Watchman Willie Martin Archive

Let me tell you a story as related by Eustace Mullins: During the 1970s, promptly each morning at 7:45 a.m., a diminutive Jew emerged from his palatial fourteen room duplex apartment at 730 Park Ave in Manhattan. Although he carried a briefcase, he was not gong to his office, because his office was in his briefcase. However, he was on his way to work, and employment consisting of supervising the most influential newspaper empire in the world. He was Samuel I. Newhouse, and he was said to control the largest private fortune in the United States. How did the son of Russian immigrants, brought up in poverty, amass a family fortune of seven and a half billion dollars, according to Fortune Magazine? It was done through racial hatred, that is, by ruthless exploitation of his wage slaves, and by continuous finical manipulations which often brought him into court on charges of conspiracy and fraud.

When Sammy Newhouse died in 1979 at the age of 84, the internal Revenue Service determined that his estate was worth $968,000,000, with a tax due of $658,000,000. This was indeed a modest assessment on an estate which Fortune Magazine estimated at seven and a half billion dollars! However, the IRS also found serious discrepancies in the financial reporting Newhouse’s estate, and therefore assessed fraud penalties of approximately fifty per cent, amounting to $305,000,000. Thus the IRS stood to collect almost a billion dollars on an estate which, by conservative estimates were worth almost eight times that. Did the Newhouse family accept this relatively light assessment as a bargain, and pay it? Certainly not. (They were Jews and they knew they could get a better deal out of our Jewish controlled government)

Their lawyers claimed the estate was only worth $91,000,000, and offered to pay $49,900,000 as a complete settlement of all tax charges against the estate. A reasonable outcome would be that the Newhouse family would gladly settle for a compromise figure, perhaps halfway between the $49 million which they offered, and the IRS claim of almost a billion dollars in taxes, that is, to negotiate a payment of half a billion in taxes, and walk away with the remaining seven billion dollar estate. You or I would probably be willing to accept such a settlement. However, a year before the event, I had quoted on page 462 of “The Rape of Justice” a Business Week summation that the Newhouses would probably pay about $50 million, with their attorneys’ fees of about two million dollars. I quoted another observer, who said, “Don’t shed any tears for the Newhouse boys. They will finally plant some trees in Israel, and the IRS will accept their lowest figure for a settlement.” A few months after my book appeared, the IRS announced they would accept the lowest figure, about $43 million, as total payment. In 1986, the IRS had quietly dropped all of the fraud penalties, which reduce the billion by about a third; now they backed off in total surrender, and accepted a $43 million estate tax as the total assessment on an eight billion dollar family estate.

Sammy Newhouse’s will left nothing to any charitable causes; his concern for the needy had already been taken care of when the Samuel Newhouse Foundation had been set up in 1960. According to foundation reporting guides, this family controlled foundation of one hundred million dollars gives about half a million a year to “charitable” causes. These “causes” are, firsts, the United Jewish Appeal, second, the American Civil Liberties Union, and third, the National Urban League. The officers of the Newhouse Foundation are his wife, Mitzi Epstein Newhouse; his brothers, Theodore and Norman Newhouse, and his two sons, Donald and Samuel Newhouse Jr. Tax authorities usually come down hard on any foundation which is officered entirely by the immediate family, but the Newhouse Foundation has remained immune. Nevertheless, the foundation did add two Newhouse employees, Richard Diamond and Arthur Silverstein, as “outside directors.” It is noted that no gentiles need apply. From 1960 to 1987, the Newhouse Foundation distributed a total of $45 million to its chosen causes such as the United Jewish Appeal, the major expenditure bing the building of the Mitzi Newhouse theater at Lincoln Center, some $25 million. Its other disbursements amounted to less than a million dollars a year from a hundred million dollar foundation, which might be reasonably expected to earn 10%, or ten million dollars a year in income and interest from its endowment. No explanation, has ever been offered for this strange financial pattern. No doubt the administrative expenses of the family officers are extremely high.

