Part II: News--Arm of Empire

_Chapter IV_

THE ROVER NEWSBOYS ABROAD

“I want the people of every land to be as fully informed as we are,

through a press of varied inclinations toward the philosophies of the

day.”--Kent Cooper.

What the American press is at home--an arm of the State--it is abroad.

The press, and the forces behind it, have formulated an aggressive

program for pushing American commodity news into every corner of the

earth. The program is put in the form of a demand for adoption of

“freedom of the press as we know it” by all nations. The President,

the State Department, the Congress have formally adopted the news

industry’s program as a basic unit in American foreign policy.

The first major action of the United Nations Commission on Human

Rights was to set up a subcommittee on the “free press,” to consider

a resolution along American lines. There was strong pressure to adopt

the American view in its entirety. The U.S. has also insisted that many

foreign countries accept American correspondents and adopt American

news concepts if they want diplomatic recognition.

Speaking for the American newspaper industry, Kent Cooper has further

proposed that no country should obtain aid of any kind from the U.S.

without acceptance of these views. Official backing of Cooper has

gone so far that Congress even delayed a United Nations Relief and

Rehabilitation Agency appropriation in an attempt to impose a “free

press” condition for U.N.R.R.A. aid.

As a matter of fact, the wedding of press and State has carried the

“free press” demand far beyond the limits of news policy, no matter how

you define the latter. A privileged status is being demanded for the

news industry, as witness Cooper’s suggestion that correspondents be

given _diplomatic immunity_! But the matter is far from stopping there.

It is not generally known that the American news industry has now

attained virtual domination of the world news market--which means every

country except the Soviet Union and its immediate neighbors. The story

of the battle for world opinion control will be told in later pages.

Here it is enough to point out that official pressure for world news

“freedom” has a double purpose. First, it is aimed to break down Soviet

resistance, especially in respect to reported plans of Tass, official

Soviet news agency, to serve Czechoslovakia, Yugoslavia, Bulgaria,

Austria, Hungary and Rumania. Second, it is designed to further expand

and consolidate the powerful world position of the American news

monopoly against future challenges by its now feeble rivals.

In such a program, news is a naked arm of Empire. It cannot be

separated from the territorial, military-strategic, economic and

political aspects of American foreign policy. The increasingly

imperialistic tone of that policy, the spread-eagle drive for absolute

world power, is more and more reflected in the demands of the news

industry. Thus, Arthur Hays Sulzberger, publisher of the banker-minded

_New York Times_, frankly states the connection between the two. In a

speech containing the crude threat of atomic bombs and the flavor of

political blackmail, he declared:

I do not believe that free peoples can afford to trust

dictatorships. We should not share our military secrets, or make

any financial agreements, calculated to build the Soviet Union

until we in this country have more knowledge of her and her

ways.... I think we should put definite limits upon our cooperation

... until we have the same freedom of access to the news of Russia

as they have to the news over here....

Access to the news is, therefore, my condition for full cooperation

and I should hold to that position uncompromisingly. The

elimination of censorship would be but a small part of compliance

with this condition. _Access to the news means freedom to travel

at will--to talk with whomsoever one wishes--it means finding

communications systems available--it means the right of a business

man to see how his product is used or whether a market for it

exists.... I say this as a newspaper man, it is true, but in this

all-important freedom we in the newspaper profession act as your

agents._

What Sulzberger and the news industry are demanding, is acceptance

by the Soviet Union of the system of special privileges for private

enterprise that prevails here. At the very least, they would require

the Russians to agree that information is a commodity to be peddled

exclusively by morally irresponsible private organizations. If the

Soviet Union could be forced to bow to American private enterprise

in this instance, a capitalist wedge would have been inserted in the

Socialist system.

Lawful Spies

Any newspaperman who has worked abroad, or among foreign correspondents

here, knows that there is the closest connection between the work of

a correspondent and the interests of the State. Walter Lippmann, in

criticizing Congress for the attempted U.N.R.R.A. holdup, pointed out

that virtually all of a correspondent’s news comes from officials and

business men of his own country, plus some friendly foreign diplomatic

sources. There is no clear line separating the correspondent from

the Embassy officials of his country. There is even less sharp a

distinction between the _information_ exchanged by the correspondent

with Embassy officials and the “_intelligence_” supplied by agents and

outright spies.

The recent Pearl Harbor inquiry dented the old shallow idea of

“intelligence” which centered on beautiful Mata Haris and stolen

plans, though the recent Canadian spy-scare exploited this popular

misconception. The United States has just created a new national

intelligence agency on a more realistic basis. Gathering of every

kind of public and secret information, plus the over-all evaluation

of the total information, is the job of the new agency. Evaluation of

information at every stage is essential. Poor evaluation led General

Marshall to believe--and to tell a press conference--that the Nazis

would go through the Red Army like a hot knife through butter; later

that Japan was militarily a joke.

For the function of gathering information and evaluating it as it is

gathered, the correspondent is ideally equipped. Since his work is

conditioned to the objectives of the dominant interests in his own

country, and even of his own government to varying degrees, he cannot

be regarded as an innocent man from Mars, dispassionately reporting

history as it unfolds. As a matter of fact, news values are determined,

for the correspondent, with relation to state policy. Events are

not “news” unless they have some bearing on the progress or lack of

progress of specific American policies. The current American coverage

of the Balkans is typical. Correspondence from that area is almost

exclusively concerned with the Anglo-American effort to get “reliable”

governments installed. The correspondent makes no pretense of drawing a

positive picture of life in those lands.

But over and beyond what the correspondent reports, or does not report,

is his value as a contact man. It is not for nothing that Sulzberger

stresses complete freedom of motion and contact for the business

man and correspondent alike. In the Socialist sphere, and in rival

imperialist territory, the American newspaperman is part of a network

of capitalist contacts within the country to which he is assigned. He

is a war correspondent and intelligence agent in peacetime!

