Directors' Fees
by Eric Spiegler
Ever wonder what's behind the mainstream media's bloodlust over Iraq? Okay,
some obvious explanations leap to mind. War sells papers and boosts
ratings. Journalists often don't know much about foreign countries or
economics. Reporters want "access" to the policymakers, who aren't so
accessible when their policies are criticized. It makes the job easier.
Even so, the endless columns calling for war, the near blackout of news
about protests and the polls showing overwhelming support for the bombing
(I can just picture the question: "Do you agree that we should nuke Baghdad
or are you some kind of unpatriotic scum?") seem like more than mere
knuckling under to the government. Just like any other business, in
journalism the bosses tell the employees what to do. In the 1998 edition of
Project Censored, Peter Phillips looked at who sits on the boards of
directors of 11 of the U.S.'s largest media companies and found that
(surprise) they sit on the boards of other corporations. So the bosses from
companies ranging from hospital chain Columbia/HCA to hospital supplier
Phillip Morris (seriously) sit in positions to choose the editors who
decide how the news is presented.
Phillips lists the corporations that have ties to the boardrooms of the
fourth estate and they include many companies that stand to profit from
U.S. policy in Iraq. The most obvious profiteers are the defense
contractors, two of whom own TV networks: General Electric (NBC) and
Westinghouse (CBS). Among CBS's directors is Frank C. Carlucci III, who
happens to have been a deputy director of the CIA under President Carter
and was Secretary of Defense from 1987-89, when Saddam Hussein was a valued
U.S. asset. (Now that's cashing in on the D.C. revolving door from
government to industry!) Both companies share directors with other defense
contractors: Allied Signal and Textron for NBC; General Dynamics for CBS.
GE doesn't just own NBC and sponsor news shows on PBS, it also provides a
member of the board of directors at the Washington Post, as does Textron.
The Post, by the way, owns Newsweek and the Everett Herald, and is the
former employer of the Seattle P-I's editorial page editor.
No company got better PR out of the 1991 Gulf War than Raytheon, whose
Patriot missiles looked far more effective on TV than they were in reality.
Raytheon happens to have two directors on the board of Knight-Ridder, which
owns the Philadelphia Inquirer, Miami Herald, San Jose Mercury-News, and
49.5 percent of the stock in the Seattle Times.
In last month's bombing, the Navy unloaded several hundred "obsolete"
cruise missiles on Iraq at $1 million a pop, coincidentally making room for
orders for new ones. The missiles were made in Kent by Boeing, which
provides a member of the board at Times Mirror, owner of the Los Angeles
Times, Long Island Newsday, and the Baltimore Sun.
The obvious reasons the U.S. wants to crush Iraq is to control the flow of
oil. Does the oil industry influence news coverage of Iraq (or for that
matter any other oil producing country like, say, Nigeria, which we're now
told is becoming more open to dissent)? They might if they had a pipeline
to the boardrooms--and as it turns out, they do. The New York Times has a
director who also sits on the board at Texaco. At Times Mirror you can find
a director from Amoco. Ashland is represented at the Washington Post.
Phillips Petroleum has a director at Knight-Ridder. Meanwhile Gannett, the
nation's largest newspaper chain and owner of USA Today, has a director
from du Pont, which technically isn't an oil company, but you'd be hard
pressed to find many of their products that aren't made from petroleum.
The same holds true on the broadcast side. Mobil and Chevron
representatives sit on the board at Time Warner, which owns CNN and Time
Magazine. CBS has directors from Ashland and Sunoco. Exxon has someone on
the board at NBC, as does Goodyear, whose tires are made of synthetic
rubber which is made from oil.
The banking industry also benefits from the U.S.'s Iraq policy, as it has
from every American military action. The investment banks underwrite U.S.
debt to pay for the bombing, which has the added benefit of letting other
nations know that they may be next if they try to stand up to western
capital. That may come in handy as debt is destroying economies from
Indonesia to Venezuela (and, hey, there's oil in those places, too).
The banks and Wall Street firms are well-positioned to have their voices
heard in America's newsrooms. J.P. Morgan & Co. has people on the boards of
Knight-Ridder, the Washington Post and NBC. That's the same J.P. Morgan
that played a major role in getting the United States into World War I
because it was Britain's biggest creditor and its loans would have been
worthless if Germany had won. Bet you didn't learn that in your high school
history class.
Bank of America provides a director for Gannett and Walt Disney, which owns
ABC. Chase Manhattan has directors at CBS and NBC. Citicorp has directors
at Time Warner and NBC. Banc One is represented at CBS. Lehman Brothers has
a director at the New York Times. Salomon and Wells Fargo have directors at
the Washington Post. Bankers Trust New York has a director at Fox, and
American Express directors can be found at Gannett, the Washington Post,
and Time Warner.
Other companies that can profit from the bombing are also represented in
the mainstream news outlets, but you get the idea. When you look at who's
calling the shots and how they make money, a lot of corporate news coverage
makes sense. Don't expect the press to take universal health care seriously
when the industry has people in major media boardrooms. Preventing cancer
and other diseases rather than treating them with expensive drugs? Lots of
polluters (including the dioxin-spewing publishers themselves) and drug
companies are positioned to keep that perspective from the public (see also
this week's Media Watch). How about some honest coverage of global warming or
solar power? Yeah, right.
By controlling how the news is presented, Boeing, Exxon, and the rest get
plenty of advertising for their war. And the beauty of it is, the networks
and newspapers pick up the tab, because when you're on a corporation's
board, the corporation pays you. Sweet.
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