New York, May 24 (UPI)

In wire rooms from San Diego to Karachi, the teletypes of the United Press and International News Service clattered out their biggest news of the day: "The United Press Associations and International News Service joined forces today around the world in the creation of a single news agency named 'United Press International.' "

For both services, the merger made solid sense. Founded in 1907 by E. W. ("Damned Old Crank") Scripps, the bustling, colorful U.P. last year grossed $28.8 million, but its profit margins have always been as thin as newsprint. With the merger, the U.P. eliminated a pesky competitor, increased its domestic clientele by some 120 daily newspapers to a total around 950 (v. the A.P.'s 1,243), will have "available" the services of such well-read I.N.S. byliners as Bob Considine, Ruth Montgomery and Louella Parsons, who will remain on the Hearst payroll. There was no question about who was taking over whom. U.P. will control 75% of U.P.I.'s stock, and U.P. President Frank H. Bartholomew will become president of the new agency.

For I.N.S., the deal was even more logical. Started in 1909 by William Randolph Hearst, who wanted his own wire service for his own papers, I.N.S. has long been in trouble. Kept going more out of Hearstly pride than profit, it averaged an annual loss of some $3,000,000 over the past few years. To compete with the A.P.'s thoroughness and the U.P.'s color, I.N.S. fell back on splash-and-dash journalism. On a coronation story, editors could rely on the A.P. for the dimensions of the cathedral, the U.P. for the mood of the ceremony, and the I.N.S. (sometimes) for an interview with the barmaid across the way.

By throwing in his hand, William Randolph Hearst Jr. got rid of a hopelessly losing proposition and picked up 25% of what should become a profitmaking business. Hearst did have to pay one heavy price: all U.P. employees will be kept on; most I.N.S. employees will be dropped.

When the merger was announced, the Department of Justice wondered if it did not violate the antitrust laws. But in basic news coverage, the undermanned I.N.S. was never in the running with its rivals. By the merger, the new beefed-up U.P.I, would become a news agency better able to compete in news coverage with the monolithic, nonprofit A.P.

Ironically, the A.P. beat the U.P.I, on its own birthday story. Picking up the news from the Dow Jones wire, the A.P. moved the story a full 19 hours 7 minutes before its new rival owned up to its existence.

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