Hitting the Iceberg

Last week the harassed Curtis Publishing Co. capped a year of bad news with the bleakest news of all: the company lost a staggering $7,624,000 in the fourth quarter of 1964 as compared with a $1,400,000 profit for the same period in 1963. Total 1964 loss: $13,947,000, second largest yearly deficit in Curtis' history, surpassed only by 1962's $18,917,000. The company added that it would postpone April interest payments on its $9,970,000 outstanding debentures and was considering a recapitalization of its preferred stock.

Curtis announced at the same time that Matthew J. Culligan, who had been ousted as president and chief executive officer last October after being charged with mismanagement by revolting editors, would now step down as chairman and director. He will, however, continue to draw his $150,000 salary while working on special assignments: preparing a company history, scouting for broadcasting possibilities. Quipped Culligan, who had once confidently predicted that Curtis would be out of the red in 1964: "I guess I should say that I long for the obscurity I undoubtedly deserve."

Lest anyone think he had succumbed to uncharacteristic modesty, he added: "What has been overlooked is the tremendous job I did from July 1962 through December 1963. I saved the business. Somebody asked me, was I prepared for the revolt? Was the captain of the Titanic prepared for hitting the iceberg? I am gratified to have been able to make a contribution to Curtis during some of its most difficult hours. It is in the best interests of all that Curtis now be given the time without harassment to continue to improve its magazines and market them more effectively to advertisers and the public."

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