faced, plainly dressed New Englander also had
look at its
a keen mind and a quick sense of humor.
Charles Dow's stories soon caught the eye of John J. Kiernan, and
he journey
he was invited to join what was now called the Kiernan Wall Street
wed some
Financial News Bureau. A few months later Kiernan asked Dow to
yton Ives,
hire another reporter to work with him, and Dow got in touch with
Dodge, the
his friend, Edward Davis Jones.
ing copper
A lanky redhead five years Dow's junior, Jones was born on Oc-
tober 7, 1856, in Worcester, Massachusetts. He went to Brown Uni-
they were
versity but dropped out in the middle of his junior year to become a
nen of the
reporter for the Providence Evening Press. Although by the time of
who took
hem abso-
as safe to
values
Dow's offer Jones had become editor of the more prestigious Sunday
Dispatch, a job in New York sounded much more appealing, and he
wired his acceptance.
The two proved to be an excellent team. Dow was an idea man,
se a series
e elegantly
time
while Jones could dissect and anałyze a financial report "with the
ence Jour-
speed and accuracy of a skilled surgeon. " Equally important, they
were determined to write about Wall Street without fear or favor.
le to about
This in itself was rare. Dishonesty was rampant in the business-news
5
any
to attors
Inside The Wall Street Journal
The Ne
agencies of the day. It was not uncommon for a corporate president,
started with six empl
anxious to raise the price of his company's stock, to bribe reporters
to be so heavy, how
to print imaginative distortions of its value.
nan staffer, twenty
Dow and Jones refused to participate in this practice, but they were
them.
in no position to stop it. It was an accepted way of life on Wall
The stocky, impe
Street. Stock manipulation was all part of the "game," and the un-
was going to give u
protected public was always the loser. Some years later, writing for
a share in the new
his own paper on the ethics of investment, Dow said:
period, in which h
Bergstresser was as
The manipulator is all-powerful for a time. He can mark prices up or down.
His main talent
He can mislead investors inducing them to buy when he wishes to sell, and
that Bergstresser co
to sell when he wishes to buy; but manipulation in a stock cannot be per-
make him tell the
manent and, in the end, the investor learns the approximate truth. His deci-
the financial news
sion to keep his stock or sell it then makes a price independent of speculation
and, in a large sense, indicative of true value.
gold, a sixty-seven
culties of those earl
The New England Baptist and the Connecticut Yankee, as Edward
Jones called himself and his colleague, were convinced that there was
Gathering news also
plenty of room on Wall Street for another news bureau. John Kier-
SEC regulations had
relations man and th
nan's business was thriving despite the fact that its owner was too
issue annual reports
busy dabbling in Democratic politics to take an active role in its op-
financial condition h.
erations. If Kiernan, a newly elected state senator, could run a suc-
firm rumors and occ:
cessful news bureau with his left hand, a pair of younger men, willing
But usually the n
to work full time, could certainly make a go of one.
waiting outside direc
On that assumption the thirty-one-year-old Connecticut Yankee and
holing an "insider.'
the twenty-six-year-old New England Baptist said goodbye to "Kier-
nan's Corner" and in November, 1882, opened their own financial
Bergstresser's ac
news agency, Dow, Jones & Company, Inc. (Some sixty-six years
in the company's n
later the comma separating the two names mysteriously disappeared.
and another sugge
It was in the copyright line of a new edition of The Wall Street Jour-
themselves Berger
nal published in Dallas, Texas, on May 3, 1948, but by the time the
Unable to settle th
Mid-West Edition came off the presses of the newly acquired Chi-
agreed to stick wit
cago Journal of Commerce, on January 2, 1951, the comma was no
The fledgling n
longer to be found.)
Standard Oil Trus
Dow, Jones's original headquarters were in a small back room in
the public eye. T
the basement of Henry Danielson's candy store on Wall Street. There
sional hearing, ch
was no direct entrance; employees and visitors alike had to march
two principles: m
past a soda fountain and clamber down the stairs. The new company
nation's newspap
6
WALL STREET JOURNAL
November 5, 1980
REVIEW & OUTLOOK
The Inevitable
As these words are being written,
Leonld Brezhnev really wanted Car-
voters in America are going to the
ter, as rumored, he could have
polls to decide who will be their next
launched some attack and then caved
President. It would have been nice if It
In under Carter posturing. But he
needn't have come to this. It would
didn't have any more a clear idea of
have been nice if Messrs. Carter and
whom he wanted in the White House
Reagan could have patched up their
than did, say, the church.
differences without forcing half the
The church was trying. It. just
men and women in the most powerful
couldn't resolve its own internal dif-
and productive nation to take hours
ferences. Some evangelical Chris-
out of their working day to sort the
tians, working under the umbrella of
whole mess out. But it is one of the
the Moral Majority, launched a big
central facts of this year's presiden-
campaign to help Governor Reagan.
tial contest that there was no way to
But other evangelical Christians,
decide it without a vote.
working in the churches of the South
The pollsters. couldn't make up
and in the ghettos of the North, cam-
their minds. One week you'd read that
paigned for the proposition that
Jimmy Carter was leading in the New
Jimmy Carter could be born yet
York Times-CBS count. The same
again. The Pope never took a clear
week you'd read that Ronald Reagan
stand on whom he wanted for Presi-
was leading in the ABC-Louis Harris
dent, and neither, for that matter, did
poll. And the next morning you'd gèt
the Southern Baptist Convention, the
an entirely different set of figures
major society of rabbis, or the Angli-
from, say, the poll conducted for NBC
cans.
and the Associated Press. You'd be
digesting this information when some-
But the press couldn't make up its
one would race in with a dispatch say-
mind either. You'd think the press
ing that it was actually possible that
would have been able to do this. It
John Anderson could get such a vote
spends almost all its time running
that, through a miracle, he could cap-
around after the candidates, talking to
ture the White House:
their assistants, pondering the issues
Not that you can blame the polls
and excavating the facts. But one
entirely. After all, the labor unions
morning the New York Times en-
couldn't make up their minds either.
dorses Jimmy Carter, and the same
It used to be that you could count auto-
morning the Chicago Tribune endorses
matically on the unions to pick the
Ronald Reagan. One day the newspa-
Democrat and, in the absence of occa-
pers are trying to make a scandal out
sional overriding pressure from other
of Jimmy Carter's brother. The next
groups, install him in the Oval Office.
day they're dropping the whole ques-
This year, however, every time man-
tion as though it didn't matter and
agement of the unions got together to
nattering on about how Ronald Rea-
try to figure out for whom they would
gan is given to making gaffes. People
vote, they grew paralyzed by the pros-
would turn. to their television sets,
pect that the rank and file, out of work
only to discover that the broadcasting
or seeing their earnings eaten-away
Industry was SQ stricken with Indeci-
by inflation, didn't want to back the
sion that It was giving equal time to
Democrats. You could point out that
both major candidates.
