Short circuit: McGraw-Hill's push into electronic data fails to bolster profit; critics contend the publisher suffers from nepotism and weak acquisitions; the ruffling of the managers

Publishing giant Mcgraw-Hill is in trouble after a year of sagging profits and failed acquisitions. The company reported a 74 percent drop in net income for FY 1989 after a $152 million restructuring charge. McGraw has tried to diversify by entering the electronic publishing realm in a strong way, but so far the expected revenues have failed to materialize, which they must if the company is to regain profitability. Analysts also cite as a problem a series of ill-advised acquisitions that have done little for the company except create write-offs. Perhaps the most intangible problem is in management, where moral is low because of the perceived nepotism involved with the rapid promotion of H.W. McGraw III over other more seasoned and qualified people.