Monday, Feb. 03, 1941
A. P. Turns Semi-Pro
Associated Press was incorporated in New York in 1900 under a law providing for the organization of "fish & game" clubs, has long been proud of its unique status as a non-commercial news agency, sharing dispatches among its member newspapers. But World War II, with its intensive news coverage, has been a heavy drain on A. P. coffers, has forced its directors to dig down deep in their reserves to cover expenses.
Last week A. P. turned semi-pro by setting up a frankly profit-making subsidiary, Press Association, Inc., to sell A. P.'s services to nonmembers. Wholly owned by A. P., P. A. will be a member of the parent body, will not affect A. P.'s legal standing as a sportsmen's club.
Magically open to A. P., through its subsidiary, will be a host of money-making activities which were hitherto closed to it. P. A. can sell news for radio broadcasts, can supply special reports to public speakers, writers, magazines, can write radio shows and motion-picture scripts. One of its first jobs will be to handle revenues from Oliver Gramling's book. AP The Story of News (TIME, Nov. 4), which was written on assignment for A. P., has sold some 20,000 copies since October, is now being dramatized for radio.
Embarrassed was U. S. Citizen Edward Kennedy, covering Britain's drive through Libya for Associated Press, because he did not know whether under the Neutrality Act he could legally take prisoners of war. Mistaking his correspondent's uniform for that of a British officer, several groups of Italians had tried to surrender to
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