Recurrent Rumor

For months, publishing circles have buzzed with the rumor that the New York Journal-American (circ. 599,536), biggest afternoon paper in the Hearst chain, was selling out to Scripps-Howard's afternoon New York World-Telegram and Sun (circ. 450,486). The rumor gained currency in the light of two major Hearst and Scripps-Howard mergers: last year's merger of Hearst's money-losing International News Service with Scripps-Howard's United Press, and last summer's union of Hearst's unprofitable San Francisco evening paper, the Call-Bulletin, with Scripps-Howard's equally unprofitable News.

Patiently, but with mounting irritation, Hearst executives denied the rumor every time it popped up, finally exploded last week when the American Newspaper Guild, recirculating the rumor, all but buried the Journal-American. In an article in the Guild Reporter, the Guild's International Executive Board asked U.S. Department of Justice trustbusters to investigate "with zeal a reported arrangement between Hearst and Scripps-Howard news, paper chains to carve up their markets." Continued the Guildsmen: "Now more than 600,000 subscribers of the Hearst Journal-American . . . may soon be deprived of their favorite newspaper, despite denials. The Hearst Journal-American thus would give its 1,500 faithful employees of long service Christmas presents in the form of dismissal notices."

Moving swiftly, Journal-American Publisher Joseph Kingsbury Smith had a $3,100,000 libel suit filed against the Guild. "Deliberate malice or shocking irresponsibility," said Smith of the article. "It is idiotic to think that the management of the Journal-American would be planning to suspend publication."

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