As soon as governments found out that newspapers were a fantastic and very often unsuspicious medium for supporting propaganda they tried to pull them to their side.
Two ways existed:
a) to have one's own newspaper, which implies that mostly friends of the government read it. Nothing is regarded as something neutral.
b) to keep a good relationship to the most powerful/most frequently read newspapers and then try to make one's opinion theirs.
Today mostly elected is b), trying to set up alliances.
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Supposedly the most famous British atrocity story concerning the Germans during World War I was the "Corpse-Conversion Factory"-rumor; it was said the Germans produced soap out of corpses. A story, which got so well believed that it was repeated for years - without a clear evidence of reality at that time. (
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In the 1920s the Hollow Earth Theory was very popular in Germany. With the acceptance and support of the NAZI regime Karl Neupert wrote the book Geokosmos. With the help of this book the theory became a cult in Germany.