#145 The Chief The Life of William Randolph Hearst

William Randolph Hearst, an influential figure in publishing and politics, epitomized the concept of media synergy by directing his magazine editors to purchase stories that could be adapted into screenplays for his film studio, serialized in his newspapers, and promoted across his extensive media network. Despite his significant political involvement, including two terms in Congress, Hearst's financial recklessness, particularly in his later years, almost led to the collapse of his empire. He was a dominant force in 20th-century media, comparable to industry giants like Carnegie and Rockefeller in their respective fields. However, his inability to manage his spending and debts resulted in a near loss of control over his assets, saved only by his longevity and the post-WWII economic boom. His story, captured in David Nassau's comprehensive biography "The Chief: The Life of William Randolph Hearst," serves as a cautionary tale of the perils of financial indiscipline, even for the most successful magnates.

• William Randolph Hearst expressed an early interest in publishing and politics during his college years.
• Hearst became a powerful publisher in San Francisco, New York, and eventually the entire nation.
• He served two terms in Congress and was a significant political force for half a century.
• Notable figures such as Adolf Hitler, Benito Mussolini, and Winston Churchill wrote for Hearst's papers, highlighting his influence.

"When Hearst was in college, he wrote his father that he intended to do something in publishing and politics, and he did, becoming San Francisco's, then New York's, and finally the nation's most powerful publisher."

This quote explains Hearst's ambition and eventual success in both the publishing industry and politics, becoming a major player on a national level.

• Hearst was an early adopter of the concept of synergy in business.
• He directed magazine editors to purchase stories that could be adapted into screenplays for his film studio.
• His newspapers and magazines serialized, reviewed, and publicized content from his other media outlets, including radio broadcasts and newsreels.
• Hearst's approach to media and entertainment was comparable to the dominance of figures like Carnegie in steel and Rockefeller in oil.

"Decades before synergy became a corporate cliche, Hearst put the concept into practice."

This quote emphasizes Hearst's innovative approach to cross-promotion and content sharing across his various media platforms, which was ahead of its time.

• At the peak of his power, Hearst's newspapers reached an estimated 20 million readers.
• His newspapers were influential in shaping public opinion in the United States.
• Hearst's personality was described as indifferent to public opinion, with a focus on personal interests and family.
• He was known for his generosity, hospitality, and the lavish lifestyle he led.

"A grave, simple child with no doubt a nasty temper, playing with the most costly toys, a vast income, always overspent, ceaseless building and collecting two magnificent establishments, two charming wives, complete indifference to public opinion, a 15 million daily circulation, extreme personal courtesy, and the appearance of a Quaker elder."

This quote, attributed to Winston Churchill, provides insight into Hearst's complex personality, including his indifference to public opinion and his extravagant lifestyle.

• George Hearst's financial and entrepreneurial accomplishments laid the foundation for his son's success.
• The wealth accumulated by George Hearst through mining allowed William Randolph Hearst to have the means to invest in his ventures.
• George Hearst's background in the mining industry and his eventual wealth and political career influenced his son's ambitions.

"There would be no William Randolph Hearst if it wasn't for the accomplishments of his father, George Hearst."

This quote acknowledges the critical role George Hearst played in enabling his son's future achievements in publishing and beyond.

• Hearst's childhood was characterized by instability and frequent changes in living situations and schools.
• He had a distant relationship with his father, George Hearst, and was deeply devoted to his mother, Phoebe.
• George Hearst's financial ups and downs, including a period of significant wealth loss, impacted the family's lifestyle.

"Hearst's childhood was defined by impermanence... The only fixed point in his life was his mother, to whom he was devoted."

This quote describes the lack of stability in Hearst's early life, which was marked by constant change and uncertainty, except for his strong bond with his mother.

• At Harvard, Hearst took over the business management of the Harvard Lampoon, increasing its circulation and advertising revenue significantly.
• He demonstrated an early talent for publishing and marketing, foreshadowing his future success in the industry.
• Hearst's personality traits, such as his indifference to public opinion and preference for doing as he pleased, were already evident during his college years.

