From the WSJ Opinion Archives
FROM THE PUBLISHER
A Report to Our Readers
The same standards of accuracy, fairness and authority will apply to this publication, regardless of ownership.
Dear Readers:
Since May, one of the biggest business stories has been who will own Dow Jones, publisher of The Wall Street Journal--despite this era's usual relegation of a mere $5 billion transaction to a footnote. The coverage has been gratifying as a reminder of both the deep interest among our readers and the broad role the Journal plays in markets, business and beyond.
Now a majority of the Bancroft family, which has controlled Dow Jones since financial-journalism pioneer Clarence Barron bought out Charles Dow, Edward Jones and the other founders in 1902, has decided to sell its shares to News Corp.
What would a sale mean to the Journal and, most importantly, to readers? You will make the ultimate judgment, but the talented and committed journalists who produce the Journal have a simple plan. They will aim to do what they have done for more than a century: earn and keep the trust of the world's most demanding readers by delivering the most essential news and analysis.
This highly differentiated journalism created by our nearly 2,000 business reporters and editors has given Dow Jones unique advantages in the transition to the Digital Age. We have a record number of paying subscribers to the print and online Journal; the Journal franchise remains the leading outlet for business advertisers; and people now get our news from many new-media outlets. In a digital world where the best brands have the best opportunities, the sizable offer by News Corp. is a reminder that value goes to those who apply great brands to changing technologies for the benefit of consumers.
Readers can rely on this: The same standards of accuracy, fairness and authority will apply to this publication, regardless of ownership. Our reporters and editors feel an especially strong obligation because the Journal, from the beginning, redefined financial and business journalism.
In 1889, Dow and Jones launched the Journal to revolutionize markets by spreading authoritative information beyond insiders to individual investors. In the first issue, they made a pledge that stands today. "The fundamental principles in carrying out our news business are these: To get the news, to publish it instantly, whether bull or bear. No operator controls or can control our news. We are proud of the confidence reposed in our work. We mean to make it better. And we mean to have the news always honest, intelligent and unprejudiced."
As the Journal made markets more transparent, its role expanded. Under Clarence Barron, who in 1920 helped uncover the original Ponzi scheme, resulting in the conviction of Charles Ponzi, and who sent up to 100 notes daily to his editors, the mission grew to encompass "the truth in its proper service." Shortly before his death in 1928, Barron encouraged the Journal staff to go beyond basic facts: "What I want you to remember in respect to wisdom is that more and more we are called upon not only to be the gatherers of facts, but to set forth intelligence regarding those facts. We will be called upon also more and more in the future to give the wisdom in relation to those facts and the presentation of that intelligence."
Why do we consider the integrity of business and financial journalism to be even more important than for many forms of general-interest news?
Our readers must be able to trust that our facts are right. Livelihoods depend on it, and capital is deployed because of it. Even beyond that, our readers must also be able to trust that the analysis, perspective and context we apply to facts--forms of interpretive journalism our readers expect, but few beyond the Journal can practice--reflect only the honest assessment of our journalists. Readers equally must trust that our opinions, agree or disagree, reflect only the honest view of Journal editorial writers, rooted in a consistent set of principles that the Journal has adhered to for decades.
Any buyer of Dow Jones knows that the foundation of value is the trust of readers in the brands and the journalism. Indeed, the first topic discussed by News Corp. Chairman and Chief Executive Rupert Murdoch with the Bancroft family in their negotiations was the importance of accurate and independent journalism. Mr. Murdoch told the Bancrofts that "any interference--or even hint of interference--would break the trust that exists between the paper and its readers, something I am unwilling to countenance. Apart from breaching the public's trust, it would simply be bad business."
To this end, News Corp. and the Bancrofts agreed on standards modeled on the long-standing Dow Jones Code of Conduct. These include:
• Facts are accurate and fairly presented;
• Analyses represent the publications' best independent judgments rather than their preferences, or those of their owner, sources, advertisers or information providers;
• Opinions represent only the applicable publication's own editorial philosophies centered around the core principle of "free people and free markets";
• There are no hidden agendas in any journalist undertakings; and
• Accuracy and fairness extends to coverage of any real or perceived business interests of News Corp.
