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R E S O L U T I O N
{1?^ ids
No. 81 - Ga
A RESOLUTION OF TIME CITY COMMISSION OF
5kr ? `? ' :; i,l} THE CITY OF CLEARWATER FLORIDA INDICATING
,,wb,r ?;? •F, ; ,. ; ;., THAT IT I-iAS NO OBJECTION TO THE MERGER
X?k=FT`;. IIETW.EEN VISION CABLE COMMUNICATIONS, INC.
AND THE NEIVEOUSE GROUP INC.
,i;?'?.yi\` •:' WHEREAS, Vision Cable of Pinellas, Inc, presently holds the
y„r,•e:r cable television franchise in Clearwater; and
6;t,`'} WHEREAS, Vision Cable Communications Inc. , the parent corporation
;:.:rla1:.1{. executed a Guaranty Agreement dated February 26, 1980, whereby it
; y guaranteed the performance of Vision Cable of Pinellas Inc, pursuant to
Ordinances 2084, X085 and 2086; and
WHEREAS, the merger is proposed between Vision Cable Communica-
tions Inc, and the Newhouse Group Inc. whereby the Newhouse Group Inc, will
acquire the controlling interest in Vision Cable Communications, Inc.; and
w.i C??r''ysLi
WHEREAS, the City Commission has been notified of such proposed
merger and request has been made to consent to the merger pursuant to a
letter dated June 1, 1961, a copy of which is attached; and
Mt {:.
r,? .fit+Zf WHEREAS, investigation of such proposed merger does not disclose
st >?'"? any reason why the City Commission should refuse to give its consent; and
Fhr.,Yij>. WHEREAS, such merger will not hamper completion of the service
A in Clearw-a.ter or result in the public receiving an inferior quality of service;
T r 4,
,r and
WHEREAS, such merger will not result in any financial disadvantage
to the franchise and its operation in Clearwater now or in the future; and
WHEREAS, the Newhouse Group Inc, has agreed to be responsible
under the guarantee executed by Vision Cable Communications, Inc. :
NOW, THEREFORE, BE IT RESOLVED BY THE CITY
COMMISSION OF THE CITY OF CLEARWATER, FLORIDA,
IN SESSION DULY AND REGULARLY ASSEMBLED, AS
FOLLOWS;
1. That the City Commission of the City of Clearwater, by reason
of the above-factors hereby expresses its consent to the merger that
'Reno 1,81-60
1111 W y yy .. -.
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will permit the Newhouse Group Inc. to acquire control of Vision Cable
of Pinellas Inc. through merger with Vision Cable Communications Inc.
which merger transaction is detailed in the letter dated Tune 1, 1951,
including all attachments, attached to this resolution.
2. That this resolution shall become effective immediately upon
its adoption.
PASSED AND ADOPTED this 2nd day of .July A. D. , 1981.
yor-Commi'ss' er
Attest:
City Clerk,.
- 2
Res'o'• 81-60
U2/81
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'It rurrimission
EMORAN UU;t Prim
City Attorney
Ci:Y CAR 0 5 1581
T0: City Co=ission
FROM:, Mayor Charles F. Lecher
SUBJECT: Vision Cable Communications, Inc;
DATE: June 3, 1981
Today I received from Tarn Johnson the attached information
relating to Vision Cable Communications, Inc. I have for-
warded it to the City ;tanager and asked him co provide to
the City Co=aission his recommendation on the proper response'
by the City of Clearwater.
:Rasa'. 81-60'
,.1 t v' d!.ii. :%?'r. ,..Jir,': ... rt.i ??? :C.. .::^,' •)7,t :':'i !,",:T?')..`sSiy Y.t it :y?'A, yk 49?'.'7:f".. l }?}
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Vision Cable Communications, Inc.
Mayon and Commissioners
City of Clearwater
City Mall
Clear;vater, Florida 33515
Gentlemen and Mesdamez:
1 07
110 East 591n Street
New York Gty 10022
212 • PLAza 9 6 1500
June 1, 1981
As you know, vision cable Communications, Inc. ("Communica-
tions"), controls Vision Cable of Pinellas, Inc. ("Pinellas"),
your cable television franchisee, through ownersHip of 88.6%
of the equity ok Pinellas. The balance of the equity o.1
Pinellas is owned by eight local shareholders.
I am pleased to notify you that Communications plans to merge
with a subsidiary o` The' Newhouse Group Inc. ("`7ewhousa").
Control of Pinellas, you: :ranchisee, will, in one sense, not
be changed, in that Communications will continue to awn 88.635
of the equity of Pinellas. The control o,, Communications,
however, will be changed in that it will, after the merger,
be controlled by Newiouse. Newhouse has expressed in writing
its intention to continue the employment of managers, chief
technicians, and other personnel involved in the operation
of Pinellas and other cable systsms controlled by Communica-
tions. It has also stated its desire to retain tna ton manage-
ment of Communicaticns. The proposed merger is described in
the enclosed .•?emorandun of Plan and Agreement of Merger. This
notification is given pursuant to Communications' Guaranty to
the City of Clearwater.
