Experimenter Publishing
Experimenter Publishing was an American media company founded by Hugo Gernsback in 1915.[1] The first magazine was The Electrical Experimenter (1913–1931) and the most notable magazines were Radio News (1919–1985) and Amazing Stories (1926–2005). Their radio station, WRNY, began broadcasting experimental television in 1928. In early 1929 the company was forced into bankruptcy and the Gernsback brothers lost control of Experimenter Publishing. The magazines did not miss an issue and were quickly sold to another publisher. The Gernsbacks promptly started new magazines to compete with their former ones.
Company type
Publishing, media
1915
United States
41,348 United States dollar (2021) 
3 (2021)
Radio News became Popular Electronics and the January 1975 issue featured the Altair 8800 computer on the cover; this launched the personal computer revolution. Hugo Gernsback's Amazing Stories is regarded as the first dedicated science fiction magazine and every year World Science Fiction Society gives the Hugo Awards for the best science fiction and fantasy works.
Bankruptcy[edit]
Background[edit]
By 1927 the expenses exceeded the income of the Experimenter Publishing Company. The radio station had a stream of advertising revenue but there was the new transmitter facility in New Jersey plus the investment in television equipment. WRNY was losing around $50,000 a year by 1927. Hugo Gernsback received a salary of $50,000 per year; his brother Sidney received $39,000. As a comparison, the Governor of New York State earned $25,000 a year.[25] In February 1927 the Experimenter Publishing Company leased the entire sixteenth floor of 230 Fifth Avenue to be used as executive offices.[26] In an effort to boost the circulation, Hugo Gernsback announce in the April 1927 Radio News that the radio project blue prints that had been selling for one or two dollars were now free.
The largest expenses for a magazine publisher are paper and printing. The publisher has to print enough copies to supply every outlet. At the end of the month the distributor would return the unsold copies to the publisher for a credit. Experimenter Publishing had four or five monthly magazines so this was a considerable expense. By 1928 the creditors had installed resident accountants at Experimenter Publishing to review the expenditures.
Proceedings[edit]
The largest creditors were the paper supplier, Bulkley Dunton Co. ($154,406), Art Color Printing Co. of Dunellen, N.J. ($152,908) and Edward Langer Printing Co., ($14,614).[27] On February 20, 1929, an involuntary petition in bankruptcy was filed against the Experimenter Publishing Company on behalf of Daniel A. Walters ($2,030), Marie E. Bachmann ($2,094) and Robert Halper ($2,095). The fact that minor creditors forced the bankruptcy has nourished various conspiracy theories over the years. The total liabilities were estimated at $600,000 and assets at $182,000. Federal Judge Mack appointed the Irving Trust Company as the receiver. Hugo Gernsback spoke to the press afterward and said: "Plans are being formulated to reorganize and continue publication as heretofore. I am authorized to say this by the receiver."[28]
The April 1929 issues of Radio News (on the newsstand March 10), Amazing Stores and Science and Invention were the last to feature Hugo Gernsback as editor. The Irving Trust appointed publisher Bergan A. MacKinnon as circulation manager and Arthur Lynch as managing editor. The WRNY stayed on the air and the magazines did not miss an issue. The bankruptcy proceedings were enthusiastically covered in the news and gossip columns of the New York City press.[29]
The creditors of Experimenter Publishing and the Consrad Company reviewed bids at a March 28 hearing before the bankruptcy referee. Two publishers, B. A. MacKinnon and Macfadden Publications, entered similar bids that would almost pay the creditors in full. After these two complete bids were read, Chester Cuthell then offered $60,000 for the radio stations. The MacKinnon offer was revised to allow the separate sale of the stations, Macfadden wanted to keep the stations. Motion Picture Publications offered $50,000 cash for Amazing Stories. Fawcett Publishing offered $30,000 cash for Science and Invention. The Robert McBride Company offered $300,000 for Science and Invention and Amazing Stories. The hearing was adjourned for a week to allow the creditor's committee to evaluate the bids.[30]
At the April 3 hearing, Mr. MacKinnon agreed to pay $200,000 now and $300,000 more in September. Mr. Cuthell acting for the Curtiss Aeroplane and Motor Company would pay the other $100,000 for the radio stations. After administration expenses, the creditors were paid 95 cents on the dollar. The attorneys handling receivership said this was the first time they had seen a forced sale pay off the creditors in full. The Irving Trust Company's decision to keep the magazines and stations running avoided an early sale at a sacrifice price. The first bid for complete company was $100,000. The first offer for the radio stations was only $7,500. Here is a New York Times account of the final bidding.[31]
Hugo and Sidney Gernsback were questioned at an April 19 hearing about the operation of the Experimenter Publishing and the Consrad Company. They were questioned by attorneys for the Irving Trust Company and B. A. MacKinnon "to discover any assets which may have been concealed or diverted."[32] Attorneys for Mr. MacKinnon, questioned the method of the bankrupt companies in allowing hotels space for advertising in the magazines published by the Gernsbacks for trade bills (vouchers) instead of cash. The Gernsbacks explained that the space assigned to the hotels was unsold at the press date and the ads were "fillers". The trade bills were given to wholesalers, advertisers and others with whom they did business.