We have mentioned that “racial hatred” was the essential ingredient in the amassing of the Newhouse fortune. The facts bear out this claim. Sammy Newhouse was the son of Russian immigrants, Meyer and Rose, who settled in the New York ghetto. Meyer rarely worked; like Fagin, he sent his eight children out into the streets to grab whatever income they could. Sammy was named after a wealthy uncle, Samuel Newhouse, who describes himself in Who’s who as a “capitalist.” Samuel went West, and used his legal skills to gain control of many mining and railroad properties. From his office in Salt Lake City, he controlled most of the railroad mileage in Colorado and Utah. He was a director of such high income properties as Newhouse Mining and Smelters, and the Nipssing Silver Mines. However, he never offered to help his namesake, and at the age of thirteen, Sammy Newhouse was on his own. He was the runt of the family, and when he applied for his first job, clerking in a hardware store, he was sent packing with the comment, “Hell, you can’t even see over the counter.”

It was at this point that the racial connection altered the picture. Sammy was hired as an office boy by the behind the scenes political boss of Jersey City, Judge Hyman Lazarus. As Judge of the Court of Common Pleas of Hudson County, Lazarus effectively dominat4ed the political parties of northern New Jersey. He was head of the powerful Anti-Defamation League of B’nai B’rith, the secretive and conspiratorial Jewish terrorist group. Lazarus used this power to become the eminence grace of the legendary Boss Frank Hague of Jersey City. For decades, historians have routinely denounced the political dictatorship exercised by Boss Hague as an example of Catholic political power. It is true that Hague’s numerical voting strength came from the Irish and German Catholic workers who lived in Jersey City, but the voters were summoned to the polls by the gangster methods of the ADL, from behind the scenes. Boss Hague learned early in his 0olitical career of the true identity of the deity in the sky from whom all votes do flow; it was a Jewish Jehovah, whose favors could only be requested by the Anti-Defamation League.

The largest newspaper empire in the United States originated in the routine exercise of Judge Lazarus’ financial manipulations. The Bayonne N.J. Times had become involved in a lawsuit. Lazarus accepted a 51% controlling interest in the Bayonne Times as payment for his fees. Without investing a cent, he had become a publisher. He fired the editor because he did not wish to pay his salary, and searched in vain for a replacement who would work for what Lazarus was offering. In desperation, he turned to his office boy, Sammy Newhouse, who was just 16y, and paid two dollars a week. Sammy agreed to run the Bayonne Times in return for a 25% share in the profits, and the Newhouse empire was born. Like his mentor, Sammy engaged in ruthless economies, operating the newspaper with such efficiency that in 1916, at the age of 21, his personal income from the Times was $30,000. The average working man in the United States at that time earned $500 a year.

When Judge Lazarus died in 1924, his protege was already a wealthy man. The death of Lazarus was the occasion for a massive outpouring of grief, as his Jewish subjects mourned the passing of a true “Prince in Israel.” Mobs of Jews rushed through the streets of Jersey City, rending their garments as they wailed in sorrow. A crowd of five thousand gathered at Temple Emanu-El; the rabbi had to deliver two eulogies, one to the mourners in the synagogue, and the second  to the crowd in the street. Governor Silzer sent his regrets that he could  not attend; the mourners included Boss Hague himself, U.S. Senator Edward Edwards, and Supreme Court Justice Minturn. The service moved on to the Talmud Torah Temple, with burial in the Baron de Hirsch Cemetery.

Sammy Newhouse lost little time mourning the man who had given him his start in life. He embarked on a continuous campaign of plowing his profits, which were considerable, into purchasing more newspapers. The New Yorker Magazine’s venerable expert on American journalism, A.J. Libbling, wrote an article about Newhouse, in which he sneered that Newhouse was a “journalistic chiffonier,” in other words, a ragpicker, a common term of odium used by Jews to denigrate each other. Libbling referred to Sammy’s practice of picking up newspapers on the cheap, which he soon turned into profitable operations. The Christian Science Monitor, (March 3, 1960) described the Newhouse technique as one of “stringent reduction of costs, and vigorous campaigns to stimulate advertising revenues and circulation.” “Stringent reduction of costs’ meant the ruthless paring of staff, large reductions in salaries, and total dedication to reducing all other expenses.