some of the unions made- up their
So it just seemed inevitable that in
minds, but- not enough of them to close
this election year the voters were
the case before the election.
going to have to decide You can say-
Foreign potentates couldn't make
that this is a cop-out, or even a scan-
up their minds, either, although every-
dal, that it's impractical or un-Ameri-
one was quite patient with them. The
can. You can say it should shake our
country waited a year for the Ayatol-
confidence, in the institutions that pose
lah Khomeini to cinch the election for
as the big power-brokers, not only in
Jimmy Carter, but the irate imam
America but in capitals across the
dithered SO long that the country
globe. You cam say it's a disappoint-
couldn't wait any longer. Fidel Castro
ment, a pain-in-the-neck, or even a
had his chance, but all he delivered
hassle. Just the same, it's a nice thing
was 33 Americans he'd been holding in
to know that when all else fails, you
prison, hardly enough to decide an is
can count on the voters to pull the fat
sue as big as the presidential-race. If
out of the fire
Waiting for Reagan
WALL STREET JOURNAL
January
20, 1981
Ronald Reagan takes office today
more applicants than It pleases, leav-
as the 40th President of the United
ing the rejected ones feeling that their
States. It Is a solemn moment when
ideas have lost. In larger part, it is the
any new President undertakes his
managerial texture of the Reagan
awesome responsibilities, but even
Cabinet selections, leaving one won-
more than most Presidents Mr. Rea-
dering where the intellectual fire-
gan comes to his inaugural carrying a
power will come from.
heavy personal weight of the nation's
In part, it is the stylish quality of
hopes.
Mr. Reagan and the Californians who
In electing Mr. Reagan, the public
surround him. They tend toward "aw
clearly expressed its desire for a
shucks' homilies that leave the im-
change of direction. The reasons for
pression of smooth stones without the
its dissatisfaction with recent events
sharp edges that bite. In part, simi-
are manifest. At home, inflation has
larly, it is Mr. Reagan's managerial
eroded hopes for the future and led to
caution and personal distance, which
increasingly grudging economic prog-
tend to dilute any sense of the intens-
ress. Abroad, the United States has
ity of his feelings. And in part finally,
seemed unable to affect events, even
the fear arises from our transitional
to protect its own interests and its own
process; for nearly three months now
citizens. For many years Mr. Reagan
the President-elect has drifted in a
stood for a certain set of answers to
sort of constitutional limbo, and the
these concerns, distinct from those ap-
rest of us have been waiting for Rea-
proaches that have dominated public
gan.
policy over those years. The voters de-
Today the wait comes to an end,
cided to try something different.
and President Reagan will finally
As Mr. Reagan is inaugurated, cu-
have an opportunity to dispel this cu-
riously, the question is not so much
rious fear. We should not be surprised
whether the approaches he has articu-
if shortly the fear seems wholly illu-
lated will work. Rather, the question
sory. Mr. Reagan and his Californians
is whether these approaches will
did not get where they are today with-
really be tried. Not that anyone doubts
out steel or guile. Appointments at the
Mr. Reagan's commitment to them.
assistant secretary level are providing
But as his. administration has been
some ideological bite for the manage-
staffed and as his people made their
rial secretaries to manage. Mr. Rea-
initial attempts to grapple with the en-
gan's style, seen not least in his presi-
ormities they face, there has been a
dential campaign, has tended toward
certain slackening of momentum, a
a period of drift concluded by the bold
loss of elan The question has become
stroke, as an experienced actor might
whether Mr. Reagan and those around
plot it.
him will have the muzzle velocity
It's possible, indeed, that the eb-
needed to change old habits and defeat
bing of elan since November may in
ingrown political pressures.
time be seen as a good thing. Cer-
The fear that Mr. Reagan's initia-
tainly inflated expectations would be a
tives will merely wither away is
danger to any incoming administra-
amazingly widespread. Naturally
tion, given the difficulties of the politi-
those who have shared his ideas are
cal process and the depth of our cur-
worried. They have seen similar ideas
rent problems. But as Mr. Reagan
turned aside in places like Britain and
takes office and starts to lay out his
Canada, and here at home they saw
program, so much will depend on his
the Nixon administration implement
personal qualities-how much drive
wage and price controls and start the
and determination lie beneath the cool
Soviet-U.S. detente that served us so
exterior, how much personal ability to
badly in the Carter years. But even
blend his managers and policies into
many of those who did not support Mr.
a coherent whole, how much vision on
Reagan's ideas want him to imple-
how to change the course of events.
ment them. They don't believe these
Today we will start to learn, em-
are the answers, but they want to
barking with Mr. Reagan on a new ex-
know.
periment and a new adventure. He has
What then, is the source of this cu-
the ideas and the mandate, and if he
rious fear that the most ideological
can actually bring them to pass and
President of recent times will fail to
make them work, it will seem one
deliver on his promises? In part it is
great stroke of dramatic plotting. For
merely an artifact of the staffing pro-
if this happens, our 40th Presidency
cess, which is bound to disappoint
will have been a historical watershed.
TH
WA LL STREET JOU
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THE
WALL STREET
JOURNAL
THE
FIRST 100
YEARS
2
Warren H. Phillips, Chairman, Dow Jones & Company, Inc.
THE WALL STREET JOURNAL CENTENNIAL
THE WALL STREET JOURNAL CENTENNIAL
3
The Wall Street Journal is celebrating in 1989 the 100th anniversary of its first issue. It is embarking on its sec-
ond century committed to keeping readers well-informed in ways that will help them build better businesses and
better lives.
This centennial book sketches very briefly some of the Journal's history.
When the first four-
page Wall Street Journal came off the press in 1889, the building of the railroads dominated the business news.
Iron and steel production in the U.S. still had not surpassed that of England, but was growing fast to feed the
needs of the railroad builders. Electric lights and telephones were newly invented and just beginning to spread.
American society still was largely agrarian, with workers on farms double those in manufacturing. We were a
nation of only 38 states, and a population about a fourth of today's. The final suppression of the Plains Indians,
in the massacre at Wounded Knee, South Dakota, was still a year away.
In the years since, as America grew to
become the world's dominant industrial and financial power and opened up new frontiers of consumer service
and space-age technology, The Wall Street Journal reported this transformation as it took place. The Journal
also played a part in the change.
It did this by providing reliable economic news and information that helped
link the diverse parts of the country. We would like to think that this contributed to knitting together the nation
and the world of business.
As markets then grew and interdependence increased, the Journal sought to supply
readers with a tool knowledge to enable them and their businesses to grow, too. It sought to supply the kind
of timely, trustworthy knowledge that could be used to make confident decisions, grasp opportunities, adjust to
change and avoid costly mistakes.
This continues to be the Journal's mission as it moves into its second cen-
tury.
