Canadian Press: R.I.P.?

By Fitzgerald, Mark | Editor & Publisher, July 13, 1996 | Go to article overview

Canadian Press: R.I.P.?


Fitzgerald, Mark, Editor & Publisher


Canadian press, the 79-year-old news cooperative, was wounded badly - perhaps fatally - by Southam Inc.'s June 26 announcement that it is pulling its 20 daily newspapers out of CP.

Southam contributes nearly $6 million (U.S.) to CP's annual $33.8 million (U.S.) annual budget. Even before the Southam announcement, CP had said it intended to cut the budget by about $5 million (U.S.).

Southam, however, is not only puffing out of the 88-newspaper cooperative - it is also going to compete with it.

The chain said it is creating its own national news service, which will also be available to non-Southam newspapers.

In a letter to CP President David Jolley, Southam Vice President Gordon Fisher said the chain's resignation is effective Dec. 31.

CP might be given a new lease on life, however, from an unlikely source: cost-cutting press baron Conrad Black.

Black's Hollinger Inc. last May doubled its stake in Southam and won controlling interest in the chain.

At the time he said he intended to slash costs at the chain even further Southam management's announced plans to cut 750 jobs over the next three years. …

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