While editing the Bayonne Times, Sammy Newhouse had also gone to night school, obtaining a law degree. Ain the first case which he argued in court, he thought he had an excellent chance of winning. He was stunned when the jury returned a verdict in favor of his opponent. Sammy went up to the opposing attorney, a fellow Jew, and asked him in confidence what had happened to his case. “You really are a dummy,” his co-religionist sneered, “Didn’t you know the jury was fixed?” Sammy hung up his shingle and never argued another case. For more than fifty years, he relied upon a Jewish law firm, Sabin, Bermatt and Blau, whom he gave offices in his building, the Conde Nast Building. Their practices consists of looking after the Newhouse interests. They frequently found themselves in court, defending Newhouse against charges of conspiracy, fraud, unfair labor practices, and other legal problems. Perhaps because of their brilliant defense tactics, but more likely because of the pronounced pro-Zionist bias of the American bench, which I have described in detail in “The Rape of Justice,” the firm invariably scored another win for Newhouse.

With the power of the anti-Defamation League behind him, Sammy Newhouse rapidly expanded his operations, purchasing many newspapers in northern New Jersey and Long Island. He avoided the high-priced and intensely competitive New York City arena, preferring to corner newspapers which had less competition. His early ac2uisitions were the Jersey Journal and the Newark Star-Ledger. These two newspapers have dominated New Jersey’s political and economic life ever since. The pernicious influence of the Newhouse presence soon made itself felt, as gentile businessmen in Jersey City and Newark were slowly driven out of business and ruined. They were replaced by Jewish merchants. Unable to earn a living in this poisoned economic atmosphere, the hard-working German and Irish population of the Newhouse-controlled cities began to flee to the suburbs.

In effect, one can say that Sammy Newhouse effected a total racial alternation in the northern New Jersey area. In Newark and Jersey City, the white inhabitants were replaced by immigrants from southern Europe, and later, by black migrants form the Southern states. The result is that the post-Newhouse cities of Newark and Jersey City are black slums, in which the residents have turned the well-built homes of the former white workers into jungle kraals, in which life is lived on the barest subsistence level. These cities have the highest crime rates, the greatest number of school dropouts, the highest rates of drug addiction, and other direct consequences of the Newhouse domination of the area. The result is that the Newhouse papers continually demand more and more expenditures, to redress the problems which they (the Jews) have caused.

The latest city to feel the dire results of Newhouse control is New Orleans. For years, Sammy’s brother, Norman Newhouse, has controlled the Times-Picayune, which Newhouse bought for a record $42 million in 1962. This was the highest amount ever paid for a daily newspaper, a record which stood until 1967, when Newhouse broke his own record by paying $50 million for the Cleveland, Ohio, Plain Dealer. The political and economic domination of the Times Picayune, the only influential newspaper in the state, has resulted in New Orleans, and indeed, the entire state, becoming an economic disaster area. Insiders here believe that Louisiana will never again rise to prosperity until the Newhouse dictatorship is thrown out.

From the moment he took over the Bayonne Times, Sammy Newhouse never looked back. He forged ruthlessly ahead, always buying newspapers for cash. Thus he had no interest payments or debits on his holdings. This was unheard of in the newspaper business, as acquisitions were always made with borrowed money. In 1939, he bought the Syracuse, N.Y., Herald Journal, for $1,900,000 case. Five years later, he bought its rival newspaper and closed it down. Newhouse never liked competition. He did the same in Harrisburg, Pa. Not only did this give him a journalistic monopoly; it also gave him tremendous economic and political power, because o opposing voice could be raised in that city to any program which he wished to put through, nor could any political candidate hope to win an election without making a deal with the Newhouse interests. In 1950, Newhouse bought the venerable Portland Oregonian for $5,500,000. He bought the St. Louis Globe-Democrat for $6 million, and in 1955 he converted the state of Alabama to a Newhouse property by purchasing the state’s leading newspaper, the Birmingham News, and the Huntsville, Ala. Times for a then record of $18.7 million. He also expanded into magazine publishing and radio and television networks. In 1959 he bought the Conde Nast magazines for five million in cash; then he added the Street and Smith chain of magazines for four million. He also had the ninth largest cable TV network in the United States.