As the country and its businesses grew, SO did the Journal. Today it has grown into a national and inter-
national business daily with a circulation larger than that of any other U.S. newspaper. Its global circulation of
more than two million is served from 18 publishing sites in the U.S. and five others in Europe and Asia.
We
are proudest not of any quantitative growth measurements but of the confidence bestowed on the Journal by
readers and reflected in successive independent surveys over the years -- by the Louis Harris organization and by
4
THE WALL STREET JOURNAL CENTENNIAL
Times Mirror Co., for example -- that show the Journal to be the country's most trusted publication. We are
pleased that in the latest Pulitzer Prize awards, last spring, the Journal was the only newspaper to win two
Pulitzers for its reporting.
And we are pleased that earlier this year Fortune magazine reported that its annual
survey of corporate reputations found Dow Jones to be the most admired company in the publishing industry. It
was ranked No. 1 for the quality of its products and services. This was the sixth consecutive year the Fortune
survey has shown Dow Jones in such a leadership position.
We are highly skeptical, however, of the occasion-
al description of the Journal as powerful; we would be disturbed by any inclusion of the Journal in the talk one
hears these days about the growing power of the press. A newspaper should not aspire to power. Our aspiration
is to put power in the hands of our readers, to the extent that knowledge is power. Our aspiration is to help them
become more knowledgeable and thus gain greater power over their lives and careers and business fortunes.
In the Journal's first issue in 1889, there was a statement of principles that included these words: "We appreci-
ate the confidence reposed in our work. We mean to make it better."
Those words are behind whatever the
Journal may have accomplished over the years. They sum up the goals that will guide the Journal in its second
century: To be worthy of reader confidence by earning and re-earning that trust day by day; and to keep stretch-
ing always to improve the Journal's usefulness, "to make it better."
The Journal of the '90s and beyond will be
governed by two traditions. They can be stated as two pledges to readers. One is to adhere to old values: accu-
racy, independence, fairness. The other is to be quick to give readers the benefit of the new: to adapt to chang-
ing reader needs, to be responsive to changes in our economy and society and to adopt new technologies and
new ideas that will help serve readers better.
This blend of the best of the old and the best of the new has
been the standard to which the Journal has aspired in its first century. It will be the Journal's standard for its
second century.
The latest in a long series of moves to improve service to readers was made this past fall.
Journal editors organized the contents of the paper more efficiently in a new three-section format, for greater
THE WALL STREET JOURNAL CENTENNIAL
5
reader convenience. Coverage was improved in several
areas of increasing relevance to readers; these included
competitive marketing strategies, new technology devel-
opments and the strategies of smaller, growing enter-
prises.
A recent Carnegie-Mellon University survey of
executives found that while coping was the manager's top
challenge in the 1980s, competing will be most important
in the next decade. The Journal intends to point up infor-
mation useful in meeting this challenge, while at the
Peter R. Kann, Publisher
same time continuing to strengthen traditional coverage areas ranging from personal finance to foreign affairs.
The intent is to produce a paper paced to the needs of the '90s, and beyond.
At the time of the Journal's 75th
anniversary in 1964, the then publisher, Bernard Kilgore, wrote: "A newspaper, aged 75, can be as young as yes-
terday, provided only that it has learned from its past, cherishes sound traditions and keeps everlastingly alert to
the needs of tomorrow. I believe The Wall Street Journal of today still meets those strict standards."
We
believe those words apply as well to The Wall Street Journal at age 100 as they did to the Journal at the time
they were written. We are committed to seeing that they continue to apply to the Journal of the next century.
Today's Journal reflects the efforts of more than 3,000 talented and committed employees in all departments --
reporters, editors, salespeople, customer service representatives, technical experts, printers, pressmen, deliv-
ery people, and more. All of them join us in thanking you, our readers, for your patronage and loyal support.
G.P.V.
Peter R. Kann, Publisher
Warren H. Phillips, Chairman, Dow Jones & Company, Inc.
NEW YORK, N.Y. FEBRUARY 28, 1989
6
THE WALL STREET JOURNAL CENTENNIAL
It was December of 1941.
Barney Kilgore, who had been The Wall Street Journal's managing editor for less
than a year, decided early that month that the newspaper should be fully staffed on Sundays. Journal reporters
previously had written Monday's newspaper on Saturday, leaving Sunday duty to four printers.
So it was on Dec.
7, 1941, that the Journal had a full composing room and copydesk for the first Sunday in its 52 years.
William
F. Kerby, assistant managing editor for the Monday paper, was on duty. "A bit after 3 p.m., the bells began clang-
ing on the entire battery of press association teleprinter machines," Kerby recalled in his memoirs. "The
Japanese had attacked Pearl Harbor. I had just cleared the last of the page one articles for the first edition when
Barney turned to me and said: 'Now write the lead piece.' It was 30 minutes before deadline."
Kerby's story,
under a three-tiered banner headline, led a front page the next day that exhaustively examined the economic and
business implications of the imminent war. The story began: "War with Japan means industrial revolution in the
United States.
"The American produc-
Weather Freenat
THE WALL STREET JOURNAL.
VOL CXVIIL 133
NEW YORK MONDAY. DECEMBER 1941
SEVEN CENTS
War With Japan-
tive machine will be reshaped with but
U.S. Industry's Sole Objective: Arms Production Speedup;
Congress Prepares To Act; Tax Bill Will Be Rushed;
N.Y. Stock Exchange To Open As Usual Today, Says Schram
one purpose -- to produce the maximum
Washington Sees
What's News-
We Have Duty
All Consumption Curbs
Fight on 2 Oceans
(As Editorial)
business
Beancis
And 3 Continents
which
Business and Finance
World-Wide
Due To Be Stiffened;
TRADE
RCUSSIONS
the
Japan
Damage
Expects Half the National In
Saturday
evening
Japan
Declares
England
Scarcity List Will Grow
of things needed to defeat the enemy."
come Allocated Army,
galley
proof
Address
Congress
reached
Navy Labor Registration
Delivers
that
Japanese
had
at.
Vast Supplies of Ships and Shells Bombs and
More Curbs Vital Materials
that
last
Bombers Oil and Gasoline Will Be Essential:
Claim
Fronts
week
suddenly
I
remote
Outline Already Visible
business
action
*******
I
have
Kerby
many
means
the
The Pearl Harbor issue marked a water-
reality
I
fentastic
Strategic
States,
Every
known
unlimited
quastities
heavy
particularly
dwarfing
for
business
Reacial
com-
Market Officials
performed
pronecution
zi
shed in the development of the modern-
affected.
il
Expect No Trouble
a
Forees
formidable
array
New, Stiffer Levies
Now Are Imminent
But Will On Hand Early
Study Situation SEC
Will Fall on Firms Individuals
Meet This Morning
Alike Based How Much
State
Must Traffic Bear
day Wall Street Journal. It gave reality
to Kilgore's grand vision: The Journal
could be more than a narrowly focused
I
pro
duction
I
Company
Township of
WOODBRIDGE, N.J.
