Katharine Graham resents being labeled the most powerful woman in publishing. "That's a sexist term, and I really dislike it," she says. Still, what else is there to call her? As chairman and principal owner of the Washington Post Co., she controls a $370 million communications empire that includes the Washington Post (see following story), the Trenton Times, Newsweek, five broadcast stations and 49% of a paper mill. The crowned heads of journalism and Government gather at her Georgetown home, weekend invitations to her Marshall, Va., farm are almost as prized as summonses to Camp David, and in a begrudging accolade. Women's Wear-Daily now refers to her as Krusty Kay.
Lately, the most powerful woman in publishing has taken a few steps to enhance that titH She has consolidated her control of the Post Co. by forcing out President Larry H. Israel, 57, and asking the company's directors to combine the position with her own. Graham. 59, is also seeking to acquire another magazine. She lost out to Australian Rupert Murdoch in bidding last month for New York (TIME cover. Jan. 17), but she is now trying to buy The New Yorker, that genteel and profitable weekly. Said a Post Co. insider. "It depends on when they want to sell."
Israel, a Graham executive since he left the presidency of Group W stations in 1968, is the latest casualty in a series of top-level management shuffles at the Post Co. The newspaper division, for example, has had three different business managers in the past four years, and two division presidents have suddenly resigned in the past six years. Graham has also abruptly replaced a couple of Newsweek editors, although in general she grants her editors admirable support. But Graham can be rough on business types. "She's very difficult to get along with, especially if you have to work closely with her," says one former Graham lieutenant. "She's mercurial, impulsive. I've seen tears. She blows up and then apologizes half an hour later."
Omaha Whiz. The blowup that led to Israel's departure was over his opposition to Graham's proposed purchase of New York Magazine Co. Israel argued that the firm would cut into Post Co. profits, and that strong-willed NYM Founder Clay Felker would try to run Newsweek if he came aboard. Actually. Israel's troubles with Graham began more than a year ago. when Graham started listening less to him and more to Post Co. Board Member Warren Buffett, 46, a self-made Omaha financial whiz.
Buffett, who worked as a Post newsboy when his father represented a Nebraska district in Congress, bought into the Post Co. in 1973, and perhaps to protect his 10.5% slice of nonvoting stock. has become virtually an unpaid Post Co. executive. He spends much of his time on company business and is a frequent Graham dinner guest. "Intellectually, he dominates her," comments one editor who knows them both. "You remember how her orientation changed to talking about stockholders, profits and the bottom line? That's Buffett's influence." Israel is said to have resented the Nebraskan's growing influence with Graham. Both Graham and Israel refuse to discuss his departure. Said Graham last week: "If people say I murder and use arsenic I still won't comment."