Newhouse has been a pioneer and a major factor in the corimunica-
tions innustry, operating t`:roughout the country in a decentral-
ized structure which encourages the continuity of local in-
volvement in each community served. The Newhouse operations
include cable television systems with about 350,000 subscribers,
radio stations, and a microwave communications service. In the
print media, Newhouse owns 29 newspapers, scm3 well known
:magazines such as :louse & Garden and Vogue, and the book publisher
Random House. To tell you more about Newhouse, I have enclosed
for your review, an article about Newhouse that appeared in the
October 29, 1979 issue of Forbes Magazine.
Newhouse is a privately owned concern that is controlled, solely
by members of the Newhouse family. Accordingly, it dces not
publish an annual reports in the We ;canner as a publicly traded
company. Therefore, we are not in a position to of=er for your
Reso 181-60
7/2/81
.fit yy • f f ,!.i' F"?.?`,::?'
. - •,S ` '
{?'Snht"??Nr'?'at?1Y"5 e• ?? tl`4' '???i;. Vii:°-+tly ?s.` ..
off!
e
ATKA&
t
City of Clearwater -•2-• June 1, 1981
inspection the most recent annual report of Newhouse. We
are enclosing herewith, however, a copy of a letter from
the Chemical Bank attesting to the financial soundness of
the Newhouse family and the companies that it controls.
We trust that the enclosed items furnished you herewith
will be acceptable to you and hope that you will respect
the "desire of the",lewhouse family that the details of its
financial affairs remain private.
I genuinely believe that the combination of the Newhouse
ownership, with its financial prowess and breadth of expo-
sure in the communications industry, with our managers and
operators will be of substantial advantage to the operation
of our cable system in Clear-dater and to the City itself.
Your early attention to this matter would be greatly appre-
ciated. To facilitate this, I have taken the liberty of
enclosing a draft resolution which may be of some help to
you in considering this matter. I should also add that
Newhouse will, of course, guarantee the performance of
Pinellas upon, cons untnation of the merger, which guaranty
is also enclosed. If you have any questions, please let us
hear from you,
very tzu} you-
Sidne?r R. Knafe
Chairman of the Board
enc.
SRK/hlb
5
'7/2/81
:- Reno '181-60.::,-
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MEMORANDUM OF PLAN AND AGREEMENT OF MERGER
Vision Cable Communications, Inc. ("Vision Cable"),
certain principal stockholders of, Vision Cable ("Majority
Stockholders") The Newhouse Group Inc. ("TNGI") and SOC
Cable, Inc. ("SDC") have, pursuant to Section 251 of the
Delaware Corporation Law, entered into a Plan-and Agreement
of Merger dated February 28, 1981 (the "Agreement"), in
which (subject to the terms and conditions set forth there-
in) SDC would merge with and into Vision Cable (the "Merger"),
and Vision Cable would be the surviving corporation. The
following is asummary of the principal, provisions of the
Agreement without reference to price.
DESCRIPTION OF PARTIES TO THE MERGER.
Vision Cable, principally through operating subsid-
iaries, owns and operates cable television systems in six
states.
SDC is a wholly owned subsidiary of TNGI, which in turn
is a wholly owned subsidiary of Advance Publications,' Inc.
Advance is owned and controlled by the Newhouse family,
which has'extensive operations principally in the newspaper,
magazine, radio and cable television businesses.
CONVERSION OF SHARES OF 111SIO.I CABLE. AND SOC.
At the time the Herger becomes effective, all shares of
Vision Cable stock outstanding before the Merger would be
converted into the right to receive cash and notes of TD[GI,
and each outstanding share of common stock o! SDC will be
converted into and become one share of common stock of
Vision Cable, each of which will be owned by TNGI. As a
result of the foregoing, Vision Cable will become a wholly-
owned subsidiary of TNGI.
EFFECTIVE DATE.
The effective date of the 'Merrier is scheduled for July
31, 1981. However, such date may be accelerated or postponed
(but not to a date after January 15, 1982) as may be necessary
to meet all the conditions Of closing as set forth in the
Agreement, the principal ones of which are summarized below.
Reso 181-60.'
V.-
7/2/81
?'Lq??'.T?`-?n rr??`,?,??,?.?,;?r,xcn!F,;?FixaY?t?n>:x?7•???;
ft •
CONSENTS AND APPROVALS.
,
4 The Consummation of the Merger is conditioned upon the
? t`,??nk LL> •.
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receipt by the parties of all required consents and approvals
from federal, state and local governments or regulatory
:.•? ?wE:?;n:' agencies. Such consents and approvals include consents by
municipalities to the transfer of control of franchises, the
y??sx, 1
MI
" approval o•f one state regulatory agency to the transfer of
r
#d0.' ;
A
ryh,
control of Vision Cable, and the approval of the federal
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o
ran
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enses
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ommun
ons
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iyc to the receipt and transmission of certain television signals.
j} The consummation of the :lerger*is also subject to the filing
of a Pren%lerger :Notification Report with the Department of
i
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i
i
i
ce, Antitrust D
sion, and the
Just
v
ederal Trade Comm
ssion,
eriod of time after such fili
d the e
iratio
of the
p
an
xp
n
ngs
have been shade during which either such agency has the right
'
1 to object to the Merger.
l T
I
r IONS AND WARFAA
REPRESENTA
TIES.
