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Kinney National Company

From Wikipedia, the free encyclopedia
Not to be confused with National Kinney Corporation, a later business formed as a post-reorganisation spinoff.

Kinney Services Inc.
FormerlyKinney Service Corporation (1961–1966)
Kinney National Service Inc. (1966–1971)
Kinney Services Inc. (1971–1972)
Company typePublic
NYSE: KSR (1961-1966) NYSE: KNS (1966-1972)
Industry
PredecessorKinney Parking System (1945–1961)
National Cleaning Contractors Inc. (1886–1966)
FoundedDecember 26, 1961; 63 years ago (1961-12-26) (as Kinney Service Co.)
August 12, 1966 (1966-08-12) (as Kinney National Service)
Founder
DefunctAugust 12, 1966 (1966-08-12) (merger with National Cleaning Contractors)
February 10, 1972 (1972-02-10) (renamed to Warner Communications)
FateMerger and incorporation as Kinney National Service Inc.; corporate restructuring and reincorporation as Warner Communications Inc. in 1972
SuccessorWarner Communications
Headquarters10 Rockefeller Plaza,
New York City, New York
,
United States
Key people
Divisions
Subsidiaries

Kinney Services Inc., (formerly known as Kinney National Service, Inc.) was an American media conglomerate located in New York City. Originally established as Kinney Service Corporation, it served as the parent company for service-related businesses including funeral homes, parking facilities, and maintenance firms. Kinney became a publicly traded company in 1962 and acquired several more service companies. Following its merger with National Cleaning Contractors [1](founded 1865), Kinney National pivoted towards entertainment through many high-profile media acquisitions, most notably Warner Bros.-Seven Arts. [2] By the early 1970s, Kinney Services' non-media businesses were spun off to National Kinney Corporation (a separate company) and it reincorporated as Warner Communications Inc.

Background and development

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Main articles: Riverside Memorial Chapel, Kinney Parking Company, and Steve Ross (businessman)
The main Riverside Chapel (pictured in 2019) at Manhattan's Upper West Side

Riverside Memorial's early history

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Riverside Memorial Chapel was founded in 1897 as Meyer's Livery Stable by Louis Meyer and his son-in-law, Charles Rosenthal. The company moved operations around Manhattan, beginning in the Lower East Side, then moving to East Harlem and settling in the Upper West Side in 1927, where the main Riverside Chapel was built. In 1933, Meyer's & Company separated into Riverside Memorial Chapel Inc. and Park West Memorial Chapel. [3] Charles Rosenthal continued as a funeral director at Riverside Chapel, while his sons, Edward and Morton Rosenthal, assumed management of the company. [4] The brothers grew the business by acquiring multiple funeral companies and establishing sister Riverside Chapel locations in New York and Florida [5], leading Riverside Memorial Inc. to become the United States' largest funeral service group in the 1950s.

Kinney Parking System's development

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Kinney Parking System (later renamed Kinney System Inc.) was once the largest parking company in the Northeastern United States, having managed parking lots and garage mostly in New Jersey and New York. While not much is known about the company's origins, Connie Bruck's 1995 biography, Steve Ross and the Creation of Time Warner, provides details about Kinney Parking's early history along with its founder. It was incorporated in 1945 as a New Jersey corporation by Manny Kimmel. In 1948, Kinney was granted leases to two of Newark's biggest parking lots. Despite keeping a relatively low profile, Kimmel was known to have engaged in racketeering during the Prohibition era along with mafia figures such as Roy Dornbusch and Abner Zwillman. While Kimmel never faced prosecution, the FBI kept information on him until the 1960s and Kimmel reportedly testified at one of Abner Zwillman's court trials. Kimmel's oldest son, Caesar Kimmel, served as Kinney Parking System's President and majority owner.

Steve Ross and the establishment of Kinney Services

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Steve Ross was born on April 5, 1925, in Brooklyn, New York City. After serving in the U.S. Military, Steve return home to Brooklyn and worked as a clothing salesman until the mid 1950s. He met Carol Rosenthal in 1953 and the two married in 1954, leading Steve to become a member of the wealthy Rosenthal Family. Feeling dissatisfied with his work as a clothing salesman by 1956, Steve accepted an offer from Edward Rosenthal to become a funeral director at the main Riverside Chapel on the Upper West Side. Despite having no prior experience in the deathcare industry and early struggles in his new job, Steve grew accustomed to his position as a funeral director.