"He solicited local merchants to buy ads, wrote to advertisers in other Ivy League publications, and enlisted his mother to sell subscriptions to members of the San Francisco Harvard Club."

This quote illustrates Hearst's proactive and innovative approach to increasing revenue and circulation for the Harvard Lampoon, showcasing his business acumen.

• Hearst's strategies and business practices in publishing set a precedent for media conglomerates.
• His personal life and character traits, including his indifference to public opinion and his commitment to his family, were significant factors in his approach to business.
• The book "The Chief: The Life of William Randolph Hearst" by David Nassaw offers an in-depth look at Hearst's life and accomplishments.

"At the end of my research, the Hearst I discovered was infinitely more fascinating than the one I had expected to find."

This quote from the author David Nassaw conveys the depth and complexity of William Randolph Hearst's character and life, which was revealed through extensive research.

• Hearst expressed a strong desire to improve the San Francisco Examiner, aiming to make it original and attract attention.
• He planned to implement changes all at once for immediate impact.
• Hearst intended to recruit active, intelligent, and energetic young men, similar to the New York World's approach.
• He sought to distinguish the Examiner from other papers by adopting and enhancing Pulitzer's techniques.

"It would be well to make the paper, as far as possible, original, to clip only some such leading journal as the New York world, which is undoubtedly the best paper of that class to which the examiner belongs."

This quote illustrates Hearst's strategy to model the Examiner after successful papers like the New York World, aiming for rapid and notable improvements.

• Pulitzer was resourceful due to financial constraints, while Hearst never experienced such necessity.
• Hearst aimed to avoid the stereotype of a rich man's son by achieving his own success.
• Unlike Pulitzer, Hearst had the financial backing of his wealthy family.

"Pulitzer was forced. He had no money. He was forced to be resourceful."

The quote contrasts Pulitzer's financial struggles with Hearst's affluent background, highlighting the differences in their approaches to success.

• William Randolph Hearst was determined to escape the shadow of his father, George Hearst, a US senator and influential figure.
• Hearst demonstrated a newfound focus and commitment upon taking over the Examiner.
• He worked to transform the Examiner into a significant publication, spending most of his time at the paper and commuting by boat.

"George Hearst took his oath of office as United States senator in March, 1887. That same day in San Francisco, the name Hearst proprietor appeared for the first time on the masthead of the San Francisco Examiner."

The quote signifies the parallel milestones of George Hearst becoming a senator and William Randolph Hearst assuming control of the Examiner, marking a pivotal moment in Hearst's career.

• Hearst used his father's influence to gain advantages for the Examiner.
• He syndicated content from the New York Herald to enhance the Examiner's offerings.
• Hearst focused on increasing advertising space and revenue, emphasizing urgency and speed.

"Hearst intended to use all the leverage he had as the son of a rich and powerful senator to boost the examiner's circulation and profits."

This quote reflects Hearst's willingness to leverage his familial connections to advance his business interests, showcasing his strategic approach to expanding the Examiner's influence.

• Hearst adopted Pulitzer's layout techniques, reducing text and increasing headlines and illustrations.
• He believed that illustrations were key to attracting readers and stimulating imagination.
• Hearst also expanded the Examiner's reach by delivering papers to surrounding areas.

"Illustrations do not simply embellish a page. They attract the eye and stimulate the imagination."

Hearst's quote emphasizes the importance of visual elements in newspapers, a strategy he employed to make the Examiner more appealing to readers.

• Hearst increased the focus on crime stories in the Examiner, dedicating a significant portion of content to this topic.
• He exposed corruption and other crimes, which resonated with the public and increased circulation.
• Critics later accused Hearst of using money to influence the newspaper industry rather than contributing innovative ideas.

"If we hesitate a moment or fall back a step, we are lost, and we can never hope to make up anything out of the examiner while it remains in our hands."

This quote by Hearst underscores his philosophy of relentless progress and the importance of maintaining momentum in the competitive newspaper industry.

