NEWSLETTER ON SERIALS PRICING ISSUES

NO 119 -- August 15, 1994

Editor: Marcia Tuttle

ISSN: 1046-3410


CONTENTS

119.1 POLITICS OF CANCELLATION, Bill Miller

119.2 B.H. BLACKWELL'S PRICING PREDICTIONS FOR 1995, Steve Entwistle

119.3 FAXON TO SELL REMAINING NON-US OBLIGATIONS TO EBSCO INDUSTRIES, Inc., Press release

119.4 AGREEMENT IN PRINCIPLE WITH FAXON, James Kels


119.1 POLITICS OF CANCELLATION

Bill Miller, Florida Atlantic University, miller@acc.fau.edu.

Several years ago, when our materials budget went from 3.5 million to 1.3 

million, I had the thrill of seeing my full-color portrait on the cover of 

the _Chronicle_ as an example of a pitiful wretch in whose plight everyone 

else could take comfort by comparison. In succeeding years many of you have 

experienced similar problems. 



During the past four years here, we have probably cancelled a million dol-

lars worth of serials. Taking my cue from discussion at a FAXON institute I 

had attended, it was obvious that the only way to make our huge cuts on 

short notice (or otherwise) was to concentrate on the sciences and engi-

neering, because, as Willie Sutton once said, that's where the money is. In 

dollar terms, the bulk of the cuts came, and had to come from these areas. 

We could have cancelled every journal we had in the social sciences and 

humanities and barely made a dent in our problem. Nevertheless, in dollar 

terms, the STM areas still command the great bulk of our resources, and 

were not unfairly cut, especially if one looks at enrollment and compares 

it to percentage of resources allocated. Still, our cuts have damaged the 

research capability of many STM departments, which is especially unfortu-

nate because at this institution virtually all of our Ph.D. programs are in 

the sciences and engineering. The only long-term solution I can see to this 

problem is document delivery and electronic access (or million-dollar bud-

get increases which do not appear likely).



What prompts this note however is a political and a personal question. I am 

concerned about the long-term damage done to my personal credibility and to 

the credibility of the library as a whole as a result of these cuts. Even 

though we did them carefully and with considerable consultation, as was 

inevitable with a process of this magnitude we undoubtedly made some mis-

takes, and there are those who firmly believe that we singled out their 

departments or colleges punitively or unfairly. Personally, I have gone in 

some people's minds from being an esteemed colleague to being a thoughtless 

and insensitive anti-intellectual yahoo who does not understand or support 

research.



By now, many of you have experienced the need to make sudden, drastic cuts 

in serials. What have been your experiences? How have you coped with them? 

How are you restoring confidence (if you are)? I know that many of you will 

say "well, if you did it right and explained it, there shouldn't be a re-

sidual problem." We think we did it right, and we did defuse most of the 

timebombs, but there remains a residue of unhappiness which seems deep-

seated. It is perhaps inevitable and should be ignored, but nevertheless I 

worry about it. Does time heal all wounds?

119.2 B.H.BLACKWELL'S JOURNAL PRICING PREDICTIONS FOR 1995

Steve Entwistle, B.H. Blackwell Co., Steve.Entwistle@blackwell.co.uk.

Every year when we have received sufficient information from our publisher/

suppliers B.H.Blackwell prepare price predictions for the forthcoming sub-

scription year. We are now confident that we can project the inflationary 

effects with some accuracy.



Titles published in Britain will rise by 11.16%.



Titles published in Continental Europe will rise by 11.05%.



Titles published in the US will rise by 11.36%.



A key factor governing price rises for all libraries is the relative stead-

iness of the foreign exchange markets in the past twelve months. We do not 

think that exchange rate fluctuations will be a factor in the 1995 fore-

cast.



We have surveyed the major publishers and our current forecast is as above. 

It had been anticipated that overall we might see publisher price increases 

in single figures for 1995, but the latest feedback shows that this will 

not be the case.



For British libraries the effect of a stable pound will mean that the hor-

rendous increase of 23-24% faced by libraries in 1994 will not be repeated, 

but an average increase of 11.18% (the figure will vary according to the 

mix and scope of the collection) is certainly bad news.



