What is there in the Hearst DNA that keeps it honoring the shameful deal that William Randolph Hearst made with PG&E in the late 1920s to reverse his long standing pro-public power and anti-PG&E position?
By Bruce B. Brugmann
And so when our Guardian reporter Amanda Witherell flashed the word that ex-mayor Willie Brown is still on the PG&E payroll, I sent the following note to Hearst corporate in New York City (which owns the San Francisco Chronicle):
"PG&E has disclosed a $200,000 payment to Willie Brown for 'consulting services' for 2007 in its annual report to the California Public Utilities Commission. Now that Willie is doing a featured top-of-the-page political column each Sunday in the Chronicle, I'm curious if he is doing a Chronicle column while still providing 'consulting services' for PG&E?
"If so, does Hearst have an ethics policy that covers this apparent conflict? Would it at minimum require disclosure of PG&E payments to Willie in this year and previous years and what was the nature of these 'consulting services?' I would appreciate a comment."
Chronicle Editor Ward Bushee to his credit called me promptly to respond to my questions. (Let us just say his predecessors adopted a variety of stonewalling techniques to avoid answering such questions from the Guardian.)
As attentive Guardian readers know, there is a long history here between Hearst and PG&E and the Willie/PG&E incident is but the latest example of a geologic outcropping of some shameful Hearst history. Hearst was a powerful influence in pushing the original Hetch Hetchy public power project through Congress and beyond, then reversed his policy in the late 1920s as a condition to get a major loan from a PG&E-controlled bank. The pro-PG&E/anti-public power policy continues to this day and nobody I’ve talked to from Hearst through the years can explain why the policy is still in effect to this day.
There is also a juicy history with then Mayor Willie Brown and Hearst. Willie as mayor helped secretly orchestrate for Hearst the deal that allowed Hearst in 2000 to buy the Chronicle, give away the Examiner to the Fang family, and dissolve the Ex/Chron joint-operating agreement with the approval of the Justice Department. Remember all those horse-trading charges in which then Examiner publisher testified under oath that he had used the Examiner editorial pages as a bargaining chip with Willie. (“The Truth Hurts,” by Tali Woodward and Tim Redmond, Guardian 5/10/2000.)
Chronicle editor Ward Bushee to his credit promptly called me to respond. This was a refreshing change from his predecessors who went to creative lengths to stonewall on such questions. I asked Bushee if he knew about the PG&E payment to Willie and if Hearst considered this a conflict with its ethics policy for Willie to be on the PG&E payroll while, among other things, attacking the progressives who voted for the Clean Energy Act that PG&E is opposing with mighty muscle and many millions.
Bushee did not see a conflict nor think that disclosure of Willie’s clients was necessary. Bushee said that Willie is widely known, is “a man about town,” has a popular column, is subject to “strenuous editing,” but is “a freelance columnist who is free to pursue his business interests as any other person who is not a part of the staff.” He said that, if Willie were on staff, he would be subject to Hearst’s “ethical standards.”
Since this issue is of such journalistic importance, I summarized Bushee’s positions and sent him an email and asked if I had properly and fully reflected his and Hearst’s position. I also asked how he could reconcile his and Hearst’s position with the Ethics Code of the Society of Professional Journalists which states that “journalists should be free of obligation to any interest other than the public’s right to know…should avoid conflicts of interest, real or perceived…disclose unavoidable conflicts. (The Guardian and many media use the SPJ code.)
Bushee responded by email by my deadline (missing it by two minutes). He wrote, and I quote in full,
“I’m not going to cover the same ground that we did this morning. However, I will say that since Willie Brown’s column was introduced into the Sunday Chronicle, it has been very well received by readers because it is amusing, topical, controversial and informed. Willie has special connections to the Bay Area. That Wiliie Brown has outside interests and income was well noted when he undertook the column and was no secret to anybody who has followed his career.
"A summary of his political career was published when the column was launched.
“You well know that Willie is one of the most quoted San Franciscans in the Chronicle and other media outlets around the Bay Area. He is a sought-after guest for local, regional, and national TV shows. I’m told that you have been a guest of his radio show with Will Durst. Willie is not a journalist or a member of the news staff of the Chronicle, but his column goes through extensive planning with one of our most experienced journalists and then then same rigorous editing processes as any staff produced article. Our freelance agreements give the newspaper complete control of the content we use including his column. So if you question is that Willie is somehow avoiding ethical scrutiny, that’s not correct.
“Look, Bruce. If we ever found that Willie had knowingly used his column to benefit his clients, we would end the relationship. As with any agreement, trust is implicit.
“The Chronicle news staff always has aggressively—and fairly—covered Willie Brown as a newsmaker. And I have told our editors that I expect nothing less when Willie Brown makes news in the future.
“Besides that, Willie writes a great column. I’m delighted he is in the Sunday Chronicle.”
