NEWSPAPER FAILURE.

Shannon News, 19 May 1925, Page 4

NEWSPAPER FAILURE.

MELBOURNE "SUN" CEASES PUBLICATION. HALF A MILLION SUNK IN VENTURE. WORLD-WIDE TREND TO MORNING PAPERS.

Details of the circumstances attending the discontinuance of publication by ■ the "Evening Sua" and the transference of the "Sun Pictorial" to the "Melbourne Herald," are contained in papers to hand by the Australian mail. As Harold Burs,ton, writing in the "Herald" remarks: "The abandonment of the "Evening Sun" the decision to sell the News Pictorial" and the Sydney "Sun" Company's decision to withdraw from Melbourne, constitute the worst tragedy in the history of journalism. No oher Australian newspaper venture had been so well equipped with funds to embark on an ambitious enterprise, to establish a thoroughly efficient plant a"ad to provide an organisation of the best literary and mechanical talent available."

The facts of this venture as, ,told by the same journal, are w'orth recapitulating. The "Evening Sun" was launched in the first week of April, 1923. A good deal of money and a great deal of newspaper-making talent were at its service. The parent company had sent over £150,000, taking up all the ordinary shares then issued at £l. A sum of £IOO,OOO had been raised partly in Sydney partly in Melbourne,, by the isque of 1000,000 eight per cent, cumulative preference shares. A morning illustrated paper had been started, and by that tim e was doing well. There is no doubt that the parent company fully believed that the capital provided sufficient to secure bulding and plant, :..iui leave something for working expenses, would provide nearly or r even completely sufficient for the great venture. Nothmg was spared ,to secure everything needed, in the opinion of those directing the enterprise, to give the public high quality in production and distribution. Huge Losses.

Yet it has been a complete failure and there is now open confesison that the enormous costs of newspaper production have definitely ended the enterprise. The company had not been long going when the capital had to be increased by another £150,0,00, the issue being made in £1 ordinary shares for which the parent company again had to pay. This made £400,000 of actual cash expended in the venture. Early this year more money was needed. The company increased its capital to £500,000. We understand that the lull half-million pounds sterling has been absorbed in plant, buildings, working capital and trading losses. No doubt a very large part of this is recoverable by disposal of such first-class assets as machinery, real property and the illustrated morning paper, but it is quite clear that the half-million has proved a totally inadequate sum for the purpose of the company. Indeed, we doubt whether the provision of even a much greater sum would have availed. The Sydney group would have certainly .gone on had it felt any assurance that the journal could have been established v.ith some further expenditure, but apparently it has decided that success Jjuld be achieved, if at all, only by such a stupendous expenditure as would make the whole venture financially unsound, and it has preferred lo "cut its losses." Difficulties of Journals.

It is perhaps not realised by the public, always censorious, and apt to regard its daily commodities as matter-sof-course, that newspaper production is one of the most intricate and difficult of businesses. The expenses, always very great, have doubled since pre-war days. The principal raw material, white newsprint, costs double pre-wair price. The large professional, mechanical and other staffs required, working at high speed and requiring qualities of accurary and precision, properly reqiure good working conditions and good living conditions. Experiences Abroad. The "Evening Sun" experience may seem a surprising one, but it is only in keeping with what has been happening during and since the war in other great cities. In London during few years three dailies have disappeared— "The Globe," "The Standard," < and 'The Pall Mall Gazette" —whilst "The Westminster Gazette" has been changed from an evening to a morning paper. London, with its population o feight millions, and its vast provincial connections, has now three evening papers only ■ —"Evening News," "Standard," and "Star." In New oYrk to-day there are five fewer papers than eight years ago. Four journals, including two of the most famous newspapers in American history .have disappeared within the last eighteen months. Chicago, a generation ago, had five morning papers; to-day it has only two. St. Louis, with over 800,000 inhabitants, has but one morning paper. The fact that half a million pounds was spent in the Melbourne effort without good results, does not therefore, surprise those conversant with newspaper enterprises elsewhere. ' !