The following editorial appeared in the May 2003 issue of Toledo Business Journal.
Permission to reproduce this editorial can be obtained by contacting the Editorial Department of Toledo Business Journal at (419) 865-0972.

 

 

 

Leadership damaged: Part II

 

Will executive committee members at Block Communications, Inc. take action?

 

In our last issue, we published Part I of this editorial series that began to examine the impact on the community of the Toledo Blade’s and John Robinson Block’s personal vendetta against the Toledo-Lucas County Port Authority. We also revealed the role that Port Authority board member Jerry Chabler has in Block’s efforts to accomplish his personal vendetta. Part I of this editorial series can be found on our website at www.toledobiz.com.

Over the past several months, we have talked to area CEOs, government officials, community leaders, and others. During this time, there have been several positions on the board of directors of the Toledo-Lucas County Port Authority that have come open. Both the Lucas County Commissioners and Mayor Jack Ford have been faced with the task of filling these openings.

In January and February, the Lucas County Commissioners were engaged in an effort to fill the board position formerly held by George Ballas. In Part I of this series, we disclosed allegations of a set of “schemes” and “dirty tricks” involving this open board position and Jerry Chabler.

This previous editorial stated: “Allegations have now surfaced that ‘schemes’ and ‘dirty tricks’ were used by Chabler involving the appointment of former Mayor Carty Finkbeiner to the Port Authority board. Finkbeiner submitted his nomination to the Lucas County Commissioners for the Port board position formerly held by George Ballas. We learned that Chabler spoke to key community leaders concerning Finkbeiner’s appointment. Allegations have been made that Chabler threatened a number of these individuals with attacks by the Toledo Blade if they did not cooperate in support of Finkbeiner. These allegations further state that Chabler claimed he was speaking for Toledo Blade publisher and editor-in-chief John Robinson Block.”

The editorial continued: “Chabler’s efforts were aimed at discouraging one of the most qualified candidates for this Port board position from seeking appointment, it is alleged. Further, he attempted to use threats of attacks by the Toledo Blade, according to these allegations, to pressure key community leaders. These efforts were designed, it is alleged, to influence the decision of the Lucas County Commissioners concerning the pending Port Authority board appointment. The community leaders to whom we spoke asked us not to include their names in this editorial.”

Separately, at the time of Chabler’s alleged activities, the Lucas County Commissioners were contacting CEOs at area corporations and other community leaders. They appealed to these individuals to consider appointment to the open Port Authority board of directors position. As a result of their appeal, the Lucas County Commissioners obtained a refusal from nearly all of these capable and influential leaders. Why are almost all of the area’s most talented business CEOs and business leaders refusing to serve on the board of directors of the region’s lead development organization?

We spoke with a number of the individuals who had been contacted by the Lucas County Commissioners and with others as well. These individuals do not want their names or organizations mentioned, but we will share some of their comments and opinions.

The CEO of a large area corporation explained that at one time, a position on the Port Authority board of directors was perceived as a prestigious honor. This individual expressed strong disappointment that the board of directors is now being used on many occasions, by selected board members, to “grandstand” to the media for their own personal benefit.

In discussing the Port Authority, another senior executive expressed a great deal of frustration about the impact on this key development organization that has resulted from the Toledo Blade’s personal vendetta campaign. This individual would not consider a leadership position on the Port Authority board of directors under the current circumstances.

We spoke with one community leader who had previously served on the Port Authority board of directors. According to this former board member, he had been the target of repeated personal attacks in the Toledo Blade. He explained that the repeated attacks in the newspaper did not concern him personally. As someone who is in the position of leading large numbers of people, he has the ability to deal with differing opinions and criticism in the newspaper. However, he explained that the combination of the attacks in the newspaper and the “schemes” and “dirty tricks” being orchestrated have resulted in a great deal of wasted time and resources. There is a consensus that successful individuals who are accustomed to getting results for the community will not spend their time in such a situation. This former board member resigned from the Port Authority board of directors in hopes the Toledo Blade attacks would stop and the agency would be able to focus on development for the community. The attacks on the Port Authority did not stop after his resignation.