Noticing that Riverside's limousines sat unused during nighttime, Steve suggested renting them out to generate additional income. This idea led Steve, Edward Rosenthal, and several close associates to form a separate car rental business in 1958 known as Abbey Rent-A-Car. The rental firm's business operations were not successful and by 1959, Edward suggested closing down the business. In 1960, Steve and Edward met with Caesar Kimmel, the President and majority owner of Kinney Parking System (the then-largest parking operator in New York City), and the three struck a deal for Abbey Rent-A-Car. The company was rebranded as Kinney Rent-A-Car and drivers renting vehicles from it were allowed free parking at Kinney System parking locations. In exchange, Kinney Parking System Inc. received a 25% ownership stake in the company.

Despite the efforts by Caesar Kimmel's Kinney Parking System, the Kinney Rent-A-Car business remained unsuccessful and caused extensive financial losses for Kinney Parking. Caesar, Steve Ross, and Edward Rosenthal concluded that the parking and rental companies would better preform as one publicly traded company, leading to a merger between Kinney Parking and Kinney Renting. This merger transaction was later changed to a four-way merger after Edward brought in his family business, Riverside Memorial Chapel Inc., and City Service Cleaning Contractors, Inc. (a cleaning business managed by his distant relatives). The merger lasted for several months and was completed on December 26, 1961, and the new company was called Kinney Service Corporation. Steve Ross was appointed its President, Edward Rosenthal was its first chairman, and Caesar Kimmel became vice-president [6] and was the company's largest shareholder. [7]

Kinney Services' early operations

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10 Rockefeller Plaza (pictured in March 2022), which served as the headquarters of Kinney National Service

In February 1962, Kinney Service Corporation was preparing to go public on the American Stock Exchange. Its principal holdings included Kinney System Inc. (formerly Kinney Parking System), Riverside Memorial Chapel Inc., Kinney Rent-A-Car Inc., and City Service Cleaning Contractors. The company reported revenues exceeding $17 million. [8] Kinney eventually went public in March 1962, under the ticker symbol of (KSR). In November 1962, Kinney Services moved its headquarters to 10 Rockefeller Plaza.

Expansion into entertainment

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Merger and breakthrough into entertainment

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The company took its new name on August 12, 1966,[9] as Kinney National Services Inc., when it merged with National Cleaning Contractors Inc.,[10] one of the oldest cleaning window companies, formed in 1886. Steve Ross retained his position as CEO. [11]

Kinney National Services (later, National was removed from the company name in February 1971[12]) was known for purchases and sales:

  • On July 21, 1967, Kinney National expanded by acquiring National Periodical Publications (more commonly, but not yet officially, called DC Comics, which would occur in 1977) which owned the Mad magazine of E. C. Publications, Inc. The acquisition was completed on August 25 of the same year.
  • On November 13, 1967, Kinney bought Hollywood talent agency Ashley-Famous.[13] Ted Ashley (the founder of Ashley-Famous) suggested to Ross that he buy out the cash-strapped film company Warner Bros.-Seven Arts, which had purchased Atlantic Records that same month.[14]
  • In February 1968, Kinney acquired Panavision, Inc.
  • On October 8 of the same year, Kinney National sold its subsidiary Kinney System Rent-A-Car to Sandgate Corporation for about $11 million in cash and notes.[15]
  • On January 28, 1969, it was announced that Kinney National would acquire Warner Bros.-Seven Arts.[16] The acquisition was completed on July 4.[17] On April 20, Ashley-Famous was sold because of antitrust laws prohibiting a company from owning both a production studio and a talent agency. In August, Ted Ashley became chief of the film company.[18] On December 16, Warner Bros.-Seven Arts Inc. was rebranded as Warner Bros. Inc.[19] Beginning with the unexpected success of the concert documentary Woodstock (1970), Warner Bros. started scoring box office hits again and became a major studio.
  • In 1970, Kinney National bought Jac Holzman's Elektra Records and Nonesuch Records.