Hugo Gernsback was also asked about letters soliciting subscribers for his new company, Gernsback Publications, Inc. and if the subscription lists of the bankrupt firm had been used. "Mr. Gernsback emphatically denied that such lists had been used."
"Mr. Gernsback said after the hearing that his new magazines would be Radio Craft, Science Wonder Stories and Air Wonder Stories and that the first issues would be out in June."
The Experimenter Publishing bankruptcy made it to the U.S. Supreme Court in 1933.[33] The state of New York missed the deadline for filing claims but still wanted the back taxes the Experimenter Publishing owed. The court ruled that the Constitution gave control of bankruptcy to the federal government and the states would have to follow the rules and procedures like any other creditor.
After the bankruptcy[edit]
Gernsback Publications[edit]
Gernsback was quickly able to raise capital for a new publishing company. The June issue of Science Wonder Stories was on the newsstand on May 3, 1929. This was one of two magazines Gernsback created to compete with Amazing Stories; his Air Wonder Stories appeared six weeks later.[34] They were merged into Wonder Stories after a year. The July issues of Radio Craft appeared on the newsstand on June 5, 1929, three months after Gernsback lost Radio News.[35] There was a new Everyday Science and Mechanics to compete with Science and Invention.
Hugo Gernsback often published articles about the history of his magazines, but the bankruptcy was always ignored. The April 1958 Radio-Electronics (formerly Radio Craft) has a 16-page story on Gernsback's 50 year publishing history. Here is the complete description of the bankruptcy: "In the spring of 1929, Radio News, Science and Invention, Amazing Stories and associated magazines were sold to other interest. Radio News of April, 1929, was the last Gernsback issue."[36]
The eve of the Great Depression was not an ideal time to start new magazines but Gernsback persevered. Radio Craft and successor titles were in print until January 2003. Gernsback decided to focus on radio magazines and added Short Wave Craft in June 1930 and Television News in 1931. Wonder Stories was sold to Thrilling Publications in 1936 and it was in print until 1955. Science and Mechanics was sold to Virgil Angerman in 1937 and it was in print until the 1970s (as late as May 1974).
Experimenter Publications[edit]
B. A. MacKinnon immediately renamed the company to Experimenter Publications and then to Radio-Science Publications in November 1930. MacKinnon's plan was to pay off the debt of acquiring the magazine with the revenue from the magazines. The Depression drove many advertisers out of business and made magazines a luxury for many readers. Radio-Science Publications ceased operations with the August 1931 issues. Bernarr Macfadden's newly formed Teck Publishing Corporation took over with the September 1931 issue.[37] Radio News and Amazing Stories were continued but Science and Invention was sold and absorbed into Popular Mechanics magazine.[38]
Radio News and Amazing Stories were in poor financial health when Ziff-Davis acquired them in January 1938.[39] They were listed as publisher in the March issues but the April issues were the first produced under their control. Radio News was published by Ziff-Davis under several titles until 1985. They published Amazing Stories until 1965 when it was sold to Ultimate Publishing.
WRNY[edit]
Immediately after the bankruptcy auction, the Aviation Radio Station, Inc. was formed to take over the WRNY radio stations. C. M. Keys, president of the Curtiss Aeroplane and Motor Company, provided the financial backing for the new company. Chester Cuthell, the attorney who was at the auction, was the president and Walter Lemmon was the general manager. The goal of the station was to promote aviation.[40] The Federal Radio Commission had to approve station license transfer and any changes to the station. Mr. Cuthell asked the commission for more frequencies as he said that he and his partners had up to $2,000,000 dollars to spend on the stations. The commission approved the license transfers and improvements to the existing stations.
In August 1929 Aviation Radio moved the studios from the Roosevelt Hotel to 27 West Fifty-Seventh Street. They also installed a new 1000 watt transmitter with automatic frequency control and new speech amplifiers at their plant in Coytesville NJ. These upgrades improved the range and sound quality of their broadcast.[41] The short wave station, 2XLA, increased is power to 15,000 watts.The radio stations format was changed; the Jazz music was prohibited and replaced with presentations devoted to aviation and aviators. On a show about women aviators, Amelia Earhart recounted her recent transcontinental flight. The station gave hourly weather reports of aviators.
After 1928 WRNY was at 1010 kilocycles (kHz) and shared the frequency with 3 other stations. This is a typical broadcast schedule: WRNY started at 10:00 AM, WHN followed at 1:30 PM, WPAP followed at 7:00 PM, and finally WRNY closed out the broadcast day from 9:30 PM to midnight.[42] WQAO, own by the Calvary Baptist Church, broadcast three programs on Sunday and one on Wednesday. The owner of WHN, Metro-Goldwyn-Mayer, bought the other stations in 1933 and WHN used 1010 kHz full-time starting in January 1934 .[43] The stations call letters were later changed to WMGM;[44] the station is today's WFAN, while WEPN replaced it on the frequency.