This question of contacts is as decisive for the newspaper business as

it is for intelligence work. And it provides an interesting link with

the secret history of the world news cartel. For just such contacts

were the foundation of the global news monopoly. And the cartel was,

from the start, unmistakably at the service of commercial and state

interests!

News Since Feudal Days

Near the middle of the past century, governments, bankers, rich

merchants, kept private couriers who travelled to all important

European capitals. By carrier pigeon--and in America also by pony

express--they sent specific information on prices and market

conditions, plus general political information required for their

long-range business planning. The couriers built up extremely valuable

contacts that would have made them very valuable to newspapers. But

newspapers couldn’t afford their costly services and the couriers

couldn’t afford to lose their rich clients by publishing their

information. Newspapers had the right to print news but no way to get

it.

The telegraph broke that situation wide open. It made the relative

isolation of the newspapers impossible; it spelled the doom of the

private news systems.[A] It ended feudalism in the information field.

But not everyone saw that immediately. Paul Julius Reuter, Prussian

government courier with many business clients and topnotch European

contacts, understood it at once. He determined to switch to newspapers,

offering a telegraphic news service to several papers at once. Germany

was no place for a progressive idea in 1851, and Britain was the

nation with the most extensive world interests, so Reuter set up shop

in London. His idea was a smashing success. Reuters soon was the

all-powerful government-backed British Empire news monopoly.

Charles Havas, a Hungarian, established a similar monopoly for the

French Empire and France’s sphere of interest, and Dr. Bernhard Wolff

did as much for Germany. In the United States, Associated Press grew

out of the same conditions, except that the agency, like the nation

itself, was almost wholly absorbed in internal development, almost

entirely disinterested in the rest of the world. Toward the close of

the century, however, there were signs that the tremendous productive

forces developed under American capitalism would ultimately seek _an_

empire if not world empire. The country began to show more interest in

_world_ news. Associated Press, to improve its monopoly position and

bar the possibility of successful competition at home, sought exclusive

rights to a supply of world news. It made a deal with the European

agencies.

That deal and the world news relationships of which it was a part, were

well hidden from the world prior to World War II, but the war completed

a change in the former secret relationships. Marking this change, A.P.

chief Kent Cooper published the story of the news cartel in 1942. His

book was called _Barriers Down_. Cooper published it only to mobilize

support for his “crusade.”

Cooper’s “crusade” is nothing more than a drive for world news

monopoly. _Barriers Down_ is designed to justify American imperialist

news domination by coating it with high moral purpose. The _London

Economist_, organ of battered British imperialism, notes in its issue

of December 2, 1944:

Mr. Cooper, like most big business executives, experiences a

peculiar moral glow in finding that his idea of freedom coincides

with his commercial advantage. In his ode to Liberty there is no

suggestion than when all barriers are down the huge financial

resources of the American agencies might enable them to dominate

the world. His desire to prevent another Goebbels from poisoning

the wells will be universally applauded, but democracy does not

necessarily mean making the whole world safe for A.P. In this,

as in other post-war issues--such as civil aviation--commercial

practices are habitually confused with such big words as “liberty

and the Rights of Man.”

Cooper’s book nevertheless lends the strongest authority to what would

otherwise be an almost incredible story of news imperialism. We shall

lean on it heavily.

_Chapter V_

SECRET HISTORY OF A CARTEL

The story begins in the 1840’s with the formation of the great modern

news agencies in obedience to the click of the telegraph key. At that

time, Great Britain dominated the world. France, a powerful state,

was nevertheless a link in the British system. Germany had not yet

fully emerged as a modern industrial power. Russia, ruling a sprawling

empire, was herself, in a sense, something of a political and economic

“colony” of the more advanced European states. The Far East was one

huge, thinly-disguised sphere for European exploitation, too, with

Britain hogging the lion’s share. The United States, in addition to

exercising little influence in world affairs, lacked the immediate

facilities for world news competition: Great Britain controlled almost

all cable and other communications.

Under these conditions, there arose what Kent Cooper justly terms “the

greatest and most powerful international monopoly of the 19th Century,”

the world news cartel. Considering that A.P. voluntarily participated

in it, Cooper’s highly moral tone is strange. It is true, nevertheless,

that the agencies “brought under their control the power to decide

what the people of each nation would be allowed to know of the people

of other nations and in what shade of meaning the news was to be

presented.”

* * * * *

Summarizing the situation, the A.P. boss continues:

For long years Reuters, acceptably to Havas and Wolff, had divided

the globe among the three according to Reuters’ idea of proper

spheres of influence for each.... Reuters received English-speaking

North America, in which since 1893 the A.P. had bought exclusive

territorial rights.

For long years Reuters, acceptably to Havas and Wolff, was granted

a free hand in Canada. Later this free hand was extended to

include Mexico, Central America and the West Indies where Reuters

and Havas held the sovereign rights. The two, however, admitted

no control whatever to Wolff, the German Agency, in the Western

Hemisphere. Reuters had Great Britain, including all the colonies

and dominions, Egypt, Turkey, Japan, China and what might be called

the suzerain states, or those in which England had exerted a sphere

of influence.

Havas [since succeeded by France-Presse] controlled the French

Empire, Switzerland and all the Latin countries, including Italy,

Spain, Portugal and those in South America. [Also the Balkans.]

To Wolff [later D.N.B. or the Deutsches Nachtrichten Buro] fell the

Scandinavian states, with Russia and all the Slav nations. Austria

also came under the jurisdiction of the German agency.

A Conflict Is Born

Reuters used its control frankly in the interest of the British Empire

and of British business interests. Havas and Reuters combined to

carry stories that would tend to ridicule American manufactures and

America, but they refrained from such handling of Britain and France

respectively. All over the world, news from America was top-heavy with

Indians on the warpath, lynchings in the South, bizarre crimes in the

North. Havas headed off American business competition with France in

South America--a Havas exclusive territory--by stories belittling U.S.

automobiles and other products. (Very reminiscent, one may note, of the

American news industry’s deliberate belittling of Soviet industrial

products and skills and planning, propaganda that misled even our

highest authorities prior to Stalingrad.)