3 ?.1 The agreement contains certain representations and
warranties of Vision Cable and its subsidiaries ("-ICC") and
the Majority Stockholders, relating to (i) the stock owner-
ship, organization and standing, capitalization, and finan-
cial status of VCC, (ii) the compiiancev of VCC with laws,
' rules and regulations of federal, state and local govern-
_. : mental bodies, and with the terms and conditions of CATV
franchises, (iii) data concerning its cable systems, and
1 (iv) the continued operation in the ordinary course of VCC's
, business. The agreement also contains representations and
t warranties of SDC and TNGI relating primarily to the power
•t and authority of SDC and TNGI to enter into the Agreement
3 and consummate the Merger.
CONDUCT OF VCC'S SUSZN4SS PSNDI'NG CLCSI`1G
The Agreement contains covenants of VCC and the Majority
Stockholders to the effect, among other things, that the
business of VCC, including the construction of new cable
plant, will be carried on in the ordinary course, and that
VCC will notify TNGI and SDC of any material change or
unusual development in the business of VCC, and that VCC
will use its best efforts to obtain ail necessary consents
and approvals to the :Merger. The Agreement contains covenants
of TNGI and SDC to the effect that each will use its best
efforts to obtain all required consents and approvals to the
Merger.
.. 2 _
Resa #81-6Q,
7/2/81
r
I
A Resolution of :don-abjection to the Merger
of Vision Cable Communications, Inc. and
a Subsidiary of The :Newhouse Group Inc.
WHERCAS, Vision Cable of Pinellas, Inc. ("Pinellas"),
i
is the cable television franchisee in Clearwater; and
wE'IURE-sue, The Newhouse Group Inc. ("'Newhouse") , proposes
to acquire control of Pinellas through a merger between the
ultimate garent corporation of Pinellas, Vision Cable Communica-
tions, Inc. ("Vision"), and a subsidiary of :Newhouse, as set
forth in a letter of notification from Vision to the Commission
dated June 1981; and
WHEREAS, the Commission has been requested to express its
lack of objection to the proposed transaction;
N44, THERrsORE, BE IT RESOL1 ED that th-- Commission hereby
expresses its lack of objection to the proposed merger that permits
Newhouse to acquire control of Pinellas through the merger of
Vision and a subsidiary of Newhouse, all as set forth in the
letter of notification from Vision to the Commission dated June ,.
F
19 81.
Passed this day of June, 1981, effect'?ve
APPROVED:
Attest:
City Clerk
;favor
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fr
I Clerk of the City of
,
Clearwater do hereby Certify that the foregoing Resolution
No. was duly and properly adopted by the.
Commission of the City of Clearwater at its regular meeting f
held on June , 1981.
`
City Clerk
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CONDITIONS TO CLOSI.tG.
Consummation of the Merger is subject, among other `
things, to the obtaining of all federal, state and local
consents and approvals as gene=ally described'above, Other.
conditiohs o; the Merger include the approval, o` the Agree-
ment by the shareholders of Vision Cable and of SOC, the
non-occubrence of any event materially adverse to the
business of VCC, or of material litigation challenging the
validity of the agreement, or seeking to enjoin oz delay the
Merger, or demanding from any party to the Agreement the '
payment of damages in connection with "he consummation of
the Merger.
MANAGEMENT OF VCC ALTER THE CLOSING IS CONSUMMATED.
TNGI has expressed in writing its intention to continue
the employment of managers, chief technicians and other
personnel, involved In the operation of VCC's C?TV systems.
It has also indicated its intention to retain all or sub- z
stantiall.y all of the too management of Vision Cable,
VISION CABLE COLMMUN_ICAT=O?IS, INC.
s
By
,
THE NEWHOUSE GROUP INC.
-7
HY:
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712/81
" t`Resd,'81-60
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L'U17X71Y111UJ1 1!'f7G'1t lLJ4' ?)C111'1G11'C.v is ztifone? 777e I ltt-% ,tit utter. utuh,'re.l R+? .t ga ttttl . rl
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N e I I b o t . i s e den i iJ Irrt'sl to s g+,lper 111111, I110
.,.6milmd by
the Nrt4'i1ouw lanitiv ,rr is) titt", tltev
?
•
? corttrrll. It this is nut thv uu,.t v.tlu.thic
private corporate prrrpc•rty in the roun•
try, it is certainly rt,,;ht up arriongt the
most valuable.
5tnce the death ,+f ftiundcr 5.1. New-
__ 'vst, his ,sons, Si, i
huurt Sr. last
ha
and i7rmald, .;[l, have been the own chief
executives of the ,Ncµhnusc operations.
Eloth an .light, s4ift•spokc+t men likc
their father, but there err au
hf
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Si
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.
, yout
twcen t
em,
to all in
orma
1'34-ing man with a taste for the arts,
Donald is more rig-rimus and ptecise, by
reputation a newspaper executive who
llvcs chiefly for the newspapers.
