Monday, Oct. 17, 1938

Annenberg Annals

When Moses Louis Annenberg two years ago produced $15,000,000 in cash and bought himself the 107-year-old Republican Philadelphia Inquirer, the Main Line Old Guard hardly knew who he was. Most of Moe Annenberg's millions had come from publications rarely seen in Bryn Mawr: Daily Racing Form, New York Morning Telegraph (a sporting sheet), Radio Guide, Screen Guide, Official Detective Stories. His immensely profitable Nationwide News Service, Inc., which supplies sporting and racing news by telephone to all comers including bookies, was not as well known to men who haunted stock brokerage offices as to those in poolrooms. Even more disconcerting was the legendary reputation he and his older brother Max* acquired in Chicago as hustlers in the bloody circulation wars of over 30 years ago.

When Publisher Annenberg revealed his determination to spend millions invigorating the Inquirer and make it more blatantly Republican than J. David Stern's Record was Democratic, Philadelphia's Old Dealers took hope. Soon Publisher Annenberg sat at the council tables, if not the dinner tables, of Pennsylvania's Republican aristocracy. By last week, lean, greying, 60-year-old Moe Annenberg had become the leading abomination of Pennsylvania Democrats and the central figure in three political-publishing battles.

Prediction. For many months, the Inquirer's correct forecasts of Pennsylvania judicial decisions had aroused the envious indignation of its less astute competitors.

Last week, when the Pennsylvania Supreme Court handed down decisions on special session bills dealing with an investigation of the State administration, it was not news. Ten hours earlier, under an eight-column banner headline, the Inquirer had accurately announced the court's action.

The Scripps-Howard Pittsburgh Press hailed the tip as "a great ad for Mr. Annenberg's racing publications," suggested that the Inquirer "predict a daily double on the Supreme Court." In Harrisburg, Chief Justice John W. Kephart ordered a "thorough investigation." First witness was the Inquirer's able, popular city editor, Eli Zachary ("Dimmy") Dimitman. Loyally, he assumed full responsibility for the story, denied any assistance from members or officers of the court, insisted he had already been "reprimanded" by Publisher Annenberg. Second witness was Publisher Annenberg who repudiated any advance knowledge of the story, said he was as distressed as the court.

Justice Kephart denounced the article as "an indictable offense . . . contempt of court," ordered the record certified to District Attorney Charles F. Kelley of Philadelphia "for such criminal prosecution or such further action as the law requires."

Investigation. Two months ago, Democratic Governor George H. Earle asked the special session of the Pennsylvania Legislature to regulate the transmission of gambling information. Obediently, the Legislature decided to investigate the matter, appointed a special committee which began hearings last week.

Publisher Annenberg, scheduled as the principal witness and victim, had already moved the chief Pennsylvania distributing centres for his Nationwide News Service into surrounding States.

Libel. For harassed old Moe Annenberg, the week's woes reached a climax when Senator Joseph F. Guffey singled him out for unmeasured denunciation in a campaign speech over Station WFIL. When an advance summary of the speech reached the Inquirer's offices, Annenberg attorneys tried frantically to prevent its delivery. Next morning, swashbuckling Moe made news indeed when, unmindful of political and journalistic tradition, he sued for libel Senator Guffey, Station WFIL and its president, Samuel R. Rosenbaum; Mr. Stern and the Record, which published the full text of the speech.

* Now circulation director of the tabloid New York News.

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