Anglo-French ridicule was gall and wormwood to American Big Business

as it moved more and more into competition for world markets, world

influence and world power. It was more immediately vexing to Associated

Press but A.P. never went outside the gentlemanly bounds of the

conspiracy. It used the cartel as a club to beat back United Press and

other would-be rivals at home.

Nevertheless, an ultimate conflict between A.P. and Reuters was

inevitable. The United States was building up industrial might and

developing resources to overtake and pass Great Britain in the race

for world power. This was somewhat obscured, for the general observer,

by the rather more aggressive challenge of Germany. Germany, too, had

built up a modern industrial productive apparatus far greater than that

of Britain. It found the world already divided. Markets, raw materials,

the slave labor of colonies and their investment opportunities, had

been “parcelled out” among Britain, France and their satellites:

Holland, Belgium, Portugal. British and French guns were levelled

against any suggestion of sharing the plunder with the newcomers. So

German imperialism levelled its guns, too, and World War I was on.

Peak of Reuter’s Power

With Britain and France and Germany engaged in worldwide warfare while

the United States (until 1917) stood on the sidelines, Reuters, Havas

and Wolff were severely handicapped. Even under peacetime conditions

they could not compete with the American agencies on a commodity-news

basis. Their official or semi-official character restricted their

freedom of action and of judgment. The moment something really

important happened in Europe, they would hesitate, under official

pressure. For example, when the Nazis murdered Austrian Premier

Dollfuss, Havas sent nothing for hours while the Quai d’Orsay debated

how French-controlled areas should be informed of this event, how it

should be interpreted. The “officialese” in which such events were

reported sometimes achieved peaks of silliness. A dispatch to New York

from Havas bureau in Beirut, Syria, in 1934, said:

French governor visited hinterland first time since elections. On

every hand he was greeted with enthusiasm by populace which thanked

him for all France had done to relieve food crisis. Extremists

threw a few bombs but vigorous police measures reassured people.

Reuters was no less one-sided in its devotion to British interests, and

the national agencies of the smaller States were doubly handicapped. On

the one hand they were mere creatures of Reuters-Havas; on the other,

they were bound out to the service of their own State. The mere listing

of the national agencies dancing to the Reuters-Havas tune establishes

the political significance of the cartel. They were: Amtliche

Nachrichtenstelle, Austria; Agence Telegraphique Belge, Belgium; Agence

Telegraphique Bulgars, Bulgaria; Bureau de Presse, Czechoslovakia;

Ritzaus Bureau, Denmark; Agence Telegraphique Esthonienne, Esthonia;

Finska Notisbyran, Finland; Athena, Greece; Nederlandsch Telegraaf

Agentschap, Holland; Agence Telegraphique Lettone, Latvia; Agence

Telegraphique Hongroise, Hungary; Stefani, Italy; Kokusai, Japan;

Avola, Yugoslavia; Agence Telegraphique Lithuanienne, Lithuania; Norsk

Telegram-Bureau, Norway; Agence Telegraphique Polonaise, Poland; Rador,

Rumania; Rosta, Russia; Fabra, Spain; Tidningarnas Telegrambyra,

Sweden; Agence Telegraphique Suisse, Switzerland; Anatolie, Turkey.

These agencies were financially controlled by Reuters-Havas-Wolff, but

they could not have been independent even if there were no financial

control. In the first place, the cables were British and aside from

direct restrictions imposed by Great Britain on users of the cable,

manipulation of rates could determine the profit or bankruptcy of

a stubborn agency. On top of that, Havas and the smaller agencies

were not only news but also advertising agencies, monopolistic ones.

Newspapers, in Europe and Asia alike, got Reuters-Havas news service

free--in effect, and they had to use it if they wanted the advertising

by which they lived.

This dominating position gave the European agencies a haughty and

clumsy attitude toward transmission of news. They could delay or garble

the most important events. It also gave them no incentive to technical

advance. Havas was still using the stylus instead of the typewriter

in the 1920’s. So long as and wherever Britain and France remained

the ruling powers, the agencies could get away with it. But wherever

and whenever some other power could challenge Anglo-French rule, a

challenge to the news agencies would follow. South America was the

“where” and World War I was the “when.”

Conquest of South America

Havas was boss of South America according to the cartel contract. As

soon as World War I started, therefore, Havas decided exactly what

South Americans could be permitted to learn about the war. It goes

without saying that only the Allied side was to be reported. But

such was the inflexibility of the official agencies, that Havas was

unwilling to transmit even the German war communique when asked to do

so by leading South American papers. It could not unbend that much to

head off the obvious danger of losing South America to some American

rival agency.

This was A.P.’s great opportunity, but the agency was fearful of losing

the advantages of cartel membership if it made a bid for South America.

Manager Melville Stone considered that the cartel might oust A.P.

and admit the newer United Press to membership. Accordingly, he left

unanswered a request by _La Nacion_ of Buenos Aires, one of the world’s

leading newspapers, for A.P. service.

New pressures, however, were at work. Within A.P., Kent Cooper, then

only Traffic Manager, learned for the first time of the cartel and of

A.P.’s humiliatingly inferior position in it. He began what he likes

to call his “great crusade,” by which he means a thirty-year fight to

substitute American for British news domination of the world. From

outside the agency came insistent demands by the government for aid in

advancing national policy. The State Department made a crude subsidy

offer with the aim of bribing the South American press. Stone later

wrote:

The State Department asked me to employ the editors of almost

every leading paper in South America on handsome salaries as

correspondents of A.P. ... whether they sent us news or not ... and

the government would recoup us for anything we paid.... They want

something more than a mere news report.... They want some sort of

illuminating service from the United States to indicate that this

country is not money-grabbing or territory-grabbing.

