Wall Street Journal – Page 4

Jonathan Kaufman to lead Northeastern’s J-School

kaufman-e1434464059328 — Jonathan Kaufman

Today is an exciting day for Northeastern University’s School of Journalism: We are finally able to announce that our new director will be Jonathan Kaufman, a Pulitzer Prize-winning journalist and the executive editor of Bloomberg News. Kaufman, who is also a veteran of The Boston Globe and The Wall Street Journal, will be joining us on July 13.

Laura Krantz of the Globe covers the story here.

Jonathan’s arrival means that my stint as interim director will soon be coming to an end. I’ve been serving in that role since last September, filling in for Steve Burgard, who was taking a sabbatical to work on a book project. My term was unexpectedly extended last October when Steve died after a brief illness.

It’s been an interesting and sometimes difficult year to say the least. But Jonathan will be a worthy successor to Steve. We are all expecting great things.

Below is the official announcement, which is also online.

BOSTON — Northeastern University’s School of Journalism today announced the appointment of veteran business journalist and Bloomberg News Executive Editor Jonathan Kaufman as the school’s new director. Kaufman will begin his new role at Northeastern on July 13.

“I am thrilled to be joining Northeastern to help shape the next generation of journalists in the U.S. and globally, expand new media and digital innovation, and reflect and speak out about the challenges and opportunities journalism faces in the 21st century,” said Kaufman. “Northeastern has blazed a trail with its blend of classroom and experiential learning. I look forward to working with the faculty and students in the exciting years ahead.”

As Bloomberg’s Executive Editor for Company News, Kaufman oversees more than 300 reporters and editors worldwide covering business, health, science, education and international news for Bloomberg News newswire, Bloomberg Businessweek, and Bloomberg.com. Under his leadership, Kaufman’s team at Bloomberg has won numerous awards, including a 2015 Pulitzer Prize, several George Polk Awards, an Overseas Press Club Award, a Gerald Loeb Award, and an Education Writers Association Grand Prize.

Before joining Bloomberg, Kaufman held various positions at The Wall Street Journal, most recently as Senior Editor. During his time as the Journal‘s China Bureau Chief, Kaufman led coverage of the country’s emergence as a global economic superpower, the SARS outbreak, and environmental and social issues. A graduate of Yale University (BA) and Harvard (MA), Kaufman began his journalism career at The Boston Globe in the early 1980s, where he won a Pulitzer Prize as part of a team examining racism and job discrimination in Boston. He is the author of two books, “A Hole in the Heart of the World: Being Jewish in Eastern Europe” and “Broken Alliance: The Turbulent Times Between Blacks and Jews in America.”

“Jonathan is a gifted journalist and an acknowledged leader in his field,” said Bruce Ronkin, Interim Dean in the College of Arts, Media and Design, which houses the School of Journalism. “He brings decades of experience across traditional and digital media to Northeastern, along with deep knowledge of the business sector and a global worldview. He is a perfect fit for our school and the university.”

At the helm of the School of Journalism, Kaufman will lead an accomplished team of faculty, oversee the school’s undergraduate program serving 225 students, and continue to grow graduate programs in professional journalism and media innovation. He succeeds Associate Professor Dan Kennedy, who is serving as the school’s interim director after long-time School of Journalism director Stephen Burgard passed away in 2014.

Obama’s State of the Union drives conservatives crazy

Previously published at WGBHNews.org.

There’s plenty of fulminating in conservative media circles today over President Barack Obama’s unabashedly liberal State of the Union address.

Some of it is offered in world-weary tones suggesting that, once again, the grown-ups have to explain to the kids that the president doesn’t know what he’s talking about. “Mr. Obama’s income-redistribution themes are familiar,” The Wall Street Journal editorializes, “though they are amusingly detached from the reality of the largest GOP majority in Congress since 1949.”

Some of it is angry. “The president continues to count on and to exploit the ignorance of many of our fellow citizens,” thumps Scott Johnson of Power Line.

And some of it is just petulant. Breitbart’s Ben Shapiro concludes a long adolescent rant about Obama with this unmemorable line: “the state of his union sucks.”