• Hearst struggled with financial independence, relying on his father's wealth to fund the Examiner.
• His father's death and the subsequent control of the estate by his mother affected his financial and personal autonomy.
• Hearst faced criticism for his spending and had to adhere to his mother's conditions to receive financial support.

"Will's been spending an enormous amount of money, more than me and you together."

The quote from Hearst's mother highlights the concern over Hearst's extravagant spending and foreshadows the financial challenges he would face in maintaining the Examiner.

• Hearst aspired to replicate his San Francisco success in New York by purchasing a newspaper and applying Pulitzer's strategies.
• He remained convinced of his eventual success and expected to achieve it extravagantly, as he had done previously.

"Hearst was not only convinced that he would succeed, but expected to do so extravagantly, as he had in San Francisco."

This quote conveys Hearst's confidence and ambition as he planned to expand his newspaper empire to New York, indicating his determination to succeed on a larger stage.

• William Randolph Hearst's strategy was to offer the Morning Journal at a lower price than Joseph Pulitzer's World while providing more content.
• Hearst provided job security to attract experienced newspaper staff, which was uncommon in the industry at the time.
• Hearst's temperament was calm and beloved, contrasting Pulitzer's fiery temper.

"He decided to keep the price of the Morning Journal at a penny, but give readers as much news, entertainment, sports and spectacle as Joseph Pulitzer's world, which provided that for twice the price." "To persuade experienced newspaper man to join a venture everyone was convinced would fail, Hearst had to offer more than just big salaries. He had to guarantee security in the form of large multi-year contracts."

The quotes highlight Hearst's competitive business approach and innovative human resources strategy. His methods were designed to undercut competitors and create a loyal, stable workforce, which was revolutionary at the time.

• Hearst was known for his calm demeanor and generous recognition of good work among his employees.
• He was disinterested in upper-class society norms and preferred a more bohemian lifestyle.
• Hearst's independence from societal expectations was reflected in his personal and professional life.

"William remained calm, polite, and well-mannered in the extreme... A good piece of work always brought a word of congratulations over the phone and not infrequently, more substantial recognition." "He didn't care what people thought of him, and he despised society... He lived downtown while fashionable New York moved northward."

These quotes illustrate Hearst's character traits, such as his calmness and lack of concern for societal expectations, which influenced his management style and personal life choices.

• Hearst and Roosevelt were both from wealthy families and attended the same school, but Hearst felt overshadowed by Roosevelt's accomplishments.
• Hearst's newspapers played a role in the Spanish-American War, showcasing his dedication to journalism.
• Hearst experienced periods of intense doubt and depression, often comparing himself to others, which affected his mood and self-perception.

"Hearst felt that Teddy was his competition... And he felt that Teddy was accomplishing a lot more than he did." "I guess I'm a failure, he wrote to his mother about this time."

The rivalry with Roosevelt and Hearst's self-doubt are significant in understanding his motivations and emotional struggles, despite his success.

• Hearst's newspapers were successful but not profitable due to his refusal to watch costs.
• Despite advice, Hearst continued to spend extravagantly, comparing himself to an alcoholic with spending.
• His mother's death removed the last restraint on his spending habits.

"His newspapers were now the largest selling dailies in the city, but they were also losing more money than ever." "When he saw an item he wanted, he bought it, regardless of whether he had the money in the bank to pay for it."

Hearst's poor financial management and excessive spending habits are critical points, showing how his personal behavior impacted his business operations.

• Hearst maintained a distance from the public and was wary of the press due to his understanding of its workings.
• He had a significant but ultimately unsuccessful political career, which distracted him from his business.
• Financial pressures and the need to refinance loans were constant in Hearst's life.

"Hearst kept his distance from the public. He was personally shy and professionally wary." "I've had an awful night's sleep here... I am pretty sick and miserable and blue."

These quotes provide insight into Hearst's private nature and the stress he experienced from his political ambitions and financial difficulties.