Incidentally, a similar proposal was made for the Far East. A.P.

rejected the proposals. Moreover, “government propaganda” was one

important reason. Moreover, “government propaganda” organizations

were regarded as inadequate and unstable instruments for conquering

news control. A.P. felt the government interest, for one thing, was

not likely to survive the war. Even more important was the fact that

the American news industry has always heavily exploited its alleged

“independence of direct government ties” as proof of its non-partisan

character.

But far from refusing all forms of subsidy, the news industry fought

for and obtained aid in the form of “practical rates for news

transmission; rates attractive enough to encourage the export of

news from the U.S.” The government had for some years encouraged the

laying of new American-owned cables. Now, at the “behest of the State

Department,” the American-owned cable company gave lower rates to

American clients than to Havas, for news to South America. American

news went to South America after all, therefore, on behalf of the State

Department.

A.P.’s conservatism might well have cost it the chance to seize South

America. But United Press, unhampered by cartel obligations, started

operations there. That shook A.P.’s complacency. Cooper insisted that

the cartel give A.P. full freedom to operate in South America. Stone

said: “Go ahead and advocate as much liberty as possible, but don’t do

anything to bring a break between the A.P. and our European news agency

allies.” There was, however, no serious resistance. Reuters told Havas

to agree or else. Havas yielded.

Redividing the World

World War I was fought for the redivision of the world among the

existing imperialist powers. Germany lost her colonies and the German

Republic was reduced to the role of a vassal state serving the

American-Anglo-French victors. This situation was duly reflected within

the news cartel where Wolff lost territory and was permitted to serve

only Germany itself.

A.P. scrambled clumsily for a share in the spoils. Cooper hurried to

Versailles to ask the U.S. treaty delegation to fight for A.P. parity

with Reuters and Havas. This was to be expressed in the form of a

“free press” clause in the peace treaty. President Wilson’s right-hand

man, Colonel House, very sympathetic to the American news monopoly’s

desires, agreed to sound out the possibilities. He reported, in a few

days, that the question had been “taken care of privately” and he could

do nothing.

How it was “taken care of,” Cooper reports with great indignation. His

account, coming as it does from a member of the gang--a disgruntled

member but still one of the boys--is of great authority. It is

necessary only to warn that, writing in 1942, he showed no great

anti-Nazi fervor and discreetly dodged the ticklish problem of the

Soviet Union. He does not mention the great _cordon sanitaire_--the

strangling “safety belt”--set up around the new Socialist State after

World War I, but is full of pity for Germany.

Cooper says he learned that a cartel meeting had been held in which

the heads of Havas and Reuters had conferred alone while Dr. Heinrich

Mantler, head of the Wolff Agency, was left to smoulder in an anteroom.

When Reuters-Havas had decided the redivision of the globe, Mantler was

called in and told the bad news.

Reuters and Havas, matching the political terms of the Versailles

Treaty, built their own news agency _cordon sanitaire_ around

Germany. All the political states bordering on Germany were allowed

to have only news agencies owned or controlled by either Reuters or

Havas or both. In other words, the position of the news agencies

in those border countries was harmonious with the determination

of England and France to keep Germany hemmed in by little nations

mostly pro-Ally, such as Finland, Sweden, Norway, Denmark, Holland,

Belgium, Switzerland, Austria, Czechoslovakia and Poland.

A borderline area was the Saar Valley, the Palatinate and Rhenish

Prussia. The French Government wanted that for Havas. Reuters was

neither wholly unwilling nor enthusiastic, because Britain wanted a

moderately strong Germany to act as a check on France. Finally, and

subject to the Saar Plebiscite 15 years later, “they made a compromise

by which Wolff Agency might serve there, but a copy of Wolff service

should go to the Havas Agency, and if it was not satisfactory Wolff

could be removed from there.”

The victors were not averse to tearing slices of territory from one

another, either, so within the winning combination some changes were

made. Havas retained the bulk of the Balkans, but Greece and Turkey

passed “into Reuters’ [Britain’s] sphere of influence.”

Battle for Asia

A.P. remained a stepchild during all this time. It obtained a free hand

in South America, as already related. But in general, just as Great

Britain was slow to recognize and acknowledge the unmistakably superior

position of the rival American imperialism, so Reuters took a haughty

tone toward A.P. requests for adjustments in their relations. Outside

the cartel, accordingly, A.P. built up positions and alliances for an

ultimate showdown. Inside A.P., Kent Cooper gathered allies for his

more aggressive program against the still dominant go-slow policy of

Melville Stone.

While Britain was deeply involved in World War I, the U.S.

greatly extended the American communications network. Monopoly in

communications was deliberately fostered to “advance the national

interests.” This process, begun during World War I and continued

through World War II, is described in the previously-cited _Report

on Freedom of the Press_.[B] As this study is financed by a _Time_

magazine grant and has semi-governmental, semi-official news industry

standing, it is not critical of imperialist expansion. All the more

weight must be attached to its admission that State and industry are

one in communications and news-export.

These new government-fostered monopolies now played an important part

in the forward march of American news. Though A.P. had refused to do a

propaganda-job under government control, it was not at all reluctant to

let the government pay for A.P.’s expansion. This is what happened:

The Far East was the scene of the first open clash with Reuters.

Reuters’ absolute domination of world news produced some peculiar

effects on American-Oriental information exchange. West Coast

publishers, led by Hearst, were frantic about the situation. Cooper’s

first ally within A.P. was V. J. McClatchy, California publisher who

reflected the violent anti-British, anti-Japanese policies of Hearst.

McClatchy, in turn, won the support of Adolph Ochs, publisher of the

most powerful newspaper in America--the _New York Times_. A.P. was now

consciously but cautiously working toward an ultimate showdown with

Reuters.

McClatchy went to Washington in 1919 to seek Congressional aid. When he

told Congress about the news aspects of American imperialism’s secret

struggle in the Orient, the legislators were indignant. Reuters, it was

demonstrated, mangled all American news printed in Japan, China and

the Far East as a whole. Even news between the U.S. and the Philippine

Islands had to go by way of London for British profit and British

editorial slant.