Leave it to David Frum of The Atlantic, though, to explain what might have really been going on Tuesday night. A former speechwriter for President George W. Bush, Frum is the closest thing we’ve got these days to a moderate Republican commentator. And he thinks Obama was aiming his proposals — tax hikes for the rich, tax cuts for the middle class and new governmental benefits such as free community college — at an audience of one: Hillary Rodham Clinton.

“The intent, pretty obviously, is to box in his presumptive successor as head of the Democratic Party,” Frum writes. “Every time the president advances a concept that thrills his party’s liberal base, he creates a dilemma for Hillary Clinton. Does she agree or not? Any time she is obliged to answer, her scope to define herself is constricted.”

The effect, Frum predicts, will be to push the pro-business Clinton to the left and thereby hand an opportunity to the Republican presidential aspirants.

Whatever Obama’s motivation, there’s no question that his demeanor was that of a conquering hero rather than a weakened president facing the first all-Republican Congress of his tenure.

“Obama delivered an hour-long defense of his policies that at times sounded like a victory lap,” is how David Nakamura puts it in his lead story for The Washington Post. In The New York Times, Michael D. Shear calls Obama “confident and at times cocky.” Matt Viser of The Boston Globe says the president was “confident, brash, and upbeat.”

If nothing else, Obama demonstrated that he understood the atmospherics of the State of the Union. It’s a TV show, with all the entertainment values that implies. And thus there was no need for him to acknowledge the Democrats’ brutal performance in the November elections, or that the proposals he offered Tuesday have no more chance of passing than, say, Canadian-style health care. He had the podium, and the Republicans could applaud or not.

The timing was right for Obama as well. With the economy finally showing real improvement, the president’s job-approval ratings are up a bit. An ABC News/Washington Post poll puts Obama at 50 percent approve/44 percent disapprove, while an NBC News/Wall Street Journal survey has him at 46 percent approve/48 percent disapprove. Meanwhile, the public detests Congress as much as ever.

As for how the State of the Union was received, that’s a little harder to figure out. The only survey I’ve seen, from CNN/ORC, shows that 51 percent of viewers had a “very positive” reaction to Obama’s speech and 30 percent were “somewhat positive.” That’s sounds like a big thumbs-up until you look more closely at the numbers. It turns out that 39 percent of those surveyed were Democrats and just 20 percent were Republicans — a reflection of who watched the speech, not of public sentiment as a whole.

Another way of looking at that, though, is that Obama knew he was speaking to a friendly audience — not in Congress, but at home, as Democrats were far more likely to tune in than Republicans. So why not use the occasion to energize his supporters — and drive his enemies to distraction?

Obama’s detractors at Fox News were fairly restrained Tuesday night and online this morning. But you can be sure Bill O’Reilly, Megyn Kelly, et al. will be at it tonight. Meanwhile, consider this, from Charles Hurt of The Washington Times: “President Obama dedicated his State of the Union address to illegal aliens, college students and communist Cuba. In other words, all those imaginary supporters he claims to be hearing from ever since the actual American electorate denounced him, his party and his policies in last year’s beat-down election.”

More to the point, John Podhoretz writes in the New York Post that “in the most substantive speech he’s given in a long time, he has committed his presidency toward policies that have no hope of a serious hearing from the legislatures whose job it is to turn policies into law.”

Obama knows that, of course. The real message of the State of the Union was that the 2016 campaign has begun. Having long since concluded that the Republicans won’t compromise with him, the president delivered a political speech, aimed electing a Democratic president and Congress.

The James Foley video and bearing witness to evil

Previously published at WGBHNews.org.

The horrifying execution of journalist James Foley raises an uncomfortable if familiar question: Is there anything to be gained by watching the video of his beheading at the hands of an ISIS terrorist?

It’s a question that I explored 12 years ago, when Wall Street Journal reporter Daniel Pearl was similarly murdered. I searched for the video online and found it at a website whose sick operators presented such fare for the entertainment of their disturbed viewers. I shared it with my friends at The Boston Phoenix, who — to my surprise — published several small black-and-white stills of Pearl’s beheading and provided a link to the full video. “This is the single most gruesome, horrible, despicable, and horrifying thing I’ve ever seen,” the Phoenix’s outraged publisher, Stephen Mindich, wrote in an accompanying editorial.

