Landmark takes full control of Annapolis newspaper

By Phil Walzer
The Virginian-Pilot

For more than 30 years, Landmark Communications Inc. has quietly owned a hair under 50 percent of a half-dozen Maryland newspapers and The Washingtonian, a monthly magazine chronicling political and social doings in the nation's capital.

The arrangement, crafted in 1975 with publisher Philip Merrill, was a happy one, by all accounts. Then Merrill, despondent over his declining health, committed suicide on the Chesapeake Bay in June.

In a deal announced Wednesday to sort out the properties, Merrill's family said it will transfer its interest in the newspapers to Landmark next month. That will give the Norfolk company full control of The Capital, the daily newspaper in Annapolis, and a ring of smaller Maryland papers, published once or twice a week. Landmark also owns The Virginian-Pilot.

In turn, Landmark will hand its share of The Washingtonian to the Merrills. Merrill's widow, Eleanor, will serve as chairman; his daughter Catherine Merrill Williams will succeed him as publisher of the magazine.

"It's a good sequel to what was a very good 32-year partnership," said Richard F. Barry III, Landmark's vice chairman.

The deal, Landmark officials said, makes sense: Landmark has made its mark with newspapers - it owns more than 50. Its experience with magazines is far more limited. Landmark sold its last magazine, Chicago, in 1995.

Bruce Bradley, the president and publisher of The Virginian-Pilot, said the Annapolis newspaper proved an attractive catch because of its solid news coverage and its location in the state's capital, a thriving news market.

Its circulation has grown to 47,000 from 25,000 when Landmark first gained a stake in it. The Capital is the largest publication Landmark has added to its roster since it acquired The Roanoke Times in 1969.

Bradley also is president of Landmark Publishing to which The Capital will report. Barry predicted no major changes at the paper, which he called "a well-run publication."

"Managing newspapers is incremental," Barry said. "You don't wave your arms and perform miracles. You do it by making minor adjustments along the way."

The other newspapers in the group include The Maryland Gazette, which was founded in 1727 and considers itself the oldest newspaper in the United States. That distinction also is claimed by The Virginia Gazette in Williamsburg, owned by the Daily Press in Newport News.

In 1975, Landmark acquired a 49.9 percent stake in Merrill's publications, known collectively as Capital-Gazette Newspapers. Frank Batten Sr., Landmark's retired chairman and chief executive officer, said the company had wanted to buy the Annapolis newspaper but settled for the nearly even split.

Until now, Barry said, Landmark served as a "friendly, quiet partner" and a sounding board to Merrill. "We went along with his judgment in all cases," Barry said, "because he had good judgment."

Merrill was a voluble personality, known for his desk-thumping, profanity-laden tirades and a roaring laugh.

He expressed his passions freely - he lobbied ferociously against allowing gambling on slot machines in Maryland - and enjoyed vigorous debate. Batten recalled that phone calls with Merrill could last three to six hours.

Merrill also served as an assistant secretary-general of NATO and president of the Export-Import Bank of the United States.

He donated $10 million to the University of Maryland at College Park's journalism school, which was renamed in his honor.

When Merrill was reported missing in June, relatives and friends held out hope that he had survived. He loved to spend time on the Chesapeake Bay in his 41-foot sailboat, the Merrilly.

A week and a half later, his body was found floating in the bay with a shotgun wound to the head. His family issued a statement saying he'd been depressed after undergoing heart surgery the year before.

Merrill was 72. His sharp words hadn't scared off numerous well-connected friends. Speakers at his memorial service included Vice President Dick Cheney, former CIA director R. James Woolsey Jr., and C.D. Mote Jr., the president of the University of Maryland at College Park.

"Phil and I were blessed to have had a strong and personal relationship with Landmark Communications for 32 great years," Eleanor Merrill said in a statement. "Although this decision has been a difficult one for me, I am confident that Landmark will preserve the traditions that have made our newspapers such an integral part of their communities."

Frank Batten Jr., Landmark's chairman and CEO, said in a statement that the Merrills "have been superb partners, and we wish them much continued success with The Washingtonian magazine.

"There will always be an indelible Merrill imprint on the Capital-Gazette Newspapers," he wrote, "and we will strive to uphold the high standards they have set."

• Reach Phil Walzer at (757) 222-3864 or phil.walzer@ pilotonline.com.