Grumpy Editor

BostonNOW folds, just short of one-year-old mark

A growing, almost year-old free daily newspaper in Boston published its last issue Monday because of economic conditions --- in Iceland.

It’s another example of global influence in U.S. operations.

The closing of BostonNOW, a so-called commuter paper with 119,000 daily circulation, is a result of deteriorating economic conditions --- including soaring interest rates --- in the North Atlantic island nation, location of its primary investor, Baugur Group of Iceland, notes Grumpy Editor.

The paper would have marked its first full year on Thursday and was on track to reach the profit column in year three, “just as the business plan called for,” says publisher Mike Schroeder.

“The death of any newspaper is a sad thing,” adds CEO Russel Pergament, “but the death of a vibrant, flourishing newspaper because of economic turmoil thousands of miles away is beyond sad and is something we never anticipated and for which we were totally unprepared.”

BostonNOW’s editorial content, especially its strong local reporting, has been picked up dozens of times by Boston's paid dailies (Globe and Herald) and TV outlets, relates Schroeder.

The Economist magazine in January lauded BostonNOW as one of the finest free dailies in the United States.

Baugur Group’s other investments include British retailers House of Fraser and Karen Millen.

GAO slaps Postal Service for postage-paid meals

Those who have sent off their tax forms to the Internal Revenue Service by today’s filing deadline probably would like to celebrate that annual gritty task with a cool beverage and a fancy meal, feels Grumpy Editor.

The U.S. Postal Service, inundated with last-minute filers today, already did some celebrating.

As an example of where tax money, along with ever-increasing postage stamp costs go, four postal groups from California entertained corporate clients with a five-hour meal at Ruth’s Chris Steak House in Orlando, Fla., reports Mark K. Matthews, from the Washington Bureau of the South Florida Sun-Sentinel, Fort Lauderdale. His story is based on a Government Accountability Office investigation.

GAO investigators call the feast “abusive” in its extravagance.

From shrimp cocktails to choice steaks --- and beverages such as Courvoisier, Belvedere and Johnnie Walker Gold Label --- the tab, charged on government credit cards in 2006, came out to an average cost of $160 per person, according to a GAO report, adds Matthews.

That’s a lot of postage.

“What we spend is what we make.  The Postal Service is funded solely by our products and services,” says a spokesman.

“For the most part, my (purchase of) stamps helped pay for the dinner,” counters Gregory Kutz, author of the GAO report.

Fox Sports irks baseball viewers with abrupt cutaway

Picture this:  A long five hours after the start of Saturday afternoon’s televised Yankees-Red Sox baseball game in Boston with the score 4 to 3 in Boston’s favor, two outs and perhaps the final Yankee at bat with a 3 to 2 count at the top of the ninth inning, then --- without warning --- cars zoom by the camera at 8:55 p.m. Eastern, as Fox Sports decides on a sudden cutaway to Avondale, Ariz. for the NASCAR Sprint Cup race, observes Grumpy Editor.

Those without cable, watching the broadcast network coverage of the matchup from Fenway Park, probably had a few choice words for Fox Sports, which abruptly switched the final minute of diamond action to the FX cable channel.

Both Fox Sports and FX are part of the News Corp. family.

Now, any producer with common sense would have waited another 60 seconds for the conclusion of the widely-watched baseball game, especially when loyal fans (and Fox viewers) patiently sat through it in two parts.  The game that started at 3:55 p.m. Eastern had a rain-delayed break that lasted two hours and 11 minutes before picking up.

Only a few days earlier, some viewers grumbled as Fox Sports passed off a taped baseball game as “live.”

In that case, both weekly and daily TV listings for April 4 showed the Los Angeles Angels and the Minnesota Twins game as “live” action.  That was compounded with no on-screen indication that the game, already covered in the morning sports pages, was played the previous night.

Cash-strapped occupants far from being ‘homeowners’

The lead in an Associated Press “U.S. expands mortgage help” story in newspapers and radio/TV broadcasts Thursday reported, “The Bush administration announced new steps to help more homeowners head off foreclosure…”

From news writers to members of Congress, the word being used to describe financially-distressed people residing in properties and facing foreclosures is homeowners.

Use of “homeowners” is premature.