The Phoenix’s actions created a national controversy. I defended Mindich and editor Peter Kadzis, first in the Phoenix, later in Nieman Reports. (At the time I had left the paper to write my first book, though I continued to contribute freelance pieces. My departure turned out to be temporary. And Kadzis, my editor then, is also my editor now: he is the senior editor of WGBH News.) I wrote in the Nieman piece:

Daniel Pearl didn’t seek martyrdom, but martyrdom found him. The three-and-a-half-minute video shows us the true face of evil, an evil that manifested itself unambiguously last September 11…. We turn away from such evil at our peril.

I stand by what I wrote then, but I haven’t watched the execution of Jim Foley. In contrast to the Daniel Pearl footage, the Foley video is bright and clear, in high definition. I’ve watched a bit of it, listened to him speak while kneeling in the desert; but that was all I could handle.

Boston Globe columnist Jeff Jacoby takes a different view, writing, “The intrepid and compassionate reporter from New Hampshire didn’t travel to Syria to sanitize and downplay the horror occurring there. He went to document and expose it.”

I don’t disagree. But it should be a matter of choice. Gawker, among the first media outlets to post a link to the video, made sure its readers knew that what they would see if they clicked was “extremely disturbing.” By contrast, the New York Post and the Daily News published front-page images of Foley (I’ve linked to a Washington Post story, not the actual images) just before his beheading — in the New York Post’s case, barely a nanosecond before.

It’s a fine line, but I’d say Gawker was on the right side of it, and the New York tabloids were not.

At the time of his capture, Foley was freelancing for GlobalPost, the Boston-based international news organization. GlobalPost co-founder and chief executive Phil Balboni, in a tribute published in the Globe, wrote:

For those of us who knew Jim, the road ahead will be particularly long and trying. As a lifelong journalist, the path forward for me will be rooted in a renewed and profound respect for a profession that for Jim was not a job, but a calling.

And here is an interview with GlobalPost co-founder Charles Sennott, talking about Foley on WGBH Radio (89.7 FM).

We’ve learned a lot since the execution of Daniel Pearl. One of the things we’ve learned is that bearing witness does not necessarily lead to a good result. Years of war in Iraq and Afghanistan have not created a safer world.

Do we have a right to view the James Foley video? Of course. Twitter, a private company that has become a virtual public utility, is heading down a dangerous road by banning images from the video. Should we watch the video as a way of witnessing unspeakable evil, as Jeff Jacoby argues? That, I would suggest, should be up to each of us.

Above all, we should honor the bravery and sacrifice of journalists like Daniel Pearl and James Foley, who take risks most of us can scarcely imagine. Let’s keep the Foley family in our thoughts, and celebrate the safe return of Peter Theo Curtis. And let’s send offer whatever good thoughts we can for Steven Sotloff, a fellow hostage of Foley’s who was threatened with death last week.

The Globe’s Erin Ailworth heads for The Wall Street Journal

In addition to the Geoff Edgers move that I mentioned earlier, I understand that Boston Globe business reporter Erin Ailworth is leaving for The Wall Street Journal. Ailworth has been a stalwart on the Market Basket story.

Apologies for not having much in the way of details. But the fact that papers like the Journal and The Washington Post are hiring suggests that the journalism-jobs logjam of recent years is starting to break free — at least at a few of our largest news organizations.

https://twitter.com/ailworth/status/494961200846094336

Why Rupert Murdoch probably won’t buy the Herald

Published earlier at WGBHNews.org.

Here’s the answer to today’s Newspaper Jeopardy question: “Maybe, if there’s a willing buyer and seller.”

Now for the question: “With Rupert Murdoch getting out of the Boston television market, is there any chance that he would have another go with the Boston Herald?”

Following Tuesday’s announcement that Cox Media Group would acquire WFXT-TV (Channel 25) from Murdoch’s Fox Television Stations as part of a Boston-San Francisco station swap, there has been speculation as to whether Murdoch would re-enter the Boston newspaper market. Universal Hub’s Adam Gaffin raises the issue here; the Boston Business Journal’s Eric Convey, a former Herald staff member, addresses it as well. I’ve also heard from several people on Facebook.

