Grumpy Editor

Navy ‘tight’ on details involving sub-cruiser collision

Details remained scant two days after an unusual collision involving a U.S. Navy submarine and a U.S. Navy cruiser off the East Coast, notes  Grumpy Editor. 

On Saturday, a Navy news release --- the basis for a brief Associated Press story picked up in print and broadcast news --- identified the vessels as the submarine USS Montpelier and the Aegis cruiser USS San Jacinto. 

The news release mentioned the collision occurred at about 3:30 p.m. Saturday, no one was injured and the extent of damage to the vessels was not clear. 

Perhaps it was the weekend, but sparse details put the information released to media on par with limited World War II reports. 

The Montpelier was launched Nov. 14, 1986 while the San Yacinto was launched Nov. 14, 1986.  Both call Norfolk, Va. home port. 

A story on the incident in the Virginian-Pilot, which covers the vessels’ home port, followed the AP information. 

However, Luis Martinez, in an ABC News posting 5½ hours after the collision, reported three ships (including the aircraft carrier Harry S Truman) off Florida’s northeast coast were participating in an anti-submarine exercise in preparation for an upcoming deployment.

Martinez quoted a Navy official saying the bridge watch aboard the San Jacinto saw the submarine Montpelier rise to periscope depth about 100 to 200 yards ahead and the bridge ordered an “all back,” but still collided with the sub. 

According to the official, Martinez continued, initial assessment of damage was that there was a complete depressurization of the sonar dome aboard the San Jacinto. 

After the collision the official said the submarine surfaced and communications were established between all the ships on the scene, Martinez added, and the two vessels involved were operating under their own power.

Confusion continues on inflation: trending up or down?

So which way is inflation headed --- up or down?  With release of the consumer price index for April, confusion still reigns, notes Grumpy Editor. 

The headline on a May 15 news release from the Bureau of Labor Statistics read:

CPI all items unchanged in April as decline in energy index offsets other increases

Working off the BLS data, a Wall Street Journal story followed that with its own headline:

Inflation Eases as Gasoline Prices Fall 

The BLS lead spelled out, “On a seasonally adjusted basis, the Consumer Price Index for All Urban Consumers was unchanged in April after increasing 0.3 percent in March.  The index for all items less food and energy rose 0.2 percent in April, the same increase as in March." 

That’s where the confusion starts with words unchanged and rose in the same paragraph. 

As the WSJ pointed out, the CPI “measures what Americans pay for everything from breakfast cereal to doctor visits.” 

So that was heralded as unchanged, according to the BLS, from March to April. 

But then “core” prices entered the picture. 

The BLS news release indicated, “The index for all items less food and energy rose 0.2 percent in April, the same increase as in March.  Increases in the indexes for shelter, used cars and trucks, medical care, airline fares, new vehicles and apparel all contributed significantly to the April increase.” 

With that, the WSJ story added core prices “were up 2.3 percent from a year ago --- matching the biggest 12-month increase in this category since September 2008.” 

Now are you briefed on which way inflation is going.

 

Editors spotlight Disney CEO Iger’s departure --- in 2016

It was interesting to note Friday’s heavy press play that emphasized Robert Iger will step down as chief executive officer of The Walt Disney Co. --- even though the event doesn’t happen until four years from now, observes Grumpy Editor. 

That action in The Wall Street Journal, for example, took up almost half a page under the headline, “Disney’s Iger Plans Exit.” 

Actually, the first paragraph of the Oct. 6 news release from the Burbank-based media conglomerate --- that includes ABC, ESPN and amusement parks in its family --- read, “The Walt Disney Company (NYSE: DIS) Board of Directors announced today it has agreed to extend Robert A. Iger's contract through June 2016 as part of the company's ongoing succession planning.” 

The Los Angeles Times version was more in line as to the development with the headline, “Disney CEO Bob Iger signs new five-year contract.” 

Under the agreement, effective 10 days ago, Iger will assume the role of chairman in addition to chief executive officer following Chairman John E. Pepper's retirement at Disney's annual shareholder meeting next March. Until then, Iger will remain president and chief executive officer.

Iger will hold the positions of chairman and chief executive officer through March 31, 2015, at which time a new chief executive will be named.

