Guided by core values, family ownership thrives in era of media mergers

"Congratulations on your part in the upbuilding of this great newspaper. Hope you echo my desire that one hundred years hence The Times may be a more powerful newspaper than today and be published among five million people, and in the control of your great great grandchildren."

- Alden Blethen, in a 1913 birthday telegram to his son, C. B. Blethen

Eighty-seven years later, Alden Blethen would be proud that his great-grandchildren still control The Seattle Times, and his great-great-grandchildren are being schooled in the stewardship of a family-owned newspaper.

Family-owned, independent newspapers are on the endangered list of businesses. Conventional wisdom says the consolidation of media companies is inevitable, driven by forces as natural and relentless as gravity. Evidence abounds.

Gannett Co., publisher of USA Today and the nation's largest newspaper chain, recently announced it will buy 21 daily newspapers from Thomson Newspapers, Inc., for $1.12 billion. Last month Gannett said it also will buy Central Newspapers Inc., owner of The Arizona Republic and The Indianapolis Star, for $2.6 billion.

Gannett already owns 74 daily newspapers, as well as 22 television stations. The Associated Press called the purchase of Central Newspapers "the latest in a wave of mergers, sales and strategic alliances that are transforming the industry as newspapers look for ways to remain profitable in the Internet era."

The Tribune Co. has operations in newspapers, television, radio, interactive ventures, and syndicated content for print and broadcast, not to mention owning the Chicago Cubs. It recently spent $6.4 billion - the largest U.S. newspaper deal in history - to buy Times Mirror Co., publisher of The Los Angeles Times, Baltimore Sun, Hartford Courant, Newsday and other papers.

Consolidation seen as `natural'

David M. Cole, editor and publisher of News Inc., wrote recently that "in a world of rapidly increasing consolidation throughout business, it shouldn't be surprising that newspapers are as vulnerable as any other industry."

Cole explained, "Whereas there was once an advertising base and a readership base that could support two - or more - newspapers in a community, today our readers tell us they don't have time and our advertisers tell us they don't have the money.

"I believe, therefore, it is natural for consolidation to occur in the newspaper industry. As there are fewer and fewer customers, there will be fewer and fewer newspapers and newspaper companies," he wrote.

But Cole also observed, "What these consolidations are showing is that every newspaper company has its own beliefs about where its strengths lie."

The Times' core values

The Blethen family believes the strength of The Seattle Times Company is rooted in what they call "public trust stewardship" and relentless adherence to four core values:

Remain family-owned, private and independent.

Serve the community through quality journalism.

Maximize the workplace satisfaction of all employees.

Be the country's best regional newspaper.

What distinguishes an independent, family-owned newspaper from a public media company is the ability and willingness to take the longer-term view of investing in quality journalism and community service. It comes down to linking core values with business strategies.

What brings the values most clearly to life is the daily participation of family members in the newspaper, the continuing reinforcement that core values aren't just words on a plaque on the wall.

One tiny example came last Wednesday, when Will Blethen, Times treasurer, took others of us to present a grant from The Times Fund for the Needy to Project BETA, a sheltered work-training experience. Will has been the guiding light of the fund, which last year raised a record of more than $663,000.

Most recently he has been working to increase the impact of dollars that have been donated to the fund through people's wills. In the case of Project Beta, he found matching money from the Casey Family Program.

Nothing speaks more clearly about who we are, what we value and how we do business than direct, personal involvement like Will's commitment to the fund.

Which is part of the message being extended to the younger Blethens, the fifth generation. They are inheriting the opportunity to participate in a public trust, and to pass it on to future generations.

The `fifth edition' of the family

There are 11 individuals in what we call the "fifth edition" of Blethens, ranging in age from 14 to 30. Some are in school, others are starting careers and families.

As they get old enough, they participate in meetings and activities designed to instill the spirit of Alden Blethen's desire for the future. Increasingly, they are taking on responsibility for supporting each other and maintaining family unity.

The seven eldest met at The Times recently for one of their twice-a-year group conferences. They talked about the difference between stewardship and ownership, about newspaper ethics and editorial leadership, and about the challenges facing The Times in the morning field.

They drafted a document to guide their stewardship, with an emphasis on involving all family members through their generation and into the next and on maintaining the independence and success of The Times.

They concluded, "We have a long and challenging road ahead, but couldn't have a better family to move forward with."

Family ownership of newspapers is endangered, but Alden Blethen's desire is alive and well.

Inside The Times appears each Sunday. If you have a comment about news coverage, write to Michael R. Fancher, P.O. Box 70, Seattle, WA 98111, call 206-464-3310, or send e-mail to mfancher@seattletimes.com