First, the obvious: There would be no legal obstacles if Murdoch wants to buy the Herald. The FCC’s cross-ownership prohibition against a single owner controlling a TV station and a daily newspaper in the same market would no longer apply.

Now for some analysis. Murdoch is 83 years old, and though he seems remarkably active for an octogenarian, I have it on good authority that he, like all of us, is not going to live forever. Moreover, in 2013 his business interests were split, and his newspapers — which include The Wall Street Journal, The Times of London and the New York Post — are now in a separate division of the Murdoch-controlled News Corp. No longer can his lucrative broadcasting and entertainment properties be used to enhance his newspapers’ balance sheets.

Various accounts portray Murdoch as the last romantic — the only News Corp. executive who still has a soft spot for newspapers. The Herald would not be a good investment because newspapers in general are not good investments, and because it is the number-two daily in a mid-size market. Moreover, the guilty verdict handed down to former News of the World editor Andy Coulson in the British phone-hacking scandal Tuesday suggests that Murdoch may be preoccupied with other matters.

On the other hand, who knows? Herald owner Pat Purcell is a longtime friend and former lieutenant of Murdoch’s, and if Rupe wants to stage a Boston comeback, maybe Purcell could be persuaded to let it happen. Even while owning the Herald, Purcell continued to work for Murdoch, running what were once the Ottaway community papers — including the Cape Cod Times and The Standard-Times of New Bedford — from 2008 until they were sold to an affiliate of GateHouse Media last fall.

There is a storied history involving Murdoch and the Herald. Hearst’s Herald American was on the verge of collapse in 1982 when Murdoch swooped in, rescued the tabloid and infused it with new energy. Murdoch added to his Boston holdings in the late 1980s, acquiring Channel 25 and seeking a waiver from the FCC so that he could continue to own both.

One day as that story was unfolding, then-senator Ted Kennedy was making a campaign swing through suburban Burlington. As a reporter for the local daily, I was following him from stop to stop. Kennedy had just snuck an amendment into a bill to deny Rupert Murdoch the regulatory waiver he was seeking that would allow him to own both the Herald and Channel 25 (Kennedy’s amendment prohibited a similar arrangement in New York). At every stop, Herald reporter Wayne Woodlief would ask him, “Senator, why are you trying to kill the Herald?”

The episode also led Kennedy’s most caustic critic at the Herald, columnist Howie Carr, to write a particularly memorable lede: “Was it something I said, Fat Boy?” Years later, Carr remained bitter, telling me, “Ted was trying to kill the paper in order to deliver the monopoly to his friends” at The Boston Globe.

Murdoch sold Channel 25, but in the early 1990s he bought it back — and sold the Herald to Purcell, who’d been publisher of the paper, reporting to Murdoch, for much of the ’80s. It would certainly be a fascinating twist on this 30-year-plus newspaper tale if Murdoch and Purcell were to change positions once again.

Goldsmiths honor journalism in the public interest

By Bill Kirtz

It started with one miner’s medical and legal nightmare and developed like a John Grisham novel. And finally it led to extensive reform of black lung diagnosis.

The Center for Public Integrity’s and ABC News’ yearlong work won it the $25,000 Goldsmith Prize for Investigative Reporting this week.

It took a medical database and exhaustive scrutiny of previously classified legal findings to produce the series. But Chris Hamby, the Center’s lead reporter, told a Harvard audience on Thursday that his research began with a plight “you just couldn’t ignore”: miner Gary Fox’s “outrageous” treatment by doctors and lawyers.

While Hamby circumvented privacy laws by getting miners’ consent to view their records, ABC News producer Matthew Mosk discovered a law firm that operated “like a John Grisham novel.”

As in past years, finalists for the Goldsmith awards, administered by the Kennedy School’s Shorenstein Center on Media, Politics and Public Policy, included much such collaboration between media and public service organizations. Goldsmith winners and finalists are traditionally seen as front-runners for Pulitzer Prizes, which will be announced next month.

• The International Consortium of Investigative Journalists, which bills itself as “the world’s best cross-border investigative team,” used Australian, Chinese and British reporters to reveal a universe of offshore money manipulation that has sparked international tax investigations.