U.S. Well Stocked With Far Eastern
4%5 Boads
1040-1983
financial newspaper.
DOMINION OF CANADA
I
Commodities, But Curbs Will Tighten
Prive to
yield
BONDS
B.J. Van Ingen Co. Inc.
-
A. E. AMES CO.
plasts
AMERICAN
1
APPRAISAL Company
Saturday's
Sinking of the USS Arizona, Pearl
PROVIDED
CONSTRUCTION ENGINEERING
I
ARTHUR ERGREN
Ford. Bacon Davis,
Engineering Menagement
have
-
KANSAS
Harbor, December 7, 1941.
8
THE WALL STREET JOURNAL CENTENNIAL
Fifty-nine years before, in 1882, Charles H. Dow and Edward D. Jones, young reporters for a New York
financial news agency, set out on their own to found Dow Jones. Another newsman, Charles M.
Bergstresser, was made a silent partner, being persuaded that his name was too long to fit the company
name. The new firm produced handwritten news bulletins delivered by runners to Wall Street clients
throughout the day.
In 1883 the bulletins were summarized in a printed two-page Customers' Afternoon
Letter. This successful publication in 1889 became The Wall Street Journal, which pledged to offer a "faith-
ful picture of the rapidly shifting panorama of the Street." A prominent feature from the start was the stu-
Charles H. Dow
Edward D. Jones
Charles M. Bergstresser
THE WALL STPEET JOURNAL
The first issue of The
Wall Street Journal
Monday, July 8, 1889.
THE WALL STREET JOURNAL.
VOL 1-NO. 1.
NEW YORK. MONDAY. JULY 8. 1889.
PRICE TWO CENTS:
Average Movement of Prices.
Clearings Last Week.
W
HOUSE
CADES,
Sends
Tackange
THE WALL STREET JOURNAL
The bull market of 1885 began July 2, with the average
Boston special Post's table of clearings shows gross
f. H. Pawges YARK
Harvey BARREN, 3
price of 12 active stocks 61, 49.
exchanges of 41 cities for the week ending July 6, 1889,
The rise enlminated May 18, 1887. with the same twelve
81. 114 523, against $883,993,314 last year, an inc. of 27.5%
GILDER, FARR & CO.
PUBLISHED daily, except Sundays
stocks selling at 93.27.
Outside of New York the inc. is 14.2% New York inc. 37.3%,
and Stock Exchange holidays, at 3.15
Prices gradually declined for about a year, reaching the
Boston 27.9, Philadelphia 6.3, St Louis, 33 San Francisco
Bankers and Brokers
next extreme low point April 2, 1888. the 12 stocks selling at
18, Cincinnati 7.2, Kansas City 27.5, New Orlems St. Paul
P.M.
75.28. The movement since then, counting from one turning
2. Omaha 39.5, Minneapolis 15.2, Detroit 2,
Denver 70.5,
31 & 33 BROAD STREET,
SUBSCRIPTION Price, $5.00 per
point to another, follows:
Peoria 127. Indianapolis 3.9, Ft. Worth 90.3
Wichita 48.4,
NEW YORK,
annum. Delivered by carrier without
Last low point
Apr. 2, 1888, 75.28
Chicago dec. 5%. Milwankee 1.6, Duluth 44.6 and Topeka 4.9.
Rallied to
May
1.
83.54
For the month of June exchanges of 40 cities show an in-
charge, to subscribers of our regular
Declined to
June 13.
77.12
crease of 22.2% Outside of New York increase 9.3% New
Stacks and Bands Beught and Sold on Commission
8,
85.95
York increase 30 Boston 18.8% Philadelphia Chicago
DEALERS IN INVESTMENT SECURITIES,
news service. Reduced rates to bankers
Rallied to
Aug.
and brokers taking a number of copies
to
Aug. 18,
83.78
0.12. St, Louis 18.9%, San Francisco 2.7% Kansas City St.
Ballied to
Oct,
1.
88.10
Paul 2.1% Omaha 20.8% Denver 25.65, Pepria 23.8%, Ft.
OFFICE OF THE ASPEN MINING &
for mailing. Postage charged on copies
Declined to
Dec.
5,
81.68
Worth 47%. Topeka 18.4% Dulath decrease 45.5%
SMELTING COMPANY,
Ballied to
Feb. 18, 1889,
For 6 months gross exchangeso 40 cities show an increase
No. 54 Wall
ordered for mailing abroad. All sub-
87.77
Declined to
Mar. 18,
83.59
of Outside of New York increase 11.9% New York
NEW YORK, July 8th, 1889.
scriptions payable in advance.
Rallied to
June 12.
91.38
increase 18.2%. Boston 11.8% Philadelphia 15.95, Chicago 7.6%
The 9th regular monthly dividend WE
ADVERTISEMENTS 20 cents per
Closed Sat. night
July
6,
at
87.71
St. Louis 8.5%, San Francisco 1.9% Kansas City 11.3%. Omaha
twenty cents per share has this day. been
10.5% Denver 38.9%, Peoria 17.37, Doluth 13.6%, Ft. Worth
declared on the stock of this Compaire
line. Special rates to advertisers taking
The Market To-Day.
31.8%, Topeka 31.4%.
(200,000 shares) payable at the office of
space for one, three, six or twelve
There is some reason for believing that operators identified
the Company on and after the 12th day
Bankers Exerting Their Power.
of July to stockholders of record. Trans
months. Advertisements may be changed
with the bear party sent early orders to London to depress
Chicago special-It is stated on excellent
authority that
fer books will close Wednesday. July
as often as desired without charge.
Americans in that market as a preparation for the opening
the Western presidents are getting positive
orders from New
10th, at o'clock p. and reopen Maro
here. These orders were faithfully executed, and London at
York and Boston banking houses to settle the
Western trou-
day, July 15th, at 10 clock a. m.
DOW, JONES & CO.,
9.30 was quoted as opening weak and as having become very
bles at the meeting to-morrow. Some sort of plan to take care
J.L. TILTON, Secretary
26 BROAD STREET,
weak. Prices, however. were only a little below New York
of C.: B. & N. will be considered, and it is believed that if
C., B. & N. can be controled, a general Sement will be
CENTRAL RAILROAD Co. OF JERSEY
NEW YORK.
closinff figures.
effected.
119 Liberty Street,
London houses were, however, sellers at the opening. and
NEW YORK. July 8, 1880,
there developed a decided lack of buyers. Lake Shore fur-
Sales of stocks from 12 to 1-Listed
17,426; unlisted
A dividend of one and a half per cent.
nished ao illustration. It opened at 1011 and was then offered
5,454. Total, listed 194,408 unlisted 27,866.
has this day been declared. payable
DOMINICK & DICKERMAN,
down an eighth at a time to 101 where the next sale was made.
