NH Is 1st State To Help Newspaper, Likely Not Last

HOLLY RAMER

CONCORD, N.H. (AP) — New Hampshire's decision to guarantee a line of credit to a struggling newspaper likely won't be the last such effort despite the questions it raises about independent coverage.

At least two other states have explored similar deals as newspapers across the country face an unprecedented decline in advertising revenue, but no other state has gone through with it yet, news industry analysts said this week.

New Hampshire's Executive Council, which reviews and approves state contracts, agreed without debate last week to guarantee 75 percent of a $250,000 line of credit to the Eagle Times of Claremont, which reopened under new ownership last month after declaring bankruptcy in July.

Stephen Farnsworth, professor of communication at George Mason University in Fairfax, Va., said newspapers face questions of credibility if their very existence depended on those they write about.

"Even if the paper covers government officials critically, readers may still have their doubts about whether they are getting the full story," Farnsworth said.

Publisher Harry Hartman said the newspaper has yet to touch the line of credit, given that it has brought in more money than expected since its bank approached the state for a guarantee. He said the newspaper expects to turn a profit in its first month.