Kinney National Company

Kinney Services Inc.
FormerlyKinney Service Corporation (1961–1966)
Kinney National Service Inc. (1966–1971)
Kinney Services Inc. (1971–1972)
Company typePublic
Industry
PredecessorKinney Parking System (1945–1961)
National Cleaning Contractors Inc. (1886–1966)
FoundedDecember 26, 1961 (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
  • Edward Rosenthal
  • Caesar Kimmel
Divisions
Subsidiaries
  • National Kinney Corporation (50% ownership)
  • Hackensack Trust Company (99% ownership)

Kinney Services Inc., (formerly known as Kinney National Service Inc.) was an American mass media conglomerate located in New York City. Originally established as Kinney Service Corporation, it served as the parent company 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 (founded 1886), Kinney National pivoted towards entertainment through many high-profile media acquisitions, most notably Warner Bros.-Seven Arts. 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

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 growth and expansion

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. [1] Charles Rosenthal continued as a funeral director at Riverside Chapel, while his sons, Edward and Morton Rosenthal, assumed management of the company. [2] The brothers grew the business by acquiring multiple funeral companies and establishing sister Riverside Chapel locations in New York and Florida, leading Riverside Memorial Inc. to become the United States' largest funeral service group in the 1950s.

Kinney Parking's development and history

Kinney Parking System operated parking lots and garages throughout New Jersey and New York. Connie Bruck's biography, Steve Ross and the Creation of Time Warner, (which covers the life of Steve Ross along with companies he worked for) states that the company was incorporated in 1945 by Manny Kimmel and was granted leases to two of Newark's biggest parking lots in 1948. Kimmel kept a low profile and owned garages that were once involved in racketeering alongside Roy Dornsbusch and Abner Zwillman, both associated with organized crime. Kimmel owned 2/3 of the company's shares and his oldest son, Caesar Kimmel, served as the President and owner of Kinney Parking.

Kinney Parking System (renamed to Kinney System Inc., and Kinney System Holding Corporation) was once the largest parking company in the Northeastern United States, having operated parking lots and garage mostly in New York.

Steve Ross and the formation of Kinney Service Corporation

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. He met Carol Rosenthal in 1953 and the two began dating and married in 1954. Carol introduced Steve to her family, and they quickly took a liking to him. Upon growing dissatisfied with his job in 1956, Steve accepted an offer from Edward Rosenthal to become a funeral director at the Riverside Chapel in the Upper West Side. Although he struggled in his new role, he adjusted to it.

Noticing the chapel's limousines remained unused during nighttime, he suggested renting them out for extra profits. This led to the creation of a separate rental car business called Abbey Rent-A-Car, but its operations were not profitable, and it was nearing closure in 1959. Steve contacted Kinney Parking System's CEO, Caesar Kimmel, and the two struck a deal. Abbey was rebranded to Kinney System Rent-A-Car and drivers renting vehicles from it were allowed free parking at Kinney's parking lots and garages while Kinney Parking received 25% ownership in the company.

Kinney Rent-A-Car's operations continued to be unsuccessful, and Kinney Parking System suffered losses on the rental firm. By 1960, Steve Ross, Caesar Kimmel, and Edward Rosenthal decided to merge both Kinney Parking System and Kinney Rent-A-Car into a new publicly traded. This merger transaction was later changed to into a four-way merger between Riverside Memorial Chapel Inc, Kinney Parking System, City Service Cleaning Contractors, Inc. and Kinney Rent-A-Car. The merger was finalized on December 26,1961 and Kinney Service Corporation was established. Steve Ross was appointed its President, while Edward Rosenthal served as chairman and Caesar Kimmel became a major shareholder of the company. [3]

Kinney Service Corp's early years

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

The New York Times reported in April 1962 that Kinney Service Corporation was preparing to become a publicly traded company on the New York Stock Exchange. Kinney Service's holdings included Kinney System Inc (formerly Kinney Parking System), Riverside Memorial Chapel Inc, Kinney Rent-A-Car, and City Service Cleaning Contractors. Kinney Rent-A-Car owned a fleet of roughly 2000 vehicles and Riverside Memorial Chapel Inc. operated 10 funeral chapels in New York and Florida. Kinney System Inc was reported to have owned and leased eighty parking locations in New York, New Jersey, Ohio, Florida, and Washington D.C. [4]

With a revenue of 17 million dollars, Kinney Service Corporation went public in April 1962.