Several community leaders shared another opinion with us. They explained that it is extremely difficult to accomplish the work of economic development. There is intense competition from communities in other parts of the country and around the world. The economy has been difficult and has placed an even greater number of obstacles in the path of job retention and job creation. These individuals explained that it takes all areas of the community working together in order to obtain successful results in this environment.

To the contrary, they describe the reality of the situation in our region. There are regular distractions that are being created by the attacks in the Toledo Blade. There are “schemes” and “dirty tricks” that divert the attention and efforts of our economic development organizations. The chances for success are made more difficult under these conditions. These individuals explained that the wasted time and resources ensure that progress in retaining and creating jobs in our area will be delayed.

We spoke to a number of individuals who discussed the impact on leadership in the region. There is an opinion that the loss of talented individuals from the Port Authority board of directors is very damaging. Past board of directors chairman Jim White resigned in February. White was leading a critical strategic planning effort and an effort to more effectively organize economic development resources in the region. His resignation was not helpful to this project. Following White’s resignation, past board of directors chairman Ray Medlin also resigned from the Port Authority board. Medlin’s and White’s resignations represent key losses to the Port Authority. There are also rumors of additional pending resignations from the Port Authority board of directors. Community leaders have expressed the opinion that many talented individuals will not spend their valuable time on a board of directors that has to deal with attacks in the Toledo Blade and with “schemes” and “dirty tricks.”

Community leaders further discussed the impact on leadership in the region. There is a refusal by almost all of the area’s most talented and influential CEOs and other business leaders to serve on this critical agency board under the current circumstances. There is no CEO from any major corporation in the region on the Port Authority board of directors. In other communities, these influential individuals are critical to a successful development process. Individuals to whom we spoke believe that the Toledo Blade’s personal vendetta is responsible for this situation. The refusal of the area’s most talented business leaders to be on this board and the appointment of “grandstanders” and politicians with a personal agenda is ensuring that the strongest development organization in the region is being transformed. The opinion has been repeatedly shared with us that Block’s personal vendetta is being successful at harming leadership in the region and reducing the effectiveness of the Toledo-Lucas County Port Authority.

The use of a daily newspaper to engage in a personal vendetta campaign violates basic tenets of ethics and integrity.

The Toledo Blade has alienated skilled reporters and editors as a result of this type of editorial practice. According to key sources, some of the newspaper’s most talented employees have had serious issues with this situation and personnel have left the Toledo Blade’s employment after being associated with activities of this nature. The effect of this personal vendetta on employees at the Toledo Blade should have the attention of Block Communications, Inc. which owns the newspaper.

In a confidential memorandum prepared last year which accompanied the issuance of senior subordinated notes for the corporation, ownership of Block Communications, Inc. equity was disclosed. According to this memorandum, William Block, Sr. and William Block, Jr. own 50 percent of the voting common stock of the company, Allan J. Block owns 25 percent, and John Robinson Block owns 25 percent of the company’s voting common stock. While John Robinson Block owns 25 percent of this equity, other members of the family control 75 percent of the voting common stock.

Any community requires that the editorial operations of a daily newspaper be conducted in a responsible and ethical fashion. Continued efforts to accomplish a personal vendetta through the resources of the Toledo Blade will result in further damage to the community and to leadership in the region.

Members of the executive committee of Block Communications, Inc. should now be aware that allegations have surfaced that community leaders in Toledo have been threatened with attacks by the Toledo Blade. These threats of attacks by the Toledo Blade, it is alleged, have occurred in attempts to force community leaders to take actions against their will. The attention of many concerned citizens has been drawn to alleged activities designed to wrongfully influence the decision of public officials in Toledo.

Activities of this nature cannot be tolerated.

Actions by members of the Block family concerning these issues will be observed closely by concerned citizens and leaders in the community.

(For permission to reprint this editorial in other newspapers, newsletters, or direct mailings, or to use in radio and TV broadcasts, please contact the Toledo Business Journal at (419) 865-0972.)