?IctvS n{ old 5am'ti ticatti r,,u.r':.f•.. .•
•r-' By Jefferson Grigsby "You Know, 51 `l'tv11tiusc mays dter 1
4 thou,ghtiul pause, "you're not going; to invt,•-mount hankers and arqu,?tt,,,tt•
minded corporate vxccutivcs droilling.
Srt--um.- t-. in, in his un- find any Citl-ten Kane here." Hut`they needn't buther. Any prospect of
protentintis offices in the Conde Nast Yet If the Newhauses have never at going public is "nonexistantSi says--
building, Samuel 1. ISO Newhouse Jr. is tained the power or the notoriety of "Cher- is no possibility of tt," His father
waiting Inr his brother Donald, who has Hearst, they have built a newspaper em• saw to that; for more than -10 years, he
been delayed in Manhattan's lousy cross- pipe that puts Hearst's in the shadow. had been transferrini; piecrs of his prop.
town traffic. He makes some small talk This year, ttiewheuse's 29 newspapers, esttcs to his family, Undi:r his will, 990
with a Ftaoi :. reporter about a few the 20 L'.S. and overseas magazines of its nonvoting shares of the I,0W shatcs on '
haunting; lines from Citizen ,Knim,' the Conde Nast subsidiary, and its broadcast Advance Publications, Inc., holding cam.
great uld Orson Wciles film inspired by and cable TV operations will probably pany for his propcitie?, will be divided
the life of the laic William Randolph gross about S1.2 billion and earn from among his heirs. A portion g;ut,°s it) his
Hearst. It prompts him to reflection' 5130 million to 5140 million in aftertax widow, Mitzi, a portion will berLdecrned
•y,:,•,rhs•uCn,r?,tnv,±lrlr, '7k+?t,r,tn."orrh•mo[wI profits---Second among U.S. newspaper out of corporate cash by Advance to pay
(mv,4w fr,>i'tn WA rY't15rl,1VIq?1N4TtUJ,'f,f'r'UIf chains only to Times Mirror Co., accord. estate taxes and a pornon gars to rril+ta
th-hart' mid- rfr;rrtllevi Herr. rlrre so rt. we,ampArn' Ing to analyst 1, Kendrick Noble of Paine for Si's and Donald', six children. The tcn
l'rrrhnt'rrt. wilriff adA4r',rn,Is girt urrtttn:rmalfn?,t Webber Mitchell Hutchins, in both r^.., evitilg shares of Advance stock through
of We w , •14. hrlrtn Va• urt, iuHlvltt n u/nrejkttwol enues and earnings.
I wrrr rue !•w f lr urr,' ,hrlnr! Ur tlttrfrt v4• rrr (ir tall which Sam `cwhuuse controlled every.
rue, 111 rat n arts„r6 iat`nt 7.Io r ht )mrr lrxu I Ixro ent At current market prices-by the most thing else go in another trust, whose titre
t1. rnA•rr rYJrrrn;rrl conservative gauge--tree Newhouse trustees are his two scans.
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4-1
73
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ti'irrr,tatcYc,?'t:t?pr rueCbafrtecrr+1vs:1[.Veer),nrc+? lloftiand hiscr IN-rfalulrl
RurtnGtg a btlLton•datlar earparnttan enfih a coalition that fa half early Rothsohald, half cormer afore.
Ito FOK3Ei.OCTU9En.9. 1979
Reso #81-60
7/2/81
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153
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~• 'r 0
Will.% and dncllmcnt? r,ilpit,v tilt hlr'
ratan helot , dixpoK% Calt the t,imlly Imm;
together with the p.itti m'll 4nmei Fitt all
thilt the hnuhers have vouu4 cnntrul,
the entire aperatiun is lusk-d upon a f.nn•
ily coalttiun that .ems Its be half early-
Rothschild and half corner xrocery strove.
No fewer than 1 I family members over.
see Newhouw, each with his own turf.
Says Oonald; 111 don'c make: dvd-sions
involving the enterprises other family
members handle and they don't make
decisions un the operations I handle.
There are only a limited number of deci-
sions where we really must consult and
come to a common understanding."
There is considerable autonomy, too,
for the nonfamly operating manage-
ment of Ne,vheuse properties--editors,
publishers and business managers. But
they can expect to see Newhouses fre-
r•?'•-r tJp. The iamily keeps in touch with
tit, va,t empire by ceaseless travel.
Si is chairman of Conde! Nast Publim-
tions and regularly visits two large New-
house newspapem -the St. Louis Ctcbe-
Democrat and Cleveland Plans Dealer.
Brother Donald is chief operating offi-
cer of she Newark, N.J. Sear ceG'ger and
travels to five other Newhouse newspa-
pers in New Yotk and Pennsylvania.
An uncle, Norman Newhouse, 73, lives
in New Orleans, home of the family.
owned Times-Pica rune and Stares-Pont he
also visits Cleveland, as well as proper.
R ennerd, ..
zl;.
r'•,?.?tF •? j.i•.
our equipment
moo:s Lough
operating
requirements
in lumber
and paper mills...
