Evening star., 1942-08-29

portant papers OF the organl1ation
though some smaller papers in key
positions" had been allowed
stock. As a result OF dissatisfaction
expressed by members-as one put 1t.
the Associated Press rs only mutual
in name"--in 1923 proposal was
made and carried out to permit each
to subscribe for $50 Of bonds
for each $25 of his weekly assess
ment. and. regardless Of the amount
of the weekly assessment, a mini
mum subscription of 500 and a
of $1,000 was allowed.
Notwithstanding this change, the
larger newspaper proprietors, those
holding not less than 81 900 of bonds,
own at present majority Of the
outstanding bonds. and ~ per cent
of the present members do not hold
any bonds at all.
so. The vote of the bondholders
of the Associated Press, rather than
the membership vote, has always
completely controlled the selection
of directors. The bonds issued by
the Associated Press give one vote
for the election of directors for each
$25 of bonds provided interest has
been waived, except that no one
member can cast more than 40
votes on account of his bond hold
ings. The ratio of bondholder vote
to membership vote was more than
4 to l for the years 1900 to 1923, in
elusive; more than to l for the
years 1924 to 1927, inclusive: and
more than to l since 1927 At
present it is approximately 8 to /.
A DESCRIPTION AND COM
PARIsON OF EXISTING NEWS
AGENCIES:
81. The three existing American
news-agencies are the Associated
Press, United Press Association
hereinafter referred to as U. P.)
and the International News Service
hereinafter referred to as I. N. 81
The organization and general oper-
ations of the Associated Press have
already been set forth in paragraphs
40 to so, inclusive. Those Of U. P.
and I. N. S. are set forth in the four
following paragraphs.
50. U. p. is a New York corporation.
organized for profit, formed In 1907
by uniting three comparatively small
news agencies which had been oper-
ating for some years prior thereto
under an agreement for division of
territory and exchange of news. At
this time, when A. P. was spending
approximately $4,000, 900 for news
gathering, U. P.'s entire staff con-
sisted of IL persons, including the
office force. Twenty years after It's
organization, approximately 30 per
cent of U. P.'s clients were afternoon
papers and today a very high per-
centage OF it's newspaper subscribers
are afternoon papers. At the pres
ent time every exclusively morning
paper which U. P. serves and which
has a daily average circulation OF
over 25,000 is, with one exception, /,
member of the Associated Press and
receives its news service. The one
exception is the Chicago Sun, to
which reference will later be made
63. In 1941 U. P.'s total expendi,
lures devoted to the actual gather
ing of news and it's distribution tt
newspapers amounted to $5,929, ,638
1t employed a total of 1886 full.
time employees distributed among it.
principal Office in New York CITY
and "a domestic and foreign bu.
reaus. OF its so bureaus located ir
the United States only nine had
staffs OF over 20 employes-62 10.
Gated, in Washington, D. c., and 81
at Chicago, Ill. A total of 438 full.
time employees engaged in reporting
and editing news composed the
staffs of it's "a foreign bureaus
U. P furnishes its news service t.
approximately 900 newspapers in tn.
United States and to numerou.
radio stations and other concerns
1t furnishes no news picture serv.
ice. Its news report supplied each
day in Chicago to morning news.
papers subscribing for its service
consists of 264,40 words, to eve.
ming papers of 126,000 words. II
Washington its news report sup.
piled to morning papers consists o.
800 words and to evening paper.
OF 93,600 words. Approximately 60(
newspapers in the United States arr
obligated to supply U. P. with thu
local news of their respective terri.
tories, but all OF them are free tx
furnish the same news to othel
news agencies.
King Features Service
Merged With ms in 1884.
64. ms was originally furnished
by International News Service, Inc.
New Jersey corporation organized
in 1909 to supply a news service tx
newspapers owned or controlled BY
William Randolph Hearst. In 1934
this corporation was merged with
King Features Syndicate, Inc, .
New York corporation, and since
that time the latter has furnished
ms, operating the news service a.
a separate department of its owr
business. The expenditures of INs
for news gathering and the num-
Der of papers served by it are now
and generally speaking always have
been, less than one-half those OF
| the Associated Press. Because OF
| the relatively limited resources OF
ms, among other factors, news
papers in the larger cities do not
ordinarily regard 1t as qualified tc
furnish self sufficient news serv-
ice, although such papers frequent
ly find 1t valuable as a supplement
tary news service. OF the approx.
mately 300 newspapers published ir
the United States having a daily
average circulation Of over IS 900
there is not single one served BY
ms which does not also receive
A. P. or U. P. news service, or both
Furthermore, of the II American
newspapers under the same owner
ship or control as ms, all but two
receive A. P. news reports and those
r