Well, I am still unable to crack the Hearst corporate fortress that has protected and promoted PG&E all these years and is now protecting and promoting Willie Brown as PG&E's Secret Agent Man in this critical Clean Energy election. PG&E is conducting the most massive and nasty campaign ever against clean energy and public power, with huge Lies, and Hearst is once again refusing to cover the story, correct the lies, or give any indication it is not going to once again back PG&E all the way. Why?
This enduring Hearst position of more than eight decades raises some of the most tantalizing questions in American journalism: What is there in the Hearst corporate DNA that forces its editors and reporters in San Francisco to keep in effect honoring, against early Hearst history, against all evidence, and against all ethical standards, the shameful deal that William Randolph Hearst made with a PG&E- controlled bank in the 1920s to reverse his pro-Hetch Hetchy/anti-PG&E stand and go forever after with PG&E and against public power? (For details, see previous Guardian articles, Bruce blogs, and the authoritative David Nasaw biography of Hearst called "The Chief.") Repeating for emphasis:
Why does Hearst allow a key PG&E lobbyist to write a featured political column in its Sunday paper without proper disclosure by either Willie or Hearst? Will the Chronicle today, in August of 2008, with a non-Hearst publisher and non-Hearst editor (meaning Frank Vega and Ward Bushee, both experienced executives who came new to Hearst with solid Gannet credentials) be allowed to cast off this terrible yoke and start covering PG&E, clean energy, public power, and the Raker Act scandal in a professional manner? Will Hearst and the Chronicle cover this critical Obama/Clean Energy election honestly?
Meanwhile, I am waiting anxiously to see what Willie and Hearst will report on the big Newsom party that PG&E is helping pay for at the Democratic National Convention in Denver. Newsom is gearing up to run as the “green progressive" candidate for governor, but there is no way in the world he can be Gavin the Green when he fronts for PG&E against the Clean Energy campaign in San Francisco and then lets PG&E stamp its logo on his forehead and derriere before a national political audience in Denver.
Newsom and Willie want to be known as real progressives but alas they are "PG&E progressives" and their opposition to the Clean Energy Act only illustrates the difference in 96 point Tempo
Bold between a real progressive with real green credentials and a PG&E progressive taking money to help with PG&E greenwashing and progressive bashing. Guardian City Editor Steve Jones will be at the Newsom event in Denver and will keep you posted. On guard, much more to come, B3
P.S. 1: The Hearst and Willie horse-trading story is my favorite example of Hearst ethics. (See our “The Truth Hurts” story.) Just a few hours into the Clint Reilly antitrust trial challenging the Hearst monopoly deal, Examiner publisher Tim White admitted, in no uncertain terms, that he had used the paper’s editorial pages as a bargaining chip with then Mayor Willie Brown shortly before Wille's reelection bid in November of l999. White testified that at the Aug. 30, 1999 lunch with Willie, he suggested that the Examiner would give Willie more positive coverage if he’d get behind Hearst’s plan to take over the Chronicle and create a daily monopoly.
“You were doing a little horse trading of your own, weren’t you?” asked Reilly attorney Joseph M. Alioto.
“I was,” White said calmly.
The day after White’s testimony, Hearst issued a press release saying the company had “reaffirmed its policy that the content of news and editorial pages may not be negotiated or compromised in any way.”
And then came many pious denunciations from Hearst of White’s “horse-trading” with Willie and many solemn promises from Examiner and Chronicle editors that their news and editorial coverage wasn’t for sale. The ethics problem for Hearst was that, despite several news stories critical of Willie, the paper wound up two months after the lunch giving Willie a glowing endorsement for mayor with no reservations or discouraging words whatsoever. Willie had earned the endorsement by working with the ranking local and national Democrats to orchestrate the deal and knock out any official opposition. He even told Hearst that he had called then U.S. Attorney General Janet Reno and gotten assurances that the U.S. Justice Department would not intervene to stop the deal.
As we put it at the time: "The bottom line: it appears, based on all available evidence, that White was doing exactly what he had been sent out here to do--buy the Chron, shut down the Ex, and create a monopoly--and if he offered to trade positive coverage in the pages of the paper for the political clout it took to make that deal, that was just fine with the people at Hearst headquarters back in New York."
However, we put some questions to Hearst and found that if such an ethics policy really existed at Hearst, nobody from Hearst could produce it, then or later, either at corporate in New York or at the Examiner in San Francisco. The Hearst spokesperson in New York told us that each Hearst publication had independent editorial policies and that we should contact the Examiner.
We contacted then Editor Phil Bronstein who told us the Examiner had an ethics policy, but that it covered reporters and editors, not publishers. “It certainly doesn’t cover situations like this,” he told us. He promised to fax over a copy but it never arrived. Again: Why don't Hearst ethics policies apply to Willie and PG&E?
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PG&E: the best politicians we can buy!