A.J. Liebling referred to the absolute control exercised by the Newhouse interests in state after state, when he chortled, “If you don’t like what’s being printed in your local newspaper, you’re free to start publishing your own.” by that time, almost any small town newspaper would be valued in the millions of dollars. Lieblign is probably turning over in his grave at the fate of his beloved New Yorker Magazine. In 1984, Sammy Newhouse Jr., bought a 25% interest in the New Yorker from the Fleishmann family, and a few months later bought the rest. One of the first moves shocked the New York liberal community when he dumped its venerable editor, William Shawn. A classic liberal, Shawn had insisted that his son marry a black girl. When a fellow Jewish intellectual on the New Yorker incredulously asked him, “Do you mean you want to have black grandchildren?” Shawn responded, “Of course not. I want brown grandchildren.” since Shawn’s departure, the New Yorker has not veered from its relentless liberal bias, but it has benefitted from a multi-million dollar television advertising campaign to boost circulation. Newhouse was willing to spend heavily on the New Yorker because his other interests show mushrooming profits, and he needed to plow millions back into the publications.

Sammy Newhouse Jr., also bought the influential book publishing firm, Random House, which had been built up by Bennett Cerf. He sent a shudder of terror throughout the entire writing world when he abruptly replaced the head of Random House, citing a need to observe “the bottom line.” In short, he pulled the plug on one of the most outrageous Jewish operations in history, in which Jewish writers, represented by Jewish agents, were routinely being awarded “advances” of from one to five million dollars on books which could never hope to recoup such sums in sales. Because of the absolute domination of the American book publishing world by such Zionists as Norm Podhoretz, the notorious “neo-conservative” apologist for Israel, who edited Commentary as the mouthpiece of the American Jewish Committee, the Zionist adherents chose what the American public would read, and how much they should pay for it.

One result of the Jewish monopoly has been a sudden decision to move publishing operations out of New York, another has been the public announcement of such firms as Simon and schuster, the leading Zionist house, that it had taken an unexpected $125 million “write-down” in its profits. Such is the power of Sammy Newhouse that he had but to make one obvious move to save Random House from imminent collapse, and the network of Jewish writers and agents saw its carefully contrived racket vanish into thin air.

He also acquired successful magazines such as Gentleman’s Quarterly, House and Garden, and other properties. This rapid expansion was accomplished by spending funds which should have been held in escrow to pay the outstanding $900 million bill from the IRS. On suspects that he knew he would never have to pay it, as he spent heavily during the very years that the legal contest over the estate was being pursued by the IRS. By retreating from its demands for almost a billion dollars, and accepting a mere $43 million as payment in full, the IRS willingly surrendered claim to more than $900 million, a sum greater than that which the IRS claimed was owed by all of the American citizens who are now serving terms of many years in prison for “delinquent payments’ of income taxes!

The annual growth of the Newhouse empire did not go unnoticed by other newspaper publishers. Despite his great wealth, Newhouse found it difficult to be accepted by “Our Crowd,” the old money of such German Jewish families as the Warburgs, the Schiffs, and the Sutzbergers. They regarded his career first with disdain, and then with horror, realizing that there could be a public backlash because of his ruthless business tactics. Sulzberger remarked, “If we get one more Jew like Sammy Newhouse in this country, I anticipate there will be a pogrom.” He referred to the traditional uprising of the exploited peasants who would be driven berserk by the depredations of Jews like Newhouse.

Hollywood screen writer Budd Schulberg wrote a thinly disguised account of Sammy Newhouse’s career, “What Makes Sammy Run?<“ which became a best seller. He portrayed Sammy as a movie producer instead of a newspaper publisher but he cheerfully admitted that there had never been a Hollywood prototype of his Sammy. However, eh never admitted publicly that he had modeled his infamous character, the abrasive Sammy, on Sammy Newhouse himself. Time magazine usually referred to him as “stubby,” or “sawed-off.” One sensed that the editors were itching to describe him as a “runty little Jew,” but they never dared to use such appropriate language. Instead, they delighted in chronicling his ever-present insomnia, and his tendency to rapidly gain weight.

