American News Company
Encyclopedia
American News Company was a magazine
(and comic book
) distribution
company founded in 1864 by Sinclair Tousey, which dominated the distribution market in the 1940s and 1950s. The company's abrupt 1957 demise caused a huge shakeup in the publishing industry, forcing many comic book publishers and small magazine publishers out of business.
, it had more than 5400 stockholders. Headquartered in New Jersey
, American News also had offices in the Park Place
section of Manhattan
.
Comic book clients of American News included Atlas Comics
, Dell Comics
, and Toby Press
.
Many magazines distributed in the 1940s were in pulp
format; by the end of 1955, all had either ceased publication or switched to digest
format. This change was largely the work of distributors such as American News, who refused to carry the pulp magazines since they were no longer profitable. Science fiction
magazines distributed by American News included If
, Imagination
, Imaginative Tales
, and Space Science Fiction Magazine
.
An alternative (but somewhat similar explanation) for the company's demise has been offered by comic book historian and author Gerard Jones
. The company in 1956...
to a larger format, and to become monthly rather than bimonthly or quarterly. Many magazines could not afford to make these changes, both of which required either high circulation or a strong advertising base, and many magazines folded as a result.
An example of a company that the change in distributor had a drastic impact on is Atlas Comics, which ended up distributing through a rival and was thereafter constrained as to its output for the next decade (including the early years of its successor, Marvel Comics
).
Magazine
Magazines, periodicals, glossies or serials are publications, generally published on a regular schedule, containing a variety of articles. They are generally financed by advertising, by a purchase price, by pre-paid magazine subscriptions, or all three...
(and comic book
Comic book
A comic book or comicbook is a magazine made up of comics, narrative artwork in the form of separate panels that represent individual scenes, often accompanied by dialog as well as including...
) distribution
Distribution (business)
Product distribution is one of the four elements of the marketing mix. An organization or set of organizations involved in the process of making a product or service available for use or consumption by a consumer or business user.The other three parts of the marketing mix are product, pricing,...
company founded in 1864 by Sinclair Tousey, which dominated the distribution market in the 1940s and 1950s. The company's abrupt 1957 demise caused a huge shakeup in the publishing industry, forcing many comic book publishers and small magazine publishers out of business.
Background
American News functioned both as a national distributor and as a local periodical wholesaler. The company had over 300 branches and employed several thousand employees. Listed on the New York Stock ExchangeNew York Stock Exchange
The New York Stock Exchange is a stock exchange located at 11 Wall Street in Lower Manhattan, New York City, USA. It is by far the world's largest stock exchange by market capitalization of its listed companies at 13.39 trillion as of Dec 2010...
, it had more than 5400 stockholders. Headquartered in New Jersey
New Jersey
New Jersey is a state in the Northeastern and Middle Atlantic regions of the United States. , its population was 8,791,894. It is bordered on the north and east by the state of New York, on the southeast and south by the Atlantic Ocean, on the west by Pennsylvania and on the southwest by Delaware...
, American News also had offices in the Park Place
Park Place
Park Place may refer to:Canada:* Park Place , a park in the city of Barrie* Park Place , a skyscraper* Park Place Mall, Lethbridge, AlbertaUnited Arab Emirates:...
section of Manhattan
Manhattan
Manhattan is the oldest and the most densely populated of the five boroughs of New York City. Located primarily on the island of Manhattan at the mouth of the Hudson River, the boundaries of the borough are identical to those of New York County, an original county of the state of New York...
.
Comic book clients of American News included Atlas Comics
Atlas Comics (1950s)
Atlas Comics is the term used to describe the 1950s comic book publishing company that would evolve into Marvel Comics. Magazine and paperback novel publisher Martin Goodman, whose business strategy involved having a multitude of corporate entities, used Atlas as the umbrella name for his comic...
, Dell Comics
Dell Comics
Dell Comics was the comic book publishing arm of Dell Publishing, which got its start in pulp magazines. It published comics from 1929 to 1973. At its peak, it was the most prominent and successful American company in the medium...