Expansion into entertainment

Merger and breakthrough into entertainment

The company took its new name on August 12, 1966,[5] as Kinney National Services Inc., when it merged with National Cleaning Contractors Inc.,[6] one of the oldest cleaning window company, formed in 1886. Steve Ross retained his position as CEO. [7]

Kinney National Services (later, National was removed from the company name in February 1971[8]) 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.[9] 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.[10]
  • 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.[11]
  • On January 28, 1969, it was announced that Kinney National would acquire Warner Bros.-Seven Arts.[12] The acquisition was completed on July 4.[13] 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.[14] On December 16, Warner Bros.-Seven Arts Inc. was rebranded as Warner Bros. Inc.[15] 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.[16]

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.[17][18]

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.[19]

Financial scandal, spinoff and reorganization

Due to a financial scandal involving price fixing in its parking operations,[7] Kinney National spun off its non-entertainment assets on August 7, 1971 as the National Kinney Corporation, and renamed the remaining Kinney Services as Warner Communications Inc. on February 10, 1972.[20]

Steve Ross was the company's sole CEO, president, and chairman. Directors included Charles A. Agemian, the CEO of Garden State National Bank.

References

  1. ^ "Dignity Memorial: Riverside Memorial Chapel's history". dignitymemorial.com. Retrieved July 11, 2025.
  2. ^ "Charles Rosenthal, 89, Is Dead; Began Riverside Funeral Homes". The New York Times. June 30, 1966. ISSN 0362-4331. Retrieved July 11, 2025.
  3. ^ "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.
  4. ^ 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.
  5. ^ "The merge of Kinney Service & National Cleaning". Chicago Tribune. Newspaper.com. September 14, 1966. Retrieved November 8, 2020.
  6. ^ Reckert, Clare M. (January 8, 1966). "KINNEY SERVICE PLANS EXPANSION; Proposing a Merger With National Cleaning". The New York Times. p. 33.
  7. ^ a b 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.
  8. ^ "Kinney National recalled as Kinney Services". The Evening Sun. February 17, 1971. Retrieved November 8, 2020 – via Newspapers.com.
  9. ^ "World of Business". Courier News. November 13, 1967. p. 14.
  10. ^ Musser, Charles; Harpole, Charles (1990). The Emergence of Cinema: The American Screen to 1907. Vol. 9. Scribner. ISBN 9780684804637.
  11. ^ "Sandgate in Kinney Deal". The New York Times. October 1, 1968.
  12. ^ "National News". The Los Angeles Times. February 25, 1969. p. 41.
  13. ^ "Market Briefs". National Post. July 19, 1969. p. 18.
  14. ^ "Ashley Named Chief of Warner-7 Arts". Valley Times. August 5, 1969. p. 2.
  15. ^ "Warner Bros. Drops Name of Seven Arts". Newspaper.com. Valley Times. December 16, 1969. Retrieved September 12, 2019.
  16. ^ Hammer, Alexander R. (June 10, 1971). "SOUTHWEST IN BID FOR RIEGEL PAPER". The New York Times.
  17. ^ "COLGATE IN OFFER FOR KENDALL CO". The New York Times. October 13, 1971.
  18. ^ Hammer, Alexander R. (November 23, 1971). "Kinney-TVC Terms Shift". The New York Times.
  19. ^ "Milstein Opens Throttle as Builder". The New York Times. October 18, 1981.
  20. ^ "Kinney Changes Name". Des Moines Tribune. February 11, 1972.

Works cited

  • Bruck, Connie (April 1, 1995). Master of the Game: Steve Ross and the Creation of Time Warner (1st ed.). PENGUIN PUTNAM. ISBN 9780140244540.
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