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I believe this falls Fair Use Act. Read here; http://www.copyright.gov/fls/fl102.html
Newspaper reporters work for the paper. All writing and photos are usually property of the newspaper, even freelance. I don't think that because the newspaper is now defunct that the rights revert back to the photographer.
I may be using this lone B & W still in my music video which I'm considering including in my movie possibly for distribution. It simply shows me playing guitar. I was thinking about 4 seconds or so...
I believe this falls Fair Use Act. Read here; http://www.copyright.gov/fls/fl102.html
Some of the legal tests are; will you be profiting from the image? Will you cause the owner of the image to lose any profits?? How long will the image appear in the video??
Is it even possible to contact the copyright holder of the pictures??
I will let you answer your own question, as you know the answers to the above questions better, and I'm not in a position to give you any legal advice on this situation.
When I freelanced as a newspaper photographer, my photos belonged to ME. And I made additional money by selling them some of them after they had run in the paper.
Also, just because the paper is no longer published doesn't mean that nobody owns the rights to its archives.