The E.W. Scripps Company | Postwar Growth
Postwar Growth
After World War II Scripps Howard's sales grew dramatically, from nearly $50 million in 1940 to more than $100 million in 1948 and $140 million in 1952. Profits, however, were not increasing. Due to the rising cost of labor, newsprint, and printing machinery, profits were hovering around $10 million, according to Forbes magazine. In 1953 E.W. Scripps's grandson Charles E. Scripps became company chairman at the age of 33, and Roy Howard's son Jack R. became company president at the age of 42. By this time Scripps Howard had 19 newspapers with a total circulation of four million. The company was also expanding into broadcasting and owned radio and television stations in Cleveland and Cincinnati as well as in Knoxville and Memphis, Tennessee. The Scripps family trust still owned nearly 75 percent of the company. Management was decentralized with general operations conducted in New York, editorial policy in Washington, and finances in Cincinnati.
In 1958 United Press merged with the Hearst Corporation's troubled International News Service to become United Press International (UPI). Hearst gained five percent ownership of UPI, but most former International News Service employees were laid off. Also that year Scripps bought the Cincinnati Times-Star and merged it into the Post, giving the company control of all of Cincinnati's daily newspapers. The Cincinnati Enquirer—which had been acquired in 1956—was carefully kept separate from the other papers to diminish possible charges of a monopoly. In 1964, however, the U.S. Department of Justice accused Scripps Howard of owning a monopoly and ordered it to sell the Enquirer. The Enquirer was far stronger financially, but the trust's lawyers advised the firm that it would be better off selling it, rather than trying to sell the Post.
In the meantime, Scripps continued building its broadcast division, buying WPTV in West Palm Beach, Florida, for $2 million in 1961. In 1963 the broadcast properties were taken public under the name Scripps Howard Broadcasting Company. The initial offering quickly sold out, leaving the E.W. Scripps Company with two-thirds ownership.
Roy Howard died in 1964. One of the problems Jack Howard—who had succeed Roy Howard as president in 1953—faced was that the company was still run for the beneficiaries of the E.W. Scripps trust, and the trustees' lawyers sometimes had a large role in significant corporate decisions. More importantly, with the rise of television after World War II, evening newspapers across the United States found their circulations declining: people read the newspaper in the morning and watched the news on television in the evening. In addition, management of Scripps had become so conservative that critics charged it had no long-range plans and did little beyond preserve its assets. More and more Scripps newspapers took advantage of a law that allowed newspapers in danger of failing to partially merge with stronger rivals, keeping only editorial departments separate. By 1980, 8 of the 16 remaining Scripps dailies were in such arrangements, a higher percentage than any other major chain.
In 1976 Jack Howard retired as president of E.W. Scripps but remained a director of E.W. Scripps and chairman of Scripps Howard Broadcasting. Edward Estlow became E.W. Scripps's first CEO who was not from the Scripps or Howard families; he had been the chain's general business manager.
Scripps slowly began to change in the 1970s. In 1977 the company bought for $29 million the 90 percent of Media Investment Co. that it did not already own. Media Investment had holdings in some of Scripps's newspapers and radio and television stations. The purpose of acquiring the investment company was to permit employees to own shares in the diversified E.W. Scripps Company.