Newspapers face inquiry from SEC

NEW YORK — The Securities and Commission is conducting an investigation into circulation reporting in the newspaper industry following several disclosures of fraudulent practices in recent months.

Catherine Mathis, a spokeswoman for The New York Times, said Wednesday the SEC is taking an “industrywide look” at circulation practices, but she declined to be more specific about the inquiry. She said the Times stood by its own circulation reporting, and she also added: “We welcome the SEC’s action because we believe it will help put to rest any lingering doubts created by the improper actions of a few.”

The SEC, in keeping with its usual practice, declined to comment on whether any such investigation was under way.

The Washington Post Co. also said it had received a letter from the SEC saying the agency was reviewing circulation reporting methods, and that it had complied with a request to provide information. The company said in a statement that the “SEC made clear that the inquiry is an industry review and should not be taken to suggest that The Post has engaged in any wrongdoing.”

Belo Corp., which has acknowledged improper circulation reporting at its main newspaper, The Dallas Morning News, said that it had received an informal inquiry from the SEC and that the company was responding to it. Carey Hendrickson, Belo’s vice president of investor relations, confirmed that the inquiry was related to circulation at the Morning News but declined further comment.

Belo disclosed in August that the Morning News had overstated 2003 newspaper sales by 5 percent on Sundays and 1.5 percent for other days. Belo officials blamed the circulation overstatement to sales incentives that began in early 1999 and have since been stopped.

Tribune Co., another major newspaper publisher, has revised circulation figures at its Newsday newspaper on New York’s Long Island and at its Spanish-language newspaper Hoy because of improper reporting practices. Tribune has said it is cooperating with queries from the SEC into circulation matters.

Hollinger International Inc. has also disclosed inflated circulation figures for its Chicago Sun-Times newspaper and other papers it owns, but a spokeswoman declined to comment on whether the company had been contacted by the SEC on the matter.

Heidi Chen, a spokeswoman for the Audit Bureau of Circulations, a circulation reporting group, confirmed that the organization had been contacted by the SEC, but she declined to make any comment. The ABC has censured Newsday, Hoy and the Sun-Times for misstating their circulation figures.