12.40 P. m.-Slayback sold Union Pacific down.
August 1st prox.. for the quarter ending
This temper started a rush to sell out, during the first hour,
The first bale of cotton from the South was sold
at
action
June 30th ulto. The transfer books will
Bankers and Brokers,
prices generally went off from 1 to 1%. In St Paul Mr.
in front of the Cotton Exchange, to-day and was bought by
close on Monday. the 15th inst, and
Henry Clews & Co. at 161.
open on Friday. August 2d.
74 BROADWAY AND 9 NEW STREET,
Randolph had a large selling order: in Union Pacific Mr.
Press. Cincinnati-It is reported here from a reliable
By order of the board.
Savin made the lowest prices. Reading was sold by Oppen-
source that Sullivan and Kilrain were fighting at
11.45
a.m.
J. W. WATSON,
BRANCH CETICERS wins PRIVATE
heim & Co., by Mr. Burras and Mr. Wheeler, and Northwest
The contest was a long one and Sullivan was
having the best
Treasurer.
348 Sroadway
I
657 Fifth Avenue
went down on sales by Davis Johnson. Traders made most of
of it and was sure to won.
the transactions in Atchison although there was evidence of
1.35-Van Emburgh sold 2,000 Missouri Pacific.
Toledo, Ann Arbor and
Member 11. v. Produce Exchange
some support when the other market was weakest. The Trust
The Position of Alton.
W. C. DOMINICK.
W. B. DICKERMAN,
Stocks were not a feature. although weakening in sympathy
Chicago special-Vice President MeMullin
says:
Alton
is
North Michigan Bonds
R. DOMINICK
Members - M Y. Stack Exchange
and on the execution of stop orders.
not inclined to reduce rates for the sake of reducing them or
G. F. DOMINICK.
The drive ended about 11 clock and the market had little
ON CADILLAC EXTENSION.
to injure the business of its competitors We have
but there was no general rally. There was 2 single item of
stock. etc.. from Missouri River for the reason that we think
FOR SALE
a & and inductrial Stacks,
favorable news from Chicago to the effect that New York
these rates too high and that the best interests of roads at the
- P.ps Car
bankers were exerting 3 strong influence upon the railway
Missouri River will be subserved by the small reductions which
CHARLES M. WHITNEY & CO
Cm
we desire to put into effect. The fact is that
since the roads
managers in favor of peace. It was said also that plan would
began to charge live stock shipments on
the basis of
Bankers,
Denver 6s and 7s
be presented at the Chicago meeting to morrow for taking care
weight instead of carloads it has cost $65 to 875
96 BROADWAY.
of Burlington & Northern.
per car from Kansas City to Chicago, whereas the old rate
The long expected Jersey Central dividend was declared
was $50 to 860, We reduced the passenger rate to meet the
WITH ASUNDANT SECURITY, ARE CETTER THAN ANY
at noon and proved a gratifying disappointment to those who
competition of scalpers who were selling tickers via other lines
OTHER 5s WITH NO CREATE SECURITY, OR
at a reduced rate,
J. H. STERLING & CO.
8s AND 10s WITH LESS
have been expecting a four or five per cent. rate. The direc-
WE OFFER CHOICE FIRST MICRIGAGES ON PRIME
fors voted to pay a quarterly dividend of 112. No ement
Chicago special to Jones. Kennett &
Hopkins-Local
Stock Brokers,
DENVER PROPERTY.
was made public, but the conservative management of Jer
securities: Chicago City R'y 59@60. Chicago
Pass R'y
MC INTOSH & MYGATT,
any Central is evidence that to high a rate would not have
1071 asked Diamond Match Co. 150@151,
North Chicago
SPECIAL ATTENTION TO TRUST STOCKS.
BANKERS
Street Ry 1224 asked, West Chicago Street
then made if the way to maintaining it had not seemed reason-
Ry 100@1001,
Gaslight bs 97j@97j. Consumers 5s 96 asked.
30 Broad Street, New York.
DENVER, COLORADO
New York Office,
96
Broadway
ably clear. Jersey Central profised by the Lehigh and Reading
Jersey Central Dividend
Hearth
strikes last year. but without them was able in the first five
:
Member.h
Seech
Bancer
ALLEN
F.
HARCLE
FRANCIS L HINE, ACENT
months of the year to increase its net earnings $15.870 over
Jersey Central has declared a dividend of
1% for the quar-
HORACE L, HOTCHKISS & Co.
those for the same time in 1888.
ter ending June 30, payable Aug. 1, 1889.
Books 15
Bankers and Brokers,
DECKER,
The news that the bankers syndicate was again exerting
This dividend is declared with expectation
of its contiou-
34 a 36 WALL STREET, NEW YORK
ance, in accordance with the statement the annual
pressure upon the railroad managers quickened the disposi-
report
on
- Printe
HOWELL
page 11.
sion of traders to take profits on the short side and apparently
& Co.
led some of the larger bears, to endeavor to lessen their fol.
Bulletin, New Orleans, says filed took
lace near Rich-
J. W OGDEN & co.
lowing. The result was a decided rally carrying prices up to
burg On account of there being no communic with the
Bankers and Brokers.
place particulars won' be had till the return of the
Bankers and Brokers,
12 with New England and the Trust stocks leading.
train,
No. 4 Equitable Building, New York City
which is due at 2 p.m.
Transact all Secorities Dralt
The Aspen Mining and Smelting Co. has
declared the 8th
New York Stack
Nos. 44 & 46 BROADWAY,
Boston Money Market.
regular monthly dividend of 20 cents per share to stock holders
DIRECT PRIVA WIRES CHICAGO AND BOSTON.
Boston special-The week opens with a decidly firmer
of record, payable on and after July 12th at
office.
Transfer
NEW YORK.
feeling in the money market. Money between banks continues
books close July 10th and reopen July 15th.
JAMES Inving, PICK.
Wa. CAROLIN, Sed's and form.
in sharp demand 5 and 6% being readily paid for loans this
2 Slayback, Kirkner and other
traders made the
New York Equipment Co.
CHICAGO
NEW YORK
a. m. It is possible that money will be brought over from
rally,
RAILWAY EQUIPMENT.
New York to-night. It is claimed by some that from this
S. A. KEAN & CO.
time on the clearing house rate will stand 4% at least. The
Boston special-Atchison officials say that in their opinion
10 WALL STREET, EW YORK
firmness of clearing house money is reflected on the outside.
the stock is unassessable In case of reorganization, however,
F. Cocrse, and Supe of Equipment.
Bankers,
The banks are not loaning on call to-day less than 85
stockholders would undoubtedly be willing to contribute rather
except is the case of very favored borrowers. Business on
than permit a foreclosure. Advices from Director C. K. Halli-
115 BROADWAY.
day. Topeks. Kan., say that the crop prospects of that State
time loans is at very low ebb and rates are nominal 21 4 or 5%.
