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SPJ CINCINNATI
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ONPRESS - September 1998
Also...
Comings & Goings
National press reax to Enquirer-Chiquita fiasco
Selections from various articles around the country


THE APOLOGY

Starting on May 3, 1998, the Enquirer published a series of articles regarding Chiquita Brands International. Many of the conclusions in these articles were based upon the contents of voice mail messages of employees of Chiquita. At the time, the Enquirer believed that the series' accusations against Chiquita were based upon what was thought to be factual information obtained in an ethical and lawful manner. Specifically, the Enquirer asserted that the voice mails were provided by "a high ranking Chiquita executive with authority over the Chiquita voice mail system."
The Enquirer has now become convinced that the above representations, accusations and conclusions are untrue and created a false and misleading impression of Chiquita's business practices. We have withdrawn the articles from continued display on the Enquirer's Internet web site and renounce the series of articles.
Information provided to the Enquirer makes it clear that not only was there never a person at Chiquita with authority to provide privileged, confidential and proprietary information, but the facts now indicate that an Enquirer employee was involved in the theft of this information in violation of the law.
The employee involved, lead reporter Mike Gallagher, has retained counsel and will not comment on his news gathering techniques. Despite his assurances to his editors prior to publication that he obtained his information in an ethical and lawful manner, we can no longer trust his word and have taken disciplinary action against him for violations of Enquirer standards. The Enquirer will continue to investigate whether others involved in the Chiquita articles also engaged in similar misconduct.
We want to send a strong message that deception and unlawful conduct has no place in legitimate news reporting at the Enquirer.
We apologize to Chiquita and its employees for this unethical and unlawful conduct and for the untrue conclusions in the Chiquita series of articles.

The Cincinnati Enquirer
Harry M. Whipple, Publisher
Lawrence K. Beaupre, Editor

Council On Hemispheric Affairs
"Chiquita Wins in the End"
July 6, 1998

...Skeptics are watching whether the Enquirer management will continue its Chiquita expose "in an ethical and lawful manner," as it pledged (Gallagher told COHA that he had at least 100 more Chiquita stories "in the can"). Or will it, like so many other newspapers, now turn to homogenized articles bought from some wire or newspaper service.
The Enquirer initially surprised national affairs specialists when it decided against continuing to be a mediocre provincial newspaper, and took on one of America's most powerful multinationals, infamous throughout Latin America for its unprincipled behavior. By capitulating to Lindner and Chiquita, the paper's feckless management demonstrated a lack of spunk for refusing to stay in the game, and that an apology, along with $10 million, apparently was easier to come up with than an act of sustained journalistic integrity.
http://www.coha.org/
(Site has copies of Enquirer Chiquita stories from May 3-May 28, 1998)


Fred Brown, SPJ National president
July 2, 1998

...Journalism's critics understandably may think that the hotly competitive and steadily expanding news-media environment has driven journalists to abandon their most basic standards, their devotion to the truth.
...We deal in truth. If we become sloppy or lazy in verifying that truth, if we get to advocating that some greater "truth" is more important than the facts, we ought to be called to account for it.And, because we are the ones who hold everyone else accountable, we ought to guard journalism's integrity by holding ourselves accountable.
In journalism, our accustomed tool to attack wrongdoing is disclosure. There is, in this barrage of bad examples, some reason for optimism: The watchdog is watching its own performance, too.


Wall Street Journal
Holman W. Jenkins, Jr.
July 8, 1998

...Mr. Beaupre has pleaded ignorance of Mr. Gallagher's larceny. That may satisfy the law but not his readers.
In several instances, his reporter poses questions to on-the-record sources, then gives us voice-mail quotes of those same sources conferring back with company officials. Such cuteness should have set off alarm bells in the editor's office, but perhaps by then the paper was so hot for the idea of Chiquita's culpability that it overlooked its own.
Sent by Gannett to take over the paper in 1992, Mr. Beaupre vowed to step on "big toes," and Carl Lindner has been a target before. The aging tycoon is the city's richest man and biggest corporate donor, a devout Baptist and a curious bird. There is nothing wrong with aggressive local reporting, but the paper was over its head on this story. It seized upon every shopworn cliche as a flotation device. And by confusing evidence obtained by unusual and nefarious means with evidence of something unusual and nefarious, it set a trap for itself and promptly fell in...