In the current wave of foreclosures, Grumpy Editor maintains one cannot be labeled a true homeowner when that person moves into a dwelling with no or little cash down payment and makes interest-only or other small monthly payments.  The occupant of a house is not officially owner of that property until the purchase price is satisfied --- either cash plunked down all at once when escrow closes or over time via a fully-paid mortgage.  When that happens, a deed is filed with the county recorder.

That’s when a home buyer, as a full-fledged homeowner, can break out the champagne.

Same thing with buying a vehicle.  That snazzy, gadget-loaded red car doesn’t fully belong to its buyer until full payment is made.  At that point --- and with certificate of title or “pink slip” in hand --- the driver becomes the real owner.

Grumpy Editor’s end-of-week leftover notes:

The much-in-the-news-MD-80 aircraft has been identified in some stories as a Boeing MD-80.  To be technically correct, the passenger jets --- entering service in 1980 --- were manufactured by McDonnell Douglas Corp. (thus, the MD identification), which merged with The Boeing Co. in 1997… In the tough PR-assignment department:  Chinese officials are searching for a public relations firm to bolster its reputation prior to this year’s Olympic games…Los Angeles Daily Journal, a legal newspaper, this week started operating without an editorial copy desk, a neat trick when it comes to writing headlines and reading copy to spot an out-of-place comma…The Newseum today opens in a new $450 million building in Washington, D.C.  It occupies 250,000 square feet in seven levels and contains 15 theaters, 14 galleries, two TV studios --- and a Wolfgang Puck restaurant.  But some folks already are complaining about the stiff admission fee:  $20 for adults, $13 for children ages 7 to 12…While weather predictions are still fuzzy two or three days out, William Gray, a leading hurricane forecaster, expects eight Atlantic hurricanes, including four major ones, during the upcoming hurricane season…An Alan Greenspan-type line in a major PR firm's news release that makes an editor re-read it a few times:  “Homewood Suites offers developers a competitive edge in the typically low-amenity focused, low-service oriented airport market through brand-wide initiatives to better the product”…Hard to believe, but  a British radio broadcaster, during a breakfast show this week and apparently the only person in the studio, forgot to press the button that turns on the microphone.  So he talked to himself for an hour.

Glum economic news brings responses from readers

There’s a lot of it these days --- bad economic news.

The question is:  Do constant heavy doses of gloomy items affect newspaper readers and radio/TV listeners’ moods which are then reflected in the monthly Conference Board Consumer Confidence Index…setting off another round of pessimism?

Grumpy Editor cites these news items, getting a play Wednesday, that are among developments certain to affect this month’s Conference Board report (based on input from 5,000 households), to be released April 29:

·  Home sales fell in February to the lowest reading since the index began seven years ago.

·  Four airlines ceased operations in a week.  Which will be the next?

·  Minutes of the March 18 Federal Reserve meeting show some policy makers felt falling home prices and financial market turmoil "could lead to a more severe and protracted downturn."

·  Small business owners’ confidence in the economy is plummeting, prompting cutbacks in hiring and expansion plans.

·  Consumers, worried about retirement, show the weakest worker confidence in seven years.

·  Former Federal Reserve Chairman Alan Greenspan said the U.S. economy is in a recession.

·  Energy officials, in a sharp upward revision, expect oil to average $101 a barrel this year.

Negative coverage complaints are starting to flow to editors.

For example, Ted Vaden, public editor of the (Raleigh, N.C.) News & Observer, sums up messages from uneasy readers with, “Jeepers, can't the N&O find anything positive to say about the U.S. economy?”  He adds, “That's a question editors hear increasingly as the economy slips into ... whoops, performs less well. The seemingly unceasing torrent of bad business news weighs on readers' minds and, some think, makes things worse.”

Some readers, Vaden continues, also complain that his paper’s portrayal of a negative national economic picture doesn't adequately take into account more positive conditions in local markets. “Real estate people, in particular, have complained,” he points out.

Vaden says he talked to North Carolina State University economist Michael Walden to see if there is any validity to the notion that negative press makes a bad economy worse.  To some extent, the economist feels that's true, relays Vaden.

He quotes Walden saying, “Consumers, if they don't feel confident, won't spend money, and that's what we need to bring us out of a down cycle. There probably is some impact on consumer confidence of people reading about the state of the economy."

Burson-Marsteller puts positive spin on losing Colombia

Usually when a public relations firm loses a major account, gloom envelops the office and some staffers get pink slips.

But when the Colombian government terminated a $300,000 contract with Burson-Marsteller four days ago, the 55-year-old PR firm --- turning a negative into a positive --- touted it as “good news,” notes Grumpy Editor.