Japan was the key news country in the Far East. Until 1914, the

country had no news agency of its own. Reuters not only controlled

the import and export of news but had the direct internal monopoly as

well. Japan had to pay Reuters what amounted to an annual subsidy,

after 1914, to get out of Japan and let the Japanese form a news

agency, Kokusai, which got all its non-Japanese news from Reuters. The

American news report for Far East distribution was now circulated by

Kokusai; Reuters-Havas Far East news to the U. S. was transmitted via

Kokusai. It amounted to an Anglo-Japanese alliance against the U. S.

The garbling of news that resulted was beyond imagination; British bias

strained through Japanese culture and policy!

Congress ordered the U. S. Navy to put its radio circuits at the

disposal of the agencies. The order specified rates that were, in

effect, a subsidy to permit the agencies to compete with Reuters.

Again, it was U.P. that moved first. A new Japanese agency, Nippon

Dempo, was set up and it used the U.P. “report.” Later, Nippon Shimbun

Rengo was formed to replace Kokusai. Rengo constantly sought A.P.

service, but the cartel would not consent. On the whole, British

control of Far Eastern news remained unimpaired.

This was the situation in 1925 when Kent Cooper became General Manager

of A.P. In 1927, Cooper went to Europe to negotiate a new “treaty”

with Reuters, Havas and Wolff. He wanted A.P.’s gains since 1893--the

rights acquired in South America, for instance--put in writing. He

especially wanted the cartel to admit A.P. to Japan on the plea that

other American agencies were there and were serving the home market

with non-cartel news.

As Cooper put it, he wanted a new contract primarily in the interest of

plain-speaking. He said: “It seemed to me that if the A.P. wanted to be

in on a division of the world as between the other three agencies the

contract should specify what territories were allotted to each.” The

new contract did exactly that. Without the shadow of double-talk, it

stated: “Reuters shall have the exclusive exploitation of the following

territories....” The British and Dutch Empires and most of the Far East

were included in these territories. Havas had “exclusive exploitation”

of Italy, Spain, Portugal and the Balkans as well as the French Empire.

Associated Press had “exclusive exploitation” of North America and

shared South America with Havas.

Now that is plain enough even for me, a disillusioned newspaperman

weary of piffle about “freedom of the press.” That is straight business

talk as among “legitimate” monopolists. It is, in short, a cartel

agreement for the division of the world market in news. But there is

a sequel to the story. When Cooper returned from Europe with his new

contract, A.P. Board members were horrified by the word “exploitation.”

Cooper explains their squeamishness by saying that “the word has taken

on a stigma in the United States which it does not have in Europe.”

An evasive word was substituted and the contract was approved.

“Exploitation” disappeared but the cartel reality remained.[C]

With respect to Japan, the head of Reuters, Sir Roderick Jones, made a

verbal agreement to permit A.P. dealings with Rengo. He could not put

it in writing, he said, because it would be a loss of face to Reuters

(that is, to the British Empire). Neither side had any intention of

yielding to the other, in practice. Power would tell, they knew, and

force would decide the issue.

The Showdown

They differed in their estimates of power distribution. The

relationship of forces had vastly changed since 1893. The United States

had been slow to enter world competition because it was busy with

internal development. But the delay actually improved its chances, for

when it finally laid down a claim for world position, it did so on the

basis of an incomparable home market. In the commodity-news industry

this was strikingly clear. At a meeting of the A.P. Board of Directors,

_Chicago Tribune_ publisher McCormick once offered some estimates in

this connection. The estimates were so impressive that Cooper got him

to repeat his statement for the benefit of any directors who had missed

the import. Said McCormick:

We are pretty much the most important country in the world and much

the richest country in the world, and in comparing America with

other foreign countries the press stands probably higher in America

than any other institution. I think it is a pretty good guess that

American newspapers print and supply two-thirds of all the world’s

news, and I think that the revenue of all the American newspapers

is probably three-fourths of all the revenue of the newspapers of

the world.

It was on the strength of this tremendously favorable competitive

position that A.P. laid down the gauntlet to Reuters in 1932. It

demanded “free competition.” Meaning that Japan, for instance, must be

free to switch from Reuters to A.P. service. All American monopolies

tend to demand “free competition” because they are now in a position to

strangle their isolated competitors. Nourished by a huge home market

built up with plenty of government aid, they no longer need direct

subsidy and want to establish a no-subsidy rule for younger and weaker

national news industries. The newspaper industry is in an even stronger

position than chemicals, steel and other monopolies. In no other

country has news-publishing grown into a business of comparable size

and power. In no other country does the newspaper business stand so

near the top in the list of Big Businesses.

A.P. understood this very well. Reuters misunderstood it badly. For

years it held out stoutly against A.P.’s right--verbally admitted but

never put in writing--to operate in Japan. Jones was confident that

A.P. would never risk a break with Reuters; he counted on the threat

that Reuters would take U.P. into the cartel if A.P. walked out. Cooper

deliberately led Jones into a trap, pretending eagerness to maintain

the alliance but needling him at all points.

“While I wondered how long it would be before this bubble of Reuters

world domination would burst, I was willing for Sir Roderick to blow

his own bubble so big that it would burst through his own exertion but

I would not puncture it myself,” Cooper gloats.

It burst in 1934. Carrying his pretense of humility and loyalty to the

uttermost limits, Cooper travelled from Japan to London to explain to

Sir Roderick that A.P.’s activities in Japan were within the meaning

of the contract. Pretending to mollify Jones, he encouraged him to

think that his own actions were due to weakness either of A.P. or of

his position within A.P. Accordingly, Jones refused to sanction the

A.P.-Rengo deal. He announced that the cartel agreement must be renewed

on the old terms or Reuters would allow it to lapse.

