AIM: Post Chairman Questioned on Profits, Federal Subsidies, Lobbying, and Bias

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<p>From <a href="http://bit.ly/lbUWo6">Accuracy in Media</a>&#8216;s Cliff Kincaid:</p>
<p>Washington    Post chairman Donald E. Graham, a former police  officer, said on    Thursday at the company’s annual meeting that he had no  comment on the    White House hosting a rapper who had performed a song  praising a    convicted cop-killer, Joanne Chesimard, who escaped prison  and fled to    Cuba.</p>
<p><a href="http://www.allamericanblogger.com/wp-content/uploads/2011/05/washington-post.jpg"><img class="aligncenter" title="washington-post" src="http://www.allamericanblogger.com/wp-content/uploads/2011/05/washington-post.jpg" alt="" width="300" height="199" /></a></p>
<p>“Thank  you for informing me of something that I didn’t  know,” he   replied.  “The question is an interesting one.” But he had no  comment.</p>
<p>For  someone in the news business, it was an  embarrassing moment. A   story  about the rapper’s White House  performance was on the front page   of  the “Style” section in papers  handed out to shareholders and others    attending the meeting.</p>
<p>AIM, a Post shareholder, questioned Graham about various news-related matters.</p>
<p>Further   embarrassment ensued when Graham essentially took the Fifth   and   refused to name the members of the House and Senate he has   personally   lobbied in order to stave off proposed federal regulations   that will   cut into the profits of a Washington Post Company subsidiary,   Kaplan.   “No,” Graham curtly responded, when asked if he would name   members   that he has met with.</p>
<p>Graham acknowledged that the Post has been   hurt financially by recent   congressional hearings and negative   publicity over the controversial   business practices of Kaplan and   other for-profit colleges and   universities, which are accused of   ripping off students, many of them   disadvantaged and poor. Kaplan “has   provided the handsome profits that   have helped to cover this   newspaper’s operating losses,” <a href="http://www.aim.org/aim-column/post-has-watergate-scandal-of-its-own/">admitted Post reporter Steven Pearlstein</a> in an extraordinary August 11, 2010, column. “Although we in the Post     newsroom have nothing to do with Kaplan, we’ve all benefited from its     financial success.”</p>
<p>Hence, the need for Graham to personally lobby for the survival of his company.</p>
<p>The   rapper controversy had been the subject of news reports on the     preceding day, although the Post itself, in that front-page “Style”     section story on the day of the annual meeting, played down the     controversy, attributing the “noise” over the appearance to Fox News and     conservatives such as Sarah Palin.</p>
<p>“My duties as chairman of   this company at The Washington Post annual   meeting of shareholders  are  grave and serious and many but they do not   include commenting on  the  appropriateness of the invitation of   entertainers at the White  House,”  said Graham. However, he said he would   ask the editors of the  paper  to look into it.</p>
<p>Graham was a patrolman with the Washington Metropolitan Police Department from January 1969 to June 1970, his <a href="http://www.washpostco.com/phoenix.zhtml?c=62487&amp;p=irol-govHistBio&amp;ID=27428">bio</a> notes. Outrage over White House support for the rapper known as Common     has come from law enforcement in general but especially from New   Jersey   police officers who still remember what happened to Trooper   Werner   Foerster back in 1973. He was 34-years-old and had two   children.</p>
<p>The FBI’s <a href="http://www.fbi.gov/wanted/dt/joanne-deborah-chesimard">“Wanted” poster</a> for Chesimard says, “On May 2, 1973, Chesimard, who was part of a     revolutionary activist organization known as the Black Liberation Army,     and two accomplices were stopped for a motor vehicle violation on the     New Jersey Turnpike by two troopers with the New Jersey State  Police.  At   the time, Chesimard was wanted for her involvement in  several   felonies,  including bank robbery. Chesimard and her  accomplices opened   fire on  the troopers, seemingly without  provocation. One trooper was   wounded and  the other [Foerster] was  shot and killed execution-style at   point-blank  range. Chesimard fled  the scene, but was subsequently   apprehended.”</p>