Reso'. #81-60
tip, tit mi,,I,m1yi mid ' hKillia All
oilier uncle, Tvd, 76, vintt% Portland',
tlrl'eFnr /urrrrwrl ,Ind rbrLFnrum, and New-
hr u,t t,,pt'r,. to tip.t. ruffteld Ma+a.
Twit cuusit's. Richard E. Diamond, JA,
,Ind Rohert Mirtin, 42, also .ire active::
Diamond operates the Seaton Island,
N.Y, Adr'urru', the original Newftuu?-
nuwspaper, and visits the eight•newspa-
prt Booth chain in Michigan, its largest
single acquisitions Miron is an executive
,By the most carrservariire
standards. the Neewheuse
properties are worth weLl over
$1 biiLflon. They are unencum-
bered by a penny of debt and.
except for a 49% interest in a
paper mill. I00%-owned by
the Newhouse family or by
trutsrs itw,u cunrroC.
in Newhouse Broadcasting Corp.
Younger Newheuses are scattered
throughout the operations--Norman's
sons Mark, 31, Jonathan, 27, and peter,
291 Si's eldest son, Sam III, 28; and Don-
ald's son Steve, 22. And evert younger
sans.-and daughters--are still in scaoot
but coming along,
The founder of alt this began life as
what we would now call an underprivi-
leged child. S.I. Newhouse Sr. was born
111 1;o9; 111 .1 Ictlt•IneiN tin Nvl, Yrrrk',
Lttkct LoNl tide till 4,n tit IeN,vh'slime.
).;rant. and Lrcw L11 In grnldini; Ptowrtc
ni Ilaywirle, N.I. Hirf:d by a Iawler at S11
week at the igt: oil 16. he tusk over the
faltering Itayitnne l7Proo lnr his emplrrycr
after it-, owner defaulted on r nr,te, and
put it in the black. Having learned the
trade, Newhuusc in 1923 was ready to
buy the Staten Island Advance fns
$98,000.
For the next 54 years he would keep
buying. Thl: targets kept getting bigger-
the Newark Var•la'rlwr in the early
1930s, the Portland Oregonian to 1950,
the G16;.-4h•mue-'r'ut in 1955, Conde Nast
nukue, (deannrrr, tlnrot, £ Garden, ,haste'
rrtUbrlle, klf, lhlr4•'s, rlrrtdemert) Quarter.
A-) in 1979, the New Orleans papers in
1962, the Plurn Omler in 1967.
His largest acqutsttion-and ihv big-
gest up to that time-was the 1'1`6 013(-
chase of Michigan's 8-1•ycar•014 duuth
,Newspapers fcr $305 million. Newhouse
picked up 17Th of Booth's stock from
Whitney Communications, which got it
when Booth bought the Sunday supple.
meet Parade in 1973, and another 8%
from .j charitable foundation. The family
would have been perfectly content with
that, Si and Dan-aid contend. But when
panicky Booth directors mug:'u out the
Times Arror Co, as a white knight,
Newhouse topped the S40•a-share offer
and bour,-ht Booth at Sal a share.
7/2/81
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?`'??,? ?"` :n?""r°i1i?':xtr#,d'?2.y.:,.4«?'?•.a."?a":"'a"z''Y"Y?=?::'?i3?3..L ?,..•? ?M,+?+• ,,;•v?•ir'?' ?,,.`•?iy..•4,•i, j,? i. ?,. ? - ?4?`• - -- ? r,t.»
Tcday, lumber and paper mill opera- take an challenges, anywhere in the
tors demand equipment that can stand world,
UP to shock, at:rasion, corrosion ant: 'Many otter industries took to Rex.
vibration, keep downtime down, nord as a leader in problem solving:
That's why the forest proaucts in- from food processing to construction,
dustry reties on Semora ecuicnent mining anc erlvironmentai control to
and components. It's all engineered to aerospace and petrochemicals.
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n h,i•a craoded .Itehtiv ,utJ nra'%paper% prow hied their ,nlvirrt.RIntl lineage to 1111: last
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.:.i,l, it out hir alrno"i tsar year% and Lace intifv contpetitmo thin ever before, hour yc'ir, it rates not that far {reins the
shot lot to r pracstue t\ Ili: r«, r tIL V<•iv•
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ltern%e•,tvle m:anagcmcnr "Wt' were lust pcrs scent to have survtvcd the television p0dinc g moral rate and now hive an
,onung from two different wrirlds, that's ch,tllcngc, the printed word still has ad• i+vcrall circulation of 239.000. -
all. Whim you have Newhouscs goini; vantages over the irritate on the tuhc. But In St. Louis, euneedes Si Newhouse,
iround and seeing all the Incal papers all even in print, newspapers face new ehal• the 61m1h''li,9 iocrirt has lost its fatod ad.
der lute, it hccomcs apparent where the lunges, chiefly a wave of shoppers and vertising to free weeklies, and "our ensts
goner lies and pretty slon nobody pays punnysavers ifi mm.,, per 141• are sn hiKh that it's very difficult for us to
rnuch attcntton to the corporate head- in New Orleans, the r,urs•Prun'trrte compete."
