“I have puzzled over this for years and don't have a firm set of principles and practices,” Drysdale said. “As a result, I have been losing both sleep and money. The basic question: When is it a business story, and when is it an ad? The question pertains especially to new businesses and to major modifications in existing businesses.”

Drysdale explained how an animal hospital opened in Chelsea, Vt., a town of about 1,000 with a small business district. His Chelsea correspondent hustled over there and did a story about the new people in town and their new business and took a photograph. The Herald ran the package, but when the animal hospital opened weeks later, placed ads in two competing daily papers but none in Drysdale’s.

“They told our ad rep that we had already covered them very nicely, thank you very much,” he said. “This sort of thing had happened before, but never in quite such a blatant way, and we struggled to find some guidelines, and not to hand out free publicity quite so readily.

“Should we write a short article, but not a long one? Should we write an article but refuse a photo? Should we allow a photo when a historic old building is being renovated for a new business but refuse a photo come grand opening time?”

Drysdale received 10 responses, which are reprinted here. Two editors, Gary Sosniecki and Bill Lynch, sent entire business news coverage guidelines that we are publishing in their entirety. Here are the other responses:

“Our policy (four weekly papers, rural/exurban area) is to do one ‘grand opening’ type story,” said Mike Buffington, owner of Mainstreet Newspapers, Inc. in Jefferson, Ga. “Everything else is forwarded to the ad dept. and they call back with a price for a paid ad. Industries or other major economic development projects are different and are covered as part of the political beats. Large retail projects, such as shopping center plans, are covered as part of the zoning process and we do mention the names of the retail stores to be involved. But we still only do one free story.

“Our biggest problem is when a business sponsors an event or gives a donation to a local charity. We don't use those as ‘news’ unless the dollar amount given is over $500. All businesses make donations to schools, etc. but only significant large donations are ‘news.’

“If the item is in a gray area, we look at the perceived ‘value’ of the type of business involved. If it is a local retail or financial business that would benefit from a ‘free’ news story, we weigh that. If it is a different type business that isn't so consumer-based, we also look at that. We also don't use the backdoor stuff, like a ‘McDonalds Player of the Week’ thing. They can buy an ad if they want to put their name on such a deal.”

Ann Marie Gonsalves, publisher of The Valley Voice in Hellertown, Pa., said she too has been badly burned by doing stories about new businesses in town.

“But, that was 10 years ago,” she said. “I simply refuse to do a story or cover ribbon-cutting ceremonies. I do offer a new biz in town advertising. The ad is surrounded by a headline, ‘New in Town.’ I have found that when they realize I am firm on this policy they do buy ads. Even after they buy ads, I will not do a story.

“I always wanted to do an advertising supplement whereby they buy an ad (a relatively large ad and then they get a story and pix (relatively short). In effect they are buying both the ad space and the story space. They could even write their own story.

“Good luck, but I say stick to your guns and refuse. These folks go to seminars and they are savvy and they will use you for free stuff. Meanwhile we still have to pay the printer, electric, etc….”

Brad Martin, editor of the Hickman County Times in Centerville, Tenn., said Drysdale was doing the right thing in approaching business stories as news and not as free publicity.

“Surely the business will need to run other ads down the road,” Martin said. “Of course, this particular business seems to be shortsighted. My approach has become, over the years, to get the chamber of commerce involved. That way, I end up with one grand-opening photo and just a cutline's worth of information. That's enough.

“As you point out, some commerce stories are worth more. So, give them more: Newsworthiness is the trick. It sounds to me like that's what you're doing.”

Brian Mazza, editor of The Mountaineer in Rocky Mountain House, Alberta, said his paper has a strict policy on promoting new businesses.

“Business openings, changes of management/ownership, and introduction of significant new services are news and should be treated as such, but there is a catch,” Mazza said. “We only write about these things at the prompting of our ad people. When new business owners call, I explain the policy and direct them to our salesperson. I explain that on opening of a business we can write an article at the time the business opens its doors or when it has its grand opening, their choice. But the article will need to be accompanied by advertising.

“They can't get any further with me without going through sales. The only exception is when the business is a regular advertiser, in which case their ‘news’ can be carried if deemed newsworthy. This policy has worked well, and I've only run into trouble with other businesses when I've stepped outside of the policy, which does happen from time to time, mostly by a lapse of judgment.”

Douglas Perret Starr, professor of agricultural journalism at Texas A&M University, said he had always been told that news is what the city editor says it is.

“Given that, if it is news, I would run a story on a new or expanded business, regardless of whether advertising resulted,” Starr said. “However, if advertising went to my competitors and not to me, later stories about that business would be no more than one or two paragraphs in the ‘Business Briefs’ column.”

Another academician, Ray Laakaniemi, a visiting professor at Tiffin University in Ohio, said Drysdale would be justified in changing his policy based on the animal hospital incident.

“In days before TV, Internet, free distribution, etc., etc., it would seem proper to separate news and advertising,” Laakaniemi said. “But in today's market, and using this case as an example, there is no need for you to be a whipping boy.

“I would not trade news straight up for advertising, but I would make it clear that in major investments, you would expect a fair shot at ads before you give them a free shot of publicity. Take it on a case by case basis, but explain to your advertisers what happened here and how you still have to pay the bills, just as they do.”

Lynn Hennigar, president of Lighthouse Publishing in Bridgewater, Nova Scotia, said her papers cover business stories as news and in a controlled manner.

“If a new business is coming to town, we would cover that announcement, when the announcement is made,” Hennigar said. “If they open their doors and want people to attend the opening, that's advertising. We offer a full page at half price for new businesses and grand openings; 50 percent of the page is advertorial. Most of our business news is covered as briefs so that we do not over cover an event such that advertising isn't required.

“If the store or business is large enough, we might also do a special section on their opening supported by the business and its suppliers and including lots of editorial. In the situation [Dick Drysdale] described, we would have done a small business brief essentially saying the new business was coming to town or had opened. Details such as hours of operation and descriptions of services or products offered would not be included.”

Elliott Freireich, publisher of the West Valley View in Litchfield Park, Ariz., said editors have a responsibility to provide their readers with the news and information about their community.

“It is our professional training that helps us decide what is news,” Freireich said. “And what is news has nothing to do with whether or not any company advertises with the newspaper. If an animal hospital opens in Chelsea and that is news, it is your responsibility to write about it. How much you write about it is also a matter of the value of that news and nothing else.

“If they decide not to advertise in your newspaper, that is for someone else to worry about (even if that someone else is you wearing your ad manager hat). You can not compromise the news, or barter a story for an ad, as much as we all wish we could sometimes.

“The hope is that the animal hospital owners will ‘see the light’ and run an ad with your newspaper. Unfortunately, until they do, you just have to suck it up and live with their decision. You could make a blanket decision that no news stories will be run about new businesses. That would solve this problem of the business not wanting to advertise after the story is run, but that would not be in the best interests of the readers.”