Then Iger will continue as executive chairman until June, 2016, when he is expected to retire from the company at age 65. 

The use of terms such as “will step down” and “exit” connote a right-away happening --- misleading to some readers and investors. 

Nevertheless, some editors got excited and gave it much print space.

First Lady shops ‘incognito’ in Target store near D.C.

Public relations folks at Target Corp. must be jubilant following the “incognito” appearance of Michelle Obama at the retailer’s Alexandria, Va. store, notes Grumpy Editor. 

It’s not every day that one finds the nation’s First Lady pushing a Target shopping cart loaded with household necessities. 

The event brought much media coverage for Target --- better then a news release from the New York Stock Exchange-listed company. 

An Associated Press story on Friday mentioned Michelle Obama was “hard to recognize in a baseball cap and sunglasses.” 

Sure. 

Snapping away at the mystery shopper from the White House was AP photographer Charles Dharapak --- who just happened to be in the store, just outside Washington, at the time.

Of course, the unusual in-store photo shoot didn't attract much attention.

Dharapak obviously spots a notable “incognito” person when he sees one.  A lensman working out of AP’s Washington office, he joined the news service in 1995 and later became chief photographer and photo editor for AP in Jakarta, Indonesia. 

From the news reports, shoppers and employees, it seemed, also did not notice a bevy of Secret Service agents in and around the store or the lineup of special vehicles outside the front entrance.

After Michelle Obama, trailed by an assistant, spent at least a half hour in the store, AP reported, “She was recognized only by the cashier at checkout.”

 

Presto! August Social Security payments flow on time

Following several weeks of scary-to-seniors dire warnings --- from President Barack Obama to national print and broadcast media --- that more than 45 million Americans may not get their August Social Security payments if the debt-ceiling crisis was not resolved, lo and behold, just minutes after the debt-ceiling vote passed in Washington, the Social Security Administration issued a news release saying benefits will be paid on time, notes Grumpy Editor. 

Whew! 

Imagine this miraculous speed:  With the green light and to meet the next-day (Aug. 3) dissemination, the U.S. Treasury Department immediately cranked up its check-printing presses or geared for direct deposits to millions of recipients.  Then, for the mailed checks, the U.S. Postal Service took over for following-day distribution around the country --- a delivery process that usually takes two days to mail boxes. 

Hard to believe? 

Not even usual eyebrow-raising investigative reporters were stirred by this magical, super-fast federal government action, equal to pulling a rabbit out of a hat. 

Strangely, with millions of Americans concerned, few print and broadcast media reported the announcement that Social Security benefits would be paid as usual and on time. 

The Aug. 2 news release from the Social Security Administration announced “payments for August 3 will be made on time and as scheduled.  Payments for August 10, 17 and 24 also will be made as scheduled.” 

The three-paragraph news release also reminded that “current beneficiaries must switch to electronic payments by March 1, 2013.” 

That should provide another “crisis” for media, focusing on recipients who do not have bank accounts.

 

AARP backs Social Security benefits cuts...or does it?

Grumpy Editor figures there must have been a lot of stirring at AARP’s headquarters in Washington, D.C., following Friday’s report in The Wall Street Journal that the mammoth senior organization “is dropping its long-standing opposition to cutting Social Security benefits…which AARP hasn’t discussed publicly.”

The Laura Meckler byliner also mentioned with that position, “AARP runs the risk of alienating both its liberal allies, who have vowed to fight any benefit cuts, and its 37 million members, many of whom are deeply opposed to such a move.”

It didn’t take long for AARP to produce a response.  At 2:22p.m. (Eastern) Friday, PRNewsire moved a news release under the headline, “AARP Has Not Changed Its Position On Social Security.”

AARP CEO A. Barry Rand snapped:  "Let me be clear --- AARP is as committed as we've ever been to fighting to protect Social Security for today's seniors and strengthening it for future generations.  Contrary to the misleading characterization in a recent media story, AARP has not changed its position on Social Security.”

“We are currently fighting some proposals in Washington to cut Social Security to reduce a deficit it did not cause,” he pointed out.  “Social Security should not be used as a piggy bank to solve the nation's deficit.  Any changes to this lifeline program should happen in a separate, broader discussion and make retirement more secure for future generations, not less.”