<p>The Black  Liberation Army was an outgrowth of the  Black Panthers, a   black  militant group that described police officers  as “Pigs” and called    for their deaths, supposedly in “self-defense.” A  tribute to Foerster <a href="http://www.odmp.org/officer/4964-trooper-werner-foerster">notes</a>,     “The BLA was responsible for the murders of more than 10 police     officers around the country. They were also responsible for violent     attacks around the country that left many police officers wounded.”</p>
<p>“In   1977, Chesimard was found guilty of first degree murder, assault   and   battery of a police officer, assault with a dangerous weapon,    assault  with intent to kill, illegal possession of a weapon, and armed     robbery,” notes the FBI. “She was sentenced to life in prison. On     November 2, 1979, Chesimard escaped from prison and lived underground     before being located in Cuba in 1984. She is thought to currently still     be living in Cuba.”</p>
<p>The FBI is offering $1 million for   information leading to the   apprehension of Chesimard, also known as   Assata Shakur. Members of the   Weather Underground, a group that   included Obama associates Bill Ayers   and Bernardine Dohrn, assisted in   the escape.</p>
<p>The New Jersey State Troopers Non Commissioned Officers Association has <a href="http://www.nco1921.org/pdf/cuba-fugitive.pdf">asked</a> that Chesimard and other fugitives be returned to the U.S. before     President Obama normalizes relations with Cuba. White House sponsorship     of Common would seem to suggest that justice for Chesimard is not  high    on the Obama Administration’s priority list.</p>
<p>The <a href="http://www.washingtonpost.com/lifestyle/style/rapper-common-performs-at-white-house-amid-media-controversy/2011/05/11/AFQHgcuG_story.html">Post story</a> about the rapper said, “Critics were swift to pinpoint lyrics that     support such controversial figures as Assata Shakur, a Black Liberation     Army leader who was convicted in 1977 of killing a New Jersey state     trooper. On the other side, Common’s defenders asserted that such  songs    are civic-minded protests of corrupt law enforcement and unjust  legal    proceedings.”</p>
<p>Asked to explain this printed defense of <a href="http://www.youtube.com/watch?v=AaAMJZNi5f4">a tribute</a> to a cop-killer, Graham again declined to get involved. “We are     obviously not going to comment on any given news story in today’s     paper…”</p>
<p>The <a href="http://www.assatashakur.org/common.htm">lyrics</a> of Common’s “A Song For Assata” include:</p>
<p><em> </em></p>
<blockquote><p><em>In the Spirit of God.</em></p>
<p><em>In the Spirit of the Ancestors.</em></p>
<p><em>In the Spirit of the Black Panthers.</em></p>
<p><em>In the Spirit of Assata Shakur.</em></p>
<p><em>We make this movement towards freedom for all those who have been oppressed, and all those in the struggle.</em></p></blockquote>
<p>Graham   also clammed up and refused to say which members of the U.S.   Senate   and House he had personally lobbied in order to forestall federal     regulations affecting Kaplan, a Post subsidiary and for-profit     education business that had been contributing operating funds to the     money- and circulation-losing Post newspaper. Kaplan has been under     fire, even from the Obama Administration and liberal Democrats, for     allegedly conning students into taking out federal loans for a worthless     education or non-existent jobs. These federal payments had made   Kaplan   into a very profitable business.</p>
<p>Graham told the   shareholders, including representatives of financial   firms with huge   stakes in the company, that Kaplan had changed its  ways,  making sure   that its student clients don’t get saddled with too  much  debt for jobs   that do not exist.</p>
<p>Graham confirmed that he personally lobbied   members of Congress on   the matter and would do what he can to protect  a  company business in   this “unusual situation” of federal scrutiny.</p>
<p>Hundreds of thousands of dollars have been spent to defeat the proposed regulations.</p>
<p>Roll Call had <a href="http://www.rollcall.com/issues/56_114/-205206-1.html?pos=olobh">reported</a> on May 2 that, “…Kaplan University, which is owned by the Washington     Post Co., paid $110,00 to Akin Gump Strauss Hauer &amp; Feld in the     first quarter of this year to lobby on the issue and $90,000 to Ogilvy     Government Relations. Vic Fazio, a former Democratic Congressman from     California, is a leader on the Akin Gump team, while GOP operative   Wayne   Berman leads the Ogilvy effort. The Washington Post Co. has also     retained the Democratically connected firm of Elmendorf Ryan to make   its   case.”</p>