The split with Colombia occurred soon after it was revealed that Burson-Marsteller’s CEO Mark Penn, also chief strategist for the Hillary Clinton campaign, met March 31 with Colombian officials on a free trade issue that was at odds with the presidential hopeful.  Penn stepped down as chief strategist on Sunday.

Penn’s dual role with the Clinton campaign and his PR firm had caused some grumbling.

The Colombia contract, signed 13 months ago, involved providing communications advice and media relations for Colombian Embassy officials in Washington in connection with the proposed U.S.-Colombia Free Trade Agreement, which President Bush has urged Congress to approve.

A positive spin on the loss of the contract was given to Burson-Marsteller staffers via an e-mail, which, according to The Wall Street Journal, mentioned:  “The good news is that while Mark will continue to advise the Clintons and the campaign, this change will afford him more time to do what he does best --- provide great advice and direction to some of our largest clients.”  The firm also asked that clients be informed that the firm’s “business in the U.S. has never been stronger” and that Penn’s return to day-to-day business will only see momentum improve.

Burson-Marsteller, part of Young & Rubicam Brands, a subsidiary of London-based WPP Group plc, describes itself as “a global public relations and communications firm providing strategic counsel in the digital age.” It operates in 59 countries via 57 wholly-owned offices and 46 affiliate offices.

Greenspan ups ‘R’ outlook as ‘more than 50 percent’

Usually, when former Federal Reserve Chairman Alan Greenspan speaks --- especially when the “R” (for recession) word is used --- Wall Street listens, and the Dow Jones Industrial Average often reacts with a drop, as occurred several times last year.

But apparently that wasn’t the case Monday when the Dow climbed more than 100 points early in the session, only to fall back and close up 3.01 points, even after Greenspan’s remarks appeared in the Madrid-based El Pais newspaper, notes Grumpy Editor.

This time, the trading turnaround to an almost-flat close was attributed to worry that a large number of companies will post sharply reduced first-quarter earnings.

No mention of Greenspan was made.

However, Greenspan’s economic outlook in the interview did show a minute change from earlier utterances.  He told the Spanish newspaper:  “I would not describe the situation we are in as a recession, although the chances that we’ll have one are more than 50 percent.”

Four months ago, when he repeated earlier statements, he said prospects for a recession are about 50-50.

Greenspan also told El Pais that the U.S. has not yet entered a recessionary state marked by sharp falls in orders, strong rises in unemployment and intensive weakening of the economy.

“We would have to see signs of this intensification; there are some, but not many yet,” added Greenspan who ended his 18-year term as Federal Reserve chairman 27 months ago.

Fox Sports tosses fast curve ball, tricks TV viewers

There’s nothing like being bamboozled by something on TV.  No, not one of those late night-early morning paid programming 30-minute pitches.

It’s sports.  A baseball game, to be exact.

And it really singed Grumpy Editor.

After a hard day at the keyboard on Friday, it was time to kick off the shoes, settle back and watch an early-season baseball game.  Checking the listings in TV Week, which comes with the Sunday paper and verifying it in the same-day TV listings from the morning paper, both showed the Los Angeles Angels playing the Minnesota Twins in a live game. 

Last two innings were viewed.  Since the Twins play in an indoor stadium, one cannot tell whether it is day or night.

But Grumpy Editor discovered Fox Sports West 2, part of the News Corp. family, is rather tricky.  No indication in the upper right or upper left, or anywhere else on the screen, that the game was played the previous night. 

Simply, it was a replay with no clue that the game already was covered in the morning sports sections.

That game from Minnesota was followed by another baseball matchup on the same cable channel:  Texas Rangers at Los Angeles Angels of Anaheim…from Anaheim.  Wow!  The Angels made the 1,513-mile journey from Minneapolis to their home ball park in about a minute.  But this time it really was live.

Network and cable television operations, in many cases, like to hide the fact that taped shows are days or weeks old.  Properly, C-Span quite often, especially with speeches or interviews, indicates the original airing date in an upper corner.

But programs on other networks, including NBC’s Tonight Show with Jay Leno and CBS’ Late Show with David Letterman, conceal original airing dates of vintage shows.  Thus, it’s not unusual to hear tired Thanksgiving jokes near Valentine’s Day or even a year later.