For North American libraries, with the majority of British and European 

publishers now pricing in dollars for this market, an increase of 9.5-10.5% 

is forecast. This is in contrast to 1994 when the strength of the US dollar 

led to a very low increase for European titles. The prediction for American 

titles is 11.36%, and an overall increase of 10.25-10.95% is likely for 

academic research libraries with a standard mix of titles.  



It is worth keeping in mind that other factor influencing publisher price 

rises -- an increase in pagination and frequency. Some publishers continue 

to control page levels but it is anticipated that we will see an increase 

in the range of 2-3% next year.

119.3 FAXON TO SELL REMAINING NON-US OPERATIONS TO EBSCO INDUSTRIES, INC.
August 8, 1994, Westwood, MA -- The Faxon Company announced today that it 

has entered into an agreement with EBSCO Industries, Inc. of Birmingham, 

Alabama, for EBSCO to purchase The Turner Subscription Agency and the bal-

ance of Faxon's non-US operations, excluding Europe. EBSCO anticipates 

completing its due diligence in a short period of time before closing the 

sale. Faxon has elected not to accept R. R. Donnelley and Sons' offer to 

purchase the company.  

 

According to majority shareholder Judy Davis, "Faxon received numerous 

offers for various parts of the company. We are pleased to accept EBSCO's 

offer to purchase Faxon's remaining non-US operations and The Turner Sub-

scription Agency."  

 

In a separate transaction, Faxon completed last week the sale of its Euro-

pean subsidiaries to Swets & Zeitlinger BV of Lisse, The Netherlands.  

 

"With the completion of these two transactions, Faxon will be in a strong 

position to ensure continued stability for its core business in the United 

States. We look forward to continuing our long history of quality service 

to the library community," continued Davis.
119.4 AGREEMENT IN PRINCIPLE WITH FAXON
Letter from James Kels, Chairman, Elsevier Science.



Elsevier Science

655 Avenue of the Americas

New York NY 10010-5107



Dear Librarian,



I am very pleased to announce that the Elsevier companies have reached an 

agreement in principle with The Faxon Company which will enable Faxon to 

resume normal trading with the Elsevier companies. The agreement is subject 

to execution of final documentation.



The agreement in principle will establish a collateral account, held in 

trust by the Bank of Boston, into which all 1995 subscription payments for 

all publications handled by Faxon will be held until distributed to pub-

lishers; Faxon's existing debt to publishers will be retired; and new cred-

it for Faxon has been arranged. The arrangement is intended to encourage 

publishers and clients to continue normal trading terms with Faxon.



Faxon has provided a unique service to the library commuity and to the 

publishers for more than a century. Elsevier has been working with Faxon's 

owners and management, and we are very pleased that we have found a way to 

reinforce Faxon's financial stability and to encourage libraries and pub-

lishers to continue to enjoy Faxon's services.



Both Elsevier and Faxon are deeply appreciative of the patience and support 

which the library community has shown in this difficult period. Now that 

the process of resolution is in its last lap, we hope that this patience 

and support will continue.



Yours sincerely,



James Kels

Chairman

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Statements of fact and opinion appearing in the _Newsletter on Serials 

Pricing Issues_ are made on the responsibility of the authors alone, and do 

not imply the endorsement of the editor, the editorial board, or the Uni-

versity of North Carolina at Chapel Hill.

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The NEWSLETTER ON SERIALS PRICING ISSUES (ISSN: 1046-3410) is published by 

the editor through the Office of Information Technology at the University 

of North Carolina at Chapel Hill, as news is available. Editor: Marcia 

Tuttle, Internet: tuttle@gibbs.oit.unc.edu; Paper mail: Serials Department, 

CB #3938 Davis Library, University of North Carolina at Chapel Hill, Chapel 

Hill NC 27514-8890; Telephone: 919 962-1067; FAX: 919 962-4450. Editorial 

Board: Deana Astle (Clemson University), Christian Boissonnas (Cornell 

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Press), Fred Friend (University College London), Charles Hamaker (Louisiana 

State University), Daniel Jones (University of Texas Health Science Cen-

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