American News Company
| Company type | Public |
|---|---|
| Industry | Magazine, newspaper, book, and comic distribution |
| Founded | February 1, 1864 in New York City, United States |
| Founder | Sinclair Tousey |
| Defunct | 1957 |
| Fate | Liquidated following antitrust proceedings |
| Headquarters | New Jersey (corporate headquarters), Manhattan (additional offices) , United States |
Area served | United States, Canada (subsidiaries in major cities including Montreal) |
Key people | Sinclair Tousey (founder and first president), Harry Dexter (president), Solomon W. Johnson (president until 1913), Henry Garfinkle (post-WWII leader) |
| Products | Magazines, newspapers, books, comics distribution |
Number of employees | 1150+ (circa 1893) (1893) |
American News Company (ANC), established in 1864 by Sinclair Tousey, emerged as the leading distributor of magazines, newspapers, books, and comics across the United States throughout the late 1800s and early 1900s. Its abrupt downfall in 1957 caused major upheaval within the publishing sector and led to the closure of numerous publishing houses.
Early years
ANC was formed through the consolidation of two prominent New York City wholesalers—Sinclair Tousey's enterprise and Dexter, Hamilton & Co.—on February 1, 1864. The company was initially overseen by seven partners: Sinclair Tousey, John E. Tousey, Harry Dexter, George Dexter, John Hamilton, Patrick Farrelly, and Solomon W. Johnson, with Johnson remaining until his death in 1913. The presidency first belonged to Sinclair Tousey, followed sequentially by Harry Dexter and then Solomon Johnson.
The Boston division took shape after acquiring Alexander Williams's extensive wholesale periodical business that had expanded significantly along the Eastern Seaboard. This branch was reorganized as a subsidiary named New England News Company. Soon after its inception, ANC ventured into book wholesaling and rapidly grew into one of the nation’s largest distributors in that market.
Following the Civil War, ANC capitalized on expanding railroad networks and government-subsidized second-class mail rates for newspapers and magazines. This enabled the establishment of hundreds of distribution centers nationwide. Between 1870 and 1885, American periodical titles increased dramatically from about 700 to over 3,300.
By 1893, ANC controlled thirty-two subsidiaries generating nearly $18 million in annual revenue against expenses of approximately $2.5 million, servicing close to 19,000 retail outlets. In New York City alone, the company operated a fleet of 125 delivery wagons daily supported by fourteen local substations.
At that time, ANC directly employed more than 1,150 workers with weekly payroll costs exceeding $16,000. Its assets included $1 million in real estate holdings and $1.4 million worth of merchandise inventory. The company extended substantial credit to dealers nationwide with accounts receivable consistently around $800,000. It owned or leased over fifty properties in major urban centers such as Chicago (under Great Western News Company), Montreal, San Francisco, and Washington D.C., while international distribution was managed by International News Company.
The Union News Company subsidiary operated roughly 300 newsstands located in railroad stations covering about 40% of U.S. rail routes by 1893, generating exclusive rights income averaging $1,000 daily. By 1958, Union News had expanded to nearly a thousand newsstands across the country—far outpacing competitors—and exerted considerable influence over publishers' contractual arrangements.
Typically, ANC granted newsstand dealers a profit margin ranging from five to ten cents on a thirty-five-cent magazine like Harper's, allowing unsold copies to be returned except for certain discounted non-returnable titles similar to today’s direct-sale comic book model.
ANC’s dominant market position faced its first significant challenge when publisher Frank Munsey founded Red Star News after ANC declined to distribute his low-cost pulp magazines at wholesale prices he found acceptable. Red Star News allowed Munsey to raise his wholesale revenue per copy from four to seven cents. Following this precedent, other major publishers including Hearst, Fawcett, Curtis, Annenberg, and Donenfeld created independent distribution channels outside ANC’s control; despite this competition ANC remained the leading distributor until its eventual collapse.
Background
American News functioned as both a nationwide distributor and a regional wholesaler of periodicals. Following World War II, under the leadership of Henry Garfinkle, the company expanded to more than 300 branches throughout the United States and employed thousands of workers. By the mid-20th century, American News had become the largest book wholesaler worldwide, commanding a dominant position in the sector. It also held substantial control over magazine and newspaper distribution within the U.S. market. The company was publicly traded on the New York Stock Exchange and boasted a shareholder base exceeding 5,400 individuals. Its corporate headquarters were located in New Jersey, with additional offices situated in downtown Manhattan.
Among its comic book clientele were Atlas Comics, Dell Comics, and Toby Press. Meanwhile, National Comics operated its own distribution arm, Independent News, which assumed distribution responsibilities for other publishers after American News ceased operations. Publishers unable to secure agreements with National's distributors quickly went out of business, while others encountered limitations—such as Atlas (which later became Marvel Comics), restricted to releasing only eight titles per month. Paperback publishers like Lion Library folded when Independent News, already handling rival New American Library, declined to distribute their products. In contrast, Avon paperbacks, originally established as an ANC subsidiary in 1941 during the paperback surge, weathered the industry's downturn and were eventually acquired by Hearst.
During the 1940s, many magazines distributed were in pulp format; however, by 1955, nearly all had either ceased publication or transitioned to digest format. This transformation was largely driven by American News and other distributors refusing to carry pulp magazines that proved unprofitable. The 1950s saw a surge in science fiction magazines, with about 30 new titles introduced, but this boom collapsed following ANC’s failure. Other pulp genres—including westerns, romance, and detective stories—experienced similar declines as these niche magazine categories became unsustainable.
Demise
Antitrust proceedings initiated by the government against ANC began in 1952 and ultimately precipitated the company's collapse. By 1955, leading magazine publishers started withdrawing from ANC and sought alternative distribution channels for newsstand sales. The shutdown of two highly popular magazines, Collier's and Woman's Home Companion, in January 1957 dealt a significant blow to ANC amid its ongoing financial difficulties. In April of that year, Dell Publishing also announced it would terminate its distribution partnership.
The abrupt disintegration of ANC in June 1957 has been the subject of speculation for many years. One hypothesis proposes that a speculator uncovered an accounting irregularity that allowed for substantial profits through liquidation; this individual then gained control of the company and proceeded to sell off its assets, winding down operations. A lawsuit filed in 1960 encapsulated these events:
Comic book historian Gerard Jones provides a related perspective: in 1956, ANC was found guilty of trade restraint and mandated to divest its newsstand holdings. Its largest client, George T. Delacorte Jr., sought new distribution arrangements for Dell comics and paperbacks. Faced with anticipated revenue losses and recognizing the value of its New Jersey headquarters' real estate amid growing suburban development in the 1950s, ANC opted to liquidate its assets and sell the property, vanishing from the industry landscape.
Repercussions
The distributor's failure had a devastating effect on the U.S. magazine industry. Numerous publications were compelled to rely on independent distributors who introduced new requirements. These changes frequently meant magazines had to transition from digest size to larger formats and alter their release schedules to monthly issues, necessitating increased circulation figures or enhanced advertising income. Many magazines were unable to fulfill these criteria and consequently ceased operations.
A prominent case is that of Atlas Comics, which moved its distribution to Independent News, a subsidiary of National Comics Publications, the parent company of competitor DC Comics. This shift significantly restricted Atlas's publishing capabilities for the following ten years, including during the formative period of its successor, Marvel Comics.
References
- Vadeboncoeur, Jim (drawing from an investigation by Brad Elliott). "The Great Atlas Implosion," The Jack Kirby Collector #18 (Jan. 1998) pp. 4–7.