PURNELL, HAGAMAN & CO-
Exceive to Check; allow Interest DO Time
are better than ever before known The wheat crop will be
Very little paper will be offered until rates become more settled.
twice that of last year and the oat crop three times as great.
Bankers and Brokers,
Deposits and deal in Choice lovernment Securities.
Philadelphia Market To-day,
Corn in the southern part of the State is already from 4 to
6
List of High Grade Municipal Bonds as application.
feet high, and commencing to tassel out.
President Strong
104 BROADWAY, NEW YORK
Philadelphia special, special feature of Phila-
also confirms the report. There is little question but that
delphis market to-day was come heavy liquidation in Reading
Kansas will have a tremendous business this year and
the
WE FURNISH MAPS
by bull houses-some 000 shares being sold at 221. Irwas
Starts, Deads, Orain, Provisions and Petrodeur
future of Atchison depends on the rates it gets for carrying.
all well takes by New York and good houses here. Outside
Deught and Seld for Fast or ** Marrine
For Redivery a Chippen which
The winter wheat crop has already commenced to move in
- and goared -
of this market is dull and traders are not inclined to do much
anill the situation is cleared.
some sections and will be moving freely by August.
OFFICES:
SURPAIN ALL OTHERS
With for Carder and about what
Wheeling & Lake Erie has declared the
regular
quarterly
Bine Scripgs - disking, Ref. Court & Mr. N/A
WE ALSO PREPARE AND PRINT
dividend of 17, payable Aug. 15. Books close Aug.
and
re-
- states Datel. 200 Water Street.
- - dre, for Sice Mage fer
Washington special. The Treasury accepted $35,600
open Aug. 16.
##
-
41 Wist His BL #,4 Colled
Annual Reports, 3 - for extimates
at 1061.
Boston special-Bank statement Shows
a decrease of
33 Center street, Bow Masse, Card.
RAND, MCNALLY & CO.
Produce Exchange. 2:15:-Wheat firmer on the late cables
$418,143 in the reserve.
Enver Wise - will Enderge through Main Orders
328 BROADWAY, N.Y.
and some reports of crop damage: S loads milling: no exports.
8.10 m-Kirkner bought 1,000 St. Paul and Tappinble
Com quiet; 24 loads export.
it up.
WX SHILDON LAWSON
[Menther New Yes fiteds Eachange
Spencer Trask & Co.
Mr. Duncan A. MacTarish. of the British Bank of North
Philadelphia special-The Insurance Company of North
Mender
Stack
Exchange
America, died this morning aged 72.
America declares a semi-annual dividend of 76% payable on
MARRY DAT, Member Mew York frack Exchange
BANKERS AND BROKERS,
Pittsburgh special-Oil brokers here are thoroughly sick
demand
CONST IL TRESTON
Member - Red Exchange
of dealing in futures, as it has Knocked business out entirely,
Nos. IS & 18 Broad Street, New York.
Boston special-The Boston & Albany is understood
to
be
and = movement was started on the Exchange to-day to get a
W, S. LAWSON & Co.
Albany, N. V.
conference of exchanges and have the amendment on that point
negotisting for the sale of its large granite building at Spring
Previdence, R.L.
Serstage
sold and the early removal of the offices established there to
rescinded. It seems likely to be carried.
Bankers and Brokers,
this city. The Connecticut River Railroad Co. is it is said
Transact a General Banking Business.
Philadelphia speelsi-Bank statement reserve decreased
disposed to buy the block, The Boston & Albany Co. asking
49 Excesse PLACE
14 ESCHANGE PLACE
Special attention given to Investment Securities
$$67,000.
price is $150,000, a figure much below the original cost of con-
Direct Wire: to each office, and to
The Baltimore American puts up a bullefin that there 19 a
struction
New York
Beston
PHILADELPHIA, LOSTON AND CHICAGO.
summer to effect that Kilmin has won and Sullivans backers are
Sales of stocks from 1 to 2-Listed 49,777 unlisted
holding the wire to hedge on bets.
1900. Total-Listed 244,180; unlisted 88,056,
Private Where # New Tab, - and Chicago
10
THE WALL STREET JOURNAL CENTENNIAL
dious Dow's innovative "Average" of 11 stocks -- the stock-price index whose later name would make Dow
and Jones household words.
The Wall Street Journal's first issue appeared on the afternoon of July 8,
1889. It sold for two cents a copy, or $5 a year, and was delivered to a few hundred Wall Street readers.
Page one news columns were dense with reports on railroads and the markets. The only non-business news,
a late bulletin, contained the paper's first typographical error: John L. Sullivan was boxing Jake Kilrain
"
and Sullivan was having the best of it and was sure to won."
Dow Jones & Co., which had built a repu-
tation as a financial news service, promised in the first issue that its newspaper would hew to these "funda-
The Journal covered
the railroads exhaustively
in its early years.
"I am glad to be among those to congratulate The
Wall Street Journal. The useful service which it
has given to the financial community is known to
all and I wish at this time to express my best
wishes for its continued success."
-John Pierpont Morgan Jr.
Financier
On the occasion of Dow Jones' 50th Anniversary in 1932
119
12
12
THE WALL STREET JOURNAL CENTENNIAL
mental principles": "To get the news.
"To publish it instantly, whether bull or
bear.
"No operator controls or can control our news. Any man can say in our
columns substantially what he pleases over his own name.
"We are proud of
the confidence reposed in our work. We mean to make it better, and we mean
to have the news always honest, intelligent and unprejudiced."
The Gay
Jessie Barron
Nineties were heady days for the Journal and Dow Jones as a rapidly expanding
economy needed more and faster information. The Dow Jones News Service -- or Ticker -- was launched.
Clarence W. Barron
<<<<<<<<<<<<<<<<<<<<<<<<<
14
THE WALL STREET JOURNAL CENTENNIAL
The Journal opened a Washington bureau and added a morning edition. Nearing its 10th birthday, the
paper in 1899 told readers that it would continue "in all things first, and in many things alone"; that circula-
tion had grown to 10,000, and that a new press was on order "to provide once and for all any requirements
that may arise." (Today, the Journal is printed in 23 plants in the U.S. and overseas.)
Though the Journal
covered subjects of sometimes bewildering complexity, the effort was begun to write simply and clearly.
Charles Dow favored homely analogy and everyday language, as in this editorial comment about the public in
the stock market: "Nobody who plants corn digs up the kernels in a day or two to see if the corn has sprouted,
President Calvin Coolidge
and his wife, Grace, visit
Clarence Barron at his
Cohassett, Mass., summer
home, 1925.
IIIIIIII
10m
#1
16
THE WALL STREET JOURNAL CENTENNIAL
in stocks most people want to open an account at noon and get their profit before night."
