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Phone hacking letter spells more trouble for Murdoch and News Corp.

A letter from a former News of the World reporter previously jailed for phone hacking says the practice was 'widely discussed' at the shuttered tabloid.

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A letter from a former News of the World reporter, who was jailed in 2007 for hacking the phones of British royalty, further calls into question the veracity of testimony from Rupert Murdoch and his son James at last month's sensational phone hacking hearing.

The letter from Clive Goodman to News International, the British newspaper arm of Mr. Murdoch's News Corp., says that NotW editors "widely discussed" the practice of hacking until ordered to stop by former deputy editor Andy Coulson, who was later hired as Prime Minister David Cameron's communications chief.

The appearance of the letter on Tuesday now suggests that James Murdoch may be recalled to Parliament to answer questions about whether he knew more than they admitted to at the July 19 hearing.

“If the content of [Mr. Goodman’s] letter is confirmed it will suggest the evidence James Murdoch gave the committee is not consistent with evidence now coming out,” says Martin Moore of the London-based Media Standards Trust.

British Labor MP Tom Watson, a member of the parliamentary culture, media, and sport select committee, called the Goodman letter “the most significant piece of evidence that has been revealed so far. It completely removes News International's defense. This is one of the largest cover-ups I have seen in my lifetime."

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