Merger, Miami-Style

If it works, the complex arrangement that started last week between the Miami Herald and the Miami News may well furnish newsmen with a new phrase--"Miami merger," meaning one that aims to prevent an actual merger.

For several years, the thriving morning Herald, the country's No. 5 paper in total ad linage, has steadily outstripped the afternoon News, Miami's only other daily. While Herald circulation rose to 381,000, the News slipped to 119,000. But Herald Publisher John S. Knight, president of the Knight chain, did not want to buy the liberal-leaning News; and News Publisher James M. Cox Jr., whose six-paper chain includes the Atlanta Constitution, was loath to fold his Miami outlet.

Under the new setup, the Herald will take over the News's entire business operation and absorb many of its advertising, circulation and production employees. The morning paper will print the News on Herald presses, sell its ads and distribute it. The only separate operation will be the two papers' editorial staffs. At first glance, the News may seem to be merely a Herald subsidiary. Not quite. While receiving a management fee as the News's business "agent," the Herald will turn over all News revenues to Cox, who retains ownership. Editorially, the News remains a wholly independent paper.

Both papers hope to boost profits by more efficient use of the single printing plant, and by offering advertisers combination rates. The News expects that the savings will be enough to put it in the black. The Herald will get a clear field on Sundays, since the Sunday News has been folded. If the Miami merger succeeds, the big gainer will be the city. The alternative is a one-paper town, which Cox and Knight are trying to avoid. Each publisher feels that Miamians should hear more than one editorial opinion.

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