Hugh Gilzean Reid founded the Daily Gazette for Middlesbrough in 1869. A practising journalist, Reid had previously worked for the Banffshire Journal , and was editor of the Peterhead Sentinel and the Edinburgh Weekly News . Reid assisted in the establishment of the Buchan Observer in 1863, and was its first editor. Having sold his interest in this paper, he moved south and, in 1869, launched the Daily Gazette for Middlesbrough .

The pattern of its content of four pages was established early: a generous amount of space was devoted to small advertisements; and much space was made for local news. General News received large print for headlines, but articles were kept relatively short. The Saturday edition was slightly larger in format, contained eight pages and cost 1d. Serialisation of chapters of novels was included from an early stage, for example, issue no. 873 of 3 March 1877 has two from the novel, Who was the Murderer?

The paper gained greater success after Thomas Purvis Ritzema became its commercial manager in 1876. Reid retained management of the paper's literary output. In 1881, the paper changed its title to the North-Eastern Daily Gazette ; this title was retained until 1936. Published each evening for a 1/2 d, it attracted a circulation of 10,000 by 1882. Circulation had grown to some 40,000 by 1885 and 60,000 by 1894, figures larger than the Manchester Guardian or the Yorkshire Post at this time.