Grumpy Editor advocates the FCC --- for talk shows, sports events and other time-sensitive happenings --- should issue a ruling making it mandatory that original date of airing be indicated in the upper right-hand corner of replayed material.

What do you think?  Unload your thoughts here.

National media remain quiet on Nevada health scare

Imagine if unsafe health care practices, putting 40,000 patients at risk of exposure to hepatitis B and C, and HIV, occurred in Long Island, Washington, D.C. --- or Africa or South America or Asia.

Would it make front page news, lead off radio on-the-hour news and grab coverage on health-conscious TV morning shows and nightly newscasts?

You betcha, barks Grumpy Editor.

But when it happens in Las Vegas, it stays there.

The medical problem stems from unsafe practices by doctors and nurses at the Endoscopy Center of Southern Nevada, Las Vegas, between March, 2004 and Jan. 11.  Officials say medical personnel reused syringes and contaminated single-use vials.

Authorities also are going through files and computers, seeking evidence of medical fraud.

As pointed out in a March 17 Grumpy Editor posting, the health crisis has attracted the attention of and investigators from Centers for Disease Control and Prevention, the FBI, Las Vegas police, State Board of Health, State Bureau of Licensure and Certification, Southern Nevada Health District, State Board of Nursing, State Board of Osteopathic Medicine, Nevada Board of Medical Examiners, state attorney general’s office, governor’s office, Clark County district attorney’s office --- and personal injury lawyers and their investigators.

With all this activity following a warning that went out Feb. 27, Washington lawmakers seem unconcerned despite efforts by Nevada representatives and one of its senators.

They are trying to alert House and Senate colleagues to set committee hearings on a health crisis that saw the largest notification of its kind in U.S. history. 

Sen. John Ensign (R., Nev.) sums it up with:  “They think it is a Nevada problem.”

But Senate Majority Leader Harry Reid (D., Nev.) declares:  “Until there is more evidence this is a national problem, I don’t think you are going to have a lot of members of Congress diving into this.”

Grumpy Editor’s end-of-week leftover notes:

Another tub thumper:  On last Sunday’s 60 Minutes on CBS, Lesley Stahl, in a segment interviewing former Vice President Al Gore on environmental crusade efforts, mentioned the former vice president is interested mainly in being “PR agent for the planet”…An April Fool caper, via an ad in the Washington Post’s section B, caught the newspaper by surprise.  A lawyer ran an “in memoriam” tribute relating to a very-much-alive business consultant and long-time friend.  A retraction ran April 2…In another scolding linked to advertising, the National Advertising Division of the Council of Better Business Bureaus said Wal-Mart Stores needs to change its pitches to avoid suggesting its shoppers pocket an annual $2,500 per family rather than emphasizing the big-box retailer’s efficiency and size drive down prices across the economy, generating $2,500 savings regardless of where consumers shop…Look for heavy press attendance:  A New York City organization plans to spotlight a discussion on estate planning.  But this is no ordinary session for the gray-hair crowd.  Presented by a dog club, the emphasis will be “with your pet in mind.”  Business attire is required.  But no furry friends will be allowed at the April 24 event that includes a cocktail reception.

North Korea continues to stall nuclear weapons talks

Not much has changed with North Korea since almost a year ago when a deadline passed that would allow nuclear inspectors to monitor and verify the shutdown of its Yongbyon reprocessing facility, the communist nation’s main source of nuclear weapons material, north of Pyongyang, notes Grumpy Editor.

Another deadline, at the end of last year, to declare its nuclear weapons programs --- as required under an agreement with the U.S., South Korea, China, Japan and Russia --- also was missed.

Now, the thinking is North Korea will stall further, awaiting the new occupant of the White House.

Assistant Secretary of State Christopher Hill on Wednesday urged North Korea to respond “in the next few days” to advance the stalled six-party talks.  Pyongyang would have nothing to gain by waiting for a future U.S. administration to take office after November’s presidential vote, he added.

North Korea’s routine has been to talk, followed by pauses, then more talks, followed by no final action.

That has been its procedure since 1953 when the Korean War ended with a cease fire.  North and South Korea technically remain at war with no peace treaty.

China, one of the six nations in the long-running arms talks, provided heavy backing to North Korea during the 1950-1953 war, entering the conflict in the fall of 1950 and succeeding in driving U.S. forces from progress made in the north.  Its troops killed or captured thousands of U.S. military personnel and managed many prisoner of war camps in North Korea.