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Shareholders Challenge Sinclair On Anti-Kerry Documentary

N.Y. Comptroller Sends Letter To Sinclair; Advocacy Group Underwriting Action

POSTED: 4:14 pm EDT October 19, 2004
UPDATED: 11:07 am EDT October 20, 2004

A documentary critical of John Kerry's Vietnam-era anti-war activities will be part, but not all, of a program examining the use of such documentaries to influence elections, Sinclair Broadcast announced Tuesday.

The program, "A POW Story: Politics, Pressure and the Media," will examine the "role of the media in filtering the information contained in these documentaries, allegations of media bias by media organizations that ignore or filter legitimate news and the attempts by candidates and other organizations to influence media coverage," the company said in a statement. It will air Friday on 40 of the company's stations.

Sinclair Broadcast Group Inc., the owner of 62 television stations, has been criticized for ordering the stations to pre-empt regular programming to air the show. The Democratic National Committee has filed a complaint with the Federal Election Commission, arguing that the broadcast should be considered an illegal in-kind contribution to the Bush campaign.

Sinclair fired its Washington bureau chief Monday after he publicly criticized the company's plans.

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"We have not ceded, and will not in the future cede, control of our news reporting to any outside organization or political group," said Joe DeFeo, Sinclair's vice president of news.

Groups have also called for advertisers to boycott Sinclair, whose stations reach a quarter of U.S. households, many in key swing states for the upcoming presidential election.

While the news special will discuss allegations surrounding Kerry's anti-Vietnam War activities raised in the documentary, "Stolen Honor: Wounds That Never Heal," the program will not air the entire 42-minute documentary, Sinclair said.

Sinclair said executives met recently with senior Kerry campaign officials but the campaign has declined to participate in the program.

"Sinclair has left the invitation open and will make every effort to accommodate the senator up to the air date for the program should he become willing to present his viewpoint for Sinclair's audience," the company said.

David Smith, CEO of Sinclair, said, "The experience of preparing to air this news special has been trying for many of those involved. The company and many of its executives have endured personal attacks of the vilest nature, as well as calls on our advertisers and our viewers to boycott our stations and on our shareholders to sell their stock.

Smith noted "attempts by leading members of Congress to influence the Federal Communications Commission to stop Sinclair from broadcasting this news special." Eighteen senators, all Democrats, wrote last week to the FCC to ask it to investigate Sinclair's plans. The agency declined to intervene.

"These coordinated attacks have occurred without regard to the facts since they predated the broadcast of our news special," Smith said.

Shareholders, meanwhile, challenged Sinclair's plans Tuesday, saying the flap over the controversial broadcast may hurt their investment.

Attorney William S. Lerach said he planned to sue on behalf of shareholders, alleging insider trading by top executives as well as damage from the decision to air the film. Media Matters, a media advocacy group, announced it was underwriting the costs of a shareholder action demanding equal time for opposing views.

And New York Comptroller Alan Hevesi sent a letter expressing concern to Sinclair on behalf of the state's pension fund, which owns shares in the broadcasting company.

Sinclair shares dropped more than 3 percent Tuesday, falling 23 cents to $6.26 a share on the NASDAQ market. Sinclair stock dropped about 8 percent on Monday, and is down from a high of more than $15 a share in January.

Two groups offered programs Tuesday to Sinclair to air in response to its news special. California philanthropist Deborah Rappaport and her husband Andy Rappaport offered to pay for an hour of air time on Sinclair stations to air the documentary "Going Upriver," a positive portrayal of Kerry's service in Vietnam, before the Nov. 2 election day.

The Rappaports offered to pay $1 million for the broadcast, plus any advertising revenue Sinclair would lose.

Mother Jones Magazine offered Sinclair a half-hour video of four prominent conservative Republicans - John Dean, Russell Train, Peter Peterson and Clyde Prestowitz - condemning the Bush administration.

Stay with TheWBALChannel.com and WBAL-TV 11 News for the latest news updates.

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