I don't think the Times was explicitly endorsing racism, either. However, if one is going to endorse a candidate, it seems that it is incumbent upon you to ensure that his policies are representative of what you think the proper course of action is. Much as Trent Lott has recently discovered. ;)
I don't think that Wilson turned out the way the Times intended, to be sure. But they did help make him, and thus bear some responsibility for him. Keep in mind, however, that while Wilson was indeed stunningly racist, I'm not really in the camp that tends to assign him blame for everything that's gone wrong since 1917 or so.
Yes, and no.
The Time's endorsement of Wilson was incredible short-sightendness. It was not a moral failure. That belongs to Wilson.