Reuters had fallen into a trap. Not only A.P., but the American news

monopoly as a whole was determined to humble the British. United

Press joined A.P. in an agreement establishing between themselves the

principle of “non-exclusive access to foreign news at its source.” This

meant that U.P. would not agree to replace A.P. in the European cartel.

So A.P. blandly notified Reuters that it “agreed” to let the “alliance”

lapse.

This announcement exploded with bomb-force in London. Sir Roderick’s

house of cards collapsed. Reuters was through as the news dictator of

the world and A.P. was king. Within a few hours Reuters, recognizing

what it had long failed to see, offered to capitulate. Jones hurried to

New York, begging for an audience. He was forced to humiliate himself

enough to satisfy Cooper who had been waiting years for that triumph.

Then the “alliance” was renewed--on A.P.’s terms.

World Conquest

American news domination of the world was now assured. The

“non-exclusive” principle did not in the least destroy the cartel;

it merely made the cartel an instrument of American policy. The old

system of recognizing political controls remained to some extent, in

that Reuters, for instance, retained the dominions and protectorates as

partially privileged territory. But a new system became the dominant

one. The new system opened territories once dominated by Britain,

France and Germany, to American news penetration, just as the basic

industrial-military potential of the United States was beating the

way for American political-economic penetration into those sacred

preserves. The “non-exclusive” principle governed the new contract.

The term sounds very lofty and moral. It seems to mean that A.P. and

Reuters would compete everywhere on equal terms and let the better man

win. Not only that, but A.P.’s American rivals would have the same

chance.

Alas, it meant nothing of the sort. The principle merely established a

new kind of monopoly in which political intervention of the State on

behalf of the monopoly no longer was so blatant. Competition was still

sharply restricted--not by cartel agreement but by economic pressure.

A.P. informed Reuters for instance, that the British agency was

absolutely free to deal with U.P. The new contract guaranteed that and

so did A.P.’s agreement with U.P. But, said A.P., if Reuters chose to

exercise that freedom, A.P. would choose to deal with Reuters’ British

rival, Exchange Telegraph, and so destroy Reuters! A.P. also informed

Reuters it would have to deal with Canadian Press through A.P.: thus,

Canada passed from the British to the American Empire!

That wasn’t really the end. World War II put the period on the new

contract. Havas crumbled all-at-once-and-nothing-first like the

wonderful one-hoss shay. Reuters’ internal crisis matured and in

1941 the agency was liquidated as a private profit-seeking body. It

was reorganized as the British equivalent of A.P. Within the Empire

it is struggling for survival against terrific American pressures,

just as the Empire itself is creaking under American expansionist

strains and the impact of the rising liberation forces released by the

anti-Axis war. Sideswiped as a British government propaganda agency in

a semi-official State Department document recently, Reuters indignantly

denied the charge. In doing so, it acknowledged the British surrender

to the American commercial-sensational news pattern which it resisted

for so many years. Said Reuters chief Christopher Chancellor: “We are

not purveyors of British news; news cannot be British or American--it

is an international commodity.”

The German D.N.B. has, of course, been liquidated. So has Japan’s

Domei. An American-sponsored German Agency, D.A.N.A., has been set

up in U.S.-occupied Germany with favorable competitive advantages as

against the British and French agencies. U. S. Treasury funds have

been used openly in the battle for news control of Austria and other

countries. In Japan, under exclusive American occupation, American news

dictatorship is assured. With Britain restricted to Southeast Asia,

the whole Far East is rapidly becoming an American private preserve.

And not even the limits of the thinly-concealed modern American empire

provide boundaries for the American news empire.

Only the Soviet Union and the new Eastern European democracies,

together with the anti-imperialist forces within the dominated

territories, stand in the way of complete global sway by the new

empire-aspirant and its news monopoly. Against them, the “free press”

monopolists are mobilizing the blackmail batteries of atomic diplomacy.

“It is unthinkable,” declares Kent Cooper, “that the peace will not be

dictated by America and Britain and that there should not be included

in its terms the principles affecting the press as I have outlined

them.”

_Chapter VI_

RESPONSIBILITY--A CHALLENGE TO THE PRESS

If World War I was a complex struggle for redivision of the

world between two imperialist groups, World War II was still

more complicated. An effective alliance of all forces opposed to

German-Japanese enslavement of the world was achieved. Yet behind this

alignment a good many battles were fought for imperialist advantage.

The capitalist powers had joined with the Socialist Soviet Union in a

Grand Alliance, but the military activities of Britain and the United

States indicated that their whole heart was not in the arrangement. The

Soviet Union was permitted for three whole years to carry the burden

of the fiercest assault known to history; under British pressure, the

Anglo-American military power was distributed along the relatively

inactive Empire lifeline. Thus, in effect, the allies fought Germany

with one hand and with the other built up positions from which to crowd

and “contain” the Soviet State.

Within the Anglo-American camp there was likewise double dealing. Each

party maneuvered with a view to postwar advantage for No. 1 at the

expense of his “gallant ally.” Early in the war, Washington could boast

that there was no need of a Second Front since there were already a

Third, Fourth, and even a Tenth Front. This merely revealed that United

States forces were scattered all over the globe with little relation to

the needs of the alliance but with obvious effects on future adjustment

of Anglo-American differences. As part of the “war effort” for

instance, a contract was made to build and operate an American military

airfield in Arabia, across the gulf from Persia, for three years

_after_ the war. This was but the expression of a series of deals with

Arabia, notably for oil, by which the U. S. became dominant there while

Britain was forced back into second place. The phenomenon was worldwide.

As a result, American imperialism feels superbly assured of its present

strength. That assurance is demonstrated by our current atom-bomb

diplomacy. All loan and other negotiations stress the determination

of our profit-swollen trusts to impose their rule over the world. In

the process, the British are often forced to divide former private

preserves, such as southern Iran, and virtually to abandon competitive

rights in huge areas once under their chief control, such as China. The

American methods tend to be oblique: military and technical missions

are established in the country in question, “upon request.” No request,

no loan. This method replaces the crude “Opium War” pattern in which

Britain built and maintained the world’s greatest empire of the past.