ICIJ director Gerald Ryle said he was leaked 2.5 million files via hard drive and is proud that none of his operation’s anonymous informants has been caught. The 50-article series provides important context into powerful figures’ financial machinations. “We didn’t want to be Wikileaks and just dump documents,” he said.

While Ryle said his reporting was attacked in the Australian Senate and drew four libel suits, he noted that a Chinese colleague has faced even more danger. Kevin Lau, the former chief editor of the Hong Kong newspaper Ming Pao, was fired and then critically wounded in an attack last month. Ming Pao was one of ICIJ’s partners in the Offshore Leaks investigation.

• Another wide-ranging project was a bilingual multimedia revelation of widespread sexual assault against immigrant women by the Investigative Reporting Program at UC Berkeley’s School of Journalism, the Center for Investigative Reporting, “Frontline,” Univision and KQED.

Reporter Andres Cediel said it took 18 months after an anonymous tip to produce the series, which has sparked criminal charges and pending legislation. The problem: he was committed to telling their story in a human way, but the victims were afraid to talk on camera. His colleague Bernice Young said it took countless trips going door to door to gain their trust. “It was a long, slow process to build a relationship,” she said.

“Frontline” producer-correspondent Lowell Bergman, lead reporter on the project, noted that this was Univision’s first foray into investigative reporting and predicted more such efforts in foreign language media.

• Shorenstein director Alex Jones said the free weekly Miami New Times was “punching above its weight” when it tackled the steroid industry.

New Times managing editor Tim Elfrink, who noted his paper had previously done investigative reporting on a very local scale, said the series started when a whistleblower came to him irate over a $4,000 dispute. The informant gave him a bunch of confusing documents about a Biogenesis operation running out of a Coral Gables strip mall. Elfrink called thousands of clients’ phone numbers — getting rejected 90 percent of the time — but eventually scanned court records to uncover the shady records of some clinic operators.

The stories, which have won a prestigious Polk Award, led to the suspension of 13 baseball players and changed how baseball owners and players approach drug use.

• Seeking national impact and backed by supportive news executives, the Milwaukee Journal Sentinel scoured medical records throughout the country to expose potentially fatal flaws in newborn screening. Lead reporter Ellen Garber led a five-person team through a maze of withheld data and official denials.

When her data requests were denied, she had to negotiate state by state for records — finally penetrating the system by discovering that Arizona had kept detailed records of newborns babies from a small Native American tribe. She then confronted the head of that state’s health department, who finally released complete records.

Garber said the series, which has won the Taylor Award for fairness in journalism and the prestigious Selden Ring award for the year’s top investigative work, has had an “incredible impact,” revamping the system so blood samples arrive promptly.

• The Wall Street Journal’s Michael M. Phillips doesn’t consider himself an investigative reporter, but after covering the wars in Iraq and Afghanistan, he followed up his novelist brother’s discussions with a psychiatric researcher. This led to the discovery of secret lobotomies of servicemen after World War II.

His problem was to find out how widespread this pattern was. Freedom of Information requests denied, he turned to the National Archives, which he recommends as a fertile source of vintage information. He unearthed 18 boxes of surgical records filed under “L” — lobotomy. He picked the cases with unusual names, thinking their families would be easier to trace after more than 60 years. The multimedia presentation revealed that more than 2,000 servicemen were lobotomized, and he was able to portray some surviving victims.

• Putting a human face on a “numbers” story is a perennial challenge for investigative reporters.

Reuters staffers Scot Paltrow and Kelly Carr found egregious and widespread Defense Department accounting mistakes. Their editors shared the view of the subject’s importance but wrestled with how to make it interesting.

“Vast amounts of dollars resonates little,” said Paltrow. So they settled on a human-interest beginning to show how massive programs affect individuals:

EL PASO, Texas — As Christmas 2011 approached, U.S. Army medic Shawn Aiken was once again locked in desperate battle with a formidable foe…. This time, he was up against the U.S. Defense Department. Aiken, then 30 years old, was in his second month of physical and psychological reconstruction at Fort Bliss in El Paso, Texas, after two tours of combat duty had left him shattered…. But the problem that loomed largest that holiday season was different. Aiken had no money. The Defense Department was withholding big chunks of his pay.

Bill Kirtz is an associate professor of journalism at Northeastern University.