During the building of Sammy’s empire, his constant lieutenant was Philip Hochstein, who also doubled as editor of the Newark Star Ledger. Sammy loaded his newspaper chain with relatives, at one point, he had sixty-four relatives on his payrolls. While dealing strictly in cash, and refusing to borrow from the banks, he maintained great secrecy in all of his activities. He routinely refused to fill out the annual forms sent by Who’s Who in America, which had to contend itself with a brief listing of his interest. His sons have followed the same pattern. For many years, the Newhouse holdings were held by a mere ten shares. This has now been expanded to 990 shares of nonvoting common stock in his holding company, Advance Publications, Inc., and 3500 shares of security stock distributed as “gifts” to his wife and sons in 1935. In addition to Advance Publications, the Newhouse interests are held under Newhouse Broadcasting Corporation, and the Conde Nast Publishing Corporation. They also own 49% of a newsprint production firm in Columbia, S.S., with the giant Bowater Corp., which produces 40% of the Newhouse printing needs.

In its issue of January 26, 1976, Business Week profiled Newhouse as “America’s Most Profitable Publisher.” His sons and other relatives have never departed from the original Newhouse formula of “stringent reduction of costs.” On August 17, 1987, Fortune magazine headlined, “The Biggest Private Fortune,” detailing the Newhouse holdings as valued at $7.5 billion. At this time, Newhouse’s lawyers were still battling an IRS estimate of the Newhouse empire as a mere $900 million. His two sons still hold the original ten voting shares of the Newhouse holdings, and thus exercise total control of the 31 newspapers, the radio and television stations, and the magazines.

Throughout the 1930s, Sammy Newhouse was continually battling strikers at his newspapers. He was the nemesis of the Newspaper Guild, because of his reputation of paying below scale wages and his reroute battle against unionization of his workers. The New York Times index carries frequent references to strikes and violence at Newhouse papers. The New Jersey papers were constantly besieged by the angry employees. At one point, Newhouse put the Newhouse paper into trusteeship and fired most of the editorial staff. The employees went to court and obtained injunctions for back pay, but Newhouse moved the argument into chancery court and won a decision that, became the papers had been in trusteeship. Newhouse was not liable for any payments. Newspaper Guild leader Holly Broun led the battle against the Newhouse empire; Sammy Newhouse countered by having his faithful stooge, Mayor Frank Hague, denounce the Newspaper Guild as “a Co0mmunist Party Organization.” (New York Times, January 7, 1938) In 1937, Newhouse had defeated the Newspaper Guild in a bid to represent the employees of the Jersey Journal.

Not only did Sammy Newhouse implement his “stringent reduction in costs” formula at each newspaper he acquired, he also entered into nefarious conspiratorial efforts to stifle or neutralize any competition in his market area. Business Week, headlined in its issue of July 1, 1985, “Did Si Newhouse Conspire to Kill the Cleveland Press?” He was summoned before a grand jury which was investigating the demise of his competitor, the Cleveland Press, after he had paid a record $50 million in 1967 for the Cleveland Plain Dealer. He was accused of having offered $22.5 million for “assets” of the Press which were largely nonexistent, as part of his campaign to stifle competition. The judge said the charges against Newhouse, that he had conspired to create monopoly, were valid, incredibly, she then dismissed the case! Fro more than a decade, the Department of Justice in Washington had been besieged with demands for the prosecution of Sammy Newhouse on numerous antitrust charges. However, its investigations were denounced as half-hearted; one Department of Justice lawyer who made some progress on the case was suddenly fired, he was publicly smeared as being vaguely “anti-Semitic” and never again found employment in the legal field. The Department of Justice then claimed it could not proceed against Newhouse on any charge, because of “insufficient existence.” It was not know at that time that the Department had been taken over by a small band of fanatical Zionist conspirators known as “Nesher,” the Hebrew rod for eagle, and that the Nesher group was determined to quash all actions against the Newhouse empire because of his Anti-Defamation League connections.

In St. Louis, Newhouse was sued jointly by both the state and the city, because of a del he had planned with the Pulitzer newspaper, the Post Dispatch, for half the profits of the Pulitzer paper. After the deal was exposed, Newhouse avoided prosecution by selling the Globe-Democrat. This was one of the few deals which came to light, there must have been many others which never saw the light of day. Throughout his career, Sammy Newhouse was consistent; there was nothing he would not do to maximize the profits, stifle competition, and create harsh working conditions for his employees. Although there have been many reprehensible personal stories in the history of American journalism, none can match the stench of Sammy Newhouse’s reputation.

Reference Materials