<p>The publication said that the Association of  Private  Sector Colleges   and Universities, which includes Kaplan and   represents for-profit   schools, “spent $247,000 in federal lobbying in   the first quarter of   this year, more than double what it spent for  the  same period of 2010.   As part of its lobbying effort the group has   retained the Podesta Group,   led by Tony Podesta, an influential   Democratic fundraiser.”</p>
<p>Graham did not dispute these figures when   they were read to him and   other shareholders at the annual meeting.   Instead, he launched into a   defense of his personal lobbying.</p>
<p>He   said, “You have cited all our lobbying expenditures [which] by law     are made public and have been and we will continue to do that. This is     an unusual situation for this company but an important business of    ours  is under challenge and we wish to be heard. And the way the    debates are  conducted in Washington, you are entirely right. I have    gone to Capitol  Hill and I will go anywhere to talk to people… I think    that the  regulations proposed by the Department of Education are    misguided and I  think they will have negative consequences not merely    on our company but  on students in the United States for years and  years   to come. I am  pleased to have the opportunity to make the case    personally to anyone  who will listen. I have done so as a    representative of shareholders of  our company and I will continue to do    so whenever given the chance. We  will of course file accurate  reports   documenting every dollar we spend  on lobbying as required by  law.”</p>
<p>In  regard to another controversial topic in journalism  these days—the    prospect of federal bailouts and subsidies—Graham said  that he    “couldn’t disagree more” with Post board member Lee C.  Bollinger and    Post at large vice president Leonard Downie Jr., who  have advocated    taxpayer payments to the news business.</p>
<p>Bollinger, president of Columbia University, wrote a Wall Street Journal column, “<a href="http://online.wsj.com/article/SB10001424052748704629804575324782605510168.html">Journalism Needs Government Help</a>,”     proposing a federally-supported “American World Service” that he     compared to Al-Jazeera, funded by the regime in Qatar in the Middle     East.</p>
<p>Bollinger was re-elected to the Post company board at the annual meeting.</p>
<p>Downie co-authored, “<a href="http://www.cjr.org/reconstruction/the_reconstruction_of_american.php">The Reconstruction of American Journalism</a>,” proposing a federal fund for reporting the news.</p>
<p>While rejecting these forms of federal interference and support, Graham claimed ignorance about <a href="http://dailycaller.com/2011/04/06/washington-post-and-cbs-receiving-money-from-obamacare-slush-fund/">a Daily Caller report</a> by Matthew Boyle that The Washington Post Company has received     Obamacare Early Retiree Reinsurance Program funding of $573,217 in     taxpayer subsidies. The money was said to be for health benefits for     early retirees from the company. Hal S. Jones, senior vice president for     finance and chief financial officer of The Washington Post Company,     said he was aware of the report but couldn’t supply any details.</p>
<p>Republican   Rep. Marsha Blackburn has said that the Post and CBS,   another  company  getting the federal subsidies, should have to disclose   that  “they are  subsidiaries of the Obama Administration.”</p>
<p>But it is  the Post  battle with the Obama Administration over federal    regulations on  Kaplan that provided most of the fireworks at the    meeting, as  representatives of stockholders repeatedly asked about the    future of  the company if profits get further squeezed. One financial    expert  wondered if the Post would try to sell Kaplan in order to  avoid    further losses.</p>
<p>In a bizarre twist involving a company  that  claims First Amendment   protections for itself, AIM was  originally  informed that the press would   be banned from the  stockholders meeting,  except for Post reporters  with  stock in the  company. Typically, Post  business reporters focus on  good  news from  such a meeting, ignoring  questions to the top brass that  go   unanswered or dismissed. However,  Matthew Boyle of The Daily Caller   was  subsequently allowed in to <a href="http://dailycaller.com/2011/05/12/washington-post-chairman-unaware-of-obama-common-controversy-until-shareholder-asks-despite-running-front-page-story-on-it/">cover the proceedings</a>, on the condition that no recording devices be used to produce videos or audios of what Graham actually said at the event.</p>