quarters." Sauter's three top executives, andSrarfs-Pon are ringed by the six "con- RiOghtly or wrongly, the brothers have
with little to do, rapidly left. In 1978 he _ a • .?,, decided that the best way to fight back is
followed. Significantly, however, local to strengthen their newspapers rather
editors and publishers stayed on: New- Newhouse picked up 17% of than branch out into shoppers thetn-
huusc is consistent--local autonomy, Booth's stock front W LUmey scives, Both by preference and necessity,
family control it the top. COmrrtunicatiorts and another :he,Ncwhouscs have. ruled out or restrict-
Two Newhouse properties have failed: 8%6 from a charitabLe jbitusda- ed themselves in some traditional ave-
the Lang Island, N.Y. Star Jr" emat in Lion. The famLLy tags content nues of diversification. Last December,
1968, and the Long Island rmsl; in 19, 7, with that, Si and DonoLd ean• for example, they agreed to sell off five
Tht:y were no match for the powerhouse tend, until panicky Booth di- television stations, to cittes where they
Long !.,,]and A4ru-sdar, now part of the rectors sought out Times WLr• also ow•n newspapers, to the Times dfr•.
Times Mirror Co. And industry sources ror as a white knight. ror Co. for 582 million, the government,
consider the St. Louis Wohe•Democrar, ? .r .t--a-. , ._
U ' they figurcd, would eventually order
both New Orleans papers, theler evIour• them divested. As for shoppers and free
eral in Jersey City, N.J. and the Staten troll ed•circulauon"--I.e., free-weeklies weeklies, "if we're going to acquire new
Island.M rince to be less profitable than of Cox Enterprises' Guide Newspaper businesses," says Si Newhouse, "they'll
they could be. Corp. Says Guide Ceneral Manager lo• be ones that wouldn't involve us in such
The biggest problem the family must seph Howard, a former W.T. Grant dis• a quantitative increase that we lose the
deal with, however, has to do with the trice manager: "We're not shoppers, personal touch," Thert are only so many
changing nature of communications. we're newspapers. If you want to read flours in the day, and only so many ,prop-
Newspapers still have about S14 billion about the World Series, that's not our ettie5 evtn an artily of Newhouse5 can
of the estimated S50 billion or so spent fob. If you want to read about the athletic get around•to visit.
on advertising annually in the U.S.- teams in the grammar schools and the There are other built-in limitations to
more than radio and television put to. high schools, that if our lob." The six the Newhouse sz lt. Newhouse dropped
;ether-but historically the proportion Guide editions, says Howard, have dou• out of the bidding for Delaware's Wil-
and reduces maintenance cost.
' jai a <?1?? '-:•.-•4.t +-,.' r:1?n??T""4 ?<' -i i
?.r; •k? ";; 3; FM*?'* par: w' t..
1 ..,! .t'+.+r as '41* srS` yam' '?r`?.• ` 3?:?+ ?`•?r?
?f L(?y"r.. ? :-, »." ?`? ?= ? =tom+i *?`??'--•???,???
? ?411
sT.i `?•.
Rex c'altconveyor iclen assure reliable per. Carrier YLtrat:rg conveyors sc een and setr
formance on wood cnip conveyors. arale sat (:= and refuse ,vnile conveying,
flex welded steel chains are raggeCly t:e-
signed to stana ua uncer rougn service.
To learn more about Rexncrd, ask : "• 1
for copies of our annual report and
our corporate brochure. write w. C.
Messinger, Chairman, Rexnord Inc.,
P,O. Box 2422, Milwaukee, Wisconsin cbr
y . +.
53201.
e
I
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Reso #81-60
7/2/81
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Reso 1581-6Q
.i
The Newhouse holdings
The 29 daily newspa i:m that are the heart of the Nttvhuuse with U.S. circulation of 6,1 million, the Sund4q .upple•
(ortune have a total daily citculmion a( 3.2 million. In mcni Parade, radio and t0evision ,taboos and cable TV
addition, the famfiy owns seven Conde Nast magazines Interests. The prupcrtice:
Newipapero
t:a?ulatutn
Caiculsuon Oregon Portland Orrtr+n biurnal 1116.2!
Alabama Birmingham News 174,910 Portland Are;loman 236,720
Huntsville Times 51,077 Pentitylvinla HaTnibtitv. News 65,641
Huntsville News
Mobile Press 14,136
56
205 Hsrnstiurtt 11uvrnr x7,736
Mobile Register ,
48,052 ????
