The Press: Wavering Compass

When pudgy, greying Theodore Olin Thackrey started his left-wing New York Compass 16 months ago, on the ashes of the departed Star, he seemed to be well fixed financially. He got $750,000 from 84-year-old Mrs. Emmons Elaine, daughter of Reaper King Cyrus McCormick and cousin of the Chicago Tribune’s Bertie McCormick, who had given away ten of her millions for various causes and charities. When & if the Compass ran through its nest egg, the chances were good that Aunt Anita would cheerfully ante up again. But last week Editor Thackrey made a sad announcement: The Compass has just about run out of cash and Aunt Anita was not available. Wrote Thackrey: “Since Mrs. Elaine’s serious illness last fall . . . it has not been possible to discuss further financing with her, and it does not seem likely that it will be possible to do so in the near future, if at all again.”

If the Compass is to be saved, said Thackrey, it is up to the readers. He asked them to buy $300,000 in Compass stock at $10 a share, as a starter. As part of his sales talk, he gave out the first financial and circulation figures on the Compass’ first-year operations. They gave a rare peek into the costs of starting metropolitan newspapers these days but they were hardly encouraging to would-be investors.

The tabloid had taken in $1,081,458, chiefly from circulation at 10¢ a copy, and had spent $1,595,570. Net loss for the first year: $514,112. Although the Compass has a tiny (25) editorial staff compared to other New York dailies, close to half the expenses were on the editorial side for reporters, wire services, cable tolls, etc. Advertising income, largely from amusement ads,, was only $187,807.

The paper was still losing “several thousand” dollars a week and current circulation of 50,000 was still some 15,000 below what Thackrey estimated the paper needed to break even. In the face of these dark figures, there was no rush to buy stock. Thackrey reported many inquiries, but weekend mail brought a slim $3,000 worth of orders.