On June 10, 1971, Kinney sold Riverside Memorial Chapel to Service Corporation International. Kinney also announced that it would form a new separate company focused on its parking and cleaning businesses; National Kinney Corporation was formally founded in September 1971.[20]

On November 22, 1971, Kinney Services also bought Television Communications Corporation (which was renamed as Warner Cable in 1973), including its recording studio operations of 1,210,500 common shares.[21][22]

Kinney National also owned wood flooring manufacturer Circle Floor from Seymour Milstein and Paul Milstein, when Kinney's predecessor bought it in 1964 for $15 million, with the Milsteins remaining as managers of the unit until 1971 before the sale.[23]

Spinoff and reorganization

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Kinney National spun off its non-entertainment assets on August 7, 1971 as the National Kinney Corporation, and renamed itself as Warner Communications Inc. on February 10, 1972.[24]

Steve Ross was the Warner Communications' sole CEO, president, and chairman. Charles A. Agemian, the former CEO of Garden State National Bank, was a director at Warner Communications.

References

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  1. ^ "BIG BOARD TO LIST KINNEY PREFERRED (Published 1966)". August 12, 1966. Retrieved August 6, 2025.
  2. ^ "Warner Bros. Picks New Chief Officer And Head of Board (Published 1969)". August 5, 1969. Retrieved August 6, 2025.
  3. ^ "Dignity Memorial: Riverside Memorial Chapel's history". dignitymemorial.com. Retrieved July 11, 2025.
  4. ^ "Charles Rosenthal, 89, Is Dead; Began Riverside Funeral Homes". The New York Times. June 30, 1966. ISSN 0362-4331. Retrieved July 11, 2025.
  5. ^ "Charles Salomon, Riverside Memorial Chapel A Gift for Helping People in Dark Times Community Builder". www.nypress.com. January 15, 2015. Retrieved August 6, 2025.
  6. ^ Kristof, Nicolas D. (October 22, 1984). "BUSINESS PEOPLE ; Another Officer Resigns at Warner (Published 1984)". Retrieved August 6, 2025.
  7. ^ "Diversified Kinney Service Is Growing Rapidly; Wide Interests of Company Pay Off in Steady Gains in Sales and Earnings". The New York Times. December 26, 1964. ISSN 0362-4331. Retrieved July 17, 2025.
  8. ^ Hammer, Alexander R. (April 19, 1962). "Kinney Service Corp. Planning First Public Offering of Stock". The New York Times. ISSN 0362-4331. Retrieved July 17, 2025.
  9. ^ "The merge of Kinney Service & National Cleaning". Chicago Tribune. Newspaper.com. September 14, 1966. Retrieved November 8, 2020.
  10. ^ Reckert, Clare M. (January 8, 1966). "KINNEY SERVICE PLANS EXPANSION; Proposing a Merger With National Cleaning". The New York Times. p. 33.
  11. ^ Connie Bruck (2013). Master of the Game: Steve Ross and the Creation of Time Warner. New York: Simon and Schuster. ISBN 9781476737706. Retrieved August 30, 2015.
  12. ^ "Kinney National recalled as Kinney Services". The Evening Sun. February 17, 1971. Retrieved November 8, 2020 – via Newspapers.com.
  13. ^ "World of Business". Courier News. November 13, 1967. p. 14.
  14. ^ Musser, Charles; Harpole, Charles (1990). The Emergence of Cinema: The American Screen to 1907. Vol. 9. Scribner. ISBN 9780684804637.
  15. ^ "Sandgate in Kinney Deal". The New York Times. October 1, 1968.
  16. ^ "National News". The Los Angeles Times. February 25, 1969. p. 41.
  17. ^ "Market Briefs". National Post. July 19, 1969. p. 18.
  18. ^ "Ashley Named Chief of Warner-7 Arts". Valley Times. August 5, 1969. p. 2.
  19. ^ "Warner Bros. Drops Name of Seven Arts". Newspaper.com. Valley Times. December 16, 1969. Retrieved September 12, 2019.
  20. ^ Hammer, Alexander R. (June 10, 1971). "SOUTHWEST IN BID FOR RIEGEL PAPER". The New York Times.
  21. ^ "COLGATE IN OFFER FOR KENDALL CO". The New York Times. October 13, 1971.
  22. ^ Hammer, Alexander R. (November 23, 1971). "Kinney-TVC Terms Shift". The New York Times.
  23. ^ "Milstein Opens Throttle as Builder". The New York Times. October 18, 1981.
  24. ^ "Kinney Changes Name". Des Moines Tribune. February 11, 1972.

Works cited

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