A special committee will be charged with helping ensure that these standards apply to all Dow Jones publications and services. The top editors of the Journal and Dow Jones Newswires, who will remain in their jobs under terms of the agreement, issued a statement in response:
"Generations of Wall Street Journal editors and reporters have had a covenant with our readers to provide fair and accurate reporting on the many subjects we cover every day. Our priority as editors is earning and keeping the trust of the world's most demanding readers by delivering the most essential news and analysis.
"We are grateful to the Bancroft and Murdoch families for their agreement endorsing the principle of editorial independence that has long been the hallmark of Dow Jones and The Wall Street Journal. We recognize that the best assurances of independence are reporters and editors committed to following news where the facts lead and to expressing opinions based on consistent principles. We want to assure our readers that we will remain as committed to those values under new ownership as we have been for more than a century."
Put simply, readers would know if for any reason our journalism could no longer be what our founders defined as "honest, intelligent and unprejudiced," and they would make their own judgments.
While the importance of the continued integrity of our journalism cannot be overstated, some of the concerns raised about the acquisition have been illegitimate--and could wrongly impugn the Journal. One is the notion that somehow ownership could be separated from control. As owner, Mr. Murdoch will be fully accountable for the company, from the credibility of its brands to its financial performance. This is a strong protection for readers because it's the reputation of our journalism that drives so much of the value of Dow Jones.
Also, some of the criticism of News Corp. has suggested that honest journalism cannot be done with an owner whose political views are often considered to be conservative. This reflects a bias of its own that I hope readers of all political views will reject.
The acquisition by News Corp. could herald an era of increased opportunity and growth. Mr. Murdoch's 65% premium for Dow Jones shares is evidence that the most trusted, authoritative and differentiated news brands and journalism have more and not less value in today's information-overloaded world. Business models for news media are under pressure. Once-distinguished news brands have disappeared, and many others are challenged.
Change is the only guarantee for media in the Digital Age, and my colleagues and I are among the most optimistic in the industry about change. We may have had only one owner for several generations, but the Journal has undergone enormous change: from a one-section newspaper narrowly focused on markets for subscribers in New York to today's global business franchise across print, online and other digital media platforms.
Most recently, surveys show that you approve--by 80%-plus scores among subscribers--of our rethinking of the print Journal in January, to focus more on what the news means, beyond just what happened the day before. More people are subscribing to the print Journal or buying it at newsstands since the relaunch; almost all other U.S. newspapers have declined in quality circulation. We're expanding color capacity and plan next year to launch a glossy magazine that will be distributed with the Journal.
Likewise, The Wall Street Journal Online continues to thrive. We project that WSJ.com will soon reach the milestone of one million paying subscribers. More people now read the Journal throughout the day: Some 40% of print subscribers have access to the online Journal, double the proportion of two years ago. With more people accessing our journalism however, whenever and wherever they want it, this past quarter the unit of Dow Jones that includes the Journal had an increase of more than 30% in operating income.
As successful as we've been making the transition to digital media, the Journal could have even more potential as part of News Corp., which could provide greater distribution globally, including via broadcasting, cable and satellite operations. There could be investment to add Journal news and opinion coverage, accelerate product innovation across print and online and help us play the leading role outside the U.S. that we have long played in our home market.
In short, readers should expect what they have always expected from the Journal. In an era when reliable, accurate and knowledgeable business news and information is more valuable than ever, the highest standards are good journalism and good business. My colleagues and I hope that as part of a larger company we can extend our journalism more broadly, to serve more readers better. We also hope that our new owners will challenge us always to pursue the great ambition of founders Dow and Jones for the Journal: "In all things first, and in many things alone."
Mr. Crovitz is publisher of The Wall Street Journal.
