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j I PRIME RIP STEAK LOBSTER CRAP /-7 elican’s had Austin, Corpus Christi, Victoria, Brownsville, Temple, McAllen, Port Aransas, Tucson ra DC N EBRS College Station, San Antonio, Lake Tahoe NNE IOW SS OPP IN In um. Printers Stationers Mailers Typesefters High. Speed Web Offset Publication Press Counseling Designing Copy Writing Editing Trade Computer Sales and Services Complete Computer Data Processing Services n u ns pens AM11/10 1111 at IL C..3111 1.t:=11, or FLIPTILIPIRM 512/442-7836 1714 South Congress P.O. Box 3485 Austin, Texas 78764 18 JANUARY 20, 1978 f Publisher. . .from page 2 Expanding the Observer’s size to show readers what can be done with more space and better graphics, Hightower, Walsh, Lois Rankin, Linda Rocawich, Susan Reid, Laura Richardson, Colin Hunter, Ray Reece, Luther Sperberg and other co-workers have turned out 25 issues that have had more pages than ever before, 672 in all, an increase of 53 percent over last year. Allowing for more advertising and illustration, this represents a 33 percent increase in editorial copy reaching you in 1977. All this has cost more money, however, and despite a giant leap in the Observer’s income in 1977, we close the year in greater debt and a graver financial condition than ever before. First, the good news: our income jumped 56 percent, from $87,700 in 1976 to $137,000 in 1977. Roughly, the increase came from $18,700 more in subscription income, $8,300 in additional advertising, $17,000 in fundraising contributions, $7,000 granted for special investigations, and $2,500 given by readers to the Investigative Reporters Fund. The bad news is that our loss this year is $20,500. Why did we lose more when we took in so much more? We were dealing, of course, with the higher costs of putting out a greatly expanded product. In addition, serious mistakes were made in connection with one part of the fundraising, but they won’t be repeated. Too much was spent to put on the round of five Texas parties held in the summer, and they drew disappointing turnouts, leaving us with the contributions spent on costs and a net loss of $7,500 on that phase of our fundraising. Where to from here? Forward. The staff, with the selfless and indefatigable help of Warren Burnett, Bernard Rapoport, Larry Goodwyn and JohnHenry Faulk, plus the support of Dolores Tarlton, Patti Everitt and others, has put together a program with the potential to recover us from this situation and keep us moving ahead. The key to the program is the generous offer, made in the fall by a great Texan, to match $20,000 if and when we raise that additional amount. The raising of these matchable fundswe have raised about half of them alreadyand the receipt of the matching $20,000 can put our debt into manageable shape and leave us a margin as capital. I believe we must once and for all get out of the fundraising business, and we have a plan to do this once we get level again. The next two months are critical. Observer fundraisers are planned for Fort Worth, Waco, Gal ,eston, Wichita Falls, Christi and Houston. Whether we are to be financially sound, or are to face an even graver situation, depends on the success of our fundraising in January and