In 1902, the
Journal's owners sold Dow Jones for $130,000 to Clarence W. Barron, a newspaperman whose descen-
dants are the controlling shareholders of Dow Jones today. The portly "C.W." -- he weighed more than 300
pounds -- was constantly on the go, dictating messages at all hours; some Journal editors received dozens of
notes daily. Barron also published financial newspapers in Boston and Philadelphia, and his wife, Jessie,
took an active role in running the Journal.
Wall Street Journals of the Barron era chronicled a nation under-
going fundamental changes. Henry Ford astonished the industrial world in 1914 by raising wages to $5 a day.
Ford Model-T
assembly line, 1914.
"The Wall Street Journal, as long as I have known
it, has stood for honest thinking upon financial
questions and has been very rigid in its insistence
upon plain honesty in financial practice."
- Henry Ford
Automobile Pioneer
On the occasion of Dow Jones' 50th Anniversary in 1932
S
SINTE
18
THE WALL STREET JOURNAL CENTENNIAL
The Journal fulminated that " to double the minimum wage is to apply Biblical or spiritual principles into a
field where they do not belong." A story in the same issue gave instructions on the new federal income tax.
(Normal rate: 1%.)
"The business of America is business," said President Coolidge in the Roaring Twenties.
The Journal stepped up coverage of booming new industries and a stock market boiling with frenzied specula-
tion. Barron, who died in 1928, saw circulation push toward 50,000. In 1929, the Journal announced a new
Pacific Coast Edition to be published in October in San Francisco -- an expansion spearheaded by Hugh
Bancroft, Barron's son-in-law and successor as company president, and Kenneth C. Hogate, Journal
Newly arrived immigrants
at the end of the century.
20
THE WALL STREET JOURNAL CENTENNIAL
managing editor.
Eight days after the first issue of the Pacific Coast Edition, the stock market crashed. But
there was no consensus then about the long-term meaning of Black Friday. On the following Monday, the
Journal wrote: "The sun is shining again, and we will go on record as saying some good stocks are cheap
because John D. Rockefeller said it first. Only the foolish will combat John D.'s judgment."
The crash and
ensuing Great Depression battered the Journal. Circulation plunged to 28,000 and red ink flowed. It seemed
that in a depressed America, with Wall Street in disrepute, there was no place for a newspaper specializing
in finance.
Out of this shock -- and with agonizing struggle -- was born the modern Wall Street Journal. In
Pacific Coast Edition
THE WALL STREET JOURNAL.
ANDARD CUTS
NORTHERN PAC.
News
GOODRICH MOS.
CRUDE OIL PRICE
NET ALMOST
ANDERSON FOX
SUTRO Co.
Financial
Position
Less,
Revealed
Merger
Hood
FIOX
COSTS
EARNINGS
---
Blvth
HARTLEY
I
Spring
Street
Vendibe
Selling
Brokers
Sentiment
Il
Strassburger
&COMPANY
In the 1920s and 1930s,
WM
CAVALIER
&Co.
CLOSE
AMERICA
McDonnell&Co
INVESTMENT
BARTH
CO.
COMPANY
the Journal boomed and
I
RUSSELL MILLER
CHASE
1
crashed right along with
MUNICIPAL
& CO.
First
Trust
Ca
ATION BONDS
Crocker
First
Company
STOCKS
Advertising
!
Post and N
i
TRANCISCO
DECUMBES
-
Company
"Soning the
the U.S. economy.
CONTINENTAL ILLINOIS
PYNCHON&CO.
LOGAN BRYAN
BANCAMERICA BLAIR
COMPANY
EVAN THOMAS
MISSING
Young woman. 18 years of age.
SIGNS
who has been selling apples
here for the past week is
missing. She is an expectant
mother, not yet noticeable,
and my beloved wife Has been
enticed away Nov. 20: Please
advise me of any informa tion
of her whereabouts.
I AM IN DEEP SORROW
"
DESCRIPTION
Height 5 feet 4in weight 100 les
78 years of age dressed
all m brown.
22
THE WALL STREET JOURNAL CENTENNIAL
the 1930s, Hogate, who had become president, and William H. Grimes, manag-
ing editor, took cautious steps to broaden the Journal beyond a trade paper for
the financial community. Political and international news became more impor-
tant. Page one was overhauled and the popular What's News daily digest
appeared. The afternoon edition was dropped. Promising young newsmen --
Kenneth C. Hogate
including Barney Kilgore, William F. Kerby, Buren McCormack, Robert Bottorff
and Vermont Royster -- were hired or given new challenges.
In the 1940s, the "Great Re-Making" of the
Dust storm in Oklahoma, 1930s.
"The Wall Street Journal has taken not only a
useful but quite essential part in the financial and
economic development of this country..." "
-Walter P. Chrylser (left)
Chairman, Chrysler Corp.
On the occasion of Dow Jones' 50th Anniversary in 1932
ST.
24
THE WALL STREET JOURNAL CENTENNIAL
Journal was pursued aggressively under Kilgore as managing editor and later as president. Kilgore's basic
idea was to build a new Wall Street Journal atop its solid foundation as the premier financial paper. The
paper would stress covering the broad scope of business -- everything related to earning a living. News
itself was redefined: It wasn't limited to what happened yesterday, but included trends and issues reshaping
the business world and society, in small ways and large.
The Journal's geographic market also was rede-
fined. A national community was perceived, in which a business person in Portland, Maine, had the same
information needs as one in Portland, Oregon.
As this transformation of the Journal got under way, "it was
WAR BONDS
The Journal focused on
the homefront during
World War II.
and
26
THE WALL STREET JOURNAL CENTENNIAL
hardly surprising that there was an electric air in the news shop just off Wall Street," said Royster, now edi-
tor emeritus. The extraordinary staff performance in the "Pearl Harbor Journal" of 1941 had raised the
sights on what was possible.
(Kilgore's colleagues were pleased that one of his ideas was abandoned. In
1947 he worried that the paper's name might be a drag on growth. Wasn't it too parochial for a publication
with national aspirations, and didn't people harbor a crash-induced dislike of Wall Street? He suggested
"World's Work" as a new name.)
Kilgore insisted that business stories need not be dull. "Don't write
banking stories for bankers," he told reporters. "Write for the banks' customers. There are a hell of a lot
New York copydesk, 1940s.
THE WALL STREET JOURNAL CENTENNIAL
27
more depositors than there are bankers." Lively, in-depth news features became a Journal page one trade-
mark.
Readers approved and circulation rose nearly sixfold, to 166,000, in the 1940s. In the 1950s it
climbed to 707,000 and the Saturday paper was dropped. In 1966, a year before Kilgore died, Journal circu-
lation hit one million. It had taken 77 years to reach this milestone. Within 15 years there was another
doubling, to two million, in 1981, and the Journal had become the nation's largest daily.
To serve a
national audience with timely news, regional printing plants were opened in 15 states. Dow Jones' engi-
neers, beginning with Joseph J. Ackell in the 1930s, pioneered technological developments to make a
Dallas plant typesetters, 1949.