Louislana New Orleans 711mes•Piecy^une 210,846 Conde Nast Vogue 1,007,513
New OrleansStstu•hem 115,:04 Glamnur (,918,606
3lisachusetts SptittgiteldNews 78,175 House tOGarden
Mademoiselle 1,073.109
017
907
1
5pnnglitad Union' 75,022 Sell ,
,
$00,000
,Slithigm Ann Arbor News 41,873 Geerlemen's Quarterly 350.1:0
Bay City irmes 41,0$0 Snde's 256,2«%
F[intlournal 104,355 lplus Bntish, Frenc:t. Italian and
Grand Rapids Press 125,545 Australian editions of Vogue,
lackson Citizen Pat.not 37,588 British Brsde's, 6ntish and
Kalama:co Gazette 5R,1110 French House a) Garden)
1-luskegonChronicle 45,2L:A Parade PubileationslSunday supplcaientl 21.4.11.'10
Sagitutw News $4,757 Bro4daaa
,Mississippi Mississippi Press-Register 22,351 WSYR•TV. Syracuse, N•Y.-
.Missouri St. Louis Globe-Democrat
261,919 WSYS•T:, Unnirs, N.Y.-
WTPA, Hamsburg. Pa.-
New jersey Jersey Citvlersey journal 73,151 WAPI•TV, Blr.=:rham, All..
-
-
Newark The Star-Ledger 41111:3 VI. St. Louts, Mo.•
K
1
New York Stasea Island Advance 71,839 %VSYR•A.it'F.%4. Syracuse. N.Y.
tVAPI-AINV `1, Btr'mtn ham. Ala.
g
Sy'tatusc,ferald•lournal 121,792 %=A•FA Hamsbur
Pa.
g
Syracuse Post Standard 95,655 Cable TV
Ohio Cleveland Pain Dealer 379,169 Systems to two states with ap•
proximately U0.0CO subscribers
'Ta be sold to T: au ,vtiror Co„ suttees to FCC approval.
scants: Newspapers. 1979 Ujim h 7ubitsher Imt.•aationA Ycarbook..ttcrcanes, St=dud Rate & Oats. riua. 21, 1979.
1
Norcbarg gnncing mills (toc left), t:rusners.
screens neir tee: rmfnin„ cos:s in One.
Carrier vibrating ccnveyors tat lefti in ;lass plants
cool anc cry wrwe conveying. -lie[-. cut costs.
7/2/81
.
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Sax oil field ectler ctiat}:s {aanvel are used to
assure aeCencave service on drilling rigs.
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It+h,r Andre%% Pi,livr ww, rc•tetnnl: Say%
I itinald' "'%V%:'Irctt't •vt up tit.urply In,In•
iIi.:011 rte .. G.Innctt Corp ultttti.t(dy
t'u0ht the raper, lur SM) nYIII[un And
III iili l i I i a Iiv%% puhit.hrr lrrirn its Mini;.
hannon, N.Y, paper,:
Newhouse has not made a ncw.parer
ackluisitiun since Mouth-nearly three
years a4ti. At the same time, chains like
Titno Mirrttr, C innett And Knight-Rid-
der have been >~ohbling up newspapers at
30 and 40 tithes earnings. These eom•
petiturs are also diversifying steadily;
Times Mirror, for example, got more
thin half its revenues and profits last
year from outsidtr its newspapers, while
75% of Ncwhou--e is still the Newhouse
newspapers, and in unguarded moments
Si Newhouse is apt to tail every-thing else
He even includes in this
de.•k:ttrttttu the Conde Nast magazine
Operations he has tamed into a healthy
enterprise. Didn't his father say, long
ago: "The only thing to do with money
earned in newspapers (is) leave it in
newspapers'";
But further acquisitions in newspapers
will be mure difficult, too. Because of the
feverish acquisition pace, the market
price'of a good daily newspaper of 30,000
u-10,000 circulation to a monopoly mar-
!`et has doubled in the last five years,
wcording to Atlanta newspaper broker
0
lt[ul t hapol III ti.t}N he "It'+ gilt it, tilt
Jill lilt %%hvrr it'% hard to ?cc any tu-tilwo,
tine tit it." lohn urtim, neii, %r.ipvt Ana'
ly.t [tit the John Muir v GI, tinter In
MI,hingtiln, D,C, Adds, "It's rravui:Ally
imtats.ihlc lilt newspaper pricvs to go
any higher without a buyer askim: him.
wif whether he'd ever make any money
out of u."
It's easier to ask big questions than it
is to answer them and the big question
Nobody expiects Sit and Donald
ever to wind up at Logger.
heads-"Z don% think they've
ever had an argument." says
their uncle, Norman New-
house. But when aLl the deei-
sLorts have to be unanimous.
they are often apt to be Less
derisive
. ?. :.
R. M =51M
that almost shouts itself about the New-
house operauon is this: Will the heirs,
in stubbornly following the founder's
wise policies, stay too tong with those
policies!
Sauter, the ex•Sooth executive,
thinks the Newhouscs will have prob.
lams attracting and keeping smart ex•
ecutives from outside the family. Soon-
er or later he says, bright young execu-
tives will ask themselves where they
.Ire giant: tit %;it to thc• „re,lni?atuln-•
.Ind la,tve Hhvii they conclude It'% only
al Milli .Ind nil hlchvt:
Fier now. (lit: lamlly I. tmuntine. on
vnouch `v%vh,iu%et etlming i1ilnit tit Prot.
vide the nip inanaeerrtent. Thiey'vr almi
done their hc-t to •ee that tuture ownvr-
ship won't feu Outside: Lune aw, the
principal stockholders-Si, Donald, Ted,
Norman and 51's widuw Mitzi---signed
an agreement requiring that if any of
their heirs ever decide to sell, it must be
to the others.