But the same bloody suppression of “natives” is behind both methods.

In recent months the British have slaughtered Greeks and Indonesians;

unwilling Marines have made Lidices in North China.

A dispatch to the _New York Times_ from Athens helps illustrate the new

method. After noting that the United States is far from withdrawing

from Greece, the dispatch says: “The State Department’s comments ...

sounded much like what the British had been telling the Greeks for some

time.... It is believed that the only substantial difference between

British and American views relates to the extent to which Allied

officials should be injected into the Greek civil administration. The

British originally intended to ask for a practical veto over acts of

the Central Bank and Ministries dealing with economic affairs. It is

now suggested that the British will suggest something much closer to

the concept enunciated by the State Department yesterday: technical

assistance to Greece ‘upon the request of the Greek Government.’”

In effect, as in Kent Cooper’s 1927 contract, the word “exploitation”

has been removed, but the imperialism is still there. And among the

industries making great headway in all “assisted” countries is the

American news industry. It is favored by the change in the ownership

of communications. Britannia no longer rules the waves--either of the

air or the sea. Telephone, telegraph, cable dominance is no longer

hers. Aviation, radio, multiple-address newscasting and facsimile

broadcasting, are off to a good start under the control of American

interests. And whatever advantages British imperialism still has,

she is forced by the State Department to relinquish in return for a

loan. Cable communications with British Empire points, for instance,

are still in British hands. Yet not long ago conferences were held in

Bermuda and Rio de Janeiro at which American government representatives

compelled the British to cut press cable rates from New York to Empire

points. This admitted American opinion-forming “news” to at least equal

status with similar British propaganda in the Empire itself.

Now the government is also going into the business of distributing

“news about America, by Americans.” The news agencies contend that

a government information service is “propaganda,” whereas they

“distribute the news as such, wholly unbiased and without intent to

influence.” This is an empty boast. Riegel, in _Mobilizing for Chaos_,

says: “The press associations differ in the amount of direct government

control affecting them, but all are obviously governed by the

newspapers they serve, and the destinies of all of them are inseparably

united with the destinies of the nations with which they are

identified. An impartial international news-gathering organization does

not exist.” The _Report on Freedom of the Press_ calls news-export an

“adjunct of diplomacy and national policy. This inevitable relationship

is no less real in the U.S. for having been avoided by the government,

resisted by industry, and needlessly confused by imaginary threats of

encroachment upon the First Amendment.”

State Department, A.P., U.P., I.N.S., alike provide “opinion-forming”

material designed to further the current dangerous drive for American

imperialist rule of the world. They are at one, moreover, in pressing

foreign news services to abandon their present spheres of influence

in favor of the American news monopoly. The Soviet news system, which

checks the functioning of outside opinion-formers in the Soviet Union

and helps limit their activities in Eastern Europe, is their favorite

target. But they have made little headway there.

When Randal Heymanson of the North American Newspaper Alliance visited

Czechoslovakia last year, government spokesman Dr. Theodore Kuska

talked with him. Dr. Kuska said the Czech film industry would be

nationalized and _newspapers would be published only by political

parties, trade unions and similar responsible groups_. “Only in this

way,” said Dr. Kuska, “can the press be regarded as truly free.”

It is not recorded whether the N.A.N.A. representative swooned on the

spot. But for the benefit of Brooks Atkinson, it should be pointed out

that some of the responsible groups Dr. Kuska speaks of cannot even be

heard in the American press. The conditions earlier described prevent

their publishing papers or obtaining circulation of their views.

Thus, control of the press and control of opinion is rigidly frozen

into monopoly shapes here; the Czech proposal seems to promise a much

broader freedom of the press.

Responsibility of the Press

Indeed, if Mr. Atkinson will look about him in the Soviet Union, he

will see an extension of the idea suggested by Dr. Kuska. As described

by Alexander Kendrick at an American-Soviet Cultural Conference in New

York recently, the Soviet press is unique. Before the Revolution, there

were 859 newspapers in the Czar’s realm, with a total circulation of

2,700,000 and a policy dictated by the Russo-Asiatic Bank. Today there

are 9,000 papers in 80 languages with a circulation of 40,000,000 and

several readers to every copy of each paper.

Compared to our papers, there are obvious differences: no sensation, no

spice, no scandal, no desperate competitive drive for entertainment.

The newspapers are all informative, they tend to be typographically

excellent, their news is presented in careful, balanced form so that

the constant reader is prepared to grasp new developments as they take

place. The cultural leaders of the country, scholars, critics, writers

and musicians, contribute to the papers.

The principal difference, however, is in their publishers. No paper is

published for profit. No multimillionaire can control public opinion.

No people’s organization is without a newspaper: trade unions, hundreds

of them; national groups; local, district and national government

councils; sport groups; youth groups; women’s organizations. They are

crusaders, too; not reactionary anti-vivisection crusaders like the

Hearstlings here, but stinging critics of public and governmental

bodies for sloppy execution of their tasks. And there is a contact

between the readers and the papers that would be inconceivable here.

Newspaper staffs hold regular meetings with readers to discuss

problems raised by the readers and most papers have an annual

readers’ conference at which editors make public accounting of their

stewardship. The Soviet Constitution guarantees printing presses and

stocks of paper to the organizations of the people, such as trade

unions, cultural and scientific organizations, etc. It has not remained

a paper promise: the press is entirely in popular hands. It operates

in a responsible way to further Soviet objectives by stimulating more

active support, by exposing failures.

