Broadcasting Telecasting (Apr-Jun 1958)

PROGRAM SERVICES UPI BORN OUT OF MERGED UP-INS • Telenews to be continued by Hearst Metrotone Inc. • Bartholomew made chief; Justice Dept. investigates The consolidation of International News Service with United Press Assns. to form United Press International was confirmed in an announcement May 24 [At Deadline, May 26]. The fate of the INS-Telenews operation, which supplies tv nevvsfilm and programming to stations throughout the country, was clarified later in the week: the organization will be continued by Hearst Metrotone Inc. It was explained that Telenews was not involved in the merger because the organization is owned 50% by Metro-Goldwyn-Mayer and 50% by the Hearst Corp., which also owned INS and International News Photos, both of which were covered in the consolidation. The announcement of the merger did not touch upon the financial considerations involved but it was reported that an undisclosed amount of UP stock will be paid to the Hearst Corp. Frank H. Bartholomew, president of United Press, becomes president of UPI. Kingsbury Smith, general manager of INS, will serve as vice president and associate general manager. The board of UPI will be enlarged to include William Randolph Hearst Jr., editor-in-chief, Hearst Newspapers; J. D. Gortakowsky, chairman of the board of Hearst Consolidated Publications Inc., and G. O. Markuson, vice president and treasurer of the Hearst Corp. Mr. Bartholomew said that "the consolidation of the two services will assure a stronger competitive news and pictorial news-report to newspapers, radio and tele vision stations through the entire civilized world." He indicated that "economics" was an "important factor" in the merger, citing "steadily rising costs." Attorney General William Rogers said Tuesday the Justice Dept. should be able to announce its position within the "next few days" on whether it feels a violation of the Clayton Antitrust Act is involved in the merger, following a meeting last Monday of Assistant Attorney General Victor Hansen, antitrust chief, and Justice lawyers, with UPI President Frank H. Bartholomew and counsel. Mr. Hansen said he heard rumors of the merger and sent telegrams to UP and INS officials asking that the merger not be consummated until Justice had studied the plans. Mr. Bartholomew replied that the merger had been reached May 16, but was not announced at that time pending various operational arrangements. Chairman Emanuel Celler (D-N.Y.) of the House Judiciary Committee said Monday the merger emphasizes the need for passage of his bill (HR 7698) to require that the Justice Dept. be notified of mergers beforehand. The bill was reported to the House by the Judiciary Committee May 27, 1957, but has been held up in the House Rules Committee since then. He felt that competition may have been "substantially" lessened as that term is used in the Celler-Kefauver Amendment to the Clayton Act, and that "undoubtedly, the public's opportunity to get news has been 'substantially' diminished." Sen. Estes Kefauver (D-Tenn.) said Tues FINAL negotiations of the UP-INS merger were consummated by (standing I to r) Raymond McCauley, INS general counsel; Harvey Upton, INS attorney; Joseph R. Fawcett, UP attorney; Glen Offenbacher, UP attorney; J. D. Gortatowsky, Hearst Consolidated Publications Inc. board chairman; J. Kingsbury Smith, INS general manager; Mims Thomason, UP vice president-general business manager; Robert L. Frey, UP executive assistant to president; (seated I to r) E. K. Bryan, UP attorney; Frank H. Bartholomew, UP president-general manager; Richard E. Berlin, Hearst Corp. board chairman, and Lee Keller, UP vice president-general sales manager. Broadcasting OVER THE PIEDMONT CAROL) N AS 1,788,361 people* WITHIN THE WSPA-TV 75 MILE AREA IT'S BIGGER THAN ATLANTA 1,557,764 BIRMINGHAM .1,427,783 NEW ORLEANS 1,260,360 HOUSTON 1,226,924 MIAMI 699,103 CHANNEL 7 IS THE FIRST AND ONLY VHF STATION COVERING THIS GIANT SPARTANBURG-GREENVILLE SUPERMARKET WITH CBS. Counted population A. D. Ring and Assoc 1950 Census. June 2, 1958 • Page 75