Little interest in future of newspapers

Washington Times:

Judging from the turnout Thursday by members of the Joint Economic Committee for a hearing titled "The Future of Newspapers: The Impact on the Economy and Democracy," lawmakers are not too keen to help an industry that is often critical of Capitol Hill.

Just three of the 20 House and Senate members showed up for the hearing, which the Democratic chairman left early to vote on a House bill, putting the ranking Republican in charge. But after Rep. Carolyn B. Maloney of New York, returned, she emphatically declared what the hearing was most definitely not about.

"I want to be very clear: This is not about bailouts. No one's talking about bailouts. We're through with bailouts," the chairman said to the two other committee members who bothered to show up.

The issue is dicey and raises a fundamental question: While the Bill of Rights guarantees a free press, should the government seek to aid an industry that acts as a watchdog over the federal bureaucracy?

"We don't believe direct governmental financing is appropriate for an industry whose core mission is news gathering, analysis and dissemination, often involving that very same government," John Sturm, president of the Newspaper Association of America, said at Thursday's hearing.

With newspapers nationwide making drastic cuts to staff and budgets -- and several facing bankruptcy -- Mrs. Maloney and Sen. Benjamin L. Cardin, Maryland Democrat, have introduced the Newspaper Revitalization Act of 2009. The legislation would help community and metropolitan newspapers by allowing them to become nonprofit organizations, not unlike public broadcasting networks.

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They have already worked themselves into a non profit status regardless of how they are organized. What that means is they are not generating profits that would be taxed. The only benefit they would get from the suggested change in law is possibly the ability to attract donors to give them operating funds.