SYDNEY NEWSPAPERS.

New Zealand Herald, Volume LXVIII, Issue 20795, 11 February 1931, Page 11

SYDNEY NEWSPAPERS.

THE ASSOCIATED GROUP.

REORGANISATION SCHEME.

DRASTIC CURTAILMENT.

13y Telegraph—Press Association—Copyright. (Received February 10, 8.30 p.m.)

SYDNEY. Feb. 10. An extraordinary meeting of shareholders of Associated Newspapers, Ltd., held in Sydney to-day. approved a scheme of> reorganisation by which the Daily Guardian and the Daily Pictorial, both morning newspapers, are to disappear and a new paper, to bo known as tho Daily Telegraph, is to be established as a broadsheet, similar to tho former Daily Telegraph. The new paper will combine the main features of the two journals, which are being suspended.' Tho Sunday Pictorial is also to disappear and will bo merged into the Sunday Guardian. The latter will be under the control of tho Daily Telegraph staff.

No decision has been reached concern ing the futuro of, the Evening News.

Associated Newspapers, Ltd., was constituted toward the end of 1929, with a nominal capital of £5,000,000, to amalgamate Sun Newspapers, Ltd., and S. Bennett, Ltd., the proprietary of the Evening News. It also acquired, by the issue of shares and certain cash payments, the Guardian and the Daily Telegraph businesses. Last April, it was stated that tho issued capital was about £3,500,000. The company has published two evening papers, the Sun and the Evening News, and two morning papers, the Daily Guardian and the Daily Pictorial, and also Sunday papers and several weekly magazines.

Last week, shareholders in Associated Newspapers were informed by circular, issued by the board of the company, that " the unfortunate and unprecedented economic conditions existent in Australia at the present time, which have not only led to enormous increases of cost in the production of the company's newspapers, but have at the same timb caused serious loss of revenue, have naturally caused the directors rnucli anxiety. " For many weeks past the board has been carefully examining the position and exploring every avenue in which savings might bo made and revenue increased. After most careful consideration of every aspect, the directors have come to the conclusion*that some definite form of reorganisation of their publications is imperative if the position and resources of the comnanv are to be maintained and strengthened." The circular stated that a scheme to effect such reorganisation had been formulated by the directors and would be submitted to shareholders at a special meeting (which was held yesterday). At the same time steps would be taken to alter the company's articles of association, in accordance with a promise made lo the Stock Exchange when the company's shares were listed.