WITHING
28
THE WALL STREET JOURNAL CENTENNIAL
national newspaper possible - from electro-typesetting machines to the present
satellite transmission of full pages to printing plants.
Kilgore's successors in
WALL STR
THE
the news department continued to keep pace with readers' information needs in
a world of dynamic economic and social changes. Coverage was broadened fur-
President Harry Truman
ther, recognizing that business readers' interests go beyond their pocketbooks
and include health, education and social forces affecting their lives. The Journal received increasing journal-
istic honors for comprehensive stories -- not just on business, but also on science, politics and international
Bernard Kilgore
UNITED AIR LINES
The airline industry
burgeoned after World
War II.
Aven -
- the - -
$
/
"CLip
order
30
THE WALL STREET JOURNAL CENTENNIAL
affairs.
The Journal staff has been awarded 13 Pulitzer Prizes since 1947, when Grimes was honored for
editorial writing. His successors, from Royster on, have continued to comment editorially with vigor in the
spirit of Grimes, who wrote in 1951: "We believe in the individual, in his wisdom and his decency. We
oppose all infringements on individual rights, whether they stem from attempts at private monopoly, labor
union monopoly or from an overgrowing government."
While the basic editorial-page philosophy of the
Journal has been a constant, in recent years dissenting viewpoints have been introduced on opinion pages
through use of more outside contributors and columnists. In 1983, a Leisure & Arts page was added.
The
Vermont Royster
Heavy industry was
one of the Journal's
primary postwar beats.
32
THE WALL STREET JOURNAL CENTENNIAL
paper's core coverage of business and finance was strengthened in the 1980s as the computer revolution
accelerated, the pace of mergers and takeovers quickened, financial markets grew more complex and the
global economy became more interdependent.
Recognizing the increasing internationalization of business,
decisions made by former managing editors William F. Kerby and Warren H. Phillips, who had become lead-
ers of the company, led to the start-ups of The Asian Wall Street Journal in 1976 and The Wall Street
Journal/Europe in 1983.
Mindful of pressures on readers' time, editors introduced new indexes, more
graphics and, in the domestic Journal in 1988, the three-section format that allows better organization and
Television, Sputnik and
Levittown helped trans-
form America during
the 1950s.
34
THE WALL STREET JOURNAL CENTENNIAL
display of news and statistics.
The Journal's first issue in 1889 made it clear
that the paper would be a prime medium for advertising -- at 20 cents a line
then. In more recent years advertising managers -- including Robert M.
Feemster, Theodore E. Callis and Donald A. Macdonald -- positioned the paper
as "The Only National Business Daily" and as a publication that competes for
William F. Kerby
advertising with national magazines, not local newspapers. Advertisers were
drawn increasingly to address the Journal's growing and influential readership. Today, the introduction
Little Rock, Ark., 1957.
36
THE WALL STREET JOURNAL CENTENNIAL
of subregional editions is broadening the advertising base further. In market
share, Journal advertising exceeds that of the three major business magazines
combined.
The monumental task of distributing more than two million
Journals daily has spurred modernization in circulation. And to speed papers to
The Wall Street Journal
U.S. readers, the Journal started its own delivery system, which now serves
entered the space age in
about half of all subscribers.
Shortly after the Journal first appeared 100
the 1970s.
years ago, the Census Bureau declared that the frontier no longer existed in the
First man on the moon, July 1969.
IIIIIII
38
THE WALL STREET JOURNAL CENTENNIAL
United States. But, just as the early Journal wasn't to be bound by the confines of
Wall Street, the newspaper and its sister enterprises at Dow Jones continue to
move toward ever-expanding horizons. The men and women who produce the com-
pany's publications and services have a zest for pushing back the frontiers in the
gathering and distributing of information vital to business and vital to business peo-
ple as citizens. Through their efforts, electronic publishing has come of age along-
The Wall Street Journal/
side print, and today Dow Jones Information Services offers computerized retrieval
Europe started printing
At home and abroad,
in 1983.
from Wall Street to Main
THE ASIAN WALL STREET
Street, the 1980s presented
the Journal with new
The Asian Wall Street
reporting challenges.
Journal was launched
in 1976.
105
(
USA
NASA
Discovery
McDonald
McDonald's
700 fo
10:30
40
THE WALL STREET JOURNAL CENTENNIAL
of the Journal's contents and many other kinds of information.
The motivation that transformed handwritten
news bulletins into a global business newspaper -- to serve the customer better -- is stronger than ever as The
Wall Street Journal enters its second century. The dedicated people who produce the Journal today echo a
message "To Our Readers" that was printed at the turn of the century:
"It is a source of much gratification to
us to find our Journal SO well appreciated We hope and expect to improve the Journal as time goes on
"
Dow Jones Information
The introduction of a
11:42:32
Services came of age along-
three-section paper in October
side print.
1988 was another step in the
Journal's evolution.
THE WALL STREET JOURNAL
Limed
Options
-
Kardam
-
1989 Dow Jones & Company, Inc. All Rights Reserved.
(19
MONEY & INVESTING
Offerials
you
CIP
Dividend Industry Husiness Groups
News
CG
Ann's
Financing
C10
ARM
C1G
Foreign
CII
Trading
CII
C20
Stock Price Strides Have So Shert Did Left the share Interest Shor
Its Short
A. Gear's Stock Rose
1950 Dow Jones e Company, Inc. All Rights Reserved.
capitalism to fund new technologies
Technology: Japan turns to venture
Page B
THE wall STREET JOURNAL.
Advertising: In ad world, 'vice
president' means just one of the gang
MARKETPLACE
Law: Prosec
Page B6.
after Illinois
Who's News:
is out, as tu
ENTERPRISE BYBUCK BROWN
On Earnings Claims
FTC May Lay Down Law
New But Sweeteners Head for th
One Entry
EDERAL regulators are
and them
from
Already Raises
Satisfying America's Sweet
F
state franchise laws
considering preempting
in the But the name
code means franchisers change
Estimated of per-capita consumpt:
may earnings claims. and the states on
such from using trade fran-
Safety Concerns
various types of awer:-
chisees may not be able to stop
federal nearly all approach. of them agree with the
fight back-even though
Marc computer software systems, and
as training manuals secrets,
Rudnick P. Seidler. a partner says
Staff Reporter of THE WAI
By ALIX M. FREEDMAN
ulations, except in rare instances reg.
take precedence over federal
Currently. state franchise laws
During the '80s
chisees That could allow some fran-
firm. & Wolfe, a Chicago with law
pink packets
FOCUS ON
their businesses under
to continue opera"
name, Mr. Seid"
FRANCHISING the federal rules
chise larger
ricter of the two
deral Tree
STREET have
JOURNAL the U.S.
Reserved
PRINCETON NEW
ely
WALL
&
Company,
THE
Jones
1989
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42
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