, and Toby Press
Toby Press
Toby Press was an American comic-book company that published from 1949 to 1955. Founded by Elliott Caplin, brother of cartoonist Al Capp and himself an established comic strip writer, the company published reprints of Capp's Li'l Abner strip; licensed-character comics starring such film and...
.
Many magazines distributed in the 1940s were in pulp
Pulp magazine
Pulp magazines , also collectively known as pulp fiction, refers to inexpensive fiction magazines published from 1896 through the 1950s. The typical pulp magazine was seven inches wide by ten inches high, half an inch thick, and 128 pages long...
format; by the end of 1955, all had either ceased publication or switched to digest
Digest size
Digest size is a magazine size, smaller than a conventional or "journal size" magazine but larger than a standard paperback book, approximately 5½ x 8¼ inches, but can also be 5⅜ x 8⅜ inches and 5½ x 7½ inches. These sizes have evolved from the printing press operation end...
format. This change was largely the work of distributors such as American News, who refused to carry the pulp magazines since they were no longer profitable. Science fiction
Science fiction
Science fiction is a genre of fiction dealing with imaginary but more or less plausible content such as future settings, futuristic science and technology, space travel, aliens, and paranormal abilities...
magazines distributed by American News included If
If (magazine)
If was an American science fiction magazine launched in March 1952 by Quinn Publications, owned by James L. Quinn. Quinn hired Paul W. Fairman to be the first editor, but early circulation figures were disappointing, and Quinn fired Fairman after only three issues. Quinn then took over the...
, Imagination
Imagination (magazine)
Imagination was an American fantasy and science fiction magazine first published in October 1950 by Raymond Palmer's Clark Publishing Company. The magazine was sold almost immediately to Greenleaf Publishing Company, owned by William Hamling, who published and edited it from the third issue,...
, Imaginative Tales
Imaginative Tales
Imaginative Tales was an American fantasy and science fiction magazine launched in September 1954 by William Hamling's Greenleaf Publishing Company. It was created as a sister magazine to Imagination, which Hamling had acquired from Raymond A. Palmer's Clark Publishing in 1951...
, and Space Science Fiction Magazine
Space Science Fiction Magazine
Space Science Fiction Magazine was a US science fiction magazine published by Republic Features Syndicate, Inc. as part of a package of radio shows and related genre magazines. Two issues appeared, both in 1957. It published stories by well-known writers, including Arthur C...
.
Demise
The mammoth company's abrupt demise in June 1957 has been a source of speculation for decades. One theory is that a speculator became aware that a bookkeeping peculiarity in American News' accounts could allow a large profit from liquidating the company. He acquired control, and proceeded to sell off the assets, ultimately winding the company up. This theory was summarized in a 1960 lawsuit:An alternative (but somewhat similar explanation) for the company's demise has been offered by comic book historian and author Gerard Jones
Gerard Jones
For the entrepreneur see Gérard Jones.Gerard Jones is an award-winning American author and comic book writer.-Biography:Jones was born in Cut Bank, Montana, and raised in Los Gatos and Gilroy, California...
. The company in 1956...
Repercussions
The effect on the American magazine market was catastrophic. Many magazines had to switch to one of the independent distributors, who were able to set their own conditions for taking on new business. This often forced the magazines to change from a digest sizeDigest size
Digest size is a magazine size, smaller than a conventional or "journal size" magazine but larger than a standard paperback book, approximately 5½ x 8¼ inches, but can also be 5⅜ x 8⅜ inches and 5½ x 7½ inches. These sizes have evolved from the printing press operation end...
to a larger format, and to become monthly rather than bimonthly or quarterly. Many magazines could not afford to make these changes, both of which required either high circulation or a strong advertising base, and many magazines folded as a result.
An example of a company that the change in distributor had a drastic impact on is Atlas Comics, which ended up distributing through a rival and was thereafter constrained as to its output for the next decade (including the early years of its successor, Marvel Comics
Marvel Comics
Marvel Worldwide, Inc., commonly referred to as Marvel Comics and formerly Marvel Publishing, Inc. and Marvel Comics Group, is an American company that publishes comic books and related media...
).