TIME INC. SAYS MCMANUS WILL SUCCEED GRUNWALD AS MAGAZINES' EDITOR IN CHIEF

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP90-00845R000201210001-1
• Release Decision: RIFPUB
• Original Classification: K
• Document Page Count: 2
• Document Creation Date: December 22, 2016
• Document Release Date: June 11, 2010
• Sequence Number: 1
• Content Type: OPEN SOURCE

Approved For Release 2010/06/11: CIA-RDP90-00845R000201210001-1
WHO'S NEWS
Time Inc. Says McManus Will Succeed
Grunwald as Magazines' Editor in Chief
By LAURA LANDRO
staff Reporter of THE. WALL STREET JOURNAL
.. NEW YORK-Time Inc. said Jason
McManus, Time magazine's managing edi-
tor, will succeed Henry A. Grunwald as ed-
itor in chief of the company's magazine
group and as a board member.
. Mr. McManus, 53 years old, has long
been considered the heir apparent to Mr.
Grunwald, who will
reach the manda-
tory retirement age
of 65 at the end of
this year. Mr.
McManus will leave
the Time magazine
position on May 4 to
work with Mr. Grun-
wald, and will as-
sume the new posi-
tions at year's end.
Time said Henry
Muller, 40, will suc-
eed Mr. McManus
as managing editor
of lime on May 4; he is currently assistant
managing editor of Time and the maga-
zine's chief of correspondents.
Mr. McManus will assume one of the
most powerful editorial positions in the
country. His primary duty will be the over-
sight of Time's seven core magazines:
Time, Life, Money, Sports Illustrated, Peo-
ple, Fortune, and Discover.
Mr. McManus and Ray Cave, currently
corporate editor, the No. 2 post under Mr.
Grunwald, were initially considered com-
petitors for Mr. Grunwald's job 18 months
ago, when they switched jobs; Mr. Cave,
then managing editor of Time, took Mr.
McManus's post as corporate editor.
Mr. Cave, 57, will continue to hold the
No. 2 post under Mr. McManus, but will
get a new title, editorial director. The
move is typical for Time; when Mr. Grun-
wald and Ralph Graves were in the run-
ning to succeed Hedley Donovan as editor
in chief almost a decade ago, Mr. Graves,
then corporate editor, lost out but was
given the editorial director title.
Closer to Grunwald
Although Mr. Cave has a reputation for
being among the company's top editorial
talent, lime staff members said Mr.
McManus was much closer to Mr. Grun-
wald and to top Time management. Mr.
McManus's style is also considered less
confrontational and more diplomatic, Time
staff members said.
Mr. McManus takes his job as Time is
undergoing some wrenching changes in its
editorial operations. During most of Mr.
Grunwald's tenure, the company's edito-
rial operation was considered sacrosanct;
no expense was considered too high and
the company had a reputation as among
the most generous and patriarchal pub-
lishers. But over the last year, Time has
undergone a series of editorial cutbacks in
the face of soft advertising revenue and
rising costs, and hundreds of jobs have
been eliminated.
Mr. McManus acknolwedged that Time
is in a "new era," and "like most corpora-
tions in America is operating in a different
environment." He added, "one of the tests
we face is how to maintain quality at a
time when we have to operate more eco-
nomically." He said that the company's
cutbacks are a "nitty-gritty job" but "im-
mensely important" to the company's
health.
Mr. McManus also will be overseeing
an editorial operation with greatly cur-
tailed development activities. Under Mr.
Grunwald, Time spent lavishly on develop-
ment projects, and tested more than a
dozen magazines that never came. to frui-
tion, including Picture Week, Quality, Lei-
sure, and Home Office. Time recently an-
nounced plans to dismantle the magazine
development group responsible for most of
the projects.
"We can't develop magazines at the
same time we are cost cutting," Mr.
McManus said. "But I think we are com-
mitted to finding new opportunities and we
will return to magazine development and
acquisitions." He added, "Time is deter-
mined to grow the magazine business."