So the future may rest on what Donald
Newhouse calls a matter of "lifestyle."
As long as family members arc "working
in the business, involved in it, enjoying
it," he says, the Newhouse way of run-
ning a billion•dollyr cor' Oration virtually
without a corporate scat: will be viable--
even given the obvious dangers of a two-
man chief executive. Nobody expects Si
and Donald ever to be at loggerheads--•"1
don': think they've ever had an argu-
mcnt," says Uncle \o man-••-but when
all decisions have to be unanimous,
they're often apt to be less decisive.
Only the closest cooperation can over-
come that, the ,Newhouscs are fortunate
that so far there are no Citizen Kanes
around, Or as Norman Newhouse puts it:
"You know, I don't think any of us has
any vanin: And when you're free of
vanity, you're irce of a lot of other
problems." Q
2n_ 011111
nl,e)--cnol d i"or reAc,"ble loeryorM91=*Mce.
'
.
., t a •;+? _, F "=' war
c'
v .a• ma
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Rex bucket elevators deliver emend.
Me oerfermance. assure long service
lite in cement milts.
Reso #81-60
Raxnord is a comoany of many facets.
improving the orcductive efficiency of
cement mills, lumcer mills. mining eoera-
dons, petrochemical and glass plants,
Ecually diverse are the products we
make. They nancfe jobs ranging from
:=itive fastening an machinery to water
ccnCitjcning for many processes.
The reliaoility of r;exnerd arccuc:s are
sought out by a wide range cf incustry:
from food ;,recessing and farm imple•
rren.'s to mining and aerosoace.
To get to 'Know Rexnorc getter, get your
copy of our annual recor, and our core o-
rate orocaure.:'lrite W. C. Mlessir.ger,
Chairman, =+exnord inc., PO. Box ZC2?.
lilviaukee. Wisconsin 5320t.
Rex :nains. ltearutss 3no olhet --crit:cnents
fine -nice aroucation in turr?er and .aver mills.
.A t,-T. a-'-s o-7, M,-.- oco
tl5
7/2/81
l . 'r er °. .. rd.
• ?,?Y Fri .?.
,?6?4:3ty.`{,;n ?l'i`?':.,,'+•Rt,:F'-•xt?si•nk,,Ftr,..,r`.•^°•?• -ay?y,.
`w' w,?r? .r .Y _?___._-.????" r???„??ye?9?Y?4r!•??t;7'=`.F?y? R
;??'ia•?;?`y°, ?1j?°._?'?.t .? rr'`•,?iYu?s'1???n;.i? ? ?T4 ? . x f _ . . , _ _ v. _ ,.
CE-ERMICA ' .
;4 ?int S%set%, NJ. V04%. NY. =5 Aoyaii Vfclar lit
I 1217) JJO•RS1{ SenrCr V.t? V,bpael
January 20, 1981
?.,
9
tit. Sidney R. K afel
Vision Cable Communications, Inc.
110 East 59th Street
New York, NY 10022
Dear Mr. Knafel,
Chemical Bark has been doing business with the Newhouse
family and Newhouse companies for fifty years. The
businesses these companies are engaged in include
newspaper, book and magazine publishing, cable systems,,
microwave transmission and rad-,o broadcasting. ,Ie
understand that the Newhouse conranies are the third
largest circulator of newspapers in the United States.
Chemical Bark has regularly received semi-annual and
audited annual financial statements for the Newhouse
companies. The combined net worth of the Newhouse
companies is in excess of $500 million. All the
Newhouse companies, except for one 80% owned company,
are wholly-owned by members of the Newhouse family
and trusts that they control.
From time to time, Chemical Sank has made loans to the
Newhouses including one recent loan which was in excess
of $100 million. All loans have been paid promptly and
in accordance with all terms and conditions.
The principals are well known by the senior management
of Chemical Bank. We have the highest'regard for their
integrity, business and financial capabilities.
Sincerely,
V
Senior Vice President
RV: jv
r6. - Reso f81=60
is
? °??{ ?yyya%Si.4'?..?J.r?`j?`,lif??p„p?•'4, ;Fl}( .'is.?. p.. ..
7/2/81
MEET
l rv: SL
i 1r yi
s
The Newhouse Group Inc.
360 Madlcon Avanue
Now York, New York 10097
June 1, 1981
Mayor and Commissioners
City of Clearwater
City (tall
S'
Clearwater, Florida 33515
Gentlemen and Mesdames:
This letter is the confirmation of The Newhouse Group
Inc. that any subsidiary of The Newhouse Group Inc. which may
be directly involved in the operation of the cable television
system in the City of Clearwater accepts the teats of the
continuing cable television franchise, subject to the consum-
mation of the merger of Vision Cable Coc'.atunications, Inc. and
a subsidiary of Newhouse as described in the letter to the City
being submitted herewith.
Very truly yours,
THE NEWHOUSE GROUP INC.
BY:
Charies Sabin
Vice President
T.' - `,?;••f`? RBSO''?S1"-GO. 7/2,81.
L
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