Rupert Murdoch returned from Oxford to become managing director of News Limited in 1953. His drive and energy infected the staff and the circulation and advertising revenue began to grow. He began to direct his attention to acquisition and expansion. He bought the
Sunday Times in
Perth, Western Australia and, using the tabloid techniques of
Lord Northcliffe, made it a success.
In
1956, Murdoch began publishing Australia's first and most successful weekly television magazine,
TV Week, at Southdown Press in Melbourne, which also published Australia's oldest women's magazine
New Idea. With the Perth paper, the TV magazine and a re-energised
New Idea all providing a steady and improving cash flow he was able to obtain finance for more expansion from the Commonwealth Bank of Australia, a government-owned bank dedicated to supporting Australian business development.
A defining moment in Murdoch's life was the Stuart case in Adelaide when
The News began a campaign to free
Max Stuart, a young
Aboriginal carnival worker, who had been convicted of the murder of a small girl on a beach near
Ceduna, South Australia in late
1958. Stuart had been sentenced to death by
hanging.
The News was openly critical of the case and investigated it extensively. The death penalty was eventually
commuted to
life imprisonment.
The campaign by
The News raised the ire of the
Premier of South Australia,
Sir Thomas Playford. He established a royal commission, conducted by the state's Chief Justice, the same judge who had passed sentence on Stuart. The outcome was a confirmation of Stuart's guilt and a recommendation that News Ltd (of which Murdoch was managing director) and its editor be charged with nine counts of
seditious libel, a form of treason based on medieval English law, and
criminal libel. Eight of the charges were thrown out, but the jury could not agree on the ninth, which the prosecution subsequently withdrew. This experience gave Murdoch a taste of the overwhelming power of popularly elected politicians and would shape the future policies of all his newspapers. (In
2002, he financed a motion picture
Black and White, a fictionalised version of the Stuart story.) Shortly after the case, Murdoch replaced Rivett as editor of
The News.
Over the next few years, Murdoch established himself in Australia as a dynamic business operator, expanding his holdings by acquiring suburban and provincial newspapers in
New South Wales,
Queensland,
Victoria and the
Northern Territory. including the
Sydney afternoon tabloid,
The Daily Mirror, as well as a small Sydney-based recording company,
Festival Records. His acquisition of the
Daily Mirror allowed him to challenge two powerful rivals in Australia's biggest city and to outwit his afternoon rival in a long circulation war.
In 1964, Murdoch launched
The Australian, Australia's first national daily newspaper, based first in
Canberra and later in
Sydney.
The Australian, a
broadsheet, was intended to give Murdoch a new respectability as a 'quality' newspaper publisher and greater political influence. The paper had a rocky start, marked by publishing difficulties and a constantly changing succession of editors who found it impossible to deal with Murdoch's persistent interference. Promised as a serious journal of the affairs of the nation, the paper actually veered between tabloid sensationalism and intellectual tedium until Murdoch was able to find a compliant editor who could abide with his often unpredictable predilections.
The departure in 1966 of the Liberal Prime Minister
Robert Menzies saw a chaotic six years of politics after Menzies' chosen successor
Harold Holt drowned, to be replaced by
John Gorton and then
William McMahon. In 1972, Murdoch acquired the Sydney morning tabloid
The Daily Telegraph. In that year's election, Murdoch threw his growing power behind the
Australian Labor Party under the leadership of
Gough Whitlam and duly saw it win power. As the Whitlam government suffered a great loss of public support following its 1974 re-election, Murdoch soon turned against Whitlam and supported the Governor-General's
dismissal of the Prime Minister.
During this period, Murdoch turned his attention overseas. His business success in Australia and his fastidious policy of prompt periodic repayments of his borrowings had placed him in good financial standing with the Commonwealth Bank and he obtained its support for his biggest venture yet, the takeover of a family company which owned
The News of the World, the Sunday newspaper with the biggest circulation in Britain.