• Hearst's empire building led to the creation of a lasting media empire but also to significant financial strain.
• His inability to control spending resulted in the loss of his empire to creditors at the age of 70.
• The Hearst Castle is an example of his extravagant spending and is now a state-owned property.

"The empire, the media empire he built, which still exists to this day, by the way, it's still a privately held company by his heirs." "Imagine being 70 years old and not having any money anymore after being one of the quote unquote wealthiest people in the world."

These quotes summarize the rise and fall of Hearst's empire, emphasizing the long-term impact of his financial decisions and the personal consequences he faced.

• Hearst's properties were valuable and became profitable over time.
• Despite legal rights, creditors did not seize Hearst's assets, allowing him to regain control.
• Hearst spent extravagantly, mirroring financial advisor warnings about dire company conditions.
• His spending habits persisted even when constructing Hearst Castle and during the Great Depression.
• Hearst's optimism led him to underestimate the Depression's impact and to conflict with FDR.
• His refusal to cut costs and continued spending led to significant financial strain.
• Hearst's debts included $9 million to Canadian paper mills and $78 million to banks, equating to about a billion dollars in 2000 dollars.
• He maintained a belief that debt was beneficial, contrasting with other historical figures studied in the podcast.
• Hearst's failure to plan for the future led to a financial crisis, with creditors eventually taking control.

"The financial situation of your various companies is in an alarmingly serious condition."

This quote highlights the dire financial state of Hearst's companies, emphasized by a financial advisor's warning.

"The chief went blithely on and spending money like water..."

This quote illustrates Hearst's reckless spending habits despite being aware of his precarious financial situation.

"Hearst, approaching 70, had neither the time nor the energy nor the capital to invest in such ambitious ventures."

This quote underscores Hearst's over-leveraging and lack of resources to support his ventures as he neared 70 years old.

"WR was an incorrigible optimist, and he was the last man to believe in the depression."

This quote reveals Hearst's unwavering optimism and his refusal to acknowledge the severity of the Great Depression.

"The chief and his corporation owed 9 million to Canadian paper mills... They also owed $78 million to banks."

This quote details the staggering amount of debt Hearst's corporation had accrued, highlighting the financial crisis he faced.

• The Great Depression and Hearst's anti-communist, anti-Roosevelt stance led to a decline in his businesses.
• Hearst's failure to adapt to changing economic conditions and reduce spending exacerbated his financial problems.
• His belief in debt as a tool for growth differed from other historical business figures.
• Hearst's refusal to listen to financial advice and hope for an economic rebound was ill-advised.

"The result of the chief's anti-communist, anti-Roosevelt crusade had been a loss of circulation and advertising..."

This quote explains the negative impact of Hearst's political stances on his businesses during the Roosevelt era.

"Hearst had been on the brink of fiscal catastrophe for decades."

This quote indicates that Hearst's financial issues were long-standing and not solely a result of the Depression.

"The chief had learned early and well that there was no shame in being in debt."

This quote captures Hearst's personal belief that debt was not a negative but a means to achieve his ambitions.

• Hearst's financial missteps caught up with him, leading to intervention by Joseph P. Kennedy and others.
• A detailed review of Hearst's finances revealed debts far greater than anticipated.
• Hearst's refusal to acknowledge the risks of his financial approach led to a loss of control over his empire.
• Despite the challenges, Hearst's company survived and he regained control before his death.
• Hearst's final years were marked by reduced influence and personal setbacks, including health issues.

"By early 1945, after almost eight years in exile, William Randolph Hearst, at 82 years old, was again in control of his finances."

This quote signifies Hearst's eventual return to financial control after a period of creditor oversight.

"At age 75, the bad boy of US journalism is now just a hired editorial writer."

This quote reflects the diminished role and influence Hearst faced as a result of his financial mismanagement.

"As Hearst and Marion were driving down the winding five mile roadway from San Simeon's hilltop... Marion noticed that tears were streaming down the chief's face."

This poignant quote captures a personal moment of realization and sadness for Hearst as he leaves his beloved Hearst Castle, likely for the last time.