Time's magazines are still the largest
single contributor to the company's reve-
nue (41% of the 1986 total) and operat-
ing profit (43%). However, 1986 operating
profit fell 8% due to a $32 million charge to
cover staff reductions and higher develop-
ment expenses for the test of Picture
Week, which the company decided not to
launch. While advertising revenue rose 3%
and circulation revenue increased 10%-
primarily because of price increases-the
number of advertising pages declined for
the group last year.
Discover magazine has yet to turn a
profit and rumors persist that the company
will close the general-interest science pub-
lication. A Time spokesman denied the re-
ports, saying the magazine is showing im-
provement in both circulation and adver-
tising.
Mr. McManus, Time staff members
noted, differs in both background and style
from Mr. Grunwald. Although he has held
a wide range of reporting and editing posts
in the U.S. and abroad since joining Time
Inc. in 1959, he has held the Time manag-
ing editor's job only since September 1985,
while Mr. Grunwald was in the job for al-
most a decade.
The staff members noted that Mr.
McManus hasn't had time to make much
of a mark in the job, and many have spec-
ulated that he was only given the post to
provide him with the credentials to suc-
ceed Mr. Grunwald. Mr. McManus has
also kept a considerably lower profile out-
side the company than his predecessor.
Elder Statesman
The Vienna-born Mr. Grunwald, who
held his first Time Inc. job at 17, became
managing editor of Time in 1968, corporate
editor in 1977, and editor in chief in 1979.
He has cultivated a reputation as some-
thing of an elder statesman of journalism,
continuing to write columns and leading
Time correspondents on such interviews as
the first ever granted by Soviet leader
Mikhail Gorbachev. He was also responsi-
ble for such projects as Time's "American
Renewal" series, during which all of
Time's magazines featured the same
theme; the project received mixed reviews
from media critics.
Through a spokesman, Mr. Grunwald
said he has been too busy to decide what
his next move will be.
Mr. Cave, who, like Mr. McManus,
joined Time Inc. in 1959, is credited with a
number of major changes in lime maga-
zine's look and content, including an in-
crease in the number of color pages and
the introduction of several new depart-
ments.
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 Approved For Release 2010/06/11: CIA-RDP90-00845R000201210001-1
Interest Rates Fall and Bond Prices Rise
As Dollar Firms After Baker Comments
MARKETS
By Tom HERMAN
Staff Reporter of TIE WALL STREET JOURNAL.
NEW YORK-A stronger dollar helped
spark further declines in interest rates yes-
terday.
The latest 30-year Treasury bond's yield
fell to about 8.2% late in the day from
8.28% Wednesday and as much as 8.55%
earlier this week. Prices of some actively
traded Treasury issues surged more than
3/4 point, or $7.50 for each $1,000 face
amount.
The bond rally began in the Tokyo mar-
kets after a speech here Wednesday night
by Treasury Secretary James Baker. Mr.
Baker's remarks were interpreted by
traders as a clear signal that the Reagan
administration , finally is prepared to take
steps to help bolster the dollar in the cur-
rency markets. Previously, many analysts
thought the administration was hoping the
dollar would drop further on the theory
that would help U.S. exporters and defuse
protectionist pressures in Congress.
"Baker's remarks show he feels the dol-
lar has fallen far enough," said Bruce R.
Lakefield, executive vice president at
Shearson Lehman Government Securities
Inc. "And that is very positive" for the
bond markets. Asked how much of yester-
day's rally he would attribute to Mr.
Baker's speech, he replied: "I attribute
everything to the Baker speech."
In a speech at the Japan Society's an-
nual dinner, Mr. Baker said the seven ma-
jor industrial countries "now believe that
our currencies are within ranges broadly
consistent with economic fundamentals,
and all of us favor stability around.current
levels." He specifically mentioned the yen-
dollar rate.
Mr. Baker didn't give any details or say
how he hopes to achieve stability in the
dollar. But he did say: "In this connection,
let me make one point clear: a further de-
cline of the dollar against the other main
nondollar currencies could very well be
counterproductive to our goal of higher
growth in those countries." He pledged
that the U.S. will "cooperate closely to fos-
ter stability" of exchange rates.
