University of Chicago Gets Britannica Stock

CHICAGO--The Benton Foundation, owner and publisher of the Encyclopedia Britannica, announced this week it will donate all of its stock in the encyclopedia to the University of Chicago.

The newly-created "supporting foundation" that will receive the stock is an attempt by the Benton Foundation to evade certain tax restrictions on private foundations, Larry Grinnell, spokesman for the encyclopedia in New York, said yesterday.

The university plans to use the income from the transferred stock to establish an institute for radio and television news broadcasting, Grinnell said. A spokesman for the university said fellowships may be established for television and radio reporters.

University officials said they were overjoyed at the news. Hannah Gray, president of the university, said in a statement. "For almost 40 years the university has been beneficiary of support of the Benton family. The creation of a supporting foundation by the Benton foundation is a splendid addition to that long history."

The University of Chicago has had close connections with the Benton Foundation since 1943, when the late William Benton, who also served as a United States senator from Connecticut, left his position as vice president at the university to head Britannica.

Since then, in return for 3 per cent of the United States sales, the University of Chicago has given its name and advice to the encyclopedia.

The school will continue to receive those royalties as well as future dividends, although the foundation has not yet released the figures.

The New York Times reported Friday that the encyclopedia does $250 million worth of business each year, and that the 3 per cent royalties given the university since 1943 have added up to $60 million.