Headlines distort CBO report on Obamacare

The reaction to a Congressional Budget Office report released Tuesday demonstrated how easily politicians are able to game the media system.

The CBO, a respected source of nonpartisan data, found that the Affordable Care Act would lead to the disappearance of more than 2 million jobs — nearly all of them because people will choose to stop working or cut back on their hours now that their health insurance is no longer dependent on their continued employment. CBO director Douglas Elmendorf put it this way:

I want to emphasize that that reduction doesn’t mean that that many people precisely will choose to leave the labor force. We think that some people will chose to work fewer hours. Other people will choose to leave the labor force.

Of course, that didn’t stop Republican opponents from claiming that the CBO report proves the ACA is a job-killer. And why not? The media are so quick to go along. Let’s consider that this is Elmendorf’s report, and he said at a news conference precisely what it meant. Yet the very NPR story in which his remarks are quoted is headlined “Is Obamacare A Job Killer? New Estimates Suggest It Might Be.” Gah.

This morning I looked at the front pages of four major dailies. Here’s how they stack up, in order of disingenuousness.

1. The Boston Globe. “Health law projected to put a dent in workforce; GOP calls analysis proof of act’s failings.” The clear impression is that people are going to lose their jobs because of the ACA. If you would like to believe that, go right ahead — but it’s not what the CBO said. The Globe headline is slapped atop a New York Times story (below) that isn’t nearly that bad.

2. The New York Times. “Health Care Law Projected to Cut the Labor Force; Choosing Not to Work; G.O.P. Seizes On Data — Drop May Equal 2.5 Million Jobs.” Whew! Try saying it all without taking a breath. The Times’ headlines is slightly better than the Globe’s: the second deck, “Choosing Not to Work,” gets at the gist of the CBO report. But the rest of it makes it sound like Tuesday was a very bad day for the ACA. You’ve got to read the story to find out what’s really going on.

3. The Washington Post. “New fuel for the health-law fight; CBO: More will quit jobs, cut hours; Estimates revive debate over economic effects.” Not bad. The impression given by the headline is that the fight is over the economic effect of people quitting their jobs. Not quite right, but we’re getting closer. Here’s the story.

4. The Wall Street Journal. “Health Law to Cut Into Labor Force; Report Forecasts More People Will Opt to Work Less as They Seek Coverage Through Affordable Care Act.” Folks, we have a winner — a headline that accurately reflects what the CBO actually said. Good story, too. (To get around the Journal’s paywall, enter the headline at Google News. Don’t worry. Rupert knows about it and says it’s OK.)

The problem with deceptive or incomplete headlines is that few people get past them or the partisan attacks they reflect. What House Speaker John Boehner (quoted in the Times story) said is simply flat-out wrong: “The middle class is getting squeezed in this economy, and this CBO report confirms that Obamacare is making it worse.”

As U.S. Sen. Jeanne Shaheen, D-N.H., put it in a conversation with reporters (also quoted in the Times): “You guys are going to politicize it no matter what happens.”

Journalists need to resist the urge.

Headline images via the Newseum’s “Today’s Front Pages.”

Murdoch sells local papers to GateHouse investor

Rupert Murdoch is selling The Middleboro Gazette, the weekly that covers the Southeastern Massachusetts town where I grew up. I’m not sure Murdoch ever knew he owned it in the first place. It’s just something that was thrown in when his News Corporation bought The Wall Street Journal and Dow Jones in 2007.

Earlier today, Dow Jones’ chain of local newspapers — formerly the Ottaway group — was acquired by an affiliate of Fortress Investments, the majority owner of GateHouse Media, which will manage the papers. I’m not sure why GateHouse itself isn’t buying the papers, but perhaps we’ll learn more in the days ahead. Jim Romenesko has more.

Dow Jones’ regional properties include some high-quality, well-known dailies such as The Standard-Times of New Bedford, the Cape Cod Times and the Portsmouth Herald of New Hampshire.

Two questions spring to mind:

In general, the Ottaway papers have been spared some of the cuts that the financially struggling GateHouse chain has implemented. Will downsizing now commence? Or will the Ottaway papers’ odd status as non-GateHouse papers spare them?
What happens to Boston Herald owner Pat Purcell, who’s been running the Ottaway papers for Murdoch since 2008? Will he content himself with running the Herald? Or will Murdoch come up with a new assignment for him?