N.Y. Times
Douglas Frantz
July 17, 1998

Overlooked in the furor that followed when The Cincinnati Enquirer last month renounced a stinging series accusing Chiquita Brands International Inc. of wrongdoing were the extraordinary allegations at the heart of the series -- the questionable business practices of a major corporation with broad influence in the United States and across Latin America.
(...)
The Securities and Exchange Commission is investigating allegations in the articles that the company covered up a bribery scheme by employees in Colombia. Chiquita could face penalties under the Foreign Corrupt Practices Act if it engaged in or failed to disclose bribery. A lawyer briefed on the commission's inquiries to the company said the investigation was not slowed by the disclosure that the voice mail was stolen.
"I'll just draw your attention to the fact that the information that was reported was extremely detailed," said the lawyer, who spoke on the condition that his name not be used. "This isn't going away."
(...)
The executives acknowledged that the voice mail and internal documents were authentic. However, they said the brief portions of the voice-mail messages in the articles were taken out of context and provided an unfair and inaccurate portrait of Chiquita.
"We all know that voice-mail messages are often thoughts in process or, in my vernacular, blah, blah, blah," Mr. Warshaw, whose own voice mail was invaded, said.
(...)
But the articles were based on more than voice-mail messages. Indeed, the article charging that the company used foreign trusts to evade restrictions on land ownership in Honduras, a major growing location, relied on Chiquita documents.
(...)
Company documents cited by The Enquirer described elaborate efforts by Chiquita to evade those restrictions in the early 1990's, when demand for bananas was jumping. The documents described efforts to use layers of trusts set up in the British Channel Islands and elsewhere to buy thousands of acres of farmland in the names of Honduran citizens with ties to Chiquita.
But the documents made clear that the company controlled the trusts, which were administered through local banks.
(...)
A memorandum from an outside lawyer for the company about efforts to acquire land near the border pointed out that Honduran law did not address the issue of a foreign company being the beneficial owner of a Honduran company. The law's silence on the issue indicated that the government would look no further than the local bank on the ownership issue, concluded the memorandum.
The article accused the company of using similar trusts to create an illusion of diverse ownership to make it harder for labor unions to organize on its farms elsewhere in Latin America.
(...)
The articles also claimed that Chiquita's use of pesticides endangers workers and residents near its farms, despite an agreement with an independent environmental group to follow strict standards. In addition to voice-mail messages and internal documents, those articles relied on many interviews in Central America and additional records, including a coroner's report on the death of one worker from exposure to toxic chemicals and reports of hundreds of people in Costa Rica who were exposed to toxic chemicals from the factory of a Chiquita subsidiary.
Mr. Warshaw disputed the claims, saying the company is a model in its attempts to reduce the use of pesticides and that government agencies in Central America have approved its practices.
Chiquita executives said they were particularly angered that the newspaper implied that toxic pesticides were sprayed on workers from airplanes. They said Chiquita does not engage in aerial spraying of pesticides, although it does so with herbicides, which are far less dangerous.


(Dayton) Business News
Doug Bolton, Publisher
July 6, 1998

...The reporter in this instance went to telephone booths and used a secret code he had obtained to listen to and record Chiquita voice mail. Chiquita officials got suspicious about the reporter's work on such a volatile story, had the reporter followed and watched him make the illegal recordings.
The lessons in this chapter of American journalism history are still being written. But we're sure they'll reach a similar conclusion: Publications that insist on honesty and integrity from their reporters and other associates will survive the natural skepticism toward media that stories like this evoke.