The WSJ’s story pinned John Rother, AARP’s policy chief, as the prime mover behind its change of heart.

An Associated Press story on the controversy in newspapers over the weekend noted an AARP spokeswoman said Rother was traveling Friday and unavailable for comment.

But AP did get quotes from David Certner, AARP’s director of legislative policy, who claimed the organization adamantly opposes cutting Social Security benefits to help reduce the federal budget.

Then, adding to the confusion, Certner said for years AARP has acknowledged that cuts to future benefits might be necessary to improve the program’s finances.

Getting back to the AARP news release, it also mentioned, “It has long been AARP’s policy that Social Security should be strengthened to provide adequate benefits and that it is sufficiently financed to ensure solvency with a stable trust fund for the next 75 years.”

It concluded with:  “As we have been for decades, we will continue to protect this bedrock of lifetime financial security for all generations of Americans.”

Grumpy Editor notes AARP triggered another controversy two years ago when it ran into unexpected public relations problems with its seniors membership stemming from its support of President Barack Obama's health care reform plan.  It lost about 300,000 members as a result.

AARP, formerly known as the American Association of Retired Persons, describes itself as “a nonprofit, nonpartisan organization with a membership that helps people 50+ have independence, choice and control in ways that are beneficial and affordable to them and society as a whole.”

 

$500 million U.S. competition targets kids under 5

First paragraph of a news release from the U.S. Department of Health & Human Services heralds a new program with “investments in early learning to reduce crime, strengthen national security and boost U.S. competitiveness,” notes Grumpy Editor.

Seems like a splendid idea. 

But the Obama administration’s $500 million state-level grant competition --- labeled Race to the Top-Early Learning Challenge --- is targeted at youngsters under five years old. 

That zeroes in on infants, toddlers and pre-schoolers. 

Puzzling and not amplified in Wednesday’s 10-paragraph news release is how the “competition,” involving tiny tykes, contributes to reducing crime, strengthening national security and boosting U.S. competitiveness. 

“To win the future, our children need a strong start,” U.S. Secretary of Education Arne Duncan is quoted in the news release. 

Vice President Joe Biden is included with, “For kids, high quality early learning programs mean they will enter school better prepared with a greater chance of finishing high school and college.” 

Hopefully, that will lead to strengthening national security, too.

 

Fake GE news release catches editors off-guard

At least two major news organizations yesterday fell for a bogus General Electric Co. e-mailed news release that proclaimed GE would repay a $3.2 billion tax refund to the Treasury Department, notes Grumpy Editor.

Phony news releases pop up periodically and the rush to print or broadcast information, without confirmation in a 24/7 news cycle, often results in red faces on news staffs.

Associated Press and Dow Jones, reporting the hoax as fact, soon pulled the story.  With AP, it took 35 minutes to retract its 90-word piece.

In analyzing a copy of the fake, yet official-looking news release, Grumpy Editor sees how editors could be gullible.  It carries the GE logo at the top along with the company’s “imagination at work” line, similar to what appears on GE’s Web site.

But Grumpy Editor notices several clues that should have raised eyebrows.

1 --- Nowhere in the six-paragraph news release is the issuer identified by its full corporate name, General Electric Co.  From the headline at the top to the contact at the bottom, it’s simply GE all the way.

2 --- Press contact is listed as being in the 615 area code.  That happens to be the area code in Tennessee that covers Nashville and surrounding areas, not Fairfield, Conn., the dateline on the news release.

3 --- Fairfield, Conn. area code is 203.

4 --- The release’s press contact carries the title, GE Corporate, Assistant Director.  Three key GE corporate contacts do not show such a title on the company’s Web site.

“GE's tax avoidance is unpatriotic, it's undemocratic, it's unfair," says a spokesman for US Uncut, an activist group said to be behind the prank. "It might be legal, but that's only because GE has used its money and lobbying influence to buy the loopholes they're now taking advantage of."

US Uncut describes itself as a grassroots movement organized through social media, that “connects corporate tax cheating to cuts in valuable public services.”