There is, however, definitely no freedom of the press for

rent-collecting landlords, bankers, industrial monopolists. The Soviet

press is frankly not a formally democratic press but a press of the

working people. That no longer bars any important body of Soviet

citizens, since exploiting classes no longer exist there. The rule

operates primarily to assure an ever-expanding popular participation in

the nation’s political and economic life, while it hampers the work of

hostile foreign intelligence services. This would hardly seem the fit

subject of a diplomatic protest by the British Foreign Office or the

U. S. State Department.

A press of that kind would solve most of the problems of “freedom

of the press” in our country. It can be attained somewhat short of

Socialism, as is occurring in some parts of Eastern Europe. But such a

goal must be recognized as a distant one. Its attainment will require

the utmost effort of the whole American people. A first step is to

spread understanding of the class character and function of the press

as a whole.

What Can We Do?

Is there anything we can do about the present super-monopoly control of

our press which gags all but a handful of the 140,000,000 Americans?

The individual writer can hardly formulate meaningful proposals along

this line. Labor itself, particularly the larger progressive unions,

the C.I.O. as a whole, and strong combinations in industrial areas

where trade union membership is concentrated, must certainly give more

thought to the publication of newspapers. To be successful, they will

need labor’s formal participation but they must not be limited to trade

union scope. On the contrary, they should champion labor’s political

and other interests, as well as the interests of the people as a

whole. Labor must also seek a more direct voice in the few relatively

pro-labor dailies now in circulation, because direct participation

will reduce the waverings to which liberal papers tend. _Labor must

also combat the commodity-news pattern and help create an audience for

balanced, trustworthy information. A labor paper should aim at that

end._

Beyond that, labor and liberals should consider legislation to ease the

present monopoly. Postal and communications subsidies--free mailing,

in fact--plus other government aid, should be given to newspapers and

mail-circulation newsletters of responsible popular bodies. At the

same time, government subsidies should be taken away from the monopoly

press; private enterprise should be compelled to stand on its own feet

in the publishing business.

Finally, the truth about the American press--that it is the

uncontrolled and unlimited voice of monopoly capital--should not

operate to discourage constant pressure on the owners to deal fairly

and adopt more liberal policies. This is a democracy, whatever its

monopoly limitations; the publishers cannot completely ignore voices

that are numerous enough and insistent enough. But the pressure should

be concentrated where it has most chance to do good: on the powerful

pro-fascist press bloc responsible for the worst excesses of our

monopoly press. The recent picket lines and boycott of the _Daily

News_ in protest against columnist John O’Donnell’s anti-Semitic

provocations, demonstrate that results can be obtained. As a matter

of fact, the “Fascist fringe” is very vulnerable. A good, strong,

nationwide boycott, centering on the more blatantly fascist preachings

of the bloc, might very well act as a deterrent and check on both

policy and ownership. The curbing of the reactionary bloc would improve

the whole tone of the press. This is the nearest thing to an attainable

free press objective in the United States, at least for today.

It goes without saying that any realistic effort to improve our press,

must operate within the framework of a larger political program.

Only a program that understands the necessity for curbing the huge

monopolies--even within the limits of the capitalist system--can

seriously approach the problem of press freedom. None but a program of

independent labor-progressive political action can even aim at this

goal. Only a program that takes Socialism as its ultimate objective,

will consistently understand and face the problems along the way. This

places the heaviest responsibility upon Marxists and class-conscious

workers, manual and intellectual, newspapermen not least among them.

FOOTNOTES

[A] Banks, oil companies, etc., still have experts stationed in key

cities abroad to keep them posted on specialized business developments

of the greatest ultimate general political significance. “This kind of

intelligence service, which many foreign chancelleries might envy, has

been of great service to America’s foreign trade,” says O. W. Riegel,

in _Mobilizing for Chaos_. The vital news gathered by these private

agencies is withheld from the press, except when calculated “leaks”

will serve the interests of industry or of the State as a whole. The

press never howls about this kind of censorship.

[B] Published April, 1946, under the title of _Peoples Speaking to

Peoples_.

[C] Word doctoring is a national industry. The award for the best

public relations trick of 1945 went to Dr. Claude Robinson for helping

industry in its biggest job: “The proper interpretation of profits to

the public.”

_New Publications_

WHO OWNS AMERICA, by James S. Allen $ .10

PEACE OR WAR. THE PEOPLE AGAINST THE WAR-MAKERS,

by Eugene Dennis .03

SOCIALISM--WHAT’S IN IT FOR YOU, by A. B.

Magil .10

THE CASE AGAINST DAVID DUBINSKY, by William

Weinstone .30

THE PATH OF A RENEGADE, by Robert Thompson .05

WHAT AMERICA FACES, by Eugene Dennis .10

MEET THE COMMUNISTS, by Elizabeth Gurley Flynn .03

WHY NEGROES ARE JOINING THE COMMUNIST

PARTY, by Doxey A. Wilkerson .03

TELL THE PEOPLE HOW BEN DAVIS WAS ELECTED,

by Robert Minor .05

COMMUNISTS ON THE WATERFRONT, by Herb

Tank .35

WHAT ARE WE DOING IN CHINA?, by Joseph

North .05

AMERICA’S HOUSING CRISIS, by Louise Mitchell .05

ENEMIES OF THE PEACE: PROFILE OF THE “HATE-RUSSIA”

GANG, by Sender Garlin .10

THE FIGHT FOR A NEW CHINA, by Mao Tse-tung .25

NEW CENTURY PUBLISHERS · 832 Broadway, New York 3, N. Y.

Transcriber’s Notes

Punctuation, hyphenation, and spelling were made consistent when a

predominant preference was found in the original book; otherwise they

were not changed.

Simple typographical errors were corrected; unbalanced quotation

marks were remedied when the change was obvious, and otherwise left

unbalanced.

On the Publisher’s page, to the left of “209” is a symbol that probably

is a Union label.

Footnotes, originally at the bottoms of pages, have been resequenced

and placed together at the end of the main text, but before the

advertisement.

Page 32: ‘Moreover, “government propaganda”’ occurs on two consecutive

lines, but the first one was incomplete, ending with ‘propa-’ (no

quotes). Transcriber completed it to make it comprehensible.

The "free press" · 第 4 / 4 章