Comings & Goings

    Cincinnati Enquirer
  • Rosemary Goudreau, former deputy editor of the St. Louis Post-Dispatch and a 1986 IRE Gold Medal winner as a reporter for the Orlando Sentinel, was named managing editor at The Enquirer, replacing Jan Leach, who resigned in February to become editor of the Akron Beacon Journal. Goudreau started June 22.
  • Mark Braykovich, senior editor for data base reporting at The Enquirer, has resigned to become an assistant managing editor at the Akron Beacon-Journal.
  • Dom Cappa, deputy business editor at The Enquirer, has resigned to become managing editor

    Cincinnati SPJ board members Felix Winternitz (L) and Tim Bonfield whooping it up at the chapter's annual summer picnic at Coney Island on August 1.
    of Business First, a weekly business newspaper in Columbus.
  • Laura Goldberg, business reporter and former city hall reporter at The Enquirer, has resigned to accept a business reporting job at the Houston Chronicle.
  • Miriam Smith, formerly of the Springfield News-Sun, will join The Enquirer as a reporter in Warren County.
  • Kevin Aldridge, formerly of the Middletown Journal, will join The Enquirer as a reporter in Warren County.
  • Enquirer reporter Mark Skertic has resigned to accept a reporting position with the Chicago Sun-Times.
  • Enquirer reporter Katy Hillenmeyer has resigned to take a reporting position at the Asheville (N.C.) Citizen-Times.
  • Jim Matthews, formerly chief photographer at the Ashtabula Star-Beacon, has joined The Enquirer as night photo editor.
  • Beryl Love, former news/design editor at the Quad City Times, has joined The Enquirer as a copy editor.
  • Larry Johnson, former wire editor at the Everett Herald, has joined The Enquirer as a copy editor.
  • Enquirer copy editor Bob Clerc has retired, after 28 years at the newspaper.
  • Janice Morse, formerly of the Dayton Daily News, has joined The Enquirer as a suburban staff reporter.
  • Matt Hall, formerly of the Cincinnati Business Courier, has joined The Enquirer business staff.
  • Dianne Gebhardt-French has rejoined The Enquirer as an assistant local news editor.
  • Enquirer reporter Linda Fish-Oda has resigned to take a position with the Kings Local Schools.
  • Andy Telli has resigned as an assistant editor in local news to return to Nashville, effective Sept. 4.
  • Chase Clements has taken a position as an Assistant Systems Manager for the Kansas City Star. His last day will be September 10.
  • Fred Reeder has also left the Enquirer.
  • Dan Horn, the court reporter for The Cincinnati Post, and Michael Clark, another award-winning reporter with The Post, will join the Enquirer.
  • Kym Liebler, award-winning Warren County reporter, has accepted a top reporting position with The News Journal in Wilmington, Del., which is half an hour away from her family.
  • Rebecca Collins is leaving for Boston, Mass., and law school.

    Community Press Newspapers
  • Gene Clabes resigned as publisher and managing editor Steve Olding has been promoted to publisher.
  • Nick Claussen, reporter, has left the paper.
  • Reporters Steve Nuckols (from The Cincinnati Enquirer) and Amy Kopf (from northern Ohio) have joined the West group of The Community Press.
  • Also new are reporters Pete Holtermann and Lisa McPhail, and new Assistant News Editor Dave Phillips.
  • Former Community Press reporter Julie Kemble Borths has taken a reporting position at the Dayton Daily News.
  • Long-time reporter Fran Schwiermann is retiring.

    Cincinnati Post
  • Alison Schweitzer joined the Post this summer as a graphic artist. She comes to Cincinnati from Hartford, Conn.
  • Sean Keeler joined the Post's sports department from the Nashville Banner in Nashville, Tenn.
  • Post graphic artist Patrick Foose left in May to join the Dayton Daily News.

    CityBeat
  • Joe Sampson has joined CityBeat as a news reporter. He was previously with Channel 19 as a news producer.
  • Rick Pender has joined CityBeat in the newly created position of Assistant Editor/Arts & Entertainment. He has been the paper's freelance theater critic for four years.
  • Geoff Raker has been hired as a production artist. He's a recent graduate of Xavier University.

If you have Comings & Goings to report, e-mail 'em to Newsletter Editor Jeff Tindall at info@cincyspj.org. Faxes can be sent to 513.564.6391, voice mail to 513.768.8065, or snail-mail 'em to Jeff at The Cincinnati Enquirer, 312 Elm St., Cincinnati, OH 45202.



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