The deal includes 33 publications, eight of them daily papers. Romenesko reports that financial terms were not disclosed. But given that The Boston Globe recently went for $70 million — not much more than the value of its land — I can’t imagine that a significant amount of money is changing hands.

Update: From Wednesday’s New York Times:

The details of the transaction were not released, but the money involved was evidently relatively small, because if it had been bigger (or, in financial terms, material to the company) News Corporation would have had to disclose more financial information.

Ouch.

Update II: Shows you what I know. Fortress paid $87 million for the Dow Jones papers, which may be a fraction of what they were worth a few years ago, but is more than I had imagined.

According to Tiffany Kary of Bloomberg BusinessWeek, an enormously complicated reorganization is now under way. The long-in-the-making bankruptcy of GateHouse Media is now a reality, and the company will be absorbed into a new company to be created by Fortress called New Media.

Update III: Jon Chesto of the Boston Business Journal has posted a must-read analysis of what’s going on. Talk about failing up. GateHouse is going bankrupt and will become part of something bigger. And it looks like GateHouse chief executive Mike Reed isn’t going anywhere.

An innuendo-laden attack on Greenwald

Edward Jay Epstein has written an innuendo-laden column for The Wall Street Journal in which he strongly insinuates that filmmaker Laura Poitras and/or journalist/blogger/lawyer Glenn Greenwald of The Guardian criminally assisted Edward Snowden in leaking National Security Agency documents.

Epstein’s toxic brew of archly worded questions leads to the inescapable conclusion that he believes the two journalists ought to be investigated and possibly charged under the World War I-era Espionage Act.

Josh Stearns, who serves with Greenwald on the Freedom of the Press Foundation board, has some thoughts about journalism and the Espionage Act. He writes:

The First Amendment and press freedom questions that haunt the Espionage Act are particularly important right now. Changes in media and technology have put the tools of journalism and media making in the hands of more and more people, challenging old assumptions about who is a journalist and how journalism is done. Increasingly, independent journalists, nonprofit news outlets and citizens are playing critical roles in newsgathering and reporting on the most important issues of our time.

I don’t think Stearns gives sufficient weight to the idea that merely publishing leaked documents is, in fact, a violation of the law, and that investigative journalism depends on the hopeful notion that the government won’t use its authority. Otherwise, though, it’s a useful guide to the issues at stake.

More: Greenwald responds to the Epstein column in this Storify involving (mainly) Jeff Jarvis and Michael Wolff.

For the Cape Cod Times, the beginning of the trail

Screen Shot 2012-12-05 at 8.40.27 AM — Image via Today’s Front Pages at the Newseum

You may have heard that a journalistic scandal is unfolding at the Cape Cod Times. A 59-year-old reporter, Karen Jeffrey, left the paper after editor Paul Pronovost and publisher Peter Meyer concluded she had fabricated sources in at least 34 stories dating back to 1998. Jeffrey had worked at the daily since 1981.

According to the apology that the paper has published, the fabrications appear to be restricted to “lighter fare,” and that Jeffrey managed to stick to nonfiction when covering hard news. That might help explain how she got away with it for so long. Then, too, fictional sources don’t call up the editor to complain.

Still, you have to wonder if anyone either inside or outside the newsroom harbored suspicions. This is a big deal — as bad as Mike Barnicle, Patricia Smith and Jayson Blair. The only difference is that Jeffrey’s downfall is playing out on a smaller stage. Count me as one observer who would like to know more.

Jim Romenekso covers the scandal here; Poynter’s Andrew Beaujon has more here; Walter Brooks of Cape Cod Today indulges in a little schadenfreude here.

Rupert Murdoch, believe it or not, actually owns the Times, a consequence of his having bought the Wall Street Journal and its affiliated properties five years ago. Boston Herald owner Pat Purcell, a Murdoch protégé, is involved in managing the Times and other Murdoch-owned community papers.

Jeffrey’s reign of error began many years before the Murdoch era. But it will be interesting to see whether Purcell is heard from as this story unfolds.