Some skeptics who attended Mr.
Baker's speech retorted that there is a big
difference between international coopera-
tion and success. They insist that the U.S.
trade deficit will remain so large for so
long that the dollar is destined to drop fur-
ther no matter how much intervention is
done by central banks.
Moreover, some investment strategists
still question whether the Reagan adminis-
tration stands solidly behind the policy out-
lined by Mr. Baker. "There's no unanimity
(within the administration) on the need to
go all out to peg the dollar at current
levels," contended Hung Q. Tran, director
of fixed-income research at Deutsche Bank
Capital Corp. in New York.
But bond traders reacted enthusiasti-
cally. Shortly after Mr. Baker finished his
speech, one trader quickly left the ball-
room to execute a trade in the Tokyo mar-
ket. "This speech was very bullish" for
bonds, he said.
The Federal Reserve System late yes,
terday reported that money-supply growth
slowed sharply last month. The news had
been widely expected and thus had little
impact on the credit markets. But some
economists contend that the money sup?
ply's abrupt slowdown over the past few
months could . be a hint that slower eco
nomic growth lies ahead, increasing the
odds for lower interest rates.
All three measures of money supply,
Ml, M2 and M3, registered anemic growth
in March. The M2 and M3 figures now
have fallen just below the lower end of
the Fed's target range of 5.5% to 8.5%
growth this year. The Fed doesn't have a
target for Ml.
(Federal Reserve Statistics on Page 231
The M2 measure grew at an annual rate
of only 1.7% last month and has expanded
at a 5.1% clip from its average level dur-
ing last year's fourth quarter. The M3
measure grew at a 1.9% pace last month
and has expanded at a 5.4% rate from last
year's final quarter.
The Fed said the M2 measure rose only
$4.1 billion last month to a seasonally ad-
justed average of $2.8256 trillion, while M3
rose $5.5 billion to $3.5256 trillion.
The Ml measure, which fell slightly
during February, rose at a 3.3% annual
rate last month. During the week ended
April 6, the Ml measure rose $1 billion to a
seasonally adjusted average of $739.8 bil-
lion. Although M1 has showed little growth
lately, it expanded at a 15.2% pace last
year, far above the Fed's target for that
year of 3% to 8% growth.
Yesterday's bond market rally was the
second in a row following a severe slump
that began March 26. The Treasury's 7%%
bonds due in 2016 rose yesterday to 92 7/32
from 91 13/32 Wednesday. The govern-
ment's 7%% notes due 1996 advanced to
95% from 94 22/32, while the yield declined
to 7.99% from 8.06%.
An index of long-term Treasury bonds,
compiled by Shearson Lehman Brothers
Inc., rose 7.88 points to close at 1336.84.
That followed Wednesday's surge of 15.27
points, which was the largest one-day in-
crease in almost six months. The index
yesterday hovered between 1332.71 and
1339.54.
The federal funds rate yesterday de-
clined to an average of 6.27%, according to
an estimate by Fulton Prebon (U.S.A.)
Inc. That compared with an average of
about 6%% earlier this week.
Rates also fell on short-term Treasury
bills. The latest three-month Treasury bill
rate declined to 5.56% bid from 5.66%
Wednesday, while the latest six-month bill
fell to 5.82% from 5.93%.
SEC Moves to Correct Abuses by Firms
In Price Markups on Zero-Coupon Bonds
By BRUCE INGERSOLL
Staff Reporter of THE WALL STREET JOURNAL
WASHINGTON-The Securities and Ex-
change Commission took the unusual step
of spelling out how its policy on securities
price markups applies to zero-coupon
bonds.
investigating other zero-coupon cases.
As the number of zero-coupon bond se-
curities proliferate, the SEC staff has 'be-
come increasingly troubled about exces-
sive markups and inconsistent methods for
calculating markups. Generally, a markup
is the riiffaranra hatwoon tha nuwnh,en
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